MONTRÉAL, Nov. 9, 2017 /CNW
Telbec/ - Quebecor Inc. ("Quebecor" or the "Corporation")
today reported its consolidated financial results for the third
quarter of 2017. Quebecor consolidates the financial results
of its Quebecor Media Inc. ("Quebecor Media") subsidiary,
in which it holds an 81.53% interest.
Highlights
Third quarter 2017
- Revenues: $1.03 billion in the
third quarter of 2017, up $36.4
million (3.6%) from the same period of 2016.
- Adjusted operating income: 1 $421.1 million, up $31.3
million (8.0%).
- Net income attributable to shareholders: $171.9 million ($1.42 per basic share) in the third quarter of
2017, compared with a net loss attributable to shareholders of
$8.3 million ($0.07 per basic share) in the same period of
2016, a favourable variance of $180.2
million ($1.49 per basic
share).
- Adjusted income from continuing operating
activities:2 $97.2 million
($0.81 per basic share) in the third
quarter of 2017, compared with $83.2
million ($0.68 per basic
share) in the same period of 2016, an increase of $14.0 million ($0.13 per basic share) or 16.8%.
- The Telecommunications segment grew its revenues by
$30.0 million (3.8%) in the third
quarter of 2017. Its adjusted operating income increased by
$15.7 million (4.3%) despite a
$5.6 million unfavourable variance in
one‑time items.
- Videotron Ltd. ("Videotron") significantly increased its
quarterly revenues from mobile telephony ($21.4 million or 16.0%), Internet access
($15.0 million or 6.1%), business
solutions ($2.5 million or 8.8%) and
the club illico over-the-top video service ("club
illico") ($2.3 million or
29.5%).
- Videotron's average monthly revenue per user3
("ARPU") was up $9.88 (6.7%) from
$146.58 in the third quarter of 2016
to $156.46 in the third quarter of
2017.
- Revenue-generating units:4 Net increase of 50,400
(0.9%) in the third quarter of 2017, including 37,000 connections
to the mobile telephony service, 26,900 subscriptions to the cable
Internet access service and 9,800 memberships in club
illico.
- On July 24, 2017, Videotron
realized a $243.1 million gain on the
sale of its seven 2500 MHz and 700 MHZ wireless spectrum licences
outside Québec to Shaw Communications Inc. ("Shaw") for a
$430.0 million cash
consideration.
- The Media segment grew its revenues by $9.9 million (4.5%) and its adjusted operating
income by $11.3 million (32.8%) in
the third quarter of 2017.
- Senior management changes were made at the Corporation's
segments.
-
- Julie Tremblay retired as
President and Chief Executive Officer of TVA Group Inc. ("TVA
Group") and President and Chief Executive Officer of Quebecor's
Media Group.
- France Lauzière was appointed President and Chief Executive
Officer of TVA Group. She also retains her responsibilities as
Chief Content Officer of Quebecor Content.
- Music, newspaper, book publishing, out of home and printing
operations now report to Pierre Karl Péladeau.
- Martin Tremblay was appointed
Chief Operating Officer of Sports and Entertainment Group.
"The Telecommunications segment's excellent performance in the
third quarter of 2017 and the significant improvement in the Media
segment's operating profits were major contributors again to the
solid increase in Quebecor's adjusted operating income and adjusted
income from continuing operating activities," commented Pierre Karl
Péladeau, President and Chief Executive Officer of Quebecor. "Once
again, Videotron's numbers were propelled upwards by its
high-growth products and services, including mobile telephony and
Internet access. The substantial increase in revenues and operating
profits in the Media segment was due to the positive impact of our
programming strategy on advertising and subscription revenues in
the broadcasting business, as well as the notable success of MELS
Studios' operations in the third quarter of 2017. The disposal
of wireless spectrum licences in the second and third quarters
of 2017 generated inflows of $614.2 million and total gains on disposal
of $330.9 million. The Corporation now has access to more
than $2.0 billion in available liquidity, increasing its
financial manoeuvring room to invest in projects for the
future."
"During the 12-month period ended September 30, 2017, Videotron added 143,100
revenue-generating units (2.5%), including 122,600 subscriber
connections to the mobile telephony service (14.1%)," noted
Manon Brouillette, President and
Chief Executive Officer of Videotron. "Our mobile telephony service
just passed the million-connection mark. In the space of 7 years,
Videotron has carved out a place for itself in the telecom
industry's big leagues. It's an indication of the consumer
receptiveness to our offering and the need for more competition in
the mobile telephony market. Videotron also added 26,900 customers
(1.7%) to its cable Internet access service in the third quarter
of 2017, the largest quarterly increase for the service in
five years. Our marketing strategy for the Fibre Hybrid 120
Internet service is still enormously successful and we remain the
only telecommunications provider to offer service of that speed and
power across such a large portion of Québec's territory."
