MONTRÉAL, Nov. 5, 2015 /CNW
Telbec/ - Quebecor Inc. ("Quebecor" or the "Corporation")
today reported its consolidated financial results for the third
quarter of 2015. Quebecor consolidates the financial results
of its Quebecor Media Inc. ("Quebecor Media") subsidiary. On
September 9, 2015, the Corporation's interest in Quebecor
Media was increased from 75.4% to 81.1% following the repurchase by
Quebecor Media of 7,268,324 Common Shares of its capital stock
held by CDP Capital d'Amérique Investissement inc.
("CDP Capital"), a subsidiary of the Caisse de dépôt et
placement du Québec.
HIGHLIGHTS
Third quarter 2015
- Revenues: $971.7 million, up
$83.9 million (9.5%) from the same
period of the previous year.
- Adjusted operating income:1 $391.4 million, up $29.6
million (8.2%).
- Net income attributable to shareholders: $85.1 million ($0.69 per basic share) in the third quarter of
2015, compared with $45.1 million
($0.37 per basic share) in the same
period of 2014, a favourable variance of $40.0 million ($0.32 per basic share).
- Adjusted income from continuing operations:2
$74.0 million ($0.60 per basic share) in the third quarter of
2015, compared with $58.1 million
($0.47 per basic share) in the same
period of 2014, an increase of $15.9
million ($0.13 per basic
share) or 27.4%.
- On October 15, 2015, the Supreme
Court of Canada rejected an application from Bell ExpressVu Limited
Partnership ("Bell ExpressVu"), a subsidiary of Bell Canada, for leave to appeal the Court of
Appeal of Quebec judgement
ordering it to pay compensation to Videotron Ltd. ("Videotron") and
TVA Group Inc. ("TVA Group"). Accordingly, a $139.1 million non‑adjusted‑operating-income gain
on litigation was recognized in the third quarter of 2015.
- On September 9, 2015, Quebecor
Media repurchased a portion of CDP Capital's interest for
$500.0 million, increasing the
Corporation's interest in Quebecor Media from 75.4% to 81.1%.
- The Telecommunications segment's revenues were up $43.0 million (6.0%) in the third quarter of 2015
and its adjusted operating income was up $11.2 million (3.3%) despite an $8.3 million unfavourable variance in one‑time
items. Videotron's revenues from mobile telephony increased by
$30.8 million (40.7%), from Internet
access services by $15.3 million
(7.1%), and from the Club illico over-the-top video service by
$2.5 million (73.5%).
- Videotron's average monthly revenue per user3
("ARPU") increased by $10.92 (8.7%)
from $126.02 in the third quarter of
2014 to $136.94 in the third quarter
of 2015, including an increase of $4.94 (11.2%) in revenues from the mobile
telephony service.
- Revenue-generating units:4 Net increase of 85,800
units (1.6%) in the third quarter of 2015, including increases of
39,600 subscriber connections to the mobile telephone service,
35,700 subscriptions to the over-the-top video service and 20,400
subscriptions to the cable Internet access service.
- Over the 12-month period ended September
30, 2015, the total number of revenue-generating units
increased by 185,700 (3.4%), including an increase of 152,100
subscriber connections to the mobile telephony service, the largest
12‑month increase since 2011. Subscriptions to the over-the-top
video service increased by 84,800 during the 12‑month period.
- The Media segment's revenues were up by $39.7 million (21.3%) in the third quarter of
2015 and its adjusted operating income by $19.0 million (78.2%) due, among other things, to
the strong performance of MELS studios, acquired in December 2014.
1
|
See "Adjusted
operating income" under "Definitions."
|
2
|
See "Adjusted
income from continuing operations" under "Definitions."
|
3
|
See "Average
monthly revenue per user" under "Definitions."
|
4
|
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.
|
"Our Corporation grew its revenues and adjusted operating income
in the third quarter of 2015," said Pierre Dion, President and
CEO of Quebecor. "Revenues increased in all our business segments.
The solid performance reflects our effective investments and
business development strategy. The strong third-quarter results
were driven by the continuing success of Videotron's service
offering, particularly mobile telephony, which is steadily
expanding its customer base, and by successful revenue
diversification in the Media segment, with the acquisition of
substantially all of the assets of MELS studios and the emergence
of the TVA Sports specialty channel. It is also noteworthy
that adjusted income from continuing operations was up $15.9 million, or 27.4%, in the third
quarter of 2015 compared with the same period of 2014."
"Once again, the Telecommunications segment posted very strong
results, increasing both its revenues and its operating income,"
commented Manon Brouillette,
President and CEO of Videotron. "It should be noted that the
increase in adjusted operating income would have been greater still
were it not for the impact of one-time items. The results were
again driven by the excellent performance of our mobile telephony
service, which now serves 742,500 customers, and our Internet
access service, which has more than 1.5 million customers. I
should also mention the significant growth of our Club illico
over-the-top video service, the Canadian standard for
French‑language on-demand subscription content, available without
limitation to its 228,500 subscribers. Revenues from our
business services also jumped 13.7% in the third quarter of 2015,
reflecting our sustained growth in this developing segment.
"The number of connections to the mobile telephony service
increased by 152,100 (25.8%) during the 12‑month period ended
September 30, 2015, the largest 12-month gain for the
service since 2011, despite the highly competitive market
environment. Total ARPU for all of Videotron's services was up
$10.92 (8.7%) to $136.94 in the third quarter of 2015, again
propelled by the growth of the mobile telephony service, whose ARPU
rose by $4.94 (11.2%). This success
is closely related to the performance of our LTE network,
which was rated 'the fastest in Canada' by a report from the
UK-based firm OpenSignal released in September.
