MONTRÉAL, Nov. 7,
2019 /PRNewswire/ - Quebecor Inc. ("Quebecor" or the
"Corporation") today reported its consolidated financial results
for the third quarter of 2019. Quebecor consolidates the
financial results of Quebecor Media Inc. ("Quebecor Media"), a
wholly owned subsidiary since June 22, 2018.
As described under "Changes in Accounting Policies" below, on
January 1, 2019 the Corporation
adopted on a fully retrospective basis the new rules in
IFRS 16 – Leases. Accordingly, comparative figures have
been restated to reflect the impact of the new rules.
Third quarter 2019 highlights
- Revenues: $1.07 billion, up
$20.2 million (1.9%) from the
third quarter of 2018.
- Adjusted EBITDA1: $509.3 million, a $35.3 million (7.4%) increase. Without
restatement of comparative figures following adoption
of IFRS 16, adjusted EBITDA increased $46.2 million (10.0%).
- Net income attributable to shareholders: $178.5 million ($0.70 per basic share) in the third quarter
of 2019, compared with $187.1 million ($0.80 per basic share) in the same period of
2018, a decrease of $8.6 million
($0.10 per basic
share). Net income attributable to shareholders without
restatement of comparative figures following adoption
of IFRS 16 was $178.5 million in the third quarter of 2019,
compared with $186.7 million in
the same period of 2018, an $8.2 million
decrease.
- Adjusted income from continuing operating
activities2 $173.8 million ($0.68 per basic share) in the third quarter
of 2019, compared with $141.5 million ($0.61 per basic share) in the same period of
2018, an increase of $32.3 million ($0.07 per basic share) or 22.8%.
- The Telecommunications segment grew its revenues by
$21.9 million (2.6%) and its
adjusted EBITDA by $34.5 million
(8.0%) in the third quarter of 2019. Without restatement of
comparative figures following adoption of IFRS 16, the
Telecommunications segment's adjusted EBITDA increased $44.2 million (10.4%).
- Videotron Ltd. ("Videotron") significantly increased its
revenues from mobile telephony ($17.4 million or 12.6%), Internet
access ($7.3 million or 2.7%) and customer
equipment sales ($6.5 million or
10.3%) in the third quarter of 2019.
- Videotron's total average billing per unit3 ("ABPU")
was $50.49 in the third quarter of
2019, compared with $49.70 in the same period of 2018,
a $0.79 (1.6%) increase. Mobile ABPU was $53.28 in the third quarter of 2019, compared
with $54.28 in the same period of 2018, a $1.00
(‑1.8%) decrease due in part to the popularity of bring your own
device ("BYOD") plans.
- There was a net increase of 53,300 revenue-generating
units4 (RGUs) (0.9%) in the third quarter of 2019,
including 56,800 connections to the mobile telephony service,
an increase 36.9% greater than in the same quarter of 2018,
17,400 subscriptions to cable Internet access service, and
12,500 subscriptions to the Club illico over-the-top video
service ("Club illico").
- On August 27, 2019, Videotron
launched Helix, the new technology platform that will revolutionize
entertainment and home management with voice remote,
ultra-intelligent Wi-Fi, and, coming soon, support for home
automation, all tailored to customer needs and preferences.
- On October 8, 2019, Videotron
issued $800.0 million aggregate
principal amount of Senior Notes bearing interest at 4.5% and
maturing on January 15, 2030. Videotron used the proceeds
mainly to pay down a portion of the amount due under its secured
revolving credit facility.
- On July 15, 2019, Quebecor Media
prepaid the balance of its term loan "B" and settled the
related hedging contracts for a total cash consideration
of $340.9 million.
__________________________________
|
|
1
|
See "Adjusted EBITDA"
under "Definitions."
|
2
|
See "Adjusted income
from continuing operating activities" under
"Definitions."
|
3
|
See "Key performance
indicators" under "Definitions."
|
4
|
See "Key performance
indicators" under "Definitions."
|
"Quebecor generated solid 7.4% growth in adjusted EBITDA in the
third quarter of 2019 compared with the same quarter of 2018.
Combined with the decrease in the interest charge on its debt and
its convertible debentures, this growth yielded a
22.8% increase in adjusted income from continuing operating
activities," commented Pierre Karl Péladeau, President and Chief
Executive Officer of Quebecor. "Videotron remains our main growth
driver and we are particularly proud of its excellent performance
this quarter since we successfully launched our new Helix
technological platform at the end of August
2019. Based on our partner Comcast Corporation's
Xfinity X1 platform, Helix already had more than 30,000
subscribers barely five weeks after launch. It is a concrete
example of Quebecor's vision, commitment to investing in
forward-looking projects and ability to skillfully execute on its
business strategies, while maintaining sound management of its
balance sheet."
"Videotron's robust business model and its ability to generate
organic growth held strong, as reflected by the
168,000 increase in connections to the mobile telephony
service during the 12-month period ended
September 30, 2019, the largest increase in the number of
connections since our mobile network launched in 2010,"
commented Jean-François Pruneau, President and Chief Executive
Officer of Videotron. "During the quarter, we once again
demonstrated our ability to stay at the leading edge of evolving
consumer needs and maintain our position as a leader in innovation
and customer experience.
"With a 40,600-customer increase during the 12-month period
ended September 30, 2019, Club illico
continued to perform strongly and to grow its market share.
Investing in original content lets us stand out and reach the
widest possible audience in an aggressively competitive market,
which is why we have decided to triple the number of original
Québec productions for the 2019‑2020 season.
"Videotron was rated the coolest telecom again this year by
young Quebecers aged 13 to 37 in Léger's youth survey and I am very
proud of this success, as we are investing heavily to meet their
needs.
"We also continue fighting Bell
Canada's monopolistic practices. We have filed an
application asking the Competition Bureau of Canada to investigate
certain actions by Bell Canada aimed
at substantially restricting competition in the
Abitibi‑Témiscamingue market, unduly penalizing the region's
residents and businesses," Jean-François Pruneau concluded.
"TVA Group Inc.'s ("TVA Group") consolidated adjusted EBITDA
increased by $3.1 million in the
third quarter, due in part to our acquisitions in recent months and
the decrease in operating expenses related to, among other things,
the savings generated by the budget cuts announced in the previous
quarter," said France Lauzière, President and Chief Executive
Officer of TVA Group. "TVA Group's total television
market share increased 0.2 points to 38.3%.1 TVA Sports
continued to grow its audience with a 0.4‑point jump in market
share during the quarter, clear evidence that viewers recognize the
quality of its programming. The strong performance of our specialty
channels is noteworthy and underscores the point that our channels
have been inequitably priced for years and their subscription fees
do not reflect their market share and their fair value.
Bell Canada must acknowledge the
issues facing our entire industry and recognize the fair value of
specialty channels. We continue making representations on this
issue to regulatory and government authorities. We are pleased to
report that we have renewed some distribution agreements with cable
operators that recognize the fair market value of our specialty
channels."
"Videotron again demonstrated that it is regarded as a
first-class issuer and we are very pleased with the response to the
issuance on the Canadian market of high-yield notes in the
aggregate principal amount of $800.0 million bearing interest at 4.5%,
making it both the largest issue and lowest coupon rate for 10-year
notes ever on this market," said Hugues
Simard, Chief Financial Officer of Quebecor and Quebecor
Media.