In August 2017, Videotron reached
an agreement with Comcast Corporation to develop an innovative IPTV
solution for the benefit of Videotron customers, based on Comcast
Corporation's XFINITY X1 platform. "Our customers will enjoy a
state-of-the-art television experience," said Manon Brouillette. "They will be able to
navigate a diverse selection of on-demand television shows, movies
and concerts, as well as Web videos, apps and other content, more
simply, quickly and intuitively. Videotron had already earned the
title of Québec's most respected telecommunications company for the
past 12 years. On October 12, 2017, it picked up two more
honours when the Ipsos‑Infopresse 2017 rankings were
released: most forward-thinking and most engaging Québec brand.
And, according to figures released in October 2017 by the
CEFRIO research and innovation centre, 19.0% of Québec households
with Internet access are subscribed to club illico, a
4-percentage-point increase from the previous year. club
illico remains the largest Canadian subscription
video‑on‑demand service in Québec. All these initiatives,
distinctions and achievements are more evidence that Videotron is a
forward‑looking company that is more in tune than ever with its
customers' needs and expectations."
"In the Media segment, the broadcasting business and film and
audiovisual services were responsible for a 32.8% increase in
adjusted operating income," observed France Lauzière, President and
Chief Executive Officer of TVA Group. "The positive results
for the broadcasting business were mainly driven by increased
advertising revenues at TVA Network, which were up year‑over‑year
for the fourth consecutive quarter, and higher subscription
revenues at TVA Sports. TVA Network and the specialty channels also
posted a significant increase in their total market share in the
third quarter of 2017, led by the LCN all-news channel. In film
production and audiovisual services, the increase in the number of
film productions helped boost revenues and adjusted operating
income in the third quarter of 2017. In magazine publishing,
cost reductions yielded by restructuring mitigated the negative
impact of the decline in revenues."
"Thanks to its investments in lines of business with high growth
and profitability potential, combined with initiatives to increase
operational efficiencies and financial flexibility, the Corporation
remains in an excellent position to create shareholder value,"
added Pierre Karl Péladeau.
"In conclusion, I am very pleased that France Lauzière has
agreed to take up the challenge of serving as President and Chief
Executive Officer of TVA Group. In recent years, France and her content team have been
instrumental in the success of TVA Network and the specialty
channels in a difficult environment where news and entertainment
sources are proliferating. I also welcome the appointment of
Martin Tremblay as Chief Operating
Officer of Sports and Entertainment Group. Among other things,
Martin did a masterful job of representing Quebecor during the
design and construction of what would become the Videotron Centre.
In his new role, he will make an even greater contribution to the
segment's development and expansion. Finally, I thank Julie Tremblay from the bottom of my heart for
her immense contribution over the past 25 years, for her
dedication and her ability to motivate her teams for the benefit of
the Corporation," Pierre Karl Péladeau concluded.
Table
1
|
Quebecor third
quarter financial highlights, 2013 to 2017
|
(in millions of
Canadian dollars, except per share data)
|
|
2017
|
2016
|
2015
|
2014
|
2013
|
|
|
|
|
|
|
Revenues
|
$
|
1,034.7
|
$
|
998.3
|
$
|
974.5
|
$
|
890.9
|
$
|
886.4
|
Adjusted operating
income
|
421.1
|
389.8
|
391.4
|
361.8
|
364.2
|
Income (loss) from
continuing operating activities attributable to
shareholders
|
167.1
|
(8.3)
|
87.0
|
9.8
|
12.9
|
Net income (loss)
attributable to shareholders
|
171.9
|
(8.3)
|
85.1
|
45.1
|
(188.8)
|
Adjusted income from
continuing operating
activities
|
97.2
|
83.2
|
74.0
|
58.1
|
58.8
|
Per basic
share:
|
|
|
|
|
|
|
Income (loss) from
continuing operation activities
attributable to shareholders
|
1.38
|
(0.07)
|
0.71
|
0.08
|
0.10
|
|
Net income (loss)
attributable to shareholders
|
1.42
|
(0.07)
|
0.69
|
0.37
|
(1.53)
|
|
Adjusted income from
continuing operating
activities
|
0.81
|
0.68
|
0.60
|
0.47
|
0.47
|
2017/2016 third quarter comparison
Revenues: $1.03 billion, a $36.4 million (3.6%) increase.
- Revenues increased in Telecommunications ($30.0 million or 3.8% of segment revenues),
Media ($9.9 million or 4.5%), and Sports
and Entertainment ($3.7 million
or 47.4%).
Adjusted operating income: $421.1 million, a $31.3 million (8.0%) increase.
- Adjusted operating income increased in Telecommunications
($15.7 million or 4.3% of segment
adjusted operating income), despite a $5.6
million unfavourable variance in one-time items, and in
Media ($11.3 million or 32.8%). There
was a favourable variance at Head Office ($4.8 million) due in part to a favourable
variance in the stock-based compensation charge.