"To enhance its offering of hosting and data processing services
to its business customers, Videotron announced capital expenditures
of $75.0 million over several
years to expand the 4Degrees Colocation Inc. data centre in
Québec City and build a new 4,000 square-metre data centre in
Montréal. These investments are the second phase of an initiative
launched in March with the acquisition of the Québec City data
centre. Our two data centres, which meet the highest industry
standards, equip us to meet our business customers' surging data
processing needs.
"In keeping with its commitment to innovation and its
determination to stay at the industry's leading edge, Videotron
released the illico 4K ultra-HD PVR during the quarter,
becoming the first Canadian telecommunications provider to offer
customers throughout its service area ultra‑high‑definition on a
commercial basis. We also launched Unlimited Music, a service that
allows some subscribers to our LTE mobile network to stream
music via the most popular platforms without restriction and
without using their mobile data plan," Ms. Brouillette
concluded.
"The Media segment grew its revenues by $39.7 million (21.3%) and its adjusted
operating income by $19.0 million (78.2%)," noted Julie Tremblay, President and CEO of Media
Group. "Our business acquisition strategy made a significant
contribution to adjusted operating income, thanks to the addition
of the results of MELS, a flagship of Québec's film production and
audiovisual services industry that has earned an international
reputation. Our strong results were also due to our strategy of
investing in new products, including the TVA Sports specialty
channel, whose subscriber base has shot up since its creation in
September 2011, contributing to the improved third quarter
2015 results. Finally, our cost-reduction and control program has
also helped maintain the profitability of our over‑the‑air
television network (TVA Network).
"In print and electronic media, Le Journal de Montréal,
Le Journal de Québec and the free daily 24 heures
remain Québec's news leaders, according to the most recent Vividata
survey data for Fall 2015. Every week, they reach a total of more
than 3.8 million readers across all platforms (print, mobile
and Web). TVA Publications is now Canada's magazine industry
leader with 10.8 million readers across all platforms. We are
very proud of these excellent results and pleased by the popularity
of our dailies on print and digital platforms alike. This success
confirms the soundness of our decision to focus on our print
editions while continuing intensive innovation on the digital front
to offer our readers multiplatform options and meet our
advertisers' specific needs."
In the Sports and Entertainment segment, the Videotron Centre
has already welcomed more than 300,000 guests since its
official opening in September 2015. It has successfully hosted
numerous sporting and entertainment events, and an extensive
schedule of events has been announced for the coming weeks and for
2016. In connection with the effort to land a National Hockey
League ("NHL") franchise, whose home arena would be the Videotron
Centre, Quebecor management presented its business plan to the
NHL Executive Committee at the NHL's head office in
New York City in September.
Finally, other long-term development initiatives were announced
during the quarter, including a strategic partnership between
Quebecor Content and NBCUniversal International Studios to develop
new entertainment formats. The creation of Goji, a project that
provides support for the best YouTube content creators to help them
develop their brands, and an agreement with the French company
meltygroup, which operates a suite of websites for young people
aged 15 to 30, will also position Quebecor to make major
breakthroughs in the booming market for content aimed at young
adults.
In September 2015, Quebecor Media
completed the repurchase of a portion of CDP Capital's interest in
its capital stock, as part of its plan, launched in
October 2012, to purchase and repurchase the Quebecor Media
shares held by the Caisse de dépôt et placement du Québec. "We are
reaffirming our long-term goal of making Quebecor the sole
shareholder in Quebecor Media," said Jean‑François Pruneau,
CFO of Quebecor. "This transaction was financed in accordance
with our basic objective of maintaining sound balance sheet
management. It is a positive move both for our financial partner,
which has supported us since the creation of Quebecor Media
in 2000, and for our shareholders."
"Quebecor thus posted strong consolidated financial results in
the third quarter of 2015 as it pursued its business plan focused
on investment in activities with strong developmental potential,"
commented Pierre Dion. "The
Corporation remains favourably positioned to achieve its
profitability and growth objectives for full year 2015 and future
years."
Table
1
|
Quebecor third
quarter financial highlights, 2011 to 2015
|
(in millions of
Canadian dollars, except per share data)
|
|
2015
|
2014
|
20131
|
20121
|
20111
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
971.7
|
$
|
887.8
|
$
|
883.4
|
$
|
841.3
|
$
|
796.5
|
Adjusted operating
income
|
|
391.4
|
|
361.8
|
|
364.2
|
|
337.2
|
|
298.8
|
Income from
continuing operations attributable to shareholders
|
|
87.0
|
|
9.8
|
|
12.9
|
|
124.1
|
|
20.8
|
Net income (loss)
attributable to shareholders
|
|
85.1
|
|
45.1
|
|
(188.8)
|
|
17.1
|
|
25.0
|
Adjusted income from
continuing operations
|
|
74.0
|
|
58.1
|
|
58.8
|
|
51.7
|
|
33.7
|
Per basic
share:
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations attributable to shareholders
|
|
0.71
|
|
0.08
|
|
0.10
|
|
0.98
|
|
0.16
|
|
Net income (loss)
attributable to shareholders
|
|
0.69
|
|
0.37
|
|
(1.53)
|
|
0.14
|
|
0.20
|
|
Adjusted income from
continuing operations
|
|
0.60
|
|
0.47
|
|
0.47
|
|
0.41
|
|
0.26
|
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 September 27, 2015, Quebecor
closed the sale of the retail business of Archambault
Group Inc., including the 14 Archambault stores, the
archambault.ca portal, and the English-language Paragraphe
Bookstore, to Groupe Renaud‑Bray inc. for a cash consideration
of $14.5 million, less disposed-of cash in the amount of
$1.1 million, plus a
$3.2 million balance receivable
subject to certain adjustments related to working capital items.
The transaction was approved by the Competition Bureau on
September 4, 2015. 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, less disposed-of cash in the
amount of $1.9 million. 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.
The operating results and cash flows related to all those
businesses have been reclassified as discontinued operations in the
consolidated statements of income and cash flows.
