Adjusted income from continuing operating activities:
$84.7 million ($0.69 per basic share) in the fourth quarter
of 2016, compared with $58.0 million ($0.47 per basic share) in the same period of
2015, an increase of $26.7 million ($0.22 per basic share) or 46.0%.
Financial transactions
- In accordance with a notice issued on December 2, 2016, Videotron redeemed, on
January 5, 2017, $175.0 million aggregate principal amount of its
outstanding 6.875% Senior Notes issued on July 5, 2011 and maturing on July 15, 2021 at a redemption price of 103.438%
of their principal amount.
- In June 2016, Quebecor amended
its revolving credit facility to extend its term to July 2019, Quebecor Media amended its secured
revolving credit facility to extend its term to July 2020, and Videotron amended its secured
revolving credit facility and its unsecured revolving credit
facility to extend their terms to July
2021. Some of the terms and conditions of the credit
facilities were also amended.
Dividend
On March 14, 2017, the Board of
Directors of Quebecor declared a quarterly dividend of $0.045 per share on its Class A Shares and
Class B Shares, payable on April 25,
2017 to shareholders of record at the close of business on
March 31, 2017. 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 2016, the Corporation purchased and cancelled 609,300 Class B
Shares for a total cash consideration of $22.7 million (413,300 Class B
Shares for a total cash consideration of $12.4 million in 2015). The $20.4 million excess of the purchase price
over the carrying value of the repurchased Class B Shares was
recorded in reduction of retained earnings ($10.8 million in 2015).
Detailed financial information
For a detailed analysis of Quebecor's fourth quarter and full
year 2016 results, please refer to the Management Discussion and
Analysis and consolidated financial statements of Quebecor,
available on the Corporation's website at
http://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 Quebecor's
fourth quarter and full year 2016 results on
March 15, 2017, at 11:00 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 48006#. A tape recording of the call will be
available from March 15 to June 15, 2017 by dialling
1 877 293‑8133, conference number 1212694#, access code
for participants 48006#. 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, 2016.
The forward-looking statements in this press release reflect
Quebecor's expectations as of March 15, 2017 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 more than
10,000 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 income (loss) under
International Financial Reporting Standards ("IFRS"), as net income
(loss) before depreciation and amortization, financial expenses,
(loss) gain on valuation and translation of financial instruments,
charge for restructuring of operations, 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 4 below provides a reconciliation of adjusted operating
income to net income (loss) as disclosed in Quebecor's consolidated
financial statements. The consolidated financial information for
the three-month periods ended December 31, 2016
and 2015 presented in Table 4 below is drawn from the
unaudited consolidated statements of income.
Table 4
Reconciliation of the adjusted operating income measure used in
this press release to the net income (loss) measure used in the
consolidated financial statements
(in millions of Canadian dollars)
|
|
Year ended
December 31
|
Three months
ended December 31
|
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss):
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
1,449.4
|
$
|
1,385.8
|
$
|
364.6
|
$
|
349.0
|
|
Media
|
|
63.3
|
|
70.2
|
|
24.7
|
|
22.3
|
|
Sports and
Entertainment
|
|
(7.2)
|
|
(11.7)
|
|
(1.0)
|
|
(3.1)
|
|
Head
Office
|
|
(11.4)
|
|
(3.6)
|
|
1.0
|
|
(7.4)
|
|
|
1,494.1
|
|
1,440.7
|
|
389.3
|
|
360.8
|
Depreciation and
amortization
|
|
(653.0)
|
|
(693.6)
|
|
(167.3)
|
|
(176.5)
|
Financial
expenses
|
|
(328.0)
|
|
(335.0)
|
|
(84.4)
|
|
(85.7)
|
(Loss) gain on
valuation and translation of
financial instruments
|
|
(70.3)
|
|
6.7
|
|
47.8
|
|
(87.9)
|
Restructuring of
operations, litigation and
other items
|
|
(28.0)
|
|
116.9
|
|
(13.3)
|
|
(8.0)
|
Impairment of
goodwill and other assets
|
|
(40.9)
|
|
(230.7)
|
|
̶
|
|
(3.7)
|
Loss on debt
refinancing
|
|
(7.3)
|
|
(12.1)
|
|
(7.3)
|
|
̶
|
Income
taxes
|
|
(117.8)
|
|
(93.1)
|
|
(21.4)
|
|
(20.6)
|
Loss from
discontinued operations
|
|
−
|
|
(19.7)
|
|
̶
|
|
(0.9)
|
Net income
(loss)
|
$
|
248.8
|
$
|
180.1
|
$
|
143.4
|
$
|
(22.5)
|
Adjusted income from continuing operating activities
The Corporation defines adjusted income from continuing
operating activities, as reconciled to net income (loss)
attributable to shareholders under IFRS, as net income (loss)
attributable to shareholders before (loss) gain on valuation and
translation of financial instruments, charge for restructuring of
operations, 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 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 5 provides a reconciliation of adjusted income from
continuing operating activities to the net income (loss)
attributable to shareholders measure used in Quebecor's
consolidated financial statements. The consolidated financial
information for the three‑month periods ended
December 31, 2016 and 2015 presented in Table 5 below is
drawn from the unaudited consolidated statements of income.