- The adjusted operating loss increased in the Sports and
Entertainment segment ($0.5 million
or 38.5%).
- The change in the fair value of Quebecor Media stock options
resulted in a $0.9 million favourable
variance in the stock‑based compensation charge in the third
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 $4.3 million favourable variance in the
Corporation's stock-based compensation charge in the third quarter
of 2017.
Net income attributable to shareholders: $171.9 million ($1.42 per basic share) in the third quarter of
2017, compared with a net loss attributable to shareholders of
$8.3 million ($0.07 per basic share) in the same period of
2016, a favourable variance of $180.2 million
($1.49 per basic share).
- The favourable variance was due primarily to:
-
- $243.1 million gain on the
sale of spectrum licences recognized in the third quarter of 2017,
including $121.6 million without
any tax consequences;
- $31.3 million increase in
adjusted operating income;
- $7.2 million decrease in
financial expenses;
- $5.9 million favourable
variance in income from discontinued operations.
- Partially offset by:
-
- $48.1 million unfavourable
variance in non-controlling interest;
- $26.3 million increase in
the income tax expense;
- $12.9 million increase in
the depreciation and amortization charge;
- $11.9 million unfavourable
variance in the loss on valuation and translation of financial
instruments, including $11.7 million without any tax
consequences;
- $5.5 million unfavourable
variance in the charge for restructuring of operations, litigation
and other items.
In the third quarters of 2017 and 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 $30.0 million non-cash
goodwill impairment charge, including $1.5 million without any tax consequences,
was recorded in the third quarter of 2017 ($40.1 million without any tax consequences
in the third quarter of 2016). As well, a charge for
impairment of intangible assets totalling $12.4 million, including $3.1 million without any tax consequences,
was recognized in the segment in the third quarter of 2017 (nil in
the third quarter of 2016).
Adjusted income from continuing operating activities:
$97.2 million ($0.81 per basic share) in the third quarter
of 2017, compared with $83.2 million ($0.68 per basic share) in the same period of
2016, an increase of $14.0 million ($0.13 per basic share).
2017/2016 year-to-date comparison
Revenues: $3.06 billion, a $97.0 million (3.3%) increase.
- Revenues increased in Telecommunications ($97.1 million or 4.1% of segment revenues),
Sports and Entertainment ($2.1 million or 8.5%) and Media
($1.4 million or 0.2%).
Adjusted operating income: $1.18 billion, a $76.7 million (6.9%) increase.
- Adjusted operating income increased in Telecommunications
($60.4 million or 5.6% of segment
adjusted operating income) and in Media ($19.5 million or 50.4%).
- There was an unfavourable variance in Sports and Entertainment
($1.2 million or ‑19.4%).
- The change in the fair value of Quebecor Media stock options
resulted in a $1.4 million
unfavourable variance in the stock‑based compensation charge in the
first nine months of 2017 compared with the same period of 2016.
The change in the fair value of Quebecor stock options and the
value of Quebecor stock-price-based share units resulted in a
$3.9 million favourable variance in
the Corporation's stock-based compensation charge in the first nine
months of 2017.
Net income attributable to shareholders: $304.1 million ($2.51 per basic share) in the first nine months
of 2017, compared with $71.4 million ($0.58 per basic share) in the same period of
2016, an increase of $232.7 million ($1.93 per basic share).
- The favourable variance was due primarily to:
-
- $330.9 million gain on the
sale of spectrum licences recognized in the first nine months of
2017, including $165.5 million
without any tax consequences;
- $76.7 million increase in
adjusted operating income;
- $14.3 million favourable
variance in income from discontinued operations;
- $12.1 million decrease in
financial expenses;
- $7.4 million favourable
variance in the charge for restructuring of operations, litigation
and other items.
- Partially offset by:
-
- $78.6 million unfavourable
variance in non-controlling interest;
- $73.6 million unfavourable
variance in the loss on valuation and translation of financial
instruments, including $72.4 million without any tax
consequences;
- $32.6 million increase in
the depreciation and amortization charge;
- $15.6 million unfavourable
variance in the loss on debt refinancing;
- $5.4 million increase in the
income tax expense.
Adjusted income from continuing operating activities:
$251.3 million ($2.08 per basic share) in the first nine months
of 2017, compared with $220.8 million ($1.80 per basic share) in the same period of
2016, an increase of $30.5 million ($0.28 per basic share).
Financial transactions
On November 8, 2017, the Board of
Directors of the Corporation approved, subject to approval of
regulatory filings with the Toronto Stock Exchange ("TSX"), a
two-for-one split of the Corporation's outstanding Class A
Multiple Voting Shares ("Class A Shares") and Class B
Subordinate Voting Shares ("Class B Shares"). Accordingly,
holders of the Corporation's shares will receive an additional
share for each share owned on the record date of
November 15, 2017. Trading in the shares on a split basis
will commence at the opening of business on
November 17, 2017. From Tuesday,
November 14, 2017 through Thursday,
November 16, 2017, the "due bill" trading procedures
of the TSX will apply to the Corporation's shares.