2015/2014 third quarter comparison
Revenues: $971.7 million, an $83.9 million (9.5%) increase.
- Revenues increased in Telecommunications ($43.0 million or 6.0% of segment revenues), Media
($39.7 million or 21.3%) and Sports
and Entertainment ($4.1 million or
33.9%).
Adjusted operating income: $391.4
million, a $29.6 million
(8.2%) increase.
- Adjusted operating income increased in Media ($19.0 million or 78.2% of segment adjusted
operating income) and Telecommunications ($11.2 million or 3.3%). There was a $3.3 million increase at Head Office, due mainly
to the favourable variance in the fair value of stock options.
- The Sports and Entertainment segment posted an unfavourable
variance in adjusted operating income ($3.9
million).
- The change in the fair value of Quebecor Media stock options
resulted in a $1.2 million favourable
variance in the stock‑based compensation charge in the third
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 $1.7 million favourable
variance in the Corporation's stock-based compensation charge in
the third quarter of 2015.
Net income attributable to shareholders: $85.1 million ($0.69 per basic share) in the third quarter
of 2015, compared with $45.1 million ($0.37 per basic share) in the same period of
2014, a favourable variance of $40.0 million ($0.32 per basic share).
- The favourable variance was due primarily to:
- $137.2 million favourable
variance in the gain on litigation, restructuring of operations and
other special items;
- $79.0 million favourable variance
in the gain on valuation and translation of financial instruments,
including $79.4 million without any
tax consequences;
- $29.6 million increase in
adjusted operating income;
- $7.5 million favourable variance
in non-controlling interest;
- $4.4 million decrease in
financial expenses.
Partially offset by:
- $146.0 million increase in
non-cash charge for impairment of goodwill and other assets,
including $54.9 million without any
tax consequences;
- $49.1 million unfavourable
variance in losses and gains on discontinued operations;
- $3.6 million increase in the
depreciation and amortization charge.
In the third quarter of 2015, the Corporation completed its
annual review of its three-year strategic plan. Declining newspaper
and commercial printing volumes at the Mirabel printing plant and continuing pressure
on advertising revenues in the newspapers and television businesses
led the Corporation to perform additional impairment tests on its
Newspapers and Broadcasting cash‑generating units ("CGUs"). The
Corporation concluded that the recoverable amount of its Newspapers
and Broadcasting CGUs was less than their carrying amount.
Accordingly, a $55.0 million
non-cash goodwill impairment charge (without any tax consequences)
and an $81.9 million non-cash
impairment charge on other assets, relating mainly to the assets of
the Mirabel printing plant, were
recorded in the Newspapers CGU. A $60.1 million impairment charge on
TVA Network's broadcasting licences (including $30.1 million without any tax consequences)
was recognized for the Broadcasting CGU.
Adjusted income from continuing operations: $74.0 million ($0.60 per basic share) in the third quarter
of 2015, compared with $58.1 million ($0.47 per basic share) in the same period of
2014, an increase of $15.9 million ($0.13 per basic share).
2015/2014 year-to-date comparison
Revenues: $2.86 billion, a
$204.7 million (7.7%)
increase.
- Revenues increased in Telecommunications ($125.8 million or 6.0% of segment revenues),
Media ($91.5 million or 15.9%) and Sports
and Entertainment ($7.3 million
or 19.4%).
Adjusted operating income: $1.08
billion, a $23.2 million
(2.2%) increase.
- Adjusted operating income increased in Telecommunications
($29.0 million or 2.9% of
segment adjusted operating income) and in Media ($1.9 million or 4.1%).
- The Sports and Entertainment segment posted an unfavourable
variance in adjusted operating income ($5.3 million).
- The change in the fair value of Quebecor Media stock options
resulted in a $2.4 million
favourable variance in the stock‑based compensation charge in the
first nine months 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 $6.7 million unfavourable variance in the
Corporation's stock-based compensation charge in the first nine
months of 2015.
Net income attributable to shareholders: $186.6 million ($1.52 per basic share) in the first nine months
of 2015, compared with $29.4 million ($0.24 per basic share) in the same period of
2014, a favourable variance of $157.2 million ($1.28 per basic share).
- The favourable variance was due primarily to:
- $130.2 million favourable
variance in the gain on litigation, charge for restructuring of
operations and other special items;
- $96.1 million favourable variance
in gains and losses on valuation and translation of financial
instruments, including $95.6 million
without any tax consequences;
- $78.6 million favourable variance
in the loss related to discontinued operations;
- $23.2 million increase in
adjusted operating income;
- $16.7 million decrease in
financial expenses;
- $6.6 million favourable variance
in losses on debt refinancing.
Partially offset by:
- $146.0 million increase in
non-cash charge for impairment of goodwill and other assets,
including $54.9 million without any
tax consequences;
- $29.2 million increase in the
amortization charge;
- $19.5 million unfavourable
variance in non-controlling interest.
Adjusted income from continuing operations: $181.9 million in the first nine months of
2015 ($1.48 per basic share),
compared with $159.1 million
($1.29 per basic share) in the
same period of 2014, an increase of $22.8 million ($0.19 per basic share).
Financial transactions
- On September 15, 2015, Videotron
issued $375.0 million aggregate
principal amount of 5.75% Senior Notes maturing on January 15, 2026, for net proceeds of
$370.1 million, net of financing fees
of $4.9 million. Videotron used the
proceeds to repay a portion of the amounts due under the terms of
its credit facilities.
- On September 9, 2015, the
Corporation's interest in Quebecor Media increased from 75.36% to
81.07% following the repurchase by Quebecor Media of 7,268,324
Common Shares of its capital stock held by CDP Capital for an
aggregate purchase price of $500.0
million, payable in cash. All shares purchased under the bid
were cancelled. As a result CDP Capital's interest in Quebecor
Media was reduced from 24.64% to 18.93%.
