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Quebecor Inc. Reports Consolidated Results for Third Quarter 2009
(Market Wire Via Acquire Media NewsEdge) MONTREAL, QUEBEC -- (MARKET WIRE) -- 11/05/09 --
Quebecor Inc. ("Quebecor") (TSX: QBR.A)(TSX: QBR.B) today reported its consolidated financial results for the third quarter of 2009. Quebecor consolidates the financial results of its Quebecor Media Inc. subsidiary ("Quebecor Media"), in which it holds a 54.7% interest.
Highlights since end of second quarter 2009
- Quebecor records revenues of $918.4 million, up $10.3 million (1.1%) from third quarter 2008.
- Operating income (1): up $23.6 million (8.5%) to $301.0 million.
- Net income: $69.4 million ($1.08 per basic share), up $23.7 million ($0.37 per basic share) or 51.9% from $45.7 million ($0.71 per basic share) in the same period of 2008.
- Adjusted income from continuing operating activities (2): $52.9 million ($0.82 per basic share), up $10.4 million ($0.16 per basic share), or 24.5%, from $42.5 million ($0.66 per basic share) in the same period of 2008.
- Telecommunications segment: operating income up $34.7 million (17.3%). Customer growth in third quarter 2009: +44,300 for cable telephone service, +35,500 for cable Internet access, +27,100 for cable television service (including 52,100-customer increase for illico Digital TV), +6,300 activated phones for wireless telephone service.
- illico Digital TV service provided by Videotron Ltd. ("Videotron") passes million-subscriber mark.
- Restructuring and other cost-reduction initiatives in News Media segment generate estimated savings of $45.0 million in first nine months of 2009.
"Quebecor's results trended strongly upward in the third quarter of 2009 with a 51.9% increase in net income to $69.4 million, or $1.08 per basic share," said Pierre Karl Peladeau, President and Chief Executive Officer of Quebecor. "Videotron again posted a significant increase in operating income, reflecting customer growth for all its services for the 17th consecutive quarter. At the same time, Videotron is pressing ahead with its advanced wireless services network project. As of September 30, 2009, all service and switching platforms had been installed, as well as the interconnections with Videotron's existing network. The build-out of antenna sites is proceeding on schedule. For nearly 60% of these sites, leases have been signed or tower-sharing requests accepted and the equipment is being installed. Meanwhile, in the News Media segment, cost-cutting efforts continued to pay off. Total year-to-date savings generated by these initiatives are estimated at $45.0 million."
Table 1
Quebecor third quarter financial highlights, 2005-2009
(in millions of Canadian dollars, except per share data)
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2009 2008 2007 2006 2005
Revenues $918.4 $908.1 $834.6 $718.6 $649.1
Operating income(1) 301.0 277.4 256.9 191.9 173.7
Income from
continuing
operations 67.8 45.7 80.5 27.2 14.8
Net income (loss) 69.4 45.7 (35.0) 33.6 22.2
Adjusted income
from continuing
operating
activities(2) 52.9 42.5 42.3 25.4 17.1
Per share data:
Income from
continuing
operations 1.06 0.71 1.25 0.42 0.23
Net income (loss) 1.08 0.71 (0.54) 0.52 0.35
Adjusted income
from continuing
operating
activities(2) 0.82 0.66 0.66 0.40 0.27
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(1) See "Operating income" under "Definitions."
(2) See "Adjusted income from continuing operations" under
"Definitions."
Analysis of third quarter 2009 results
- Quebecor's revenues increased $10.3 million (1.1%) to $918.4 million.
- Revenues increased in the following segments: Telecommunications (by
$50.8 million or 11.2% of segment revenues) mainly because of customer
growth for all services, and in Leisure and Entertainment ($4.8 million
or 6.4%).
- Revenues decreased in News Media ($41.6 million or -14.7%) due
essentially to lower advertising revenues, Broadcasting ($3.1 million
or -3.4%) and Interactive Technologies and Communications ($0.4 million
or -1.9%).
- Operating income increased $23.6 million (8.5%) to $301.0 million, due
primarily to an increase in the Telecommunications segment ($34.7 million
or 17.3% of segment operating income). Operating income rose $3.2 million
(36.8%) in the Leisure and Entertainment segment and decreased $7.7
million (-14.6%) in News Media.
