Quebecor Inc. reports consolidated results for second quarter 2018
MONTRÉAL, Aug. 9, 2018 /PRNewswire/ - Quebecor Inc. ("Quebecor" or the "Corporation") today reported its consolidated financial results for the second quarter of 2018. Quebecor consolidates the financial results of Quebecor Media Inc. ("Quebecor Media"), a subsidiary it has wholly owned since June 22, 2018.
On May 11 and June 22, 2018, Quebecor Media repurchased a total of 16,064,215 of its Common Shares held by CDP Capital d'Amérique Investissements inc. ("CDP Capital"), a subsidiary of the Caisse de dépôt et placement du Québec, for a total aggregate purchase price of $1.54 billion, paid in cash. On June 22, 2018, Quebecor purchased 1,564,696 Common Shares of Quebecor Media held by CDP Capital in consideration of the issuance of convertible debentures in the principal amount of $150.0 million, convertible into Class B Subordinate Voting Shares ("Class B Shares") of Quebecor. Upon completion of these transactions, the Corporation's interest in Quebecor Media increased from 81.53% to 100.0%.
Second quarter 2018 highlights
-- Revenues: $1.04 billion, up $4.9 million (0.5%) from the second quarter
of 2017.
-- Adjusted EBITDA((1)) $417.1 million, up $12.8 million (3.2%). Excluding
the impact of IFRS 15, adjusted EBITDA was $414.2 million in the second
quarter of 2018, an $18.9 million (4.8%) increase.
-- Net income attributable to shareholders: $41.3 million ($0.18 per basic
share) in the second quarter of 2018, compared with $137.8 million
($0.57 per basic share) in the same period of 2017, an unfavourable
variance of $96.5 million ($0.39 per basic share), including the $123.4
million combined unfavourable impact of the gain on the sale of a
spectrum licence recorded in the second quarter of 2017 and the variance
in losses on embedded derivatives related to convertible debentures.
-- Adjusted income from continuing operating activities(2) $106.2 million
($0.45 per basic share) in the second quarter of 2018, compared with
$88.6 million ($0.37 per basic share) in the same period of 2017, an
increase of $17.6 million ($0.08 per basic share) or 19.9%. Excluding
the impact of IFRS 15, adjusted income from continuing operating
activities was $104.3 million, a $21.1 million (25.4%) increase.
-- The Telecommunications segment grew its revenues by $20.6 million (2.5%)
and its adjusted EBITDA by $24.8 million (6.2%) in the second quarter of
2018. Excluding the impact of IFRS 15, segment adjusted EBITDA was up
$30.9 million (7.9%).
-- Videotron Ltd. ("Videotron") significantly increased its revenues from
mobile telephony ($14.9 million or 12.9%), Internet access ($14.9
million or 5.8%) and the Club illico over-the-top video service ("Club
illico") ($1.8 million or 18.4%) in the second quarter of 2018.
-- Videotron's total average billing per unit ("ABPU")(3) was $49.68 in the
second quarter of 2018, compared with $48.12 in the same period of 2017,
a $1.56 (3.2%) increase. Mobile ABPU was $53.70 in the second quarter of
2018, compared with $53.32 in the same period of 2017, a $0.38 (0.7%)
increase.
-- Subscriber connections to the mobile telephony service increased by
31,900 (3.0%) and Club illico memberships increased by 8,500 (2.2%) in
the second quarter of 2018.
_____________________________
1 See "Adjusted EBITDA" under "Definitions."
2 See "Adjusted income from continuing operating activities" under
"Definitions."
3 See "Key performance indicators" under "Definitions."
"Quebecor achieved a major milestone in its history in the second quarter of 2018 by completing the repurchase of all the shares of Quebecor Media held by CDP Capital, concluding the process begun in 2012," noted Pierre Karl Péladeau, President and Chief Executive Officer of Quebecor. "Quebecor therefore became the sole owner of Quebecor Media in the second quarter. With access to all the cash flows generated by the subsidiary, the Corporation will now be better equipped to seize business opportunities as they arise, to achieve its objectives with respect to its dividend payment policy, and to take full control of its development projects. Over the past 18 years, CDP Capital has been a top-notch financial partner that has steadfastly supported the Corporation through every stage of its development. I thank the people at the Caisse de dépôt et placement du Québec for their effective support and counsel over the years, and its presidents, Jean Claude Scraire and Michael Sabia.
"On the financial front, Quebecor's revenues and adjusted EBITDA increased again in the second quarter of 2018, strongly stimulated by Videotron's performance. Quebecor also posted an increase of $17.6 million or 19.9% in its adjusted income from continuing operating activities, reflecting the improvement in its operating profitability as expressed by adjusted EBITDA, combined with the favourable leverage effect on results produced by the repurchase of shares previously held by CDP Capital," said Mr. Péladeau.
"Once again, Videotron's growth was driven by its flagship products, including mobile telephony and Internet access," commented Manon Brouillette, President and Chief Executive Officer of Videotron. "During the 12-month period ended June 30, 2018, the number of subscriber connections to the mobile telephony service increased by 125,900 or 13.2%. 'Bring-your-own-device' plans accounted for more than 35% of new mobile activations during the period, which helped reduce customer acquisition costs and boost the profitability of mobile services, despite slower ABPU growth resulting from those plans. Videotron has also added 54,300 subscribers (16.1%) to Club illico over the past 12 months. Club illico's exclusive series have earned recognition in the industry for their originality and quality, picking up 16 nominations for Gémeaux awards this year. The awards ceremony will be held in September 2018 and four original series broadcast on Club illico and developed in collaboration with Quebecor Content are in the running: L'Académie, Blue Moon, La Dérape, and Pablo Escobar raconté par son fils.