- On July 16, 2015, Videotron
prepaid and withdrew the entirety of its outstanding 9.125% Senior
Notes issued on April 15, 2008 and
maturing on April 15, 2018, in the
aggregate principal amount of US$75.0
million, and unwound the hedges in an asset position. On the
same date, Videotron prepaid and withdrew the entirety of its
outstanding 7.125% Senior Notes issued on January 13, 2010 and maturing on January 15, 2020, in the aggregate principal
amount of $300.0 million.
Dividend
On November 4, 2015, the Board of
Directors of Quebecor declared a quarterly dividend of $0.035 per share on its Class A Multiple
Voting Shares ("Class A Shares") and Class B Subordinate
Voting Shares ("Class B Shares"), payable on
December 15, 2015 to shareholders of record at the close
of business on November 20, 2015.
This dividend is designated an eligible dividend, as provided under
subsection 89(14) of the Canadian Income Tax Act and
its provincial counterpart.
Normal course issuer bid
On July 29, 2015, the Board of
Directors of Quebecor authorized the renewal of its normal course
issuer bid for a maximum of 500,000 Class A Shares
representing approximately 1.3% of issued and outstanding
Class A Shares, and for a maximum of
2,000,000 Class B Shares representing approximately 2.4%
of issued and outstanding Class B Shares as of
July 29, 2015. The purchases will be made from
August 13, 2015 to August 12,
2016, at prevailing market prices, on the open market
through the facilities of the Toronto Stock Exchange, and will be
made in accordance with the requirements of that Exchange. All
shares purchased under the bid will be cancelled.
In the first nine months of 2015, the Corporation purchased and
cancelled 368,300 Class B Shares for a total cash
consideration of $11.1 million
(455,000 Class B Shares for a total cash consideration of
$11.7 million in the first nine
months of 2014). The $9.7 million excess of the purchase price
over the carrying value of the repurchased Class B Shares was
recorded in reduction of retained earnings ($10.0 million in the first nine months of
2014).
Detailed financial information
For a detailed analysis of Quebecor's third 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 third
quarter 2015 results on November 5,
2015, at 10:00 a.m. EST. There will be a question
period reserved for financial analysts. To access the conference
call, please dial 1 877 293‑8052, access code for
participants 90393#. A tape recording of the call will be available
from November 5, 2015 to
February 5, 2016 by dialling 1 877 293‑8133,
conference number 1187341, access code for participants 90393#. 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 investments (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 November 5, 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, QBR.B) is headquartered in Québec. It
holds an 81.07% interest in Quebecor Media, which employs close to
12,000 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: www.twitter.com/Quebecor
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, gain
(loss) on valuation and translation of financial instruments, gain
on litigation, charge for restructuring of operations and other
special items, impairment of goodwill and other assets, loss on
debt refinancing, income taxes, and (loss) gain on 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
September 30
|
Nine
months ended
September 30
|
|
2015
|
2014
|
2015
|
2014
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss):
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
351.1
|
$
|
339.9
|
$
|
1,036.8
|
$
|
1,007.8
|
|
Media
|
|
43.3
|
|
24.3
|
|
48.7
|
|
46.8
|
|
Sports and
Entertainment
|
|
(5.1)
|
|
(1.2)
|
|
(9.3)
|
|
(4.0)
|
|
Head
Office
|
|
2.1
|
|
(1.2)
|
|
3.7
|
|
6.1
|
|
|
391.4
|
|
361.8
|
|
1,079.9
|
|
1,056.7
|
Depreciation and
amortization
|
|
(168.6)
|
|
(165.0)
|
|
(517.1)
|
|
(487.9)
|
Financial
expenses
|
|
(80.7)
|
|
(85.1)
|
|
(249.3)
|
|
(266.0)
|
Gain (loss) on
valuation and translation of financial instruments
|
|
53.8
|
|
(25.2)
|
|
94.6
|
|
(1.5)
|
Gain on litigation,
restructuring of operations and other special items
|
|
135.0
|
|
(2.2)
|
|
124.9
|
|
(5.3)
|
Impairment of
goodwill and other assets
|
|
(197.0)
|
|
(51.0)
|
|
(227.0)
|
|
(81.0)
|
Loss on debt
refinancing
|
|
−
|
|
−
|
|
(12.1)
|
|
(18.7)
|
Income
taxes
|
|
(45.1)
|
|
(26.1)
|
|
(72.5)
|
|
(73.0)
|
(Loss) income from
discontinued operations
|
|
(2.7)
|
|
46.4
|
|
(18.8)
|
|
(97.4)
|
Net
income
|
$
|
86.1
|
$
|
53.6
|
$
|
202.6
|
$
|
25.9
|
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 gain (loss) on valuation and translation of
financial instruments, gain on litigation, charge for restructuring
of operations and other special items, impairment of goodwill and
other assets, loss on debt refinancing, net of income tax related
to adjustments and net income (loss) attributable to
non-controlling interests related to adjustments, and before (loss)
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
September 30
|
Nine months ended
September 30
|
|
