MONTRÉAL, May 14, 2020 /CNW
Telbec/ - Quebecor Inc. ("Quebecor" or the "Corporation") today
reported its consolidated financial results for the first quarter
of 2020. Quebecor consolidates the financial results of its wholly
owned Quebecor Media Inc. ("Quebecor Media") subsidiary.
The Corporation has reviewed the nature and definition of one of
its non standardized financial measures. As a result, "cash flows
from segment operations" has been abandoned and replaced by the new
"cash flows from operations" metric. This metric will henceforth be
used to measure the cash flows generated by the operations of all
the business segments, on a consolidated basis, in addition to the
cash flows from operations generated by each segment. See the
definition of this new measure under "Definitions."
First quarter 2020 highlights
- Revenues: $1.06 billion, up
$28.2 million (2.7%) from the same
period of 2019.
- Adjusted EBITDA1 $436.7
million, up $16.0 million
(3.8%).
- Net income attributable to shareholders: $131.6 million ($0.52 per basic share) in the first quarter of
2020, compared with $189.0 million
($0.74 per basic share) in the same
period of 2019, a decrease of $57.4
million ($0.22 per basic
share), due in part to a $97.2
million gain on disposal of the activities of 4Degrees
Colocation Inc. recorded in the first quarter of 2019.
- Adjusted income from continuing operating
activities2: $111.5
million ($0.44 per basic
share) in the first quarter of 2020 compared with $111.4 million ($0.44 per basic share) in the same period of
2019.
- Cash flows from operations: $295.0
million, up $18.7 million
(6.8%).
- The Telecommunications and Media segments grew their revenues
by $34.0 million (4.0%) and
$2.1 million (1.2%), and their
adjusted EBITDA by $12.5 million
(3.0%) and $2.9 million respectively
in the first quarter of 2020.
- Videotron Ltd. ("Videotron") significantly increased its
revenues from customer equipment sales ($26.9 million or 54.7%) and mobile telephony
($18.8 million or 13.3%) in the first
quarter of 2020.
- Videotron's total average billing per unit4
("ABPU") was $49.87 in the first
quarter of 2020 compared with $49.47
in the same period of 2019, a $0.40
(0.8%) increase. Mobile ABPU was $51.60 in the first quarter of 2020 compared with
$52.50 in the same period of 2019, a
$0.90 (-1.7%) decrease due in part to
the popularity of bring your own device ("BYOD") plans.
- There was a net increase of 14,200 revenue generating
units5 ("RGUs") (0.2%) in the first quarter of
2020, including 39,300 connections (3.0%) to the mobile telephony
service, 12,400 subscriptions (2.7%) to the Club illico over the
top video service ("Club illico") and 8,600 subscriptions (0.5%) to
the cable Internet access service.
- In the first quarter of 2020, Videotron announced the official
launch of its mobile network in Rimouski after several months of build out and
testing in the Lower St. Lawrence region.
___________________________
|
1
|
See "Adjusted EBITDA"
under "Definitions."
|
2
|
See "Adjusted income
from continuing operating activities" under
"Definitions."
|
3
|
See "Cash flows from
operations" under "Definitions."
|
4
|
See "Key performance
indicators" under "Definitions."
|
5
|
See "Key performance
indicators" under "Definitions."
|
"At a time when the world is facing an unprecedented situation
because of the COVID 19 pandemic, Quebecor has adapted quickly and
continues providing Quebecers with essential telecommunications and
news media services," commented Pierre Karl Péladeau, President and
Chief Executive Officer of Quebecor. "We have taken a series of
steps to help our customers stay connected, while protecting the
health and safety of our employees, customers and the public. For
example, we were the first to temporarily remove data caps on all
Internet plans. To keep Quebecers informed of the latest
developments in the crisis at all times, we have also unscrambled
the LCN 24 hour news channel.
"The Corporation's adjusted EBITDA and cash flows from
operations increased by 3.8% and 6.8% respectively in the first
quarter of 2020. Despite the significant adverse impacts in some of
our business segments since the beginning of the crisis, our
telecommunications business remains very solid and is generating
the majority of our cash flows. This important revenue stream,
combined with our prudent management of operating costs and our
strong balance sheet, with available liquidity of $1.8 billion, puts us in a strong position and
enables us to support our hardest hit business units and our
employees during this difficult period. To demonstrate our loyalty
and gratitude to our employees, we have set up a $500,000 emergency fund to provide immediate
financial relief to the Sports and Entertainment segment's
employees, contributors and freelancers, who were the first to be
affected by this situation. We have also set up a supplemental
benefits program that tops up the government assistance programs to
pay up to 95% of salary in some cases and provide increased
security for all affected employees," Pierre Karl Péladeau
added.
"Videotron's network has successfully absorbed the substantial
increase in traffic since the beginning of the crisis caused, among
other things, by our customers' growing communication and
entertainment needs and the rise in telework, which has become
practically essential to keep still operating businesses running,"
noted Jean François Pruneau, President and Chief Executive Officer
of Videotron. "Our proactive management of network capacity, based
on anticipating increases in data usage, has afforded us
manoeuvring room during this period of heavy traffic. We have also
stepped up our investment program in order to maintain that
flexibility. The flawless performance of our network at this time
clearly demonstrates the importance and soundness of our
infrastructure-based investment model. It would be dangerous for it
to be undermined.
"Even though lockdown measures slowed installations at the
beginning of the crisis, our Helix entertainment and home
management platform has been a phenomenal success, accounting for
more than 230,000 RGUs since its launch in August 2019. For its part, Fizz, our 100% digital
mobile and Internet brand, has kept up a pace of growth that is
remarkable, particularly in this period of crisis. These results
clearly demonstrate that our platforms meet our customers' changing
needs. The resounding success of our mobile telephony services
continued, as evidenced by the increase of 39,300 subscriber
connections in the first quarter of 2020 and 176,200 (14.8%) during
the 12 month period ended March 31,
2020.
