MONTRÉAL, Feb. 25, 2021 /CNW
Telbec/ - Quebecor Inc. ("Quebecor" or the "Corporation") today
reported its consolidated financial results for the
fourth quarter and full year of 2020. Quebecor
consolidates the financial results of its wholly owned Quebecor
Media Inc. ("Quebecor Media") subsidiary.
Highlights
2020 financial year and recent developments
- Revenues: $4.32 billion in
2020, up $24.0 million (0.6%)
from 2019.
- Adjusted EBITDA:1 $1.95 billion, up $73.1 million (3.9%).
- Net income attributable to shareholders: $607.2 million ($2.41 per basic share) in 2020, a decrease
of $45.6 million ($0.14 per basic share).
- Adjusted income from continuing operating
activities:2 $594.5 million ($2.36 per basic share) in 2020, an increase
of $13.5 million ($0.09 per basic share).
- Cash flows from operations:3 $1.31 billion, up $168.3 million (14.7%).
- Consolidated net debt leverage ratio:4 2.68x at
December 31, 2020 compared with 2.91x
at December 31, 2019.
- Quarterly dividend on the Corporation's Class A Multiple Voting
Shares ("Class A Shares") and Class B Subordinate Voting
Shares ("Class B Shares") raised by 38% from $0.20 to $0.275 per
share, in line with its dividend target of 30% to 50% of
free cash flows.
- The Telecommunications segment grew its revenues by
$142.2 million (4.1%) and its
adjusted EBITDA by $61.0 million (3.4%)
in 2020.
- Videotron Ltd. ("Videotron") significantly increased its
revenues from customer equipment sales ($139.1 million or 51.6%), mobile
telephony ($57.8 million or 9.6%), and
Internet access ($17.1 million
or 1.5%) in 2020.
- Videotron's total average billing per unit5 ("ABPU")
was $49.94 in 2020 compared with
$50.00 in 2019, a $0.06
(‑0.1%) decrease. Mobile ABPU was $50.85 in 2020, compared with $52.56 in 2019, a $1.71 (‑3.3%) decrease due in part to a decrease
in overage and roaming revenues caused by the COVID‑19 public
health crisis and the popularity of bring your own device ("BYOD")
plans.
- Net increase of 71,700 revenue‑generating units6
("RGUs") (1.2%) in 2020, including 150,600 connections (11.3%)
to the mobile telephony service, 69,500 subscriptions (4.0%)
to the Internet access service and 10,400 subscriptions (2.3%) to
the Club illico over‑the‑top video service
("Club illico").
- On February 10, 2021, the Sports
and Entertainment segment announced the acquisition of Les Disques
Audiogramme inc. The addition of the largest independent
French‑language record label in North
America positions the segment to continue supporting
talented Québec artists and disseminating and promoting Québec
music.
- On January 22, 2021, Videotron
issued $650.0 million aggregate
principal amount of 3.125% Senior Notes maturing on
January 15, 2031, for net proceeds of $644.1 million, net of financing fees of
$5.9 million. Videotron intends
to use the proceeds from this offering for general corporate
purposes, including, without limitation, the repayment of a portion
of its current debt.
- On December 15, 2020, Videotron
announced the launch of its 5G network, with service to be phased
in first in the City of Montréal and then rolled out in other parts
of Québec. This state‑of‑the‑art technology offers customers faster
upload and download speeds and supports the introduction of new
applications.
- On June 17, 2020, the Sports and
Entertainment segment announced the acquisition of the
Théâtre Capitole in Québec City. The acquisition of the
unique, hundred‑year‑old, 1,300‑seat venue will enhance the Québec
City entertainment scene.
- From March 13 through June 30,
2020, and December 20, 2020
through January 3, 2021, Videotron suspended data caps on
all of its customers' residential and business Internet plans to
support the implementation of effective teleworking arrangements at
Québec businesses and enable customers to stay connected with loved
ones during the COVID‑19 pandemic. From March 13 to
June 30, 2020, Videotron also cancelled roaming charges
outside Canada and the Daily
Traveller Pass fee.
- TVA Group Inc. ("TVA Group") took a series of initiatives in
the spring of 2020 to support Quebecers during the first COVID‑19
lockdown. The television event Une chance qu'on s'a,
broadcast in partnership with the Government of Québec and
Télé‑Québec, raised $2.0 million
for organizations that help isolated seniors and victims of
domestic violence. The daily program
Ça va bien aller, which started airing on
April 6, 2020, lessened the sense of
isolation by keeping viewers informed of initiatives across Québec.
Finally, the all‑news channel LCN was unscrambled to help Quebecers
stay abreast of developments in the health crisis in real
time.
- To alleviate the isolation of youths in rehabilitation centres
and seniors in long‑term care facilities during the pandemic,
Videotron donated 1,000 smartphones with unlimited plans in
April 2020. Quebecor and the
Fondation Chopin‑Péladeau also supported the Food Banks of
Quebec network by joining forces
with La Tablée des Chefs in the "Cuisines Solidaires"
project.
_________________________
|
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
"Consolidated net debt leverage ratio" under
"Definitions."
|
5 See
"Key performance indicators" under "Definitions."
|
6 See "Key
performance indicators" under "Definitions."
|
Fourth quarter 2020
- Revenues: $1.15 billion, up
$10.6 million (0.9%).
- Adjusted EBITDA: $526.8 million, up $32.3 million (6.5%).
- Adjusted EBITDA increased in the Telecommunications segment by
$19.0 million (4.1%) and in the
Media segment by $10.3 million (29.2%).
- Net income attributable to shareholders: $159.8 million ($0.64 per basic share) in the fourth quarter
of 2020, an increase of $14.7 million ($0.07 per basic share).
- Adjusted income from continuing operating activities:
$165.0 million ($0.66 per basic share) in the fourth quarter
of 2020, a $5.4 million increase.
- Cash flows from operations: $345.2 million, up $84.7 million (32.5%).
- Net increase of 43,000 RGUs1 (0.7%) in the fourth
quarter of 2020, including 28,500 connections (2.0%) to the mobile
telephony service, 27,000 subscriptions (1.5%) to the Internet
access service and 16,800 subscriptions (3.7%) to
Club illico.
___________________
|
1
|
The numbers for the
end of the third quarter of 2020 have been lowered by 6,900 RGUs
(reflecting reductions in customer growth of 5,200
an 1,700 in the first and second quarters of 2020
respectively) to correct an irregularity discovered in the RGU
growth compilation systems.
|
"As a major corporate citizen and Québec's telecommunications,
news and entertainment leader, Quebecor played a prominent role
during the COVID‑19 pandemic that wreaked havoc throughout 2020,"
said Pierre Karl Péladeau, President and Chief Executive Officer of
Quebecor. "We supported the public by providing our essential
services without interruption during the crisis while implementing
measures to mitigate the impact on our employees, customers and
business partners. For example, we took practical steps throughout
the year to help our customers stay connected, informed and
entertained in this challenging time, and we provided financial
assistance to our employees who were affected by the pandemic.
"Our prudent management of our operations and our balance sheet
served us particularly well in 2020. We controlled our operating
costs and adjusted our capital expenditures for physical and
intangible assets to maintain our industry‑leading status going
forward while being prepared to deal with future challenges. At the
same time, we were able to continue the roll‑out of our latest
technological innovations. For example, our new Helix and Fizz
services have been a resounding success, making a strong
contribution to growing our customer base and our profitability. As
a result, despite the difficult business environment created by the
pandemic and its impact on some of our operations, we posted a 3.9%
increase in adjusted EBITDA and a 14.7% increase in cash flow from
operations in 2020. We reduced our debt‑to‑equity ratio from
2.91x in 2019 to 2.68x in 2020. Our performance in the fourth
quarter of 2020 also contributed to these positive results, with
increases of 6.5% in adjusted EBITDA and 32.5% in cash flows from
operations," Pierre Karl Péladeau stated.
"As a provider of essential services subject to unprecedented
demand, I am proud of what we accomplished at Videotron
in 2020," said Jean‑François Pruneau, President and Chief
Executive Officer of Videotron. "Thanks to our strategic
investments of recent years, Quebecers have been able to count on a
reliable, robust network as well as the expertise and
professionalism of our dedicated teams across Québec. To connect as
many Quebecers as possible, we are pursuing our strategy of
expanding our services outside urban areas by innovating and
constructing new infrastructure, building on our successes to
date.