"On the matter of aggregated wholesale access by resellers to
the Internet networks of the large cable and telephone companies,
we note the interim stay of the Canadian Radio‑television and
Telecommunications Commission's ("CRTC") order regarding access
rates, which was granted by the Federal Court of Appeal on
September 27, 2019," Pierre Karl Péladeau stated. "We
strongly believe that both the process used and the conclusions
reached by the CRTC were and are deeply flawed.
"Our initiatives and actions are always aimed at offering our
customers the best products and services, and a wide range of
choices. We will continue executing our business strategies and
investing in innovative projects to ensure continued success and
sustainable growth for the benefit of our shareholders and all our
stakeholders," Pierre Karl Péladeau concluded.
____________________________
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1
|
Numeris – Québec
Franco, April 1 to June 30, 2019, Mo-Su, 2a-2a, t2+
|
Table 1 Quebecor third quarter
financial highlights, 2015 to 2019 (in millions of
Canadian dollars, except per share data)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
1,073.4
|
|
$
1,053.2
|
|
$
1,036.1
|
|
$
1,014.7
|
|
$
979.5
|
Adjusted
EBITDA
|
509.3
|
|
474.0
|
|
440.1
|
|
424.4
|
|
414.5
|
Income from
continuing operating activities attributable to shareholders
|
178.5
|
|
186.2
|
|
173.2
|
|
5.6
|
|
94.4
|
Net income
attributable to shareholders
|
178.5
|
|
187.1
|
|
178.6
|
|
6.8
|
|
92.4
|
Adjusted income from
continuing operating
activities
|
173.8
|
|
141.5
|
|
103.3
|
|
97.1
|
|
81.4
|
Per basic
share:
|
|
|
|
|
|
|
|
|
|
Income from continuing
operating activities attributable
to shareholders
|
0.70
|
|
0.80
|
|
0.72
|
|
0.02
|
|
0.38
|
Net income
attributable to shareholders
|
0.70
|
|
0.80
|
|
0.74
|
|
0.03
|
|
0.38
|
Adjusted income from
continuing operating
activities
|
0.68
|
|
0.61
|
|
0.43
|
|
0.40
|
|
0.33
|
Discontinued operations
On January 24, 2019, Videotron
sold its 4Degrees Colocation Inc. data centre operations for an
amount of $261.6 million, which was fully paid in cash at
the date of transaction. An amount of $0.9 million relating to a working capital
adjustment was also paid by Videotron in the second quarter of
2019. The determination of the final proceeds from the sale is
however subject to certain adjustments based on the realization of
future conditions over a period of up to 10 years.
Accordingly, a gain on disposal of $97.2 million, net of
income taxes of $18.5 million,
was accounted for in the first quarter of 2019, while an amount
of $53.1 million from the proceeds received at the date
of transaction was deferred in connection with the estimated
present value of the future conditional adjustments. The results of
operations and cash flows of those businesses were reclassified as
discontinued operations in the consolidated statements of income
and cash flows. In this press release, only continuing operating
activities of Quebecor Media are included in the analysis of its
segment operating results.
Changes in Accounting Policies
On January 1, 2019, the
Corporation adopted on a fully retrospective basis the new rules
under IFRS 16 which set out new principles for the
recognition, measurement, presentation and disclosure of leases for
both parties to a contract. The standard provides lessees with a
single accounting model for all leases, with certain exemptions. In
particular, lessees are required to report most leases on their
balance sheets by recognizing right-of-use assets and related
financial liabilities. Assets and liabilities arising from a lease
are initially measured on a present value basis. The adoption of
IFRS 16 had significant impacts on the consolidated financial
statements since all of the Corporation's segments are engaged in
various long-term leases relating to premises and equipment.
Under IFRS 16, most lease charges are now expensed as a
depreciation of the right-of-use asset, along with interest on the
related lease liability. Since operating lease charges were
recognized as operating expenses as they were incurred under the
previous standard, the adoption of IFRS 16 has changed
the timing of the recognition of these lease charges over the term
of each lease. It has also affected the classification of expenses
in the consolidated statements of income. Principal payments on the
lease liability are now presented as financing activities in the
consolidated statements of cash flows, whereas under the previous
standard these payments were presented as operating activities. A
description of the new rules and details of the retroactive
adjustments to comparative data are provided in Note 2 to
Quebecor's condensed consolidated financial statements for the
third quarter of 2019 and under "Changes in Accounting Policies" in
Quebecor's Management Discussion and Analysis for the same
period.
Table 2 presents segmented adjusted EBITDA for the last eight
quarters, restated to reflect the retroactive application
of IFRS 16.
Table 2
Quebecor's segmented adjusted EBITDA (negative adjusted EBITDA)
for the past eight quarters
in millions of Canadian dollars)
|
|
|
Q3‑2019
|
|
Q2‑2019
|
|
Q1‑2019
|
|
Q4‑2018
|
|
Q3‑2018
|
|
Q2‑2018
|
|
Q1‑2018
|
|
Q4‑2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
467.7
|
$
|
450.0
|
$
|
423.0
|
$
|
435.4
|
$
|
433.2
|
$
|
429.8
|
$
|
417.2
|
$
|
403.7
|
Media
|
|
32.6
|
|
5.7
|
|
1.2
|
|
28.6
|
|
30.9
|
|
0.5
|
|
0.1
|
|
23.6
|
Sports and
Entertainment
|
|
6.9
|
|
(1.5)
|
|
(0.7)
|
|
3.3
|
|
8.5
|
|
(0.6)
|
|
(0.7)
|
|
3.7
|
Head
Office
|
|
2.1
|
|
0.8
|
|
(2.8)
|
|
(6.8)
|
|
1.4
|
|
(3.8)
|
|
(0.7)
|
|
(2.3)
|
Total
|
$
|
509.3
|
$
|
455.0
|
$
|
420.7
|
$
|
460.5
|
$
|
474.0
|
$
|
425.9
|
$
|
415.9
|
$
|
428.7
|
Table 3 presents lease liabilities by segment at December 31, 2018 and 2017, calculated following
retrospective adoption of IFRS 16.
Table 3
Lease liabilities by segment (in millions of
Canadian dollars)
|
|
Sept. 30,
2019
|
Dec. 31,
2018
|
Dec.
31, 2017
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
112.3
|
$
|
122.6
|
$
|
143.4
|
Media
|
|
14.7
|
|
13.7
|
|
16.6
|
Sports and
Entertainment
|
|
41.4
|
|
39.7
|
|
41.6
|
Head Office and
intersegment
|
|
(31.6)
|
|
(31.6)
|
|
(33.7)
|
Total
|
$
|
136.8
|
$
|
144.4
|
$
|
167.9
|
To explain the effect of choices made in applying a change in
accounting policies, Table 5 also provides a reconciliation of
adjusted EBITDA to net income, without restatement of comparative
figures following adoption of IFRS 16, as permitted under
International Financial Reporting Standards ("IFRS").
2019/2018 third quarter comparison
Revenues: $1.07 billion, a $20.2 million (1.9%) increase.
- Revenues increased in Telecommunications ($21.9 million or 2.6% of segment revenues)
and in Sports and Entertainment ($1.3 million or 2.4%).
