MONTRÉAL, May 13, 2021 /PRNewswire/ - Quebecor Inc.
("Quebecor" or the "Corporation") today reported its consolidated
financial results for the first quarter of 2021. Quebecor
consolidates the financial results of its wholly owned Quebecor
Media Inc. ("Quebecor Media") subsidiary.
First quarter 2021 highlights
- Revenues: $1.09 billion, up
$35.6 million (3.4%) from the same
period of 2020.
- Adjusted EBITDA:1 $452.7
million, up $16.0 million
(3.7%).
- Adjusted income from continuing operating
activities:2 $129.9
million ($0.52 per basic
share), an increase of $18.4 million
($0.08 per basic share) or
16.5%.
- Net income attributable to shareholders: $121.3 million ($0.49 per basic share), a decrease of
$10.3 million ($0.03 per basic share).
- Cash flows from operations:3 $307.6 million, up $12.6
million (4.3%).
- The Telecommunications segment grew its revenues by
$39.3 million (4.5%) and its adjusted
EBITDA by $15.4 million (3.5%) in the
first quarter of 2021.
- Videotron Ltd. ("Videotron") significantly increased its
revenues from mobile services and equipment ($23.0 million or 11.1%), Internet access
($19.1 million or 6.9%) and wireline
equipment ($18.4 million or 65.0%) in
the first quarter of 2021.
- There was a net increase of 22,100 revenue-generating
units4 ("RGUs") (1.5%) in mobile telephony and 10,600
(0.6%) in Internet access.
- On April 1, 2021, Videotron
announced the acquisition of Cablovision Warwick Inc. ("Cablovision
Warwick") and its network, which has been serving the
municipalities of Warwick, Kingsey Falls and Saint-Félix-de-Kingsey
in the Centre-du-Québec region for more than four decades.
Cablovision Warwick's customers will therefore have access to
Videotron's network as well as its products and services.
- On March 22, 2021, Videotron
entered into agreements with the Québec government and Government
of Canada jointly aimed at
achieving the government's targets for the roll out of high speed
Internet services in various regions of Québec. Under these
agreements, Videotron will expand its high-speed Internet network
to connect approximately 37,000 more households and the governments
have undertaken to provide financial assistance in the amount of
approximately $258.0 million, which
will be used in its entirety for the extension of Videotron's
network.
- On February 10, 2021, the Sports
and Entertainment segment announced the acquisition of Les Disques
Audiogramme inc., the largest independent French-language record
label in North America, which also
includes Éditorial Avenue, Canada's largest French-language music
publisher, in order to continue supporting talented Québec artists
and promote the dissemination of Québec music.
___________________________
|
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."
|
"We're off to a good start in 2021, despite the challenges
created by the public health situation, which continues to impact
some of our business segments," said Pierre Karl Péladeau,
President and Chief Executive Officer of Quebecor. "Due in large
part to Videotron's solid financial and operational performance,
the Corporation increased its EBITDA by 3.7% and its adjusted
income from continuing operating activities by 16.5% in the
first quarter of 2021. This performance generated a 4.3% growth in
our cash flows from operations.
"We are proud of our acquisition in the first quarter of 2021 of
Cablovision Warwick, a company that has been part of the landscape
in the Centre-du-Québec region for more than 40 years, along
with its network. This transaction further illustrates our
commitment to connecting people in all parts of Québec and
providing them with a unique, world-class customer experience. We
are also pleased that our network will be expanded by
September 30, 2022 to provide high-speed Internet access
to approximately 37,000 more households in various remote
regions of Québec, under a partnership with the Québec government
and in collaboration with the Government of Canada," Pierre Karl Péladeau added.
"Offering innovative, effective solutions is at the core of our
business model and we continue to successfully roll out our
5G network in Québec," said Jean–François Pruneau, President
and Chief Executive Officer of Videotron. "We also continue winning
new mobile customers. During the last 12 months, we added
133,400 subscriber connections, partly because of Fizz's new mobile
device offering. We also saw demand growth for our Internet access
service, with 74,000 customers added during the period, as well as
for our Helix home entertainment and connected lifestyle platform,
which has now reached 826,000 RGUs. We recently announced the
arrival of the eagerly awaited Helix Fi 2 smart terminal,
available first to Videotron customers. It features the most
powerful Wi-Fi on the Québec market, powered by innovative,
high-performance technology.
"I am proud of the special relationship Videotron has developed
with Quebecers over the years. For the 16th year in a row,
Videotron ranked as the most respected telecom company in Québec on
Léger's Reputation survey," Jean-François Pruneau concluded.
"Although the current crisis continued to impact its operations,
TVA Group Inc. ("TVA Group") was able to increase its revenues
by $3.7 million during the quarter," noted Pierre Karl
Péladeau, Acting President and Chief Executive Officer of
TVA Group. "Its adjusted EBITDA decreased by $6.4 million, essentially because of higher
content costs at the TVA Sports specialty channel due to the
National Hockey League's compressed 2020-2021 season.
