MONTRÉAL, Aug. 10, 2017 /CNW
Telbec/ - Quebecor Inc. ("Quebecor" or the "Corporation") today
reported its consolidated financial results for the second quarter
of 2017. Quebecor consolidates the financial results of its
Quebecor Media Inc. ("Quebecor Media") subsidiary. On
July 6, 2017, Quebecor Media repurchased for cancellation
541,899 of its Common Shares held by CDP Capital d'Amérique
Investissement inc. ("CDP Capital"), a subsidiary of the
Caisse de dépôt et placement du Québec. Upon completion of the
transaction, the Corporation's interest in Quebecor Media increased
from 81.07% to 81.53%.
HIGHLIGHTS
Second quarter 2017
- Revenues: $1.03 billion in
the second quarter of 2017, up $39.6 million (4.0%) from the same period
of 2016.
- Adjusted operating
income:1 $395.3 million, up $35.0 million (9.7%), the largest quarterly
year-over-year increase in almost five years.
- Net income attributable to shareholders: $132.4 million ($1.09 per basic share) in the second quarter
of 2017, compared with $9.8 million ($0.08 per basic share) in the same period of
2016, an increase of $122.6 million ($1.01 per basic share), including the favourable
impact of an $87.8 million gain
on the sale of a spectrum licence.
- Adjusted income from continuing operating
activities:2 $83.2 million ($0.69 per basic share) in the second quarter
of 2017, compared with $69.9 million ($0.57 per basic share) in the same period of
2016, an increase of $13.3 million ($0.12 per basic share) or 19.0%.
- The Telecommunications segment grew its revenues by
$39.7 million (5.1%) and its
adjusted operating income by $26.3 million (7.3%) in the second quarter
of 2017.
- In the second quarter of 2017, Videotron Ltd. ("Videotron")
significantly increased its revenues from mobile telephony
($26.8 million or 21.8%), Internet
access ($13.9 million or 5.7%),
business solutions ($4.6 million
or 17.1%) and the Club illico over‑the‑top video service ("Club
illico") ($2.4 million or
32.4%).
- Videotron's average monthly revenue per user3
("ARPU") was up $10.27 (7.2%) from
$143.01 in the second quarter
of 2016 to $153.28 in the second
quarter of 2017.
- Subscriber connections to the mobile telephony service
increased by 32,400 (3.5%) and subscriptions to Club illico
by 13,100 (4.0%) in the second quarter of 2017.
- On June 20, 2017, Videotron sold
its Advanced Wireless Services (AWS-1) spectrum licence in the
Metropolitan Toronto area to Rogers Communications Canada Inc.
("Rogers") for a cash consideration of $184.2 million. The sale was recognized in
the second quarter of 2017.
- On July 24, 2017, Videotron sold
seven 2500 MHz and 700 MHZ wireless spectrum licences
outside Québec to Shaw Communications Inc. for a cash
consideration of $430.0 million.
The sale will be recognized in the third quarter of 2017.
- The Media segment grew its adjusted operating income by
$8.4 million (121.7%) in the
second quarter of 2017, mainly as a result of higher
advertising and subscription revenues at its broadcasting
business.
"Driven once again by the excellent performance of its
Telecommunications segment but also by a marked improvement in the
operating profitability of the Media segment, Quebecor generated
significant increases in adjusted operating income and adjusted
income from continuing operating activities in the second quarter
of 2017," commented Pierre Karl Péladeau, President and
Chief Executive Officer of Quebecor.
"Videotron closed two major transactions relating to mobile
telephony in recent months," Mr. Péladeau noted. "It sold its AWS‑1
spectrum licence in the Metropolitan Toronto area and seven
2500 MHz and 700 MHz spectrum licences outside Québec,
generating cash inflows of $614.2 million and total gains on disposal
of assets of $330.8 million, of
which $243.0 million will be
recognized in the third quarter of 2017. Having sold those
assets, Videotron intends to continue its investments; its plans
include expanding and densifying its 4G network, eventual
roll-out of a 5G network, and upgrading its IP wireline network.
Those investments will cement Videotron's competitive posture in
the wireless and wireline markets in Québec and Eastern Ontario. Videotron continues to stand
out in the mobile telephony market. According to the latest annual
report from J.D. Power Canada,
Videotron had the best-quality wireless network in eastern
Canada for the third consecutive
year."
"Quebecor's Telecommunications segment posted another solid
performance," commented Manon
Brouillette, President and Chief Executive Officer of
Videotron. "It grew its adjusted operating income by 7.3%, the
largest quarterly increase in the past 15 quarters.
Videotron's revenue generating units4 increased by
147,400 (2.6%) during the 12-month period ended June 30, 2017,
including an increase of 124,400 subscriber connections
(15.0%) to the mobile telephony service. Despite the fact that some
customers temporarily interrupt their service during the
traditional moving season in Québec, the number of
revenue-generating units held steady in the second quarter
of 2017, compared with a 16,900-unit drop in the same quarter
of 2016. These results were accompanied by a notable improvement in
the mobile service's ARPU to $53.32
in the second quarter of 2017, up 5.6% from the same time last
year.