- Revenues decreased in Media ($3.7 million or -2.2% of segment
revenues).
Adjusted EBITDA: $509.3 million, a $35.3 million (7.4%) increase. Without
restatement of comparative figures following adoption
of IFRS 16, adjusted EBITDA increased $46.2 million (10.0%).
- Adjusted EBITDA increased $34.5 million (8.0%) in the
Telecommunications segment. Without restatement of comparative
figures following adoption of IFRS 16, the segment's adjusted
EBITDA increased by $44.2 million (10.4%).
- Adjusted EBITDA increased in Media ($1.7 million or 5.5%).
- Adjusted EBITDA decreased in Sports and Entertainment
($1.6 million or ‑18.8%).
- The change in the fair value of Quebecor Media stock options
resulted in a $0.1 million
unfavourable variance in the stock‑based compensation charge in the
third quarter of 2019 compared with the same period of 2018.
The change in the fair value of Quebecor stock options and in the
value of Quebecor stock-price-based share units resulted in a
$1.2 million favourable variance
in the Corporation's stock-based compensation charge in the third
quarter of 2019.
Net income attributable to shareholders: $178.5 million ($0.70 per basic share) in the third quarter
of 2019, compared with $187.1 million ($0.80 per basic share) in the same period of
2018, a decrease of $8.6 million
($0.10 per basic share).
- The main unfavourable variances were:
-
- $48.5 million unfavourable
variance in gains and losses on valuation and translation of
financial instruments, including $51.0 million without any tax
consequences;
- $14.4 million increase in
the income tax expense.
- The main favourable variances were:
-
- $35.3 million increase in
adjusted EBITDA;
- $12.4 million favourable
variance in the charge for restructuring of operations, litigation
and other items;
- $5.6 million decrease in
financial expenses.
Net income attributable to shareholders without
restatement of comparative figures following adoption
of IFRS 16 was $178.5 million in the third
quarter of 2019, compared with $186.7 million in the same period of 2018,
an $8.2 million decrease.
Adjusted income from continuing operating activities:
$173.8 million ($0.68 per basic share) in the third quarter
of 2019, compared with $141.5 million ($0.61 per basic share) in the same period of
2018, an increase of $32.3 million ($0.07 per basic share) or 22.8%.
2019/2018 year-to-date comparison
Revenues: $3.16 billion, a $63.7 million (2.1%) increase.
- Revenues increased in Telecommunications ($55.9 million or 2.2% of segment revenues)
and in Sports and Entertainment ($8.9 million or 6.9%).
- Revenues decreased in Media ($0.6 million or -0.1%).
Adjusted EBITDA: $1.39 billion, a $69.2 million (5.3%) increase. Without
restatement of comparative figures following adoption
of IFRS 16, adjusted EBITDA increased $102.9 million (8.0%).
- Adjusted EBITDA increased in the Telecommunications segment by
$60.5 million (4.7%). Without
restatement of comparative figures following adoption of
IFRS 16, the segment's adjusted EBITDA increased
by $89.6 million (7.2%).
- Adjusted EBITDA increased in Media ($8.0 million or 25.4%).
- Adjusted EBITDA decreased in Sports and Entertainment
($2.5 million or ‑34.7%).
- There was a favourable variance at Head Office ($3.2 million) due to a decrease in the
stock-based compensation charge.
- The change in the fair value of Quebecor Media stock options
resulted in a $5.3 million
favourable variance in the stock‑based compensation charge in the
first nine months of 2019 compared with the same period
of 2018. The change in the fair value of Quebecor stock
options and the value of Quebecor stock-price-based share units
resulted in a $0.2 million
favourable variance in the Corporation's stock-based compensation
charge in the first nine months of 2019.
Net income attributable to shareholders: $507.7 million ($1.98 per basic share) in the first nine months
of 2019, compared with $286.2 million ($1.22 per basic share) in the same period of
2018, an increase of $221.5 million ($0.76 per basic share).
- The main favourable variances were:
-
- $94.8 million favourable
variance in income from discontinued operations;
- $69.2 million increase in
adjusted EBITDA;
- $58.8 million favourable
variance in gains and losses on valuation and translation of
financial instruments, including $56.3 million without any tax
consequences;
- $34.7 million favourable
variance in non-controlling interest.
- The main unfavourable variances were:
-
- $29.2 million increase in
the income tax expense;
- $4.9 million unfavourable
variance in the charge for restructuring of operations, litigation
and other items.
Net income attributable to shareholders without
restatement of comparative figures following adoption
of IFRS 16 was $507.7 million in the first nine
months of 2019, compared with $284.7 million in the same period
of 2018, a $223.0 million
increase.
Adjusted income from continuing operating activities:
$421.4 million ($1.65 per basic share) in the first nine months
of 2019, compared with $336.9 million ($1.44 per basic share) in the same period of
2018, an increase of $84.5 million ($0.21 per basic share) or 25.1%.
Financial transactions
- On October 8, 2019, Videotron
issued $800.0 million aggregate
principal amount of Senior Notes bearing interest at 4.5% and
maturing on January 15, 2030, for net proceeds of
$790.7 million, net of financing
fees of $9.3 million. Videotron
used the proceeds mainly to pay down a portion of the amount due
under its secured revolving credit facility.
- On July 15, 2019, Quebecor Media
prepaid the balance of its term loan "B" and settled the
related hedging contracts for a total cash consideration
of $340.9 million.
Normal course issuer bid
On August 7, 2019, the Board of
Directors of Quebecor authorized the renewal of its normal course
issuer bid for a maximum of 1,000,000 Class A
Multiple Voting Shares ("Class A Shares"), representing
approximately 1.3% of issued and outstanding Class A Shares,
and for a maximum of 4,000,000 Class B Subordinate Voting
Shares ("Class B Shares"), representing approximately 2.2% of
issued and outstanding Class B Shares as of August 1, 2019. The purchases can be made from
August 15, 2019 to August 14, 2020 at
prevailing market prices on the open market through the facilities
of the Toronto Stock Exchange or other alternative trading systems.
All repurchased shares will be cancelled.
In the first nine months of 2019, the Corporation purchased and
cancelled 2,672,056 Class B Shares for a total cash
consideration of $80.5 million
(7,535,300 Class B Shares for a total cash consideration
of $186.3 million in the first
nine months of 2018). The $64.8 million excess of
the purchase price over the carrying value of the repurchased
Class B Shares was recorded as an increase in the deficit
($171.9 million reduction in
retained earnings in the first nine months of 2018).
In the first nine months of 2019, 180,000 Class B Shares of
Quebecor were issued upon exercise of stock options for a cash
consideration of $2.7 million (100,000 Class B
Shares for a cash consideration of $1.3 million in the first nine months
of 2018). Following this transaction, the contributed surplus
was increased by $3.0 million
($1.2 million in the first nine
months of 2018) and the stock option plan liability was
reduced by the same amount.
On October 10, 2019, 500,000
Class B Shares of Quebecor were issued upon exercise of stock
options for a cash consideration of $5.6 million.
Dividend
On November 6, 2019, the Board of
Directors of Quebecor declared a quarterly dividend of $0.1125 per share on its Class A Shares and
Class B Shares, payable on December 17,
2019 to shareholders of record at the close of business on
November 22, 2019. This dividend is designated an
eligible dividend, as provided under subsection 89(14) of the
Canadian Income Tax Act and its provincial counterpart.