"Meanwhile, we began the roll‑out of our 5G network with a
successful first deployment in December 2020, strengthening
our industry‑leading position and demonstrating our determination
to stay at the cutting edge of technological change and delivering
a world‑class experience for our customers.
"The addition of 150,600 mobile subscriber connections and
69,500 Internet access customers in 2020 is indicative of our
ability to acquire new customers and increase our market share in
growth sectors. The success of our Helix entertainment and home
management platform, which now has more than 677,000 RGUs, is
a prime example, as is the growth of Fizz's mobile telephony and
Internet access services. Fizz recently placed first for online
experience in Canada's
telecommunications industry on Léger's WOW Digital Index.
"Finally, Club illico's subscriber base continues to grow,
thanks to its rich, diverse selection of programs, including
exciting new documentary series and new dramas. We continue
investing in these categories and some 30 original productions are
currently in development," Jean-François Pruneau
concluded.
"Our organization faced multiple COVID‑19‑related challenges in
2020," noted France Lauzière, President and Chief Executive Officer
of TVA Group. "TVA Group posted a $12.5 million increase in
adjusted EBITDA in the fourth quarter of 2020, mainly because
of decreased costs due to the late start of the National Hockey
League's 2020‑2021 season, combined with the various
government assistance measures. Our people's sustained efforts to
mitigate the impact of the pandemic were also a factor.
"Despite the difficult conditions created by the pandemic, TVA
Group continues to evolve and adjust to market transformations. For
example, we successfully repositioned the TVA brand in the fall and
launched the new TVA+ digital platform, which aims to reach ever
more Quebecers and bring viewers together through its content
offerings. Our combined market share continued to grow in the
fourth quarter of 2020, rising 1.8 percentage points
to 38.6%, due in particular to a 2.6‑point increase at the LCN
all-news channel, which remained the most‑watched specialty channel
in Québec with a 7.4% market share," added
France Lauzière.
"Quebecor's Sports and Entertainment segment was hard hit by the
health crisis," said Martin
Tremblay, Chief Operating Officer of Quebecor Sports and
Entertainment Group. "Most of our shows and events were postponed
or cancelled. We have managed our operations so as to protect the
viability of the business and to come back even stronger than
before after the pandemic. In February 2021, we acquired Les
Disques Audiogramme inc., the largest independent
French‑language record label in North America. As well, we
enhanced entertainment offerings in the Québec City area with the
acquisition of the Théâtre Capitole in June 2020, and we
launched the new QUB musique streaming platform featuring
Québec artists. Showcasing Québec artists and supporting the
vitality of our culture remain core priorities for us and we are
very proud of these acquisitions and initiatives. Expanding our
complement of distribution platforms positions us to continue
building a diversified ecosystem for the benefit of promoters,
artists and everyone in Québec who loves music and culture."
"Videotron strengthened its position as a leading issuer," said
Hugues Simard, Chief Financial
Officer of Quebecor and Quebecor Media. "I am very pleased
with the response to its offering of Senior Notes in the principal
amount of $650.0 million, issued on
January 22, 2021. The Notes bear 3.125% interest, the
lowest coupon rate ever on the Canadian high‑yield note market.
This issue, in addition to available liquidity of more than
$1.8 billion, puts us in a
strong position heading into the upcoming spectrum auctions and our
Note maturities."
"While the pandemic continues to create uncertainty, our ability
to execute our strategies in an effective and disciplined manner,
our healthy results and balance sheet, and our talented teams give
us reason to look to the future with confidence," Pierre Karl
Péladeau concluded. "I extend my heartfelt thanks to our
employees, who have shown extraordinary resilience and continue
providing our customers with the highest standard of service, day
after day. I am extremely proud of the outstanding leadership we
have shown throughout the year. We will continue investing and
growing for the benefit of all our stakeholders."
COVID‑19 public health crisis
The COVID‑19 pandemic is having a significant impact on the
economic environment in Canada and
around the world. On March 13, 2020, in order to
limit the spread of the virus, the Québec government imposed a
number of restrictions and special preventive measures, including
the suspension of business activities deemed non‑essential across
Québec. The Québec government subsequently implemented a gradual
reopening plan, which was followed at the end of December 2020
by new restrictions and the suspension of some business activities
due to the second wave of the pandemic. This health crisis
curtailed the operations of many of Quebecor's business partners
and led to a significant slowdown in some of the Corporation's
segments in 2020. Among other impacts, the restrictions and
preventive measures imposed by the Québec government caused 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, a significant
decrease in sports events broadcast by the TVA Sports
specialty channel, and reduced film and audiovisual content
activity in the Media segment; and the cancellation of most
shows and events, and the interruption of music and book
distribution activities in the Sports and Entertainment segment.
Despite the constraints created by this pandemic, Quebecor has
continued and will continue to provide essential telecommunications
and news services during this health crisis, while safeguarding the
health and safety of the public and its employees. Because of the
slowdown in the economy, approximately 10% of Quebecor's workforce
received benefits in 2020 under the Corporation's assistance
program. During the health crisis, this program provides financial
assistance to employees temporarily laid-off or to employees on
stand-by in addition to the Canadian wage subsidy programs. Due to
significant decreases in their revenues, most of the business units
in the Media segment and Sports and Entertainment segment qualified
for the Emergency Wage Subsidy, and subsidies totalling
$49.6 million were recorded in
2020 as a reduction in employee costs, including $29.0 million in TVA Group,
$7.5 million in Sports and
Entertainment, $4.6 million in newspapers,
$3.1 million in Quebecor Media
Sales and $2.9 million in
NumériQ.
Non‑IFRS Financial Measures
In 2020, the Corporation reviewed the nature and definition of
the financial measures not standardized under International
Financial Reporting Standards ("IFRS") that it uses. As a result,
"cash flows from segment operations" was abandoned and replaced by
the new "cash flows from operations" metric. This metric is now
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. Furthermore,
calculation of this metric will henceforth be based on additions to
property, plant and equipment and to intangible assets rather than
cash flows used for additions to property, plant and equipment and
to intangible assets. As well, the new metric is calculated without
taking into account proceeds on disposals. The Corporation also
added the "consolidated net debt leverage ratio" measure. The
consolidated net debt leverage ratio represents consolidated net
debt, excluding convertible debentures, divided by the trailing
12‑month adjusted EBITDA. Consolidated net debt, excluding
convertible debentures, represents total long‑term debt plus bank
indebtedness, lease liabilities, the current portion of lease
liabilities and liabilities related to derivative financial
instruments, less assets related to derivative financial
instruments and cash and cash equivalents. The consolidated net
debt leverage ratio serves to evaluate the Corporation's financial
leverage and is used by management and the Board of Directors in
decisions on the Corporation's capital structure, including its
financing strategy, and in managing debt maturity risks. The
definitions of these new measures are provided under "Definitions"
below.