On October 12, 2017, the
Corporation increased its secured revolving credit facility from
$150.0 million
to $300.0 million.
On September 29, 2017, the
Corporation paid down its existing $30.1 million mortgage loan. On the same
day, the Corporation contracted a new $50.0 million mortgage loan at a fixed
interest rate of 3.757% maturing in October 2022.
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 Shares of Quebecor. The Corporation
exercised its cash payment option and paid $95.2 million on
September 6, 2017.
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") 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%.
During the third quarter of 2017, 50,000 Class B Shares were
issued upon exercise of stock options for a cash consideration
of $1.1 million. Following this transaction, the
contributed surplus was increased by $1.2 million and the stock‑based
compensation liability was reduced by the same amount.
Board of Directors
On September 28, 2017,
Andrea C. Martin was named a
Director of Quebecor and Quebecor Media, and a member of the Human
Resources and Corporate Governance committee of the two
corporations.
Dividend
On November 8, 2017, the Board of
Directors of Quebecor declared a quarterly dividend of $0.055 per share on Class A Shares and
Class B Shares (or $0.0275 per share after the
two-for-one stock split of Class A Shares and Class B
Shares, effective November 15, 2017), payable on
December 19, 2017 to shareholders of record at the close
of business on November 24, 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 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 1, 2017. The purchases can be made from
August 15, 2017 to August 14,
2018 at prevailing market prices on the open market through
the facilities of the TSX or other alternative trading
systems. All shares purchased under the bid will be cancelled.
In the first nine months of 2017, the Corporation purchased and
cancelled 1,541,500 Class B Shares for a total cash
consideration of $66.9 million (233,200 Class B
Shares for a total cash consideration of $8.6 million in the first nine months
of 2016). The $61.1 million
excess of the purchase price over the carrying value of the
repurchased Class B Shares was recorded as a reduction in
retained earnings ($7.8 million in the first nine months
of 2016).
On November 9, 2017, the
Corporation announced that, on or around November 10, 2017, it will enter into an
automatic securities purchase plan ("the plan") with a
designated broker under its normal course issuer bid, whereby
shares may be repurchased under the plan at times when such
purchases would otherwise be prohibited pursuant to regulatory
restrictions or self-imposed blackout periods.
Under the plan, before entering a self-imposed blackout period,
the Corporation may, but is not required to, ask the designated
broker to make purchases under the normal course issuer bid. Such
purchases shall be made at the discretion of the designated broker,
within parameters established by the Corporation prior to the
blackout periods. Outside the blackout periods, purchases will be
made at the discretion of the Corporation's management.
The plan received prior approval from the TSX. It will come into
effect on November 13, 2017 and terminate on the same
date as the normal course issuer bid.
Detailed financial information
For a detailed analysis of Quebecor's third 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 third
quarter 2017 results on November 9,
2017, at 10:00 a.m. EST. 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 November 9, 2017 to
February 9, 2018 by dialling 1 877 293‑8133,
conference number 1224032, 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 November 9, 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 (loss) under
International Financial Reporting Standards ("IFRS"), as net income
(loss) 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, impairment of goodwill and other assets,
loss on debt refinancing, income taxes, 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 (loss) 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 (loss) measure used in the condensed consolidated
financial statements
|
(in millions of
Canadian dollars)
|
|
Three months
ended
September 30
|
Nine months ended
September 30
|
|
2017
|
2016
|
2017
|
2016
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss):
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
379.3
|
$
|
363.6
|
$
|
1,145.2
|
$
|
1,084.8
|
|
Media
|
|
45.8
|
|
34.5
|
|
58.2
|
|
38.7
|
|
Sports and
Entertainment
|
|
(1.8)
|
|
(1.3)
|
|
(7.4)
|
|
(6.2)
|
|
Head
Office
|
|
(2.2)
|
|
(7.0)
|
|
(14.5)
|
|
(12.5)
|
|
|
421.1
|
|
389.8
|
|
1,181.5
|
|
1,104.8
|