"Our Club illico service also posted large gains, increasing its
subscriber base by 71,300 (26.8%) in the last 12 months to a total
of 337,600 at the end of the second quarter of 2017,
attesting to the enthusiastic consumer response to Club illico's
diverse, high-quality offerings. Business solutions again made a
positive contribution to the revenue increase as a result of our
strategic acquisitions and our forward-looking investments of
recent years in this high-growth-potential market," Ms. Brouillette
added.
"In the Media segment, the broadcasting business was responsible
for the 121.7% increase in the segment's adjusted operating income,
contributing a $7.5 million
favourable variance compared with the second quarter of 2016,"
observed Julie Tremblay, President
and Chief Executive Officer of Quebecor's Media Group. "The
positive results reflect the impact of higher advertising revenues
at the TVA Sports specialty service and at TVA Network,
combined with higher subscription revenues at TVA Sports.
TVA Network and TVA Sports posted year-over-year growth
in advertising revenues for the third and fourth consecutive
quarters respectively. The numbers show the positive impact of our
programming strategy, the value of our content and the
effectiveness of our multiplatform offerings. It is noteworthy that
in the spring of 2017, TVA Sports posted the best Québec ratings
since 2008 for the Stanley Cup finals, which were carried by a
rival network from 2008 to 2014, attracting an average total
audience of 962,000 viewers and a 36.6% market share.
"In our film production and audiovisual services business,
revenues and adjusted operating income were up because of higher
volume generated by major new productions. In our magazine
publishing business, we are maintaining cost-control discipline:
the segment reported stable adjusted operating income in the second
quarter of 2017 despite lower revenues," Julie Tremblay
concluded.
On the financial front, Quebecor Media repurchased a portion of
CDP Capital's interest in its share capital on
July 6, 2017. "It remains our goal to make Quebecor the
sole shareholder in Quebecor Media when we complete the share
repurchase process begun in 2012," said Jean‑François Pruneau,
Senior Vice President and Chief Financial Officer of Quebecor.
"Thanks to its solid business plan and the beneficial impact of
its investments in lines of business with high growth and
profitability potential, the Corporation remains in an excellent
position to create shareholder value," concluded Pierre Karl
Péladeau.
_____________________________
|
1
|
See "Adjusted
operating income" under "Definitions."
|
2
|
See "Adjusted income
from continuing operations" 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.
|
Table
1
|
|
|
|
|
|
|
|
|
|
Quebecor second
quarter financial highlights, 2013 to 2017
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars, except per share data)
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
1,032.1
|
|
$
992.5
|
|
$
963.8
|
|
$
896.1
|
|
$
880.7
|
Adjusted operating
income
|
395.3
|
|
360.3
|
|
349.3
|
|
359.9
|
|
348.0
|
Income (loss) from
continuing operating activities
attributable to shareholders
|
125.6
|
|
9.8
|
|
81.2
|
|
53.0
|
|
(125.9)
|
Net income (loss)
attributable to shareholders
|
132.4
|
|
9.8
|
|
72.1
|
|
(54.8)
|
|
(93.6)
|
Adjusted income from
continuing operating
activities
|
83.2
|
|
69.9
|
|
66.5
|
|
55.9
|
|
44.8
|
Per basic
share:
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operating activities
attributable to shareholders
|
1.03
|
|
0.08
|
|
0.66
|
|
0.42
|
|
(1.01)
|
|
Net income (loss)
attributable to shareholders
|
1.09
|
|
0.08
|
|
0.59
|
|
(0.45)
|
|
(0.75)
|
|
Adjusted income from
continuing operating
activities
|
0.69
|
|
0.57
|
|
0.54
|
|
0.45
|
|
0.36
|
2017/2016 second quarter comparison
Revenues: $1.03 billion, a $39.6 million (4.0%) increase.
- Revenues increased in Telecommunications ($39.7 million or 5.1% of segment revenues)
and in Media ($1.8 million or 0.8%).
- Revenues decreased in Sports and Entertainment (-$2.7 million or -40.3%).
Adjusted operating income: $395.3 million, a $35.0 million (9.7%) increase.
- Adjusted operating income increased in Telecommunications
($26.3 million or 7.3% of
segment adjusted operating income) and in Media ($8.4 million or 121.7%).
- There was an unfavourable variance in Sports and Entertainment
($1.4 million).
- The change in the fair value of Quebecor Media stock options
resulted in a $2.9 million
unfavourable variance in the stock‑based compensation charge in the
second quarter of 2017 compared with the same period of 2016.
The change in the fair value of Quebecor stock options and in the
value of Quebecor stock-price-based share units resulted in a
$4.1 million favourable variance
in the Corporation's stock-based compensation charge in the second
quarter of 2017.
Net income attributable to shareholders: $132.4 million ($1.09 per basic share) in the second quarter
of 2017, compared with $9.8 million ($0.08 per basic share) in the same period of
2016, an increase of $122.6 million ($1.01 per basic share).
- The favourable variance was due primarily to:
-
- $87.8 million gain on the
sale of a spectrum licence recognized in the second quarter of
2017, including $43.9 million
without any tax consequences;
- $35.0 million increase in
adjusted operating income;
- $17.3 million favourable
variance in losses on valuation and translation of financial
instruments, including $19.8 million without any tax
consequences;
- $18.6 million decrease in
the income tax expense;
- $8.4 million favourable
variance in income from discontinued operations.