Table 5
Reconciliation of the adjusted income from continuing operating
activities measure used in this press release to the net income
(loss) attributable to shareholders measure used in the
consolidated financial statements
(in millions of Canadian dollars)
|
|
Year ended
December 31
|
Three months
ended December 31
|
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
|
|
|
|
Adjusted income from
continuing operating activities
|
$
|
305.5
|
$
|
239.9
|
$
|
84.7
|
$
|
58.0
|
(Loss) gain on
valuation and translation of financial instruments
|
|
(70.3)
|
|
6.7
|
|
47.8
|
|
(87.9)
|
Charge for
restructuring of operations, litigation and other items
|
|
(28.0)
|
|
116.9
|
|
(13.3)
|
|
(8.0)
|
Impairment of
goodwill and other assets
|
|
(40.9)
|
|
(230.7)
|
|
–
|
|
(3.7)
|
Loss on debt
refinancing
|
|
(7.3)
|
|
(12.1)
|
|
(7.3)
|
|
–
|
Income taxes related
to adjustments1
|
|
11.5
|
|
2.8
|
|
7.8
|
|
4.0
|
Net income
attributable to non‑controlling interest related to adjustments
|
|
24.2
|
|
42.1
|
|
3.6
|
|
3.5
|
Discontinued
operations
|
|
–
|
|
(13.8)
|
|
–
|
|
(0.7)
|
Net income (loss)
attributable to shareholders
|
$
|
194.7
|
$
|
151.8
|
$
|
123.3
|
$
|
(34.8)
|
|
|
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.
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars, except for earnings per share
data)
|
Three months
ended
|
|
Twelve months
ended
|
(unaudited)
|
December
31
|
|
December
31
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,050.4
|
$
|
1,023.5
|
|
$
|
4,016.6
|
$
|
3,890.8
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
178.6
|
|
178.8
|
|
|
714.8
|
|
697.4
|
Purchase of goods and
services
|
|
482.5
|
|
483.9
|
|
|
1,807.7
|
|
1,752.7
|
Depreciation and
amortization
|
|
167.3
|
|
176.5
|
|
|
653.0
|
|
693.6
|
Financial
expenses
|
|
84.4
|
|
85.7
|
|
|
328.0
|
|
335.0
|
(Gain) loss on
valuation and translation of financial instruments
|
|
(47.8)
|
|
87.9
|
|
|
70.3
|
|
(6.7)
|
Restructuring of
operations, litigation and other items
|
|
13.3
|
|
8.0
|
|
|
28.0
|
|
(116.9)
|
Impairment of
goodwill and other assets
|
|
-
|
|
3.7
|
|
|
40.9
|
|
230.7
|
Loss on debt
refinancing
|
|
7.3
|
|
-
|
|
|
7.3
|
|
12.1
|
Income (loss)
before income taxes
|
|
164.8
|
|
(1.0)
|
|
|
366.6
|
|
292.9
|
Income taxes
(recovery):
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
27.7
|
|
8.7
|
|
|
158.2
|
|
63.4
|
|
Deferred
|
|
(6.3)
|
|
11.9
|
|
|
(40.4)
|
|
29.7
|
|
|
21.4
|
|
20.6
|
|
|
117.8
|
|
93.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
143.4
|
|
(21.6)
|
|
|
248.8
|
|
199.8
|
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations
|
|
-
|
|
(0.9)
|
|
|
-
|
|
(19.7)
|
Net income
(loss)
|
$
|
143.4
|
$
|
(22.5)
|
|
$
|
248.8
|
$
|
180.1
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
123.3
|
$
|
(34.1)
|
|
$
|
194.7
|
$
|
165.6
|
|
Non-controlling
interests
|
|
20.1
|
|