"Regarding business development, Videotron continued investing in its Internet Protocol Television project, based on our partner Comcast Corporation's XFINITY X1 platform. Ultimately, it will enable us to deliver the best available television experience to our customers. In the business services segment, Videotron recently launched its new Cloud Communications service, which combines the power of landlines and mobile through a unified offering. We are confident that this complementary service will enable us to expand our business customer base and retain existing customers," Manon Brouillette concluded.
"In the Media segment, despite strong ratings for the National Hockey League playoffs on TVA Sports, the Montréal Canadiens' failure to qualify for the playoffs did lead to reduced revenues," commented France Lauzière, President and Chief Executive Officer of TVA Group Inc. "TVA Network's financial performance also declined as a result of the decrease in advertising revenues. We have responded with measures to cut operating expenses, which have not yet yielded their full expected effects. TVA Network's market share was stable at 23.8% (Source: Numeris - French Quebec, April 1 to June 30, 2018, Mon-Sun, 2 a.m.- 2 a.m., t2+) while the combined market share of the specialty channels increased by 0.5 points. The 24-hour news channel LCN was up 1.2 points or 26.7%."
"At a time when we are seeing a proliferation of transactions between telecoms, media organizations and content providers around the world, demonstrating the necessity and success of the convergence strategy Quebecor embraced as far back as the early 2000s, the Corporation remains very strongly positioned for growth and profitability," Pierre Karl Péladeau added.
Table 1
Quebecor second quarter financial highlights, 2014 to 2018
(in millions of Canadian dollars, except per share data)
=======================================================
2018 2017 2016 2015 2014
---- ---- ---- ---- ----
Revenues $1,043.5 $1,038.6 $1,003.5 $969.8 $898.3
Adjusted EBITDA 417.1 404.3 374.9 359.8 365.5
Income from continuing operating
activities attributable to
shareholders 41.3 131.0 18.5 87.0 56.1
Net income (loss) attributable to
shareholders 41.3 137.8 18.5 77.9 (51.7)
Adjusted income from continuing
operating activities 106.2 88.6 78.6 72.3 59.0
Per basic share:
Income from continuing operating
activities attributable to
shareholders 0.18 0.54 0.08 0.35 0.22
Net income (loss) attributable
to shareholders 0.18 0.57 0.08 0.32 (0.22)
Adjusted income from continuing
operating activities 0.45 0.37 0.32 0.29 0.24
================================ ==== ==== ==== ==== ====
Changes in Accounting Policies
On January 1, 2018, the Corporation adopted on a fully retroactive basis the new rules under IFRS 15, Revenue from Contracts with Customers, which specify how and when an entity should recognize revenue. The adoption of IFRS 15 had significant impacts on the consolidated financial statements, mainly in the Telecommunications segment, with regards to the timing of the recognition of its revenues, the classification of its revenues, as well as the capitalization of costs. Among other impacts, the adoption of IFRS 15 resulted in an increase in the revenue from the device sale and in a decrease in the mobile service revenue recognized over the contract term. As well, costs to obtain a contract and connection costs are now fully amortized as operating expenses over the contract term or over the period of time the customer is expected to maintain its service. 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 second quarter of 2018 and under "Changes in Accounting Policies" in Quebecor's Management Discussion and Analysis for the same period. As well, to clarify the impact of IFRS 15 on non-IFRS measures, columns presenting the non-IFRS measures without application of IFRS 15 have been added to the tables showing the calculation and reconciliation of non-IFRS measures, as presented under "Definitions" below.
Tables 2 and 3 below present segmented revenues and adjusted EBITDA for the last eight quarters, restated to reflect retroactive application of IFRS 15.