"Innovation will always be at the heart of Videotron's strategy
and we are constantly striving to provide the best possible
customer experience to our growing subscriber base. We are pleased
that we are now able to serve Rimouski residents as well, and to offer them
the best products and services available on the market," Jean
François Pruneau said.
"I am also delighted by the distinctions Videotron received in
the first quarter of 2020, including first place in the Technology
and Telecommunications category in the BIP Recherche ICO awards for
the most trusted organizations of the past decade, as determined by
the Institut de la confiance dans les organisations (ICO).
Videotron was also on Mediacorp Canada Inc.'s 2020 list of
Montréal's Top Employers," Jean François Pruneau concluded.
"TVA Group Inc. ("TVA Group") posted a $4.5 million favourable variance in consolidated
adjusted EBITDA in the first quarter of 2020," noted France
Lauzière, President and Chief Executive Officer of TVA Group.
"While the COVID 19 pandemic and the measures to prevent its spread
have caused a significant slowdown in a number of activities, the
impact of the crisis in the first quarter of 2020 was limited.
"TVA Group's total television market share increased
significantly, by 2.1 points, to 40.4%. With a 1.1 point gain, TVA
Network continued growing its audience, as did the specialty
channels, which posted a 1.0 point increase, driven by a 2.2 point
surge by LCN, which rose to a record 6.9% market share and remained
the most watched specialty channel in Quebec," concluded France Lauzière.
"In May 2020, in line with our
longstanding commitment to supporting Québec culture, we launched
our new QUB musique streaming platform, designed and produced
entirely in Québec and focused on Québec artists," said Pierre Karl
Péladeau. "QUB musique can be accessed via a mobile app or on the
Web. It offers an impressive world class catalogue of 50 million
tracks, available on demand, as well as hundreds of playlists
designed to meet Quebecers' tastes and needs. In this time of
crisis, it is more important than ever to support our artists, and
there is no better way than to listen to Québec music. That is why
we moved up the launch of QUB musique. We also plan to give
Videotron's mobile telephony customers the full benefit of the
service by offering them an attractive reduction on the
subscription fee.
"Our roots in Québec society go deep. We are acutely aware of
the myriad social and economic challenges Quebecers face today. To
reduce the isolation of youths with difficulties and seniors in
long term care facilities, we donated 1,000 smartphones with
unlimited data plans. In partnership with the Government of Québec
and Télé-Québec, we also broadcast the television event Une
chance qu'on s'a on TVA channel, featuring a roster of artists
who came together to raise $2.0
million for organizations working with seniors and victims
of domestic violence. We also awarded four Pierre Péladeau
Bursaries: $100,000 for the
Boomerang project, which fights food waste, $50,000 for the Eyful project, which
is developing glasses for people with visual impairments,
$35,000 for the Aleo VR
project, a virtual reality pedagogical tool, and $15,000 for the Évéa project, which leases
second hand clothing for babies and small children. Finally, in
association with the Fondation Chopin Péladeau, we are proud to
contribute to important initiatives such as La tablée des
chefs, which is helping Québec food banks at a time when they
are in greater need than ever. All these efforts are in keeping
with Quebecor's longstanding philosophy of important social
engagement, true to the legacy of our founder Pierre Péladeau,"
Pierre Karl Péladeau said.
"As long as the uncertainty about the full extent and duration
of the pandemic continues, we will monitor the impact of the crisis
on an ongoing basis and take appropriate action, as needed. As
well, as a major corporate citizen and Québec leader in
telecommunications, news and entertainment, we will continue to
play our role by supporting our employees, customers and business
partners, and in making sure Quebecers continue to receive all the
services they need. I sincerely thank our employees, and especially
our customer facing staff and I salute their dedication to
Quebecers at this difficult time," Pierre Karl Péladeau
concluded.
COVID-19 crisis
The COVID-19 pandemic is having a significant impact on the
economic environment in Canada and
around the world. Since March 2020,
in order to limit the spread of the virus, the Government of Québec
has imposed a number of restrictions and special preventive
measures, including the suspension of business activities deemed
non essential. Those measures have curtailed the operations of many
of Quebecor's business partners and have led to a significant
slowdown in some of Quebecor's segments. Among other impacts, the
COVID-19 virus and the measures to prevent its spread have led to a
significant reduction in volume at Videotron retail outlets and
delays in client migration to its new Helix entertainment and home
management platform; lower advertising revenues, significant
decrease of sporting events broadcast by the TVA Sports channel,
and reduced film and audiovisual content activity in the Media
segment; and delays or cancellations of shows and events, and
interruption of music and book distribution activities in the
Sports and Entertainment segment. Quebecor is however continuing to
provide essential telecommunications and news services during this
health crisis, while safeguarding the health and safety of its
employees and the public. Videotron has also taken a number of
important initiatives to make life easier for its customers, such
as temporarily suspending data limits (overage charges) on all
residential and business Internet plans, providing additional
services, and suspending certain fees. As well, TVA Group has
unscrambled the LCN all news channel to give Quebecers real time
access to all developments concerning the crisis, and it also
continues to broadcast television content on its distribution
channels. Because of the measures put in place by the Government of
Québec to limit the spread of the virus, approximately 10% of
Quebecor's workforce are now receiving benefits under the
Corporation's supplemental assistance program, which tops up the
Canada Emergency Wage Subsidy or
Canada Emergency Response Benefit,
as the case may be.