12.5
|
|
|
54.1
|
|
34.2
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
123.3
|
$
|
(34.8)
|
|
$
|
194.7
|
$
|
151.8
|
|
Non-controlling
interests
|
|
20.1
|
|
12.3
|
|
|
54.1
|
|
28.3
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to shareholders
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations
|
$
|
1.01
|
$
|
(0.28)
|
|
$
|
1.59
|
$
|
1.35
|
|
|
From discontinued
operations
|
|
-
|
|
-
|
|
|
-
|
|
(0.11)
|
|
|
Net income
(loss)
|
|
1.01
|
|
(0.28)
|
|
|
1.59
|
|
1.24
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations
|
|
0.54
|
|
(0.28)
|
|
|
1.58
|
|
1.18
|
|
|
From discontinued
operations
|
|
-
|
|
-
|
|
|
-
|
|
(0.09)
|
|
|
Net income
(loss)
|
|
0.54
|
|
(0.28)
|
|
|
1.58
|
|
1.09
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (in millions)
|
|
122.1
|
|
122.5
|
|
|
122.3
|
|
122.7
|
Weighted average
number of diluted shares (in millions)
|
|
143.3
|
|
122.5
|
|
|
122.7
|
|
143.7
|
QUEBECOR
INC.
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
Three months
ended
|
|
Twelve months
ended
|
(unaudited)
|
December
31
|
|
December
31
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
143.4
|
$
|
(21.6)
|
|
$
|
248.8
|
$
|
199.8
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss) from continuing operations:
|
|
|
|
|
|
|
|
|
|
Items that may be
reclassified to income:
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow
hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) gain on
valuation of derivative financial instruments
|
|
(56.4)
|
|
(31.3)
|
|
|
(30.9)
|
|
14.0
|
|
|
|
Deferred income
taxes
|
|
(1.7)
|
|
(7.3)
|
|
|
15.9
|
|
(41.6)
|
|
Items that will not
be reclassified to income:
|
|
|
|
|
|
|
|
|
|
|
|
Defined benefit
plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Re-measurement gain
(loss)
|
|
153.8
|
|
(28.4)
|
|
|
32.8
|
|
(28.4)
|
|
|
|
Deferred
income taxes
|
|
(41.1)
|
|
7.7
|
|
|
(8.8)
|
|
7.7
|
|
Reclassification to
income:
|
|
|
|
|
|
|
|
|
|
|
|
Gain related to cash
flow hedges
|
|
-
|
|
-
|
|
|
-
|
|
(3.9)
|
|
|
Deferred income
taxes
|
|
-
|
|
-
|
|
|
-
|
|
(0.4)
|
|
|
54.6
|
|
(59.3)
|
|
|
9.0
|
|
(52.6)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) from continuing operations
|
|
198.0
|
|
(80.9)
|
|
|
257.8
|
|
147.2
|
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations
|
|
-
|
|
(0.9)
|
|
|
-
|
|
(19.7)
|
Comprehensive
income (loss)
|
$
|
198.0
|
$
|
(81.8)
|
|
$
|
257.8
|
$
|
127.5
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) from continuing operations attributable
to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
161.7
|
$
|
(81.6)
|
|
$
|
199.8
|
$
|
126.1
|
|
Non-controlling
interests
|
|
36.3
|
|
0.7
|
|
|
58.0
|
|
21.1
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
161.7
|
$
|
(82.3)
|
|
$
|
199.8
|
$
|
112.3
|
|
Non-controlling
interests
|
|
36.3
|
|
0.5
|
|
|
58.0
|
|
15.2
|
QUEBECOR
INC.