"The advertising market for our broadcasting activities showed
encouraging growth compared with the same quarter of 2020, as
did the advertising market for our digital platforms, reflecting
the growth in our non-traditional advertising revenues.
TVA Group's programs continued to stand out and they remained
among the most watched in Québec, with a total consolidated market
share of 39.4%," commented Pierre Karl Péladeau.
"We were very pleased with the Canadian capital market's
response to Videotron's issuance of high-yield Senior Notes in the
aggregate principal amount of $650.0 million bearing interest at 3.125%,
the lowest coupon rate ever reached by an issuer on this market,"
said Hugues Simard, Chief Financial Officer of Quebecor. "In
the wake of this issue, which brings our net available liquidity to
$2.6 billion, we are in a strong
position heading into the upcoming spectrum auction and our Notes
maturities."
"I extend my heartfelt thanks to Jean-François Pruneau, who is
leaving the Corporation on June 4, 2021, for his many
accomplishments at Quebecor over the past 20 years," said
Pierre Karl Péladeau. "His strong leadership and keen business
acumen have made an important contribution to developing the
Corporation's business plan and building its solidity. I wish him
every success in his new challenges.
"2021 has started on a strong footing and we continue focusing
on our growth drivers in order to consolidate our position as an
industry leader, while maintaining prudent management until the
full resumption of economic activity. We are bullish about the
future and continue working to create long-term value for all our
stakeholders. Finally, I would like to pay tribute once again to
the exceptional work of all our employees, who are the pillars of
our daily success," concluded Pierre Karl Péladeau.
COVID-19 pandemic
The COVID-19 pandemic continues to have a significant impact on
the economic environment in Canada
and around the world. In order to limit the spread of the virus,
the Québec government has imposed a number of restrictions and
special preventive measures since the beginning of this health
crisis, including the suspension of some business activities. Since
March 2020, this health crisis has curtailed the operations of
many of Quebecor's business partners and led to a significant
slowdown in some of the Corporation's segments. Among other
impacts, the restrictions and preventive measures imposed by the
Québec government caused a reduction in volume at Videotron retail
outlets; a reduction in advertising revenues, a decrease in sports
events broadcast by the TVA Sports specialty channel and a
reduction in film and audiovisual content activity in the Media
segment in 2020; and the cancellation of most shows and events
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. Due to the decrease in their revenues,
most of the business units in the Media segment and Sports and
Entertainment segment have qualified for the Canadian Emergency
Wage Subsidy and subsidies totalling $5.6 million were
recorded in the first quarter of 2021 as a reduction in employee
costs (no amount in the first quarter of 2020).
Non-IFRS Financial Measures
The Corporation uses measures not standardized under
International Financial Reporting Standards ("IFRS"). The
Corporation added the "consolidated net debt leverage ratio"
measure in the third quarter of 2020. See the definition of this
measure under "Definitions."
Financial table
Table
1
|
Consolidated
summary of income, cash flows and balance sheet
|
(in millions of
Canadian dollars, except number of shares and per basic share
data)
|
|
|
Three months
ended
March 31
|
|
2021
|
2020
|
|
|
|
|
|
Income
|
|
|
|
|
Revenues:
|
|
|
|
|
Telecommunications
|
$
|
914.0
|
$
|
874.7
|
Media
|
|
174.8
|
|
174.8
|
Sports and
Entertainment
|
|
31.2
|
|
34.8
|
Inter-segment
|
|
(28.9)
|
|
(28.8)
|
|
|
1,091.1
|
|
1,055.5
|
Adjusted EBITDA
(negative adjusted EBITDA):
|
|
|
|
Telecommunications
|
|
450.9
|
|
435.5
|
Media
|
|
1.3
|
|
4.1
|
Sports and
Entertainment
|
|
2.1
|
|
(3.8)
|
Head Office
|
|
(1.6)
|
|
0.9
|
|
|
452.7
|
|
436.7
|
Depreciation and
amortization
|
|
(195.3)
|
|
(198.1)
|
Financial
expenses
|
|
(83.1)
|
|
(87.4)
|
(Loss) gain on
valuation and translation of financial instruments
|
|
(5.8)
|
|
23.3
|
Restructuring of
operations and other items
|
|
(4.5)
|
|
(3.9)
|
Income
taxes
|
|
(44.0)
|
|
(40.5)
|
Income from
discontinued operations
|
