MONTRÉAL, Aug. 5, 2021 /CNW
Telbec/ - Quebecor Inc. ("Quebecor" or the "Corporation") today
reported its consolidated financial results for the second quarter
of 2021. Quebecor consolidates the financial results of its
wholly owned Quebecor Media Inc. ("Quebecor Media")
subsidiary.
Second quarter 2021 highlights
- Revenues: $1.13 billion in the
second quarter of 2021, up $127.4
million (12.7%) from the same period of 2020.
- Adjusted EBITDA:1 $501.4
million, up $25.7 million
(5.4%).
- Adjusted income from continuing operating
activities:2 $158.3
million ($0.65 per basic
share), an increase of $13.4 million
($0.08 per basic share) or 9.2%.
- Net income attributable to shareholders: $123.5 million ($0.50 per basic share), a decrease of
$51.4 million ($0.19 per basic share).
- Cash flows from operations:3 $338.1 million, up $12.0
million (3.7%).
- The Telecommunications segment grew its revenues by
$59.3 million (6.8%) and its adjusted
EBITDA by $17.9 million (3.9%) in the
second quarter of 2021.
- Videotron Ltd. ("Videotron") significantly increased its
revenues from wireline equipment ($28.1
million or 127.1%), mobile services and equipment
($26.3 million or 12.4%), and
Internet access ($25.7 million or
9.3%) in the second quarter of 2021.
- There was an increase of 27,200 connections (1.8%) to the
mobile telephony service and 5,3004 subscriptions (0.3%)
to the Internet access service in the second quarter of 2021.
- On July 29, 2021, Quebecor
announced an investment of nearly $830.0
million by Videotron in the acquisition of 294 blocks of
spectrum in the 3500 MHz band across the country. More than half of
the investment is concentrated in four Canadian provinces outside
Québec: southern and eastern Ontario, Manitoba, Alberta and British
Columbia.
- On July 16, 2021, TVA Group Inc.
("TVA Group") announced that the studios of Canadian film and
television industry leader MELS will be enlarged with the
construction of MELS 4, with the support of the Québec government
and the City of Montréal. The project will strengthen MELS'
position on the market for foreign blockbusters and series.
- On June 17, 2021, Videotron
issued $750.0 million aggregate
principal amount of 3.625% Senior Notes maturing on June 15, 2028, for net proceeds of $743.2 million. Videotron also issued
US$500.0 million aggregate principal
amount of 3.625% Senior Notes maturing on June 15, 2029, for net proceeds of $599.6 million.
- On June 3, 2021, Quebecor Media
and Videotron issued redemption notices for their Senior Notes in
the aggregate principal amounts of $500.0
million and US$800.0 million
respectively, bearing interest at 6.625% and 5.000% and maturing on
January 15, 2023 and July 15, 2022, for a total cash consideration of
$1.38 billion.
- On May 26, 2021, Videotron
announced the upcoming launch of Vrai, a new Québec subscription
platform that will meet the strong demand for unscripted lifestyle,
documentary and entertainment content.
- On May 12, 2021, Videotron
announced the roll-out of its 5G network in Québec City, following
the successful launch in Montréal in December 2020. With its increased speed, expanded
connectivity and minimal latency, 5G will open up a world of
possibilities for Québec City customers.
______________________
|
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
|
The number for the
end of the first quarter of 2021 has been lowered by 2,500
customers to correct an irregularity discovered in the
Revenue–generating unit ("RGU") growth compilation
systems.
|
"As the Québec economy recovered, our sustained efforts and
disciplined execution on our business strategies yielded a solid
performance in the second quarter of 2021, as evidenced by
increases of 12.7% in revenues, 5.4% in adjusted EBITDA and
9.2% in the Corporation's adjusted income from continuing operating
activities," said Pierre Karl Péladeau, President and Chief
Executive Officer of Quebecor. "These excellent results translated
into a 3.7% increase in cash flows from operations.
"Videotron's success stems from its innovative solutions, unique
customer experience and, above all, robust wireline and mobile
networks, and we are very proud that more and more consumers are
enjoying the benefits," Mr. Péladeau commented. "Over the past
12 months, we have added 125,500 (8.9%) connections to our
mobile telephony service and 60,900 (3.5%) new users to our
Internet service. In addition, Videotron has been selected under
Canada-Québec Operation High-Speed to connect thousands of homes in
various regions of Québec to high-speed Internet, in partnership
with the Government of Canada and
the Québec government. By September 30, 2022,
approximately 37,000 more Québec households will be able to access
Videotron's reliable, powerful network and unrivalled range of
connectivity and entertainment products and services. To serve our
customers throughout our service area, we also continued the
roll-out of our 5G mobile network. Québec City residents can now
take advantage of this cutting–edge technology, the full potential
of which we have only begun to measure.
"Reaching consumers wherever they may be with exclusive,
high-quality content remains central to Videotron's business model.
We are very excited about the upcoming launch of Vrai, Québec's
first subscription streaming service devoted entirely to unscripted
lifestyle, documentary and entertainment content. Vrai will go live
by the end of 2021 with thousands of hours of all–French, on–demand
content, including more than 40 first-run exclusive original
productions. With the advent of Vrai, Quebecor Content becomes
the leading source of original productions in Québec.
"In keeping with our traditional role as a leader in innovation,
our substantial investment in the acquisition of blocks
of 3500 MHz spectrum paves the way for major projects in
Québec and other Canadian provinces in the coming years, which will
bring our cutting–edge technology and healthy competition to large
numbers of Canadian consumers. In addition, this acquisition is
crucial to the continued deployment of 5th generation mobile
technology in Québec and across Canada, as it will facilitate the roll-out of
top–quality 5G mobile broadband services.
"As a result of the resumption of operations in its various
segments, TVA Group posted a $55.6 million (53.5%) increase in revenues
and a $6.6 million (89.6%) increase in adjusted EBITDA,
driven in part by significant growth in advertising revenues at
TVA Network and the specialty channels," said Pierre Karl
Péladeau, Acting President and Chief Executive Officer of
TVA Group. "TVA Group's total market share
was 42.6%. The TVA Sports specialty channel stood out
with exceptional 5.0–point market share growth, mainly because of
the Montréal Canadiens' strong performance in the National Hockey
League playoffs. As well, the Film Production &
Audiovisual Services segment is operating at full steam again. We
were pleased to announce the construction of MELS 4, which
will increase the size of MELS' studios by more than 160,000 square
feet. This expansion will make MELS more attractive to foreign
blockbusters and television series.
"In order to ensure the sustainability of our advertising
revenues and the vitality and competitiveness of local news media
in the face of global competition, it is more urgent than ever that
the federal government legislate to enable Canadian press
publishers to negotiate collectively with the Web giants to obtain
fair compensation for the use of their content. Canadian Heritage
concurs with this position, which we have been defending for years.
It is time that the government table a bill to establish a
framework that enables newspaper publishers to negotiate on a level
playing field. We need to stand together if we are to secure the
future of news coverage in Québec and Canada," Mr. Péladeau commented.