Partially offset by:
- $11.6 million increase in
the depreciation and amortization charge;
- $6.2 million unfavourable
variance in the charge for restructuring of operations, litigation
and other items.
Adjusted income from continuing operating activities:
$83.2 million ($0.69 per basic share) in the second quarter
of 2017, compared with $69.9 million ($0.57 per basic share) in the same period of
2016, an increase of $13.3 million ($0.12 per basic share).
2017/2016 year-to-date comparison
Revenues: $2.03 billion, a $60.6 million (3.1%) increase.
- Revenues increased in Telecommunications ($67.1 million or 4.3% of segment
revenues).
- Revenues decreased in Media ($8.5 million or -1.9%) and in Sports and
Entertainment ($1.6 million
or ‑9.4%).
Adjusted operating income: $760.4 million, a $45.4 million (6.3%) increase.
- Adjusted operating income increased in Telecommunications
($44.7 million or 6.2% of
segment adjusted operating income) and in Media ($8.2 million or 195.2%).
- There were unfavourable variances in Sports and Entertainment
($0.7 million) and at Head
Office ($6.8 million). The
change at Head Office was mainly due to higher compensation costs
and philanthropic activities.
- The change in the fair value of Quebecor Media stock options
resulted in a $2.2 million
unfavourable variance in the stock‑based compensation charge in the
first half of 2017 compared with the same period of 2016. The
change in the fair value of Quebecor stock options and in the value
of Quebecor stock-price-based share units resulted in a
$0.5 million unfavourable
variance in the Corporation's stock-based compensation charge in
the first half of 2017.
Net income attributable to shareholders: $132.2 million ($1.09 per basic share) in the first half of 2017,
compared with $79.7 million
($0.65 per basic share) in the
same period of 2016, an increase of $52.5 million ($0.44 per basic share).
- The favourable variance was due primarily to:
-
- $87.8 million gain on the
sale of a spectrum licence recognized in the first half of 2017,
including $43.9 million without
any tax consequences;
- $45.4 million increase in
adjusted operating income;
- $20.9 million decrease in
the income tax expense;
- $12.6 million favourable
variance in the charge for restructuring of operations, litigation
and other items;
- $8.4 million favourable
variance in income from discontinued operations;
- $4.9 million decrease in
financial expenses.
Partially offset by:
- $61.7 million unfavourable
variance in the loss on valuation and translation of financial
instruments, including $60.7 million without any tax
consequences;
- $19.7 million increase in
the depreciation and amortization charge;
- $15.6 million unfavourable
variance in the loss on debt refinancing.
Adjusted income from continuing operating activities:
$154.1 million ($1.27 per basic share) in the first half
of 2017, compared with $137.6 million ($1.12 per basic share) in the same period of
2016, an increase of $16.5 million ($0.15 per basic share).
Financial transactions
On July 14, 2017, Quebecor
received a notice regarding the conversion of convertible
debentures in the principal amount of $50.0 million for
2,077,922 Class B Subordinate Voting Shares
("Class B Shares") of Quebecor. The Corporation exercised its
option to pay cash. The cash amount payable on September 6, 2017 will be based on the average of
the daily volume‑weighted average price of Quebecor Class B Shares
traded on the Toronto Stock Exchange between
August 1, 2017 and August 29, 2017.
On July 6, 2017, Quebecor Media
repurchased for cancellation 541,899 of its Common Shares held by
CDP Capital for an aggregate purchase price of $37.7 million, payable in cash. On the same
date, Quebecor Media also paid off a security held by
CDP Capital for $6.2 million. Upon completion of
these transactions, the Corporation's interest in Quebecor Media
increased from 81.07% to 81.53%, while CDP Capital's
interest decreased from 18.93% to 18.47%.
On May 4, 2017, Videotron
transferred all then-existing commitments under its unsecured
revolving credit facility to its secured revolving credit facility,
thereby increasing its secured facility from $630.0 million to $965.0 million and terminating its unsecured
facility.
On May 1, 2017, Quebecor Media
redeemed the entirety of its outstanding 7.375% Senior Notes issued
on January 5, 2011 and maturing on
January 15, 2021, in the aggregate principal amount of
$325.0 million, at a redemption
price of 102.458% of their principal amount, in accordance with a
notice issued on March 31, 2017.
On May 1, 2017, Videotron redeemed
$125.0 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 accordance with a notice issued on
March 31, 2017. The repurchase followed the redemption on
January 5, 2017 of an initial
$175.0 million tranche of the
Notes, in accordance with a notice issued on December 2, 2016.
On April 13, 2017, Videotron
issued US$600.0 million
aggregate principal amount of 5.125% Senior Notes maturing on
April 15, 2027, for net proceeds
of $794.5 million, net of financing fees of $9.9 million.
Board of Directors
On August 7, 2017, the Board of
Directors received the resignation of Geneviève Marcon, a Director
of the Corporation since 2012, a Director of Quebecor Media since
2013, and a member of the Human Resources and Corporate Governance
committees of both corporations. The Board thanks her for her
contribution to Quebecor's success over the past five years.
Dividend
On August 9, 2017, the Board of
Directors of Quebecor declared a quarterly dividend of $0.055 per share on its Class A Multiple
Voting Shares ("Class A Shares") and Class B Shares, payable
on September 19, 2017 to shareholders
of record at the close of business on August 25, 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 9, 2017, the Board of
Directors of Quebecor authorized the renewal of a 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 1, 2017.