- Quebecor's net income totalled $69.4 million ($1.08 per basic share),
compared with $45.7 million ($0.71 per basic share) in the same period of
2008, an increase of $23.7 million ($0.37 per basic share) or 51.9%.
- The increase was mainly due to:
- $26.7 million favourable variance in gain on valuation and translation
of financial instruments resulting primarily from the fluctuation in
the fair value of early settlement options;
- $23.6 million increase in operating income;
- $8.1 million decrease in financial expenses.
Partially offset by:
- $21.7 million increase in non-controlling interest;
- $9.7 million increase in amortization charge;
- $3.0 million increase in income tax expense.
- Adjusted income from continuing operating activities: $52.9 million in
the third quarter of 2009 ($0.82 per basic share), compared with $42.5
million ($0.66 per basic share) in the same period of 2008, an increase
of $10.4 million ($0.16 per basic share) or 24.5%.
Analysis of year-to-date operating results
- Quebecor's revenues totalled $2.75 billion, an increase of $26.5 million
(1.0%).
- Revenues increased in the following segments: Telecommunications (by
$137.6 million or 10.3% of segment revenues), Leisure and Entertainment
($10.8 million or 5.4%), Interactive Technologies and Communications
($1.9 million or 2.9%) and Broadcasting ($0.7 million or 0.2%).
- Revenues decreased in News Media (by $123.7 million or -14.1%).
- Operating income increased $78.1 million (9.6%) to $889.1 million, due
primarily to an increase in the Telecommunications segment ($112.2
million or 19.4% of segment operating income). Operating income decreased
in News Media (by $42.1 million or -24.4%).
The increase in operating income includes an $18.0 million favourable
variance (including $13.9 million in the Telecommunications segment and
$4.1 million in the Broadcasting segment) related to recognition during
the first nine months of 2008 of a retroactive provision for Canadian
Radio-television and Telecommunications Commission ("CRTC") Part II
licence fees ("Part II fees").
- Quebecor's net income was $203.9 million ($3.17 per basic share),
compared with $531.6 million ($8.27 per basic share) in the same period
of 2008.
- Favourable variances in the following items:
- $78.1 million increase in operating income;
- $38.2 million decrease in financial expenses;
- $15.4 million decrease in income tax expense;
- $13.7 million favourable variance in gain on valuation and translation
of financial instruments;
were outweighed by:
- recognition in first quarter of 2008 of income from discontinued
operations in the amount of $383.3 million, compared with $1.6 million
in the third quarter of 2009;
- $51.2 million increase in non-controlling interest;
- $22.8 million increase in amortization charge;
- recognition of a $13.6 million non-cash impairment charge for goodwill
and intangible assets during the first nine months of 2009.
- Adjusted income from continuing operating activities: $152.3 million for
the first nine months of 2009 ($2.37 per basic share), compared with
$118.6 million ($1.85 per basic share) in the same period of 2008, an
increase of $33.7 million ($0.52 per basic share) or 28.4%.
Event after end of third quarter 2009
With respect to the Part II fees payable to the CRTC, Videotron and TVA Group Inc. ("TVA Group") agreed on an out-of-court settlement on October 7, 2009 whereby they withdrew their legal challenge and monetary claims, and the government agreed not to claim the unpaid Part II fees for the period of September 1, 2006 through August 31, 2009. In view of this settlement, Quebecor will reverse in the fourth quarter of 2009 provisions totalling $42.8 million for unpaid Part II fees as of August 31, 2009. Under the out-of-court settlement, the government also undertook to recommend that the CRTC amend its regulations to limit the amount of the Part II fees for periods subsequent to August 31, 2009. To date, however, the current regulatory rate remains applicable to Quebecor and will continue to apply until such time as it is amended by the CRTC.
Dividends
On November 4, 2009, the Board of Directors of Quebecor declared a quarterly dividend of $0.05 per share on Class A Multiple Voting Shares and Class B Subordinate Voting Shares, payable on December 15, 2009 to shareholders of record at the close of business on November 20, 2009. This dividend is designated to be an eligible dividend, as provided under subsection 89(14) of the Canadian Income Tax Act and its provincial counterpart.
