MONTREAL, May 7, 2015 /CNW Telbec/ - Quebecor Inc. ("Quebecor" or "the
Corporation") today reported its consolidated financial results for the
first quarter of 2015 and announced a 40% increase in its quarterly
dividend. Quebecor consolidates the financial results of its Quebecor
Media Inc. ("Quebecor Media") subsidiary, in which it holds a 75.4%
interest.
Highlights
First quarter 2015
-
Revenues: $948.6 million, up $50.8 million (5.7%) from first quarter
2014.
-
Adjusted operating income1: $339.0 million, up $4.3 million (1.3%).
-
Net income attributable to shareholders: $29.4 million ($0.24 per basic
share) in first quarter 2015, compared with $39.1 million ($0.32 per
basic share) in the same period of 2014, down $9.7 million ($0.08 per
basic share).
-
Adjusted income from continuing operations2: $40.8 million ($0.33 per basic share) in first quarter 2015, compared
with $44.3 million ($0.36 per basic share) in the same period of 2014,
down $3.5 million ($0.03 per basic share).
-
Quarterly dividend on the Corporation's Class A Multiple Voting Shares
("Class A Shares") and Class B Subordinate Voting Shares ("Class B
Shares") increases 40% from $0.025 to $0.035 per share.
-
Telecommunications segment's revenues up $38.4 million (5.3%); its
adjusted operating income up $7.7 million (2.3%) despite the
unfavourable impact of one-time items totalling $4.6 million.
Videotron Ltd. ("Videotron") grows its mobile telephony revenues by
$27.7 million or 44.9% and its Internet access revenues by
$13.4 million or 6.4%.
-
Videotron's average monthly revenue per user ("ARPU") up $10.24 (8.4%)
from $121.72 in first quarter 2014 to $131.96 in first quarter 2015,
including a $6.01 (15.0%) increase for mobile telephony service, the
strongest quarterly growth since the service was launched in 2010.
-
Revenue-generating units3: net increase of 28,000 in first quarter 2015 compared with 17,700 in
the same period of 2014. During the 12-month period ended March 31,
2015, the total number of revenue-generating units increased by 247,400
(4.7%), including increases of 139,600 subscriber connections to the
mobile telephone service and 117,000 subscriptions to the over-the-top
video service.
-
On March 25, 2015, the Competition Bureau approved the sale of Quebecor
Media's English-language newspaper businesses in Canada. The
transaction closed on April 13, 2015 for a total cash consideration of
$305.5 million, consisting of the $316.0 million selling price less
$10.5 million for customary adjustments and adjustments related to the
sale of real estate properties by Sun Media Corporation.
-
On April 12, 2015, TVA Group Inc. ("TVA Group") closed the acquisition
of 14 magazines, 3 websites and custom publishing contracts from
Transcontinental Inc. ("Transcontinental") for a cash consideration of
$55.5 million. The transaction was approved by the Competition Bureau
on March 2, 2015.
-
On March 6, 2015, the Québec Court of Appeal ruled in favour of
Videotron and TVA Group, and ordered Bell ExpressVu Limited Partnership
("Bell ExpressVu"), a subsidiary of Bell Canada, to pay them
compensation totalling $135.9 million for having neglected to implement
an appropriate security system to prevent piracy of the signals
broadcast by its satellite television service between 1999 and 2005,
thereby harming its competitors and broadcasters. Early in May 2015,
Bell ExpressVu applied for leave to appeal the judgment to the Supreme
Court of Canada. A decision on its application is pending.
__________________________
1
|
See "Adjusted operating income" under "Definitions."
|
2
|
See "Adjusted income from continuing operations" under "Definitions."
|
3
|
The sum of subscriptions to the cable television, cable Internet access
and over-the-top video services, plus subscriber connections to the
cable and mobile telephony services.
|
"Quebecor grew its revenues by $50.8 million (5.7%) and its adjusted
operating income by $4.3 million (1.3%) in the first quarter of 2015,"
noted Pierre Dion, President and Chief Executive Officer of Quebecor.
"Once again, the improvement was due to the excellent performance of
the Telecommunications segment's operations.
"During the first quarter, we closed the sale of our English-language
newspaper businesses in Canada for a total cash consideration
of $305.5 million. The sale scaled back our investment in the newspaper
industry, in keeping with our strategy of refocusing our operations on
our main growth businesses. We also pursued our revenue-diversification
and consolidation strategy in our Media segment by closing the
acquisition of magazines from Transcontinental."
"In the first quarter of 2015, the Telecommunications segment generated
strong returns once again," commented Manon Brouillette, President and
Chief Executive Officer of Videotron. "We increased our revenues by
$38.4 million (5.3%). Our adjusted operating income was up $7.7 million
(2.3%), despite the $4.6 million combined unfavourable impact of
one-time items. These results were driven by, among other things, the
solid performance of our mobile telephony and Internet access services.
