MONTRÉAL, Nov. 3, 2016 /CNW
Telbec/ - Quebecor Inc. ("Quebecor" or the "Corporation") today
reported its consolidated financial results for the third quarter
of 2016. Quebecor consolidates the financial results of its
Quebecor Media Inc. ("Quebecor Media") subsidiary, in which it
holds an 81.1% interest.
Highlights
Third quarter 2016
- Revenues: $998.3 million, up
$23.8 million (2.4%).
- Adjusted operating income1 $389.8 million, down $1.6
million (‑0.4%), including a $10.7
million unfavourable variance in the consolidated
stock‑based compensation charge.
- Net loss attributable to shareholders: $8.3 million ($0.07
per basic share) in the third quarter of 2016, compared with net
income attributable to shareholders of $85.1
million ($0.69 per basic
share) in the same period of 2015, a decrease of $93.4 million ($0.76 per basic share), including the
$119.6 million unfavourable impact of
losses and gains on embedded derivatives related to convertible
debentures.
- Adjusted income from continuing operating
activities2 $83.2 million
($0.68 per basic share) in the third
quarter of 2016, compared with $74.0
million ($0.60 per basic
share) in the same period of 2015, an increase of $9.2 million ($0.08
per basic share) or 12.4%.
- The Telecommunications segment grew its revenues by
$39.5 million (5.2%) and its adjusted
operating income by $12.5 million
(3.6%) in the third quarter of 2016.
- Videotron Ltd. ("Videotron") significantly increased its
revenues from mobile telephony ($27.6
million or 25.9%), Internet access ($14.3 million or 6.2%), business solutions
($10.6 million or 59.6%) and the Club
illico over‑the‑top video service ("Club illico") ($1.9 million or 32.2%).
- Videotron's average monthly revenue per user3
("ARPU") was up $9.64 (7.0%) from
$136.94 in the third quarter of 2015
to $146.58 in the third quarter of
2016.
- Net increase of 54,700 revenue‑generating units4
(1.0%) in the third quarter of 2016, including 38,800 connections
to the mobile telephony service, 24,400 subscriptions to the cable
Internet access service and 12,200 memberships in Club illico.
______________________________
1
|
See "Adjusted
operating income" under "Definitions."
|
2
|
See "Adjusted income
from continuing operating activities" under
"Definitions."
|
3
|
See "Key performance
indicator."
|
4
|
The sum of
subscriptions to the cable television, cable Internet access and
Club illico services, plus subscriber connections to the cable and
mobile telephony services.
|
"Quebecor's revenues were up $23.8 million (2.4%) in the third quarter of
2016, reflecting a strong performance by its Telecommunications
segment, which grew its revenues by 5.2%," commented
Pierre Dion, President and Chief Executive Officer of
Quebecor. "Once again, Videotron's rising numbers were driven by
products and services with strong growth prospects. Consumer
response to Videotron's offerings continues to be very positive.
For example, its mobile telephony service posted a net increase of
38,800 subscriber connections, bringing the total to 867,700
as of September 30, 2016. Videotron now ranks among the
mobility leaders in Québec. Videotron's cable Internet service
added 24,400 customers during the quarter. In Quebecor's
consolidated results, the $9.2 million (12.4%) increase
in adjusted income from continuing operating activities is
noteworthy."
"During the 12‑month period ended September 30, 2016, our mobile telephony service
added 125,200 subscriber connections, a 16.9% increase," noted
Manon Brouillette, President and
Chief Executive Officer of Videotron. "Those gains were accompanied
by a significant increase in the mobile service's ARPU, which was
$52.61 in the third quarter of 2016,
a 7.2% year‑over‑year increase. Development of our Internet access
and business solutions services continued to make a positive
contribution to our results. In this regard, on
July 13, 2016, we launched our Giga Fibre Hybrid service,
which delivers speeds of up to 940 Mbps to residential and
business customers and maintains our leadership in very high speed
Internet access. On September 13, 2016, we also opened
the 4Degrees Colocation Inc. data centre in Montréal,
which is equipped with one of the largest server rooms in Québec
and is purpose‑designed to meet our business customers' hosting
needs.
"On September 20, 2016, Videotron
announced a partnership with Ericsson Canada Inc., École de
technologie supérieure and Quartier de l'innovation de Montréal to
create the first open‑air smart living laboratory in Canada. It will serve to test all aspects of
new, fifth‑generation telecommunications technologies. We are very
proud that we were able to bring these eminent partners together in
the common purpose of building an innovation ecosystem in Montréal.
For Videotron, this lab will be an additional tool for identifying
applications and services that can make life easier for consumers
and create value for businesses," concluded Manon Brouillette.
"In a changing industry environment, Quebecor's Media segment
announced on November 2, 2016 an
organizational transformation designed to balance its cost
structure and enhance operational efficiencies, which will enable
it to maintain its lead in news and content production and continue
promoting its flagship brands," said Julie
Tremblay, President and Chief Executive Officer of Quebecor
Media Group. "Those initiatives will entail the elimination of 220
positions, or nearly 8% of our workforce.
"The industry has been disrupted in Québec as in the rest of the
world, and we have therefore made a number of transformational
moves in order to adapt to the changes. The downtrend in
advertising revenues impacted the Media segment's operating profits
again in the third quarter of 2016. However, our broadcasting
business was boosted by an increase in the advertising revenues of
the TVA Sports specialty service, mainly because of coverage
of the 2016 World Cup of Hockey tournament.
"In keeping with its commitment to innovation, on October 24, 2016 the Media segment launched the
new TVA.CA website and the TVA mobile app, which give
users free access to TVA programs in high definition, live or on
demand," added Julie Tremblay. "The
initiatives were part of TVA Group's strategy to expand its
presence in new media and webcasting in order to meet consumers'
needs and offer advertisers a new vehicle."
In the Sports and Entertainment segment, the Videotron Centre
marked its first anniversary on September 12, 2016.
During its first year of operation, the facility hosted 93 sporting
events and concerts, as well as 30 corporate events. In all, more
than 1.1 million people passed through the
turnstiles.