Financial tables
Table
1 Consolidated summary of income, cash flows and other
financial data (in millions of Canadian dollars, except
number of shares and per basic share data)
|
|
|
Years ended
December 31
|
Three months
ended
December 31
|
|
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
Income
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
3,622.6
|
$
|
3,480.4
|
$
|
3,382.0
|
$
|
940.9
|
$
|
908.6
|
Media
|
|
650.5
|
|
738.0
|
|
728.6
|
|
185.8
|
|
208.0
|
Sports and
Entertainment
|
|
158.0
|
|
192.2
|
|
182.1
|
|
48.8
|
|
54.7
|
Inter‑segment
|
|
(113.3)
|
|
(116.8)
|
|
(111.7)
|
|
(28.7)
|
|
(35.1)
|
|
|
4,317.8
|
|
4,293.8
|
|
4,181.0
|
|
1,146.8
|
|
1,136.2
|
Adjusted EBITDA
(negative adjusted EBITDA):
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
1,864.4
|
|
1,803.4
|
|
1,715.6
|
|
481.7
|
|
462.7
|
Media
|
|
82.2
|
|
74.8
|
|
60.0
|
|
45.6
|
|
35.3
|
Sports and
Entertainment
|
|
8.7
|
|
7.3
|
|
10.5
|
|
2.1
|
|
2.6
|
Head Office
|
|
(2.7)
|
|
(6.0)
|
|
(9.8)
|
|
(2.6)
|
|
(6.1)
|
|
|
1,952.6
|
|
1,879.5
|
|
1,776.3
|
|
526.8
|
|
494.5
|
Depreciation and
amortization
|
|
(803.2)
|
|
(750.4)
|
|
(753.1)
|
|
(213.5)
|
|
(186.3)
|
Financial
expenses
|
|
(328.2)
|
|
(327.5)
|
|
(332.0)
|
|
(79.1)
|
|
(81.4)
|
Gain (loss) on
valuation and translation of financial
instruments
|
|
8.0
|
|
(6.5)
|
|
(61.3)
|
|
(0.9)
|
|
(14.6)
|
Restructuring of
operations and other items
|
|
(39.2)
|
|
(28.6)
|
|
(29.1)
|
|
(6.1)
|
|
(1.6)
|
Income
taxes
|
|
(205.8)
|
|
(205.7)
|
|
(162.8)
|
|
(58.1)
|
|
(60.3)
|
Income from
discontinued operations
|
|
33.2
|
|
97.5
|
|
3.8
|
|
(0.6)
|
|
−
|
Net
income
|
$
|
617.4
|
$
|
658.3
|
$
|
441.8
|
$
|
168.5
|
$
|
150.3
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operating activities attributable to
shareholders
|
$
|
574.0
|
$
|
555.3
|
$
|
400.2
|
$
|
160.4
|
$
|
145.1
|
Net income
attributable to shareholders
|
|
607.2
|
|
652.8
|
|
403.7
|
|
159.8
|
|
145.1
|
Adjusted income from
continuing operating activities
|
|
594.5
|
|
581.0
|
|
469.8
|
|
165.0
|
|
159.6
|
Per basic
share:
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operating activities attributable to shareholders
|
|
2.28
|
|
2.17
|
|
1.67
|
|
0.64
|
|
0.57
|
Net income
attributable to shareholders
|
|
2.41
|
|
2.55
|
|
1.69
|
|
0.64
|
|
0.57
|
Adjusted income from
continuing operating activities
|
|
2.36
|
|
2.27
|
|
1.96
|
|
0.66
|
|
0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended
December 31
|
Three months
ended
December 31
|
|
2020
|
2019
|
2018
|
|
2020
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment and to
intangible assets:
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
596.1
|
$
|
678.1
|
$
|
720.2
|
$
|
164.6
|
$
|
214.2
|
Media
|
|
38.0
|
|
50.0
|
|
33.8
|
|
14.8
|
|
18.4
|
Sports and
Entertainment
|
|
3.4
|
|
4.9
|
|
5.0
|
|
0.9
|
|
0.8
|
Head Office
|
|
2.7
|
|
2.4
|
|
5.0
|
|
1.3
|
|
0.6
|
|
|
640.2
|
|
735.4
|
|
764.0
|
|
181.6
|
|
234.0
|
Acquisition of
spectrum licences
|
|
−
|
|
255.8
|
|
−
|
|
−
|
|
−
|
Cash
flows:
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operations
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
1,268.3
|
|
1,125.3
|
|
995.4
|
|
317.1
|
|
248.5
|
Media
|
|
44.2
|
|
24.8
|
|
26.2
|
|
30.8
|
|
16.9
|
Sports and
Entertainment
|
|
5.3
|
|
2.4
|
|
5.5
|
|
1.2
|
|
1.8
|
Head Office
|
|
(5.4)
|
|
(8.4)
|
|
(14.8)
|
|
(3.9)
|
|
(6.7)
|
|
|
1,312.4
|
|
1,144.1
|
|
1,012.3
|
|
345.2
|
|
260.5
|
Cash flows provided by
continuing operating activities
|
|
1,431.5
|
|
1,211.8
|
|
1,424.0
|
|
377.0
|
|
363.1
|
Dividends
declared
|
|
201.1
|
|
100.3
|
|
46.3
|
|
49.8
|
|
28.7
|
Dividends declared
per basic share
|
|
0.80
|
|
0.39
|
|
0.19
|
|
0.20
|
|
0.11
|
Consolidated net
debt leverage ratio
|
|
2.68x
|
|
2.91x
|
|
3.22x
|
|
|
|
|
Table
2 Cash flows from operations for the past eight
quarters (in millions of Canadian dollars)
|
|
Q4‑2020
|
Q3‑2020
|
Q2‑2020
|
Q1‑2020
|
Q4‑2019
|
Q3‑2019
|
Q2‑2019
|
Q1‑2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
317.1
|
$
|
325.9
|
$
|
322.8
|
$
|
302.5
|
$
|
248.5
|
$
|
306.5
|
$
|
281.8
|
$
|
288.5
|
Media
|
|
30.8
|
|
17.0
|
|
−
|
|
(3.6)
|
|
16.9
|
|
17.8
|
|
(3.0)
|
|
(6.9)
|
Sports and
Entertainment
|
|
1.2
|
|
6.7
|
|
2.1
|
|
(4.7)
|
|
1.8
|
|
6.0
|
|
(3.1)
|
|
(2.3)
|
Head
Office
|
|
(3.9)
|
|
(3.5)
|
|
1.2
|
|
0.8
|
|
(6.7)
|
|
2.1
|
|
(0.8)
|
|
(3.0)
|
Total
|
$
|
345.2
|
$
|
346.1
|
$
|
326.1
|
$
|
295.0
|
$
|
260.5
|
$
|
332.4
|
$
|
274.9
|
$
|
276.3
|
2020/2019 financial year comparison
Revenues: $4.32 billion, a $24.0 million (0.6%) increase.
- Revenues increased in Telecommunications ($142.2 million or 4.1% of segment
revenues).
- Revenues decreased in Media ($87.5 million or ‑11.9% of segment revenues)
and in Sports and Entertainment ($34.2 million or ‑17.8%).
Adjusted EBITDA: $1.95 billion, a $73.1 million (3.9%) increase.
- Adjusted EBITDA increased in Telecommunications ($61.0 million or 3.4% of segment adjusted
EBITDA), Media ($7.4 million or 9.9%), and Sports
and Entertainment ($1.4 million
or 19.2%).
- There was a favourable variance at Head Office ($3.3 million).
- The change in the fair value of Quebecor Media stock options
resulted in a $1.5 million
favourable variance in the stock‑based compensation charge in 2020
compared with 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 $7.2 million
favourable variance in the Corporation's stock‑based compensation
charge in 2020.
Net income attributable to shareholders: $607.2 million ($2.41 per basic share) in 2020, compared with
$652.8 million ($2.55 per basic share) in 2019, a
decrease of $45.6 million
($0.14 per basic share).
- The main unfavourable variances were:
-
- $64.3 million decrease in
income from discontinued operations;
- $52.8 million increase in
the depreciation and amortization charge;
- $10.6 million unfavourable
variance in the charge for restructuring of operations and other
items.
- The main favourable variances were:
-
- $73.1 million increase in
adjusted EBITDA;
- $14.5 million favourable
variance in gains and losses on valuation and translation of
financial instruments, including $15.0 million without any tax
consequences.
Adjusted income from continuing operating activities:
$594.5 million ($2.36 per basic share) in 2020, compared with
$581.0 million ($2.27 per basic share) in 2019, an increase
of $13.5 million ($0.09 per basic share).
Cash flows from operations: $1.31 billion in 2020, a $168.3 million (14.7%) increase due to a
$67.8 million decrease in
additions to property, plant and equipment, a $27.4 million decrease in additions to
intangible assets, and the $73.1 million increase in
adjusted EBITDA.
Cash flows provided by continuing operating activities:
$1.43 billion in 2020, a
$219.7 million (18.1%) increase
due primarily to the favourable net change in non‑cash balances
related to operating activities and the increase in adjusted
EBITDA, partially offset by the increase in current income taxes
and the increase in the cash portion related to restructuring of
operations and other items.
Consolidated net debt leverage ratio
Consolidated net debt leverage ratio: 2.68x at December 31, 2020 compared with 2.91x at
December 31, 2019. The decrease was due primarily to net
reductions in drawings on the revolving credit facilities and bank
indebtedness, as the case may be, by Videotron, TVA Group,
Quebecor Media and Quebecor, using free cash flows from continuing
operating activities, and the increase in the trailing 12‑month
adjusted EBITDA.