"Since the beginning of the 2021 financial year, Videotron has
issued more than $2.00 billion
in aggregate principal amount of Senior Notes bearing interest at
the very advantageous rates of 3.125% and 3.625%, confirming
Videotron's status as an issuer of the first rank in both the
Canadian and U.S. markets," said Hugues
Simard, Chief Financial Officer of Quebecor.
"Quebecor Media and Videotron used a portion of the proceeds
from these issues to prepay Senior Notes bearing interest at 6.625%
and 5.000%, for a total net disbursement
of $1.38 billion. These favourable financing transactions
will generate annual savings of more than $30.0 million
in interest on the debt."
"With Québec well positioned to emerge from the pandemic, we
remain confident in our growth prospects and the pursuit of our
promising projects. We are in an excellent financial position and
we continue managing our operations prudently, while focusing on
the execution of our targeted strategies for the benefit of all our
stakeholders," concluded Pierre Karl Péladeau.
COVID-19 pandemic
The COVID–19 pandemic has had 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. In
May 2021, the Québec government gradually announced the stages
of its reopening plan, which extend over a period of several
months. 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 in
2020 and a reduction in film and audiovisual content activity in
the Media segment; and the cancellation of most shows and events in
the Sports and Entertainment segment. Despite the constraints
created by this pandemic, Quebecor has provided 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 $3.7 million
and $9.3 million were recorded in the respective
three-month and six–month periods ended June 30, 2021, as
a reduction in employee costs ($29.5 million in the three-month and
six-month periods ended June 30,
2020).
Non-IFRS financial measures
The Corporation uses measures not standardized under
International Financial Reporting Standards ("IFRS"), such as
adjusted EBITDA, adjusted income from continuing operating
activities, cash flows from operations, free cash flows from
continuing operating activities and consolidated net debt leverage
ratio, and key performance indicators, such as RGU.
Definitions of the non-IFRS measures and the key performance
indicator used by the Corporation are provided in the "Definitions"
and "Key Performance Indicator" sections.
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 June 30
|
|
Six months
ended June 30
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
Income
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
|
$
|
928.4
|
$
|
869.1
|
$
|
1,842.4
|
$
|
1,743.8
|
Media
|
|
|
|
198.2
|
|
132.7
|
|
373.0
|
|
307.5
|
Sports and
Entertainment
|
|
|
|
33.5
|
|
25.9
|
|
64.7
|
|
60.7
|
Inter–segment
|
|
|
|
(28.9)
|
|
(23.9)
|
|
(57.8)
|
|
(52.7)
|
|
|
|
|
1,131.2
|
|
1,003.8
|
|
2,222.3
|
|
2,059.3
|
Adjusted EBITDA
(negative adjusted EBITDA):
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
|
|
481.5
|
|
463.6
|
|
932.4
|
|
899.1
|
Media
|
|
|
|
16.7
|
|
7.6
|
|
18.0
|
|
11.7
|
Sports and
Entertainment
|
|
|
|
3.1
|
|
2.8
|
|
5.2
|
|
(1.0)
|
Head
Office
|
|
|
|
0.1
|
|
1.7
|
|
(1.5)
|
|
2.6
|
|
|
|
|
501.4
|
|
475.7
|
|
954.1
|
|
912.4
|
Depreciation and
amortization
|
|
|
|
(196.6)
|
|
(195.7)
|
|
(391.9)
|
|
(393.8)
|
Financial
expenses
|
|
|
|
(87.0)
|
|
(81.6)
|
|
(170.1)
|
|
(169.0)
|
Gain on valuation and
translation of financial
instruments
|
|
|
|
7.0
|
|
4.2
|
|
1.2
|
|
27.5
|
Restructuring of
operations and other items
|
|
|
|
20.6
|
|
(10.3)
|
|
16.1
|
|
(14.2)
|
Loss on debt
refinancing
|
|
|
|
(80.9)
|
|
˗
|
|
(80.9)
|
|
˗
|
Income
taxes
|
|
|
|
(39.8)
|
|
(50.8)
|
|
(83.8)
|
|
(91.3)
|
Income from
discontinued operations
|
|
|
|
˗
|
|
32.5
|
|
˗
|
|
33.8
|
Net
income
|
|
|
$
|
124.7
|
$
|
174.0
|
$
|
244.7
|
$
|
305.4
|
Income from
continuing operations attributable to shareholders
|
|
|
$
|
123.5
|
$
|
142.4
|
$
|
244.8
|
$
|
272.7
|
Net income
attributable to shareholders
|
|
|
|
123.5
|
|
174.9
|
|
244.8
|
|
306.5
|
Adjusted income from
continuing operating activities
|
|
|
|
158.3
|
|
144.9
|
|
288.2
|
|
256.4
|
Per basic
share:
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations attributable to shareholders
|
|
|
|
0.50
|
|
0.56
|
|
1.00
|
|
1.08
|
Net
income attributable to shareholders
|
|
|
|
0.50
|
|
0.69
|
|
1.00
|
|
1.21
|
Adjusted
income from continuing operating activities
|
|
|
|
0.65
|
|
0.57
|
|
1.17
|
|
1.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment and
to
intangible assets
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
|
$
|
151.4
|
$
|
140.8
|
$
|
289.4
|
$
|
273.8
|
Media
|
|
|
|
9.6
|
|
7.6
|
|
15.3
|
|
15.3
|
Sports and
Entertainment
|
|
|
|
0.6
|
|
0.7
|
|
1.6
|
|
1.6
|
Head Office
|
|
|
|
1.7
|
|
0.5
|
|
2.1
|
|
0.6
|
|
|
|
|
163.3
|
|
149.6
|
|
308.4
|
|
291.3
|
Cash
flows
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operations:
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
|
|
330.1
|
|
322.8
|
|
643.0
|
|
625.3
|
Media
|
|
|
|
7.1
|
|
−
|
|
2.7
|
|
(3.6)
|
Sports and
Entertainment
|
|
|
|
2.5
|
|
2.1
|
|
3.6
|
|
(2.6)
|
Head
Office
|
|
|
|
(1.6)
|
|
1.2
|
|
(3.6)
|
|
2.0
|
|
|
|
|
338.1
|
|
326.1
|
|
645.7
|
|
621.1
|
Free cash flows from
continuing operating activities
|
|
|
|
76.8
|
|
239.5
|
|
167.9
|
|
379.8
|
Cash flows provided by
continuing operating activities
|
|
|
|
229.7
|
|
393.5
|
|
491.3
|
|
715.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30
2021
|
|
Dec. 31
2020
|
Balance
sheet
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
$
|
1,999.3
|
$
|
136.7
|
Working
capital
|
|
|
|
|
|
|
|
610.0
|
|
(70.4)
|
Net assets
related to derivative financial instruments
|
|
|
|
|
|
|
|
489.3
|
|
597.1
|
Total
assets
|
|
|
|
|
|
|
|
11,991.2
|
|
9,861.6
|
Total debt
(current and long–term)
|
|
|
|
|
|
|
|
7,685.6
|
|
5,773.4
|
Lease
liabilities (current and long-term)
|
|
|
|
|
|
|
|
183.0
|
|
173.3
|
Convertible
debentures, including embedded derivatives
|
|
|
|
|
|
|
|
154.7
|
|
156.5
|
Equity
attributable to shareholders
|
|
|
|
|
|
|
|
1,210.8
|
|
1,112.6
|
Equity
|
|
|
|
|
|
|
|
1,320.5
|
|
1,214.1
|
Number of
common shares outstanding (in millions)
|
|
|
|
|
|
|
|
244.1
|
|
248.2
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net
debt leverage ratio
|
|
|
|
|
|
|
|
2.71x
|
|
2.68x
|
2021/2020 second quarter comparison
Revenues: $1.13 billion, a $127.4 million (12.7%) increase.