Depreciation and
amortization
|
|
(175.2)
|
|
(162.3)
|
|
(518.3)
|
|
(485.7)
|
Financial
expenses
|
|
(75.5)
|
|
(82.7)
|
|
(231.5)
|
|
(243.6)
|
Loss on valuation and
translation of financial instruments
|
|
(80.2)
|
|
(68.3)
|
|
(191.7)
|
|
(118.1)
|
Restructuring of
operations, litigation and other items
|
|
(6.7)
|
|
(1.2)
|
|
(7.3)
|
|
(14.7)
|
Gain on sale of
spectrum licences
|
|
243.1
|
|
−
|
|
330.9
|
|
−
|
Impairment of
goodwill and other assets
|
|
(43.5)
|
|
(40.9)
|
|
(43.8)
|
|
(40.9)
|
Loss on debt
refinancing
|
|
−
|
|
−
|
|
(15.6)
|
|
−
|
Income
taxes
|
|
(63.7)
|
|
(37.4)
|
|
(101.8)
|
|
(96.4)
|
Income from
discontinued operations
|
|
5.9
|
|
−
|
|
14.3
|
|
−
|
Net income
(loss)
|
$
|
225.3
|
$
|
(3.0)
|
$
|
416.7
|
$
|
105.4
|
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 on valuation and
translation of financial instruments, restructuring of operations,
litigation and other items, gain on sale of spectrum licences,
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 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 operating activities to net income (loss) attributable
to shareholders 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 (loss) 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
|
|
2017
|
2016
|
2017
|
2016
|
|
|
|
|
|
Adjusted income from
continuing operating activities
|
$
|
97.2
|
$
|
83.2
|
$
|
251.3
|
$
|
220.8
|
Loss on valuation and
translation of financial instruments
|
|
(80.2)
|
|
(68.3)
|
|
(191.7)
|
|
(118.1)
|
Restructuring of
operations, litigation and other items
|
|
(6.7)
|
|
(1.2)
|
|
(7.3)
|
|
(14.7)
|
Gain on sale of
spectrum licences
|
|
243.1
|
|
−
|
|
330.9
|
|
−
|
Impairment of
goodwill and other items
|
|
(43.5)
|
|
(40.9)
|
|
(43.8)
|
|
(40.9)
|
Loss on debt
refinancing
|
|
−
|
|
−
|
|
(15.6)
|
|
−
|
Income taxes related
to adjustments1
|
|
(19.3)
|
|
0.5
|
|
13.1
|
|
3.7
|
Net income
attributable to non‑controlling interest related to
adjustments
|
|
(23.5)
|
|
18.4
|
|
(44.4)
|
|
20.6
|
Discontinued
operations
|
|
4.8
|
|
−
|
|
11.6
|
|
−
|
Net income (loss)
attributable to shareholders
|
$
|
171.9
|
$
|
(8.3)
|
$
|
304.1
|
$
|
71.4
|
|
|
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.
|
|
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.
|
QUEBECOR
INC.
|
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
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,034.7
|
$
|
998.3
|
|
$
|
3,063.2
|
$
|
2,966.2
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
170.7
|
|
169.8
|
|
|
539.8
|
|
536.2
|
Purchase of goods and
services
|
|
442.9
|
|
438.7
|
|
|
1,341.9
|
|
1,325.2
|
Depreciation and
amortization
|
|
175.2
|
|
162.3
|
|
|
518.3
|
|
485.7
|
Financial
expenses
|
|
75.5
|
|
82.7
|
|
|
231.5
|
|
243.6
|
Loss on valuation and
translation of financial instruments
|
|
80.2
|
|
68.3
|
|
|
191.7
|
|
118.1
|
Restructuring of
operations, litigation and other items
|
|
6.7
|
|
1.2
|
|
|
7.3
|
|
14.7
|
Gain on sale of
spectrum licences
|
|
(243.1)
|
|
-
|
|
|
(330.9)
|
|
-
|
Impairment of
goodwill and other assets
|
|
43.5
|
|
40.9
|
|
|
43.8
|
|
40.9
|
Loss on debt
refinancing
|
|
-
|
|
-
|
|
|
15.6
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
283.1
|
|
34.4
|
|
|
504.2
|
|
201.8
|
|
|
|
|
|
|
|
|
|
|
Income taxes
(recovery):
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
2.4
|
|
51.2
|
|
|
14.5
|
|
130.5
|
|
Deferred
|
|
61.3
|
|
(13.8)
|
|
|
87.3
|
|
(34.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
63.7
|
|
37.4
|
|
|
101.8
|
|
96.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
219.4
|
|
(3.0)
|
|
|
402.4
|
|
105.4
|
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations
|
|
5.9
|
|
-
|
|
|
14.3
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
225.3
|
$
|
(3.0)
|
|
$
|
416.7
|
$
|
105.4
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
167.1
|
$
|
(8.3)
|
|
$
|
292.5
|
$
|
71.4
|
|
Non-controlling
interests
|
|
52.3
|
|
5.3
|
|
|
109.9
|
|
34.0
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
171.9
|
$
|
(8.3)
|
|
$
|
304.1
|
$
|
71.4
|
|
Non-controlling
interests
|
|
53.4
|
|
5.3
|
|
|
112.6
|
|
34.0
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to shareholders
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted:
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations
|
$
|
1.38
|
$
|
(0.07)
|
|
$
|
2.41
|
$
|
0.58
|
|
|
From discontinued
operations
|
|
0.04
|
|
-
|
|
|
0.10
|
|
-
|
|
|
Net income
(loss)
|
|
1.42
|
|
(0.07)
|
|
|
2.51
|
|
0.58
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (in millions)
|
|
120.7
|
|
122.3
|
|
|
121.2
|
|
122.4
|
Weighted average
number of diluted shares (in millions)
|
|
120.9
|
|
122.3
|
|
|
121.4
|
|
122.8
|
QUEBECOR
INC.