Detailed financial information
For a detailed analysis of Quebecor's third quarter 2019
results, please refer to the Management Discussion and Analysis and
condensed consolidated financial statements of Quebecor, available
on the Corporation's website at
<www.quebecor.com/en/investors/financial-documentation>
or from the SEDAR filing service at
<www.sedar.com>.
Conference call for investors and webcast
Quebecor will hold a conference call to discuss its third
quarter 2019 results on November 7, 2019, at
11:00 a.m. EST. There will be a question period reserved
for financial analysts. To access the conference call, please dial
1 877 293‑8052, access code for participants 48006#. A
tape recording of the call will be available from November 7, 2019 to February 5, 2020 by
dialling 1 877 293‑8133, access code for participants and
recording access code 48006#. The conference call will also be
broadcast live on Quebecor's website at
<www.quebecor.com/en/investors/conferences-and-annual-meeting>.
It is advisable to ensure the appropriate software is installed
before accessing the call. Instructions and links to free player
downloads are available at the Internet address shown above.
Cautionary statement regarding forward-looking
statements
The statements in this press release that are not historical
facts are forward-looking statements and are subject to significant
known and unknown risks, uncertainties and assumptions that could
cause the Corporation's actual results for future periods to differ
materially from those set forth in the forward-looking statements.
Forward-looking statements may be identified by the use of the
conditional or by forward-looking terminology such as the terms
"plans," "expects," "may," "anticipates," "intends," "estimates,"
"projects," "seeks," "believes," or similar terms, variations of
such terms or the negative of such terms. Certain factors that may
cause actual results to differ from current expectations include
seasonality (including seasonal fluctuations in customer orders),
operating risk (including fluctuations in demand for Quebecor's
products and pricing actions by competitors), new competition and
Quebecor's ability to retain its current customers and attract new
ones, risks related to fragmentation of the advertising market,
insurance risk, risks associated with capital investments
(including risks related to technological development and equipment
availability and breakdown), environmental risks, risks associated
with cybersecurity and the protection of personal information,
risks associated with labour agreements, credit risk, financial
risks, debt risks, risks related to interest rate fluctuations,
foreign exchange risks, risks associated with government acts and
regulations, risks related to changes in tax legislation, and
changes in the general political and economic environment.
Investors and others are cautioned that the foregoing list of
factors that may affect future results is not exhaustive and that
undue reliance should not be placed on any forward-looking
statements. For more information on the risks, uncertainties and
assumptions that could cause Quebecor's actual results to differ
from current expectations, please refer to Quebecor's public
filings, available at
<www.sedar.com>
and <www.quebecor.com>,
including, in particular, the "Risks and Uncertainties" section of
Quebecor's Management Discussion and Analysis for the year ended
December 31, 2018.
The forward-looking statements in this press release reflect
Quebecor's expectations as of November 7, 2019 and are
subject to change after that date. Quebecor expressly disclaims any
obligation or intention to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by applicable securities laws.
About Quebecor
Quebecor, a Canadian leader in telecommunications,
entertainment, news media and culture, is one of the
best-performing integrated communications companies in the
industry. Driven by their determination to deliver the best
possible customer experience, all of Quebecor's subsidiaries and
brands are differentiated by their high-quality, multiplatform,
convergent products and services.
Quebecor (TSX: QBR.A, QBR.B) is headquartered in Québec and
employs more than 10,000 people in Canada.
A family business founded in 1950, Quebecor is strongly
committed to the community. Every year, it actively supports more
than 400 organizations in the vital fields of culture, health,
education, the environment, and entrepreneurship.
Visit our website:
<www.quebecor.com>
Follow us on Twitter:
<www.twitter.com/Quebecor>
DEFINITIONS
Adjusted EBITDA
In its analysis of operating results, the Corporation defines
adjusted EBITDA, as reconciled to net income under IFRS, as
net income before depreciation and amortization, financial
expenses, gain (loss) on valuation and translation of financial
instruments, restructuring of operations, litigation and other
items, income taxes and income from discontinued operations.
Adjusted EBITDA as defined above is not a measure of results that
is consistent with IFRS. It is not intended to be regarded as an
alternative to 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 EBITDA in order to assess the performance of its
investment in Quebecor Media. The Corporation's management and
Board of Directors use this measure in evaluating its consolidated
results as well as the results of the Corporation's operating
segments. This measure eliminates the significant level of
impairment and depreciation/amortization of tangible and intangible
assets and is unaffected by the capital structure or investment
activities of the Corporation and its business segments. Adjusted
EBITDA is also relevant because it is a significant component of
the Corporation's annual incentive compensation programs. A
limitation of this measure, however, is that it does not reflect
the periodic costs of tangible and intangible assets used in
generating revenues in the Corporation's segments. The Corporation
also uses other measures that do reflect such costs, such as cash
flows from segment operations and free cash flows from continuing
operating activities of the Quebecor Media subsidiary. The
Corporation's definition of adjusted EBITDA may not be the same as
similarly titled measures reported by other companies.
Table 4 provides a reconciliation of adjusted EBITDA to net
income as disclosed in Quebecor's condensed consolidated financial
statements.
Table 4
Reconciliation of the adjusted EBITDA measure used in this press
release to the net income measure used in the condensed
consolidated financial statements (in millions of
Canadian dollars)
|
|
|
|
|
Three months
ended
September 30
|
Nine months ended
September 30
|
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(negative adjusted EBITDA):
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
467.7
|
$
|
433.2
|
$
|
1,340.7
|
$
|
1,280.2
|
Media
|
|
32.6
|
|
30.9
|
|
39.5
|
|
31.5
|
Sports and
Entertainment
|
|
6.9
|
|
8.5
|
|
4.7
|
|
7.2
|
Head Office
|
|
2.1
|
|
1.4
|
|
0.1
|
|
(3.1)
|
|
|
509.3
|
|
474.0
|
|
1,385.0
|
|
1,315.8
|
Depreciation and
amortization
|
|
(187.0)
|
|
(188.8)
|
|
(564.1)
|
|
(562.7)
|
Financial
expenses
|
|
(81.2)
|
|
(86.8)
|
|
(246.1)
|
|
(245.6)
|
Gain (loss) on
valuation and translation of financial instruments
|
|
6.0
|
|
54.5
|
|
8.1
|
|
(50.7)
|
Restructuring of
operations, litigation and other items
|
|
(1.2)
|
|
(13.6)
|
|
(27.0)
|
|
(22.1)
|
Income
taxes
|
|
(63.2)
|
|
(48.8)
|
|
(145.4)
|
|
(116.2)
|
Income from
discontinued operations
|
|
−
|
|
0.9
|
|
97.5
|
|
2.7
|
Net
income
|
$
|
182.7
|
$
|
191.4
|
$
|
508.0
|
$
|
321.2
|
Adjusted EBITDA without restatement of comparative
figures
Table 5 provides a reconciliation of adjusted EBITDA to net
income without restatement of comparative figures following
adoption of IFRS 16.