|
˗
|
|
1.3
|
Net
income
|
$
|
120.0
|
$
|
131.4
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations attributable to shareholders
|
$
|
121.3
|
$
|
130.3
|
Net income
attributable to shareholders
|
|
121.3
|
|
131.6
|
Adjusted income from
continuing operating activities
|
|
129.9
|
|
111.5
|
|
|
|
|
|
Per basic
share:
|
|
|
|
|
Income
from continuing operations attributable to shareholders
|
|
0.49
|
|
0.51
|
Net
income attributable to shareholders
|
|
0.49
|
|
0.52
|
Adjusted
income from continuing operating activities
|
|
0.52
|
|
0.44
|
|
|
|
|
|
Additions to
property, plant and equipment and to intangible assets
|
|
|
|
|
Telecommunications
|
$
|
138.0
|
$
|
133.0
|
Media
|
|
5.7
|
|
7.7
|
Sports and
Entertainment
|
|
1.0
|
|
0.9
|
Head Office
|
|
0.4
|
|
0.1
|
|
|
145.1
|
|
141.7
|
Cash
flows
|
|
|
|
|
Cash flows from
operations:
|
|
|
|
|
Telecommunications
|
|
312.9
|
|
302.5
|
Media
|
|
(4.4)
|
|
(3.6)
|
Sports and
Entertainment
|
|
1.1
|
|
(4.7)
|
Head Office
|
|
(2.0)
|
|
0.8
|
|
|
307.6
|
|
295.0
|
Cash flows
provided by continuing operating activities
|
|
261.6
|
|
321.6
|
|
|
|
|
|
|
March 31
2021
|
Dec. 31
2020
|
Balance
sheet
|
|
|
|
|
Cash and cash
equivalents
|
$
|
759.3
|
$
|
136.7
|
Working
capital
|
|
633.5
|
|
(33.4)
|
Net assets related to
derivative financial instruments
|
|
534.3
|
|
597.1
|
Total
assets
|
|
10,690.9
|
|
9,861.6
|
Total debt (current
and long–term)
|
|
6,356.1
|
|
5,773.4
|
Lease liabilities
(current and long term)
|
|
179.4
|
|
173.3
|
Convertible
debentures, including embedded derivatives
|
|
162.1
|
|
156.5
|
Equity attributable to
shareholders
|
|
1,203.8
|
|
1,112.6
|
Equity
|
|
1,310.7
|
|
1,214.1
|
Number of common
shares outstanding (in millions)
|
|
245.5
|
|
248.2
|
|
|
|
|
|
Consolidated net
debt leverage ratio
|
|
2.67x
|
|
2.68x
|
2021/2020 first quarter comparison
Revenues: $1.09 billion, a $35.6 million (3.4%) increase.
- Revenues increased in Telecommunications ($39.3 million or 4.5% of segment revenues).
- Revenues were flat in the Media segment.
- Revenues decreased in Sports and Entertainment ($3.6 million or -10.3%).
Adjusted EBITDA: $452.7 million, a $16.0 million (3.7%) increase.
- Adjusted EBITDA increased in Telecommunications ($15.4 million or 3.5% of segment adjusted EBITDA)
and in Sports and Entertainment ($5.9
million).
- Adjusted EBITDA decreased in Media ($2.8
million or -68.3%), and there was an unfavourable variance
at Head Office ($2.5 million) due
mainly to an unfavourable variance in the stock-based compensation
charge.
- The change in the fair value of Quebecor and Quebecor Media
stock options and in the value of Quebecor stock-price-based share
units resulted in a $5.5 million
unfavourable variance in the Corporation's stock-based compensation
charge in the first quarter of 2021 compared with the same period
of 2020.
Net income attributable to
shareholders: $121.3 million ($0.49 per basic share) in the first quarter
of 2021, compared with $131.6 million ($0.52 per basic share) in the same period of
2020, a decrease of $10.3 million ($0.03 per basic share).
- The main unfavourable variances were:
-
- $29.1 million unfavourable
variance in losses and gains on valuation and translation of
financial instruments, including $28.2
million without any tax consequences;
- $3.5 million increase in the
income tax expense.
- The main favourable variances were:
-
- $16.0 million increase in
adjusted EBITDA;
- $4.3 million decrease related to
financial expenses;
- $2.8 million decrease in the
depreciation and amortization charge.
Adjusted income from continuing operating
activities: $129.9 million ($0.52 per basic share) in the first quarter
of 2021, compared with $111.5 million ($0.44 per basic share) in the same period of
2020, an increase of $18.4 million ($0.08 per basic share).
Cash flows from operations: $307.6 million, a
$12.6 million (4.3%) increase
due to the $16.0 million
increase in adjusted EBITDA and a $6.5 million decrease in additions to
intangible assets, partially offset by a $9.9 million increase in additions to
property, plant and equipment.
Cash flows provided by continuing operating
activities: $261.6 million, a $60.0 million decrease due primarily to the
unfavourable net change in non-cash balances related to operating
activities, partially offset by the increase in adjusted
EBITDA.
Consolidated net debt leverage ratio: 2.67x at
March 31, 2021 compared with 2.68x at
December 31, 2020.