Detailed financial information
For a detailed analysis of Quebecor's results for the third quarter of 2009, please refer to the Management Discussion and Analysis and consolidated financial statements of Quebecor, available on the Quebecor's website at http://www.quebecor.com/InvestorCenter/QIQuarterlyReports.aspx or from the SEDAR filing service at http://www.sedar.com.
Conference call for investors and webcast
Quebecor will hold a conference call to discuss the third quarter 2009 results of Quebecor and Quebecor Media on November 5, 2009, 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 77467#. A tape recording of the call will be available from November 5 to December 5, 2009 by dialling 1 877 293-8133, access code 975898#. The conference call will also be broadcast live on Quebecor's website at www.quebecor.com/InvestorCenter/QIConferenceCall.aspx. 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.
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 which could cause Quebecor's actual results for future periods to differ materially from those set forth in the forward-looking statements. Forward-looking statements may be identified by the use of the conditional or by forward-looking terminology such as the terms "plans," "expects," "may," "anticipates," "intends," "estimates," "projects," "seeks," "believes" or similar terms, variations of such terms, or the negative of such terms. Certain factors that may cause actual results to differ from current expectations include seasonality (including seasonal fluctuations in customer orders), operating risk (including fluctuations in demand for Quebecor's products and pricing actions by competitors), insurance risk, risks associated with capital investment (including risks related to technological development and equipment availability and breakdown), environmental risks, risks associated with labour agreements, risks associated with commodities and energy prices (including fluctuations in the cost and availability of raw materials), credit risk, financial risks, debt risks, risks related to interest rate fluctuations, foreign exchange risks, risks associated with government acts and regulations, risks related to changes in tax legislation, and changes in the general political and economic environment. Investors and others are cautioned that the foregoing list of factors that may affect future results is not exhaustive and that undue reliance should not be placed on any forward-looking statements. For more information on the risks, uncertainties and assumptions that could cause Quebecor's actual results to differ from current expectations, please refer to Quebecor's public filings available at www.sedar.com and www.quebecor.com including, in particular, the "Risks and Uncertainties" section in Quebecor's Management Discussion and Analysis for the year ended December 31, 2008.
The forward-looking statements in this press release reflect Quebecor's expectations as of November 5, 2009, 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.
The Company
Quebecor Inc. (TSX: QBR.A)(TSX: QBR.B) is a holding company with a 54.7% interest in Quebecor Media Inc, one of Canada's largest media groups. Quebecor Media owns operating companies in numerous media related businesses: Videotron Ltd., an integrated communications company engaged in cable television, interactive multimedia development, Internet access services, cable telephony and wireless telephone service; Sun Media Corporation, the largest publisher of newspapers in Canada; Canoe Inc., operator of a network of English- and French-language Internet properties in Canada; Quebecor Media Network, provider of flyer printing and distribution services; TVA Group Inc., operator of the largest French-language over-the-air television network in Quebec, a number of specialty channels, and the English-language over-the-air station Sun TV; Nurun Inc., a major interactive technologies and communications agency with offices in Canada, the United States, Europe and Asia; magazine publisher TVA Publishing Inc.; book publishers and distributors Sogides Group Inc. and CEC Publishing Inc.; Archambault Group Inc. and TVA Films, companies engaged in the production, distribution and retailing of cultural products; Le SuperClub Videotron ltee, a DVD and console game rental and retail chain; and Quebecor MediaPages, publisher of print and online directories.
DEFINITIONS
Operating income
In its analysis of operating results, Quebecor defines operating income or loss, as reconciled to net income under Canadian generally accepted accounting principles ("Canadian GAAP"), as net income before amortization, financial expenses, gain on valuation and translation of financial instruments, charge for restructuring of operations and other special items, impairment of goodwill and intangible assets, income tax, non-controlling interest and the results of discontinued operations. Operating income as defined above is not a measure of results that is consistent with Canadian GAAP. 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 Canadian GAAP. Management believes that operating income is a meaningful measure of performance. Quebecor uses operating income in order to assess the performance of its investment in Quebecor Media. Quebecor's management and Board of Directors use this measure in evaluating its consolidated results as well as the results of Quebecor's operating segments. This measure eliminates the significant level of depreciation and amortization of tangible and intangible assets and is unaffected by the capital structure or investment activities of Quebecor and its segments. Operating income is also relevant because it is a significant component of Quebecor'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 Quebecor's segments. Quebecor also uses other measures that do reflect such costs, such as cash flows from segment operations and free cash flows from operations. In addition, measures such as operating income are commonly used by the investment community to analyze and compare the performance of companies in the industries in which Quebecor is engaged. Quebecor's definition of operating income may not be identical to similarly titled measures reported by other companies.