The purchases will be made from August
15, 2017 to August 14, 2018 at
market prices on the open market through the facilities of the
Toronto Stock Exchange, in accordance with the requirements of that
exchange, or through other alternative trading systems. All shares
purchased under the bid will be cancelled. As of August 1,
2017, 38,745,844 Class A Shares and 82,087,720 Class B
Shares were issued and outstanding.
The average daily trading volume of the Class A Shares and Class
B Shares of the Corporation between February 1, 2017 and
July 31, 2017 on the Toronto Stock Exchange was
919 Class A Shares and 164,145 Class B Shares.
Consequently, the Corporation will be authorized to purchase a
maximum of 1,000 Class A Shares and 41,036 Class B Shares
during the same trading day, pursuant to its normal course issuer
bid.
The Corporation believes that the repurchase of these shares
under this normal course issuer bid is in the best interests of the
Corporation and its shareholders.
Between August 15, 2016 and
July 31, 2017, the Corporation did
not purchase any Class A Shares and purchased
1,465,500 Class B Shares at a weighted price
of $40.3784 per share.
Shareholders may obtain a copy of the Notice filed with the
Toronto Stock Exchange, without charge, by contacting the Office of
the Secretary of the Corporation at 514 380‑1994.
Detailed financial information
For a detailed analysis of Quebecor's second quarter 2017
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 second
quarter 2017 results on August 10, 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 August 10 to
November 11, 2017 by dialling 1 877 293‑8133,
conference number 1220905, 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 August 10, 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 81.53% 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 under
International Financial Reporting Standards ("IFRS"), as net income
before depreciation and amortization, financial expenses, loss on
valuation and translation of financial instruments, restructuring
of operations, litigation and other items, gain on sale of spectrum
licences, loss on debt refinancing, income tax, and income 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 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 income measure used in the condensed consolidated financial
statements
|
(in millions of
Canadian dollars)
|
|
|
|
|
Three months
ended June 30
|
Six
months ended June 30
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss):
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
388.8
|
$
|
362.5
|
$
|
765.9
|
$
|
721.2
|
|
Media
|
|
15.3
|
|
6.9
|
|
12.4
|
|
4.2
|
|
Sports and
Entertainment
|
|
(5.5)
|
|
(4.1)
|
|
(5.6)
|
|
(4.9)
|
|
Head
Office
|
|
(3.3)
|
|
(5.0)
|
|
(12.3)
|
|
(5.5)
|
|
|
395.3
|
|
360.3
|
|
760.4
|
|
715.0
|
Depreciation and
amortization
|
|
(173.3)
|
|
(161.7)
|
|
(343.1)
|
|
(323.4)
|
Financial
expenses
|
|
(78.9)
|
|
(80.1)
|
|
(156.0)
|
|
(160.9)
|
Loss on valuation and
translation of financial instruments
|
|
(39.1)
|
|
(56.4)
|
|
(111.5)
|
|
(49.8)
|
Restructuring of
operations, litigation and other items
|
|
(11.8)
|
|
(5.6)
|
|
(0.9)
|
|
(13.5)
|
Gain on sale of
spectrum licences
|
|
87.8
|
|
−
|
|
87.8
|
|
−
|
Loss on debt
refinancing
|
|
−
|
|
−
|
|
(15.6)
|
|
−
|
Income
taxes
|
|
(12.7)
|
|
(31.3)
|
|
(38.1)
|
|
(59.0)
|
Income from
discontinued operations
|
|
8.4
|
|
−
|
|
8.4
|
|
−
|
Net
income
|
$
|
175.7
|
$
|
25.2
|
$
|
191.4
|
$
|
108.4
|
Adjusted income from continuing operating activities
The Corporation defines adjusted income from continuing
operating activities, as reconciled to net income attributable to
shareholders under IFRS, as net income attributable to
shareholders before loss on valuation and translation of financial
instruments, restructuring of operations, litigation and other
items, gain on sale of spectrum licences, loss on debt refinancing,
net of income tax related to adjustments and net income
attributable to non-controlling interest related to adjustments,
and before the income 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 3 provides a reconciliation of adjusted income from
continuing operations to the net 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 income attributable to
shareholders' measure used in the condensed consolidated financial
statements
|
(in millions of
Canadian dollars)
|
|
|
|
|
Three months ended
June 30
|
Six months ended
June 30
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Adjusted income from
continuing operating activities
|
$
|
83.2
|
$
|
69.9
|
$
|
154.1
|
$
|
137.6
|
Loss on valuation and