Financial tables
Table
1
|
Quebecor first
quarter financial highlights, 2016 to 2020
|
(in millions of
Canadian dollars, except per share data)
|
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,055.5
|
$
|
1,027.3
|
$
|
1,002.0
|
$
|
995.5
|
$
|
978.8
|
Adjusted
EBITDA
|
|
436.7
|
|
420.7
|
|
415.9
|
|
378.7
|
|
369.0
|
Income from
continuing operating activities
attributable to shareholders
|
|
130.3
|
|
91.5
|
|
56.6
|
|
2.6
|
|
72.8
|
Net income
attributable to shareholders
|
|
131.6
|
|
189.0
|
|
57.1
|
|
3.8
|
|
72.6
|
Adjusted income from
continuing operating
activities
|
|
111.5
|
|
111.4
|
|
89.5
|
|
73.7
|
|
70.6
|
Per basic
share:
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operating activities attributable
to shareholders
|
|
0.51
|
|
0.36
|
|
0.24
|
|
–
|
|
0.30
|
Net income
attributable to shareholders
|
|
0.52
|
|
0.74
|
|
0.24
|
|
0.01
|
|
0.30
|
Adjusted income from
continuing operating
activities
|
|
0.44
|
|
0.44
|
|
0.38
|
|
0.30
|
|
0.29
|
Table
2
|
Cash flows from
operations for the past eight quarters
|
(in millions of
Canadian dollars)
|
|
|
Q1‑2020
|
|
Q4‑2019
|
|
Q3‑2019
|
|
Q2‑2019
|
|
Q1‑2019
|
|
Q4‑2018
|
|
Q3‑2018
|
|
Q2‑2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
302.5
|
$
|
248.5
|
$
|
306.5
|
$
|
281.8
|
$
|
288.5
|
$
|
169.4
|
$
|
251.4
|
$
|
279.5
|
Media
|
|
(3.6)
|
|
16.9
|
|
17.8
|
|
(3.0)
|
|
(6.9)
|
|
14.5
|
|
21.2
|
|
(6.5)
|
Sports and
Entertainment
|
|
(4.7)
|
|
1.8
|
|
6.0
|
|
(3.1)
|
|
(2.3)
|
|
1.7
|
|
7.4
|
|
(1.6)
|
Head
Office
|
|
0.8
|
|
(6.7)
|
|
2.1
|
|
(0.7)
|
|
(3.0)
|
|
(5.3)
|
|
−
|
|
(9.1)
|
Total
|
$
|
295.0
|
$
|
260.5
|
$
|
332.4
|
$
|
275.0
|
$
|
276.3
|
$
|
180.3
|
$
|
280.0
|
$
|
262.3
|
2020/2019 first quarter comparison
Revenues: $1.06 billion, a $28.2 million (2.7%) increase.
- Revenues increased in Telecommunications ($34.0 million or 4.0% of segment revenues) and in
Media ($2.1 million or 1.2%).
- Revenues decreased in Sports and Entertainment ($5.6 million or ‑13.9%).
Adjusted EBITDA: $436.7 million, a $16.0 million (3.8%) increase.
- Adjusted EBITDA increased in Telecommunications ($12.5 million or 3.0% of segment adjusted EBITDA)
and in Media ($2.9 million).
- There was a favourable variance at Head Office ($3.7 million) due to a decrease in the
stock‑based compensation charge.
- Adjusted EBITDA decreased in Sports and Entertainment
($3.1 million).
- The change in the fair value of Quebecor Media stock
options resulted in a $2.9 million favourable variance in the
stock‑based compensation charge in the first quarter of 2020
compared with the same period of 2019. The change in the fair
value of Quebecor stock options and in the value of Quebecor
stock‑price‑based share units resulted in a $5.5 million favourable variance in the
Corporation's stock‑based compensation charge in the first quarter
of 2020.
Net income attributable to shareholders: $131.6 million ($0.52 per basic share) in the first quarter
of 2020, compared with $189.0 million ($0.74 per basic share) in the same period of
2019, a decrease of $57.4 million ($0.22 per basic share).
- The main unfavourable variances were:
-
- $96.2 million decrease in
income from discontinued operations;
- $9.6 million increase in the
depreciation and amortization charge;
- $5.3 million increase in
financial expenses;
- $2.6 million increase in the
income tax expense.
- The main favourable variances were:
-
- $37.6 million favourable
variance related to gains on valuation and translation of financial
instruments, including $36.1 million without any tax
consequences;
- $16.0 million increase in
adjusted EBITDA;
- $4.6 million favourable
variance in the charge for restructuring of operations and other
items.
Adjusted income from continuing operating activities:
$111.5 million ($0.44 per basic share) in the first quarter
of 2020 compared with $111.4 million ($0.44 per basic share) in the same period
of 2019.
Cash flows from operations: $295.0 million, an $18.7 million (6.8%) increase due mainly to
the increase in adjusted EBITDA.
Cash flows from continuing operating activities:
$321.6 million, a $141.1 million increase due primarily to the
favourable net change in non‑cash balances related to operating
activities.
Financial transactions
- On February 21, 2020, TVA Group
amended its secured revolving credit facility to extend its term
from February 2020 to February 2021, lower the limit from $150.0 million to $75.0
million, and amend certain terms and conditions of the
facility.
Normal course issuer bid
On August 7, 2019, the Corporation
filed a normal course issuer bid for a maximum of
1,000,000 Class A Multiple Voting Shares
("Class A Shares"), representing approximately 1.3% of
issued and outstanding Class A Shares, and for a maximum
of 4,000,000 Class B Subordinate Voting Shares
("Class B Shares"), representing approximately 2.2% of issued and
outstanding Class B Shares as of August 1, 2019. The
purchases can be made from August 15, 2019 to
August 14, 2020 at prevailing market prices on the open
market through the facilities of the Toronto Stock Exchange or
other alternative trading systems. All shares purchased under the
bid will be cancelled.