2020/2019 fourth quarter comparison
Revenues: $1.15 billion, a $10.6 million (0.9%) increase.
- Revenues increased in Telecommunications ($32.3 million or 3.6%).
- Revenues decreased in Media ($22.2 million or ‑10.7% of segment revenues)
and in Sports and Entertainment ($5.9 million or ‑10.8%).
Adjusted EBITDA: $526.8 million, a $32.3 million (6.5%) increase.
- Adjusted EBITDA increased in Telecommunications ($19.0 million or 4.1% of segment adjusted
EBITDA) and in Media ($10.3 million or 29.2%).
- There was a favourable variance at Head Office ($3.5 million).
- Adjusted EBITDA decreased in Sports and Entertainment
($0.5 million or ‑19.2%).
- The change in the fair value of Quebecor Media stock options
resulted in a $1.1 million
favourable variance in the stock‑based compensation charge in the
fourth 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
$3.3 million favourable variance
in the Corporation's stock‑based compensation charge in the fourth
quarter of 2020.
Net income attributable to shareholders: $159.8 million ($0.64 per basic share) in the fourth quarter of
2020, compared with $145.1 million ($0.57 per basic share) in the same period of
2019, a favourable variance of $14.7 million ($0.07 per basic share).
- The main favourable variances were:
-
- $32.3 million increase in
adjusted EBITDA;
- $13.7 million favourable variance
in losses on valuation and translation of financial instruments,
including $12.6 million without any
tax consequences.
- The main unfavourable variances were:
-
- $27.2 million increase in the
depreciation and amortization charge;
- $4.5 million increase in the
charge for restructuring of operations and other items.
Adjusted income from continuing operating activities:
$165.0 million ($0.66 per basic share) in the fourth quarter
of 2020, compared with $159.6 million ($0.63 per basic share) in the same period of
2019, a $5.4 million
increase.
Cash flows from operations: $345.2 million, an $84.7 million (32.5%) increase due primarily
to a $27.5 million decrease in
additions to property, plant and equipment, a $24.9 million decrease in additions to
intangible assets, and the $32.3 million increase in
adjusted EBITDA.
Cash flows provided by continuing operating activities:
$377.0 million, a $13.9 million increase due primarily to the
net change in non‑cash balances related to operating activities and
the increase in adjusted EBITDA in the Telecommunications and Media
segments, partially offset by the increase in current income
taxes.
Financial transactions
- On February 24, 2021, the Board
of Directors of Quebecor declared a quarterly dividend of
$0.275 per share on its Class A
Shares and Class B Shares. The 38% increase is in line with
the Corporation's dividend target of 30% to 50% of free cash
flows.
- On February 11, 2021, TVA Group
amended its $75.0 million
secured revolving credit facility to extend its term from
February 2021 to February 2022 and amend certain terms
and conditions. On February 21, 2020, TVA Group had
lowered the limit on the facility from $150.0 million to $75.0 million and amended certain terms and
conditions.
- On January 22, 2021, Videotron issued $650.0 million aggregate principal amount of
3.125% Senior Notes maturing on January 15, 2031, for net
proceeds of $644.1 million, net
of financing fees of $5.9 million. Videotron intends to use the
proceeds from this offering for general corporate purposes,
including, without limitation, the repayment of a portion of its
current debt.
- Quebecor's $50.0 million
revolving credit facility expired on July
15, 2020 and was not renewed.
Normal course issuer bid
On August 5, 2020, the Corporation
authorized a normal course issuer bid for a maximum of
1,000,000 Class A Shares representing approximately 1.3%
of issued and outstanding Class A Shares, and for a maximum of
6,000,000 Class B Shares representing approximately 3.5%
of issued and outstanding Class B Shares as of July 31, 2020. The purchases can be made from
August 15, 2020 to August 14, 2021 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.
On August 7, 2020, the Corporation
announced that it had entered into an automatic securities purchase
plan ("the plan") with a designated broker 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. The plan received prior approval
from the Toronto Stock Exchange. It came into effect on
August 15, 2020 and terminates on the same date as the
normal course issuer bid.
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.
In 2020, the Corporation purchased and cancelled 6,457,050
Class B Shares for a total cash consideration
of $201.2 million (3,107,356 Class B Shares for
a total cash consideration of $94.6 million in the same period of 2019).
The excess of $163.1 million of the purchase price over
the carrying value of Class B Shares repurchased was recorded
in reduction of retained earnings (an increase of the deficit
of $76.3 million in 2019).
In 2019, 680,000 Class B Shares were issued upon exercise
of stock options for a cash consideration
of $8.3 million. As a result of this transaction, the
contributed surplus was increased by $12.7 million and the stock‑based
compensation liability was reduced by the same amount.
Dividend
On February 24, 2021, the Board of
Directors of Quebecor declared a quarterly dividend of $0.275 per share on its Class A Shares and
Class B Shares, payable on April 6,
2021 to shareholders of record as of the record date of
March 12, 2021. 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
November 4, 2020 on Quebecor Class B Shares
triggered an adjustment to the floor price and ceiling price then
in effect. Accordingly, effective November 19, 2020, the
conversion features of the convertible debentures are subject to an
adjusted floor price of approximately $26.20 per share (that is, a maximum number
of approximately 5,724,218 Class B Shares corresponding to a
ratio of $150.0 million to the adjusted floor price) and
an adjusted ceiling price of approximately $32.76 per share (that is, a minimum number of
approximately 4,579,374 Class B Shares corresponding to a
ratio of $150.0 million to the
adjusted ceiling price).
Detailed financial information
For a detailed analysis of Quebecor's fourth quarter and
full‑year 2020 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/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 fourth
quarter and full‑year 2020 results on February 25, 2021
at 11:00 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 recording of the call will be available
from February 25, 2021 to
May 26, 2021 by dialling 1 877 293‑8133, access
code for participants and recording access code 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
disaster, epidemics, pandemics or other public health crises,
including the COVID‑19 pandemic, political instability is 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, 2020.
The forward‑looking statements in this press release reflect
Quebecor's expectations as of February 25, 2021 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 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 (loss) 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 IFRS
financial 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 consolidated financial
statements. The consolidated financial information for the
three‑month periods ended December 31,
2020 and 2019 presented in Table 3 below is drawn
from the Corporation's unaudited quarterly consolidated financial
statements.