Table 2 below reconciles Quebecor's operating income with the closest Canadian GAAP measure.
Table 2
Reconciliation of the operating income measure used in this press release
to the net income measure used in the consolidated financial statements
(in millions of Canadian dollars)
Three months ended Nine months ended
September 30 September 30
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2009 2008 2009 2008
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Operating income:
Telecommunications $235.7 $201.0 $692.0 $579.8
News Media 44.9 52.6 130.2 172.3
Broadcasting 10.3 10.8 47.8 43.5
Leisure and
Entertainment 11.9 8.7 17.5 9.2
Interactive
Technologies and
Communications 1.0 1.0 2.7 2.1
Head Office (2.8) 3.3 (1.1) 4.1
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301.0 277.4 889.1 811.0
Amortization (86.8) (77.1) (257.2) (234.4)
Financial expenses (65.9) (74.0) (188.8) (227.0)
Gain on valuation and
translation of
financial instruments 31.1 4.4 57.3 43.6
Restructuring of
operations and other
special items (3.9) (2.0) (8.1) (4.3)
Impairment of goodwill
and intangible assets - - (13.6) -
Income tax (41.8) (38.8) (94.1) (109.5)
Non-controlling
interest (65.9) (44.2) (182.3) (131.1)
Income from
discontinued operations 1.6 - 1.6 383.3
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Net income $69.4 $45.7 $203.9 $531.6
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Adjusted income from continuing operating activities
Quebecor defines adjusted income from continuing operating activities, as reconciled to net income under Canadian GAAP, as net income before gain on valuation and translation of financial instruments, charge for restructuring of operations and other special items, impairment of goodwill and intangible assets, and the results of discontinued operations, net of income tax and non-controlling interest. Adjusted income from continuing operating activities as defined above is not a measure of results that is consistent with Canadian GAAP. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with Canadian GAAP. Management believes that adjusted income from continuing operating activities is a meaningful measure that provides an indication of the long-term profitability of Quebecor's operating activities by eliminating the impact of unusual or one-time items. Quebecor's definition of adjusted income from continuing operating activities may not be identical to similarly titled measures reported by other companies.
Table 3 provides a reconciliation of adjusted income from continuing operating activities to the net income measure used in the consolidated financial statements of Quebecor.
Table 3
Reconciliation of the adjusted income from continuing operating activities
measure used in this press release to the net income measure used in the
consolidated financial statements
(in millions of Canadian dollars)
Three months ended Nine months ended
September 30 September 30
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2009 2008 2009 2008
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Adjusted income from
continuing operating
activities $52.9 $42.5 $152.3 $118.6
Gain on valuation and
translation of
financial instruments 31.0 4.4 57.3 43.6
Restructuring of
operations and other
special items (3.9) (2.0) (8.1) (4.3)
Impairment of goodwill
and intangible assets - - (13.6) -
Income tax related to
Adjustments(1) 0.2 2.6 35.2 (3.5)
Non-controlling interest
related to adjustments (12.4) (1.8) (20.8) (6.1)
Income from discontinued
operations 1.6 - 1.6 383.3
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Net income $69.4 $45.7 $203.9 $531.6
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(1) Includes the impact of fluctuations in tax rates applicable to
adjusted items, either for statutory reasons or in connection with
tax planning arrangements.