2015
|
2014
|
2015
|
2014
|
|
|
|
|
|
|
|
|
|
Adjusted income from
continuing operations
|
$
|
74.0
|
$
|
58.1
|
$
|
181.9
|
$
|
159.1
|
Gain (loss) on
valuation and translation of financial instruments
|
|
53.8
|
|
(25.2)
|
|
94.6
|
|
(1.5)
|
Gain on litigation,
charge for restructuring of operations and other special items
|
|
135.0
|
|
(2.2)
|
|
124.9
|
|
(5.3)
|
Impairment of
goodwill and other assets
|
|
(197.0)
|
|
(51.0)
|
|
(227.0)
|
|
(81.0)
|
Loss on debt
refinancing
|
|
−
|
|
−
|
|
(12.1)
|
|
(18.7)
|
Income taxes related
to adjustments1
|
|
(5.1)
|
|
6.0
|
|
(1.2)
|
|
13.8
|
Net income
attributable to non‑controlling interest related to adjustments
|
|
26.3
|
|
24.1
|
|
38.6
|
|
35.0
|
Discontinued
operations
|
|
(1.9)
|
|
35.3
|
|
(13.1)
|
|
(72.0)
|
Net income
attributable to shareholders
|
$
|
85.1
|
$
|
45.1
|
$
|
186.6
|
$
|
29.4
|
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 subscription 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
subscription 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)
|
|
Three months
ended
|
|
|
Nine months
ended
|
(unaudited)
|
|
September
30
|
|
|
September
30
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
971.7
|
$
|
887.8
|
|
$
|
2,858.7
|
$
|
2,654.0
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
160.7
|
|
154.0
|
|
|
518.6
|
|
478.4
|
Purchase of goods and
services
|
|
419.6
|
|
372.0
|
|
|
1,260.2
|
|
1,118.9
|
Depreciation and
amortization
|
|
168.6
|
|
165.0
|
|
|
517.1
|
|
487.9
|
Financial
expenses
|
|
80.7
|
|
85.1
|
|
|
249.3
|
|
266.0
|
(Gain) loss on
valuation and translation of financial instruments
|
|
(53.8)
|
|
25.2
|
|
|
(94.6)
|
|
1.5
|
Gain on litigation,
restructuring of operations and other special items
|
|
(135.0)
|
|
2.2
|
|
|
(124.9)
|
|
5.3
|
Impairment of
goodwill and other assets
|
|
197.0
|
|
51.0
|
|
|
227.0
|
|
81.0
|
Loss on debt
refinancing
|
|
-
|
|
-
|
|
|
12.1
|
|
18.7
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
133.9
|
|
33.3
|
|
|
293.9
|
|
196.3
|
Income taxes
(recovery):
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
31.0
|
|
58.5
|
|
|
54.7
|
|
90.2
|
|
Deferred
|
|
14.1
|
|
(32.4)
|
|
|
17.8
|
|
(17.2)
|
|
|
45.1
|
|
26.1
|
|
|
72.5
|
|
73.0
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
88.8
|
|
7.2
|
|
|
221.4
|
|
123.3
|
(Loss) income from
discontinued operations
|
|
(2.7)
|
|
46.4
|
|
|
(18.8)
|
|
(97.4)
|
Net
income
|
$
|
86.1
|
$
|
53.6
|
|
$
|
202.6
|
$
|
25.9
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
87.0
|
$
|
9.8
|
|
$
|
199.7
|
$
|
101.4
|
|
Non-controlling
interests
|
|
1.8
|
|
(2.6)
|
|
|
21.7
|
|
21.9
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
85.1
|
$
|
45.1
|
|
$
|
186.6
|
$
|
29.4
|
|
Non-controlling
interests
|
|
1.0
|
|
8.5
|
|
|
16.0
|
|
(3.5)
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to shareholders
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations
|
$
|
0.71
|
$
|
0.08
|
|
$
|
1.63
|
$
|
0.82
|
|
|
From discontinued
operations
|
|
(0.02)
|
|
0.29
|
|
|
(0.11)
|
|
(0.58)
|
|
|
Net income
|
|
0.69
|
|
0.37
|
|
|
1.52
|
|
0.24
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations
|
|
0.27
|
|
0.08
|
|
|
0.83
|
|
0.82
|
|
|
From discontinued
operations
|
|
(0.01)
|
|
0.29
|
|
|
(0.10)
|
|
(0.58)
|
|
|
Net income
|
|
0.26
|
|
0.37
|
|
|
0.73
|
|
0.24
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (in millions)
|
|
122.7
|
|
122.9
|
|
|
122.8
|
|
123.0
|
Weighted average
number of diluted shares (in millions)
|
|
143.7
|
|
122.9
|
|
|
143.8
|
|
123.0
|
QUEBECOR INC. AND
ITS SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
Three months
ended
|
|
|
Nine months
ended
|
(unaudited)
|
|
September
30
|
|
|
September
30
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
88.8
|
$
|
7.2
|
|
$
|
221.4
|
$
|
123.3
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss) from continuing operations:
|
|
|
|
|
|
|
|
|
|
Items that may be
reclassified to income:
|
|
|
|
|
|
|
|
|
|
|
Cash flow
hedges:
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on
valuation of derivative financial instruments
|
|
70.2
|
|
1.1
|
|
|
45.3
|
|
(7.2)
|
|
|
Deferred income
taxes
|
|
(20.2)
|
|
(11.9)
|
|
|
(34.3)
|
|
(11.2)
|
|
|
|
|
|
|
|
|
|
|
Reclassification to
income:
|
|
|
|
|
|
|
|
|
|
|
Gain related to cash
flow hedges
|
|
-
|
|
-
|
|
|
(3.9)
|
|
(10.8)
|
|
Deferred income
taxes
|
|
-
|
|
-
|
|
|
(0.4)
|
|
0.4
|
|
|
50.0
|
|
(10.8)
|
|
|
6.7
|
|
(28.8)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) from continuing operations
|
|
138.8
|
|
(3.6)
|
|
|
228.1
|
|
94.5
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
discontinued operations
|
|
(2.7)
|
|
46.4
|
|
|
(18.8)
|
|
(97.4)
|
Other comprehensive
loss from discontinued operations
|
|
-
|
|
(1.5)
|
|
|
-
|
|
(1.7)
|
Comprehensive
income (loss)
|
$
|
136.1
|
$
|
41.3
|
|
$
|
209.3
|
$
|
(4.6)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) from continuing operations attributable
to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
127.5
|
$
|
1.7
|
|
$
|
207.7
|
$
|
79.7
|
|
Non-controlling