In the first quarter of 2020, the Corporation purchased and
cancelled 1,059,100 Class B Shares for a total cash
consideration of $34.1 million
(1,319,600 Class B Shares for a total cash consideration
of $39.5 million in the same
period of 2019). The $27.8 million excess of the purchase price
over the carrying value of the repurchased Class B Shares was
recorded as a reduction in retained earnings ($31.7 million increase in the deficit in the
same period of 2019).
In the first quarter of 2019, 180,000 Class B Shares were
issued upon exercise of stock options for a cash consideration
of $2.7 million. Following this transaction, the
contributed surplus was increased by $3.0 million and the stock option plan
liability was reduced by the same amount.
Dividend
On May 13, 2020, the Board of
Directors of Quebecor declared a quarterly dividend of $0.20 per share on its Class A Shares and
Class B Shares, payable on June 23, 2020 to
shareholders of record as of the record date of
May 29, 2020. This dividend is designated an eligible
dividend, as provided under subsection 89(14) of the Canadian
Income Tax Act and its provincial counterpart.
Convertible debentures
In accordance with the terms of the trust indenture governing
the convertible debentures, the quarterly dividend declared on
March 11, 2020 on Quebecor Class B Shares triggered
an adjustment to the floor price and the ceiling price then in
effect. Accordingly, effective March 26, 2020, the
conversion features of the convertible debentures are subject to an
adjusted floor price of approximately $26.57 per share (that is, a maximum number
of approximately 5,644,430 Class B Shares corresponding to a
ratio of $150.0 million to the adjusted floor price) and
an adjusted ceiling price of approximately $33.22 per share (that is, a minimum number of
approximately 4,515,544 Class B Shares corresponding to a
ratio of $150.0 million to the
adjusted ceiling price).
Board of Directors
On March 11, 2020, the Board of
Directors received the resignation of Manon
Brouillette, Director of Quebecor and Quebecor Media
since 2019. On March 11, 2020, Michèle Colpron was
appointed a Director of Quebecor and Quebecor Media.
Ms. Colpron has more than 30 years of management
experience with financial institutions and also sits on the boards
of the Fonds de solidarité FTQ, the Canada Infrastructure Bank
and the Investment Industry Regulatory Organization of Canada (IIROC).
Detailed financial information
For a detailed analysis of Quebecor's first quarter 2020
results, please refer to the Management Discussion and Analysis and
condensed consolidated financial statements of Quebecor, available
on the Corporation's website at
<www.quebecor.com/en/investors/financial-documentation> 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 first
quarter 2020 results on May 14, 2020, at
2:30 p.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 May 14 to
August 13, 2020 by dialling 1 877 293‑8133,
conference number and access code for participants 48006#. The
conference call will also be broadcast live on Quebecor's website
at
<www.quebecor.com/en/investors/conferences‑and‑annual‑meeting>.
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 service interruptions resulting from
equipment breakdown, network failure, the threat of natural
disasters, epidemics, pandemics or other public health crises,
including the COVID‑19 pandemic, and political instability in some
countries, risks associated with emergency measures implemented by
various governments, 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, 2019, and the
"Risks and Uncertainties Updates" section of Quebecor's Management
Discussion and Analysis for the period ended
March 31, 2020.
The forward‑looking statements in this press release reflect
Quebecor's expectations as of May 14, 2020 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 and
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 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 EBITDA
In its analysis of operating results, the Corporation defines
adjusted EBITDA, as reconciled to net income under International
Financial Reporting Standards ("IFRS"), as net income before
depreciation and amortization, financial expenses, gain (loss) on
valuation and translation of financial instruments, restructuring
of operations and other items, income taxes and income from
discontinued operations. Adjusted EBITDA 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 EBITDA 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 EBITDA 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 operations and
free cash flows from continuing operating activities. The
Corporation's definition of adjusted EBITDA may not be the same as
similarly titled measures reported by other companies.
Table 3 provides a reconciliation of adjusted EBITDA to net
income as disclosed in Quebecor's condensed consolidated financial
statements.
Table
3
|
Reconciliation of
the adjusted EBITDA 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
March 31
|
|
|
2020
|
|
2019
|
|
|
|
|
|
Adjusted EBITDA
(negative adjusted EBITDA):
|
|
|
|
|
Telecommunications
|
$
|
435.5
|
$
|
423.0
|
Media
|
|
4.1
|
|
1.2
|
Sports and
Entertainment
|
|
(3.8)
|
|
(0.7)
|
Head Office
|
|
0.9
|
|
(2.8)
|
|
|
436.7
|
|
420.7
|
Depreciation and
amortization
|
|
(198.1)
|
|
(188.5)
|
Financial
expenses
|
|
(87.4)
|
|
(82.1)
|
Gain (loss) on
valuation and translation of financial instruments
|
|
23.3
|
|
(14.3)
|
Restructuring of
operations and other items
|
|
(3.9)
|
|
(8.5)
|
Income
taxes
|
|
(40.5)
|
|
(37.9)
|
Income from
discontinued operations
|
|
1.3
|
|
97.5
|
Net
income
|
$
|
131.4
|
$
|
186.9
|
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 gain (loss) on valuation and translation of
financial instruments, restructuring of operations and other items,
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 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 4 provides a reconciliation of adjusted income from
continuing operating activities to the net income attributable to
shareholders measure used in Quebecor's condensed consolidated
financial statements.