Average Monthly Revenue per User
ARPU is an industry metric that Quebecor uses to measure its average cable, Internet, cable telephone and wireless telephone revenues per month per customer. ARPU is not a measurement that is consistent with Canadian GAAP and Quebecor's definition and calculation of ARPU may not be the same as identically titled measurements reported by other companies. Quebecor calculates ARPU by dividing its combined cable television, Internet access, cable telephone and wireless telephone revenues by the average number of 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 Three months ended Nine months ended
dollars, except for earnings September 30 September 30
per share data)
(unaudited)
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2009 2008 2009 2008
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(restated) (restated)
Revenues
Telecommunications $503.4 $452.6 $1,468.3 $1,330.7
News Media 241.5 283.1 755.7 879.4
Broadcasting 89.2 92.3 310.5 309.8
Leisure and Entertainment 80.0 75.2 212.3 201.5
Interactive Technologies
and Communications 21.2 21.6 67.5 65.6
Head Office and
inter-segment (16.9) (16.7) (60.3) (59.5)
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918.4 908.1 2,754.0 2,727.5
Cost of sales and selling and
administrative expenses 617.4 630.7 1,864.9 1,916.5
Amortization 86.8 77.1 257.2 234.4
Financial expenses 65.9 74.0 188.8 227.0
Gain on valuation and
translation of financial
instruments (31.1) (4.4) (57.3) (43.6)
Restructuring of operations
and other special items 3.9 2.0 8.1 4.3
Impairment of goodwill
and intangible assets - - 13.6 -
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Income before income taxes
and non-controlling interest 175.5 128.7 478.7 388.9
Income taxes:
Current 7.6 (1.1) 14.2 1.2
Future 34.2 39.9 79.9 108.3
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41.8 38.8 94.1 109.5
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133.7 89.9 384.6 279.4
Non-controlling interest (65.9) (44.2) (182.3) (131.1)
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Income from continuing
operations 67.8 45.7 202.3 148.3
Income from discontinued
operations 1.6 - 1.6 383.3
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Net income $69.4 $45.7 $203.9 $531.6
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Earnings per share
Basic
From continuing operations $1.06 $ 0.71 $3.15 $2.31
From discontinued
operations 0.02 - 0.02 5.96
Net income 1.08 0.71 3.17 8.27
Diluted
From continuing operations $1.05 $0.71 $3.14 $2.30
From discontinued
operations 0.02 - 0.02 5.96
Net income 1.07 0.71 3.16 8.27
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Weighted average number of
shares outstanding
(in millions) 64.3 64.3 64.3 64.3
Weighted average number of
diluted shares (in millions) 64.6 64.4 64.6 64.4
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QUEBECOR INC. AND ITS SUBSIDIARIES
SEGMENTED INFORMATION
(in millions of Canadian dollars) Three months ended Nine months ended
(unaudited) September 30 September 30
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2009 2008 2009 2008
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(restated) (restated)
Income from continuing
operations before
amortization, financial
expenses, gain on
valuation and translation
of financial instruments,
restructuring of operations
and other special items,
impairment of goodwill and
intangible assets,
income taxes and
non-controlling interest
Telecommunications $235.7 $201.0 $692.0 $579.8
News Media 44.9 52.6 130.2 172.3
Broadcasting 10.3 10.8 47.8 43.5
Leisure and Entertainment 11.9 8.7 17.5 9.2
Interactive Technologies and
Communications 1.0 1.0 2.7 2.1
Head Office (2.8) 3.3 (1.1) 4.1
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$301.0 $277.4 $889.1 $811.0
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Amortization
Telecommunications $63.1 $56.8 $187.2 $169.5
News Media 15.8 13.3 45.7 45.2
Broadcasting 3.6 3.6 10.7 10.2
Leisure and Entertainment 2.2 2.1 7.0 5.8
Interactive Technologies and
Communications 0.9 1.0 3.1 2.9
Head Office 1.2 0.3 3.5 0.8
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$86.8 $77.1 $257.2 $234.4
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Additions to property, plant
and equipment
Telecommunications $114.1 $82.1 $318.0 $265.3
News Media 3.4 20.8 20.2 63.8
Broadcasting 4.3 7.3 12.8 12.9
Leisure and Entertainment 0.4 1.9 1.5 5.6
Interactive Technologies and
Communications 0.4 1.2 2.6 2.6
Head Office 0.6 2.7 2.6 10.1
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$123.2 $116.0 $357.7 $360.3