|
SEGMENTED
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
|
and
|
|
Office
|
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and Inter-
|
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
805.2
|
$
|
266.0
|
$
|
9.8
|
$
|
(30.6)
|
$
|
1,050.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
|
96.0
|
|
70.6
|
|
3.4
|
|
8.6
|
|
178.6
|
Purchase of goods and
services
|
|
|
344.6
|
|
170.7
|
|
7.4
|
|
(40.2)
|
|
482.5
|
Adjusted operating
income1
|
|
|
364.6
|
|
24.7
|
|
(1.0)
|
|
1.0
|
|
389.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
167.3
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
|
84.4
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
|
(47.8)
|
Restructuring of
operations, litigation and other items
|
|
|
|
|
|
|
|
|
|
|
13.3
|
Loss on debt
refinancing
|
|
|
|
|
|
|
|
|
|
|
7.3
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
|
$
|
164.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
|
$
|
158.9
|
$
|
9.3
|
$
|
0.6
|
$
|
(2.3)
|
$
|
166.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
|
32.3
|
|
2.6
|
|
0.2
|
|
1.0
|
|
36.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
|
and
|
|
Office
|
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and Inter-
|
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
777.1
|
$
|
270.1
|
$
|
10.1
|
$
|
(33.8)
|
$
|
1,023.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
|
92.2
|
|
66.9
|
|
3.9
|
|
15.8
|
|
178.8
|
Purchase of goods and
services
|
|
|
335.9
|
|
180.9
|
|
9.3
|
|
(42.2)
|
|
483.9
|
Adjusted operating
income1
|
|
|
349.0
|
|
22.3
|
|
(3.1)
|
|
(7.4)
|
|
360.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
176.5
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
|
85.7
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
|
87.9
|
Restructuring of
operations, litigation and other items
|
|
|
|
|
|
|
|
|
|
|
8.0
|
Impairment of other
assets
|
|
|
|
|
|
|
|
|
|
|
3.7
|
Loss before income
taxes
|
|
|
|
|
|
|
|
|
|
$
|
(1.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
|
$
|
149.2
|
$
|
11.2
|
$
|
3.3
|
$
|
0.1
|
$
|
163.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
|
31.1
|
|
2.8
|
|
-
|
|
1.6
|
|
35.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended December 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
|
and
|
|
Office
|
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and Inter-
|
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
3,151.8
|
$
|
938.0
|
$
|
34.6
|
$
|
(107.8)
|
$
|
4,016.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
|
379.7
|
|
269.2
|
|
11.5
|
|
54.4
|
|
714.8
|
Purchase of goods and
services
|
|
|
1,322.7
|
|
605.5
|
|
30.3
|
|
(150.8)
|
|
1,807.7
|
Adjusted operating
income1
|
|
|
1,449.4
|
|
63.3
|
|
(7.2)
|
|
(11.4)
|
|
1,494.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
653.0
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
|
328.0
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
|
70.3
|
Restructuring of
operation, litigation and other items
|
|
|
|
|
|
|
|
|
|
|
28.0
|
Impairment of
goodwill and other assets
|
|
|
|
|
|
|
|
|
|
|
40.9
|
Loss on debt
refinancing
|
|
|
|
|
|
|
|
|
|
|
7.3
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
|
$
|
366.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
|
$
|
666.8
|
$
|
38.2
|
$
|
2.5
|
$
|
0.3
|
$
|
707.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
|
125.6
|
|
10.2
|
|
0.8
|
|
3.2
|
|
139.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
|
and
|
|
Office
|
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and Inter-
|
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
3,007.0
|
$
|
975.8
|
$
|
23.2
|
$
|
(115.2)
|
$
|
3,890.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
|
359.4
|
|
285.3
|
|
11.0
|
|
41.7
|
|
697.4
|
Purchase of goods and
services
|
|
|
1,261.8
|
|
620.3
|
|
23.9
|
|
(153.3)
|
|
1,752.7
|
Adjusted operating
income1
|
|
|
1,385.8
|
|
70.2
|
|
(11.7)
|
|
(3.6)
|
|
1,440.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
693.6
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
|
335.0
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
|
(6.7)
|
Restructuring of
operations, litigation and other items
|
|
|
|
|
|
|
|
|
|
|
(116.9)
|
Impairment of
goodwill and other assets
|
|
|
|
|
|
|
|
|
|
|
230.7
|
Loss on debt
refinancing
|
|
|
|
|
|
|
|
|
|
|
12.1
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
|
$
|
292.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
|
$
|
630.2
|
$
|
36.0
|
$
|
12.0
|
$
|
0.4
|
$
|
678.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
|
312.3
|
|
9.3
|
|
34.6
|
|
4.4
|
|
360.6
|
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 to as a non-IFRS measure and is defined as net income
(loss) before depreciation and amortization, financial expenses,
(gain) loss on valuation and translation of financial instruments,
restructuring of operations, litigation and other items, impairment
of goodwill and other assets, loss on debt refinancing, income
taxes and loss from discontinued operations.