"It is worth noting that the mobile telephony service's ARPU increased
by $6.01 per month (15.0%) in the first quarter of 2015, a historic
high since the service was launched in 2010. This success stems from
our optimal combination of plans, mobile content and devices on our
ultra-powerful network, an LTE network that covers nearly 90% of
Québec's population and supports speeds of up to 150 Mbps. Videotron's
total ARPU for all services increased by $10.24 (8.4%) in the first
quarter of 2015.
"Videotron increased its revenue-generating units by 247,400 over the
12-month period ended March 31, 2015. The mobile telephony service
added 139,600 subscriber connections, including 29,300 in the first
quarter of 2015, compared with 18,200 in the same period of 2014. The
Club illico over-the-top video service, which still offers the largest
selection of unlimited, on-demand French-language content in Canada,
added 117,000 customers."
On April 7, 2015, the Québec City amphitheatre officially became the
Videotron Centre. Videotron is proud to associate its name and brands
with the future Québec City icon. "The relationship between the Québec
City arena and Videotron is a natural partnership which reflects our
attachment to the city," said Manon Brouillette. "Meanwhile, for the
10th consecutive year, Videotron was rated the most respected
telecommunications provider in Québec by the Léger survey, and for the
second consecutive year it was ranked the most influential
telecommunications brand in Québec on the 2015 Ipsos-Infopresse index.
We are very proud of these achievements."
"Since the beginning of 2015, the Media segment has scored a string of
mass-audience successes," said Julie Tremblay, President and Chief
Executive Officer of Media Group. "The sixth and final game of the
Montréal Canadiens-Ottawa Senators playoff series, played on
April 26, 2015, was seen by a record audience of 1,725,000 on the
TVA Sports specialty channel, a 40.3% market share. Since TVA Sports
began carrying National Hockey League hockey, its subscriber base has
swelled to more than 2.0 million. In our variety programming, season 3
of La Voix on the TVA Network set new ratings records; the weekly galas have drawn
an average of 2,787,000 viewers for an average 59% market share.
"In the growing digital media field, the journaldemontreal.com site saw a 72% increase in traffic on all platforms between July 2014
and February 2015, including a 142% increase on cell phones and
tablets, compared with a 2% decline for its main rival's platforms. The
larger number of visits to the Journal de Montréal website was due in large part to heavier traffic from mobile devices.
The print editions of Le Journal de Montréal, Le Journal de Québec and 24 heures are very strongly positioned in their respective markets and are read
by nearly one out of two adults in the Montréal and Québec City
metropolitan areas, according to the 2014 PMB and NADbank surveys."
In the Sports and Entertainment segment, on April 2, 2015, Quebecor
Media announced an 8-year strategic partnership with AEG Facilities,
the world leader in sports and entertainment venue management. The AEG
Live division will support the Sports and Entertainment segment in
booking events, shows and tours for the Videotron Centre, which is
slated to open officially on September 11, 2015. On April 28, 2015, the
Sports and Entertainment segment and Labatt Breweries of Canada
announced a partnership designating Labatt as the Videotron Centre's
official beer supplier.
Finally, the Videotron Centre's program for its first month was unveiled
in April and the first scheduled events, a preseason game between the
Montréal Canadiens and the Pittsburgh Penguins, and a Metallica
concert, are already sold out. Other events in September will include
an opening gala, two Remparts de Québec hockey games, a Madonna
concert, a show by Rock et Belles Oreilles, and a boxing card.
"We want to emphasize that the 40% increase in the quarterly dividend on
Class A Shares and Class B Shares reflects confidence on the part of
the Board of Directors and the management team in the Corporation's
future growth and solid financial position," said Jean-François
Pruneau, Senior Vice President and Chief Financial Officer of Quebecor.
"It should also be noted that the Board will review the dividend policy
annually on the basis of anticipated future cash flows."
"In the first months of 2015, Quebecor continued focusing on
implementation of its business plan in its growth sectors, including
mobility, Internet services, business services and its new Sports and
Entertainment segment," said Pierre Dion. "It remains strongly
positioned to achieve its development, growth and profitability
objectives going forward."
Table 1
Quebecor first quarter financial highlights, 2011 to 2015
(in millions of Canadian dollars, except per share data)
|
|
2015
|
2014
|
20131
|
20121
|
20111
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
948.6
|
$
|
897.8
|
$
|
877.3
|
$
|
869.7
|
$
|
797.1
|
Adjusted operating income
|
|
339.0
|
|
334.7
|
|
312.5
|
|
304.3
|
|
264.0
|
Income (loss) from continuing operations attributable to
shareholders
|
|
27.1
|
|
37.5
|
|
(4.6)
|
|
69.3
|
|
26.2
|
Net income (loss) attributable to shareholders
|
|
29.4
|
|
39.1
|
|
(6.5)
|
|
71.4
|
|
33.2
|
Adjusted income from continuing operations
|
|
40.8
|
|
44.3
|
|
32.3
|
|
35.4
|
|
27.7
|
Per basic share:
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations attributable to shareholders
|
|
0.22
|
|
0.31
|
|
(0.04)
|
|
0.55
|
|
0.20
|
|
Net income (loss) attributable to shareholders
|
|
0.24
|
|
0.32
|
|
(0.05)
|
|
0.56
|
|
0.26
|
|
Adjusted income from continuing operations
|
|
0.33
|
|
0.36
|
|
0.26
|
|
0.28
|
|
0.22
|
1
|
The financial figures for 2011 to 2013 have been restated to reflect
changes in accounting policy for the accounting of convertible
debentures.