- Revenues increased in Telecommunications ($59.3 million or 6.8% of segment revenues), Media
($65.5 million or 49.4%), and Sports
and Entertainment ($7.6 million or
29.3%).
Adjusted EBITDA: $501.4 million, a $25.7 million (5.4%) increase.
- Adjusted EBITDA increased in Telecommunications ($17.9 million or 3.9% of segment adjusted
EBITDA), Media ($9.1 million), and
Sports and Entertainment ($0.3
million or 10.7%).
- 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 $2.2 million
favourable variance in the Corporation's stock-based compensation
charge in the second quarter of 2021 compared with the same period
of 2020.
Net income attributable to
shareholders: $123.5 million ($0.50 per basic share) in the second quarter
of 2021, compared with $174.9 million ($0.69 per basic share) in the same period of
2020, a decrease of $51.4 million ($0.19 per basic share).
- The main unfavourable variances were:
-
- $80.9 million unfavourable
variance related to debt refinancing;
- $32.5 million decrease in income
from discontinued operations;
- $5.4 million increase in
financial expenses.
- The main favourable variances were:
-
- $30.9 million favourable variance
in the gain and charge for restructuring of operations and other
items;
- $25.7 million increase in
adjusted EBITDA;
- $11.0 million decrease in the
income tax expense.
Adjusted income from continuing operating
activities: $158.3 million ($0.65 per basic share) in the second quarter
of 2021, compared with $144.9 million ($0.57 per basic share) in the same period of
2020, an increase of $13.4 million ($0.08 per basic share).
Cash flows from operations: $338.1 million, a
$12.0 million (3.7%) increase
due to the $25.7 million
increase in adjusted EBITDA, partially offset by
a $13.7 million increase in additions to property, plant
and equipment and to intangible assets.
Cash flows provided by continuing operating
activities: $229.7 million, a $163.8 million (-41.6%) decrease due
primarily to the unfavourable net change in non-cash balances
related to operating activities, partially offset by the increase
in adjusted EBITDA.
2021/2020 year-to-date comparison
Revenues: $2.22 billion, a $163.0 million (7.9%) increase.
- Revenues increased in Telecommunications ($98.6 million or 5.7% of segment revenues), Media
($65.5 million or 21.3%), and Sports
and Entertainment ($4.0 million or
6.6%).
Adjusted EBITDA: $954.1 million, a $41.7 million (4.6%) increase.
- Adjusted EBITDA increased in Telecommunications ($33.3 million or 3.7% of segment adjusted
EBITDA), Media ($6.3 million or
53.8%), and Sports and Entertainment ($6.2
million).
- 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 $3.3 million
unfavourable variance in the Corporation's stock-based compensation
charge in the first half of 2021 compared with the same
period of 2020.
Net income attributable to
shareholders: $244.8 million ($1.00 per basic share) in the first half
of 2021, compared with $306.5 million ($1.21 per basic share) in the same period of
2020, a decrease of $61.7 million ($0.21 per basic share).
- The main unfavourable variances were:
-
- $80.9 million unfavourable
variance related to debt refinancing;
- $33.8 million decrease in income
from discontinued operations;
- $26.3 million unfavourable
variance related to gains on valuation and translation of financial
instruments, including $25.4 million
without any tax consequences.
- The main favourable variances were:
-
- $41.7 million increase in
adjusted EBITDA;
- $30.3 million favourable variance
in the gain and charge for restructuring of operations and other
items;
- $7.5 million decrease in the
income tax expense.
Adjusted income from continuing operating
activities: $288.2 million ($1.17 per basic share) in the first half
of 2021, compared with $256.4 million ($1.01 per basic share) in the same period of
2020, an increase of $31.8 million ($0.16 per basic share).
Cash flows from operations: $645.7 million, a
$24.6 million (4.0%) increase
due to the $41.7 million
increase in adjusted EBITDA, partially offset by
a $17.1 million increase in additions to property, plant
and equipment and to intangible assets.
Cash flows provided by continuing operating
activities: $491.3 million, a $223.8 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: 2.71x at
June 30, 2021 compared with 2.68x at
December 31, 2020.
Investing and financing operations
- On June 17, 2021, Videotron
issued $750.0 million aggregate
principal amount of 3.625% Senior Notes maturing on June 15, 2028, for net proceeds of $743.2 million, net of financing costs of
$6.8 million. Videotron also issued
US$500.0 million aggregate principal
amount of 3.625% Senior Notes maturing on June 15, 2029, for net proceeds of $599.6 million, net of financing costs of
$5.8 million.
- On June 3, 2021, Quebecor Media
issued a redemption notice for its 6.625% Senior Notes maturing on
January 15, 2023, in the aggregate
principal amount of $500.0 million,
at a redemption price of 107.934% of their principal amount.
Videotron also issued a redemption notice for its 5.000% Senior
Notes maturing on July 15, 2022, in
the aggregate principal amount of US$800.0
million, at a redemption price of 104.002% of their
principal amount. The Senior Notes were redeemed in July 2021 and the related hedging contracts were
unwound for a total cash consideration of $1.38 billion.
- 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 a results of this transaction, Quebecor now
holds 11.9% of Alithya's share capital and 6.7% of the voting
rights related to Alithya's issued and outstanding shares. The
corresponding $19.6 million gain on
disposal was accounted for in the second quarter of 2021. This
transaction also includes purchase commitments from Quebecor for
Alithya's services totalling approximately $360.0 million as part of a 10–year commercial
agreement.
3500 MHz spectrum auction
- On July 29, 2021, Quebecor
announced an investment of nearly $830.0
million in the acquisition by Videotron of 294 blocks of
spectrum in the 3500 MHz band across the country. More than half of
the investment is concentrated in four Canadian provinces outside
Québec: southern and eastern Ontario, Manitoba, Alberta and British
Columbia. Now that it holds 175 blocks of spectrum (with an
average depth of 32 MHz) in the 3500 MHz band in four Canadian
provinces outside Québec, Quebecor plans to roll out its mobile
telephone service in some urban and rural areas in the rest of
Canada.
Senior management
- On June 4, 2021, Jean-François
Pruneau resigned as President and Chief Executive Officer of
Videotron to pursue personal investment projects. Pierre Karl
Péladeau, President and Chief Executive Officer of Quebecor Media,
took over as President of Videotron.
- 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.
- As Marc M. Tremblay, Chief
Operating Officer and Chief Legal Officer of the Corporation, has
previously advised the Corporation that he wished to plan his
retirement, at a date to be determined and as the Corporation
wanted him to remain until at least March
31, 2022, it has reached an agreement providing for Mr.
Tremblay to remain in his position until at least that date, while
gradually reducing his responsibilities starting August 1, 2021.