|
QUEBECOR
INC.
|
CONSOLIDATED
STATEMENTS OF EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
attributable to shareholders
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
attributable
|
|
|
|
|
|
|
|
|
|
|
other
com-
|
|
to
non-
|
|
|
|
|
Capital
|
|
Contributed
|
|
Retained
|
|
prehensive
|
|
controlling
|
|
Total
|
|
|
stock
|
|
surplus
|
|
earnings
|
|
loss
|
|
interests
|
|
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of
December 31, 2014
|
$
|
327.2
|
$
|
2.3
|
$
|
238.9
|
$
|
(64.4)
|
$
|
559.3
|
$
|
1,063.3
|
Net income
|
|
-
|
|
-
|
|
151.8
|
|
-
|
|
28.3
|
|
180.1
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
-
|
|
(39.5)
|
|
(13.1)
|
|
(52.6)
|
Dividends or
distributions
|
|
-
|
|
-
|
|
(16.0)
|
|
-
|
|
(23.4)
|
|
(39.4)
|
Repurchase of Class B
Shares
|
|
(1.6)
|
|
-
|
|
(10.8)
|
|
-
|
|
-
|
|
(12.4)
|
Issuance of shares of
a subsidiary to non-controlling
interests
|
|
-
|
|
-
|
|
-
|
|
-
|
|
12.1
|
|
12.1
|
Non-controlling
interests and business acquisitions
|
|
-
|
|
-
|
|
(281.7)
|
|
(7.3)
|
|
(210.1)
|
|
(499.1)
|
Balance as of
December 31, 2015
|
|
325.6
|
|
2.3
|
|
82.2
|
|
(111.2)
|
|
353.1
|
|
652.0
|
Net income
|
|
-
|
|
-
|
|
194.7
|
|
-
|
|
54.1
|
|
248.8
|
Other comprehensive
income
|
|
-
|
|
-
|
|
-
|
|
5.1
|
|
3.9
|
|
9.0
|
Dividends or
distributions
|
|
-
|
|
-
|
|
(20.8)
|
|
-
|
|
(19.1)
|
|
(39.9)
|
Repurchase of Class B
Shares
|
|
(2.3)
|
|
-
|
|
(20.4)
|
|
-
|
|
-
|
|
(22.7)
|
Balance as of
December 31, 2016
|
$
|
323.3
|
$
|
2.3
|
$
|
235.7
|
$
|
(106.1)
|
$
|
392.0
|
$
|
847.2
|
QUEBECOR
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
Three months
ended
|
|
Twelve months
ended
|
(unaudited)
|
|
December
31
|
|
December
31
|
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows related
to operating activities
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
$
|
143.4
|
$
|
(21.6)
|
|
$
|
248.8
|
$
|
199.8
|
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
|
141.5
|
|
154.1
|
|
|
555.1
|
|
595.2
|
|
|
Amortization of
intangible assets
|
|
|
25.8
|
|
22.4
|
|
|
97.9
|
|
98.4
|
|
|
(Gain) loss on
valuation and translation of financial instruments
|
|
|
(47.8)
|
|
87.9
|
|
|
70.3
|
|
(6.7)
|
|
|
Impairment of
goodwill and other assets
|
|
|
-
|
|
3.7
|
|
|
40.9
|
|
230.7
|
|
|
Loss on debt
refinancing
|
|
|
7.3
|
|
-
|
|
|
7.3
|
|
12.1
|
|
|
Amortization of
financing costs and long-term debt discount
|
|
|
1.9
|
|
1.7
|
|
|
7.1
|
|
7.1
|
|
|
Deferred income