Table
4
|
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
March 31
|
|
|
2020
|
|
2019
|
|
|
|
|
|
Adjusted income from
continuing operating activities
|
$
|
111.5
|
$
|
111.4
|
Gain (loss) on
valuation and translation of financial instruments
|
|
23.3
|
|
(14.3)
|
Restructuring of
operations and other items
|
|
(3.9)
|
|
(8.5)
|
Income taxes related
to adjustments1
|
|
(0.6)
|
|
2.1
|
Net income
attributable to non‑controlling interest related to
adjustments
|
|
−
|
|
0.8
|
Discontinued
operations
|
|
1.3
|
|
97.5
|
Net income
attributable to shareholders
|
$
|
131.6
|
$
|
189.0
|
1
|
Includes impact of
fluctuations in income tax applicable to adjusted items, either for
statutory reasons or in connection with tax
transactions.
|
Cash flows from operations and free cash flows from
continuing operating activities
Cash flows from operations
Cash flows from operations represents adjusted EBITDA, less
additions to property, plant and equipment and to intangible
assets. Cash flows from operations represents funds available for
interest and income tax payments, expenditures related to
restructuring programs, business acquisitions, licence acquisitions
and renewals, payment of dividends, repayment of long‑term debt and
share repurchases. Cash flows from operations is not a measure of
liquidity 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. Cash flows from operations is used by the Corporation's
management and Board of Directors to evaluate cash flows generated
by the operations of all of its segments. The Corporation's
definition of cash flows from operations may not be identical to
similarly titled measures reported by other companies.
Free cash flows from continuing operating activities
Free cash flows from continuing operating activities represents
cash flows provided by continuing operating activities calculated
in accordance with IFRS, less cash flows used for additions to
property, plant and equipment and to intangible assets, plus
proceeds from disposal of assets. Free cash flows from continuing
operating activities is used by the Corporation's management and
Board of Directors to evaluate cash flows generated by the
Corporation's operations. Free cash flows from continuing operating
activities represents available funds for business acquisitions,
licence acquisitions and renewals, payment of dividends, repayment
of long‑term debt and share repurchases. Free cash flows from
continuing operating activities is not a measure of liquidity 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. The
Corporation's definition of free cash flows from continuing
operating activities may not be identical to similarly titled
measures reported by other companies.
Tables 5 and 6 provide a reconciliation of cash flows from
operations and free cash flows from continuing operating activities
to cash flows provided by continuing operating activities reported
in the condensed consolidated financial statements.
Table
5
|
Cash flows from
operations
|
(in millions of
Canadian dollars)
|
|
|
Three months
ended March 31
|
|
|
2020
|
|
2019
|
|
|
|
|
|
Adjusted EBITDA
(negative adjusted EBITDA)
|
|
|
|
|
Telecommunications
|
$
|
435.5
|
$
|
423.0
|
Media
|
|
4.1
|
|
1.2
|
Sports and
Entertainment
|
|
(3.8)
|
|
(0.7)
|
Head Office
|
|
0.9
|
|
(2.8)
|
|
|
436.7
|
|
420.7
|
Minus
|
|
|
|
|
Additions to
property, plant and equipment:1
|
|
|
|
|
Telecommunications
|
|
(88.9)
|
|
(94.3)
|
Media
|
|
(1.9)
|
|
(6.6)
|
Sports and
Entertainment
|
|
(0.1)
|
|
(0.5)
|
Head Office
|
|
(0.1)
|
|
−
|
|
|
(91.0)
|
|
(101.4)
|
Additions to
intangible assets:2
|
|
|
|
|
Telecommunications
|
|
(44.1)
|
|
(40.2)
|
Media
|
|
(5.8)
|
|
(1.5)
|
Sports and
Entertainment
|
|
(0.8)
|
|
(1.1)
|
Head Office
|
|
−
|
|
(0.2)
|
|
|
(50.7)
|
|
(43.0)
|
Cash flows from
operations
|
|
|
|
|
Telecommunications
|
|
302.5
|
|
288.5
|
Media
|
|
(3.6)
|
|
(6.9)
|
Sports and
Entertainment
|
|
(4.7)
|
|
(2.3)
|
Head Office
|
|
0.8
|
|
(3.0)
|
|
$
|
295.0
|
$
|
276.3
|
1
|
Reconciliation to
cash flows used for additions to property, plant and equipment as
per condensed consolidated financial statements:
|
Three months ended
March 31
|
|
2020
|
|
2019
|
|
Additions to property,
plant and equipment
|
$
|
(91.0)
|
$
|
(101.4)
|
|
Net increase
(decrease) in current accounts payable related to additions to
property, plant and equipment
|
|
11.0
|
|
(38.4)
|
|
Cash flows used for
additions to property, plant and equipment
|
$
|
(80.0)
|
$
|
(139.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Reconciliation to
cash flows used for additions to intangible assets as per condensed
consolidated financial statements:
|
Three months ended
March 31
|
|
2020
|
|
2019
|
|
Additions to
intangible assets
|
$
|
(50.7)
|
$
|
(43.0)
|
|
Net decrease in
current accounts payable related to additions to intangible
assets
|
|
(52.1)
|
|
(8.2)
|
|
Cash flows used for
additions to intangible assets
|
$
|
(102.8)
|
$
|
(51.2)
|
Table
6
|
Free cash flows
from continuing operating activities and cash flows provided by
continuing operating activities reported in the condensed
consolidated financial statements.