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Additions to intangible assets
Telecommunications $23.8 $568.2 $68.8 $587.1
News Media 6.7 5.9 9.5 9.2
Broadcasting 1.2 0.7 4.1 2.5
Leisure and Entertainment 1.0 2.5 3.4 5.3
Interactive Technologies and
Communications 0.2 - 0.2 -
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$32.9 $ 577.3 $86.0 $604.1
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Externally acquired
intangible assets $22.2 $562.4 $52.2 $571.9
Internally generated
intangible assets 10.7 14.9 33.8 32.2
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$32.9 $577.3 $86.0 $604.1
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QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions of Canadian Three months ended Nine months ended
dollars) September 30 September 30
(unaudited)
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2009 2008 2009 2008
-------------------------------------------------------------------------
(restated) (restated)
Net income $69.4 $45.7 $203.9 $531.6
Other comprehensive income,
net of income taxes and
non-controlling interest:
Unrealized (loss) gain on
translation of net
investments in foreign
operations (0.3) (0.5) (1.1) 0.7
Gain (loss) on valuation
of derivative financial
instruments 16.3 15.5 27.4 (6.6)
Reclassification to income
of other comprehensive
loss related to
discontinued operations - - - 326.5
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16.0 15.0 26.3 320.6
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Comprehensive income $85.4 $60.7 $230.2 $852.2
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QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(in millions of Canadian dollars)
(unaudited)
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Accumulated
other Total
Capital Contributed Retained comprehensive shareholders'
stock surplus earnings loss equity
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Balance as of
December 31,
2007,
as previously
reported $346.6 $- $391.5 $(321.8) $416.3
Cumulative
effect of
changes in
accounting
policies - - (1.3) - (1.3)
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Balance as of
December 31,
2007, as
restated 346.6 - 390.2 (321.8) 415.0
Net income - - 531.6 - 531.6
Dividends - - (9.6) - (9.6)
Other
comprehensive
income - - - 320.6 320.6
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Balance as of
September 30,
2008, as
restated 346.6 - 912.2 (1.2) 1,257.6
Net loss - - (343.6) - (343.6)
Dividends - - (3.3) - (3.3)
Other
comprehensive
loss - - - (26.3) (26.3)
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Balance as of
December 31,
2008, as
restated 346.6 - 565.3 (27.5) 884.4
Net income - - 203.9 - 203.9
Dividends - - (9.6) - (9.6)
Related party
transactions - 4.8 - - 4.8
Other
comprehensive
income - - - 26.3 26.3
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Balance as of
September 30,
2009 $346.6 $4.8 $759.6 $(1.2) $1,109.8
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QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of Canadian Three months ended Nine months ended
dollars) September 30 September 30
(unaudited)
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2009 2008 2009 2008
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(restated) (restated)
Cash flows related to
Operations
Income from continuing
operations $67.8 $45.7 $202.3 $148.3
Adjustments for:
Amortization of property,
plant and equipment 73.8 67.2 220.3 205.3
Amortization of intangible
assets and other assets 13.0 9.9 36.9 29.1
Impairment of goodwill and
intangible assets - - 13.6 -
Gain on valuation and
translation of financial
instruments (31.1) (4.4) (57.3) (43.6)
Amortization of financing
costs and long-term debt
discount 2.7 2.4 7.5 6.7
Future income taxes 34.2 39.9 79.9 108.3
Non-controlling interest 65.9 44.2 182.3 131.1
Other 2.9 (2.2) 0.8 (0.1)
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229.2 202.7 686.3 585.1
Net change in non-cash
balances related to
operations 50.7 38.5 (74.1) (118.8)
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Cash flows provided by
continuing operations 279.9 241.2 612.2 466.3
Cash flows provided by
discontinued operations - - - 20.5
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Cash flows provided by
operations 279.9 241.2 612.2 486.8
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Cash flows related to
investing activities
Business acquisitions, net
of cash and cash
equivalents (2.1) (8.2) (4.6) (146.7)
Business disposals, net of
cash and cash equivalents 1.3 0.4 12.7 1.6
Additions to property,