Table 2
Quebecor's segmented revenues for the past eight quarters
(in millions of Canadian dollars)
================================
Q2-2018 Q1-2018 Q4-2017 Q3-2017 Q2-2017 Q1-2017 Q4-2016 Q3-2016
------- ------- ------- ------- ------- ------- ------- -------
Telecommunications $847.2 $823.4 $846.3 $829.6 $826.6 $805.0 $822.4 $813.1
Media 186.5 173.2 199.5 186.8 199.5 184.1 222.2 178.9
Sports and Entertainment 36.9 37.2 50.3 56.6 36.0 38.3 54.1 51.0
Head Office and intersegment (27.1) (27.1) (32.0) (32.4) (23.5) (25.9) (31.1) (25.3)
---------------------------- ----- ----- ----- ----- ----- ----- ----- -----
Total $1,043.5 $1,006.7 $1,064.1 $1,040.6 $1,038.6 $1,001.5 $1,067.6 $1,017.7
===== ======== ======== ======== ======== ======== ======== ======== ========
Table 3
Quebecor's segmented adjusted EBITDA (negative adjusted EBITDA) for the past eight quarters
(in millions of Canadian dollars)
================================
Q2-2018 Q1-2018 Q4-2017 Q3-2017 Q2-2017 Q1-2017 Q4-2016 Q3-2016
------- ------- ------- ------- ------- ------- ------- -------
Telecommunications $422.6 $410.5 $396.9 $390.2 $397.8 $383.9 $385.9 $388.9
Media (0.7) (1.1) 22.4 35.7 13.4 (2.2) 25.0 24.4
Sports and Entertainment (2.0) (2.1) 2.3 8.3 (3.6) (0.8) (1.3) 8.8
Head Office (2.8) 0.1 (1.6) (2.2) (3.3) (9.0) 1.0 (7.0)
----------- ---- --- ---- ---- ---- ---- --- ----
Total $417.1 $407.4 $420.0 $432.0 $404.3 $371.9 $410.6 $415.1
===== ====== ====== ====== ====== ====== ====== ====== ======
Changes to key performance indicators
Following adoption of IFRS 15, and to reflect changes in its activities and services, including the growth of its mobile telephony business, the Corporation reviewed the nature and definition of its key performance indicators. Accordingly, average monthly revenue per user ("ARPU") has been abandoned and replaced by a new metric, ABPU. ABPU will be used henceforth to measure the performance of mobile activities and the performance of all activities combined. The definition of the new ABPU metric is provided under "Key Performance Indicators" below. The definition of revenue-generating unit ("RGU") has also been added in the same section; the nature and calculation of the metric are unchanged.
Table 4 presents the new ABPU metric for mobile activities and all activities combined for the last eight quarters.
Table 4
Videotron's ABPU for the past eight quarters
(in Canadian dollars)
====================
Q2-2018 Q1-2018 Q4-2017 Q3-2017 Q2-2017 Q1-2017 Q4-2016 Q3-2016
------- ------- ------- ------- ------- ------- ------- -------
Mobile ABPU $53.70 $53.25 $53.56 $53.34 $53.32 $52.64 $51.96 $52.61
Total ABPU $49.68 $48.82 $48.90 $48.50 $48.12 $47.41 $47.49 $47.03
========== ====== ====== ====== ====== ====== ====== ====== ======
2018/2017 second quarter comparison
Revenues: $1.04 billion, a $4.9 million (0.5%) increase.
-- Revenues increased in Telecommunications ($20.6 million or 2.5% of
segment revenues) and in Sports and Entertainment ($0.9 million or
2.5%).
-- Revenues decreased in Media ($13.0 million or -6.5%).
Adjusted EBITDA: $417.1 million, a $12.8 million (3.2%) increase.
-- Adjusted EBITDA increased in Telecommunications ($24.8 million or 6.2%
of segment adjusted EBITDA). There were favourable variances in Sports
and Entertainment ($1.6 million or 44.4%) and at Head Office ($0.5
million).
-- There was an unfavourable variance in Media ($14.1 million).
-- The change in the fair value of Quebecor Media stock options resulted in
a $1.8 million favourable variance in the stock?based compensation
charge in the second quarter of 2018 compared with the same period of
2017. The change in the fair value of Quebecor stock options and in the
value of Quebecor stock-price-based share units resulted in a $2.2
million unfavourable variance in the Corporation's stock-based
compensation charge in the second quarter of 2018.
Net income attributable to shareholders: $41.3 million ($0.18 per basic share) in the second quarter of 2018, compared with $137.8 million ($0.57 per basic share) in the same period of 2017, an unfavourable variance of $96.5 million ($0.39 per basic share).
-- The main unfavourable variances were:
-- $87.8 million gain on the sale of a spectrum licence recognized in
the second quarter of 2017, including $43.9 million without any tax
consequences;
-- $36.5 million unfavourable variance in gains and losses on valuation
and translation of financial instruments, including $38.4 million
without any tax consequences;
-- $13.3 million increase in the income tax expense;
-- $8.4 million unfavourable variance in income from discontinued
operations;
-- $6.9 million increase in the depreciation and amortization charge.
-- The main favourable variances were:
-- $33.0 million favourable variance in non-controlling interest;
-- $12.8 million increase in adjusted EBITDA;
-- $9.8 million favourable variance in the charge for restructuring of
operations, litigation and other items.
Adjusted income from continuing operating activities: $106.2 million ($0.45 per basic share) in the second quarter of 2018, compared with $88.6 million ($0.37 per basic share) in the same period of 2017, an increase of $17.6 million ($0.08 per basic share) or 19.9%.
2018/2017 year-to-date comparison
Revenues: $2.05 billion, a $10.1 million (0.5%) increase.
-- Revenues increased in Telecommunications ($39.0 million or 2.4% of
segment revenues).
-- Revenues decreased in Media ($23.9 million or -6.2%) and in Sports and
Entertainment ($0.2 million or ?0.3%).
Adjusted EBITDA: $824.5 million, a $48.3 million (6.2%) increase.
-- Adjusted EBITDA increased in Telecommunications ($51.4 million or 6.6%
of segment adjusted EBITDA). There were favourable variances in Sports
and Entertainment ($0.3 million) and at Head Office ($9.6 million). The
change at Head Office was mainly due to lower compensation costs.
-- There was an unfavourable variance in Media ($13.0 million).
-- The change in the fair value of Quebecor Media stock options resulted in
a $1.0 million favourable variance in the stock?based compensation
charge in the first half of 2018 compared with the same period of 2017.