Investing and financing operations
- On April 1, 2021, Alithya Group
Inc ("Alithya"), a strategy and digital transformation leader,
acquired the firm R3D Conseil inc, of which Quebecor was one of the
main shareholders. As part of this transaction, Quebecor obtained
11.9% of Alithya's share capital and 6.7% of voting rights related
to Alithya's issued and outstanding shares.
- 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 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
$644.0 million, net of financing fees
of $6.0 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.
Senior management
- On April 27, 2021, Quebecor
announced that Jean-François Pruneau, President and Chief Executive
Officer of Videotron, was leaving his position to devote himself to
personal investment projects. Mr. Pruneau will stay on until
June 4, 2021 to oversee the
transition. In the wake of this announcement, it has been decided
that Pierre Karl Péladeau, President and Chief Executive Officer of
Quebecor Media will take over the responsibilities of the President
of Videotron to further cement the concerted leadership and dynamic
of efficiency between the two organizations.
- France Lauzière, President and Chief Executive Officer of TVA
Group and Chief Content Officer of Quebecor Content, has taken time
off from her duties for a period of up to six months, starting
April 14, 2021, for family reasons.
During her absence, Pierre Karl Péladeau, President and Chief
Executive Officer of Quebecor, is assuming her duties at TVA Group
and Quebecor Content on an acting basis.
- The Chief Operating Officer and Chief Legal Officer of
Quebecor, Marc M. Tremblay,
indicated to the Corporation some time ago that he wanted to plan
for his retirement at a date to be confirmed. The Corporation,
wishing for Mr. Tremblay to remain an officer at least until
March 31, 2022, has entered into an
agreement providing that Mr. Tremblay remain in his position at
least until that date, while gradually reducing his activities
starting August 1, 2021.
Capital stock
In the first quarter of 2021, the Corporation purchased and
cancelled 2,649,300 Class B Subordinate Voting Shares
("Class B Shares") for a total cash consideration of
$84.4 million (1,059,100
Class B Shares for a total cash consideration of $34.1 million in the same period
of 2020). The $68.8 million
excess of the purchase price over the carrying value of the
repurchased Class B Shares was recorded as a reduction in
retained earnings ($27.8 million
in the same period of 2020).
Dividend
On May 12, 2021, the Board of
Directors of Quebecor declared a quarterly dividend of $0.275 per share on its Class A Multiple Voting
Shares ("Class A Shares") and Class B Shares,
payable on June 22, 2021 to
shareholders of record at the close of business
on May 28, 2021. This dividend is designated an
eligible dividend, as provided under subsection 89(14) of the
Canadian Income Tax Act and its provincial counterpart.
Detailed financial information
For a detailed analysis of Quebecor's first quarter 2021
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 2021 results on May 13, 2021, at
2:30 p.m. EDT. There will be a question period reserved
for financial analysts. To access the conference call, please dial
1 866–201–0081, access code for participants 480061#. 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. Anyone
unable to attend the conference call will be able to listen to a
recording by telephone or webcast. It will be available at the same
address within 24 hours after the call and until
August 11, 2021.
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 May 13, 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, (loss) gain 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 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 2 provides a reconciliation of adjusted EBITDA to net
income as disclosed in Quebecor's condensed consolidated financial
statements.
Table
2
|
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
|
|
2021
|
2020
|
|
|
|
|
|
Adjusted EBITDA
(negative adjusted EBITDA):
|
|
|
|
|
Telecommunications
|
$
|
450.9
|
$
|
435.5
|
Media
|
|
1.3
|
|
4.1
|
Sports and
Entertainment
|
|
2.1
|
|
(3.8)
|
Head
Office
|
|
(1.6)
|
|
0.9
|
|
|
452.7
|
|
436.7
|
Depreciation and
amortization
|
|
(195.3)
|
|
(198.1)
|
Financial
expenses
|
|
(83.1)
|
|
(87.4)
|
(Loss) gain on
valuation and translation of financial instruments
|
|
(5.8)
|
|
23.3
|
Restructuring of
operations and other items
|
|
(4.5)
|
|
(3.9)
|
Income
taxes
|
|
(44.0)
|
|
(40.5)
|
Income from
discontinued operations
|
|
-
|
|
1.3
|
Net
income
|
$
|
120.0
|
$
|
131.4
|
Adjusted income from continuing operating activities
The Corporation defines adjusted income from continuing
operating activities, as reconciled to net income attributable to