Normal course issuer bid
On August 4, 2021, the Corporation
authorized a normal course issuer bid for a maximum of
1,000,000 Class A Multiple Voting Shares ("Class A
Shares) representing approximately 1.3% of issued and outstanding
Class A Shares, and for a maximum of
6,000,000 Class B Subordinate Voting Shares
("Class B Shares") representing approximately 3.6% of issued
and outstanding Class B Shares as of July 30, 2021.
The purchases can be made from August 15, 2021 to
August 14, 2022 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. As of July 30, 2021,
76,984,034 Class A Shares and
166,449,957 Class B Shares were issued and
outstanding.
The average daily trading volume of the Corporation's Class A
Shares and Class B Shares between February 1, 2021 and
July 31, 2021 on the Toronto Stock Exchange was
1,131 Class A Shares and 576,958 Class B
Shares. Consequently, the Corporation will be authorized to
purchase a maximum of 1,000 Class A Shares and
144,239 Class B Shares during the same trading day,
pursuant to its normal course issuer bid.
The Corporation believes that the repurchase of these shares
under this normal course issuer bid is in the best interests of the
Corporation and its shareholders.
The Corporation also announced that, on or around
August 6, 2021, it will enter 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 will come into
effect on August 15, 2021 and terminate 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.
On May 19, 2021, the Toronto Stock
Exchange authorized the Corporation to amend its previous normal
course issuer bid to increase the maximum number of Class B
Shares that it may repurchase to 7,500,000, representing
approximately 4.3% of issued and outstanding Class B Shares as
of July 31, 2020. The other terms and conditions of the
bid remain unchanged. Between August 15, 2020 and
July 30, 2021, of the 1,000,000 Class A Shares
and 7,500,000 Class B Shares it was authorized to
repurchase under this normal course issuer bid, the Corporation
repurchased no Class A Shares and 7,169,450 Class B
Shares at a weighted average price of $32.57763 per share
on the open market through the facilities of the Toronto Stock
Exchange and alternative trading systems.
In the first half of 2021, the Corporation purchased and
cancelled 4,073,200 Class B Shares for a total cash
consideration of $131.5 million
(3,143,300 Class B Shares for a total cash consideration
of $95.6 million in the same
period of 2020). The $107.5 million excess of the purchase price
over the carrying value of the repurchased Class B Shares was
recorded as a reduction in retained earnings ($77.0 million in the same period of
2020).
Dividend
On August 4, 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 September 14, 2021 to
shareholders of record as of the close of business on
August 20, 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
May 12, 2021 on Quebecor Class B Shares triggered an
adjustment to the floor price and ceiling price then in effect.
Accordingly, effective May 27, 2021, the conversion
features of the convertible debentures are subject to an adjusted
floor price of approximately $25.86 per share (that is, a maximum number
of approximately 5,801,117 Class B Shares corresponding to a
ratio of $150.0 million to the adjusted floor price) and
an adjusted ceiling price of approximately $32.32 per share (that is, a minimum number of
approximately 4,640,894 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 second 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 second
quarter 2021 results on August 5, 2021, at
11:00 a.m. EDT. There will be a question period reserved
for financial analysts. To access the conference call, please dial
1-877-293-8052, access code for participants 80041#. 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 that 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 dialing 1-877-293-8133, access code 80041#,
recording access code 0100746#. The recording will be
available until November 4,
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 August 5, 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 on valuation and translation of financial instruments,
restructuring of operations and other items, loss on debt
refinancing, income tax, 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 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 June 30
|
|
Six months
ended June 30
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(negative adjusted EBITDA):
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
$
|
481.5
|
$
|
463.6
|
$
|
932.4
|
$
|
899.1
|
Media
|
|
|
16.7
|
|
7.6
|
|
18.0
|
|
11.7
|
Sports and
Entertainment
|
|
|
3.1
|
|
2.8
|
|
5.2
|
|
(1.0)
|
Head
Office
|
|
|
0.1
|
|
1.7
|
|
(1.5)
|
|
2.6
|
|
|
|
501.4
|
|
475.7
|
|
954.1
|
|
912.4
|
Depreciation and
amortization
|
|
|
(196.6)
|
|
(195.7)
|
|
(391.9)
|
|
(393.8)
|
Financial
expenses
|
|
|
(87.0)
|
|
(81.6)
|
|
(170.1)
|
|
(169.0)
|
Gain on valuation and
translation of financial
instruments
|
|
|
7.0
|
|
4.2
|
|
1.2
|
|
27.5
|
Restructuring of
operations and other items
|
|
|
20.6
|
|
(10.3)
|
|
16.1
|
|
(14.2)
|
Loss on debt
refinancing
|
|
|
(80.9)
|
|
−
|
|
(80.9)
|
|
−
|
Income
taxes
|
|
|
(39.8)
|
|
(50.8)
|
|
(83.8)
|
|
(91.3)
|
Income from
discontinued operations
|
|
|
−
|
|
32.5
|
|
−
|
|
33.8
|
Net
income
|
|
$
|
124.7
|
$
|
174.0
|
$
|
244.7
|
$
|
305.4
|
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 on valuation and translation of financial
instruments, restructuring of operations and other items, and loss
on debt refinancing, net of income tax related to adjustments and
net income attributable to non–controlling interest related to
adjustments, and before the income from discontinued operations
attributable to shareholders. Adjusted income from continuing
operating activities, as defined above, is not a measure of results
that is consistent with IFRS. It should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. The Corporation uses adjusted
income from continuing operating activities to analyze trends in
the performance of its businesses. The above–listed items are
excluded from the calculation of this measure because they impair
the comparability of 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 June 30
|
|
Six months
ended June 30
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
Adjusted income from
continuing operating activities
|
|
$
|
158.3
|
$
|
144.9
|
$
|
288.2
|
$
|
256.4
|
Gain on valuation and
translation of financial
instruments
|
|
|
7.0
|
|
4.2
|
|
1.2
|
|
27.5
|
Restructuring of
operations and other items
|
|
|
20.6
|
|
(10.3)
|
|
16.1
|
|
(14.2)
|
Loss on debt
refinancing
|
|
|
(80.9)
|
|
−
|
|
(80.9)
|
|
−
|
Income taxes related
to adjustments1
|
|
|
18.5
|
|
3.1
|
|
20.2
|
|
2.5
|
Net income
attributable to non-controlling interest
related to
adjustments
|
|
|
−
|
|
0.5
|
|
−
|
|
0.5
|
Discontinued
operations
|
|
|
−
|
|
32.5
|
|
−
|
|
33.8
|
Net income
attributable to shareholders
|
|
$
|
123.5
|
$
|
174.9
|
$
|
244.8
|
$
|
306.5
|
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 are used by the Corporation's management and
Board of Directors to evaluate the cash flows generated by the
operations of all of its segments, on a consolidated basis, in
addition to the operating cash flows generated by each segment.