taxes
|
|
|
(6.3)
|
|
11.9
|
|
|
(40.4)
|
|
29.7
|
|
|
Other
|
|
|
1.3
|
|
3.1
|
|
|
3.2
|
|
5.9
|
|
|
|
267.1
|
|
263.2
|
|
|
990.2
|
|
1,172.2
|
|
Net change in
non-cash balances related to operating activities
|
|
|
43.7
|
|
160.2
|
|
|
122.8
|
|
(100.0)
|
Cash flows provided
by continuing operating activities
|
|
|
310.8
|
|
423.4
|
|
|
1,113.0
|
|
1,072.2
|
Cash flows related
to investing activities
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests acquisitions
|
|
|
-
|
|
-
|
|
|
-
|
|
(500.0)
|
|
Business
acquisitions
|
|
|
(0.4)
|
|
(2.5)
|
|
|
(119.5)
|
|
(94.5)
|
|
Business
disposals
|
|
|
-
|
|
-
|
|
|
3.0
|
|
316.3
|
|
Additions to
property, plant and equipment
|
|
|
(166.5)
|
|
(163.8)
|
|
|
(707.8)
|
|
(678.6)
|
|
Additions to
intangible assets
|
|
|
(36.1)
|
|
(35.5)
|
|
|
(139.8)
|
|
(360.6)
|
|
Proceeds from
disposals of assets
|
|
|
1.2
|
|
2.2
|
|
|
4.3
|
|
4.6
|
|
Other
|
|
|
(0.2)
|
|
0.4
|
|
|
12.6
|
|
(12.6)
|
Cash flows used in
continuing investing activities
|
|
|
(202.0)
|
|
(199.2)
|
|
|
(947.2)
|
|
(1,325.4)
|
Cash flows related
to financing activities
|
|
|
|
|
|
|
|
|
|
|
|
Net change in bank
indebtedness
|
|
|
(13.8)
|
|
(12.5)
|
|
|
(15.4)
|
|
29.1
|
|
Net change under
revolving facilities
|
|
|
(70.1)
|
|
(124.3)
|
|
|
(64.5)
|
|
227.1
|
|
Issuance of long-term
debt, net of financing fees
|
|
|
-
|
|
-
|
|
|
-
|
|
370.1
|
|
Repayments of
long-term debt
|
|
|
(7.8)
|
|
(7.5)
|
|
|
(20.0)
|
|
(653.3)
|
|
Settlement of hedging
contracts
|
|
|
(3.2)
|
|
(68.6)
|
|
|
0.4
|
|
(34.3)
|
|
Repurchase of Class B
Shares
|
|
|
(14.1)
|
|
(1.3)
|
|
|
(22.7)
|
|
(12.4)
|
|
Issuance of shares of
a subsidiary to non-controlling interests
|
|
|
-
|
|
-
|
|
|
-
|
|
12.1
|
|
Dividends
|
|
|
(5.5)
|
|
(4.3)
|
|
|
(20.8)
|
|
(16.0)
|
|
Dividends or
distributions paid to non-controlling interests
|
|
|
(4.8)
|
|
(4.9)
|
|
|
(19.1)
|
|
(23.4)
|
Cash flows used in
continuing financing activities
|
|
|
(119.3)
|
|
(223.4)
|
|
|
(162.1)
|
|
(101.0)
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents from continuing operations
|
|
|
(10.5)
|
|
0.8
|
|
|
3.7
|
|
(354.2)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used in
discontinued operations
|
|
|
-
|
|
(1.1)
|
|
|
-
|
|
(22.5)
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the period
|
|
|
32.8
|
|
18.9
|
|
|
18.6
|
|
395.3
|
Cash and cash
equivalents at the end of the period
|
|
$
|
22.3
|
$
|
18.6
|
|
$
|
22.3
|
$
|
18.6