Table
3 Reconciliation of the adjusted EBITDA measure used in
this press release to the net income measure used in the
consolidated financial statements (in millions of
Canadian dollars)
|
|
Years ended
December 31
|
Three months
ended
December 31
|
|
2020
|
2019
|
|
2018
|
2020
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(negative adjusted EBITDA):
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
1,864.4
|
$
|
1,803.4
|
$
|
1,715.6
|
$
|
481.7
|
$
|
462.7
|
Media
|
|
82.2
|
|
74.8
|
|
60.0
|
|
45.6
|
|
35.3
|
Sports and
Entertainment
|
|
8.7
|
|
7.3
|
|
10.5
|
|
2.1
|
|
2.6
|
Head Office
|
|
(2.7)
|
|
(6.0)
|
|
(9.8)
|
|
(2.6)
|
|
(6.1)
|
|
|
1,952.6
|
|
1,879.5
|
|
1,776.3
|
|
526.8
|
|
494.5
|
Depreciation and
amortization
|
|
(803.2)
|
|
(750.4)
|
|
(753.1)
|
|
(213.5)
|
|
(186.3)
|
Financial
expenses
|
|
(328.2)
|
|
(327.5)
|
|
(332.0)
|
|
(79.1)
|
|
(81.4)
|
Gain (loss) on
valuation and translation of financial instruments
|
|
8.0
|
|
(6.5)
|
|
(61.3)
|
|
(0.9)
|
|
(14.6)
|
Restructuring of
operations and other items
|
|
(39.2)
|
|
(28.6)
|
|
(29.1)
|
|
(6.1)
|
|
(1.6)
|
Income
taxes
|
|
(205.8)
|
|
(205.7)
|
|
(162.8)
|
|
(58.1)
|
|
(60.3)
|
Income (loss) from
discontinued operations
|
|
33.2
|
|
97.5
|
|
3.8
|
|
(0.6)
|
|
–
|
Net
income
|
$
|
617.4
|
$
|
658.3
|
$
|
441.8
|
$
|
168.5
|
$
|
150.3
|
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 income (loss) from discontinued operations attributable
to shareholders. Adjusted income from continuing operating
activities, as defined above, is not a measure of results that is
consistent with IFRS. It should not be considered in isolation
or as a substitute for measures of performance prepared in
accordance with IFRS. The Corporation uses adjusted income from
continuing operating activities to analyze trends in the
performance of its businesses. The above‑listed items are excluded
from the calculation of this measure because they impair the
comparability of 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 consolidated financial
statements. The consolidated financial information for the
three‑month periods ended December 31, 2020 and 2019
presented in Table 4 below is drawn from the Corporation's
unaudited quarterly 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
consolidated financial statements (in millions of
Canadian dollars)
|
|
Years ended
December 31
|
Three months
ended
December 31
|
|
2020
|
2019
|
|
2018
|
2020
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income from
continuing operating activities
|
$
|
594.5
|
$
|
581.0
|
$
|
469.8
|
$
|
165.0
|
$
|
159.6
|
Gain (loss) on
valuation and translation of financial instruments
|
|
8.0
|
|
(6.5)
|
|
(61.3)
|
|
(0.9)
|
|
(14.6)
|
Restructuring of
operations and other items
|
|
(39.2)
|
|
(28.6)
|
|
(29.1)
|
|
(6.1)
|
|
(1.6)
|
Income taxes related
to adjustments1
|
|
9.1
|
|
8.0
|
|
19.0
|
|
2.1
|
|
1.4
|
Net income
attributable to non‑controlling interest related to adjustments
|
|
1.6
|
|
1.4
|
|
1.8
|
|
0.3
|
|
0.3
|
Discontinued
operations
|
|
33.2
|
|
97.5
|
|
3.5
|
|
(0.6)
|
|
–
|
Net income
attributable to shareholders
|
$
|
607.2
|
$
|
652.8
|
$
|
403.7
|
$
|
159.8
|
$
|
145.1
|
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
(excluding licence acquisitions and renewals). 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 IFRS financial 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 (excluding
expenditures related to licence acquisitions and renewals), 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 IFRS financial 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 consolidated financial statements. The consolidated
financial information for the three‑month periods ended
December 31, 2020 and 2019 presented
in Tables 5 and 6 is drawn from the Corporation's
unaudited quarterly consolidated financial statements.
Table 5
Cash flows from operations (in millions of Canadian
dollars)
|
|
Years ended
December 31
|
Three months
ended
December 31
|
|
2020
|
2019
|
2018
|
2020
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(negative adjusted EBITDA)
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
1,864.4
|
$
|
1,803.4
|
$
|
1,715.6
|
$
|
481.7
|
$
|
462.7
|
Media
|
|
82.2
|
|
74.8
|
|
60.0
|
|
45.6
|
|
35.3
|
Sports and
Entertainment
|
|
8.7
|
|
7.3
|
|
10.5
|
|
2.1
|
|
2.6
|
Head Office
|
|
(2.7)
|
|
(6.0)
|
|
(9.8)
|
|
(2.6)
|
|
(6.1)
|
|
|
1,952.6
|
|
1,879.5
|
|
1,776.3
|
|
526.8
|
|
494.5
|
Minus
|
|
|
|
|
|
|
|
|
|
|
Additions to property,
plant and equipment:1
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
(402.1)
|
|
(459.3)
|
|
(517.4)
|
|
(103.9)
|
|
(127.3)
|
Media
|
|
(14.3)
|
|
(24.0)
|
|
(29.2)
|
|
(7.6)
|
|
(11.7)
|
Sports and
Entertainment
|
|
(0.6)
|
|
(1.3)
|
|
(1.5)
|
|
(0.4)
|
|
(0.2)
|
Head Office
|
|
(1.5)
|
|
(1.7)
|
|
(6.1)
|
|
(0.2)
|
|
(0.4)
|
|
|
(418.5)
|
|
(486.3)
|
|
(554.2)
|
|
(112.1)
|
|
(139.6)
|
Additions to
intangible assets:2
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
(194.0)
|
|
(218.8)
|
|
(202.8)
|
|
(60.7)
|
|
(86.9)
|
Media
|
|
(23.7)
|
|
(26.0)
|
|
(4.6)
|
|
(7.2)
|
|
(6.7)
|
Sports and
Entertainment
|
|
(2.8)
|
|
(3.6)
|
|
(3.5)
|
|
(0.5)
|
|
(0.6)
|
Head Office
|
|
(1.2)
|
|
(0.7)
|
|
1.1
|
|
(1.1)
|
|
(0.2)
|
|
|
(221.7)
|
|
(249.1)
|
|
(209.8)
|
|
(69.5)
|
|
(94.4)
|
Cash flows from
operations
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
1,268.3
|
|
1,125.3
|
|
995.4
|
|
317.1
|
|
248.5
|
Media
|
|
44.2
|
|
24.8
|
|
26.2
|
|
30.8
|
|
16.9
|
Sports and
Entertainment
|
|
5.3
|
|
2.4
|
|
5.5
|
|
1.2
|
|
1.8
|
Head Office
|
|
(5.4)
|
|
(8.4)
|
|
(14.8)
|
|
(3.9)
|
|
(6.7)
|
|
$
|
1,312.4
|
$
|
1,144.1
|
$
|
1,012.3
|
$
|
345.2
|
$
|
260.5
|
|
|
|
|
|
|
|
|
|
|
|
1
Reconciliation to cash flows used for additions to property,
plant and equipment as per consolidated financial
statements:
|
Years ended
December 31
|
Three months
ended
December 31
|
2020
|
2019
|
2018
|
2020
|
2019
|
Additions to property,
plant and equipment
|
$
|
(418.5)
|
$
|
(486.3)
|
$
|
(554.2)
|
$
|
(112.1)
|
$
|
(139.6)
|
Net (decrease)
increase in current non-cash items related to additions to
property, plant and equipment (excluding government credits
receivable for major capital projects)
|
|
(28.7)
|
|
(15.3)
|
|
4.7
|
|
(10.3)
|
|
15.3
|
Cash flows used for
additions to property, plant and equipment
|
$
|
(447.2)
|
$
|
(501.6)
|
$
|
(549.5)
|
$
|
(122.4)
|
$
|
(124.3)
|
|
|
|
|
|
|
|
|
|
|
|
2
Reconciliation to cash flows used for additions to intangible
assets as per consolidated financial statements:
|
Years ended
December 31
|
Three months
ended
December 31
|
2020
|
2019
|
2018
|
2020
|
2019
|
Additions to
intangible assets
|
$
|
(221.7)
|
$
|
(249.1)
|
$
|
(209.8)
|
$
|
(69.5)
|
$
|
(94.4)
|
Net increase in
current non-cash items related to additions to intangible assets
(excluding government credits receivable for major capital
projects)
|
|
15.8
|
|
8.0
|
|
12.4
|
|
48.7
|
|
22.0
|
Cash flows used for
licence acquisitions
|
|
‑
|
|
(255.8)
|
|
‑
|
|
‑
|
|
‑
|
Cash flows used for
additions to intangible assets
|
$
|
(205.9)
|
$
|
(496.9)
|
$
|
(197.4)
|
$
|
(20.8)
|
$
|
(72.4)
|
Table 6
Free cash flows from continuing operating activities and cash
flows provided by continuing operating activities reported in the