plant and equipment (123.2) (116.0) (357.7) (360.3)
Additions to intangible
assets (32.9) (577.3) (86.0) (604.1)
Decrease in cash and cash
equivalents in trust - 218.0 - -
Other 0.9 1.7 1.9 0.8
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Cash flows used in
continuing investing
activities (156.0) (481.4) (433.7) (1,108.7)
Cash flows used in
discontinued investing
activities and cash
and cash equivalents of
WCP at the date of
deconsolidation - - - (117.7)
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Cash flows used in
investing activities (156.0) (481.4) (433.7) (1,226.4)
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Cash flows related to
financing activities
Net increase in bank
indebtedness 2.9 0.7 14.6 23.8
Issuance of long-term debt,
net of financing fees - 13.8 325.5 463.6
Net borrowings (repayments)
under revolving bank
facilities 7.9 245.7 (214.0) 190.9
Repayments of long-term debt (13.0) (8.4) (36.9) (21.3)
Dividends (3.2) (3.2) (9.6) (9.6)
Dividends paid to
non-controlling shareholders (9.1) (12.2) (27.4) (13.7)
Other 0.1 0.1 0.1 2.7
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Cash flows (used in)
provided by continuing
financing activities (14.4) 236.5 52.3 636.4
Cash flows provided by
discontinued financing
activities - - - 37.3
--------------------------------------------------------------------------
Cash flows (used in) provided
by financing activities (14.4) 236.5 52.3 673.7
--------------------------------------------------------------------------
Net increase (decrease) in
cash and cash equivalents 109.5 (3.7) 230.8 (65.9)
Effect of exchange rate
changes on cash and cash
equivalents denominated
in foreign currencies (0.2) 1.3 (0.6) 1.5
Cash and cash equivalents at
beginning of period 130.9 4.5 10.0 66.5
--------------------------------------------------------------------------
Cash and cash equivalents
at end of period $240.2 $2.1 $240.2 $2.1
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Cash and cash equivalents
consist of
Cash $63.1 $1.2 $63.1 $1.2
Cash equivalents 177.1 0.9 177.1 0.9
--------------------------------------------------------------------------
$240.2 $2.1 $240.2 $2.1
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Continuing operations
Cash interest payments $38.7 $56.1 $189.9 $200.1
Cash income tax payments
(net of refunds) 4.3 3.7 13.1 19.9
--------------------------------------------------------------------------
--------------------------------------------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in millions of Canadian dollars)
(unaudited)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
September 30 2009 December 31 2008
--------------------------------------------------------------------------
(restated)
Assets
Current assets
Cash and cash equivalents $240.2 $10.0
Cash and cash equivalents in trust 5.3 5.3
Accounts receivable 450.3 484.6
Income taxes 2.3 9.4
Inventories and programs,
broadcast and distribution rights 192.7 189.3
Prepaid expenses 40.2 31.5
Future income taxes 61.5 115.2
--------------------------------------------------------------------------
992.5 845.3
Property, plant and equipment 2,388.4 2,272.9
Intangible assets 1,027.5 985.9
Derivative financial instruments 106.0 317.9
Other assets 119.2 105.9
Future income taxes 11.3 12.3
Goodwill 3,506.2 3,516.7
--------------------------------------------------------------------------
$8,151.1 $8,056.9
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Liabilities and shareholders' equity
Current liabilities
Bank indebtedness $26.9 $12.3
Accounts payable and accrued charges 674.5 788.6
Deferred revenues 229.2 224.0
Income taxes 7.5 9.8
Current portion of long-term debt 153.5 42.3
--------------------------------------------------------------------------
1,091.6 1,077.0
Long-term debt 3,863.4 4,407.1
Derivative financial instruments 344.7 117.3
Exchangeable debentures and other liabilities 125.8 117.0
Future income taxes 460.0 469.1
Non-controlling interest 1,155.8 985.0
Shareholders' equity
Capital stock 346.6 346.6
Contributed surplus 4.8 -
Retained earnings 759.6 565.3
Accumulated other comprehensive loss (1.2) (27.5)
--------------------------------------------------------------------------
1,109.8 884.4
--------------------------------------------------------------------------
$8,151.1 $8,056.9
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Contacts:
Quebecor Inc.
Jean-Francois Pruneau
Vice President, Finance
514-380-4144
Quebecor Inc.
Isabelle Dessureault
Vice President, Public Affairs
514-380-7501
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