interests
|
|
11.3
|
|
(5.3)
|
|
|
20.4
|
|
14.8
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
125.6
|
$
|
35.9
|
|
$
|
194.6
|
$
|
6.4
|
|
Non-controlling
interests
|
|
10.5
|
|
5.4
|
|
|
14.7
|
|
(11.0)
|
QUEBECOR INC. AND
ITS SUBSIDIARIES
|
SEGMENTED
INFORMATION
|
|
(in millions of
Canadian dollars)
|
(unaudited)
|
Three months ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
Telecommu-
|
|
|
|
Enter-
|
|
and
Inter-
|
|
|
|
|
nications
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
754.2
|
$
|
226.5
|
$
|
16.2
|
$
|
(25.2)
|
$
|
971.7
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
83.7
|
|
65.0
|
|
3.7
|
|
8.3
|
|
160.7
|
Purchase of goods and
services
|
|
319.4
|
|
118.2
|
|
17.6
|
|
(35.6)
|
|
419.6
|
Adjusted operating
income1
|
|
351.1
|
|
43.3
|
|
(5.1)
|
|
2.1
|
|
391.4
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
168.6
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
80.7
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
(53.8)
|
Gain on litigation,
restructuring of operations and other
special items
|
|
|
|
|
|
|
|
|
|
(135.0)
|
Impairment of
goodwill and other assets
|
|
|
|
|
|
|
|
|
|
197.0
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
$
|
133.9
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
177.8
|
$
|
9.1
|
$
|
4.0
|
$
|
0.2
|
$
|
191.1
|
Additions to
intangible assets
|
|
22.7
|
|
2.4
|
|
34.3
|
|
1.2
|
|
60.6
|
|
|
Three months ended
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
Telecommu-
|
|
|
|
Enter-
|
|
and Inter-
|
|
|
|
|
nications
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
711.2
|
$
|
186.8
|
$
|
12.1
|
$
|
(22.3)
|
$
|
887.8
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
82.4
|
|
58.9
|
|
2.3
|
|
10.4
|
|
154.0
|
Purchase of goods and
services
|
|
288.9
|
|
103.6
|
|
11.0
|
|
(31.5)
|
|
372.0
|
Adjusted operating
income1
|
|
339.9
|
|
24.3
|
|
(1.2)
|
|
(1.2)
|
|
361.8
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
165.0
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
85.1
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
25.2
|
Restructuring of
operations and other special items
|
|
|
|
|
|
|
|
|
|
2.2
|
Impairment of
goodwill and other assets
|
|
|
|
|
|
|
|
|
|
51.0
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
$
|
33.3
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
163.2
|
$
|
8.3
|
$
|
1.1
|
$
|
-
|
$
|
172.6
|
Additions to
intangible assets
|
|
16.0
|
|
1.8
|
|
-
|
|
0.8
|
|
18.6
|
|
Nine months ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
Telecommu-
|
|
|
|
Enter-
|
|
and Inter-
|
|
|
|
|
nications
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
2,229.9
|
$
|
665.7
|
$
|
45.0
|
$
|
(81.9)
|
$
|
2,858.7
|
Employee
costs
|
|
267.2
|
|
215.1
|
|
10.4
|
|
25.9
|
|
518.6
|
Purchase of goods and
services
|
|
925.9
|
|
401.9
|
|
43.9
|
|
(111.5)
|
|
1,260.2
|
Adjusted operating
income1
|
|
1,036.8
|
|
48.7
|
|
(9.3)
|
|
3.7
|
|
1,079.9
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
517.1
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
249.3
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
(94.6)
|
Gain on litigation,
restructuring of operations and other
special items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(124.9)
|
Impairment of
goodwill and other assets
|
|
|
|
|
|
|
|
|
|
227.0
|
Loss on debt
refinancing
|
|
|
|
|
|
|
|
|
|
12.1
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
$
|
293.9
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
481.0
|
$
|
24.8
|
$
|
8.7
|
$
|
0.3
|
$
|
514.8
|
Additions to
intangible assets
|
|
281.2
|
|
6.5
|
|
34.6
|
|
2.8
|
|
325.1
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
Telecommu-
|
|
|
|
Enter-
|
|
and Inter-
|
|
|
|
|
nications
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
2,104.1
|
$
|
574.2
|
$
|
37.7
|
$
|
(62.0)
|
$
|
2,654.0
|
Employee
costs
|
|
255.9
|
|
190.0
|
|
7.3
|
|
25.2
|
|
478.4
|
Purchase of goods and
services
|
|
840.4
|
|
337.4
|
|
34.4
|
|
(93.3)
|
|
1,118.9
|
Adjusted operating
income1
|
|
1,007.8
|
|
46.8
|
|
(4.0)
|
|
6.1
|
|
1,056.7
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
487.9
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
266.0
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
1.5
|
Restructuring of
operations and other special items
|
|
|
|
|
|
|
|
|
|
5.3
|
Impairment of
goodwill and other assets
|
|
|
|
|
|
|
|
|
|
81.0
|
Loss on debt
refinancing
|
|
|
|
|
|
|
|
|
|
18.7
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
$
|
196.3
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
462.2
|
$
|
23.4
|
$
|
3.9
|
$
|
0.3
|
$
|
489.8
|
Additions to
intangible assets
|
|
271.1
|
|
6.8
|
|
-
|
|
1.5
|
|
279.4
|
1
|
The Chief Executive
Officer uses adjusted and amortization, financial expenses, (gain)
loss on valuation and translation of financial instruments, gain on
litigation, restructuring of operations and other special items,
impairment of goodwill and other assets, loss on debt refinancing,
income taxes and (loss) income from discontinued
operations.