|
(in millions of
Canadian dollars)
|
|
|
Three months ended
March 31
|
|
|
2020
|
|
2019
|
|
|
|
|
|
Cash flows from
operations reported in Table 5
|
$
|
295.0
|
$
|
276.3
|
|
|
|
|
|
Plus
(minus)
|
|
|
|
|
Cash portion of
financial expenses
|
|
(85.4)
|
|
(80.1)
|
Cash portion related
to restructuring of operations and other items
|
|
(3.9)
|
|
(5.0)
|
Current income
taxes
|
|
(61.0)
|
|
(45.6)
|
Other
|
|
4.1
|
|
0.9
|
Net change in non‑cash
balances related to operating activities
|
|
32.6
|
|
(107.8)
|
Net increase
(decrease) in current accounts payable related to additions to property, plant and
equipment
|
|
11.0
|
|
(38.4)
|
Net decrease in
current accounts payable related
to additions to intangible assets
|
|
(52.1)
|
|
(8.2)
|
Free cash flows
from continuing operating activities
|
|
140.3
|
|
(7.9)
|
|
|
|
|
|
Plus
(minus)
|
|
|
|
|
Cash flows used for
additions to property, plant and equipment
|
|
80.0
|
|
139.8
|
Cash flows used for
additions to intangible assets
|
|
102.8
|
|
51.2
|
Proceeds from disposal
of assets
|
|
(1.5)
|
|
(2.6)
|
Cash flows
provided by continuing operating activities
|
$
|
321.6
|
$
|
180.5
|
KEY PERFORMANCE INDICATORS
Revenue‑generating unit
The Corporation uses RGU, an industry metric, as a key
performance indicator. An RGU represents, as the case may be,
subscriptions to the cable Internet, cable television and Club
illico services, and subscriber connections to the mobile telephony
and cable telephony services. RGU is not a measurement that is
consistent with IFRS and the Corporation's definition and
calculation of RGU may not be the same as identically titled
measurements reported by other companies or published by public
authorities.
Average billing per unit
The Corporation uses ABPU, an industry metric, as a key
performance indicator. This indicator is used to measure monthly
average subscription billing per RGU. ABPU is not a measurement
that is consistent with IFRS and the Corporation's definition and
calculation of ABPU may not be the same as identically titled
measurements reported by other companies.
Mobile ABPU is calculated by dividing the average subscription
billing for mobile telephony services by the average number of
mobile RGUs during the applicable period, and then dividing the
resulting amount by the number of months in the applicable
period.
Total ABPU is calculated by dividing the combined average
subscription billing for cable Internet, cable television, Club
illico, mobile telephony and cable telephony services by the total
average number of RGUs from cable Internet, cable television,
mobile telephony and cable telephony services 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
|
(unaudited)
|
March 31
|
|
|
2020
|
|
2019
|
|
|
|
|
|
Revenues
|
$
|
1,055.5
|
$
|
1,027.3
|
|
|
|
|
|
Employee
costs
|
|
178.0
|
|
181.8
|
Purchase of goods and
services
|
|
440.8
|
|
424.8
|
Depreciation and
amortization
|
|
198.1
|
|
188.5
|
Financial
expenses
|
|
87.4
|
|
82.1
|
(Gain) loss on
valuation and translation of financial instruments
|
|
(23.3)
|
|
14.3
|
Restructuring of
operations and other items
|
|
3.9
|
|
8.5
|
Income before
income taxes
|
|
170.6
|
|
127.3
|
|
|
|
|
|
Income taxes
(recovery):
|
|
|
|
|
Current
|
|
61.0
|
|
45.6
|
Deferred
|
|
(20.5)
|
|
(7.7)
|
|
|
40.5
|
|
37.9
|
|
|
|
|
|
Income from
continuing operations
|
|
130.1
|
|
89.4
|
Income from
discontinued operations
|
|
1.3
|
|
97.5
|
|
|
|
|
|
Net
income
|
$
|
131.4
|
$
|
186.9
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to
|
|
|
|
|
Shareholders
|
$
|
130.3
|
$
|
91.5
|
Non-controlling
interests
|
|
(0.2)
|
|
(2.1)
|
|
|
|
|
|
Net income (loss)
attributable to
|
|
|
|
|
Shareholders
|
$
|
131.6
|
$
|
189.0
|
Non-controlling
interests
|
|
(0.2)
|
|
(2.1)
|
|
|
|
|
|
Earnings per share
attributable to shareholders
|
|
|
|
|
Basic:
|
|
|
|
|
From continuing
operations
|
$
|
0.51
|
$
|
0.36
|
From discontinued
operations
|
|
0.01
|
|
0.38
|
Net income
|
|
0.52
|
|
0.74
|
Diluted:
|
|
|
|
|
From continuing
operations
|
|
0.41
|
|
0.36
|
From discontinued
operations
|
|
0.01
|
|
0.38
|
Net income
|
|
0.42
|
|
0.74
|
|
|
|
|
|
Weighted average
number of shares outstanding (in millions)
|
|
254.0
|
|
256.0
|
Weighted average
number of diluted shares (in millions)
|
|
259.9
|
|
256.5
|
QUEBECOR
INC.
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
Three months
ended
|
(unaudited)
|
March 31
|
|
|
2020
|
|
2019
|
|
|
|
|
|
Income from
continuing operations
|
$
|
130.1
|
$
|
89.4
|
|
|
|
|
|
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
|
|
62.9
|
|
(19.3)
|
Deferred income
taxes
|
|
(15.0)
|
|
6.5
|
|
|
|
|
|
|
|
47.9
|
|
(12.8)
|
|
|
|
|
|
Comprehensive
income from continuing operations
|
|
178.0
|
|
76.6
|
|
|
|
|
|
Income from
discontinued operations
|
|
1.3
|
|
97.5
|
|
|
|
|
|
Comprehensive
income
|
$
|
179.3
|
$
|
174.1
|
|
|
|
|
|
Comprehensive
income (loss) from continuing operations attributable
to
|
|
|
|
|
Shareholders
|
$
|
178.2
|
$
|
78.7
|
Non-controlling
interests
|
|
(0.2)
|
|
(2.1)
|
|
|
|
|
|
Comprehensive
income (loss) attributable to
|
|
|
|
|
Shareholders
|
$
|
179.5
|
$
|
176.2
|
Non-controlling
interests
|
|
(0.2)
|
|
(2.1)
|
QUEBECOR
INC.