translation of financial instruments
|
|
(39.1)
|
|
(56.4)
|
|
(111.5)
|
|
(49.8)
|
Restructuring of
operations, litigation and other items
|
|
(11.8)
|
|
(5.6)
|
|
(0.9)
|
|
(13.5)
|
Gain on sale of
spectrum licences
|
|
87.8
|
|
−
|
|
87.8
|
|
−
|
Loss on debt
refinancing
|
|
−
|
|
−
|
|
(15.6)
|
|
−
|
Income taxes related
to adjustments1
|
|
26.3
|
|
1.1
|
|
32.4
|
|
3.2
|
Net income
attributable to non‑controlling interest related to
adjustments
|
|
(20.8)
|
|
0.8
|
|
(20.9)
|
|
2.2
|
Discontinued
operations
|
|
6.8
|
|
−
|
|
6.8
|
|
−
|
Net income
attributable to shareholders
|
$
|
132.4
|
$
|
9.8
|
$
|
132.2
|
$
|
79.7
|
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
|
|
Six months
ended
|
(unaudited)
|
June 30
|
|
June 30
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,032.1
|
$
|
992.5
|
|
$
|
2,028.5
|
$
|
1,967.9
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
182.0
|
|
181.4
|
|
|
369.1
|
|
366.4
|
Purchase of goods and
services
|
|
454.8
|
|
450.8
|
|
|
899.0
|
|
886.5
|
Depreciation and
amortization
|
|
173.3
|
|
161.7
|
|
|
343.1
|
|
323.4
|
Financial
expenses
|
|
78.9
|
|
80.1
|
|
|
156.0
|
|
160.9
|
Loss on valuation and
translation of financial instruments
|
|
39.1
|
|
56.4
|
|
|
111.5
|
|
49.8
|
Restructuring of
operations, litigation and other items
|
|
11.8
|
|
5.6
|
|
|
0.9
|
|
13.5
|
Gain on sale of
spectrum licences
|
|
(87.8)
|
|
-
|
|
|
(87.8)
|
|
-
|
Loss on debt
refinancing
|
|
-
|
|
-
|
|
|
15.6
|
|
-
|
Income before
income taxes
|
|
180.0
|
|
56.5
|
|
|
221.1
|
|
167.4
|
Income taxes
(recovery):
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
8.7
|
|
41.1
|
|
|
12.1
|
|
79.3
|
|
Deferred
|
|
4.0
|
|
(9.8)
|
|
|
26.0
|
|
(20.3)
|
|
|
12.7
|
|
31.3
|
|
|
38.1
|
|
59.0
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
167.3
|
|
25.2
|
|
|
183.0
|
|
108.4
|
Income from
discontinued operations
|
|
8.4
|
|
-
|
|
|
8.4
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
175.7
|
$
|
25.2
|
|
$
|
191.4
|
$
|
108.4
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
125.6
|
$
|
9.8
|
|
$
|
125.4
|
$
|
79.7
|
|
Non-controlling
interests
|
|
41.7
|
|
15.4
|
|
|
57.6
|
|
28.7
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
132.4
|
$
|
9.8
|
|
$
|
132.2
|
$
|
79.7
|
|
Non-controlling
interests
|
|
43.3
|
|
15.4
|
|
|
59.2
|
|
28.7
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to shareholders
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted:
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations
|
$
|
1.03
|
$
|
0.08
|
|
$
|
1.03
|
$
|
0.65
|
|
|
From discontinued
operations
|
|
0.06
|
|
-
|
|
|
0.06
|
|
-
|
|
|
Net income
|
|
1.09
|
|
0.08
|
|
|
1.09
|
|
0.65
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (in millions)
|
|
121.4
|
|
122.4
|
|
|
121.5
|
|
122.4
|
Weighted average
number of diluted shares (in millions)
|
|
121.6
|
|
122.8
|
|
|
121.7
|
|
122.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUEBECOR
INC.
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Canadian dollars)
|
|
Three months ended
|
|
|
Six months ended
|
(unaudited)
|
|
June 30
|
|
|
June 30
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
167.3
|
$
|
25.2
|
|
$
|
183.0
|
$
|
108.4
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss) from continuing operations:
|
|
|
|
|
|
|
|
|
|
Items that may be
reclassified to income:
|
|
|
|
|
|
|
|
|
|
|
Cash flow
hedges:
|
|
|
|
|
|
|
|
|
|
|
|
Gain on valuation of
derivative financial instruments
|
|
40.3
|
|
36.1
|
|
|
28.0
|
|
46.2
|
|
|
|
Deferred income
taxes
|
|
21.2
|
|
3.9
|
|
|
25.0
|
|
19.2
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not
be reclassified to income:
|
|
|
|
|
|
|
|
|
|
|
Defined benefit
plans:
|
|
|
|
|
|
|
|
|
|
|
|
Re-measurement
loss
|
|
-
|
|
(61.0)
|
|
|
-
|
|
(139.0)
|
|
|
|
Deferred income
taxes
|
|
-
|
|
16.1
|
|
|
-
|
|
37.1
|
|
|
61.5
|
|
(4.9)
|
|
|
53.0
|
|
(36.5)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income from continuing operations
|
|
228.8
|
|
20.3
|
|
|
236.0
|
|
71.9
|
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations
|
|
8.4
|
|
-
|
|
|
8.4
|
|
-
|
Comprehensive
income
|
$
|
237.2
|
$
|
20.3
|
|
$
|
244.4
|
$
|
71.9
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income from continuing operations attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
175.6
|
$
|
7.7
|
|
$
|
168.5
|
$
|
54.8
|
|
Non-controlling
interests
|
|
53.2
|
|
12.6
|
|
|
67.5
|
|
17.1
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
182.4
|
$
|
7.7
|
|
$
|
175.3
|
$
|
54.8
|
|
Non-controlling
interests
|
|
54.8
|
|
12.6
|
|
|
69.1
|
|
17.1
|
QUEBECOR
INC.