"In the first nine months of 2016, Quebecor continued
implementation of its business plan, focused on areas with strong
growth potential. The Corporation remains well positioned to
achieve its profitability, business development and shareholder
value‑maximization objectives," Pierre
Dion concluded.
Table 1
Quebecor third quarter financial highlights, 2012 to
2016 (in millions of Canadian dollars, except per share
data)
|
|
2016
|
2015
|
2014
|
2013
|
2012
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
998.3
|
$
|
974.5
|
$
|
890.9
|
$
|
886.4
|
$
|
850.0
|
Adjusted operating
income
|
|
389.8
|
|
391.4
|
|
361.8
|
|
364.2
|
|
337.2
|
(Loss) income from
continuing operating activities
attributable
to shareholders
|
|
(8.3)
|
|
87.0
|
|
9.8
|
|
12.9
|
|
124.1
|
Net (loss) income
attributable to shareholders
|
|
(8.3)
|
|
85.1
|
|
45.1
|
|
(188.8)
|
|
17.1
|
Adjusted income from
continuing operating activities
|
|
83.2
|
|
74.0
|
|
58.1
|
|
58.8
|
|
51.7
|
Per basic
share:
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operating activities attributable to shareholders
|
|
(0.07)
|
|
0.71
|
|
0.08
|
|
0.10
|
|
0.98
|
|
Net (loss) income
attributable to shareholders
|
|
(0.07)
|
|
0.69
|
|
0.37
|
|
(1.53)
|
|
0.14
|
|
Adjusted income from
continuing operating activities
|
|
0.68
|
|
0.60
|
|
0.47
|
|
0.47
|
|
0.41
|
New segment structure
During the fourth quarter of 2015, the Corporation changed its
organizational structure and transferred its music distribution and
production operations from the Sports and Entertainment segment to
the Media segment. Accordingly, prior‑period figures in the
Corporation's segmented reporting have been reclassified to reflect
those changes.
2016/2015 third quarter comparison
Revenues: $998.3 million, a
$23.8 million (2.4%) increase.
- Revenues increased in Telecommunications ($39.5 million or 5.2% of segment revenues) and in
Sports and Entertainment ($1.6
million or 25.8%).
- Revenues decreased in Media ($17.3
million or ‑7.2%).
Adjusted operating income: $389.8
million, a $1.6 million
(‑0.4%) decrease.
- Adjusted operating income decreased in Media ($8.4 million or ‑19.6% of segment adjusted
operating income). There was an unfavourable variance at Head
Office ($9.2 million), essentially
due to an unfavourable variance in the stock‑based compensation
charge.
- Adjusted operating income increased in Telecommunications
($12.5 million or 3.6%). There was a
favourable variance in Sports and Entertainment ($3.5 million).
- The change in the fair value of Quebecor Media stock options
resulted in a $1.9 million
unfavourable variance in the stock‑based compensation charge in the
third quarter of 2016 compared with the same period of 2015. The
change in the fair value of Quebecor stock options and of Quebecor
stock‑price‑based share units resulted in an $8.8 million unfavourable variance in the
Corporation's stock‑based compensation charge in the third quarter
of 2016.
Net loss attributable to shareholders: $8.3 million ($0.07
per basic share) in the third quarter of 2016, compared with net
income attributable to shareholders in the amount of $85.1 million ($0.69 per basic share) in the same period of
2015, an unfavourable variance of $93.4
million ($0.76 per basic
share).
- The unfavourable variance was mainly due to:
- $136.2 million unfavourable
variance in the charge for restructuring of operations, gain on
litigation and other items;
- $122.1 million unfavourable
variance in losses and gains on valuation and translation of
financial instruments, including $119.6
million without any tax consequences.
Partially offset by:
- $156.1 million decrease in
non‑cash charge for impairment of goodwill and other assets,
including $45.0 million without any
tax consequences;
- $6.3 million decrease in the
depreciation and amortization charge.
In the third quarter of 2016, Quebecor Media performed
impairment tests on its Magazines cash‑generating unit ("CGU") in
view of the downtrend in the industry's advertising revenues.
Quebecor Media concluded that the recoverable amount of its
Magazines CGU was less than its carrying amount. Accordingly, a
$40.1 million non‑cash goodwill
impairment charge (without any tax consequences) was recorded in
the third quarter of 2016. As well, a charge for impairment of
intangible assets totalling $0.8
million was recorded in the Media segment in the third
quarter of 2016.
Adjusted income from continuing operating activities:
$83.2 million ($0.68 per basic share) in the third quarter of
2016, compared with $74.0 million
($0.60 per basic share) in the same
period of 2015, an increase of $9.2
million ($0.08 per basic
share).
2016/2015 year‑to‑date comparison
Revenues: $2.97 billion, a
$98.9 million (3.4%) increase.
- Revenues increased in Telecommunications ($116.7 million or 5.2% of segment revenues) and
in Sports and Entertainment ($11.7
million or 89.3%).
- Revenues decreased in Media ($33.7
million or ‑4.8%).
Adjusted operating income: $1.10
billion, a $24.9 million
(2.3%) increase.
- Adjusted operating income increased in Telecommunications
($48.0 million or 4.6% of segment
adjusted operating income). There was a favourable variance in
Sports and Entertainment ($2.4
million or 27.9%).
- Adjusted operating income decreased in Media ($9.2 million or ‑19.2%). There was an
unfavourable variance at Head Office ($16.3
million), essentially due to an unfavourable variance in the
stock‑based compensation charge.
- The change in the fair value of Quebecor Media stock options
resulted in a $2.7 million
unfavourable variance in the stock‑based compensation charge in the
first nine months of 2016 compared with the same period of 2015.
The change in the fair value of Quebecor stock options and Quebecor
stock‑price‑based share units resulted in a $16.6 million unfavourable variance in the
Corporation's stock‑based compensation charge in the first nine
months of 2016.