The change in the fair value of Quebecor stock options and in the value
of Quebecor stock-price-based share units resulted in a $1.1 million
favourable variance in the Corporation's stock?based compensation charge
in the first half of 2018.
Net income attributable to shareholders: $98.0 million ($0.42 per basic share) in the first half of 2018, compared with $141.7 million ($0.58 per basic share) in the same period of 2017, a decrease of $43.7 million ($0.16 per basic share).
-- The main unfavourable variances were:
-- $87.8 million gain on the sale of a spectrum licence recognized in
the first half of 2017, including $43.9 million without any tax
consequences;
-- $25.3 million increase in the income tax expense;
-- $17.0 million increase in the depreciation and amortization charge;
-- $8.4 million unfavourable variance in income from discontinued
operations;
-- $7.6 million unfavourable variance in the charge for restructuring
of operations, litigation and other items.
-- The main favourable variances were:
-- $48.3 million increase in adjusted EBITDA;
-- $30.9 million favourable variance in non-controlling interest;
-- $15.6 million favourable variance in the loss on debt refinancing;
-- $6.3 million favourable variance in losses on valuation and
translation of financial instruments, including $6.1 million without
any tax consequences.
Adjusted income from continuing operating activities: $195.8 million ($0.83 per basic share) in the first half of 2018, compared with $163.5 million ($0.68 per basic share) in the same period of 2017, an increase of $32.3 million ($0.15 per basic share) or 19.8%.
Financial transactions
-- In the second quarter of 2018, the Corporation increased its interest in
Quebecor Media from 81.5% to 100.0% by means of the following
transactions:
-- On May 11 and June 22, 2018, Quebecor Media repurchased for
cancellation a total of 16,064,215 of its Common Shares held by CDP
Capital for a total aggregate purchase price of $1.54 billion, paid
in cash. Available cash and drawings on Videotron's revolving credit
facility were used to finance the transaction.
-- On June 22, 2018, Quebecor purchased 1,564,696 Common Shares of
Quebecor Media held by CDP Capital in consideration of the issuance
of $150.0 million aggregate principal amount of convertible
debentures of Quebecor to CDP Capital. The debentures bear interest
at an annual rate of 4.00% and mature in June 2024. The convertible
debentures are convertible into Class B Shares in accordance with
the terms of the trust indenture, subject to a floor price of $26.85
per share (that is, a maximum number of approximately 5,586,592
Class B Shares of Quebecor corresponding to a ratio of $150.0
million to the floor price) and a ceiling price of $33.5625 per
share (that is, a minimum number of approximately 4,469,274 Class B
Shares of Quebecor corresponding to a ratio of $150.0 million to the
ceiling price), subject to adjustments in accordance with the terms
of the trust indenture. The other terms and conditions of the
convertible debentures are substantially consistent with the terms
of the convertible debentures issued under the Corporation's trust
agreement dated October 11, 2012, as amended.
-- During the first half of 2018, the Corporation issued a notice regarding
the redemption of convertible debentures in the aggregate principal
amount of $87.5 million. The redemption price was paid upon redemption
of the debentures.
Normal course issuer bid
On August 8, 2018, 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 7,800,000 Class B Shares, representing approximately 5.0% of issued and outstanding Class B Shares as of August 1, 2018. The purchases can be made from August 15, 2018 to August 14, 2019 at prevailing market prices on the open market through the facilities of the Toronto Stock Exchange ("TSX") or other alternative trading systems. All shares purchased under the bid will be cancelled. As of August 1, 2018, 77,289,444 Class A Shares and 156,117,684 Class B Shares were issued and outstanding.
The average daily trading volume of the Class A Shares and Class B Shares of the Corporation between February 1, 2018 and July 31, 2018 on the Toronto Stock Exchange was 776 Class A Shares and 401,419 Class B Shares. Consequently, the Corporation will be authorized to purchase a maximum of 1,000 Class A Shares and 100,354 Class B Shares during the same trading day, pursuant to its normal course issuer bid.
The Corporation believes that the repurchase of these shares under this normal course issuer bid is in the best interests of the Corporation and its shareholders.
Between August 15, 2017 and July 31, 2018, of the 1,000,000 Class A Shares and 8,400,000 Class B Shares it was authorized to repurchase under its previous normal course issuer bid, the Corporation repurchased no Class A Shares and 8,400,000 Class B Shares at a weighted average price of $24.02452 per share on the open market through the facilities of the Toronto Stock Exchange or other alternative trading systems.
On August 9, 2018, the Corporation announced that on or around August 10, 2018 it will enter into an automatic securities purchase plan ("the plan") with a designated broker under its normal course issuer bid, whereby shares may be repurchased under the plan at times when such purchases would otherwise be prohibited pursuant to regulatory restrictions or self-imposed blackout periods. The plan received prior approval from the TSX. It will come into effect on August 15, 2018 and terminate on the same date as the normal course issuer bid.
Under the plan, before entering a self-imposed blackout period, the Corporation may, but is not required to, ask the designated broker to make purchases under the normal course issuer bid. Such purchases shall be made at the discretion of the designated broker, within parameters established by the Corporation prior to the blackout periods. Outside the blackout periods, purchases will be made at the discretion of the Corporation's management.