|
SEGMENTED
INFORMATION
|
|
(in millions of
Canadian dollars)
|
(unaudited)
|
|
|
|
Three months ended
June 30, 2017
|
|
|
|
|
Telecommuni-
cations
|
|
Media
|
|
Sports
and
Enter-
tainment
|
|
Head
office
and Inter-
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
820.1
|
$
|
231.0
|
$
|
4.0
|
$
|
(23.0)
|
$
|
1,032.1
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
98.3
|
|
69.2
|
|
3.3
|
|
11.2
|
|
182.0
|
Purchase of goods and
services
|
|
333.0
|
|
146.5
|
|
6.2
|
|
(30.9)
|
|
454.8
|
Adjusted operating
income1
|
|
388.8
|
|
15.3
|
|
(5.5)
|
|
(3.3)
|
|
395.3
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
173.3
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
78.9
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
39.1
|
Restructuring of
operations, litigation and other items
|
|
|
|
|
|
|
|
|
|
11.8
|
Gain on sale of
spectrum licences
|
|
|
|
|
|
|
|
|
|
(87.8)
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
$
|
180.0
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
147.2
|
$
|
6.8
|
$
|
0.4
|
$
|
-
|
$
|
154.4
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
24.8
|
|
2.6
|
|
-
|
|
0.6
|
|
28.0
|
|
|
|
Three months ended
June 30, 2016
|
|
|
|
|
Telecommuni-
cations
|
|
Media
|
|
Sports
and
Enter-
tainment
|
|
Head
office
and Inter-
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
780.4
|
$
|
229.2
|
$
|
6.7
|
$
|
(23.8)
|
$
|
992.5
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
96.0
|
|
68.3
|
|
1.3
|
|
15.8
|
|
181.4
|
Purchase of
goods and services
|
|
321.9
|
|
154.0
|
|
9.5
|
|
(34.6)
|
|
450.8
|
Adjusted operating
income1
|
|
362.5
|
|
6.9
|
|
(4.1)
|
|
(5.0)
|
|
360.3
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
161.7
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
80.1
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
56.4
|
Restructuring of
operations, litigation and other items
|
|
|
|
|
|
|
|
|
|
5.6
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
$
|
56.5
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
196.3
|
$
|
5.1
|
$
|
0.6
|
$
|
1.3
|
$
|
203.3
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
26.0
|
|
3.4
|
|
-
|
|
0.9
|
|
30.3
|
|
Six months ended
June 30, 2017
|
|
|
|
|
Telecommuni- cations
|
|
Media
|
|
Sports
and
Enter-
tainment
|
|
Head office and Inter- segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,620.0
|
$
|
441.8
|
$
|
15.4
|
$
|
(48.7)
|
$
|
2,028.5
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
198.9
|
|
133.1
|
|
6.4
|
|
30.7
|
|
369.1
|
Purchase of goods and
services
|
|
655.2
|
|
296.3
|
|
14.6
|
|
(67.1)
|
|
899.0
|
Adjusted operating
income1
|
|
765.9
|
|
12.4
|
|
(5.6)
|
|
(12.3)
|
|
760.4
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
343.1
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
156.0
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
111.5
|
Restructuring of
operations, litigation and other items
|
|
|
|
|
|
|
|
|
|
0.9
|
Gain on sale of
spectrum licences
|
|
|
|
|
|
|
|
|
|
(87.8)
|
Loss on debt
refinancing
|
|
|
|
|
|
|
|
|
|
15.6
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
$
|
221.1
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
309.0
|
$
|
12.8
|
$
|
0.5
|
$
|
0.4
|
$
|
322.7
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
58.4
|
|
3.7
|
|
-
|
|
1.0
|
|
63.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June
30, 2016
|
|
|
|
|
Telecommuni- cations
|
|
Media
|
|
Sports
and
Enter-
tainment
|
|
Head
office and
Inter- segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,552.9
|
$
|
450.3
|
$
|
17.0
|
$
|
(52.3)
|
$
|
1,967.9
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
195.1
|
|
138.0
|
|
5.7
|
|
27.6
|
|
366.4
|
Purchase of goods and
services
|
|
636.6
|
|
308.1
|
|
16.2
|
|
(74.4)
|
|
886.5
|
Adjusted operating
income1
|
|
721.2
|
|
4.2
|
|
(4.9)
|
|
(5.5)
|
|
715.0
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
323.4