shareholders under IFRS, as net income attributable to
shareholders before 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 3 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
3
|
Reconciliation of
the adjusted income from continuing operating activities measure
used in this press release to the net income attributable to
shareholders' measure used in the condensed consolidated financial
statements
|
(in millions of
Canadian dollars)
|
|
|
|
Three months
ended
March 31
|
|
2021
|
2020
|
|
|
|
|
|
Adjusted income from
continuing operating activities
|
$
|
129.9
|
$
|
111.5
|
(Loss) gain on
valuation and translation of financial instruments
|
|
(5.8)
|
|
23.3
|
Restructuring of
operations and other items
|
|
(4.5)
|
|
(3.9)
|
Income taxes related
to adjustments1
|
|
1.7
|
|
(0.6)
|
Discontinued
operations
|
|
-
|
|
1.3
|
Net income
attributable to shareholders
|
$
|
121.3
|
$
|
131.6
|
|
|
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 lease liabilities, 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 lease liabilities, 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 4 and 5 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
4
|
Cash flows from
operations
|
(in millions of
Canadian dollars)
|
|
|
|
Three months
ended
March 31
|
|
2021
|
2020
|
|
|
|
|
|
Adjusted EBITDA
(negative adjusted EBITDA)
|
|
|
|
|
Telecommunications
|
$
|
450.9
|
$
|
435.5
|
Media
|
|
1.3
|
|
4.1
|
Sports and
Entertainment
|
|
2.1
|
|
(3.8)
|
Head
Office
|
|
(1.6)
|
|
0.9
|
|
|
452.7
|
|
436.7
|
Minus
|
|
|
|
|
Additions to
property, plant and equipment:1
|
|
|
|
|
Telecommunications
|
|
(99.4)
|
|
(88.9)
|
Media
|
|
(1.2)
|
|
(1.9)
|
Sports and Entertainment
|
|
(0.1)
|
|
(0.1)
|
Head Office
|
|
(0.2)
|
|
(0.1)
|
|
|
(100.9)
|
|
(91.0)
|
Additions to
intangible assets:2
|
|
|
|
|
Telecommunications
|
|
(38.6)
|
|
(44.1)
|
Media
|
|
(4.5)
|
|
(5.8)
|
Sports and
Entertainment
|
|
(0.9)
|
|
(0.8)
|
Head
Office
|
|
(0.2)
|
|
-
|
|
|
(44.2)
|
|
(50.7)
|
Cash flows from
operations
|
|
|
|
|
Telecommunications
|
|
312.9
|
|
302.5
|
Media
|
|
(4.4)
|
|
(3.6)
|
Sports and
Entertainment
|
|
1.1
|
|
(4.7)
|
Head
Office
|
|
(2.0)
|
|
0.8
|
|
$
|
307.6
|
$
|
295.0
|
|
|
|
|
|
1 Reconciliation to cash
flows used for additions to property, plant and equipment as per
condensed consolidated
financial statements:
|
Three months ended
March 31
|
|
2021
|
2020
|
Additions to property,
plant and equipment
|
$
|
(100.9)
|
$
|
(91.0)
|
Net variance in
current non-cash items related to additions to
property, plant and equipment (excluding government
credits receivable for major capital projects)
|
|
(10.9)
|
|
11.0
|
Cash flows used for
additions to property, plant and equipment
|
$
|
(111.8)
|
$
|
(80.0)
|
|
|
|
|
|
2 Reconciliation to cash
flows used for additions to intangible assets as per condensed
consolidated financial
statements:
|
Three months ended
March 31
|
|
2021
|
2020
|
Additions to
intangible assets
|
$
|
(44.2)
|
$
|
(50.7)
|
Net variance in
current non-cash items related to additions to
intangible assets (excluding government credits receivable for
major capital projects)
|
|
(14.6)
|
|
(52.1)
|
Cash flows used for
additions to intangible assets
|
$
|
(58.8)
|
$
|
(102.8)
|
Table
5
|
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
|
|
2021
|
2020
|
|
|
|
|
|
Cash flows from
operations from Table 4
|
$
|
307.6
|
$
|
295.0
|
Plus
(minus)
|
|
|
|
|
Cash portion of
financial expenses
|
|
(80.9)
|
|
(85.4)
|
Cash portion related
to restructuring of operations and other items
|
|
(3.7)
|
|
(3.9)
|
Current income
taxes
|
|
(63.4)
|
|
(61.0)
|
Other
|
|
0.2
|
|
4.1
|
Net change in non–cash
balances related to operating
activities
|
|
(43.2)
|
|
32.6
|
Net change in current
non-cash items related to
additions to property, plant and equipment
(excluding government credits receivable for
major capital projects)
|
|
(10.9)
|
|
11.0
|
Net change in current
non-cash items related to
additions to intangible assets (excluding
government credits receivable for major capital
projects)
|
|
(14.6)
|
|
(52.1)
|
Free cash flows
from continuing operating activities
|
|
91.1
|
|
140.3
|
Plus
(minus)
|
|
|
|
|
Cash flows used for
additions to property, plant and equipment
|
|
111.8
|
|
80.0
|
Cash flows used for
additions to intangible assets
|
|
58.8
|
|
102.8
|
Proceeds from disposal
of assets
|
|
(0.1)
|
|
(1.5)
|
Cash flows
provided by continuing operating
activities
|
$
|
261.6
|
$
|
321.6
|
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 its 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 6 provides the calculation of consolidated net debt
leverage ratio and the reconciliation to balance sheet items
reported in Quebecor's condensed consolidated financial
statements.