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents consist of
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
21.5
|
$
|
17.0
|
|
$
|
21.5
|
$
|
17.0
|
|
Cash
equivalents
|
|
|
0.8
|
|
1.6
|
|
|
0.8
|
|
1.6
|
|
|
$
|
22.3
|
$
|
18.6
|
|
$
|
22.3
|
$
|
18.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and taxes
reflected as operating activities
|
|
|
|
|
|
|
|
|
|
|
|
Cash interest
payments
|
|
$
|
111.6
|
$
|
111.6
|
|
$
|
308.6
|
$
|
305.7
|
|
Cash income tax
payments (net of refunds)
|
|
|
26.4
|
|
24.0
|
|
|
104.4
|
|
158.0
|
QUEBECOR
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
|
(unaudited)
|
|
|
December
31
|
|
|
December
31
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
22.3
|
|
$
|
18.6
|
|
Accounts
receivable
|
|
|
525.4
|
|
|
494.1
|
|
Income
taxes
|
|
|
6.9
|
|
|
28.6
|
|
Inventories
|
|
|
183.3
|
|
|
215.5
|
|
Prepaid
expenses
|
|
|
53.0
|
|
|
46.0
|
|
|
|
790.9
|
|
|
802.8
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
3,605.1
|
|
|
3,424.9
|
|
Intangible
assets
|
|
|
1,224.0
|
|
|
1,178.0
|
|
Goodwill
|
|
|
2,725.4
|
|
|
2,678.4
|
|
Derivative financial
instruments
|
|
|
809.0
|
|
|
1,072.4
|
|
Deferred income
taxes
|
|
|
16.0
|
|
|
29.5
|
|
Other
assets
|
|
|
91.9
|
|
|
89.9
|
|
|
|
8,471.4
|
|
|
8,473.1
|
Total
assets
|
|
$
|
9,262.3
|
|
$
|
9,275.9
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Bank
indebtedness
|
|
$
|
18.9
|
|
$
|
34.3
|
|
Accounts payable and
accrued charges
|
|
|
705.9
|
|
|
654.9
|
|
Provisions
|
|
|
69.3
|
|
|
67.1
|
|
Deferred
revenue
|
|
|
339.7
|
|
|
321.5
|
|
Income
taxes
|
|
|
35.2
|
|
|
9.1
|
|
Current portion of
long-term debt
|
|
|
51.8
|
|
|
44.0
|
|
|
|
1,220.8
|
|
|
1,130.9
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
5,616.9
|
|
|
5,812.4
|
|
Derivative financial
instruments
|
|
|
0.3
|
|
|
118.7
|
|
Convertible
debentures
|
|
|
500.0
|
|
|
500.0
|
|
Other
liabilities
|
|
|
516.2
|
|
|
448.2
|
|
Deferred income
taxes
|
|
|
560.9
|
|
|
613.7
|
|
|
|
7,194.3
|
|
|
7,493.0
|
Equity
|
|
|
|
|
|
|
|
Capital
stock
|
|
|
323.3
|
|
|
325.6
|
|
Contributed
surplus
|
|
|
2.3
|
|
|
2.3
|
|
Retained
earnings
|
|
|
235.7
|
|
|
82.2
|
|
Accumulated other
comprehensive loss
|
|
|
(106.1)
|
|
|
(111.2)
|
|
Equity
attributable to shareholders
|
|
|
455.2
|
|
|
298.9
|
|
Non-controlling
interests
|
|
|
392.0
|
|
|
353.1
|
|
|
|
847.2
|
|
|
652.0
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
$
|
9,262.3
|
|
$
|
9,275.9
|
SOURCE Quebecor