Net income attributable to shareholders: $71.4 million ($0.58 per basic share) in the first nine months
of 2016, compared with $186.6 million
($1.52 per basic share) in the same
period of 2015, a decrease of $115.2
million ($0.94 per basic
share).
- The unfavourable variance was mainly due to:
- $212.7 million unfavourable
variance in losses and gains on valuation and translation of
financial instruments, including $209.5
million without any tax consequences;
- $139.6 million unfavourable
variance in the charge for restructuring of operations, gain on
litigation and other items;
- $23.9 million unfavourable
variance in the income tax expense.
Partially offset by:
- $186.1 million decrease in
non‑cash charge for impairment of goodwill and other assets,
including $75.0 million without any
tax consequences;
- $31.4 million decrease in the
depreciation and amortization charge;
- $24.9 million increase in
adjusted operating income;
- $18.8 million favourable variance
in the loss related to discontinued operations;
- $18.0 million favourable variance
in non‑controlling interest;
- $12.1 million favourable variance
due to recognition of a loss on debt refinancing in the second
quarter of 2015;
- $5.7 million decrease in
financial expenses.
Adjusted income from continuing operating activities:
$220.8 million in the first nine
months of 2016 ($1.80 per basic
share), compared with $181.9 million
($1.48 per basic share) in the same
period of 2015, an increase of $38.9
million ($0.32 per basic
share).
Dividend
On November 2, 2016, the Board of
Directors of Quebecor declared a quarterly dividend of $0.045 per share on its Class A Multiple Voting
Shares ("Class A Shares") and Class B Subordinate Voting Shares
("Class B Shares"), payable on December 13,
2016 to shareholders of record at the close of business on
November 18, 2016. This dividend is
designated an eligible dividend, as provided under subsection
89(14) of the Canadian Income Tax Act and its provincial
counterpart.
Normal course issuer bid
On August 3, 2016, the Board of
Directors of Quebecor authorized the renewal of its normal course
issuer bid for a maximum of 500,000 Class A Shares, representing
approximately 1.3% of issued and outstanding Class A Shares, and
for a maximum of 2,000,000 Class B Shares, representing
approximately 2.4% of issued and outstanding Class B Shares as of
August 3, 2016. The purchases can be
made from August 15, 2016 to
August 14, 2017 at prevailing market
prices on the open market through the facilities of the Toronto
Stock Exchange or other alternative trading systems. All shares
purchased under the bid will be cancelled.
In the first nine months of 2016, the Corporation purchased and
cancelled 233,200 Class B Shares for a total cash consideration of
$8.6 million (368,300 Class B Shares
for a total cash consideration of $11.1
million in the first nine months of 2015). The excess of
$7.8 million in the purchase price
over the carrying value of Class B Shares repurchased was recorded
as a reduction in retained earnings ($9.7
million in the first nine months of 2015).
Detailed financial information
For a detailed analysis of Quebecor's third quarter 2016
results, please refer to the Management Discussion and Analysis and
consolidated financial statements of Quebecor, available on the
Corporation's website at
www.quebecor.com/en/quarterly_doc_quebecor_inc or from the SEDAR
filing service at www.sedar.com.
Conference call for investors and webcast
Quebecor will hold a conference call to discuss its third
quarter 2016 results on November 3,
2016, at 9:30 a.m. EDT. There
will be a question period reserved for financial analysts. To
access the conference call, please dial 1 877 293‑8052, access code
for participants 72925#. A tape recording of the call will be
available from November 3, 2016 to
February 4, 2017 by dialling 1 877
293‑8133, conference number 1205991, access code for participants
72925#. The conference call will also be broadcast live on
Quebecor's website at www.quebecor.com/en/content/conference‑call.
It is advisable to ensure the appropriate software is installed
before accessing the call. Instructions and links to free player
downloads are available at the Internet address shown above.
Cautionary statement regarding forward‑looking
statements
The statements in this press release that are not historical
facts are forward‑looking statements and are subject to significant
known and unknown risks, uncertainties and assumptions that could
cause the Corporation's actual results for future periods to differ
materially from those set forth in the forward‑looking statements.
Forward‑looking statements may be identified by the use of the
conditional or by forward‑looking terminology such as the terms
"plans," "expects," "may," "anticipates," "intends," "estimates,"
"projects," "seeks," "believes," or similar terms, variations of
such terms or the negative of such terms. Certain factors that may
cause actual results to differ from current expectations include
seasonality (including seasonal fluctuations in customer orders),
operating risk (including fluctuations in demand for Quebecor's
products and pricing actions by competitors), new competition and
Quebecor's ability to retain its current customers and attract new
ones, risks related to fragmentation of the advertising market,
insurance risk, risks associated with capital investments
(including risks related to technological development and equipment
availability and breakdown), environmental risks, risks associated
with cybersecurity and the protection of personal information,
risks associated with labour agreements, credit risk, financial
risks, debt risks, risks related to interest rate fluctuations,
foreign exchange risks, risks associated with government acts and
regulations, risks related to changes in tax legislation, and
changes in the general political and economic environment.
Investors and others are cautioned that the foregoing list of
factors that may affect future results is not exhaustive and that
undue reliance should not be placed on any forward‑looking
statements. For more information on the risks, uncertainties and
assumptions that could cause Quebecor's actual results to differ
from current expectations, please refer to Quebecor's public
filings available at www.sedar.com and www.quebecor.com including,
in particular, the "Risks and Uncertainties" section of Quebecor's
Management Discussion and Analysis for the year ended December 31, 2015.
The forward‑looking statements in this press release reflect
Quebecor's expectations as of November 3,
2016 and are subject to change after that date. Quebecor
expressly disclaims any obligation or intention to update or revise
any forward‑looking statements, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws.
About Quebecor
Quebecor, a Canadian leader in telecommunications,
entertainment, news media and culture, is one of the
best‑performing integrated communications companies in the
industry. Driven by their determination to deliver the best
possible customer experience, all of Quebecor's subsidiaries and
brands are differentiated by their high‑quality, multiplatform,
convergent products and services.