Table
6
|
Consolidated net
debt leverage ratio
|
(in millions of
Canadian dollars)
|
|
March. 31,
2021
|
Dec. 31,
2020
|
|
|
|
|
|
Total long–term
debt1
|
$
|
6,376.1
|
$
|
5,786.4
|
Plus
(minus)
|
|
|
|
|
Lease
liabilities
|
|
144.3
|
|
139.0
|
Current portion of
lease liabilities
|
|
35.1
|
|
34.3
|
Bank
indebtedness
|
|
3.3
|
|
1.7
|
Assets related to
derivative financial instruments
|
|
(569.4)
|
|
(625.5)
|
Liabilities related to
derivative financial instruments
|
|
35.1
|
|
28.4
|
Cash and cash
equivalents
|
|
(759.3)
|
|
(136.7)
|
Consolidated net debt
excluding convertible debentures
|
|
5,265.2
|
|
5,227.6
|
Divided
by:
|
|
|
|
|
Trailing 12–month
adjusted EBITDA
|
$
|
1,968.6
|
$
|
1,952.6
|
Consolidated net
debt leverage ratio
|
|
2.67x
|
|
2.68x
|
|
|
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
over–the–top video 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.
QUEBECOR
INC.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
(in millions of
Canadian dollars, except for earnings per share
data)
|
|
Three months
ended
|
(unaudited)
|
|
March 31
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,091.1
|
$
|
1,055.5
|
|
|
|
|
|
Employee
costs
|
|
176.4
|
|
178.0
|
Purchase of goods and
services
|
|
462.0
|
|
440.8
|
Depreciation and
amortization
|
|
195.3
|
|
198.1
|
Financial
expenses
|
|
83.1
|
|
87.4
|
Loss (gain) on
valuation and translation of financial instruments
|
|
5.8
|
|
(23.3)
|
Restructuring of
operations and other items
|
|
4.5
|
|
3.9
|
Income before
income taxes
|
|
164.0
|
|
170.6
|
|
|
|
|
|
Income taxes
(recovery):
|
|
|
|
|
Current
|
|
63.4
|
|
61.0
|
Deferred
|
|
(19.4)
|
|
(20.5)
|
|
|
|
|
|
|
|
44.0
|
|
40.5
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
120.0
|
|
130.1
|
|
|
|
|
|
Income from
discontinued operations
|
|
-
|
|
1.3
|
|
|
|
|
|
Net
income
|
$
|
120.0
|
$
|
131.4
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to
|
|
|
|
|
Shareholders
|
$
|
121.3
|
$
|
130.3
|
Non-controlling
interests
|
|
(1.3)
|
|
(0.2)
|
|
|
|
|
|
Net income (loss)
attributable to
|
|
|
|
|
Shareholders
|
$
|
121.3
|
$
|
131.6
|
Non-controlling
interests
|
|
(1.3)
|
|
(0.2)
|
|
|
|
|
|
Earnings per share
attributable to shareholders
|
|
|
|
|
Basic:
|
|
|
|
|
From
continuing operations
|
$
|
0.49
|
$
|
0.51
|
From
discontinued operations
|
|
-
|
|
0.01
|
Net
income
|
|
0.49
|
|
0.52
|
Diluted:
|
|
|
|
|
From
continuing operations
|
|
0.49
|
|
0.41
|
From
discontinued operations
|
|
-
|
|
0.01
|
Net
income
|
|
0.49
|
|
0.42
|
|
|
|
|
|
Weighted average
number of shares outstanding (in millions)
|
|
246.7
|
|
254.0
|
Weighted average
number of diluted shares (in millions)
|
|
246.9
|
|
259.9
|
QUEBECOR
INC.
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
Three months
ended
|
(unaudited)
|
March 31
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
120.0
|
$
|
130.1
|
|
|
|
|
|
Other comprehensive
income from continuing operations:
|
|
|
|
|
|
|
|
|
|
Items that may be
reclassified to income:
|
|
|
|
|
Cash flow
hedges:
|
|
|
|
|
(Loss) gain on
valuation of derivative financial instruments
|
|
(2.6)
|
|
62.9
|
Deferred income
taxes
|
|
1.9
|
|
(15.0)
|
|
|
|
|
|
Items that will not
be reclassified to income:
|
|
|
|
|
Defined benefit
plans:
|
|
|
|
|
Re-measurement
gain
|
|
177.0
|
|
-
|
Deferred income
taxes
|
|
(46.9)
|
|
-
|
|
|
129.4
|
|
47.9
|
|
|
|
|
|
Comprehensive
income from continuing operations
|
|
249.4
|
|
178.0
|
|
|
|
|
|
Income from
discontinued operations
|
|
-
|
|
1.3
|
|
|
|
|
|
Comprehensive
income
|
$
|
249.4
|
$
|
179.3
|
|
|
|
|
|
Comprehensive
income (loss) from continuing operations attributable
to
|
|
|
|
|
Shareholders
|
$
|
243.9
|
$
|
178.2
|
Non-controlling
interests
|
|
5.5
|
|
(0.2)
|
|
|
|
|
|
Comprehensive
income (loss) attributable to
|
|
|
|
|
Shareholders
|
$
|
243.9
|
$
|
179.5
|
Non-controlling
interests
|
|
5.5
|
|
(0.2)
|
QUEBECOR
INC.