Table 5
Reconciliation of the adjusted EBITDA measure used in this press
release to the net income measure used in the condensed
consolidated financial statements, without restatement of
comparative figures following the adoption
of IFRS 16 (in millions of Canadian
dollars)
|
|
|
|
|
Three months
ended
September 30
|
Nine months ended
September 30
|
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(negative adjusted EBITDA):
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
467.7
|
$
|
423.5
|
$
|
1,340.7
|
$
|
1,251.1
|
Media
|
|
32.6
|
|
29.6
|
|
39.5
|
|
27.8
|
Sports and
Entertainment
|
|
6.9
|
|
7.2
|
|
4.7
|
|
3.1
|
Head Office
|
|
2.1
|
|
2.8
|
|
0.1
|
|
0.1
|
|
|
509.3
|
|
463.1
|
|
1,385.0
|
|
1,282.1
|
Depreciation and
amortization
|
|
(187.0)
|
|
(180.5)
|
|
(564.1)
|
|
(538.0)
|
Financial
expenses
|
|
(81.2)
|
|
(84.8)
|
|
(246.1)
|
|
(239.1)
|
Gain (loss) on
valuation and translation of financial instruments
|
|
6.0
|
|
54.5
|
|
8.1
|
|
(50.7)
|
Restructuring of
operations, litigation and other items
|
|
(1.2)
|
|
(13.6)
|
|
(27.0)
|
|
(22.1)
|
Income
taxes
|
|
(63.2)
|
|
(48.6)
|
|
(145.4)
|
|
(115.5)
|
Income from
discontinued operations
|
|
−
|
|
0.9
|
|
97.5
|
|
2.7
|
Net
income
|
$
|
182.7
|
$
|
191.0
|
$
|
508.0
|
$
|
319.4
|
Adjusted income from continuing operating activities
The Corporation defines adjusted income from continuing
operating activities, as reconciled to net income attributable to
shareholders under IFRS, as net income attributable to
shareholders before gain (loss) on valuation and translation of
financial instruments, restructuring of operations, litigation and
other items, net of income tax related to adjustments and net
income attributable to non‑controlling interest related to
adjustments, and before the income from discontinued operations
attributable to shareholders. Adjusted income from continuing
operating activities, as defined above, is not a measure of results
that is consistent with IFRS. It should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. The Corporation uses adjusted income
from continuing operating activities to analyze trends in the
performance of its businesses. The above‑listed items are excluded
from the calculation of this measure because they impair the
comparability of financial results. Adjusted income from continuing
operating activities is more representative for forecasting income.
The Corporation's definition of adjusted income from continuing
operating activities may not be identical to similarly titled
measures reported by other companies.
Table 6 provides a reconciliation of adjusted income from
continuing operating activities to the net income attributable to
shareholders' measure used in Quebecor's condensed consolidated
financial statements.
Table 6
Reconciliation of the adjusted income from continuing operating
activities measure used in this press release to the net income
attributable to shareholders' measure used in the condensed
consolidated financial statements (in millions of
Canadian dollars)
|
|
|
|
|
Three months
ended
September 30
|
Nine months ended
September 30
|
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
|
|
|
|
Adjusted income from
continuing operating activities
|
$
|
173.8
|
$
|
141.5
|
$
|
421.4
|
$
|
336.9
|
Gain (loss) on
valuation and translation of financial instruments
|
|
6.0
|
|
54.5
|
|
8.1
|
|
(50.7)
|
Restructuring of
operations and other items
|
|
(1.2)
|
|
(13.6)
|
|
(27.0)
|
|
(22.1)
|
Income taxes related
to adjustments1
|
|
(0.1)
|
|
3.4
|
|
6.6
|
|
17.9
|
Net income
attributable to non‑controlling interest related to
adjustments
|
|
−
|
|
0.4
|
|
1.1
|
|
1.8
|
Discontinued
operations
|
|
−
|
|
0.9
|
|
97.5
|
|
2.4
|
Net income
attributable to shareholders
|
$
|
178.5
|
$
|
187.1
|
$
|
507.7
|
$
|
286.2
|
|
|
1
|
Includes impact of
fluctuations in income tax applicable to adjusted items, either for
statutory reasons or in connection with tax
transactions.
|
KEY PERFORMANCE INDICATORS
Revenue-generating unit
The Corporation uses RGU, an industry metric, as a key
performance indicator. An RGU represents, as the case may be,
subscriptions to the cable Internet, cable television and Club
illico services, and subscriber connections to the mobile telephony
and cable telephony services. RGU is not a measurement that is
consistent with IFRS and the Corporation's definition and
calculation of RGU may not be the same as identically titled
measurements reported by other companies or published by public
authorities.
Average billing per unit
The Corporation uses ABPU, an industry metric, as a key
performance indicator. This indicator is used to measure monthly
average subscription billing per RGU. ABPU is not a measurement
that is consistent with IFRS and the Corporation's definition and
calculation of ABPU may not be the same as identically titled
measurements reported by other companies.
Mobile ABPU is calculated by dividing the average subscription
billing for mobile telephony services by the average number of
mobile RGUs during the applicable period, and then dividing
the resulting amount by the number of months in the applicable
period.
Total ABPU is calculated by dividing the combined average
subscription billing for cable Internet, cable television,
Club illico, mobile telephony and cable telephony services by
the total average number of RGUs from cable Internet, cable
television, mobile telephony and cable telephony services during
the applicable period, and then dividing the resulting amount by
the number of months in the applicable period.
QUEBECOR
INC.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars, except for earnings per share
data)
|
Three months
ended
|
|
Nine months
ended
|
(unaudited)
|
September
30
|
|
September
30
|
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
|
(restated)
|
|
|
(restated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,073.4
|
$
|
1,053.2
|
|
$
|
3,157.6
|
$
|
3,093.9
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
162.6
|
|
163.7
|
|
|
516.6
|
|
526.1
|
Purchase of goods and
services
|
|
401.5
|
|
415.5
|
|
|
1,256.0
|
|
1,252.0
|
Depreciation and
amortization
|
|
187.0
|
|
188.8
|
|
|
564.1
|
|
562.7
|
Financial
expenses
|
|
81.2
|
|
86.8
|
|
|
246.1
|
|
245.6
|
(Gain) loss on
valuation and translation of financial instruments
|
|
(6.0)
|
|
(54.5)
|
|
|
(8.1)
|
|
50.7
|
Restructuring of
operations, litigation and other items
|
|
1.2
|
|
13.6
|
|
|
27.0
|
|
22.1
|
Income before
income taxes
|
|
245.9
|
|
239.3
|
|
|
555.9
|
|
434.7
|
|
|
|
|
|
|
|
|
|
|
Income taxes
(recovery):
|
|
|
|
|
|
|
|
|
|
Current
|
|
29.7
|
|
50.5
|
|
|
115.1
|
|
153.2
|
Deferred
|
|
33.5
|
|
(1.7)
|
|
|
30.3
|
|
(37.0)
|
|
|
63.2
|
|
48.8
|
|
|
145.4
|
|
116.2
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
182.7
|
|
190.5
|
|
|
410.5
|
|
318.5
|
Income from
discontinued operations
|
|
-
|
|
0.9
|
|
|
97.5
|
|
2.7
|
Net
income
|
$
|
182.7
|
$
|
191.4
|
|
$
|
508.0
|
$
|
321.2
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations attributable to
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
178.5
|
$
|
186.2
|
|
$
|
410.2
|
$
|
283.8
|
Non-controlling
interests
|
|
4.2
|
|
4.3
|
|
|
0.3
|
|
34.7
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
178.5
|
$
|
187.1
|
|
$
|
507.7
|
$
|
286.2
|
Non-controlling
interests
|
|
4.2
|
|
4.3
|
|
|
0.3
|
|
35.0
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to shareholders
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
From continuing
operations
|
$
|
0.70
|
$
|
0.80
|
|
$
|
1.60
|
$
|
1.21
|
From discontinued
operations
|
|
-
|
|
-
|
|
|
0.38
|
|
0.01
|
Net income
|
|
0.70
|
|
0.80
|
|
|
1.98
|
|
1.22
|
Diluted:
|
|
|
|
|
|
|
|
|
|
From continuing
operations
|
$
|
0.67
|
$
|
0.51
|
|
$
|
1.57
|
$
|
1.18
|
From discontinued
operations
|
|
-
|
|
-
|
|
|
0.37
|
|
0.01
|
Net income
|
|
0.67
|
|
0.51
|
|
|
1.94
|
|
1.19
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (in millions)
|
|
255.6
|
|
232.8
|
|
|
255.8
|
|
234.1
|
Weighted average
number of diluted shares (in millions)
|
|
261.7
|
|
268.8
|
|
|
261.9
|
|
240.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUEBECOR
INC.