Cash flows from operations are also relevant because they are a
component of the Corporation's annual incentive compensation
programs. 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
June 30
|
Six months ended
June 30
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Adjusted EBITDA
(negative adjusted EBITDA)
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
481.5
|
$
|
463.6
|
$
|
932.4
|
$
|
899.1
|
Media
|
|
16.7
|
|
7.6
|
|
18.0
|
|
11.7
|
Sports and
Entertainment
|
|
3.1
|
|
2.8
|
|
5.2
|
|
(1.0)
|
Head Office
|
|
0.1
|
|
1.7
|
|
(1.5)
|
|
2.6
|
|
|
501.4
|
|
475.7
|
|
954.1
|
|
912.4
|
Minus
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment:1
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
(113.6)
|
|
(93.6)
|
|
(213.0)
|
|
(182.5)
|
Media
|
|
(3.0)
|
|
(1.6)
|
|
(4.2)
|
|
(3.5)
|
Sports and
Entertainment
|
|
−
|
|
−
|
|
(0.1)
|
|
(0.1)
|
Head Office
|
|
(1.0)
|
|
(0.4)
|
|
(1.2)
|
|
(0.5)
|
|
|
(117.6)
|
|
(95.6)
|
|
(218.5)
|
|
(186.6)
|
Additions to
intangible assets:2
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
(37.8)
|
|
(47.2)
|
|
(76.4)
|
|
(91.3)
|
Media
|
|
(6.6)
|
|
(6.0)
|
|
(11.1)
|
|
(11.8)
|
Sports and
Entertainment
|
|
(0.6)
|
|
(0.7)
|
|
(1.5)
|
|
(1.5)
|
Head Office
|
|
(0.7)
|
|
(0.1)
|
|
(0.9)
|
|
(0.1)
|
|
|
(45.7)
|
|
(54.0)
|
|
(89.9)
|
|
(104.7)
|
Cash flows from
operations
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
330.1
|
|
322.8
|
|
643.0
|
|
625.3
|
Media
|
|
7.1
|
|
−
|
|
2.7
|
|
(3.6)
|
Sports and
Entertainment
|
|
2.5
|
|
2.1
|
|
3.6
|
|
(2.6)
|
Head
Office
|
|
(1.6)
|
|
1.2
|
|
(3.6)
|
|
2.0
|
|
$
|
338.1
|
$
|
326.1
|
$
|
645.7
|
$
|
621.1
|
|
Three months ended
June 30
|
|
Six months ended June
30
|
1 Reconciliation to cash
flows used for additions to property, plant and
equipment as per condensed consolidated financial
statements:
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Additions to
property, plant and equipment
|
$
|
(117.6)
|
|
$
|
(95.6)
|
|
$
|
(218.5)
|
|
$
|
(186.6)
|
Net variance in
current non-cash items related to additions to property,
plant and equipment (excluding government credits receivable for
major capital projects)
|
|
12.1
|
|
|
(11.1)
|
|
|
1.2
|
|
|
(0.1)
|
Cash flows used for
additions to property, plant and equipment
|
$
|
(105.5)
|
|
$
|
(106.7)
|
|
$
|
(217.3)
|
|
$
|
(186.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30
|
|
Six months ended June
30
|
2 Reconciliation to cash
flows used for additions to intangible assets
as per condensed consolidated financial statements:
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Additions to
intangible assets
|
$
|
(45.7)
|
|
$
|
(54.0)
|
|
$
|
(89.9)
|
|
$
|
(104.7)
|
Net variance in
current non-cash items related to additions to intangible
assets (excluding government credits receivable for major capital
projects)
|
|
(4.7)
|
|
|
6.0
|
|
|
(19.3)
|
|
|
(46.1)
|
Cash flows used for
additions to intangible assets
|
$
|
(50.4)
|
|
$
|
(48.0)
|
|
$
|
(109.2)
|
|
$
|
(150.8)
|
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
June 30
|
Six months ended
June 30
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Cash flows from
operations from Table 4
|
$
|
338.1
|
$
|
326.1
|
$
|
645.7
|
$
|
621.1
|
Plus
(minus)
|
|
|
|
|
|
|
|
|
Cash portion of
financial expenses
|
|
(84.8)
|
|
(79.5)
|
|
(165.7)
|
|
(164.9)
|
Cash portion related
to restructuring of operations and
other items
|
|
1.1
|
|
(10.6)
|
|
(2.1)
|
|
(14.4)
|
Current income
taxes
|
|
(64.4)
|
|
(59.3)
|
|
(127.8)
|
|
(120.3)
|
Other
|
|
2.7
|
|
(1.4)
|
|
2.4
|
|
2.6
|
Net change in non–cash
balances related to operating
activities
|
|
(123.3)
|
|
69.3
|
|
(166.5)
|
|
101.9
|
Net change in current
non-cash items related to additions to property,
plant and equipment (excluding
government credits receivable for major capital projects)
|
|
12.1
|
|
(11.1)
|
|
1.2
|
|
(0.1)
|
Net change in current
non-cash items related to additions to intangible
assets (excluding government
credits receivable for major capital projects)
|
|
(4.7)
|
|
6.0
|
|
(19.3)
|
|
(46.1)
|
Free cash flows
from continuing operating activities
|
|
76.8
|
|
239.5
|
|
167.9
|
|
379.8
|
Plus
(minus)
|
|
|
|
|
|
|
|
|
Cash flows used for
additions to property, plant and
equipment
|
|
105.5
|
|
106.7
|
|
217.3
|
|
186.7
|
Cash flows used for
additions to intangible assets
|
|
50.4
|
|
48.0
|
|
109.2
|
|
150.8
|
Proceeds from disposal
of assets
|
|
(3.0)
|
|
(0.7)
|
|
(3.1)
|
|
(2.2)
|
Cash flows
provided by continuing operating activities
|
$
|
229.7
|
$
|
393.5
|
$
|
491.3
|
$
|
715.1
|
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
its 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)
|
|
|
|
|
June 30,
2021
|
|
Dec. 31,
2020
|
Total long–term
debt1
|
$
|
7,714.5
|
$
|
5,786.4
|
Plus
(minus)
|
|
|
|
|
Lease
liabilities
|
|
147.1
|
|
139.0
|
Current portion
of lease liabilities
|
|
35.9
|
|
34.3
|
Bank
indebtedness
|
|
5.6
|
|
1.7
|
Assets related
to derivative financial instruments
|
|
(531.8)
|
|
(625.5)
|
Liabilities
related to derivative financial instruments
|
|
42.5
|
|
28.4
|
Cash and cash
equivalents
|
|
(1,999.3)
|
|
(136.7)
|
Consolidated net debt
excluding convertible debentures
|
|
5,414.5
|
|
5,227.6
|
Divided
by:
|
|
|
|
|
Trailing 12–month
adjusted EBITDA
|
$
|
1,994.3
|
$
|
1,952.6
|
Consolidated net
debt leverage ratio
|
|
2.71x
|
|
2.68x
|
1
Excluding changes in the fair value of long-term debt related to
hedged interest rate risk and financing costs.