In the first half of 2018, the Corporation purchased and cancelled 4,909,900 Class B Shares for a total cash consideration of $118.0 million (1,441,600 Class B Shares for a total cash consideration of $29.3 million in the first half of 2017). The $108.6 million excess of the purchase price over the carrying value of the repurchased Class B Shares was recorded as a reduction in retained earnings ($26.6 million in the first half of 2017).
In the second quarter of 2018, 100,000 Class B Shares were issued upon exercise of stock options for a cash consideration of $1.3 million. As a result of this transaction, contributed surplus was increased by $1.2 million and the stock-based compensation liability was reduced by the same amount.
Dividend
On August 8, 2018, the Board of Directors of Quebecor declared a quarterly dividend of $0.055 per share on its Class A and Class B Shares, payable on September 18, 2018 to shareholders of record at the close of business on August 24, 2018. 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 second quarter 2018 results, please refer to the Management Discussion and Analysis and consolidated financial statements of Quebecor, available on the Corporation's website at 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 second quarter 2018 results on August 9, 2018, at 9:30 a.m. EDT. There will be a question period reserved for financial analysts. To access the conference call, please dial 1 877 293?8052, access code for participants 48006#. A tape recording of the call will be available from August 9 to November 9, 2018 by dialling 1 877 293?8133, conference number 1229124, access code for participants 48006#. 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), 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, 2017.
The forward-looking statements in this press release reflect Quebecor's expectations as of August 9, 2018, 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.
Québec-based Quebecor (TSX: QBR.A, QBR.B) 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
On a transitional basis and to clarify the impact of retroactive adoption of IFRS 15, as described under "Changes in Accounting Policies," columns have been added to the calculation and reconciliation tables for non-International Financial Reporting Standards ("IFRS") financial measures. Accordingly, those tables also show the calculation and reconciliation of non-IFRS measures in 2018 and 2017 based on the former accounting policies with respect to revenue recognition, i.e. without the adjustments required by adoption of IFRS 15.
Adjusted EBITDA (formerly "Adjusted operating income")
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, loss on valuation and translation of financial instruments, restructuring of operations, litigation and other items, gain on sale of spectrum licences, loss on debt refinancing, income tax, and income from discontinued operations. Adjusted EBITDA as defined above is not a measure of results that is consistent with IFRS. It is not intended to be regarded as an alternative to 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 5 below provides a reconciliation of adjusted EBITDA to net income as disclosed in Quebecor's condensed consolidated financial statements.
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
(in millions of Canadian dollars)
With adoption of IFRS 15(1) Without IFRS 15(2)
Three months ended Six months ended Three months ended Six months ended
June 30 June 30 June 30
June 30
=== ===
2018 2017 2018 2017 2018 2017 2018 2017
---- ---- ---- ---- ---- ---- ---- ----
Adjusted EBITDA (negative adjusted EBITDA):
Telecommunications $422.6 $397.8 $833.1 $781.7 $419.7 $388.8 $837.6 $765.9
Media (0.7) 13.4 (1.8) 11.2 (0.7) 13.4 (1.8) 11.2
Sports and Entertainment (2.0) (3.6) (4.1) (4.4) (2.0) (3.6) (4.1) (4.4)
Head Office (2.8) (3.3) (2.7) (12.3) (2.8) (3.3) (2.7) (12.3)
----------- ---- ---- ---- ----- ---- ---- ---- -----
417.1 404.3 824.5 776.2 414.2 395.3 829.0 760.4
Depreciation and amortization (180.2) (173.3) (360.1) (343.1) (180.2) (173.3) (360.1) (343.1)
Financial expenses (78.1) (78.9) (154.7) (156.0) (78.1) (78.9) (154.7) (156.0)
Loss on valuation and translation of financial
instruments (75.6) (39.1) (105.2) (111.5) (75.6) (39.1) (105.2) (111.5)
Restructuring of operations, litigation and other
items (2.0) (11.8) (8.5) (0.9) (2.0) (11.8) (8.5) (0.9)
Gain on sale of spectrum licences 00039/03/right/ 87.8 00039/07/right/ 87.8 00039/11/right/ 87.8 00039/15/right/
2500/bottom/? 2500/bottom/? 2500/bottom/? 2500/bottom/? 87.8
Loss on debt refinancing 00041/03/right/ 00041/05/right/ 00041/07/right/ (15.6) 00041/11/right/ 00041/13/right/ 00041/15/right/
2500/bottom/? 2500/bottom/? 2500/bottom/? 2500/bottom/? 2500/bottom/? 2500/bottom/? (15.6)
Income taxes (28.4) (15.1) (67.6) (42.3) (28.4) (15.1) (67.6) (42.3)
Income from discontinued operations 00045/03/right/ 8.4 00045/07/right/ 8.4 00045/11/right/ 8.4 00045/15/right/
2500/bottom/? 2500/bottom/? 2500/bottom/? 2500/bottom/? 8.4
Impact of IFRS 15 00047/03/right/ 00047/05/right/ 00047/07/right/ 00047/09/right/
2500/bottom/? 2500/bottom/? 2500/bottom/? 2500/bottom/? 2.9 9.0 (4.5) 15.8
----------------- ------------- ------------- ------------- ------------- --- --- ---- ----
Net income $52.8 $182.3 $128.4 $203.0 $52.8 $182.3 $128.4 $203.0
================================================================== ===== ====== ====== ====== ===== ====== ====== ======
(1) Non-IFRS measures presented in
these columns are calculated
based on new IFRS 15 rules
adopted by the Corporation on a
retroactive basis and described
under "Changes in Accounting
Policies."