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
Three months
ended
|
|
Nine months
ended
|
(unaudited)
|
September
30
|
|
September
30
|
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
|
(restated)
|
|
|
(restated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
182.7
|
$
|
190.5
|
|
$
|
410.5
|
$
|
318.5
|
|
|
|
|
|
|
|
|
|
|
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
|
|
41.4
|
|
(0.4)
|
|
|
71.6
|
|
(44.8)
|
Deferred income
taxes
|
|
(6.5)
|
|
3.0
|
|
|
(4.7)
|
|
5.1
|
|
|
|
|
|
|
|
|
|
|
Reclassification to
income:
|
|
|
|
|
|
|
|
|
|
Gain related to cash
flow hedges
|
|
(1.1)
|
|
-
|
|
|
(1.1)
|
|
-
|
Deferred income
taxes
|
|
0.7
|
|
-
|
|
|
0.7
|
|
-
|
|
|
34.5
|
|
2.6
|
|
|
66.5
|
|
(39.7)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income from continuing operations
|
|
217.2
|
|
193.1
|
|
|
477.0
|
|
278.8
|
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations
|
|
-
|
|
0.9
|
|
|
97.5
|
|
2.7
|
Comprehensive
income
|
$
|
217.2
|
$
|
194.0
|
|
$
|
574.5
|
$
|
281.5
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income from continuing operations attributable to
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
213.0
|
$
|
188.8
|
|
$
|
476.7
|
$
|
251.7
|
Non-controlling
interests
|
|
4.2
|
|
4.3
|
|
|
0.3
|
|
27.1
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income attributable to
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
213.0
|
$
|
189.7
|
|
$
|
574.2
|
$
|
254.1
|
Non-controlling
interests
|
|
4.2
|
|
4.3
|
|
|
0.3
|
|
27.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUEBECOR
INC.
|
SEGMENTED
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
Head
office
|
|
|
|
|
|
|
|
and
|
and
|
|
|
|
Telecommunications
|
Media
|
Entertainment
|
Intersegments
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
876.7
|
$
|
167.2
|
$
|
55.8
|
$
|
(26.3)
|
$
|
1,073.4
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
92.2
|
|
53.4
|
|
9.5
|
|
7.5
|
|
162.6
|
Purchase of goods and
services
|
|
316.8
|
|
81.2
|
|
39.4
|
|
(35.9)
|
|
401.5
|
Adjusted
EBITDA1
|
|
467.7
|
|
32.6
|
|
6.9
|
|
2.1
|
|
509.3
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
187.0
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
81.2
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
(6.0)
|
Restructuring of
operations, litigation and other items
|
|
|
|
|
|
|
|
|
|
1.2
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
$
|
245.9
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
117.4
|
$
|
5.0
|
$
|
0.1
|
$
|
0.1
|
$
|
122.6
|
Additions to
intangible assets
|
|
57.2
|
|
8.5
|
|
0.8
|
|
(0.1)
|
|
66.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2018
|
|
(restated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
Head
office
|
|
|
|
|
|
|
|
and
|
and
|
|
|
|
Telecommunications
|
Media
|
Entertainment
|
Intersegments
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
854.8
|
$
|
170.9
|
$
|
54.5
|
$
|
(27.0)
|
$
|
1,053.2
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
91.9
|
|
54.7
|
|
10.0
|
|
7.1
|
|
163.7
|
Purchase of goods and
services
|
|
329.7
|
|
85.3
|
|
36.0
|
|
(35.5)
|
|
415.5
|
Adjusted
EBITDA1
|
|
433.2
|
|
30.9
|
|
8.5
|
|
1.4
|
|
474.0
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
188.8
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
86.8
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
(54.5)
|
Restructuring of
operations, litigation and other items
|
|
|
|
|
|
|
|
|
|
13.6
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
$
|
239.3
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
128.8
|
$
|
8.2
|
$
|
0.2
|
$
|
0.7
|
$
|
137.9
|
Additions to
intangible assets
|
|
29.1
|
|
1.1
|
|
0.9
|
|
0.7
|
|
31.8
|
|
|
|
Nine months ended
September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Head
office
|
|
|
|
|
|
|
|
Sports
|
|
|
|
|
|
|
|
and
|
and
|
|
|
|
Telecommunications
|
Media
|
Entertainment
|
Intersegments
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
2,571.8
|
$
|
530.0
|
$
|
137.5
|
$
|
(81.7)
|
$
|
3,157.6
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
291.8
|
|
170.8
|
|
29.1
|
|
24.9
|
|
516.6
|
Purchase of goods and
services
|
|
939.3
|
|
319.7
|
|
103.7
|
|
(106.7)
|
|
1,256.0
|
Adjusted
EBITDA1
|
|
1,340.7
|
|
39.5
|
|
4.7
|
|
0.1
|
|
1,385.0
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
564.1
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
246.1
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
(8.1)
|
Restructuring of
operations, litigation and other items
|
|
|
|
|
|
|
|
|
|
27.0
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
$
|
555.9
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
361.2
|
$
|
13.7
|
$
|
1.1
|
$
|
1.3
|
$
|
377.3
|
Additions to
intangible assets
|
|
402.3
|
|
19.1
|
|
2.9
|
|
0.2
|
|
424.5
|
|
|
|
Nine months ended
September 30, 2018
|
|
(restated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Head
office
|
|
|
|
|
|
|
|
Sports
|
|
|
|
|
|
|
|
and
|
and
|
|
|
|
Telecommunications
|
Media
|
Entertainment
|
Intersegments
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
2,515.9
|
$
|
530.6
|
$
|
128.6
|
$
|
(81.2)
|
$
|
3,093.9
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
291.7
|
|
176.9
|
|
29.5
|
|
28.0
|
|
526.1
|
Purchase of goods and
services
|
|
944.0
|
|
322.2
|
|
91.9
|
|
(106.1)
|
|
1,252.0
|
Adjusted
EBITDA1
|
|
1,280.2
|
|
31.5
|
|
7.2
|
|
(3.1)
|
|
1,315.8
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
562.7
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
245.6
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
50.7
|
Restructuring of
operations, litigation and other items
|
|
|
|
|
|
|
|
|
|
22.1
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
$
|
434.7
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
389.3
|
$
|
18.8
|
$
|
0.7
|
$
|
6.1
|
$
|
414.9
|
Additions to
intangible assets
|
|
120.7
|
|
3.6
|
|
2.7
|
|
0.3
|
|
127.3
|
|
|
1
|
The Chief Executive
Officer uses adjusted EBITDA as the measure of profit to assess the
performance of each segment. Adjusted EBITDA is referred as
a non-IFRS measure and is defined
as net income before depreciation and amortization, financial
expenses, (gain) loss on valuation and translation
of financial instruments,
restructuring of operations, litigation and other items, income
taxes and income from discontinued operations.