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
160.9
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
49.8
|
Restructuring of
operations, litigation and other items
|
|
|
|
|
|
|
|
|
|
13.5
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
$
|
167.4
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
355.9
|
$
|
18.8
|
$
|
1.2
|
$
|
1.6
|
$
|
377.5
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
64.6
|
|
5.2
|
|
0.3
|
|
1.7
|
|
71.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 income before depreciation
and amortization, financial expenses, loss on valuation
and translation of
financial instruments, restructuring of operations, litigation and
other items, gain on sale of spectrum licences, loss on debt
refinancing,
income taxes and
income 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, 2015
|
$
|
325.6
|
$
|
2.3
|
$
|
82.2
|
$
|
(111.2)
|
$
|
353.1
|
$
|
652.0
|
Net income
|
|
-
|
|
-
|
|
79.7
|
|
-
|
|
28.7
|
|
108.4
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
-
|
|
(24.9)
|
|
(11.6)
|
|
(36.5)
|
Dividends or
distributions
|
|
-
|
|
-
|
|
(9.8)
|
|
-
|
|
(9.6)
|
|
(19.4)
|
Repurchase of Class B
Shares
|
|
(0.4)
|
|
-
|
|
(3.2)
|
|
-
|
|
-
|
|
(3.6)
|
Balance as of June
30, 2016
|
|
325.2
|
|
2.3
|
|
148.9
|
|
(136.1)
|
|
360.6
|
|
700.9
|
Net income
|
|
-
|
|
-
|
|
115.0
|
|
-
|
|
25.4
|
|
140.4
|
Other comprehensive
income
|
|
-
|
|
-
|
|
-
|
|
30.0
|
|
15.5
|
|
45.5
|
Dividends or
distributions
|
|
-
|
|
-
|
|
(11.0)
|
|
-
|
|
(9.5)
|
|
(20.5)
|
Repurchase of Class B
Shares
|
|
(1.9)
|
|
-
|
|
(17.2)
|
|
-
|
|
-
|
|
(19.1)
|
Balance as of
December 31, 2016
|
|
323.3
|
|
2.3
|
|
235.7
|
|
(106.1)
|
|
392.0
|
|
847.2
|
Net income
|
|
-
|
|
-
|
|
132.2
|
|
-
|
|
59.2
|
|
191.4
|
Other comprehensive
income
|
|
-
|
|
-
|
|
-
|
|
43.1
|
|
9.9
|
|
53.0
|
Dividends or
distributions
|
|
-
|
|
-
|
|
(12.1)
|
|
-
|
|
(9.5)
|
|
(21.6)
|
Repurchase of Class B
Shares
|
|
(2.7)
|
|
-
|
|
(26.6)
|
|
-
|
|
-
|
|
(29.3)
|
Non-controlling
interests acquisition
|
-
|
|
-
|
|
(26.6)
|
|
(0.4)
|
|
(16.9)
|
|
(43.9)
|
Balance as of June
30, 2017
|
$
|
320.6
|
$
|
2.3
|
$
|
302.6
|
$
|
(63.4)
|
$
|
434.7
|
$
|
996.8
|
QUEBECOR
INC.
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
Three months
ended
|
|
Six months
ended
|
(unaudited)
|
|
June 30
|
|
June 30
|
|
|
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows related
to operating activities
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
$
|
167.3
|
$
|
25.2
|
|
$
|
183.0
|
$
|
108.4
|
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
|
147.4
|
|
135.5
|
|
|
292.0
|
|
275.1
|
|
|
Amortization of
intangible assets
|
|
|
25.9
|
|
26.2
|
|
|
51.1
|
|
48.3
|
|
|
Loss on valuation and
translation of financial instruments
|
|
|
39.1
|
|
56.4
|
|
|
111.5
|
|
49.8
|
|
|
Gain on sale of
spectrum licences
|
|
|
(87.8)
|
|
-
|
|
|
(87.8)
|
|
-
|
|
|
Loss on debt
refinancing
|
|
|
-
|
|
-
|
|
|
15.6
|
|
-
|
|
|
Amortization of
financing costs and long-term debt discount
|
|
|
1.7
|
|
1.8
|
|
|
3.5
|
|
3.4
|
|
|
Deferred income
taxes
|
|
|
4.0
|
|
(9.8)
|
|
|
26.0
|
|
(20.3)
|
|
|
Other
|
|
|
1.9
|
|
0.6
|
|
|
3.2
|
|
2.1
|
|
|
|
|
|
299.5
|
|
235.9
|
|
|
598.1
|
|
466.8
|
|
Net change in
non-cash balances related to operating activities
|
|
|
33.4
|
|
4.7
|
|
|
(117.9)
|
|
(6.7)
|
Cash flows provided
by continuing operating activities
|
|
|
332.9
|
|
240.6
|
|
|
480.2
|
|
460.1
|
Cash flows related
to investing activities
|
|
|
|
|
|
|
|
|
|
|
|
Business
acquisitions
|
|
|
(0.2)
|
|
0.2
|
|
|
(5.8)
|
|
(119.1)
|
|
Business
disposals
|
|
|
-
|
|
-
|
|
|
-
|
|
3.0
|
|
Additions to
property, plant and equipment
|
|
|
(154.4)
|
|
(203.3)
|
|
|
(322.7)
|
|
(377.5)
|
|
Additions to
intangible assets
|
|
|
(28.0)
|
|
(30.3)
|
|
|
(63.1)
|
|
(71.8)
|
|
Proceeds from
disposals of assets
|
|
|
184.9
|
|
1.4
|
|
|
185.3
|
|
1.8
|
|
Other
|
|
|
(0.2)
|
|
0.3
|
|
|
(0.2)
|
|
0.3
|