|
KEY PERFORMANCE INDICATOR
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
|
|
Six months
ended
|
(unaudited)
|
|
June
30
|
|
June
30
|
|
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
1,131.2
|
$
|
1,003.8
|
|
$
|
2,222.3
|
$
|
2,059.3
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
|
169.5
|
|
136.7
|
|
|
345.9
|
|
314.7
|
Purchase of goods and
services
|
|
|
460.3
|
|
391.4
|
|
|
922.3
|
|
832.2
|
Depreciation and
amortization
|
|
|
196.6
|
|
195.7
|
|
|
391.9
|
|
393.8
|
Financial
expenses
|
|
|
87.0
|
|
81.6
|
|
|
170.1
|
|
169.0
|
Gain on valuation and
translation of financial instruments
|
|
(7.0)
|
|
(4.2)
|
|
|
(1.2)
|
|
(27.5)
|
Restructuring of
operations and other items
|
|
|
(20.6)
|
|
10.3
|
|
|
(16.1)
|
|
14.2
|
Loss on debt
refinancing
|
|
|
80.9
|
|
-
|
|
|
80.9
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
|
164.5
|
|
192.3
|
|
|
328.5
|
|
362.9
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
(recovery):
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
64.4
|
|
59.3
|
|
|
127.8
|
|
120.3
|
Deferred
|
|
|
(24.6)
|
|
(8.5)
|
|
|
(44.0)
|
|
(29.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39.8
|
|
50.8
|
|
|
83.8
|
|
91.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
|
124.7
|
|
141.5
|
|
|
244.7
|
|
271.6
|
|
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations
|
|
|
-
|
|
32.5
|
|
|
-
|
|
33.8
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
124.7
|
$
|
174.0
|
|
$
|
244.7
|
$
|
305.4
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to
|
|
|
|
|
|
|
|
|
|
Shareholders
|
|
$
|
123.5
|
$
|
142.4
|
|
$
|
244.8
|
$
|
272.7
|
Non-controlling
interests
|
|
|
1.2
|
|
(0.9)
|
|
|
(0.1)
|
|
(1.1)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
|
$
|
123.5
|
$
|
174.9
|
|
$
|
244.8
|
$
|
306.5
|
Non-controlling
interests
|
|
|
1.2
|
|
(0.9)
|
|
|
(0.1)
|
|
(1.1)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to shareholders
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
From
continuing operations
|
|
$
|
0.50
|
$
|
0.56
|
|
$
|
1.00
|
$
|
1.08
|
From
discontinued operations
|
|
|
-
|
|
0.13
|
|
|
-
|
|
0.13
|
Net
income
|
|
|
0.50
|
|
0.69
|
|
|
1.00
|
|
1.21
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
From
continuing operations
|
|
|
0.47
|
|
0.54
|
|
|
0.98
|
|
0.96
|
From
discontinued operations
|
|
|
-
|
|
0.12
|
|
|
-
|
|
0.13
|
Net
income
|
|
|
0.47
|
|
0.66
|
|
|
0.98
|
|
1.09
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (in millions)
|
|
245.0
|
|
252.8
|
|
|
245.8
|
|
253.4
|
Weighted average
number of diluted shares (in millions)
|
|
249.9
|
|
258.6
|
|
|
250.7
|
|
259.2
|
QUEBECOR
INC.
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
Three months
ended
|
|
Six months
ended
|
(unaudited)
|
|
June
30
|
|
June
30
|
|
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
$
|
124.7
|
$
|
141.5
|
|
$
|
244.7
|
$
|
271.6
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
(1.6)
|
|
(19.0)
|
|
|
(4.2)
|
|
43.9
|
Deferred income
taxes
|
|
|
2.9
|
|
6.4
|
|
|
4.8
|
|
(8.6)
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not
be reclassified to income:
|
|
|
|
|
|
|
|
|
|
|
Defined benefit
plans:
|
|
|
|
|
|
|
|
|
|
Re-measurement (loss)
gain
|
|
|
(2.5)
|
|
(62.0)
|
|
|
174.5
|
|
(62.0)
|
Deferred income
taxes
|
|
|
0.5
|
|
16.0
|
|
|
(46.4)
|
|
16.0
|
|
|
|
|
|
|
|
|
|
|
|
Reclassification to
income:
|
|
|
|
|
|
|
|
|
|
|
Gain related to cash
flow hedges
|
|
|
(1.0)
|
|
-
|
|
|
(1.0)
|
|
-
|
Deferred income
taxes
|
|
|
0.6
|
|
-
|
|
|
0.6
|
|
-
|
|
|
|
(1.1)
|
|
(58.6)
|
|
|
128.3
|
|
(10.7)
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income from continuing operations
|
|
|
123.6
|
|
82.9
|
|
|
373.0
|
|
260.9
|
|
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations
|
|
|
-
|
|
32.5
|
|
|
-
|
|
33.8
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
$
|
123.6
|
$
|
115.4
|
|
$
|
373.0
|
$
|
294.7
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) from continuing operations
|
|
|
|
|
|
|
|
|
|
|
attributable
to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
|
$
|
120.8
|
$
|
87.3
|
|
$
|
364.7
|
$
|
265.5
|
Non-controlling
interests
|
|
|
2.8
|
|
(4.4)
|
|
|
8.3
|
|
(4.6)
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
|
$
|
120.8
|
$
|
119.8
|
|
$
|
364.7
|
$
|
299.3
|
Non-controlling
interests
|
|
|
2.8
|
|
(4.4)
|
|
|
8.3
|
|
(4.6)
|
QUEBECOR
INC.