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
Three months
ended
|
|
Nine months
ended
|
(unaudited)
|
September
30
|
|
September
30
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
219.4
|
$
|
(3.0)
|
|
$
|
402.4
|
$
|
105.4
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss) from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be
reclassified to income:
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow
hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on
valuation of derivative financial instruments
|
|
35.8
|
|
(20.7)
|
|
|
63.8
|
|
25.5
|
|
|
|
Deferred income
taxes
|
|
0.5
|
|
(1.6)
|
|
|
25.5
|
|
17.6
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
36.3
|
|
(9.1)
|
|
|
89.3
|
|
(45.6)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) from continuing operations
|
|
255.7
|
|
(12.1)
|
|
|
491.7
|
|
59.8
|
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations
|
|
5.9
|
|
-
|
|
|
14.3
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss)
|
$
|
261.6
|
$
|
(12.1)
|
|
$
|
506.0
|
$
|
59.8
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) from continuing operations attributable
to
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
196.6
|
$
|
(16.7)
|
|
$
|
365.1
|
$
|
38.1
|
|
|
Non-controlling
interests
|
|
59.1
|
|
4.6
|
|
|
126.6
|
|
21.7
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) attributable to
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
201.4
|
$
|
(16.7)
|
|
$
|
376.7
|
$
|
38.1
|
|
|
Non-controlling
interests
|
|
60.2
|
|
4.6
|
|
|
129.3
|
|
21.7
|
QUEBECOR
INC.
|
SEGMENTED
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and
Inter-
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
823.7
|
$
|
231.6
|
$
|
11.5
|
$
|
(32.1)
|
$
|
1,034.7
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
92.7
|
|
62.1
|
|
3.6
|
|
12.3
|
|
170.7
|
Purchase of goods and
services
|
|
351.7
|
|
123.7
|
|
9.7
|
|
(42.2)
|
|
442.9
|
Adjusted operating
income1
|
|
379.3
|
|
45.8
|
|
(1.8)
|
|
(2.2)
|
|
421.1
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
175.2
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
75.5
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
80.2
|
Restructuring of
operations, litigation and other items
|
|
|
|
|
|
|
|
|
|
6.7
|
Gain on sale of
spectrum licences
|
|
|
|
|
|
|
|
|
|
(243.1)
|
Impairment of
goodwill and other assets
|
|
|
|
|
|
|
|
|
|
43.5
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
$
|
283.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
132.9
|
$
|
9.4
|
$
|
0.2
|
$
|
-
|
$
|
142.5
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
28.6
|
|
1.4
|
|
-
|
|
0.5
|
|
30.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and Inter-
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
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, litigation 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and
Inter-
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
2,443.7
|
$
|
673.4
|
$
|
26.9
|
$
|
(80.8)
|
$
|
3,063.2
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
291.6
|
|
195.2
|
|
10.0
|
|
43.0
|
|
539.8
|
Purchase of goods and
services
|
|
1,006.9
|
|
420.0
|
|
24.3
|
|
(109.3)
|
|
1,341.9
|
Adjusted operating
income1
|
|
1,145.2
|
|
58.2
|
|
(7.4)
|
|
(14.5)
|
|
1,181.5
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
518.3
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
231.5
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
191.7
|
Restructuring of
operations, litigation and other items
|
|
|
|
|
|
|
|
|
|
7.3
|
Gain on sale of
spectrum licences
|
|
|
|
|
|
|
|
|
|
(330.9)
|
Impairment of
goodwill and other assets
|
|
|
|
|
|
|
|
|
|
43.8
|
Loss on debt
refinancing
|
|
|
|
|
|
|
|
|
|
15.6
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
$
|
504.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
441.9
|
$
|
22.2
|
$
|
0.7
|
$
|
0.4
|
$
|
465.2
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
87.0
|
|
5.1
|
|
-
|
|
1.5
|
|
93.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and Inter-
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
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, litigation 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
|
|
|
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 (loss) 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, impairment of
goodwill and other assets,
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
|
|
-
|
|
-
|
|
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
|
Net income
|
|
-
|
|
-
|
|
123.3
|
|
-
|
|
20.1
|
|
143.4
|
Other comprehensive
income
|
|
-
|
|
-
|
|
-
|
|
38.4
|
|
16.2
|
|
54.6
|
Dividends or
distributions
|
|
-
|
|
-
|
|
(5.5)
|
|
-
|
|
(4.8)
|
|
(10.3)
|
Repurchase of Class B
Shares
|
|
(1.5)
|
|
-
|
|
(12.6)
|
|
-
|
|
-
|
|
(14.1)
|
Balance as of
December 31, 2016
|
|
323.3
|
|
2.3
|
|
235.7
|
|
(106.1)
|
|
392.0
|
|
847.2
|
Net income
|
|
-
|
|
-
|
|
304.1
|
|
-
|
|
112.6
|
|
416.7
|
Other comprehensive
income
|
|
-
|
|
-
|
|
-
|
|
72.6
|
|
16.7
|
|
89.3
|
Issuance of Class B
Shares
|
|
1.1
|
|
1.2
|
|
-
|
|
-
|
|
-
|
|
2.3
|
Dividends or
distributions
|
|
-
|
|
-
|
|
(18.8)
|
|
-
|
|
(14.1)
|
|
(32.9)
|
Repurchase of Class B
Shares
|
|
(5.8)
|
|
-
|
|
(61.1)
|
|
-
|
|
-
|
|
(66.9)
|
Non-controlling
interests acquisition
|
|
-
|
|
-
|
|
(26.6)
|
|
(0.4)
|
|
(16.9)
|
|
(43.9)
|
Balance as of
September 30, 2017
|
$
|
318.6
|
$
|
3.5
|
$
|
433.3
|
$
|
(33.9)
|
$
|
490.3
|
$
|
1,211.8
|
QUEBECOR
INC.