|
Discontinued operations
On April 13, 2015, Quebecor Media closed the sale of its
English-language newspaper businesses in Canada - more than
170 newspapers and publications, the Canoe portal in English Canada,
and 8 printing plants, including the Islington, Ontario plant - for a
total cash consideration of $305.5 million, consisting of the selling
price of $316.0 million less $10.5 million for the customary
adjustments and adjustments related to real estate properties sold by
Sun Media Corporation prior to closing. The transaction was approved by
the Competition Bureau on March 25, 2015. On February 13, 2015,
Quebecor Media announced the discontinuation of the operations of the
English-language news and opinion specialty channel SUN News General
Partnership. On September 2, 2014, Quebecor Media closed the sale of
its Nurun Inc. ("Nurun") subsidiary to Publicis Groupe for a cash
consideration of $125.0 million, less disposed-of cash in the amount of
$18.1 million. An amount of $8.2 million was also received in
connection with certain adjustments as part of the transaction. The
results of operations and cash flows related to those businesses, as
well as the $41.5 million gain on the sale of Nurun in 2014, were
reclassified as discontinued operations in the consolidated statements
of income and cash flows.
2015/2014 first quarter comparison
Revenues: $948.6 million, an increase of $50.8 million (5.7%).
-
Revenues increased in Telecommunications ($38.4 million or 5.3% of
segment revenues), Media ($15.4 million or 8.4%) and Sports and
Entertainment ($3.7 million or 26.4%).
Adjusted operating income: $339.0 million, a $4.3 million (1.3%) increase.
-
Adjusted operating income increased in Telecommunications ($7.7 million
or 2.3% of segment adjusted operating income). Favourable variances
were recorded in Sports and Entertainment ($0.6 million) and Media
($0.3 million).
-
There was an unfavourable variance at Head Office (-$4.3 million),
resulting mainly from the unfavourable variance in the stock option
expense.
-
The change in the fair value of Quebecor Media stock options resulted in
a $1.9 million favourable variance in the stock-based compensation
charge in the first quarter of 2015 compared with the same period
of 2014. The change in the fair value of Quebecor stock options and the
impact of various transactions on the options issued under this program
resulted in a $6.0 million unfavourable variance in the Corporation's
stock-based compensation charge in the first quarter of 2015.
Net income attributable to shareholders: $29.4 million ($0.24 per basic share) in the first quarter of 2015,
compared with $39.1 million ($0.32 per basic share) in the same period
of 2014, an unfavourable variance of $9.7 million ($0.08 per basic
share).
-
The unfavourable variance was due primarily to:
-
$20.7 million increase in amortization charge;
-
$10.3 million unfavourable variance in the charge for restructuring of
operations, impairment of assets and other special items;
-
$8.0 million unfavourable variance in losses and gains on valuation and
translation of financial instruments, including the impact of a
$9.0 million unfavourable variance in convertible debentures (without
any tax consequences).
Partially offset by:
-
$20.4 million favourable variance in gains and losses on debt
refinancing;
-
$6.3 million decrease in financial expenses;
-
$4.3 million increase in adjusted operating income.
Adjusted income from continuing operations: $40.8 million ($0.33 per basic share) in the first quarter of 2015,
compared with $44.3 million ($0.36 per basic share) in the same period
of 2014, a decrease of $3.5 million ($0.03 per basic share).
Financial transactions
-
On April 10, 2015, Videotron completed the redemption of all the 6.375%
Senior Notes maturing on December 15, 2015, in the aggregate principal
amount of US$175.0 million, at a redemption price equal to 100% of the
principal amount, and unwound the related hedges in an asset position.
The redemption notice was issued on March 11, 2015.
-
On March 20, 2015, TVA Group completed a rights offering whereby it
received net proceeds totalling approximately $110.0 million from the
issuance of 19,434,629 Class B Shares, non-voting, participating,
without par value ("Class B Non-Voting Shares") of TVA Group. Under the
rights offering, Quebecor Media subscribed for 17,300,259 Class B
Non-Voting Shares of TVA Group at a total cost of $97.9 million. As a
result, its total interest in TVA Group's equity increased from 51.5%
to 68.4%.
Dividend
On May 6, 2015, the Board of Directors of Quebecor declared a quarterly
dividend of $0.035 per share on its Class A Shares and Class B Shares,
payable on June 16, 2015 to shareholders of record at the close of
business on May 22, 2015. This dividend is designated to be 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 2015 results, please
refer to the Management Discussion and Analysis and consolidated
financial statements of Quebecor, available on the Corporation's
website at: http://www.quebecor.com/en/quarterly_doc_quebecor_inc or from the SEDAR filing service at www.sedar.com.