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENTED
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and
Inter-
|
|
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
928.4
|
$
|
198.2
|
$
|
33.5
|
$
|
(28.9)
|
$
|
1,131.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
|
101.7
|
|
55.9
|
|
7.1
|
|
4.8
|
|
169.5
|
Purchase of goods and
services
|
|
|
345.2
|
|
125.6
|
|
23.3
|
|
(33.8)
|
|
460.3
|
Adjusted
EBITDA1
|
|
|
481.5
|
|
16.7
|
|
3.1
|
|
0.1
|
|
501.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
196.6
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
|
87.0
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
|
(7.0)
|
Restructuring of
operations and other items
|
|
|
|
|
|
|
|
|
|
|
(20.6)
|
Loss on debt
refinancing
|
|
|
|
|
|
|
|
|
|
|
|
80.9
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
|
$
|
164.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used
for:
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
|
$
|
101.3
|
$
|
3.3
|
$
|
-
|
$
|
0.9
|
$
|
105.5
|
Additions to
intangible assets
|
|
|
42.1
|
|
7.1
|
|
0.6
|
|
0.6
|
|
50.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and
Inter-
|
|
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
869.1
|
$
|
132.7
|
$
|
25.9
|
$
|
(23.9)
|
$
|
1,003.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
|
100.7
|
|
26.2
|
|
4.1
|
|
5.7
|
|
136.7
|
Purchase of goods and
services
|
|
|
304.8
|
|
98.9
|
|
19.0
|
|
(31.3)
|
|
391.4
|
Adjusted
EBITDA1
|
|
|
463.6
|
|
7.6
|
|
2.8
|
|
1.7
|
|
475.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
195.7
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
|
81.6
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
|
(4.2)
|
Restructuring of
operations and other items
|
|
|
|
|
|
|
|
|
|
|
10.3
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
|
$
|
192.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used
for:
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
|
$
|
104.8
|
$
|
1.6
|
$
|
-
|
$
|
0.3
|
$
|
106.7
|
Additions to
intangible assets
|
|
|
41.0
|
|
6.2
|
|
0.7
|
|
0.1
|
|
48.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and
Inter-
|
|
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
1,842.4
|
$
|
373.0
|
$
|
64.7
|
$
|
(57.8)
|
$
|
2,222.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
|
206.2
|
|
111.0
|
|
14.6
|
|
14.1
|
|
345.9
|
Purchase of goods and
services
|
|
|
703.8
|
|
244.0
|
|
44.9
|
|
(70.4)
|
|
922.3
|
Adjusted
EBITDA1
|
|
|
932.4
|
|
18.0
|
|
5.2
|
|
(1.5)
|
|
954.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
391.9
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
|
170.1
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
|
(1.2)
|
Restructuring of
operations and other items
|
|
|
|
|
|
|
|
|
|
|
(16.1)
|
Loss on debt
refinancing
|
|
|
|
|
|
|
|
|
|
|
|
80.9
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
|
$
|
328.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used
for:
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
|
$
|
208.9
|
$
|
7.1
|
$
|
0.1
|
$
|
1.2
|
$
|
217.3
|
Additions to
intangible assets
|
|
|
93.4
|
|
13.2
|
|
1.5
|
|
1.1
|
|
109.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June
30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and
Inter-
|
|
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
1,743.8
|
$
|
307.5
|
$
|
60.7
|
$
|
(52.7)
|
$
|
2,059.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
|
203.6
|
|
85.9
|
|
14.1
|
|
11.1
|
|
314.7
|
Purchase of goods and
services
|
|
|
641.1
|
|
209.9
|
|
47.6
|
|
(66.4)
|
|
832.2
|
Adjusted
EBITDA1
|
|
|
899.1
|
|
11.7
|
|
(1.0)
|
|
2.6
|
|
912.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
393.8
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
|
169.0
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
|
(27.5)
|
Restructuring of
operations and other items
|
|
|
|
|
|
|
|
|
|
|
14.2
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
|
$
|
362.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used
for:
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
|
$
|
178.4
|
$
|
7.8
|
$
|
0.1
|
$
|
0.4
|
$
|
186.7
|
Additions to
intangible assets
|
|
|
136.1
|
|
13.1
|
|
1.5
|
|
0.1
|
|
150.8
|
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, gain on valuation and translation
of
|
|
financial
instruments, restructuring of operations and other items, loss on
debt refinancing, income taxes and income from discontinued
operations.
|
QUEBECOR
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
attributable to shareholders
|
|
Equity
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
attributable
|
|
|
|
|
|
|
|
|
Retained
|
|
other
com-
|
|
to
non-
|
|
|
|
|
Capital
|
|
Contributed
|
|
earnings
|
|
prehensive
|
|
controlling
|
|
Total
|
|
|
stock
|
surplus
|
|
(deficit)
|
|
loss
|
|
interests
|
|
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of
December 31, 2019
|
$
|
1,055.9
|
$
|
17.4
|
$
|
(31.7)
|
$
|
(64.1)
|
$
|
94.6
|
$
|
1,072.1
|
Net income
(loss)
|
|
-
|
|
-
|
|
306.5
|
|
-
|
|
(1.1)
|
|
305.4
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
-
|
|
(7.2)
|
|
(3.5)
|
|
(10.7)
|
Dividends
|
|
-
|
|
-
|
|
(101.2)
|
|
-
|
|
(0.2)
|
|
(101.4)
|
Repurchase of Class B
Shares
|
|
(18.6)
|
|
-
|
|
(77.0)
|
|
-
|
|
-
|
|
(95.6)
|
Balance as of June
30, 2020
|
|
1,037.3
|
|
17.4
|
|
96.6
|
|
(71.3)
|
|
89.8
|
|
1,169.8
|
Net income
|
|
-
|
|
-
|
|
300.7
|
|
-
|
|
11.3
|
|
312.0
|
Other comprehensive
(loss) income
|
|
-
|
|
-
|
|
-
|
|
(62.6)
|
|
0.4
|
|
(62.2)
|
Dividends
|
|
-
|
|
-
|
|
(99.9)
|
|
-
|
|
-
|
|
(99.9)
|
Repurchase of Class B
Shares
|
|
(19.5)
|
|
-
|
|
(86.1)
|
|
-
|
|
-
|
|
(105.6)
|
Balance as of
December 31, 2020
|
|
1,017.8
|
|
17.4
|
|
211.3
|
|
(133.9)
|
|
101.5
|
|
1,214.1
|
Net income
(loss)
|
|
-
|
|
-
|
|
244.8
|
|
-
|
|
(0.1)
|
|
244.7
|
Other comprehensive
income
|
|
-
|
|
-
|
|
-
|
|
119.9
|
|
8.4
|
|
128.3
|
Dividends
|
|
-
|
|
-
|
|
(135.0)
|
|
-
|
|
(0.1)
|
|
(135.1)
|
Repurchase of Class B
Shares
|
|
(24.0)
|
|
-
|
|
(107.5)
|
|
-
|
|
-
|
|
(131.5)
|
Balance as of June
30, 2021
|
$
|
993.8
|
$
|
17.4
|
$
|
213.6
|
$
|
(14.0)
|
$
|
109.7
|
$
|
1,320.5
|
QUEBECOR
INC.