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
Three months
ended
|
|
Nine months
ended
|
(unaudited)
|
September
30
|
|
September
30
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows related
to operating activities
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
219.4
|
$
|
(3.0)
|
|
$
|
402.4
|
$
|
105.4
|
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
148.5
|
|
138.5
|
|
|
440.5
|
|
413.6
|
|
|
Amortization of
intangible assets
|
|
26.7
|
|
23.8
|
|
|
77.8
|
|
72.1
|
|
|
Loss on valuation and
translation of financial instruments
|
|
80.2
|
|
68.3
|
|
|
191.7
|
|
118.1
|
|
|
Gain on sale of
spectrum licences
|
|
(243.1)
|
|
-
|
|
|
(330.9)
|
|
-
|
|
|
Impairment of
goodwill and other assets
|
|
43.5
|
|
40.9
|
|
|
43.8
|
|
40.9
|
|
|
Loss on debt
refinancing
|
|
-
|
|
-
|
|
|
15.6
|
|
-
|
|
|
Amortization of
financing costs and long-term debt discount
|
|
1.8
|
|
1.8
|
|
|
5.3
|
|
5.2
|
|
|
Deferred income
taxes
|
|
61.3
|
|
(13.8)
|
|
|
87.3
|
|
(34.1)
|
|
|
Other
|
|
(0.4)
|
|
(0.2)
|
|
|
2.5
|
|
1.9
|
|
|
337.9
|
|
256.3
|
|
|
936.0
|
|
723.1
|
|
Net change in
non-cash balances related to operating activities
|
|
44.6
|
|
85.8
|
|
|
(73.3)
|
|
79.1
|
Cash flows provided
by continuing operating activities
|
|
382.5
|
|
342.1
|
|
|
862.7
|
|
802.2
|
Cash flows related
to investing activities
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests acquisition
|
|
(43.9)
|
|
-
|
|
|
(43.9)
|
|
-
|
|
Business
acquisitions
|
|
-
|
|
-
|
|
|
(5.8)
|
|
(119.1)
|
|
Business
disposals
|
|
-
|
|
-
|
|
|
-
|
|
3.0
|
|
Additions to
property, plant and equipment
|
|
(142.5)
|
|
(163.8)
|
|
|
(465.2)
|
|
(541.3)
|
|
Additions to
intangible assets
|
|
(30.5)
|
|
(32.4)
|
|
|
(93.6)
|
|
(104.2)
|
|
Proceeds from
disposals of assets
|
|
432.7
|
|
1.3
|
|
|
618.0
|
|
3.1
|
|
Other
|
|
(4.5)
|
|
13.0
|
|
|
(4.7)
|
|
13.3
|
Cash flows provided
by (used in) continuing investing activities
|
|
211.3
|
|
(181.9)
|
|
|
4.8
|
|
(745.2)
|
Cash flows related
to financing activities
|
|
|
|
|
|
|
|
|
|
|
Net change in bank
indebtedness
|
|
(7.5)
|
|
(21.5)
|
|
|
(18.9)
|
|
(1.6)
|
|
Net change under
revolving credit facilities
|
|
92.9
|
|
(99.3)
|
|
|
(90.6)
|
|
5.6
|
|
Issuance of long-term
debt, net of financing fees
|
|
49.8
|
|
-
|
|
|
844.3
|
|
-
|
|
Repayment of
long-term debt
|
|
(32.7)
|
|
(2.2)
|
|
|
(686.5)
|
|
(12.2)
|
|
Repayment of
convertible debentures
|
|
(95.2)
|
|
-
|
|
|
(95.2)
|
|
-
|
|
Settlement of hedging
contracts
|
|
-
|
|
-
|
|
|
(3.2)
|
|
3.6
|
|
Issuance of Class B
Shares
|
|
1.1
|
|
-
|
|
|
1.1
|
|
-
|
|
Repurchase of Class B
Shares
|
|
(37.6)
|
|
(5.0)
|
|
|
(66.9)
|
|
(8.6)
|
|
Dividends
|
|
(6.7)
|
|
(5.5)
|
|
|
(18.8)
|
|
(15.3)
|
|
Dividends or
distributions paid to non-controlling interests
|
|
(4.6)
|
|
(4.7)
|
|
|
(14.1)
|
|
(14.3)
|
Cash flows used in