Quebecor (TSX: QBR.A, QBR.B) is headquartered in Québec. It
holds an 81.07% interest in Quebecor Media, which employs close to
11,000 people in Canada.
A family business founded in 1950, Quebecor is strongly
committed to the community. Every year, it actively supports people
working with more than 400 organizations in the vital fields of
culture, health, education, the environment, and
entrepreneurship.
Visit our website: www.quebecor.com
Follow us on Twitter: www.twitter.com/Quebecor
DEFINITIONS
Adjusted operating income
In its analysis of operating results, the Corporation defines
adjusted operating income, as reconciled to net (loss) income under
International Financial Reporting Standards ("IFRS"), as net (loss)
income before depreciation and amortization, financial expenses,
(loss) gain on valuation and translation of financial instruments,
charge for restructuring of operations, gain on litigation and
other items, charge for impairment of goodwill and other assets,
loss on debt refinancing, income taxes, and loss from discontinued
operations. Adjusted operating income as defined above is not a
measure of results that is consistent with IFRS. It is not intended
to be regarded as an alternative to other financial operating
performance measures or to the statement of cash flows as a measure
of liquidity. It should not be considered in isolation or as a
substitute for measures of performance prepared in accordance
with IFRS. The Corporation uses adjusted operating income in
order to assess the performance of its investment in Quebecor
Media. The Corporation's management and Board of Directors use this
measure in evaluating its consolidated results as well as the
results of the Corporation's operating segments. This measure
eliminates the significant level of impairment and
depreciation/amortization of tangible and intangible assets and is
unaffected by the capital structure or investment activities of the
Corporation and its business segments.
Adjusted operating income is also relevant because it is a
significant component of the Corporation's annual incentive
compensation programs. A limitation of this measure, however, is
that it does not reflect the periodic costs of tangible and
intangible assets used in generating revenues in the Corporation's
segments. The Corporation also uses other measures that do reflect
such costs, such as cash flows from segment operations and free
cash flows from continuing operating activities of the Quebecor
Media subsidiary. The Corporation's definition of adjusted
operating income may not be the same as similarly titled measures
reported by other companies.
Table 2 below provides a reconciliation of adjusted operating
income to net (loss) income as disclosed in Quebecor's condensed
consolidated financial statements.
Table 2
Reconciliation of the adjusted operating income measure used in
this press release to the net (loss) income measure used in the
consolidated financial statements
(in millions of Canadian dollars)
|
|
Three months
ended
September 30
|
Nine months ended
September 30
|
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss):
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
363.6
|
$
|
351.1
|
$
|
1,084.8
|
$
|
1,036.8
|
|
Media
|
|
34.5
|
|
42.9
|
|
38.7
|
|
47.9
|
|
Sports and
Entertainment
|
|
(1.3)
|
|
(4.8)
|
|
(6.2)
|
|
(8.6)
|
|
Head
Office
|
|
(7.0)
|
|
2.2
|
|
(12.5)
|
|
3.8
|
|
|
389.8
|
|
391.4
|
|
1,104.8
|
|
1,079.9
|
Depreciation and
amortization
|
|
(162.3)
|
|
(168.6)
|
|
(485.7)
|
|
(517.1)
|
Financial
expenses
|
|
(82.7)
|
|
(80.7)
|
|
(243.6)
|
|
(249.3)
|
(Loss) gain on
valuation and translation of financial instruments
|
|
(68.3)
|
|
53.8
|
|
(118.1)
|
|
94.6
|
Restructuring of
operations, gain on litigation and other items
|
|
(1.2)
|
|
135.0
|
|
(14.7)
|
|
124.9
|
Impairment of
goodwill and other assets
|
|
(40.9)
|
|
(197.0)
|
|
(40.9)
|
|
(227.0)
|
Loss on debt
refinancing
|
|
−
|
|
−
|
|
−
|
|
(12.1)
|
Income
taxes
|
|
(37.4)
|
|
(45.1)
|
|
(96.4)
|
|
(72.5)
|
Loss from
discontinued operations
|
|
−
|
|
(2.7)
|
|
−
|
|
(18.8)
|
Net (loss)
income
|
$
|
(3.0)
|
$
|
86.1
|
$
|
105.4
|
$
|
202.6
|
Adjusted income from continuing operating activities
The Corporation defines adjusted income from continuing
operating activities, as reconciled to net (loss) income
attributable to shareholders under IFRS, as net (loss) income
attributable to shareholders before (loss) gain on valuation and
translation of financial instruments, charge for restructuring of
operations, gain on litigation and other items, charge for
impairment of goodwill and other assets, loss on debt refinancing,
net of income tax related to adjustments and of net income
attributable to non‑controlling interest related to adjustments,
and before the loss from discontinued operations attributable to
shareholders. Adjusted income from continuing operating activities,
as defined above, is not a measure of results that is consistent
with IFRS. It should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. The Corporation uses adjusted income from continuing
operating activities to analyze trends in the performance of its
businesses. The above‑listed items are excluded from the
calculation of this measure because they impair the comparability
of the financial results. Adjusted income from continuing operating
activities is more representative for the purpose of forecasting
income. The Corporation's definition of adjusted income from
continuing operating activities may not be identical to similarly
titled measures reported by other companies.
Table 3 provides a reconciliation of adjusted income from
continuing operating activities to the net (loss) income
attributable to shareholders measure used in Quebecor's condensed
consolidated financial statements.