consolidated financial statements. (in millions of
Canadian dollars)
|
|
Years ended
December 31
|
Three months
ended
December 31
|
|
2020
|
2019
|
2018
|
2020
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operations from Table 5
|
$
|
1,312.4
|
$
|
1,144.1
|
$
|
1,012.3
|
$
|
345.2
|
$
|
260.5
|
Plus
(minus)
|
|
|
|
|
|
|
|
|
|
|
Cash portion of
financial expenses
|
|
(320.1)
|
|
(319.4)
|
|
(324.9)
|
|
(77.1)
|
|
(79.4)
|
Cash portion related
to restructuring of operations and other items
|
|
(30.7)
|
|
(9.8)
|
|
(14.2)
|
|
(4.9)
|
|
(1.6)
|
Current income
taxes
|
|
(208.7)
|
|
(107.9)
|
|
(154.9)
|
|
(27.7)
|
|
7.2
|
Other
|
|
2.8
|
|
2.9
|
|
4.8
|
|
(0.7)
|
|
1.6
|
Net change in non‑cash
balances related to operating
activities
|
|
40.0
|
|
(229.3)
|
|
146.3
|
|
(38.6)
|
|
(58.2)
|
Net (decrease)
increase in current non-cash items related to additions to property,
plant and equipment
(excluding government credits receivable for major capital projects)
|
|
(28.7)
|
|
(15.3)
|
|
4.7
|
|
(10.3)
|
|
15.3
|
Net increase in
current non-cash items related to additions to intangible assets (excluding
government credits receivable for major
capital projects)
|
|
15.8
|
|
8.0
|
|
12.4
|
|
48.7
|
|
22.0
|
Free cash flows
from continuing operating activities
|
|
782.8
|
|
473.3
|
|
686.5
|
|
234.6
|
|
167.4
|
Plus
(minus)
|
|
|
|
|
|
|
|
|
|
|
Cash flows used for
additions to property, plant and equipment
|
|
447.2
|
|
501.6
|
|
549.5
|
|
122.4
|
|
124.3
|
Cash flows used for
additions to intangible assets (excluding licence acquisitions and
renewals)
|
|
205.9
|
|
241.1
|
|
197.4
|
|
20.8
|
|
72.4
|
Proceeds from disposal
of assets
|
|
(4.4)
|
|
(4.2)
|
|
(9.4)
|
|
(0.8)
|
|
(1.0)
|
Cash flows
provided by continuing operating activities
|
$
|
1,431.5
|
$
|
1,211.8
|
$
|
1,424.0
|
$
|
377.0
|
$
|
363.1
|
Consolidated net debt leverage ratio
The consolidated net debt leverage ratio represents consolidated
net debt, excluding convertible debentures, divided by the trailing
12‑month adjusted EBITDA. Consolidated net debt, excluding
convertible debentures, represents total long‑term debt plus bank
indebtedness, lease liabilities, the current portion of lease
liabilities and liabilities related to derivative financial
instruments, less assets related to derivative financial
instruments and cash and cash equivalents. The consolidated net
debt leverage ratio serves to evaluate the Corporation's financial
leverage and is used by management and the Board of Directors in
decisions on the Corporation's capital structure, including its
financing strategy, and in managing debt maturity risks. The
consolidated net debt leverage ratio excludes convertible
debentures because, subject to certain conditions, those debentures
can be repurchased at the Corporation's discretion by issuing
Quebecor Class B Shares. Consolidated net debt leverage ratio is
not a measure established in accordance with IFRS. It is not
intended to be used as an alternative to IFRS measures or the
balance sheet to evaluate financial position. The Corporation's
definition of consolidated net debt leverage ratio may not be
identical to similarly titled measures reported by other
companies.
Table 7 provides the calculation of consolidated net debt
leverage ratio and the reconciliation to balance sheet items
reported in Quebecor's consolidated financial statements.
Table
7 Consolidated net debt leverage
ratio (in millions of Canadian dollars)
|
|
Dec. 31,
2020
|
Dec. 31,
2019
|
Dec. 31,
2018
|
|
|
|
|
|
|
|
Total long‑term
debt1
|
$
|
5,786.4
|
$
|
5,986.1
|
$
|
6,461.7
|
Plus
(minus):
|
|
|
|
|
|
|
Lease
liabilities
|
|
139.0
|
|
106.6
|
|
108.4
|
Current portion of
lease liabilities
|
|
34.3
|
|
31.3
|
|
36.0
|
Bank
indebtedness
|
|
1.7
|
|
29.4
|
|
24.3
|
Assets related to
derivative financial instruments
|
|
(625.5)
|
|
(679.8)
|
|
(887.0)
|
Liabilities related to
derivative financial instruments
|
|
28.4
|
|
2.1
|
|
‑
|
Cash and cash
equivalents
|
|
(136.7)
|
|
(14.0)
|
|
(21.0)
|
Consolidated net debt
excluding convertible debentures
|
|
5,227.6
|
|
5,461.7
|
|
5,722.4
|
Divided
by:
|
|
|
|
|
|
|
Trailing 12‑month
adjusted EBITDA
|
$
|
1,952.6
|
$
|
1,879.5
|
$
|
1,776.3
|
Consolidated net debt
leverage ratio
|
|
2.68x
|
|
2.91x
|
|
3.22x
|
1
|
Excluding changes in
the fair value of long‑term debt related to hedged interest rate
risk and financing fees.
|
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 Internet access, television and Club illico
services, and subscriber connections to the mobile and wireline
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 Internet access, television,
Club illico, mobile and wireline telephony services by the
total average number of RGUs from Internet access, television,
mobile and wireline 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
|
|
Twelve months
ended
|
(unaudited)
|
December
31
|
|
December
31
|
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,146.8
|
$
|
1,136.2
|
|
$
|
4,317.8
|
$
|
4,293.8
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
164.3
|
|
184.2
|
|
|
635.5
|
|
700.8
|
Purchase of goods and
services
|
|
455.7
|
|
457.5
|
|
|
1,729.7
|
|
1,713.5
|
Depreciation and
amortization
|
|
213.5
|
|
186.3
|
|
|
803.2
|
|
750.4
|
Financial
expenses
|
|
79.1
|
|
81.4
|
|
|
328.2
|
|
327.5
|
Loss (gain) on
valuation and translation of financial instruments
|
|
0.9
|
|
14.6
|
|
|
(8.0)
|
|
6.5
|
Restructuring of
operations and other items
|
|
6.1
|
|
1.6
|
|
|
39.2
|
|
28.6
|
Income before
income taxes
|
|
227.2
|
|
210.6
|
|
|
790.0
|
|
766.5
|
Income taxes
(recovery):
|
|
|
|
|
|
|
|
|
|
Current
|
|
27.7
|
|
(7.2)
|
|
|
208.7
|
|
107.9
|
Deferred
|
|
30.4
|
|
67.5
|
|
|
(2.9)
|
|
97.8
|
|
|
58.1
|
|
60.3
|
|
|
205.8
|
|
205.7
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
169.1
|
|
150.3
|
|
|
584.2
|
|
560.8
|
(Loss) income from
discontinued operations
|
|
(0.6)
|
|
-
|
|
|
33.2
|
|
97.5
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
168.5
|
$
|
150.3
|
|
$
|
617.4
|
$
|
658.3
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations attributable to
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
160.4
|
$
|
145.1
|
|
$
|
574.0
|
$
|
555.3
|
Non-controlling
interests
|
|
8.7
|
|
5.2
|
|
|
10.2
|
|
5.5
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
159.8
|
$
|
145.1
|
|
$
|
607.2
|
$
|
652.8
|
Non-controlling
interests
|
|
8.7
|
|
5.2
|
|
|
10.2
|
|
5.5
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to shareholders
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
From
continuing operations
|
$
|
0.64
|
$
|
0.57
|
|
$
|
2.28
|
$
|
2.17
|
From
discontinued operations
|
|
-
|
|
-
|
|
|
0.13
|
|
0.38
|
Net
income
|
|
0.64
|
|
0.57
|
|
|
2.41
|
|
2.55
|
Diluted:
|
|
|
|
|
|
|
|
|
|
From
continuing operations
|
|
0.64
|
|
0.57
|
|
|
2.22
|
|
2.17
|
From
discontinued operations
|
|
-
|
|
-
|
|
|
0.13
|
|
0.38
|
Net
income
|
|
0.64
|
|
0.57
|
|
|
2.35
|
|
2.55
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (in millions)
|
|
249.1
|
|
254.8
|
|
|
251.6
|
|
255.6
|
Weighted average
number of diluted shares (in millions)
|
|
253.8
|
|
255.0
|
|
|
256.3
|
|
255.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUEBECOR
INC.