(2) Non-IFRS measures presented in
these columns are calculated
based on the Corporation's
former accounting policies with
respect to revenue recognition,
i.e. without the impact of IFRS
15 adoption.
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 loss on valuation and translation of financial instruments, restructuring of operations, litigation and other items, gain on sale of spectrum licences, loss on debt refinancing, net of income tax related to adjustments and net income attributable to non-controlling interest related to adjustments, and before the income from discontinued operations attributable to shareholders. Adjusted income from continuing operating activities, as defined above, is not a measure of results that is consistent with IFRS. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The Corporation uses adjusted income from continuing operating activities to analyze trends in the performance of its businesses. The above-listed items are excluded from the calculation of this measure because they impair the comparability of financial results. Adjusted income from continuing operating activities is more representative for forecasting income. The Corporation's definition of adjusted income from continuing operating activities may not be identical to similarly titled measures reported by other companies.
Table 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)
With adoption of IFRS 15(1) Without IFRS 15(2)
Three months ended Six months ended Three months ended Six months ended
June 30 June 30
June 30 June 30
======= =======
2018 2017 2018 2017 2018 2017 2018 2017
---- ---- ---- ---- ---- ---- ---- ----
Adjusted income from
continuing operating
activities $106.2 $88.6 $195.8 $163.5 $104.3 $83.2 $198.3 $154.0
Loss on valuation and
translation of financial
instruments (75.6) (39.1) (105.2) (111.5) (75.6) (39.1) (105.2) (111.5)
Restructuring of operations,
litigation and other items (2.0) (11.8) (8.5) (0.9) (2.0) (11.8) (8.5) (0.9)
Gain on sale of spectrum 00025/03/right/ 87.8 00025/07/right/ 87.8 00025/11/right/ 87.8 00025/15/right/
licences 2300/bottom/? 2500/bottom/? 2300/bottom/? 2450/bottom/? 87.8
Loss on debt refinancing 00027/03/right/ 00027/05/right/ 00027/07/right/ (15.6) 00027/11/right/ 00027/13/right/ 00027/15/right/
2300/bottom/? 2250/bottom/? 2500/bottom/? 2300/bottom/? 2250/bottom/? 2450/bottom/? (15.6)
Income taxes related to
adjustments(3) 12.4 26.3 14.5 32.4 12.4 26.3 14.5 32.4
Net income attributable to
non?controlling interest
related to adjustments 0.3 (20.8) 1.4 (20.8) 0.3 (20.8) 1.4 (20.8)
Discontinued operations 00033/03/right/ 6.8 00033/07/right/ 6.8 00033/11/right/ 6.8 00033/15/right/
2300/bottom/? 2500/bottom/? 2300/bottom/? 2450/bottom/? 6.8
Impact of IFRS 15 00035/03/right/ 00035/05/right/ 00035/07/right/ 00035/09/right/
2300/bottom/? 2250/bottom/? 2500/bottom/? 2500/bottom/? 1.9 5.4 (2.5) 9.5
----------------- ---------------- ---------------- ---------------- ---------------- --- --- ---- ---
Net income
attributable to
shareholders $41.3 $137.8 $98.0 $141.7 $41.3 $137.8 $98.0 $141.7
================ ===== ====== ===== ====== ===== ====== ===== ======
(1) Non-IFRS measures presented in
these columns are calculated
based on new IFRS 15 rules
adopted by the Corporation on a
retroactive basis and described
under "Changes in Accounting
Policies."
(2) Non-IFRS measures presented in
these columns are calculated
based on the Corporation's
former accounting policies with
respect to revenue recognition,
i.e. without the impact of IFRS
15 adoption.
3 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.