continuing financing activities
|
|
(40.5)
|
|
(138.2)
|
|
|
(148.8)
|
|
(42.8)
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents from continuing operations
|
|
553.3
|
|
22.0
|
|
|
718.7
|
|
14.2
|
|
|
|
|
|
|
|
|
|
|
Cash flows used in
discontinued operations
|
|
(0.3)
|
|
-
|
|
|
(0.6)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
187.4
|
|
10.8
|
|
|
22.3
|
|
18.6
|
Cash and cash
equivalents at end of period
|
$
|
740.4
|
$
|
32.8
|
|
$
|
740.4
|
$
|
32.8
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents consist of
|
|
|
|
|
|
|
|
|
|
|
Cash
|
$
|
738.7
|
$
|
31.3
|
|
$
|
738.7
|
$
|
31.3
|
|
Cash
equivalents
|
|
1.7
|
|
1.5
|
|
|
1.7
|
|
1.5
|
|
$
|
740.4
|
$
|
32.8
|
|
$
|
740.4
|
$
|
32.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and taxes
reflected as operating activities
|
|
|
|
|
|
|
|
|
|
|
Cash interest
payments
|
$
|
40.8
|
$
|
42.3
|
|
$
|
184.0
|
$
|
197.0
|
|
Cash income tax
payments (net of refunds)
|
|
1.1
|
|
14.1
|
|
|
57.5
|
|
78.0
|
QUEBECOR
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
(unaudited)
|
|
September
30
|
|
|
December
31
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
740.4
|
|
$
|
22.3
|
|
Accounts
receivable
|
|
543.0
|
|
|
525.4
|
|
Income
taxes
|
|
25.8
|
|
|
6.9
|
|
Inventories
|
|
196.9
|
|
|
183.3
|
|
Prepaid
expenses
|
|
65.5
|
|
|
53.0
|
|
|
1,571.6
|
|
|
790.9
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
3,589.5
|
|
|
3,605.1
|
|
Intangible
assets
|
|
933.9
|
|
|
1,224.0
|
|
Goodwill
|
|
2,695.8
|
|
|
2,725.4
|
|
Derivative financial
instruments
|
|
620.6
|
|
|
809.0
|
|
Deferred income
taxes
|
|
36.0
|
|
|
16.0
|
|
Other
assets
|
|
91.4
|
|
|
91.9
|
|
|
7,967.2
|
|
|
8,471.4
|
Total
assets
|
$
|
9,538.8
|
|
$
|
9,262.3
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Bank
indebtedness
|
$
|
-
|
|
$
|
18.9
|
|
Accounts payable and
accrued charges
|
|
687.4
|
|
|
705.9
|
|
Provisions
|
|
24.1
|
|
|
69.3
|
|
Deferred
revenue
|
|
355.7
|
|
|
339.7
|
|
Income
taxes
|
|
13.6
|
|
|
35.2
|
|
Current portion of
long-term debt
|
|
25.2
|
|
|
51.8
|
|
|
1,106.0
|
|
|
1,220.8
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Long-term
debt
|
|
5,432.8
|
|
|
5,616.9
|
|
Derivative financial
instruments
|
|
51.7
|
|
|
0.3
|
|
Convertible
debentures
|
|
450.0
|
|
|
500.0
|
|
Other
liabilities
|
|
645.9
|
|
|
516.2
|
|
Deferred income
taxes
|
|
640.6
|
|
|
560.9
|
|
|
7,221.0
|
|
|
7,194.3
|
Equity
|
|
|
|
|
|
|
Capital
stock
|
|
318.6
|
|
|
323.3
|
|
Contributed
surplus
|
|
3.5
|
|
|
2.3
|
|
Retained
earnings
|
|
433.3
|
|
|
235.7
|
|
Accumulated other
comprehensive loss
|
|
(33.9)
|
|
|
(106.1)
|
|
Equity
attributable to shareholders
|
|
721.5
|
|
|
455.2
|
|
Non-controlling
interests
|
|
490.3
|
|
|
392.0
|
|
|
1,211.8
|
|
|
847.2
|
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
9,538.8
|
|
$
|
9,262.3
|
SOURCE Quebecor