Table
3 Reconciliation of the adjusted income from continuing
operating activities measure used in this press release to the net
(loss) income attributable to shareholders measure used in the
condensed consolidated financial statements (in millions of
Canadian dollars)
|
|
Three months
ended
September 30
|
Nine months ended
September 30
|
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
|
|
|
|
Adjusted income from
continuing operating activities
|
$
|
83.2
|
$
|
74.0
|
$
|
220.8
|
$
|
181.9
|
(Loss) gain on
valuation and translation of financial instruments
|
|
(68.3)
|
|
53.8
|
|
(118.1)
|
|
94.6
|
Restructuring of
operations, gain on litigation and
other items
|
|
(1.2)
|
|
135.0
|
|
(14.7)
|
|
124.9
|
Impairment of
goodwill and other assets
|
|
(40.9)
|
|
(197.0)
|
|
(40.9)
|
|
(227.0)
|
Loss on debt
refinancing
|
|
−
|
|
−
|
|
−
|
|
(12.1)
|
Income taxes related
to adjustments1
|
|
0.5
|
|
(5.1)
|
|
3.7
|
|
(1.2)
|
Net income
attributable to non‑controlling interest related to adjustments
|
|
18.4
|
|
26.3
|
|
20.6
|
|
38.6
|
Discontinued
operations
|
|
−
|
|
(1.9)
|
|
−
|
|
(13.1)
|
Net (loss) income
attributable to shareholders
|
$
|
(8.3)
|
$
|
85.1
|
$
|
71.4
|
$
|
186.6
|
|
|
1
|
Includes impact of
fluctuations in income tax applicable to adjusted items, either for
statutory reasons or in connection with tax
transactions.
|
KEY PERFORMANCE INDICATOR
The Corporation uses ARPU, an industry metric, as a key
performance indicator. This indicator is used to measure monthly
revenues per average basic customer from its cable television,
Internet access, cable and mobile telephony services and Club
illico. ARPU is not a measurement that is consistent with IFRS
and the Corporation's definition and calculation of ARPU may not be
the same as identically titled measurements reported by other
companies. The Corporation calculates ARPU by dividing the combined
revenues from its cable television, Internet access, cable and
mobile telephony services and Club illico by the average number of
basic customers during the applicable period, and then dividing the
resulting amount by the number of months in the applicable
period.
QUEBECOR INC. AND
ITS SUBSIDIARIES
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars, except for earnings per share
data)
|
Three months
ended
|
|
Nine months
ended
|
(unaudited)
|
September
30
|
|
September
30
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
998.3
|
$
|
974.5
|
|
$
|
2,966.2
|
$
|
2,867.3
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
169.8
|
|
160.7
|
|
|
536.2
|
|
518.6
|
Purchase of goods and
services
|
|
438.7
|
|
422.4
|
|
|
1,325.2
|
|
1,268.8
|
Depreciation and
amortization
|
|
162.3
|
|
168.6
|
|
|
485.7
|
|
517.1
|
Financial
expenses
|
|
82.7
|
|
80.7
|
|
|
243.6
|
|
249.3
|
Loss (gain) on
valuation and translation of financial instruments
|
|
68.3
|
|
(53.8)
|
|
|
118.1
|
|
(94.6)
|
Restructuring of
operations, gain on litigation and other items
|
|
1.2
|
|
(135.0)
|
|
|
14.7
|
|
(124.9)
|
Impairment of
goodwill and other assets
|
|
40.9
|
|
197.0
|
|
|
40.9
|
|
227.0
|
Loss on debt
refinancing
|
|
-
|
|
-
|
|
|
-
|
|
12.1
|
Income before
income taxes
|
|
34.4
|
|
133.9
|
|
|
201.8
|
|
293.9
|
|
|
|
|
|
|
|
|
|
|
Income taxes
(recovery):
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
51.2
|
|
31.0
|
|
|
130.5
|
|
54.7
|
|
Deferred
|
|
(13.8)
|
|
14.1
|
|
|
(34.1)
|
|
17.8
|
|
|
37.4
|
|
45.1
|
|
|
96.4
|
|
72.5
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
|
(3.0)
|
|
88.8
|
|
|
105.4
|
|
221.4
|
Loss from
discontinued operations
|
|
-
|
|
(2.7)
|
|
|
-
|
|
(18.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(3.0)
|
$
|
86.1
|
|
$
|
105.4
|
$
|
202.6
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
(8.3)
|
$
|
87.0
|
|
$
|
71.4
|
$
|
199.7
|
|
Non-controlling
interests
|
|
5.3
|
|
1.8
|
|
|
34.0
|
|
21.7
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
(8.3)
|
$
|
85.1
|
|
$
|
71.4
|
$
|
186.6
|
|
Non-controlling
interests
|
|
5.3
|
|
1.0
|
|
|
34.0
|
|
16.0
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to shareholders
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations
|
$
|
(0.07)
|
$
|
0.71
|
|
$
|
0.58
|
$
|
1.63
|
|
|
From discontinued
operations
|
|
-
|
|
(0.02)
|
|
|
-
|
|
(0.11)
|
|
|
Net (loss)
income
|
|
(0.07)
|
|
0.69
|
|
|
0.58
|
|
1.52
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations
|
|
(0.07)
|
|
0.27
|
|
|
0.58
|
|
0.83
|
|
|
From discontinued
operations
|
|
-
|
|
(0.01)
|
|
|
-
|
|
(0.10)
|
|
|
Net (loss)
income
|
|
(0.07)
|
|
0.26
|
|
|
0.58
|
|
0.73
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (in millions)
|
|
122.3
|
|
122.7
|
|
|
122.4
|
|
122.8
|
Weighted average
number of diluted shares (in millions)
|
|
122.3
|
|
143.7
|
|
|
122.8
|
|
143.8
|
QUEBECOR INC. AND
ITS SUBSIDIARIES
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
Three months
ended
|
|
Nine months
ended
|
(unaudited)
|
September
30
|
|
September
30
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
$
|
(3.0)
|
$
|
88.8
|
|
$
|
105.4
|
$
|
221.4
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
loss (income) from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be
reclassified to income:
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow
hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) gain on
valuation of derivative financial instruments
|
|
(20.7)
|
|
70,2
|
|
|
25.5
|
|
45.3
|
|
|
|
Deferred income
taxes
|
|
(1.6)
|
|
(20.2)
|
|
|
17.6
|
|
(34.3)
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not
be reclassified to income:
|
|
|
|
|
|
|
|
|
|
|
|
Defined benefit
plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Re-measurement gain
(loss)
|
|
18.0
|
|
-
|
|
|
(121.0)
|
|
-
|
|
|
|
Deferred income
taxes
|
|
(4.8)
|
|
-
|
|
|
32.3
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Reclassification to
income:
|
|
|
|
|
|
|
|
|
|
|
|
Gain related to cash
flow hedges
|
|
-
|
|
-
|
|
|
-
|
|
(3.9)
|
|
|
Deferred income
taxes
|
|
-
|
|
-
|
|
|
-
|