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 Six months ended
(unaudited) June 30 June 30
========== ======= =======
2018 2017 2018 2017
---- ---- ---- ----
(restated) (restated)
Revenues $1,043.5 $1,038.6 $2,050.2 $2,040.1
Employee costs 182.4 182.0 362.4 369.1
Purchase of goods and services 444.0 452.3 863.3 894.8
Depreciation and amortization 180.2 173.3 360.1 343.1
Financial expenses 78.1 78.9 154.7 156.0
Loss on valuation and translation of financial
instruments 75.6 39.1 105.2 111.5
Restructuring of operations, litigation and other
items 2.0 11.8 8.5 0.9
Gain on sale of spectrum licences - (87.8) - (87.8)
Loss on debt refinancing - - - 15.6
--- --- --- ----
Income before income taxes 81.2 189.0 196.0 236.9
Income taxes (recovery):
Current 42.9 8.7 102.7 12.1
Deferred (14.5) 6.4 (35.1) 30.2
28.4 15.1 67.6 42.3
---- ---- ---- ----
Income from continuing operations 52.8 173.9 128.4 194.6
Income from discontinued operations - 8.4 - 8.4
--- --- --- ---
Net income $52.8 $182.3 $128.4 $203.0
===== ====== ====== ======
Income from continuing operations attributable to
Shareholders $41.3 $131.0 $98.0 $134.9
Non-controlling
interests 11.5 42.9 30.4 59.7
Net income attributable to
Shareholders $41.3 $137.8 $98.0 $141.7
Non-controlling
interests 11.5 44.5 30.4 61.3
Earnings per share attributable to shareholders
Basic:
From continuing
operations $0.18 $0.54 $0.42 $0.55
From
discontinued
operations - 0.03 - 0.03
Net income 0.18 0.57 0.42 0.58
==== ==== ==== ====
Diluted:
From continuing
operations $0.18 $0.54 $0.41 $0.55
From
discontinued
operations - 0.03 - 0.03
Net income 0.18 0.57 0.41 0.58
==== ==== ==== ====
Weighted average number of shares outstanding (in
millions) 233.5 242.8 234.7 243.0
Weighted average number of diluted shares (in
millions) 239.4 243.2 240.6 243.4
===== ===== ===== =====
QUEBECOR INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions of Canadian dollars) Three months ended Six months ended
(unaudited) June 30 June 30
========== ======= =======
2018 2017 2018 2017
---- ---- ---- ----
(restated) (restated)
Income from continuing operations $52.8 $173.9 $128.4 $194.6
Other comprehensive (loss) income from continuing
operations:
Items that may be
reclassified to
income:
Cash flow
hedges:
(Loss) gain on valuation of
derivative financial
instruments (1.3) 40.3 (44.4) 28.0
Deferred income taxes (1.7) 21.2 2.1 25.0
---- ---- --- ----
(3.0) 61.5 (42.3) 53.0
Comprehensive income from continuing operations 49.8 235.4 86.1 247.6
Income from discontinued operations - 8.4 - 8.4
--- --- --- ---
Comprehensive income $49.8 $243.8 $86.1 $256.0
===== ====== ===== ======
Comprehensive income from continuing operations
attributable to
Shareholders $38.6 $181.0 $63.3 $178.0
Non-controlling
interests 11.2 54.4 22.8 69.6
Comprehensive income attributable to
Shareholders $38.6 $187.8 $63.3 $184.8
Non-controlling
interests 11.2 56.0 22.8 71.2
QUEBECOR INC.
SEGMENTED INFORMATION
(in millions of
Canadian dollars)
(unaudited)
==========
Three months ended June 30, 2018
================================
Sports Head
and office
Telecommuni- Enter- and Inter-
cations Media tainment segments Total
------- ----- -------- -------- -----
Revenues $847.2 $186.5 $36.9 $(27.1) $1,043.5
Employee costs 97.6 62.9 9.7 12.2 182.4
Purchase of goods
and services 327.0 124.3 29.2 (36.5) 444.0
----------------- ----- ----- ---- ----- -----
Adjusted EBITDA(1) 422.6 (0.7) (2.0) (2.8) 417.1
Depreciation and
amortization 180.2
Financial expenses 78.1
Loss on valuation
and translation
of financial
instruments 75.6
Restructuring of
operations,
litigation and
other items 2.0
---------------- ---
Income before
income taxes $81.2
============= =====
Additions to
property, plant
and equipment $122.7 $5.6 $0.3 $5.0 $133.6
Additions to
intangible assets 36.6 1.0 0.8 0.2 38.6
================== ==== === === === ====
Three months ended June 30, 2017
(restated)
=========
Sports Head
and office
Telecommuni- Enter- and Inter-
cations Media tainment segments Total
------- ----- -------- -------- -----
Revenues $826.6 $199.5 $36.0 $(23.5) $1,038.6
Employee costs 98.3 63.0 9.5 11.2 182.0
Purchase of goods
and services 330.5 123.1 30.1 (31.4) 452.3
----------------- ----- ----- ---- ----- -----
Adjusted EBITDA(1) 397.8 13.4 (3.6) (3.3) 404.3
Depreciation and
amortization 173.3
Financial expenses 78.9
Loss on valuation
and translation
of financial
instruments 39.1
Restructuring of
operations,
litigation and
other items 11.8
Gain on sale of
spectrum licences (87.8)
------------------ -----
Income before
income taxes $189.0
============= ======
Additions to
property, plant
and equipment $147.2 $6.7 $0.5 $ - $154.4
Additions to
intangible assets 24.8 1.4 1.2 0.6 28.0
================== ==== === === === ====
Six months ended June 30,
2018
=========================
Sports Head
and office
Telecommuni- Enter- and Inter-
cations Media tainment segments Total
------- ----- -------- -------- -----
Revenues $1,670.6 $359.7 $74.1 $(54.2) $2,050.2
Employee costs 199.8 122.2 19.4 21.0 362.4
Purchase of goods
and services 637.7 239.3 58.8 (72.5) 863.3
----------------- ----- ----- ---- ----- -----
Adjusted EBITDA(1) 833.1 (1.8) (4.1) (2.7) 824.5
Depreciation and
amortization 360.1
Financial expenses 154.7
Loss on valuation
and translation
of financial
instruments 105.2
Restructuring of
operations,
litigation and
other items 8.5
---------------- ---
Income before
income taxes $196.0
============= ======
Additions to
property, plant
and equipment $262.5 $10.6 $0.5 $5.4 $279.0
Additions to
intangible assets 91.6 2.5 1.8 (0.4) 95.5
================== ==== === === ==== ====
Six months ended June 30,
2017
(restated)
=========
Sports Head
and office
Telecommuni- Enter- and Inter-
cations Media tainment segments Total
------- ----- -------- -------- -----
Revenues $1,631.6 $383.6 $74.3 $(49.4) $2,040.1
Employee costs 198.9 120.8 18.7 30.7 369.1
Purchase of goods
and services 651.0 251.6 60.0 (67.8) 894.8
----------------- ----- ----- ---- ----- -----
Adjusted EBITDA(1) 781.7 11.2 (4.4) (12.3) 776.2
Depreciation and
amortization 343.1
Financial expenses 156.0
Loss on valuation
and translation
of financial
instruments 111.5
Restructuring of
operations,
litigation and
other items 0.9
Gain on sale of
spectrum licences (87.8)
Loss on debt
refinancing 15.6
------------ ----
Income before
income taxes $236.9
============= ======
Additions to
property, plant
and equipment $309.0 $12.7 $0.6 $0.4 $322.7
Additions to
intangible assets 58.4 2.1 1.6 1.0 63.1
================== ==== === === === ====
(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,
loss on
valuation
and
translation
of financial
instruments,
restructuring
of
operations,
litigation
and other
items, gain
on sale of
spectrum
licences,
loss on debt
refinancing,
income taxes
and income
from
discontinued
operations.