|
SEGMENTED
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
Media
|
Sports and Entertainment
|
Head office and
Intersegments
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
914.0
|
$
|
174.8
|
$
|
31.2
|
$
|
(28.9)
|
$
|
1,091.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
104.5
|
|
55.1
|
|
7.5
|
|
9.3
|
|
176.4
|
Purchase of goods and
services
|
|
358.6
|
|
118.4
|
|
21.6
|
|
(36.6)
|
|
462.0
|
Adjusted
EBITDA1
|
|
450.9
|
|
1.3
|
|
2.1
|
|
(1.6)
|
|
452.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
195.3
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
83.1
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
5.8
|
Restructuring of
operations and other items
|
|
|
|
|
|
|
|
|
|
4.5
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
$
|
164.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used
for
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
107.6
|
$
|
3.8
|
$
|
0.1
|
$
|
0.3
|
$
|
111.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
51.3
|
|
6.1
|
|
0.9
|
|
0.5
|
|
58.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
Media
|
Sports and Entertainment
|
Head office and
Intersegments
|
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
|
|
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 income from discontinued
operations.
|
QUEBECOR
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
attributable to shareholders
|
|
Equity attributable
to non- controlling interests
|
|
|
|
|
|
|
|
|
|
Accumulated other
comprehensive loss
|
|
|
|
|
|
|
|
|
|
Retained earnings
(deficit)
|
|
|
|
|
|
|
Capital stock
|
|
Contributed surplus
|
|
|
|
|
Total equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
Net income
|
|
-
|
|
-
|
|
475.6
|
|
-
|
|
10.4
|
|
486.0
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
-
|
|
(117.7)
|
|
(3.1)
|
|
(120.8)
|
Dividends
|
|
-
|
|
-
|
|
(150.2)
|
|
-
|
|
-
|
|
(150.2)
|
Repurchase of Class B
Shares
|
|
(31.8)
|
|
-
|
|
(135.3)
|
|
-
|
|
-
|
|
(167.1)
|
Balance as of
December 31, 2020
|
|
1,017.8
|
|
17.4
|
|
211.3
|
|
(133.9)
|
|
101.5
|
|
1,214.1
|
Net income
(loss)
|
|
-
|
|
-
|
|
121.3
|
|
-
|
|
(1.3)
|
|
120.0
|
Other comprehensive
income
|
|
-
|
|
-
|
|
-
|
|
122.6
|
|
6.8
|
|
129.4
|
Dividends
|
|
-
|
|
-
|
|
(68.3)
|
|
-
|
|
(0.1)
|
|
(68.4)
|
Repurchase of Class B
Shares
|
|
(15.6)
|
|
-
|
|
(68.8)
|
|
-
|
|
-
|
|
(84.4)
|
Balance as of
March 31, 2021
|
$
|
1,002.2
|
$
|
17.4
|
$
|
195.5
|
$
|
(11.3)
|
$
|
106.9
|
$
|
1,310.7
|
QUEBECOR
INC.