|
(0.4)
|
|
|
(9.1)
|
|
50.0
|
|
|
(45.6)
|
|
6.7
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
(loss) income from continuing operations
|
|
(12.1)
|
|
138.8
|
|
|
59.8
|
|
228.1
|
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations
|
|
-
|
|
(2.7)
|
|
|
-
|
|
(18.8)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
(loss) income
|
$
|
(12.1)
|
$
|
136.1
|
|
$
|
59.8
|
$
|
209.3
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
(loss) income from continuing operations attributable
to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
(16.7)
|
$
|
127.5
|
|
$
|
38.1
|
$
|
207.7
|
|
Non-controlling
interests
|
|
4.6
|
|
11.3
|
|
|
21.7
|
|
20.4
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
(loss) income attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
(16.7)
|
$
|
125.6
|
|
$
|
38.1
|
$
|
194.6
|
|
Non-controlling
interests
|
|
4.6
|
|
10.5
|
|
|
21.7
|
|
14.7
|
QUEBECOR INC. AND
ITS SUBSIDIARIES
|
SEGMENTED
INFORMATION
|
(in millions of
Canadian dollars)
|
(unaudited)
|
|
|
|
|
Three months ended
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
Media
|
|
Sports and
Entertainment |
|
Head office
and Intersegments |
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
793.7
|
$
|
221.7
|
$
|
7.8
|
$
|
(24.9)
|
$
|
998.3
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
88.6
|
|
60.6
|
|
2.4
|
|
18.2
|
|
169.8
|
Purchase of goods and
services
|
|
341.5
|
|
126.6
|
|
6.7
|
|
(36.1)
|
|
438.7
|
Adjusted operating
income1
|
|
363.6
|
|
34.5
|
|
(1.3)
|
|
(7.0)
|
|
389.8
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
162.3
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
82.7
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
68.3
|
Restructuring of
operations and other items
|
|
|
|
|
|
|
|
|
|
1.2
|
Impairment of
goodwill and other assets
|
|
|
|
|
|
|
|
|
|
40.9
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
$
|
34.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
152.0
|
$
|
10.1
|
$
|
0.7
|
$
|
1.0
|
$
|
163.8
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
28.7
|
|
2.4
|
|
0.8
|
|
0.5
|
|
32.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
Media
|
|
Sports and
Entertainment |
|
Head office
and Intersegments |
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
754.2
|
$
|
239.0
|
$
|
6.2
|
$
|
(24.9)
|
$
|
974.5
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
83.7
|
|
65.9
|
|
2.7
|
|
8.4
|
|
160.7
|
Purchase of goods and
services
|
|
319.4
|
|
130.2
|
|
8.3
|
|
(35.5)
|
|
422.4
|
Adjusted operating
income1
|
|
351.1
|
|
42.9
|
|
(4.8)
|
|
2.2
|
|
391.4
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
168.6
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
80.7
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
(53.8)
|
Restructuring of
operations, gain on litigation and
other
items
|
|
|
|
|
|
|
|
|
|
(135.0)
|
Impairment of
goodwill and other assets
|
|
|
|
|
|
|
|
|
|
197.0
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
$
|
133.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
177.8
|
$
|
9.1
|
$
|
4.0
|
$
|
0.2
|
$
|
191.1
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
22.7
|
|
2.4
|
|
34.3
|
|
1.2
|
|
60.6
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
Media
|
|
Sports and
Entertainment |
|
Head office
and
Intersegments |
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
2,346.6
|
$
|
672.0
|
$
|
24.8
|
$
|
(77.2)
|
$
|
2,966.2
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
283.7
|
|
198.6
|
|
8.1
|
|
45.8
|
|
536.2
|
Purchase of goods and
services
|
|
978.1
|
|
434.7
|
|
22.9
|
|
(110.5)
|
|
1,325.2
|
Adjusted operating
income1
|
|
1,084.8
|
|
38.7
|
|
(6.2)
|
|
(12.5)
|
|
1,104.8
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
485.7
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
243.6
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
118.1
|
Restructuring of
operations and other items
|
|
|
|
|
|
|
|
|
|
14.7
|
Impairment of
goodwill and other assets
|
|
|
|
|
|
|
|
|
|
40.9
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
$
|
201.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
507.9
|
$
|
28.9
|
$
|
1.9
|
$
|
2.6
|
$
|
541.3
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
93.3
|
|
7.6
|
|
1.1
|
|
2.2
|
|
104.2
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
Media
|
|
Sports and
Entertainment |
Head office
and
Intersegments |
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
2,229.9
|
$
|
705.7
|
$
|
13.1
|
$
|
(81.4)
|
$
|
2,867.3
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
267.2
|
|
218.4
|
|
7.1
|
|
25.9
|
|
518.6
|
Purchase of goods and
services
|
|
925.9
|
|
439.4
|
|
14.6
|
|
(111.1)
|
|
1,268.8
|
Adjusted operating
income1
|
|
1,036.8
|
|
47.9
|
|
(8.6)
|
|
3.8
|
|
1,079.9
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
517.1
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
249.3
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
(94.6)
|
Restructuring of
operations, gain on litigation and other
items
|
|
|
|
|
|
|
|
|
|
(124.9)
|
Impairment of
goodwill and other assets
|
|
|
|
|
|
|
|
|
|
227.0
|
Loss on debt
refinancing
|
|
|
|
|
|
|
|
|
|
12.1
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
$
|
293.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
481.0
|
$
|
24.8
|
$
|
8.7
|
$
|
0.3
|
$
|
514.8
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
281.2
|
|
6.5
|
|
34.6
|
|
2.8
|
|
325.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
The Chief Executive
Officer uses adjusted operating income as the measure of profit to
assess the performance of each segment. Adjusted
operating income is referred as a
non-IFRS measure and is defined as net (loss) income before
depreciation and amortization, financial expenses, loss (gain) on
valuation and translation of financial
instruments, restructuring of operations, gain on litigation and
other items, impairment of goodwill and other assets, loss on debt refinancing, income taxes and loss from
discontinued operations.