|
QUEBECOR
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
attributable to shareholders
|
Equity
|
|
|
|
|
|
|
|
|
Accumulated
|
attributable
|
|
|
|
|
|
|
|
Retained
|
other
|
to
non-
|
|
|
|
Capital
|
Contributed
|
earnings
|
comprehensive
|
controlling
|
Total
|
|
stock
|
surplus
|
(deficit)
|
loss
|
interests
|
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of
December 31, 2017, as previously reported
|
$
|
313.9
|
$
|
3.5
|
$
|
601.9
|
$
|
(50.7)
|
$
|
540.4
|
$
|
1,409.0
|
Changes in accounting
policies
|
|
-
|
|
-
|
|
(7.2)
|
|
-
|
|
(4.8)
|
|
(12.0)
|
Balance as of
December 31, 2017, as restated
|
|
313.9
|
|
3.5
|
|
594.7
|
|
(50.7)
|
|
535.6
|
|
1,397.0
|
Net income
|
|
-
|
|
-
|
|
286.2
|
|
-
|
|
35.0
|
|
321.2
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
-
|
|
(32.1)
|
|
(7.6)
|
|
(39.7)
|
Issuance of Class B
Shares
|
|
1.3
|
|
1.2
|
|
-
|
|
-
|
|
-
|
|
2.5
|
Dividends or
distributions
|
|
-
|
|
-
|
|
(32.1)
|
|
-
|
|
(9.4)
|
|
(41.5)
|
Repurchase of Class B
Shares
|
|
(14.4)
|
|
-
|
|
(171.9)
|
|
-
|
|
-
|
|
(186.3)
|
Non-controlling
interests acquisition
|
-
|
|
-
|
|
(1,202.4)
|
|
(19.2)
|
|
(468.4)
|
|
(1,690.0)
|
Balance as of
September 30, 2018
|
|
300.8
|
|
4.7
|
|
(525.5)
|
|
(102.0)
|
|
85.2
|
|
(236.8)
|
Net income
|
|
-
|
|
-
|
|
117.5
|
|
-
|
|
3.1
|
|
120.6
|
Other comprehensive
income
|
|
-
|
|
-
|
|
-
|
|
19.3
|
|
0.2
|
|
19.5
|
Issuance of Class B
Shares
|
|
784.8
|
|
-
|
|
-
|
|
-
|
|
-
|
|
784.8
|
Dividends
|
|
-
|
|
-
|
|
(14.2)
|
|
-
|
|
-
|
|
(14.2)
|
Repurchase of Class B
Shares
|
|
(19.7)
|
|
-
|
|
(85.7)
|
|
-
|
|
-
|
|
(105.4)
|
Balance as of
December 31, 2018
|
|
1,065.9
|
|
4.7
|
|
(507.9)
|
|
(82.7)
|
|
88.5
|
|
568.5
|
Net income
|
|
-
|
|
-
|
|
507.7
|
|
-
|
|
0.3
|
|
508.0
|
Other comprehensive
income
|
|
-
|
|
-
|
|
-
|
|
66.5
|
|
-
|
|
66.5
|
Issuance of Class B
Shares
|
|
2.7
|
|
3.0
|
|
-
|
|
-
|
|
-
|
|
5.7
|
Dividends
|
|
-
|
|
-
|
|
(71.6)
|
|
-
|
|
-
|
|
(71.6)
|
Repurchase of Class B
Shares
|
|
(15.7)
|
|
-
|
|
(64.8)
|
|
-
|
|
-
|
|
(80.5)
|
Balance as of
September 30, 2019
|
$
|
1,052.9
|
$
|
7.7
|
$
|
(136.6)
|
$
|
(16.2)
|
$
|
88.8
|
$
|
996.6
|
QUEBECOR
INC.
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
Three months
ended
|
|
Nine months
ended
|
(unaudited)
|
September
30
|
|
September
30
|
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
|
(restated)
|
|
|
(restated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows related
to operating activities
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
182.7
|
$
|
190.5
|
|
$
|
410.5
|
$
|
318.5
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
148.4
|
|
153.3
|
|
|
450.2
|
|
457.7
|
Amortization of
intangible assets
|
|
29.7
|
|
26.3
|
|
|
87.1
|
|
77.7
|
Amortization of
right-of-use assets
|
|
8.9
|
|
9.2
|
|
|
26.8
|
|
27.3
|
(Gain) loss on
valuation and translation of financial instruments
|
|
(6.0)
|
|
(54.5)
|
|
|
(8.1)
|
|
50.7
|
Impairment of
assets
|
|
-
|
|
14.9
|
|
|
18.8
|
|
14.9
|
Amortization of
financing costs and long-term debt discount
|
|
2.1
|
|
1.8
|
|
|
6.1
|
|
5.3
|
Deferred income
taxes
|
|
33.5
|
|
(1.7)
|
|
|
30.3
|
|
(37.0)
|
Other
|
|
0.2
|
|
(2.7)
|
|
|
(1.9)
|
|
(4.8)
|
|
|
399.5
|
|
337.1
|
|
|
1,019.8
|
|
910.3
|
Net change in
non-cash balances related to operating activities
|
|
(20.5)
|
|
127.2
|
|
|
(171.1)
|
|
189.3
|
Cash flows provided
by continuing operating activities
|
|
379.0
|
|
464.3
|
|
|
848.7
|
|
1,099.6
|
Cash flows related
to investing activities
|
|
|
|
|
|
|
|
|
|
Business
acquisitions
|
|
(1.0)
|
|
(5.8)
|
|
|
(35.6)
|
|
(7.2)
|
Business
disposals
|
|
-
|
|
-
|
|
|
260.7
|
|
-
|
Additions to
property, plant and equipment
|
|
(122.6)
|
|
(137.9)
|
|
|
(377.3)
|
|
(414.9)
|
Additions to
intangible assets
|
|
(66.4)
|
|
(31.8)
|
|
|
(424.5)
|
|
(127.3)
|
Proceeds from
disposals of assets
|
|
0.5
|
|
4.7
|
|
|
3.2
|
|
6.4
|
Non-controlling
interests acquisition
|
|
-
|
|
-
|
|
|
-
|
|
(1,540.0)
|
Other
|
|
(17.8)
|
|
(0.2)
|
|
|
(25.0)
|
|
(1.2)
|
Cash flows used in
continuing investing activities
|
|
(207.3)
|
|
(171.0)
|
|
|
(598.5)
|
|
(2,084.2)
|
Cash flows related
to financing activities
|
|
|
|
|
|
|
|
|
|
Net change in bank
indebtedness
|
|
6.9
|
|
(5.6)
|
|
|
4.0
|
|
20.9
|
Net change under
revolving facilities
|
|
251.3
|
|
(94.2)
|
|
|
281.3
|
|
546.3
|
Repayment of
long-term debt
|
|
(435.4)
|
|