Conference call for investors and webcast
Quebecor will hold a conference call to discuss its first quarter 2015
results on May 7, 2015, at 4:30 p.m. EDT. There will be a question
period reserved for financial analysts. To access the conference call,
please dial 1 877 293-8052, access code for participants 62079#. A tape
recording of the call will be available from May 7 to July 9, 2015 by
dialling 1 877 293-8133, conference number 1178414, access code for
participants 62079#. The conference call will also be broadcast live on
Quebecor's website at www.quebecor.com/en/content/conference-call. It is advisable to ensure the appropriate software is installed before
accessing the call. Instructions and links to free player downloads are
available at the Internet address shown above.
Cautionary statement regarding forward-looking statements
The statements in this press release that are not historical facts are
forward-looking statements and are subject to significant known and
unknown risks, uncertainties and assumptions that could cause the
Corporation's actual results for future periods to differ materially
from those set forth in the forward-looking statements. Forward-looking
statements may be identified by the use of the conditional or by
forward-looking terminology such as the terms "plans," "expects,"
"may," "anticipates," "intends," "estimates," "projects," "seeks,"
"believes," or similar terms, variations of such terms or the negative
of such terms. Certain factors that may cause actual results to differ
from current expectations include seasonality (including seasonal
fluctuations in customer orders), operating risk (including
fluctuations in demand for Quebecor's products and pricing actions by
competitors), insurance risk, risks associated with capital investment
(including risks related to technological development and equipment
availability and breakdown), environmental risks, risks associated with
labour agreements, risks associated with commodities and energy prices
(including fluctuations in the cost and availability of raw materials),
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, 2014.
The forward-looking statements in this press release reflect Quebecor's
expectations as of May 7, 2015, 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) (TSX:QBR.B) is headquartered in Québec. It holds a
75.36% interest in Quebecor Media, which employs close to 11,300 people
in Canada.
A family business founded in 1950, Quebecor is strongly committed to the
community. Every year, it actively supports people working with more
than 400 organizations in the vital fields of culture, health,
education, the environment, and entrepreneurship.
Visit our website: www.quebecor.com
Follow us on Twitter: twitter.com/QuebecorMedia
DEFINITIONS
Adjusted Operating Income
In its analysis of operating results, the Corporation defines adjusted
operating income, as reconciled to net income under International
Financial Reporting Standards ("IFRS"), as net income before
depreciation and amortization, financial expenses, (loss) gain on
valuation and translation of financial instruments, charge for
restructuring of operations, impairment of assets and other special
items, gain (loss) on debt refinancing, income tax, and income from
discontinued operations. Adjusted operating income as defined above is
not a measure of results that is consistent with IFRS. It is not
intended to be regarded as an alternative to other financial operating
performance measures or to the statement of cash flows as a measure of
liquidity. It should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with IFRS. The
Corporation uses adjusted operating income in order to assess the
performance of its investment in Quebecor Media. The Corporation's
management and Board of Directors use this measure in evaluating its
consolidated results, as well as the results of the Corporation's
operating segments. This measure eliminates the significant level of
impairment and depreciation/amortization of tangible and intangible
assets and is unaffected by the capital structure or investment
activities of the Corporation and its segments.
Adjusted operating income is also relevant because it is a significant
component of the Corporation's annual incentive compensation programs.
A limitation of this measure, however, is that it does not reflect the
periodic costs of tangible and intangible assets used in generating
revenues in the Corporation's segments. The Corporation also uses other
measures that do reflect such costs, such as cash flows from segment
operations and free cash flows from continuing operating activities of
the Quebecor Media subsidiary. The Corporation's definition of adjusted
operating income may not be the same as similarly titled measures
reported by other companies.
Table 2 below provides a reconciliation of adjusted operating income to
net income as disclosed in Quebecor's condensed consolidated financial
statements.
Table 2
Reconciliation of the adjusted operating income measure used in this
press release to the net income measure used in the condensed
consolidated financial statements
(in millions of Canadian dollars)
|
|
Three months ended March 31
|
|
2015
|
2014
|
|
|
|
|
|
Adjusted operating (loss) income:
|
|
|
|
|
|
Telecommunications
|
$
|
343.3
|
$
|
335.6
|
|
Media
|
|
(5.9)
|
|
(6.2)
|
|
Sports and Entertainment
|
|
(0.1)
|
|
(0.7)
|
|
Head Office
|
|
1.7
|
|
6.0
|
|
|
339.0
|
|
334.7
|
Depreciation and amortization
|
|
(182.4)
|
|
(161.7)
|
Financial expenses
|
|
(87.8)
|
|
(94.1)
|
(Loss) gain on valuation and translation of financial Instruments
|
|
(5.1)
|
|
2.9
|
Restructuring of operations, impairment of assets and other special
items
|
|
(11.4)
|
|
(1.1)
|
Gain (loss) on debt refinancing
|
|
1.7
|
|
(18.7)
|
Income taxes
|
|
(19.7)
|
|
(16.3)
|
Income from discontinued operations
|
|
1.6
|
|
1.4
|
Net income
|
$
|
35.9
|
$
|
47.1
|
Adjusted Income from Continuing Operations
The Corporation defines adjusted income from continuing operations, as
reconciled to net income attributable to shareholders under IFRS, as
net income attributable to shareholders before (loss) gain on valuation
and translation of financial instruments, charge for restructuring of
operations, impairment of assets and other special items, gain (loss)
on debt refinancing, net of income tax related to adjustments and net
income attributable to non-controlling interests related to
adjustments, and before income from discontinued operations
attributable to shareholders. Adjusted income from continuing
operations, 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 operations
to analyze trends in the performance of its businesses. The
above-listed items are excluded from the calculation of this measure
because they impair the comparability of the financial results.