|
SEGMENTED
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and
Inter-
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
874.7
|
$
|
174.8
|
$
|
34.8
|
$
|
(28.8)
|
$
|
1,055.5
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
102.9
|
|
59.7
|
|
10.0
|
|
5.4
|
|
178.0
|
Purchase of goods and
services
|
|
336.3
|
|
111.0
|
|
28.6
|
|
(35.1)
|
|
440.8
|
Adjusted
EBITDA1
|
|
435.5
|
|
4.1
|
|
(3.8)
|
|
0.9
|
|
436.7
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
198.1
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
87.4
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
(23.3)
|
Restructuring of
operations and other items
|
|
|
|
|
|
|
|
|
|
3.9
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
$
|
170.6
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used
for:
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
73.6
|
$
|
6.2
|
$
|
0.1
|
$
|
0.1
|
$
|
80.0
|
Additions to
intangible assets
|
|
95.1
|
|
6.9
|
|
0.8
|
|
-
|
|
102.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and Inter-
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
840.7
|
$
|
172.7
|
$
|
40.4
|
$
|
(26.5)
|
$
|
1,027.3
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
103.7
|
|
57.5
|
|
9.7
|
|
10.9
|
|
181.8
|
Purchase of goods and
services
|
|
314.0
|
|
114.0
|
|
31.4
|
|
(34.6)
|
|
424.8
|
Adjusted
EBITDA1
|
|
423.0
|
|
1.2
|
|
(0.7)
|
|
(2.8)
|
|
420.7
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
188.5
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
82.1
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
14.3
|
Restructuring of
operations and other items
|
|
|
|
|
|
|
|
|
|
8.5
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
$
|
127.3
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used
for:
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
132.6
|
$
|
6.7
|
$
|
0.5
|
$
|
-
|
$
|
139.8
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
48.6
|
|
1.6
|
|
1.0
|
|
-
|
|
51.2
|
|
|
1
|
The Chief Executive
Officer uses adjusted EBITDA as the measure of profit to assess the
performance of each segment. Adjusted EBITDA is referred
as a non-IFRS measure and is
defined as net income before depreciation and amortization,
financial expenses, (gain) loss on valuation and translation of
financial instruments,
restructuring of operations and other items, 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
|
|
|
|
|
|
|
|
|
Retained
|
|
other
com-
|
|
to
non-
|
|
|
|
|
Capital
|
|
Contributed
|
|
earnings
|
|
prehensive
|
|
controlling
|
|
Total
|
|
|
stock
|
surplus
|
|
(deficit)
|
|
loss
|
|
interests
|
|
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of
December 31, 2018
|
$
|
1,065.9
|
$
|
4.7
|
$
|
(507.9)
|
$
|
(82.7)
|
$
|
88.5
|
$
|
568.5
|
Net income
(loss)
|
|
-
|
|
-
|
|
189.0
|
|
-
|
|
(2.1)
|
|
186.9
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
-
|
|
(12.8)
|
|
-
|
|
(12.8)
|
Issuance of Class B
Shares
|
|
2.7
|
|
3.0
|
|
-
|
|
-
|
|
-
|
|
5.7
|
Dividends
|
|
-
|
|
-
|
|
(14.1)
|
|
-
|
|
-
|
|
(14.1)
|
Repurchase of Class B
Shares
|
|
(7.8)
|
|
-
|
|
(31.7)
|
|
-
|
|
-
|
|
(39.5)
|
Balance as of
March 31, 2019
|
|
1,060.8
|
|
7.7
|
|
(364.7)
|
|
(95.5)
|
|
86.4
|
|
694.7
|
Net income
|
|
-
|
|
-
|
|
463.8
|
|
-
|
|
7.6
|
|
471.4
|
Other comprehensive
income
|
|
-
|
|
-
|
|
-
|
|
31.4
|
|
0.6
|
|
32.0
|
Dividends
|
|
-
|
|
-
|
|
(86.2)
|
|
-
|
|
-
|
|
(86.2)
|
Issuance of Class B
Shares
|
|
5.6
|
|
9.7
|
|
-
|
|
-
|
|
-
|
|
15.3
|
Repurchase of Class B
Shares
|
|
(10.5)
|
|
-
|
|
(44.6)
|
|
-
|
|
-
|
|
(55.1)
|
Balance as of
December 31, 2019
|
|
1,055.9
|
|
17.4
|
|
(31.7)
|
|
(64.1)
|
|
94.6
|
|
1,072.1
|
Net income
(loss)
|
|
-
|
|
-
|
|
131.6
|
|
-
|
|
(0.2)
|
|
131.4
|
Other comprehensive
income
|
|
-
|
|
-
|
|
-
|
|
47.9
|
|
-
|
|
47.9
|
Dividends
|
|
-
|
|
-
|
|
(50.9)
|
|
-
|
|
(0.2)
|
|
(51.1)
|
Repurchase of Class B
Shares
|
|
(6.3)
|
|
-
|
|
(27.8)
|
|
-
|
|
-
|
|
(34.1)
|
Balance as of
March 31, 2020
|
$
|
1,049.6
|
$
|
17.4
|
$
|
21.2
|
$
|
(16.2)
|
$
|
94.2
|
$
|
1,166.2
|
QUEBECOR
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
Three months
ended
|
(unaudited)
|
March 31
|
|
|
2020
|
|
2019
|
|
|
|
Cash flows related
to operating activities
|
|
|
|
|
Income from
continuing operations
|
$
|
130.1
|
$
|
89.4
|
Adjustments
for:
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
153.1
|
|
151.1
|
Amortization of
intangible assets
|
|
35.9
|
|
28.6
|
Amortization of
right-of-use assets
|
|
9.1
|
|
8.8
|
(Gain) loss on
valuation and translation of financial instruments
|
|
(23.3)
|
|
14.3
|
Impairment of
assets
|
|
-
|
|
3.5
|
Amortization of
financing costs and long-term debt discount
|
|
2.0
|
|
2.0
|
Deferred income
taxes
|
|
(20.5)
|
|
(7.7)
|
Other
|
|
2.6
|
|
(1.7)
|
|
|
289.0
|
|
288.3
|
Net change in
non-cash balances related to operating activities
|
|
32.6
|
|
(107.8)
|
Cash flows provided
by continuing operating activities
|
|
321.6
|
|
180.5
|
Cash flows related
to investing activities
|
|
|
|
|
Business
acquisitions
|
|
-
|
|
(23.5)
|
Business
disposals
|
|
-
|
|
261.6
|
Additions to
property, plant and equipment
|
|
(80.0)
|
|
(139.8)
|
Additions to
intangible assets
|
|
(102.8)
|
|
(51.2)
|
Proceeds from
disposals of assets
|
|
1.5
|
|
2.6
|
Other
|
|
(0.6)
|
|
(1.3)
|
Cash flows (used in)
provided by continuing investing activities
|
|
(181.9)
|
|
48.4
|
Cash flows related
to financing activities
|
|
|
|
|
Net change in bank
indebtedness
|
|
(12.8)
|
|
3.1
|
Net change under
revolving facilities
|
|
(52.9)
|
|
(180.7)
|
Repayment of
long-term debt
|
|
(0.3)
|
|
(3.9)
|
Repayment of lease
liabilities
|
|
(9.6)
|
|
(9.9)
|
Issuance of Class B
Shares
|
|
-
|
|
2.7
|
Repurchase of Class B
Shares
|
|
(34.1)
|
|
(39.5)
|
Dividends paid to
non-controlling interests
|
|
(0.2)
|
|
-
|
Cash flows used in
continuing financing activities
|
|
(109.9)
|
|
(228.2)
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
|
29.8
|
|
0.7
|
|
|
|
|
|
Cash flows used in
discontinued operations
|
|
-
|
|
(2.3)
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
14.0
|
|
21.3
|
Cash and cash
equivalents at end of period
|
$
|
43.8
|
$
|
19.7
|
|
|
|
|
|
Cash and cash
equivalents consist of
|
|
|
|
|
Cash
|
$
|
4.7
|
$
|
6.5
|
Cash
equivalents
|
|
39.1
|
|
13.2
|
|
$
|
43.8
|
$
|
19.7
|
|
|
|
|
|
|
|
|
|
|
Interest and taxes
reflected as operating activities
|
|
|
|
|
Cash interest
payments
|
$
|
38.9
|
$
|
47.1
|
Cash income tax
payments (net of refunds)
|
|
23.0
|
|
138.7
|
QUEBECOR
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
(unaudited)
|
|
March
31
|
|
December
31
|
|
|
2020
|
|
2019
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
43.8
|
$
|
14.0
|
Accounts
receivable
|
|
541.4
|
|
548.0
|
Contract
assets
|
|
158.8
|
|
160.3
|
Income
taxes
|
|
7.4
|
|
19.1
|
Inventories
|
|
226.0
|
|
240.4
|
Other current
assets
|
|
126.9
|
|
121.2
|
|
|
1,104.3
|
|
1,103.0
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Property, plant and
equipment
|
|
3,350.6
|
|
3,415.9
|
Intangible
assets
|
|
1,454.4
|
|
1,444.0
|
Goodwill
|
|
2,692.9
|
|
2,692.9
|
Right-of-use
assets
|
|
126.0
|
|
110.4
|
Derivative financial
instruments
|
|
1,043.9
|
|
679.8
|
Deferred income
taxes
|
|
31.0
|
|
31.2
|
Other
assets
|
|
266.9
|
|
248.7
|
|
|
8,965.7
|
|
8,622.9
|
Total
assets
|
$
|
10,070.0
|
$
|
9,725.9
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Bank
indebtedness
|
$
|
16.6
|
$
|
29.4
|
Accounts payable,
accrued charges and provisions
|
|
809.2
|
|
809.6
|
Deferred
revenue
|
|
326.2
|
|
332.7
|
Income
taxes
|
|
28.9
|
|
4.2
|
Current portion of
long-term debt
|
|
45.5
|
|
57.2
|
Current portion of
lease liabilities
|
|
35.5
|
|
31.3
|
|
|
1,261.9
|
|
1,264.4
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Long-term
debt
|
|
6,163.4
|
|
5,900.3
|
Derivative financial
instruments
|
|
-
|
|
2.1
|
Convertible
debentures
|
|
150.0
|
|
150.0
|
Lease
liabilities
|
|
117.5
|
|
106.6
|
Deferred income
taxes
|
|
854.0
|
|
859.2
|
Other
liabilities
|
|
357.0
|
|
371.2
|
|
|
7,641.9
|
|
7,389.4
|
Equity
|
|
|
|
|
Capital
stock
|
|
1,049.6
|
|
1,055.9
|
Contributed
surplus
|
|
17.4
|
|
17.4
|
Retained earnings
(deficit)
|
|
21.2
|
|
(31.7)
|
Accumulated other
comprehensive loss
|
|
(16.2)
|
|
(64.1)
|
Equity
attributable to shareholders
|
|
1,072.0
|
|
977.5
|
Non-controlling
interests
|
|
94.2
|
|
94.6
|
|
|
1,166.2
|
|
1,072.1
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
10,070.0
|
$
|
9,725.9
|
View original
content:http://www.prnewswire.com/news-releases/quebecor-inc-reports-consolidated-results-for-the-first-quarter-of-2020-301058954.html
SOURCE Quebecor