|
QUEBECOR INC. AND
ITS SUBSIDIARIES
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
attributable to shareholders
|
|
Equity
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
attributable
|
|
|
|
|
|
|
|
|
|
|
other
com-
|
|
to
non-
|
|
|
|
|
Capital
|
|
Contributed
|
|
Retained
|
|
prehensive
|
|
controlling
|
|
Total
|
|
|
stock
|
|
surplus
|
|
earnings
|
|
loss
|
|
interests
|
|
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of
December 31, 2013
|
$
|
328.9
|
$
|
2.3
|
$
|
291.4
|
$
|
(23.1)
|
$
|
595.9
|
$
|
1,195.4
|
Net income
(loss)
|
|
-
|
|
-
|
|
29.4
|
|
-
|
|
(3.5)
|
|
25.9
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
-
|
|
(23.0)
|
|
(7.5)
|
|
(30.5)
|
Repurchase of Class B
Shares
|
|
(1.7)
|
|
-
|
|
(10.0)
|
|
-
|
|
-
|
|
(11.7)
|
Non-controlling
interests acquisition
|
|
-
|
|
-
|
|
(0.1)
|
|
-
|
|
-
|
|
(0.1)
|
Dividends
|
|
-
|
|
-
|
|
(9.2)
|
|
-
|
|
(18.7)
|
|
(27.9)
|
Balance as of
September 30, 2014
|
|
327.2
|
|
2.3
|
|
301.5
|
|
(46.1)
|
|
566.2
|
|
1,151.1
|
Net (loss)
income
|
|
-
|
|
-
|
|
(59.5)
|
|
-
|
|
9.2
|
|
(50.3)
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
-
|
|
(18.3)
|
|
(10.0)
|
|
(28.3)
|
Dividends
|
|
-
|
|
-
|
|
(3.1)
|
|
-
|
|
(6.1)
|
|
(9.2)
|
Balance as of
December 31, 2014
|
|
327.2
|
|
2.3
|
|
238.9
|
|
(64.4)
|
|
559.3
|
|
1,063.3
|
Net income
|
|
-
|
|
-
|
|
186.6
|
|
-
|
|
16.0
|
|
202.6
|
Other comprehensive
income (loss)
|
|
-
|
|
-
|
|
-
|
|
8.0
|
|
(1.3)
|
|
6.7
|
Dividends
|
|
-
|
|
-
|
|
(11.7)
|
|
-
|
|
(18.5)
|
|
(30.2)
|
Repurchase of Class B
Shares
|
|
(1.4)
|
|
-
|
|
(9.7)
|
|
-
|
|
-
|
|
(11.1)
|
Issuance of shares of
a subsidiary to non-controlling interests
|
|
-
|
|
-
|
|
-
|
|
-
|
|
12.1
|
|
12.1
|
Non-controlling
interests acquisition
|
-
|
|
-
|
|
(280.3)
|
|
(7.3)
|
|
(212.4)
|
|
(500.0)
|
Business
acquisition
|
|
-
|
|
-
|
|
-
|
|
-
|
|
0.5
|
|
0.5
|
Balance as of
September 30, 2015
|
$
|
325.8
|
$
|
2.3
|
$
|
123.8
|
$
|
(63.7)
|
$
|
355.7
|
$
|
743.9
|
QUEBECOR INC. AND
ITS SUBSIDIARIES
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
Three months
ended
|
|
Nine months
ended
|
(unaudited)
|
|
September
30
|
|
September
30
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Cash flows related
to operating activities
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
88.8
|
$
|
7.2
|
|
$
|
221.4
|
$
|
123.3
|
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
146.8
|
|
133.6
|
|
|
441.1
|
|
394.3
|
|
|
Amortization of
intangible assets
|
|
21.8
|
|
31.4
|
|
|
76.0
|
|
93.6
|
|
|
(Gain) loss on
valuation and translation of financial instruments
|
|
(53.8)
|
|
25.2
|
|
|
(94.6)
|
|
1.5
|
|
|
Impairment of
goodwill and other assets
|
|
197.0
|
|
51.0
|
|
|
227.0
|
|
81.0
|
|
|
Loss on debt
refinancing
|
|
-
|
|
-
|
|
|
12.1
|
|
18.7
|
|
|
Amortization of
financing costs and long-term debt discount
|
|
1.6
|
|
1.9
|
|
|
5.4
|
|
6.8
|
|
|
Deferred income
taxes
|
|
14.1
|
|
(32.4)
|
|
|
17.8
|
|
(17.2)
|
|
|
Other
|
|
0.4
|
|
0.3
|
|
|
2.8
|
|
1.5
|
|
|
416.7
|
|
218.2
|
|
|
909.0
|
|
703.5
|
|
Net change in
non-cash balances related to operating activities
|
|
(94.2)
|
|
142.4
|
|
|
(260.2)
|
|
29.5
|
Cash flows provided
by continuing operating activities
|
|
322.5
|
|
360.6
|
|
|
648.8
|
|
733.0
|
Cash flows related
to investing activities
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests acquisition
|
|
(500.0)
|
|
-
|
|
|
(500.0)
|
|
-
|
|
Business
acquisitions
|
|
(1.2)
|
|
(0.1)
|
|
|
(92.0)
|
|
(0.7)
|
|
Business
disposals
|
|
12.1
|
|
111.6
|
|
|
316.3
|
|
185.3
|
|
Additions to
property, plant and equipment
|
|
(191.1)
|
|
(172.6)
|
|
|
(514.8)
|
|
(489.8)
|
|
Additions to
intangible assets
|
|
(60.6)
|
|
(18.6)
|
|
|
(325.1)
|
|
(279.4)
|
|
Proceeds from
disposals of assets
|
|
0.5
|
|
0.7
|
|
|
2.4
|
|
2.6
|
|
Other
|
|
(13.3)
|
|
0.3
|
|
|
(13.0)
|
|
0.5
|
Cash flows used in
continuing investing activities
|
|
(753.6)
|
|
(78.7)