Adjusted income from continuing operations is more representative for
the purpose of forecasting income. The Corporation's definition of
adjusted income from continuing operations may not be identical to
similarly titled measures reported by other companies.
Table 3 provides a reconciliation of adjusted income from continuing
operations 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 operations 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
|
|
2015
|
2014
|
|
|
|
|
|
Adjusted income from continuing operations
|
$
|
40.8
|
$
|
44.3
|
(Loss) gain on valuation and translation of financial instruments
|
|
(5.1)
|
|
2.9
|
Restructuring of operations, impairment of assets and other special
items
|
|
(11.4)
|
|
(1.1)
|
Gain (loss) on debt refinancing
|
|
1.7
|
|
(18.7)
|
Income taxes related to adjustments1
|
|
(1.0)
|
|
7.3
|
Net income attributable to non-controlling interest related to
adjustments
|
|
2.1
|
|
2.8
|
Discontinued operations
|
|
2.3
|
|
1.6
|
Net income attributable to shareholders
|
$
|
29.4
|
$
|
39.1
|
1
|
Includes impact of fluctuations in income tax applicable to adjusted
items, either for statutory reasons or in connection with tax
transactions.
|
Average Monthly Revenue per User
ARPU is an industry metric that the Corporation uses to measure monthly
revenues from its cable television, Internet access, cable and mobile
telephony and over-the-top video services, per average basic customer.
ARPU is not a measurement that is consistent with IFRS and the
Corporation's definition and calculation of ARPU may not be the same as
identically titled measurements reported by other companies. The
Corporation calculates ARPU by dividing its combined revenues from its
cable television, Internet access, cable and mobile telephony and
over-the-top video services by the average number of basic customers
during the applicable period, and then dividing the resulting amount by
the number of months in the applicable period.
QUEBECOR INC. AND ITS SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
(in millions of Canadian dollars, except for earnings per share data)
|
(unaudited)
|
Three months ended March 31
|
|
2015
|
|
2014
|
|
|
|
|
Revenues
|
$
|
948.6
|
$
|
897.8
|
|
|
Employee costs
|
|
186.8
|
|
165.8
|
Purchase of goods and services
|
|
422.8
|
|
397.3
|
Depreciation and amortization
|
|
182.4
|
|
161.7
|
Financial expenses
|
|
87.8
|
|
94.1
|
Loss (gain) on valuation and translation of financial instruments
|
|
5.1
|
|
(2.9)
|
Restructuring of operations, impairment of assets and other special
items
|
|
11.4
|
|
1.1
|
(Gain) loss on debt refinancing
|
|
(1.7)
|
|
18.7
|
Income before income taxes
|
|
54.0
|
|
62.0
|
Income taxes (recovery):
|
|
|
|
|
|
Current
|
|
36.3
|
|
6.2
|
|
Deferred
|
|
(16.6)
|
|
10.1
|
|
|
19.7
|
|
16.3
|
Income from continuing operations
|
|
34.3
|
|
45.7
|
Income from discontinued operations
|
|
1.6
|
|
1.4
|
Net income
|
$
|
35.9
|
$
|
47.1
|
Income from continuing operations attributable to
|
|
|
Shareholders
|
$
|
27.1
|
$
|
37.5
|
|
Non-controlling interests
|
|
7.2
|
|
8.2
|
Net income attributable to
|
|
|
Shareholders
|
$
|
29.4
|
$
|
39.1
|
|
Non-controlling interests
|
|
6.5
|
|
8.0
|
|
|
Earnings per share attributable to shareholders
|
|
|
Basic:
|
|
|
|
From continuing operations
|
$
|
0.22
|
$
|
0.31
|
|
|
From discontinued operations
|
|
0.02
|
|
0.01
|
|
|
Net income
|
|
0.24
|
|
0.32
|
|
Diluted:
|
|
|
|
From continuing operations
|
|
0.22
|
|
0.28
|
|
|
From discontinued operations
|
|
0.02
|
|
0.01
|
|
|
Net income
|
|
0.24
|
|
0.29
|
|
|
Weighted average number of shares outstanding (in millions)
|
|
122.9
|
|
123.1
|
Weighted average number of diluted shares (in millions)
|
|
123.2
|
|
144.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUEBECOR INC. AND ITS SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|
(in millions of Canadian dollars)