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
Three months
ended
|
|
Twelve months
ended
|
(unaudited)
|
December
31
|
|
December
31
|
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
169.1
|
$
|
150.3
|
|
$
|
584.2
|
$
|
560.8
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be
reclassified to income:
|
|
|
|
|
|
|
|
|
|
Cash flow
hedges:
|
|
|
|
|
|
|
|
|
|
(Loss) gain on
valuation of derivative financial instruments
|
|
(36.0)
|
|
2.2
|
|
|
(17.1)
|
|
73.8
|
Deferred income
taxes
|
|
8.9
|
|
1.9
|
|
|
6.4
|
|
(2.8)
|
Items that will not
be reclassified to income:
|
|
|
|
|
|
|
|
|
|
Defined benefit
plans:
|
|
|
|
|
|
|
|
|
|
Re-measurement gain
(loss)
|
|
2.3
|
|
(70.1)
|
|
|
(84.7)
|
|
(70.1)
|
Deferred income
taxes
|
|
(0.1)
|
|
18.7
|
|
|
22.5
|
|
18.7
|
|
|
|
|
|
|
|
|
|
|
Reclassification to
income:
|
|
|
|
|
|
|
|
|
|
Gain related to cash
flow hedges
|
|
-
|
|
-
|
|
|
-
|
|
(1.1)
|
Deferred income
taxes
|
|
-
|
|
-
|
|
|
-
|
|
0.7
|
|
|
(24.9)
|
|
(47.3)
|
|
|
(72.9)
|
|
19.2
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income from continuing operations
|
|
144.2
|
|
103.0
|
|
|
511.3
|
|
580.0
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
discontinued operations
|
|
(0.6)
|
|
-
|
|
|
33.2
|
|
97.5
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
$
|
143.6
|
$
|
103.0
|
|
$
|
544.5
|
$
|
677.5
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income from continuing operations attributable to
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
133.9
|
$
|
97.2
|
|
$
|
504.2
|
$
|
573.9
|
Non-controlling
interests
|
|
10.3
|
|
5.8
|
|
|
7.1
|
|
6.1
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income attributable to
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
133.3
|
$
|
97.2
|
|
$
|
537.4
|
$
|
671.4
|
Non-controlling
interests
|
|
10.3
|
|
5.8
|
|
|
7.1
|
|
6.1
|
QUEBECOR
INC.
|
|
|
|
|
|
|
SEGMENTED
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and
Inter-
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
940.9
|
$
|
185.8
|
$
|
48.8
|
$
|
(28.7)
|
$
|
1,146.8
|
Employee
costs
|
|
98.8
|
|
52.2
|
|
8.7
|
|
4.6
|
|
164.3
|
Purchase of goods and
services
|
|
360.4
|
|
88.0
|
|
38.0
|
|
(30.7)
|
|
455.7
|
Adjusted
EBITDA1
|
|
481.7
|
|
45.6
|
|
2.1
|
|
(2.6)
|
|
526.8
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
213.5
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
79.1
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
0.9
|
Restructuring of
operations and other items
|
|
|
|
|
|
|
|
|
|
6.1
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
$
|
227.2
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used
for
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
117.0
|
$
|
4.7
|
$
|
0.4
|
$
|
0.3
|
$
|
122.4
|
Additions to
intangible assets
|
|
14.4
|
|
5.1
|
|
0.5
|
|
0.8
|
|
20.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and Inter-
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
908.6
|
$
|
208.0
|
$
|
54.7
|
$
|
(35.1)
|
$
|
1,136.2
|
Employee
costs
|
|
106.8
|
|
57.8
|
|
9.5
|
|
10.1
|
|
184.2
|
Purchase of goods and
services
|
|
339.1
|
|
114.9
|
|
42.6
|
|
(39.1)
|
|
457.5
|
Adjusted
EBITDA1
|
|
462.7
|
|
35.3
|
|
2.6
|
|
(6.1)
|
|
494.5
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
186.3
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
81.4
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
14.6
|
Restructuring of
operations and other items
|
|
|
|
|
|
|
|
|
|
1.6
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
$
|
210.6
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used
for
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
115.6
|
$
|
8.1
|
$
|
0.2
|
$
|
0.4
|
$
|
124.3
|
Additions to
intangible assets
|
|
65.7
|
|
5.7
|
|
0.6
|
|
0.4
|
|
72.4
|
|
|
Twelve months
ended December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and
Inter-
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
3,622.6
|
$
|
650.5
|
$
|
158.0
|
$
|
(113.3)
|
$
|
4,317.8
|
Employee
costs
|
|
403.8
|
|
176.7
|
|
30.3
|
|
24.7
|
|
635.5
|
Purchase of goods and
services
|
|
1,354.4
|
|
391.6
|
|
119.0
|
|
(135.3)
|
|
1,729.7
|
Adjusted
EBITDA1
|
|
1,864.4
|
|
82.2
|
|
8.7
|
|
(2.7)
|
|
1,952.6
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
803.2
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
328.2
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
(8.0)
|
Restructuring of
operations and other items
|
|
|
|
|
|
|
|
|
|
39.2
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
$
|
790.0
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used
for
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
429.3
|
$
|
15.9
|
$
|
0.6
|
$
|
1.4
|
$
|
447.2
|
Additions to
intangible assets
|
|
180.1
|
|
22.1
|
|
2.8
|
|
0.9
|
|
205.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and Inter-
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
3,480.4
|
$
|
738.0
|
$
|
192.2
|
$
|
(116.8)
|
$
|
4,293.8
|
Employee
costs
|
|
398.6
|
|
228.6
|
|
38.6
|
|
35.0
|
|
700.8
|
Purchase of goods and
services
|
|
1,278.4
|
|
434.6
|
|
146.3
|
|
(145.8)
|
|
1,713.5
|
Adjusted
EBITDA1
|
|
1,803.4
|
|
74.8
|
|
7.3
|
|
(6.0)
|
|
1,879.5
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
750.4
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
327.5
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
6.5
|
Restructuring of
operations and other items
|
|
|
|
|
|
|
|
|
|
28.6
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
$
|
766.5
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used
for
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
476.8
|
$
|
21.8
|
$
|
1.3
|
$
|
1.7
|
$
|
501.6
|
Additions to
intangible assets
|
|
468.0
|
|
24.8
|
|
3.5
|
|
0.6
|
|
496.9
|
|
|
|
|
|
|
|
|
|
|
|
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, loss (gain) on valuation and translation
of financial instruments,
restructuring of operations and other items, income taxes and
(loss) 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
|
|
terests
|
|
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of
December 31, 2018
|
$
|
1,065.9
|
$
|
4.7
|
$
|
(507.9)
|
$
|
(82.7)
|
$
|
88.5
|
$
|
568.5
|
Net income
|
|
-
|
|
-
|
|
652.8
|
|
-
|
|
5.5
|
|
658.3
|
Other comprehensive
income
|
|
-
|
|
-
|
|
-
|
|
18.6
|
|
0.6
|
|
19.2
|
Dividends
|
|
-
|
|
-
|
|
(100.3)
|
|
-
|
|
-
|
|
(100.3)
|
Issuance of Class B
Shares
|
|
8.3
|
|
12.7
|
|
-
|
|
-
|
|
-
|
|
21.0
|
Repurchase of Class B
Shares
|
|
(18.3)
|
|
-
|
|
(76.3)
|
|
-
|
|
-
|
|
(94.6)
|
Balance as of
December 31, 2019
|
|
1,055.9
|
|
17.4
|
|
(31.7)
|
|
(64.1)
|
|
94.6
|
|
1,072.1
|
Net income
|
|
-
|
|
-
|
|
607.2
|
|
-
|
|
10.2
|
|
617.4
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
-
|
|
(69.8)
|
|
(3.1)
|
|
(72.9)
|
Dividends
|
|
-
|
|
-
|
|
(201.1)
|
|
-
|
|
(0.2)
|
|
(201.3)
|
Repurchase of Class B
Shares
|
|
(38.1)
|
|
-
|
|
(163.1)
|
|
-
|
|
-
|
|
(201.2)
|
Balance as of
December 31, 2020
|
$
|
1,017.8
|
$
|
17.4
|
$
|
211.3
|
$
|
(133.9)
|
$
|
101.5
|
$
|
1,214.1
|
QUEBECOR
INC.