|
|
|
(1,126.2)
|
|
(581.5)
|
Cash flows related
to financing activities
|
|
|
|
|
|
|
|
|
|
|
Net change in bank
indebtedness
|
|
45.5
|
|
0.2
|
|
|
41.6
|
|
0.1
|
|
Net change under
revolving facilities
|
|
357.0
|
|
(15.2)
|
|
|
351.4
|
|
(16.2)
|
|
Issuance of long-term
debt, net of financing fees
|
|
370.1
|
|
-
|
|
|
370.1
|
|
654.5
|
|
Repayments of
long-term debt
|
|
(414.2)
|
|
(6.4)
|
|
|
(645.8)
|
|
(734.1)
|
|
Settlement of hedging
contracts
|
|
21.2
|
|
-
|
|
|
34.3
|
|
(64.6)
|
|
Issuance of shares of
a subsidiary to non-controlling interests
|
|
-
|
|
-
|
|
|
12.1
|
|
-
|
|
Repurchase of Class B
Shares
|
|
(4.8)
|
|
-
|
|
|
(11.1)
|
|
(11.7)
|
|
Dividends
|
|
(4.3)
|
|
(3.0)
|
|
|
(11.7)
|
|
(9.2)
|
|
Dividends paid to
non-controlling interests
|
|
(6.2)
|
|
(6.2)
|
|
|
(18.5)
|
|
(18.7)
|
Cash flows provided
by (used in) continuing financing activities
|
|
364.3
|
|
(30.6)
|
|
|
122.4
|
|
(199.9)
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents from continuing operations
|
|
(66.8)
|
|
251.3
|
|
|
(355.0)
|
|
(48.4)
|
|
|
|
|
|
|
|
|
|
|
Cash flows (used in)
provided by discontinued operations
|
|
(1.4)
|
|
8.4
|
|
|
(21.4)
|
|
25.2
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
87.1
|
|
193.7
|
|
|
395.3
|
|
476.6
|
Cash and cash
equivalents at end of period
|
$
|
18.9
|
$
|
453.4
|
|
$
|
18.9
|
$
|
453.4
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents consist of
|
|
|
|
|
|
|
|
|
|
|
Cash
|
$
|
16.0
|
$
|
224.0
|
|
$
|
16.0
|
$
|
224.0
|
|
Cash
equivalents
|
|
2.9
|
|
229.4
|
|
|
2.9
|
|
229.4
|
|
$
|
18.9
|
$
|
453.4
|
|
$
|
18.9
|
$
|
453.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and taxes
reflected as operating activities
|
|
|
|
|
|
|
|
|
|
|
Cash interest
payments
|
$
|
34.5
|
$
|
30.0
|
|
$
|
194.1
|
$
|
203.7
|
|
Cash income tax
payments (net of refunds)
|
|
34.4
|
|
20.6
|
|
|
134.0
|
|
99.0
|
QUEBECOR INC. AND
ITS SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
|
(in millions of
Canadian dollars)
|
|
|
(unaudited)
|
September
30
|
December
31
|
|
2015
|
2014
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
18.9
|
$
|
395.3
|
|
Accounts
receivable
|
|
608.4
|
|
449.4
|
|
Income
taxes
|
|
13.2
|
|
6.7
|
|
Inventories
|
|
224.0
|
|
212.2
|
|
Prepaid
expenses
|
|
53.5
|
|
38.0
|
|
Assets held for
sale
|
|
-
|
|
398.1
|
|
|
918.0
|
|
1,499.7
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Property, plant and
equipment
|
|
3,378.6
|
|
3,430.4
|
|
Intangible
assets
|
|
1,154.1
|
|
945.8
|
|
Goodwill
|
|
2,682.8
|
|
2,714.6
|
|
Derivative financial
instruments
|
|
943.5
|
|
400.9
|
|
Deferred income
taxes
|
|
25.3
|
|
7.8
|
|
Other
assets
|
|
99.9
|
|
79.3
|
|
|
8,284.2
|
|
7,578.8
|
Total
assets
|
$
|
9,202.2
|
$
|
9,078.5
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Bank
indebtedness
|
$
|
46.8
|
$
|
5.2
|
|
Accounts payable and
accrued charges
|
|
593.3
|
|
650.2
|
|
Provisions
|
|
59.5
|
|
56.7
|
|
Deferred
revenue
|
|
313.4
|
|
283.0
|
|
Income
taxes
|
|
11.4
|
|
85.5
|
|
Derivative financial
instruments
|
|
-
|
|
0.9
|
|
Current portion of
long-term debt
|
|
19.5
|
|
230.1
|
|
Liabilities held for
sale
|
|
-
|
|
97.9
|
|
|
1,043.9
|
|
1,409.5
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
Long-term
debt
|
|
5,831.7
|
|
5,048.2
|
|
Derivative financial
instruments
|
|
156.1
|
|
101.9
|
|
Convertible
debentures
|
|
500.0
|
|
500.0
|
|
Other
liabilities
|
|
329.2
|
|
426.8
|
|
Deferred income
taxes
|
|
597.4
|
|
528.8
|
|
|
7,414.4
|
|
6,605.7
|
Equity
|
|
|
|
|
|
Capital
stock
|
|
325.8
|
|
327.2
|
|
Contributed
surplus
|
|
2.3
|
|
2.3
|
|
Retained
earnings
|
|
123.8
|
|
238.9
|
|
Accumulated other
comprehensive loss
|
|
(63.7)
|
|
(64.4)
|
|
Equity attributable
to shareholders
|
|
388.2
|
|
504.0
|
|
Non-controlling
interests
|
|
355.7
|
|
559.3
|
|
|
743.9
|
|
1,063.3
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
9,202.2
|
$
|
9,078.5
|
SOURCE Quebecor