|
(unaudited)
|
Three months ended March 31
|
|
2015
|
2014
|
|
|
Income from continuing operations
|
$
|
34.3
|
$
|
45.7
|
|
|
Other comprehensive loss from continuing operations:
|
|
|
Items that may be reclassified to income:
|
|
|
|
Cash flow hedges:
|
|
|
|
|
Gain (loss) on valuation of derivative financial instruments
|
|
7.3
|
|
(11.6)
|
|
|
|
Deferred income taxes
|
|
(22.4)
|
|
(7.7)
|
|
|
|
Reclassification to income:
|
|
|
|
Gain related to cash flow hedges
|
|
(1.8)
|
|
(10.8)
|
|
|
Deferred income taxes
|
|
0.4
|
|
0.4
|
|
|
|
(16.5)
|
|
(29.7)
|
|
|
|
|
|
Comprehensive income from continuing operations
|
|
17.8
|
|
16.0
|
|
|
|
|
|
Income from discontinued operations
|
|
1.6
|
|
1.4
|
Other comprehensive income from discontinued operations
|
|
-
|
|
1.9
|
Comprehensive income
|
$
|
19.4
|
$
|
19.3
|
|
|
|
|
|
Comprehensive income from continuing operations attributable to
|
|
|
|
|
|
Shareholders
|
$
|
14.8
|
$
|
15.1
|
|
Non-controlling interests
|
|
3.0
|
|
0.9
|
|
|
|
|
|
Comprehensive income attributable to
|
|
|
|
|
|
Shareholders
|
$
|
17.2
|
$
|
18.1
|
|
Non-controlling interests
|
|
2.2
|
|
1.2
|
QUEBECOR INC. AND ITS SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
SEGMENTED INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
Media
|
|
Sports
and
Entertainment
|
|
Head
office and
Intersegments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
762.5
|
$
|
199.5
|
$
|
17.7
|
$
|
(31.1)
|
$
|
948.6
|
|
|
|
|
|
|
|
|
|
|
|
Employee costs
|
|
98.2
|
|
76.0
|
|
3.4
|
|
9.2
|
|
186.8
|
Purchase of goods and services
|
|
321.0
|
|
129.4
|
|
14.4
|
|
(42.0)
|
|
422.8
|
Adjusted operating income1
|
|
343.3
|
|
(5.9)
|
|
(0.1)
|
|
1.7
|
|
339.0
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
182.4
|
Financial expenses
|
|
|
|
|
|
|
|
|
|
87.8
|
Loss on valuation and translatioof financial instruments
|
|
|
|
|
|
|
|
|
|
5.1
|
Restructuring of operations, impairment of assetand other special items
|
|
|
|
|
|
|
|
|
|
11.4
|
Gain on debt refinancing
|
|
|
|
|
|
|
|
|
|
(1.7)
|
Income before income taxes
|
|
|
|
|
|
|
|
|
$
|
54.0
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment
|
$
|
161.6
|
$
|
7.1
|
$
|
1.1
|
$
|
-
|
$
|
169.8
|
Additions to intangible assets
|
|
24.9
|
|
1.7
|
|
0.1
|
|
0.6
|
|
27.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
Media
|
|
Sports
and
Entertainment
|
|
Head
office and
Intersegments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
724.1
|
$
|
184.1
|
$
|
14.0
|
$
|
(24.4)
|
$
|
897.8
|
|
|
|
|
|
|
|
|
|
|
|
Employee costs
|
|
93.0
|
|
65.5
|
|
2.3
|
|
5.0
|
|
165.8
|
Purchase of goods and services
|
|
295.5
|
|
124.8
|
|
12.4
|
|
(35.4)
|
|
397.3
|
Adjusted operating income1
|
|
335.6
|
|
(6.2)
|
|
(0.7)
|
|
6.0
|
|
334.7
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
161.7
|
Financial expenses
|
|
|
|
|
|
|
|
|
|
94.1
|
Gain on valuation and translatioof financial instruments
|
|
|
|
|
|
|
|
|
|
(2.9)
|
Restructuring of operations, impairment of assetand other special items
|
|
|
|
|
|
|
|
|
|
1.1
|
Loss on debt refinancing
|
|
|
|
|
|
|
|
|
|
18.7
|
Income before income taxes
|
|
|
|
|
|
|
|
|
$
|
62.0
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment
|
$
|
143.3
|
$
|
9.2
|
$
|
1.9
|
$
|
-
|
$
|
154.4
|
|
|
|
|
|
|
|
|
|
|
|
Additions to intangible assets
|
|
68.9
|
|
1.9
|
|
-
|
|
0.3
|
|
71.1
|
|
|
1
|
The Chief Executive Officer uses adjusted operating income as the
measure of profit to assess the performance of each segment. Adjusted
operating income is referred as a non-IFRS measure and is defined as
net income before depreciation and amortization, financial expenses,
loss (gain) on valuation and translation of financial instruments,
restructuring of operations, impairment of assets and other special
items, (gain) loss on debt refinancing, income taxes and income from
discontinued operations.