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
Three months
ended
|
(unaudited)
|
March 31
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Cash flows related
to operating activities
|
|
|
|
|
Income from
continuing operations
|
$
|
120.0
|
$
|
130.1
|
Adjustments
for:
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
146.2
|
|
153.1
|
Amortization of
intangible assets
|
|
38.9
|
|
35.9
|
Amortization of
right-of-use assets
|
|
10.2
|
|
9.1
|
Loss (gain) on
valuation and translation of financial instruments
|
|
5.8
|
|
(23.3)
|
Impairment of
assets
|
|
0.8
|
|
-
|
Amortization of
financing costs
|
|
2.2
|
|
2.0
|
Deferred income
taxes
|
|
(19.4)
|
|
(20.5)
|
Other
|
|
0.1
|
|
2.6
|
|
|
304.8
|
|
289.0
|
Net change in
non-cash balances related to operating activities
|
|
(43.2)
|
|
32.6
|
Cash flows provided
by continuing operating activities
|
|
261.6
|
|
321.6
|
Cash flows related
to investing activities
|
|
|
|
|
Business
acquisitions
|
|
(15.1)
|
|
-
|
Additions to
property, plant and equipment
|
|
(111.8)
|
|
(80.0)
|
Additions to
intangible assets
|
|
(58.8)
|
|
(102.8)
|
Proceeds from
disposals of assets
|
|
0.1
|
|
1.5
|
Other
|
|
(0.8)
|
|
(0.6)
|
Cash flows used in
continuing investing activities
|
|
(186.4)
|
|
(181.9)
|
Cash flows related
to financing activities
|
|
|
|
|
Net change in bank
indebtedness
|
|
1.6
|
|
(12.8)
|
Net change under
revolving facilities
|
|
(3.1)
|
|
(52.9)
|
Issuance of long-term
debt, net of financing fees
|
|
644.0
|
|
-
|
Repayment of
long-term debt
|
|
(0.4)
|
|
(0.3)
|
Repayment of lease
liabilities
|
|
(10.2)
|
|
(9.6)
|
Repurchase of Class B
Shares
|
|
(84.4)
|
|
(34.1)
|
Dividends paid to
non-controlling interests
|
|
(0.1)
|
|
(0.2)
|
Cash flows provided
by (used in) continuing financing activities
|
|
547.4
|
|
(109.9)
|
|
|
|
|
|
Cash flows provided
by continuing operations
|
|
622.6
|
|
29.8
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
136.7
|
|
14.0
|
Cash and cash
equivalents at end of period
|
$
|
759.3
|
$
|
43.8
|
|
|
|
|
|
Cash and cash
equivalents consist of
|
|
|
|
|
Cash
|
$
|
759.0
|
$
|
4.7
|
Cash
equivalents
|
|
0.3
|
|
39.1
|
|
$
|
759.3
|
$
|
43.8
|
|
|
|
|
|
Interest and taxes
reflected as operating activities
|
|
|
|
|
Cash interest
payments
|
$
|
38.6
|
$
|
38.9
|
Cash income tax
payments (net of refunds)
|
|
112.8
|
|
23.0
|
QUEBECOR
INC.
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
(unaudited)
|
March
31
|
December
31
|
|
2021
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
759.3
|
$
|
136.7
|
Restricted
cash
|
|
210.7
|
|
-
|
Accounts
receivable
|
|
635.9
|
|
600.6
|
Contract
assets
|
|
176.7
|
|
174.9
|
Income
taxes
|
|
10.0
|
|
4.9
|
Inventories
|
|
271.7
|
|
250.7
|
Other current
assets
|
|
136.7
|
|
113.0
|
|
|
2,201.0
|
|
1,280.8
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Property, plant and
equipment
|
|
3,167.2
|
|
3,189.2
|
Intangible
assets
|
|
1,480.3
|
|
1,466.7
|
Goodwill
|
|
2,714.0
|
|
2,714.0
|
Right-of-use
assets
|
|
148.4
|
|
143.1
|
Derivative financial
instruments
|
|
569.4
|
|
625.5
|
Deferred income
taxes
|
|
31.5
|
|
45.5
|
Other
assets
|
|
379.1
|
|
396.8
|
|
|
8,489.9
|
|
8,580.8
|
Total
assets
|
$
|
10,690.9
|
$
|
9,861.6
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Bank
indebtedness
|
$
|
3.3
|
$
|
1.7
|
Accounts payable,
accrued charges and provisions
|
|
961.7
|
|
872.2
|
Deferred
revenue
|
|
307.5
|
|
307.5
|
Deferred
subsidies
|
|
210.7
|
|
-
|
Income
taxes
|
|
23.8
|
|
70.0
|
Current portion of
long-term debt
|
|
25.4
|
|
28.5
|
Current portion of
lease liabilities
|
|
35.1
|
|
34.3
|
|
|
1,567.5
|
|
1,314.2
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Long-term
debt
|
|
6,330.7
|
|
5,744.9
|
Derivative financial
instruments
|
|
35.1
|
|
28.4
|
Convertible
debentures
|
|
150.0
|
|
150.0
|
Lease
liabilities
|
|
144.3
|
|
139.0
|
Deferred income
taxes
|
|
859.8
|
|
848.2
|
Other
liabilities
|
|
292.8
|
|
422.8
|
|
|
7,812.7
|
|
7,333.3
|
Equity
|
|
|
|
|
Capital
stock
|
|
1,002.2
|
|
1,017.8
|
Contributed
surplus
|
|
17.4
|
|
17.4
|
Retained
earnings
|
|
195.5
|
|
211.3
|
Accumulated other
comprehensive loss
|
|
(11.3)
|
|
(133.9)
|
Equity
attributable to shareholders
|
|
1,203.8
|
|
1,112.6
|
Non-controlling
interests
|
|
106.9
|
|
101.5
|
|
|
1,310.7
|
|
1,214.1
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
10,690.9
|
$
|
9,861.6
|
View original
content:http://www.prnewswire.com/news-releases/quebecor-inc-reports-consolidated-results-for-first-quarter-2021-301290327.html
SOURCE Quebecor