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
Three months
ended
|
|
Twelve months
ended
|
(unaudited)
|
December
31
|
|
December
31
|
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows related
to operating activities
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
169.1
|
$
|
150.3
|
|
$
|
584.2
|
$
|
560.8
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
166.8
|
|
148.0
|
|
|
622.1
|
|
598.2
|
Amortization of
intangible assets
|
|
36.2
|
|
29.6
|
|
|
143.4
|
|
116.7
|
Amortization of
right-of-use assets
|
|
10.5
|
|
8.7
|
|
|
37.7
|
|
35.5
|
Loss (gain) on
valuation and translation of financial instruments
|
|
0.9
|
|
14.6
|
|
|
(8.0)
|
|
6.5
|
Impairment of
assets
|
|
1.2
|
|
-
|
|
|
8.5
|
|
18.8
|
Amortization of
financing costs
|
|
2.0
|
|
2.0
|
|
|
8.1
|
|
8.1
|
Deferred income
taxes
|
|
30.4
|
|
67.5
|
|
|
(2.9)
|
|
97.8
|
Other
|
|
(1.5)
|
|
0.6
|
|
|
(1.6)
|
|
(1.3)
|
|
|
415.6
|
|
421.3
|
|
|
1,391.5
|
|
1,441.1
|
Net change in
non-cash balances related to operating activities
|
|
(38.6)
|
|
(58.2)
|
|
|
40.0
|
|
(229.3)
|
Cash flows provided
by continuing operating activities
|
|
377.0
|
|
363.1
|
|
|
1,431.5
|
|
1,211.8
|
Cash flows related
to investing activities
|
|
|
|
|
|
|
|
|
|
Business
acquisitions
|
|
(36.3)
|
|
-
|
|
|
(47.1)
|
|
(35.6)
|
Business
disposals
|
|
0.2
|
|
-
|
|
|
0.2
|
|
260.7
|
Additions to
property, plant and equipment
|
|
(122.4)
|
|
(124.3)
|
|
|
(447.2)
|
|
(501.6)
|
Additions to
intangible assets
|
|
(20.8)
|
|
(72.4)
|
|
|
(205.9)
|
|
(496.9)
|
Proceeds from
disposals of assets
|
|
0.8
|
|
1.0
|
|
|
4.4
|
|
4.2
|
Other
|
|
33.1
|
|
(5.9)
|
|
|
(18.3)
|
|
(30.9)
|
Cash flows used in
continuing investing activities
|
|
(145.4)
|
|
(201.6)
|
|
|
(713.9)
|
|
(800.1)
|
Cash flows related
to financing activities
|
|
|
|
|
|
|
|
|
|
Net change in bank
indebtedness
|
|
(13.5)
|
|
1.1
|
|
|
(27.7)
|
|
5.1
|
Net change under
revolving facilities
|
|
(2.1)
|
|
(870.8)
|
|
|
(127.0)
|
|
(589.5)
|
Issuance of long-term
debt, net of financing fees
|
|
-
|
|
790.7
|
|
|
-
|
|
790.7
|
Repayment of
long-term debt
|
|
(0.3)
|
|
(45.2)
|
|
|
(1.3)
|
|
(488.6)
|
Repayment of lease
liabilities
|
|
(10.6)
|
|
(9.5)
|
|
|
(41.9)
|
|
(39.4)
|
Settlement of hedging
contracts
|
|
(0.8)
|
|
(0.8)
|
|
|
(1.6)
|
|
90.0
|
Issuance of Class B
Shares
|
|
-
|
|
5.6
|
|
|
-
|
|
8.3
|
Repurchase of Class B
Shares
|
|
(57.8)
|
|
(14.1)
|
|
|
(201.2)
|
|
(94.6)
|
Dividends
|
|
(49.8)
|
|
(28.7)
|
|
|
(201.1)
|
|
(100.3)
|
Dividends paid to
non-controlling interests
|
|
-
|
|
-
|
|
|
(0.2)
|
|
-
|
Cash flows used in
continuing financing activities
|
|
(134.9)
|
|
(171.7)
|
|
|
(602.0)
|
|
(418.3)
|
|
|
|
|
|
|
|
|
|
|
Cash flows provided
by (used in) continuing operations
|
|
96.7
|
|
(10.2)
|
|
|
115.6
|
|
(6.6)
|
|
|
|
|
|
|
|
|
|
|
Cash flows (used in)
provided by discontinued operations
|
|
(0.7)
|
|
-
|
|
|
7.1
|
|
(0.7)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
40.7
|
|
24.2
|
|
|
14.0
|
|
21.3
|
Cash and cash
equivalents at end of period
|
$
|
136.7
|
$
|
14.0
|
|
$
|
136.7
|
$
|
14.0
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents consist of
|
|
|
|
|
|
|
|
|
|
Cash
|
$
|
135.4
|
$
|
5.1
|
|
$
|
135.4
|
$
|
5.1
|
Cash
equivalents
|
|
1.3
|
|
8.9
|
|
|
1.3
|
|
8.9
|
|
$
|
136.7
|
$
|
14.0
|
|
$
|
136.7
|
$
|
14.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and taxes
reflected as operating activities
|
|
|
|
|
|
|
|
|
|
Cash interest
payments
|
$
|
117.6
|
$
|
103.9
|
|
$
|
316.1
|
$
|
307.2
|
Cash income tax
payments (net of refunds)
|
|
33.9
|
|
3.0
|
|
|
127.5
|
|
238.0
|
QUEBECOR
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
|
(in millions of
Canadian dollars)
|
(unaudited)
|
December
31
|
December
31
|
|
2020
|
2019
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
136.7
|
|
$
|
14.0
|
Accounts
receivable
|
|
600.6
|
|
|
548.0
|
Contract
assets
|
|
174.9
|
|
|
160.3
|
Income
taxes
|
|
4.9
|
|
|
19.1
|
Inventories
|
|
250.7
|
|
|
240.4
|
Other current
assets
|
|
113.0
|
|
|
121.2
|
|
|
1,280.8
|
|
|
1,103.0
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Property, plant and
equipment
|
|
3,189.2
|
|
|
3,415.9
|
Intangible
assets
|
|
1,466.7
|
|
|
1,444.0
|
Goodwill
|
|
2,714.0
|
|
|
2,692.9
|
Right-of-use
assets
|
|
143.1
|
|
|
110.4
|
Derivative financial
instruments
|
|
625.5
|
|
|
679.8
|
Deferred income
taxes
|
|
45.5
|
|
|
31.2
|
Other
assets
|
|
396.8
|
|
|
248.7
|
|
|
8,580.8
|
|
|
8,622.9
|
Total
assets
|
$
|
9,861.6
|
|
$
|
9,725.9
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Bank
indebtedness
|
$
|
1.7
|
|
$
|
29.4
|
Accounts payable,
accrued charges and provisions
|
|
872.2
|
|
|
809.6
|
Deferred
revenue
|
|
307.5
|
|
|
332.7
|
Income
taxes
|
|
70.0
|
|
|
4.2
|
Current portion of
long-term debt
|
|
28.5
|
|
|
57.2
|
Current portion of
lease liabilities
|
|
34.3
|
|
|
31.3
|
|
|
1,314.2
|
|
|
1,264.4
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
Long-term
debt
|
|
5,744.9
|
|
|
5,900.3
|
Derivative financial
instruments
|
|
28.4
|
|
|
2.1
|
Convertible
debentures
|
|
150.0
|
|
|
150.0
|
Lease
liabilities
|
|
139.0
|
|
|
106.6
|
Deferred income
taxes
|
|
848.2
|
|
|
859.2
|
Other
liabilities
|
|
422.8
|
|
|
371.2
|
|
|
7,333.3
|
|
|
7,389.4
|
Equity
|
|
|
|
|
|
Capital
stock
|
|
1,017.8
|
|
|
1,055.9
|
Contributed
surplus
|
|
17.4
|
|
|
17.4
|
Retained earnings
(deficit)
|
|
211.3
|
|
|
(31.7)
|
Accumulated other
comprehensive loss
|
|
(133.9)
|
|
|
(64.1)
|
Equity
attributable to shareholders
|
|
1,112.6
|
|
|
977.5
|
Non-controlling
interests
|
|
101.5
|
|
|
94.6
|
|
|
1,214.1
|
|
|
1,072.1
|
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
9,861.6
|
|
$
|
9,725.9
|
View original
content:http://www.prnewswire.com/news-releases/quebecor-inc-announces-38-increase-in-quarterly-dividend-and-reports-consolidated-results-for-fourth-quarter-and-full-year-2020-301235071.html
SOURCE Quebecor