|
QUEBECOR INC. AND ITS SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable to shareholders
|
|
|
|
|
|
|
Capital
stock
|
|
Contributed
surplus
|
|
Retained
earnings
|
|
Accumulated
other
comprehensive
income (loss)
|
|
Equity
attributable
to non-
controlling
interests
|
|
Total
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2013
|
$
|
328.9
|
$
|
2.3
|
$
|
291.4
|
$
|
(23.1)
|
$
|
595.9
|
$
|
1,195.4
|
Net income
|
|
-
|
|
-
|
|
39.1
|
|
-
|
|
8.0
|
|
47.1
|
Other comprehensive loss
|
|
-
|
|
-
|
|
-
|
|
(21.0)
|
|
(6.8)
|
|
(27.8)
|
Repurchase of Class B Shares
|
|
(1.1)
|
|
-
|
|
(6.1)
|
|
-
|
|
-
|
|
(7.2)
|
Non-controlling interests acquisition
|
|
-
|
|
-
|
|
(0.1)
|
|
-
|
|
0.1
|
|
-
|
Dividends
|
|
-
|
|
-
|
|
(3.1)
|
|
-
|
|
(6.3)
|
|
(9.4)
|
Balance as of March 31, 2014
|
|
327.8
|
|
2.3
|
|
321.2
|
|
(44.1)
|
|
590.9
|
|
1,198.1
|
Net loss
|
|
-
|
|
-
|
|
(69.2)
|
|
-
|
|
(2.3)
|
|
(71.5)
|
Other comprehensive loss
|
|
-
|
|
-
|
|
-
|
|
(20.3)
|
|
(10.7)
|
|
(31.0)
|
Repurchase of Class B Shares
|
|
(0.6)
|
|
-
|
|
(3.9)
|
|
-
|
|
-
|
|
(4.5)
|
Non-controlling interests acquisition
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.1)
|
|
(0.1)
|
Dividends
|
|
-
|
|
-
|
|
(9.2)
|
|
-
|
|
(18.5)
|
|
(27.7)
|
Balance as of December 31, 2014
|
|
327.2
|
|
2.3
|
|
238.9
|
|
(64.4)
|
|
559.3
|
|
1,063.3
|
Net income
|
|
-
|
|
-
|
|
29.4
|
|
-
|
|
6.5
|
|
35.9
|
Other comprehensive loss
|
|
-
|
|
-
|
|
-
|
|
(12.2)
|
|
(4.3)
|
|
(16.5)
|
Issuance of shares of a subsidiary to non-controlling interests
|
|
-
|
|
-
|
|
-
|
|
-
|
|
12.1
|
|
12.1
|
Non-controlling interests acquisition
|
|
-
|
|
-
|
|
14.1
|
|
-
|
|
(14.1)
|
|
-
|
Dividends
|
|
-
|
|
-
|
|
(3.1)
|
|
-
|
|
(6.2)
|
|
(9.3)
|
Balance as of March 31, 2015
|
$
|
327.2
|
$
|
2.3
|
$
|
279.3
|
$
|
(76.6)
|
$
|
553.3
|
$
|
1,085.5
|
QUEBECOR INC. AND ITS SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(in millions of Canadian dollars)
|
(unaudited)
|
Three months ended March 31
|
|
2015
|
2014
|
|
|
|
|
|
Cash flows related to operating activities
|
|
|
|
|
|
Income from continuing operations
|
$
|
34.3
|
$
|
45.7
|
|
Adjustments for:
|
|
|
|
|
|
|
Depreciation of property, plant and equipment
|
|
148.8
|
|
131.0
|
|
|
Amortization of intangible assets
|
|
33.6
|
|
30.7
|
|
|
Loss (gain) on valuation and translation of financial instruments
|
|
5.1
|
|
(2.9)
|
|
|
Impairment of assets
|
|
7.0
|
|
-
|
|
|
(Gain) loss on debt refinancing
|
|
(1.7)
|
|
18.7
|
|
|
Amortization of financing costs and long-term debt discount
|
|
2.0
|
|
3.0
|
|
|
Deferred income taxes
|
|
(16.6)
|
|
10.1
|
|
|
Other
|
|
2.0
|
|
2.0
|
|
|
|
214.5
|
|
238.3
|
|
Net change in non-cash balances related to operating activities
|
|
(82.9)
|
|
(83.7)
|
Cash flows provided by continuing operating activities
|
|
131.6
|
|
154.6
|
Cash flows related to investing activities
|
|
|
|
|
|
Business acquisitions
|
|
(35.5)
|
|
(0.6)
|
|
Additions to property, plant and equipment
|
|
(169.8)
|
|
(154.4)
|
|
Additions to intangible assets
|
|
(27.3)
|
|
(71.1)
|
|
Proceeds from disposals of assets
|
|
0.3
|
|
0.8
|
|
Other
|
|
0.2
|
|
-
|
Cash flows used in continuing investing activities
|
|
(232.1)
|
|
(225.3)
|
Cash flows related to financing activities
|
|
|
|
|
|
Net change in bank indebtedness
|
|
(3.9)
|
|
36.7
|
|
Net change under revolving facilities
|
|
(12.6)
|
|
77.9
|
|