Cash flows provided
by (used in) continuing investing activities
|
|
|
2.1
|
|
(231.7)
|
|
|
(206.5)
|
|
(563.3)
|
Cash flows related
to financing activities
|
|
|
|
|
|
|
|
|
|
|
|
Net change in bank
indebtedness
|
|
|
(60.0)
|
|
(24.1)
|
|
|
(11.4)
|
|
19.9
|
|
Net change under
revolving facilities
|
|
|
(380.9)
|
|
39.0
|
|
|
(183.5)
|
|
104.9
|
|
Issuance of long-term
debt, net of financing fees
|
|
|
794.5
|
|
-
|
|
|
794.5
|
|
-
|
|
Repayments of
long-term debt
|
|
|
(470.1)
|
|
(7.4)
|
|
|
(653.8)
|
|
(10.0)
|
|
Settlement of hedging
contracts
|
|
|
(3.1)
|
|
(2.2)
|
|
|
(3.2)
|
|
3.6
|
|
Repurchase of Class B
Shares
|
|
|
(16.5)
|
|
(2.3)
|
|
|
(29.3)
|
|
(3.6)
|
|
Dividends
|
|
|
(12.1)
|
|
(9.8)
|
|
|
(12.1)
|
|
(9.8)
|
|
Dividends or
distributions paid to non-controlling interests
|
|
|
(4.8)
|
|
(4.9)
|
|
|
(9.5)
|
|
(9.6)
|
Cash flows (used in)
provided by continuing financing activities
|
|
|
(153.0)
|
|
(11.7)
|
|
|
(108.3)
|
|
95.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents from continuing operations
|
|
|
182.0
|
|
(2.8)
|
|
|
165.4
|
|
(7.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used in
discontinued operations
|
|
|
(0.3)
|
|
-
|
|
|
(0.3)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
|
5.7
|
|
13.6
|
|
|
22.3
|
|
18.6
|
Cash and cash
equivalents at end of period
|
|
$
|
187.4
|
$
|
10.8
|
|
$
|
187.4
|
$
|
10.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents consist of
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
186.0
|
$
|
9.2
|
|
$
|
186.0
|
$
|
9.2
|
|
Cash
equivalents
|
|
|
1.4
|
|
1.6
|
|
|
1.4
|
|
1.6
|
|
|
|
|
$
|
187.4
|
$
|
10.8
|
|
$
|
187.4
|
$
|
10.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and taxes
reflected as operating activities
|
|
|
|
|
|
|
|
|
|
|
|
Cash interest
payments
|
|
$
|
100.9
|
$
|
112.1
|
|
$
|
143.2
|
$
|
154.7
|
|
Cash income tax
payments (net of refunds)
|
|
|
5.2
|
|
29.4
|
|
|
56.4
|
|
63.9
|
QUEBECOR
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
(unaudited)
|
|
June
30
|
|
|
December
31
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
187.4
|
|
$
|
22.3
|
|
Accounts
receivable
|
|
533.4
|
|
|
525.4
|
|
Income
taxes
|
|
21.3
|
|
|
6.9
|
|
Inventories
|
|
191.9
|
|
|
183.3
|
|
Prepaid
expenses
|
|
72.7
|
|
|
53.0
|
|
Assets held for
sale
|
|
187.0
|
|
|
-
|
|
|
|
1,193.7
|
|
|
790.9
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
3,597.6
|
|
|
3,605.1
|
|
Intangible
assets
|
|
943.8
|
|
|
1,224.0
|
|
Goodwill
|
|
2,725.8
|
|
|
2,725.4
|
|
Derivative financial
instruments
|
|
710.8
|
|
|
809.0
|
|
Deferred income
taxes
|
|
67.2
|
|
|
16.0
|
|
Other
assets
|
|
90.9
|
|
|
91.9
|
|
|
|
8,136.1
|
|
|
8,471.4
|
Total
assets
|
$
|
9,329.8
|
|
$
|
9,262.3
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Bank
indebtedness
|
$
|
7.5
|
|
$
|
18.9
|
|
Accounts payable and
accrued charges
|
|
645.1
|
|
|
705.9
|
|
Provisions
|
|
31.7
|
|
|
69.3
|
|
Deferred
revenue
|
|
346.8
|
|
|
339.7
|
|
Income
taxes
|
|
3.6
|
|
|
35.2
|
|
Due on
non-controlling interests acquisition
|
|
43.9
|
|
|
-
|
|
Current portion of
long-term debt
|
|
53.5
|
|
|
51.8
|
|
|
|
1,132.1
|
|
|
1,220.8
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Long-term
debt
|
|
5,450.2
|
|
|
5,616.9
|
|
Derivative financial
instruments
|
|
19.1
|
|
|
0.3
|
|
Convertible
debentures
|
|
500.0
|
|
|
500.0
|
|
Other
liabilities
|
|
614.5
|
|
|
516.2
|
|
Deferred income
taxes
|
|
617.1
|
|
|
560.9
|
|
|
|
7,200.9
|
|
|
7,194.3
|
Equity
|
|
|
|
|
|
|
Capital
stock
|
|
320.6
|
|
|
323.3
|
|
Contributed
surplus
|
|
2.3
|
|
|
2.3
|
|
Retained
earnings
|
|
302.6
|
|
|
235.7
|
|
Accumulated other
comprehensive loss
|
|
(63.4)
|
|
|
(106.1)
|
|
Equity
attributable to shareholders
|
|
562.1
|
|
|
455.2
|
|
Non-controlling
interests
|
|
434.7
|
|
|
392.0
|
|
|
|
996.8
|
|
|
847.2
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
9,329.8
|
|
$
|
9,262.3
|
SOURCE Quebecor