(3.6)
|
|
|
(443.4)
|
|
(16.4)
|
Repayment of lease
liabilities
|
|
(9.4)
|
|
(9.8)
|
|
|
(29.9)
|
|
(29.6)
|
Repayment of
convertible debentures
|
|
-
|
|
(86.5)
|
|
|
-
|
|
(158.4)
|
Settlement of hedging
contracts
|
|
91.6
|
|
-
|
|
|
90.8
|
|
(0.8)
|
Issuance of Class B
Shares
|
|
-
|
|
-
|
|
|
2.7
|
|
1.3
|
Repurchase of Class B
Shares
|
|
(41.0)
|
|
(68.3)
|
|
|
(80.5)
|
|
(186.3)
|
Dividends
|
|
(28.7)
|
|
(12.8)
|
|
|
(71.6)
|
|
(32.1)
|
Dividends or
distributions paid to non-controlling interests
|
|
-
|
|
-
|
|
|
-
|
|
(9.4)
|
Cash flows (used in)
provided by continuing financing activities
|
|
(164.7)
|
|
(280.8)
|
|
|
(246.6)
|
|
135.5
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents from continuing operations
|
|
7.0
|
|
12.5
|
|
|
3.6
|
|
(849.1)
|
|
|
|
|
|
|
|
|
|
|
Cash flows provided
by (used in) discontinued operations
|
|
-
|
|
2.2
|
|
|
(0.7)
|
|
7.1
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
17.2
|
|
8.2
|
|
|
21.3
|
|
864.9
|
Cash and cash
equivalents at end of period
|
$
|
24.2
|
$
|
22.9
|
|
$
|
24.2
|
$
|
22.9
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents consist of
|
|
|
|
|
|
|
|
|
|
Cash
|
$
|
15.7
|
$
|
22.0
|
|
$
|
15.7
|
$
|
22.0
|
Cash
equivalents
|
|
8.5
|
|
0.9
|
|
|
8.5
|
|
0.9
|
|
$
|
24.2
|
$
|
22.9
|
|
$
|
24.2
|
$
|
22.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and taxes
reflected as operating activities
|
|
|
|
|
|
|
|
|
|
Cash interest
payments
|
$
|
45.5
|
$
|
49.1
|
|
$
|
203.3
|
$
|
206.1
|
Cash income tax
payments (net of refunds)
|
|
54.2
|
|
(4.6)
|
|
|
235.0
|
|
12.4
|
QUEBECOR
INC.
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
|
(unaudited)
|
|
September
30
|
|
December
31
|
|
December
31
|
|
|
2019
|
|
2018
|
|
2017
|
|
|
(restated)
|
|
(restated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
24.2
|
$
|
21.3
|
$
|
864.9
|
Accounts
receivable
|
|
515.9
|
|
553.5
|
|
543.4
|
Contract
assets
|
|
153.8
|
|
144.4
|
|
132.8
|
Income
taxes
|
|
11.5
|
|
4.8
|
|
29.3
|
Inventories
|
|
211.4
|
|
186.3
|
|
188.1
|
Other current
assets
|
|
137.2
|
|
118.3
|
|
117.6
|
Assets held for
sale
|
|
-
|
|
95.0
|
|
-
|
|
|
1,054.0
|
|
1,123.6
|
|
1,876.1
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
3,351.0
|
|
3,467.3
|
|
3,610.1
|
Intangible
assets
|
|
1,459.7
|
|
1,135.3
|
|
983.1
|
Goodwill
|
|
2,692.3
|
|
2,678.3
|
|
2,695.8
|
Right-of-use
assets
|
|
108.4
|
|
112.6
|
|
133.5
|
Derivative financial
instruments
|
|
746.3
|
|
887.0
|
|
591.8
|
Deferred income
taxes
|
|
31.2
|
|
51.8
|
|
33.2
|
Other
assets
|
|
231.4
|
|
201.6
|
|
185.1
|
|
|
8,620.3
|
|
8,533.9
|
|
8,232.6
|
Total
assets
|
$
|
9,674.3
|
$
|
9,657.5
|
$
|
10,108.7
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Bank
indebtedness
|
$
|
28.3
|
$
|
24.3
|
$
|
0.8
|
Accounts payable and
accrued charges
|
|
742.0
|
|
832.0
|
|
738.7
|
Provisions
|
|
22.4
|
|
32.0
|
|
24.0
|
Deferred
revenue
|
|
351.6
|
|
340.7
|
|
346.8
|
Income
taxes
|
|
6.0
|
|
119.2
|
|
13.3
|
Convertible
debentures
|
|
-
|
|
-
|
|
450.0
|
Embedded derivatives
related to convertible debentures
|
|
-
|
|
-
|
|
442.2
|
Current portion of
long-term debt
|
|
60.1
|
|
57.9
|
|
20.4
|
Current portion of
lease liabilities
|
|
31.8
|
|
36.0
|
|
39.8
|
Liabilities held for
sale
|
|
-
|
|
6.6
|
|
-
|
|
|
1,242.2
|
|
1,448.7
|
|
2,076.0
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Long-term
debt
|
|
6,090.1
|
|
6,370.3
|
|
5,516.2
|
Derivative financial
instruments
|
|
0.3
|
|
-
|
|
34.1
|
Convertible
debentures
|
|
150.0
|
|
150.0
|
|
-
|
Lease
liabilities
|
|
105.0
|
|
108.4
|
|
128.1
|
Deferred income
taxes
|
|
811.6
|
|
775.9
|
|
744.9
|
Other
liabilities
|
|
278.5
|
|
235.7
|
|
212.4
|
|
|
7,435.5
|
|
7,640.3
|
|
6,635.7
|
Equity
|
|
|
|
|
|
|
Capital
stock
|
|
1,052.9
|
|
1,065.9
|
|
313.9
|
Contributed
surplus
|
|
7.7
|
|
4.7
|
|
3.5
|
(Deficit) retained
earnings
|
|
(136.6)
|
|
(507.9)
|
|
594.7
|
Accumulated other
comprehensive loss
|
|
(16.2)
|
|
(82.7)
|
|
(50.7)
|
Equity
attributable to shareholders
|
|
907.8
|
|
480.0
|
|
861.4
|
Non-controlling
interests
|
|
88.8
|
|
88.5
|
|
535.6
|
|
|
996.6
|
|
568.5
|
|
1,397.0
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
9,674.3
|
$
|
9,657.5
|
$
|
10,108.7
|
View original
content:http://www.prnewswire.com/news-releases/quebecor-inc-reports-consolidated-results-for-third-quarter-2019-300953343.html
SOURCE Quebecor