Repayments of long-term debt
|
|
(6.5)
|
|
(6.4)
|
|
Settlement of hedging contracts
|
|
(0.1)
|
|
(116.0)
|
|
Issuance of shares of a subsidiary to non-controlling interests
|
|
12.1
|
|
-
|
|
Repurchase of Class B Shares
|
|
-
|
|
(7.2)
|
|
Dividends paid to non-controlling shareholders
|
|
(6.2)
|
|
(6.3)
|
Cash flows used in continuing financing activities
|
|
(17.2)
|
|
(21.3)
|
|
|
|
|
|
Net change in cash and cash equivalents from continuing operations
|
|
(117.7)
|
|
(92.0)
|
|
|
|
|
|
Cash flows (used in) provided by discontinued operations
|
|
(5.6)
|
|
20.9
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
395.3
|
|
476.6
|
Cash and cash equivalents at end of period
|
$
|
272.0
|
$
|
405.5
|
|
|
|
|
|
Cash and cash equivalents consist of
|
|
|
|
|
|
Cash
|
$
|
166.8
|
$
|
139.9
|
|
Cash equivalents
|
|
105.2
|
|
265.6
|
|
$
|
272.0
|
$
|
405.5
|
|
|
|
|
|
|
|
|
|
|
Interest and taxes reflected as operating activities
|
|
|
|
|
|
Cash interest payments
|
$
|
31.0
|
$
|
29.6
|
|
Cash income tax payments (net of refunds)
|
|
66.8
|
|
67.5
|
QUEBECOR INC. AND ITS SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
|
(in millions of Canadian dollars)
|
(unaudited)
|
March 31
|
December 31
|
|
2015
|
2014
|
|
|
Assets
|
|
|
|
Current assets
|
|
|
Cash and cash equivalents
|
$
|
272.0
|
$
|
395.3
|
|
Accounts receivable
|
|
424.0
|
|
449.4
|
|
Income taxes
|
|
8.7
|
|
6.7
|
|
Inventories
|
|
228.7
|
|
212.2
|
|
Prepaid expenses
|
|
60.7
|
|
38.0
|
|
Derivative financial instruments
|
|
17.3
|
|
-
|
|
Assets held for sale
|
|
380.1
|
|
398.1
|
|
|
1,391.5
|
|
1,499.7
|
|
|
Non-current assets
|
|
|
Property, plant and equipment
|
|
3,407.4
|
|
3,430.4
|
|
Intangible assets
|
|
937.7
|
|
945.8
|
|
Goodwill
|
|
2,737.4
|
|
2,714.6
|
|
Derivative financial instruments
|
|
714.0
|
|
400.9
|
|
Deferred income taxes
|
|
9.3
|
|
7.8
|
|
Other assets
|
|
90.5
|
|
79.3
|
|
|
7,896.3
|
|
7,578.8
|
Total assets
|
$
|
9,287.8
|
$
|
9,078.5
|
|
|
Liabilities and equity
|
|
|
|
Current liabilities
|
|
|
Bank indebtedness
|
$
|
1.3
|
$
|
5.2
|
|
Accounts payable and accrued charges
|
|
573.8
|
|
650.2
|
|
Provisions
|
|
59.4
|
|
56.7
|
|
Deferred revenue
|
|
287.0
|
|
283.0
|
|
Income taxes
|
|
53.5
|
|
85.5
|
|
Derivative financial instruments
|
|
-
|
|
0.9
|
|
Current portion of long-term debt
|
|
244.5
|
|
230.1
|
|
Liabilities held for sale
|
|
79.2
|
|
97.9
|
|
|
1,298.7
|
|
1,409.5
|
|
|
Non-current liabilities
|
|
|
Long-term debt
|
|
5,313.6
|
|
5,048.2
|
|
Derivative financial instruments
|
|
126.8
|
|
101.9
|
|
Convertible debentures
|
|
500.0
|
|
500.0
|
|
Other liabilities
|
|
426.5
|
|
426.8
|
|
Deferred income taxes
|
|
536.7
|
|
528.8
|
|
|
6,903.6
|
|
6,605.7
|
Equity
|
|
|
Capital stock
|
|
327.2
|
|
327.2
|
|
Contributed surplus
|
|
2.3
|
|
2.3
|
|
Retained earnings
|
|
279.3
|
|
238.9
|
|
Accumulated other comprehensive loss
|
|
(76.6)
|
|
(64.4)
|
|
Equity attributable to shareholders
|
|
532.2
|
|
504.0
|
|
Non-controlling interests
|
|
553.3
|
|
559.3
|
|
|
1,085.5
|
|
1,063.3
|
|
|
|
Total liabilities and equity
|
$
|
9,287.8
|
$
|
9,078.5
|
SOURCE Quebecor
Jean-François Pruneau, Senior Vice President and Chief Financial Officer, Quebecor Inc. and Quebecor Media Inc., jean-francois.pruneau@quebecor.com, 514 380-4144 ; Martin Tremblay, Vice President, Public Affairs, Quebecor Media Inc., martin.tremblay@quebecor.com, 514 380-1985