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
Three months
ended
|
|
Six months
ended
|
(unaudited)
|
|
June
30
|
|
June
30
|
|
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows related
to operating activities
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
$
|
124.7
|
$
|
141.5
|
|
$
|
244.7
|
$
|
271.6
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
|
145.8
|
|
152.7
|
|
|
292.0
|
|
305.8
|
Amortization of
intangible assets
|
|
|
40.6
|
|
34.3
|
|
|
79.5
|
|
70.2
|
Amortization of
right-of-use assets
|
|
|
10.2
|
|
8.7
|
|
|
20.4
|
|
17.8
|
Gain on valuation and
translation of financial instruments
|
|
|
(7.0)
|
|
(4.2)
|
|
|
(1.2)
|
|
(27.5)
|
Gain on disposal of
other assets
|
|
|
(19.5)
|
|
(0.3)
|
|
|
(19.0)
|
|
(0.2)
|
Impairment of
assets
|
|
|
-
|
|
-
|
|
|
0.8
|
|
-
|
Loss on debt
refinancing
|
|
|
80.9
|
|
-
|
|
|
80.9
|
|
-
|
Amortization of
financing costs
|
|
|
2.2
|
|
2.1
|
|
|
4.4
|
|
4.1
|
Deferred income
taxes
|
|
|
(24.6)
|
|
(8.5)
|
|
|
(44.0)
|
|
(29.0)
|
Other
|
|
|
(0.3)
|
|
(2.1)
|
|
|
(0.7)
|
|
0.4
|
|
|
|
353.0
|
|
324.2
|
|
|
657.8
|
|
613.2
|
Net change in
non-cash balances related to operating activities
|
|
|
(123.3)
|
|
69.3
|
|
|
(166.5)
|
|
101.9
|
Cash flows provided
by continuing operating activities
|
|
|
229.7
|
|
393.5
|
|
|
491.3
|
|
715.1
|
Cash flows related
to investing activities
|
|
|
|
|
|
|
|
|
|
|
Business
acquisitions
|
|
|
(6.7)
|
|
(10.8)
|
|
|
(21.8)
|
|
(10.8)
|
Additions to
property, plant and equipment
|
|
|
(105.5)
|
|
(106.7)
|
|
|
(217.3)
|
|
(186.7)
|
Additions to
intangible assets
|
|
|
(50.4)
|
|
(48.0)
|
|
|
(109.2)
|
|
(150.8)
|
Proceeds from
disposals of assets
|
|
|
3.0
|
|
0.7
|
|
|
3.1
|
|
2.2
|
Other
|
|
|
(7.2)
|
|
(2.3)
|
|
|
(8.0)
|
|
(2.9)
|
Cash flows used in
continuing investing activities
|
|
|
(166.8)
|
|
(167.1)
|
|
|
(353.2)
|
|
(349.0)
|
Cash flows related
to financing activities
|
|
|
|
|
|
|
|
|
|
|
Net change in bank
indebtedness
|
|
|
2.3
|
|
4.0
|
|
|
3.9
|
|
(8.8)
|
Net change under
revolving facilities
|
|
|
25.9
|
|
(82.3)
|
|
|
22.8
|
|
(135.2)
|
Issuance of long-term
debt, net of financing costs
|
|
|
1,342.8
|
|
-
|
|
|
1,986.8
|
|
-
|
Repayment of
long-term debt
|
|
|
(0.2)
|
|
(0.3)
|
|
|
(0.6)
|
|
(0.6)
|
Repayment of lease
liabilities
|
|
|
(10.8)
|
|
(10.9)
|
|
|
(21.0)
|
|
(20.5)
|
Settlement of hedging
contracts
|
|
|
(0.8)
|
|
(0.8)
|
|
|
(0.8)
|
|
(0.8)
|
Repurchase of Class B
Shares
|
|
|
(47.1)
|
|
(61.5)
|
|
|
(131.5)
|
|
(95.6)
|
Dividends
|
|
|
(135.0)
|
|
(101.2)
|
|
|
(135.0)
|
|
(101.2)
|
Dividends paid to
non-controlling interests
|
|
|
-
|
|
-
|
|
|
(0.1)
|
|
(0.2)
|
Cash flows provided
by (used in) continuing financing activities
|
|
|
1,177.1
|
|
(253.0)
|
|
|
1,724.5
|
|
(362.9)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows provided
by (used in) continuing operations
|
|
|
1,240.0
|
|
(26.6)
|
|
|
1,862.6
|
|
3.2
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows provided
by discontinued operations
|
|
|
-
|
|
7.8
|
|
|
-
|
|
7.8
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
|
759.3
|
|
43.8
|
|
|
136.7
|
|
14.0
|
Cash and cash
equivalents at end of period
|
|
$
|
1,999.3
|
$
|
25.0
|
|
$
|
1,999.3
|
$
|
25.0
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents consist of
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
1,998.5
|
$
|
20.3
|
|
$
|
1,998.5
|
$
|
20.3
|
Cash
equivalents
|
|
|
0.8
|
|
4.7
|
|
|
0.8
|
|
4.7
|
|
|
$
|
1,999.3
|
$
|
25.0
|
|
$
|
1,999.3
|
$
|
25.0
|
|
|
|
|
|
|
|
|
|
|
|
Interest and taxes
reflected as operating activities
|
|
|
|
|
|
|
|
|
|
|
Cash interest
payments
|
|
$
|
117.5
|
$
|
118.3
|
|
$
|
156.1
|
$
|
157.2
|
Cash income tax
payments (net of refunds)
|
|
|
54.3
|
|
(0.1)
|
|
|
167.1
|
|
22.9
|
QUEBECOR
INC. CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
(unaudited)
|
|
|
|
June
30
|
|
|
December
31
|
|
|
|
|
2021
|
|
|
2020
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
|
1,999.3
|
|
$
|
136.7
|
Restricted
cash
|
|
|
|
206.3
|
|
|
-
|
Accounts
receivable
|
|
|
|
653.2
|
|
|
563.6
|
Contract
assets
|
|
|
|
175.9
|
|
|
174.9
|
Income
taxes
|
|
|
|
10.2
|
|
|
4.9
|
Inventories
|
|
|
|
283.8
|
|
|
250.7
|
Derivative financial
instruments
|
|
|
|
193.4
|
|
|
-
|
Other current
assets
|
|
|
|
136.6
|
|
|
113.0
|
|
|
|
|
3,658.7
|
|
|
1,243.8
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
|
3,134.9
|
|
|
3,189.2
|
Intangible
assets
|
|
|
|
1,482.5
|
|
|
1,466.7
|
Goodwill
|
|
|
|
2,718.3
|
|
|
2,714.0
|
Right-of-use
assets
|
|
|
|
152.6
|
|
|
143.1
|
Derivative financial
instruments
|
|
|
|
338.4
|
|
|
625.5
|
Deferred income
taxes
|
|
|
|
46.7
|
|
|
45.5
|
Other
assets
|
|
|
|
459.1
|
|
|
433.8
|
|
|
|
|
8,332.5
|
|
|
8,617.8
|
Total
assets
|
|
|
$
|
11,991.2
|
|
$
|
9,861.6
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Bank
indebtedness
|
|
|
$
|
5.6
|
|
$
|
1.7
|
Accounts payable,
accrued charges and provisions
|
|
|
|
914.4
|
|
|
872.2
|
Deferred
revenue
|
|
|
|
307.6
|
|
|
307.5
|
Deferred
subsidies
|
|
|
|
206.3
|
|
|
-
|
Income
taxes
|
|
|
|
35.7
|
|
|
70.0
|
Current portion of
long-term debt
|
|
|
|
1,543.2
|
|
|
28.5
|
Current portion of
lease liabilities
|
|
|
|
35.9
|
|
|
34.3
|
|
|
|
|
3,048.7
|
|
|
1,314.2
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
|
6,142.4
|
|
|
5,744.9
|
Derivative financial
instruments
|
|
|
|
42.5
|
|
|
28.4
|
Convertible
debentures
|
|
|
|
150.0
|
|
|
150.0
|
Lease
liabilities
|
|
|
|
147.1
|
|
|
139.0
|
Deferred income
taxes
|
|
|
|
847.1
|
|
|
848.2
|
Other
liabilities
|
|
|
|
292.9
|
|
|
422.8
|
|
|
|
|
7,622.0
|
|
|
7,333.3
|
Equity
|
|
|
|
|
|
|
|
Capital
stock
|
|
|
|
993.8
|
|
|
1,017.8
|
Contributed
surplus
|
|
|
|
17.4
|
|
|
17.4
|
Retained
earnings
|
|
|
|
213.6
|
|
|
211.3
|
Accumulated other
comprehensive loss
|
|
|
|
(14.0)
|
|
|
(133.9)
|
Equity
attributable to shareholders
|
|
|
|
1,210.8
|
|
|
1,112.6
|
Non-controlling
interests
|
|
|
|
109.7
|
|
|
101.5
|
|
|
|
|
1,320.5
|
|
|
1,214.1
|
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
|
$
|
11,991.2
|
|
$
|
9,861.6
|
View original
content:https://www.prnewswire.com/news-releases/quebecor-inc-reports-consolidated-results-for-second-quarter-2021-301348853.html
SOURCE Quebecor