|
QUEBECOR INC. AND
ITS SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF EQUITY
|
|
(in millions of
Canadian dollars)
|
(unaudited)
|
|
|
|
|
|
|
|
Equity
attributable to shareholders
|
|
|
|
|
|
|
Capital stock
|
Contributed surplus
|
|
Retained earnings
|
|
Accumulated
other com-
prehensive
loss
|
|
Equity
attributable
to non-
controlling
interests
|
|
Total
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of
December 31, 2014
|
$
|
327.2
|
$
|
2.3
|
$
|
238.9
|
$
|
(64.4)
|
$
|
559.3
|
$
|
1,063.3
|
Net income
|
|
-
|
|
-
|
|
186.6
|
|
-
|
|
16.0
|
|
202.6
|
Other comprehensive
income (loss)
|
|
-
|
|
-
|
|
-
|
|
8.0
|
|
(1.3)
|
|
6.7
|
Dividends
|
|
-
|
|
-
|
|
(11.7)
|
|
-
|
|
(18.5)
|
|
(30.2)
|
Repurchase of Class B
Shares
|
|
(1.4)
|
|
-
|
|
(9.7)
|
|
-
|
|
-
|
|
(11.1)
|
Issuance of shares of
a subsidiary to non-controlling interests
|
|
-
|
|
-
|
|
-
|
|
-
|
|
12.1
|
|
12.1
|
Non-controlling
interests and business acquisitions
|
|
-
|
|
-
|
|
(280.3)
|
|
(7.3)
|
|
(211.9)
|
|
(499.5)
|
Balance as of
September 30, 2015
|
|
325.8
|
|
2.3
|
|
123.8
|
|
(63.7)
|
|
355.7
|
|
743.9
|
Net (loss)
income
|
|
-
|
|
-
|
|
(34.8)
|
|
-
|
|
12.3
|
|
(22.5)
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
-
|
|
(47.5)
|
|
(11.8)
|
|
(59.3)
|
Dividends or
distributions
|
|
-
|
|
-
|
|
(4.3)
|
|
-
|
|
(4.9)
|
|
(9.2)
|
Repurchase of Class B
Shares
|
|
(0.2)
|
|
-
|
|
(1.1)
|
|
-
|
|
-
|
|
(1.3)
|
Non-controlling
interests and business acquisitions
|
|
-
|
|
-
|
|
(1.4)
|
|
-
|
|
1.8
|
|
0.4
|
Balance as of
December 31, 2015
|
|
325.6
|
|
2.3
|
|
82.2
|
|
(111.2)
|
|
353.1
|
|
652.0
|
Net income
|
|
-
|
|
-
|
|
71.4
|
|
-
|
|
34.0
|
|
105.4
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
-
|
|
(33.3)
|
|
(12.3)
|
|
(45.6)
|
Dividends or
distributions
|
|
-
|
|
-
|
|
(15.3)
|
|
-
|
|
(14.3)
|
|
(29.6)
|
Repurchase of Class B
Shares
|
|
(0.8)
|
|
-
|
|
(7.8)
|
|
-
|
|
-
|
|
(8.6)
|
Balance as of
September 30, 2016
|
$
|
324.8
|
$
|
2.3
|
$
|
130.5
|
$
|
(144.5)
|
$
|
360.5
|
$
|
673.6
|
QUEBECOR INC. AND
ITS SUBSIDIARIES
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
Three months
ended
|
|
Nine months
ended
|
(unaudited)
|
September
30
|
|
September
30
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Cash flows related
to operating activities
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
$
|
(3.0)
|
$
|
88.8
|
|
$
|
105.4
|
$
|
221.4
|
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
138.5
|
|
146.8
|
|
|
413.6
|
|
441.1
|
|
|
Amortization of
intangible assets
|
|
23.8
|
|
21.8
|
|
|
72.1
|
|
76.0
|
|
|
Loss (gain) on
valuation and translation of financial instruments
|
|
68.3
|
|
(53.8)
|
|
|
118.1
|
|
(94.6)
|
|
|
Impairment of
goodwill and other assets
|
|
40.9
|
|
197.0
|
|
|
40.9
|
|
227.0
|
|
|
Loss on debt
refinancing
|
|
-
|
|
-
|
|
|
-
|
|
12.1
|
|
|
Amortization of
financing costs and long-term debt discount
|
|
1.8
|
|
1.6
|
|
|
5.2
|
|
5.4
|
|
|
Deferred income
taxes
|
|
(13.8)
|
|
14.1
|
|
|
(34.1)
|
|
17.8
|
|
|
Other
|
|
(0.2)
|
|
0.4
|
|
|
1.9
|
|
2.8
|
|
|
256.3
|
|
416.7
|
|
|
723.1
|
|
909.0
|
|
Net change in
non-cash balances related to operating activities
|
|
85.8
|
|
(94.2)
|
|
|
79.1
|
|
(260.2)
|
Cash flows provided
by continuing operating activities
|
|
342.1
|
|
322.5
|
|
|
802.2
|
|
648.8
|
Cash flows related
to investing activities
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests acquisition
|
|
-
|
|
(500.0)
|
|
|
-
|
|
(500.0)
|
|
Business
acquisitions
|
|
-
|
|
(1.2)
|
|
|
(119.1)
|
|
(92.0)
|
|
Business
disposals
|
|
-
|
|
12.1
|
|
|
3.0
|
|
316.3
|
|
Additions to
property, plant and equipment
|
|
(163.8)
|
|
(191.1)
|
|
|
(541.3)
|
|
(514.8)
|
|
Additions to
intangible assets
|
|
(32.4)
|
|
(60.6)
|
|
|
(104.2)
|
|
(325.1)
|
|
Proceeds from
disposals of assets
|
|
1.3
|
|
0.5
|
|
|
3.1
|
|
2.4
|
|
Other
|
|
13.0
|
|
(13.3)
|
|
|
13.3
|
|
(13.0)
|
Cash flows used in
continuing investing activities
|
|
(181.9)
|
|
(753.6)
|
|
|
(745.2)
|
|
(1,126.2)
|
Cash flows related
to financing activities
|
|
|
|
|
|
|
|
|
|
|
Net change in bank
indebtedness
|
|
(21.5)
|
|
45.5
|
|
|
(1.6)
|
|
41.6
|
|
Net change under
revolving facilities
|
|
(99.3)
|
|
357.0
|
|
|
5.6
|
|
351.4
|
|
Issuance of long-term
debt, net of financing fees
|
|
-
|
|
370.1
|
|
|
-
|
|
370.1
|
|
Repayments of
long-term debt
|
|
(2.2)
|
|
(414.2)
|
|
|
(12.2)
|
|
(645.8)
|
|
Settlement of hedging
contracts
|
|
-
|
|
21.2
|
|
|
3.6
|
|
34.3
|
|
Issuance of shares of
a subsidiary to non-controlling interests
|
|
-
|
|
-
|
|
|
-
|
|
12.1
|
|
Repurchase of Class B
Shares
|
|
(5.0)
|
|
(4.8)
|
|
|
(8.6)
|
|
(11.1)
|
|
Dividends
|
|
(5.5)
|
|
(4.3)
|
|
|
(15.3)
|
|
(11.7)
|
|
Dividends or
distributions paid to non-controlling interests
|
|
(4.7)
|
|
(6.2)
|
|
|
(14.3)
|
|
(18.5)
|
Cash flows (used in)
provided by continuing financing activities
|
|
(138.2)
|
|
364.3
|
|
|
(42.8)
|
|
122.4
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents from continuing operations
|
|
22.0
|
|
(66.8)
|
|
|
14.2
|
|
(355.0)
|
|
|
|
|
|
|
|
|
|
|
Cash flows used in
discontinued operations
|
|
-
|
|
(1.4)
|
|
|
-
|
|
(21.4)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
10.8
|
|
87.1
|
|
|
18.6
|
|
395.3
|
Cash and cash
equivalents at end of period
|
$
|
32.8
|
$
|
18.9
|
|
$
|
32.8
|
$
|
18.9
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents consist of
|
|
|
|
|
|
|
|
|
|
|
Cash
|
$
|
31.3
|
$
|
16.0
|
|
$
|
31.3
|
$
|
16.0
|
|
Cash
equivalents
|
|
1.5
|
|
2.9
|
|
|
1.5
|
|
2.9
|
|
$
|
32.8
|
$
|
18.9
|
|
$
|
32.8
|
$
|
18.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and taxes
reflected as operating activities
|
|
|
|
|
|
|
|
|
|
|
Cash interest
payments
|
$
|
42.3
|
$
|
34.5
|
|
$
|
197.0
|
$
|
194.1
|
|
Cash income tax
payments (net of refunds)
|
|
14.1
|
|
34.4
|
|
|
78.0
|
|
134.0
|
QUEBECOR INC. AND
ITS SUBSIDIARIES
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
(unaudited)
|
|
September
30
|
|
|
December
31
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
32.8
|
|
$
|
18.6
|
|
Accounts
receivable
|
|
505.1
|
|
|
494.1
|
|
Income
taxes
|
|
7.1
|
|
|
28.6
|
|
Inventories
|
|
189.9
|
|
|
215.5
|
|
Prepaid
expenses
|
|
56.6
|
|
|
46.0
|
|
|
791.5
|
|
|
802.8
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
3,555.3
|
|
|
3,424.9
|
|
Intangible
assets
|
|
1,205.0
|
|
|
1,178.0
|
|
Goodwill
|
|
2,731.8
|
|
|
2,678.4
|
|
Derivative financial
instruments
|
|
805.0
|
|
|
1,072.4
|
|
Deferred income
taxes
|
|
42.6
|
|
|
29.5
|
|
Other
assets
|
|
91.0
|
|
|
89.9
|
|
|
8,430.7
|
|
|
8,473.1
|
Total
assets
|
$
|
9,222.2
|
|
$
|
9,275.9
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Bank
indebtedness
|
$
|
32.7
|
|
$
|
34.3
|
|
Accounts payable and
accrued charges
|
|
630.6
|
|
|
654.9
|
|
Provisions
|
|
64.1
|
|
|
67.1
|
|
Deferred
revenue
|
|
350.1
|
|
|
321.5
|
|
Income
taxes
|
|
32.2
|
|
|
9.1
|
|
Current portion of
long-term debt
|
|
51.1
|
|
|
44.0
|
|
|
1,160.8
|
|
|
1,130.9
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Long-term
debt
|
|
5,630.7
|
|
|
5,812.4
|
|
Derivative financial
instruments
|
|
3.4
|
|
|
118.7
|
|
Convertible
debentures
|
|
500.0
|
|
|
500.0
|
|
Other
liabilities
|
|
705.6
|
|
|
448.2
|
|
Deferred income
taxes
|
|
548.1
|
|
|
613.7
|
|
|
7,387.8
|
|
|
7,493.0
|
Equity
|
|
|
|
|
|
|
Capital
stock
|
|
324.8
|
|
|
325.6
|
|
Contributed
surplus
|
|
2.3
|
|
|
2.3
|
|
Retained
earnings
|
|
130.5
|
|
|
82.2
|
|
Accumulated other
comprehensive loss
|
|
(144.5)
|
|
|
(111.2)
|
|
Equity
attributable to shareholders
|
|
313.1
|
|
|
298.9
|
|
Non-controlling
interests
|
|
360.5
|
|
|
353.1
|
|
|
673.6
|
|
|
652.0
|
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
9,222.2
|
|
$
|
9,275.9
|
SOURCE Quebecor