QUEBECOR INC.
CONSOLIDATED STATEMENTS OF EQUITY
(in millions of Canadian dollars)
(unaudited)
==========
Equity attributable to shareholders Equity
attributable
to non-controlling
interests
---------
Accumulated
other com-
prehensive
loss
----
Retained
earnings
(deficit)
--------
Capital Contributed Total
equity
stock surplus
----- -------
Balance as of December
31, 2016, as
previously reported $323.3 $2.3 $235.7 $(106.1) $392.0 $847.2
Changes in accounting policies - - 143.7 - 33.6 177.3
------------------------------ --- --- ----- --- ---- -----
Balance as of December 31, 2016, as
restated 323.3 2.3 379.4 (106.1) 425.6 1,024.5
Net income - - 141.7 - 61.3 203.0
Other comprehensive income - - - 43.1 9.9 53.0
Dividends or distributions - - (12.1) - (9.5) (21.6)
Repurchase of Class B Shares (2.7) - (26.6) - - (29.3)
Non-controlling interests
acquisition - - (25.7) (0.4) (17.8) (43.9)
------------------------- --- --- ----- ---- ----- -----
Balance as of June 30, 2017 320.6 2.3 456.7 (63.4) 469.5 1,185.7
Net income - - 248.8 - 76.9 325.7
Other comprehensive income - - - 12.7 3.2 15.9
Issuance of Class B Shares 1.1 1.2 - - - 2.3
Dividends or distributions - - (13.2) - (9.2) (22.4)
Repurchase of Class B Shares (7.8) - (90.4) - - (98.2)
---------------------------- ---- --- ----- --- --- -----
Balance as of December 31, 2017 313.9 3.5 601.9 (50.7) 540.4 1,409.0
Net income - - 98.0 - 30.4 128.4
Other comprehensive loss - - - (34.7) (7.6) (42.3)
Issuance of Class B Shares 1.3 1.2 - - - 2.5
Dividends or distributions - - (19.3) - (9.4) (28.7)
Repurchase of Class B Shares (9.4) - (108.6) - - (118.0)
Non-controlling interests
acquisition - - (1,198.2) (19.2) (472.6) (1,690.0)
------------------------- --- --- -------- ----- ------ --------
Balance as of June 30,
2018 $305.8 $4.7 $(626.2) $(104.6) $81.2 $(339.1)
====================== ====== ==== ======= ======= ===== =======
QUEBECOR INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(in millions of Canadian dollars) Three months ended Six months ended
(unaudited) June 30 June 30
========== ======= =======
2018 2017 2018 2017
---- ---- ---- ----
(restated) (restated)
Cash flows related to operating
activities
Income from
continuing
operations $52.8 $173.9 $128.4 $194.6
Adjustments for:
Depreciation of property, plant
and equipment 154.7 147.4 308.2 292.0
Amortization of intangible
assets 25.5 25.9 51.9 51.1
Loss on valuation and
translation of financial
instruments 75.6 39.1 105.2 111.5
Gain on sale of spectrum
licences - (87.8) - (87.8)
Loss on debt refinancing - - - 15.6
Amortization of financing costs
and long-term debt discount 1.7 1.7 3.5 3.5
Deferred income taxes (14.5) 6.4 (35.1) 30.2
Other (1.1) 1.9 (1.6) 3.2
---- --- ---- ---
294.7 308.5 560.5 613.9
Net change in
non-cash
balances
related to
operating
activities 33.0 24.4 61.9 (133.7)
Cash flows provided by continuing
operating activities 327.7 332.9 622.4 480.2
----- ----- ----- -----
Cash flows related to investing
activities
Non-controlling
interests
acquisition (1,540.0) - (1,540.0) -
Business
acquisitions 1.3 (0.2) (1.4) (5.8)
Additions to
property, plant
and equipment (133.6) (154.4) (279.0) (322.7)
Additions to
intangible
assets (38.6) (28.0) (95.5) (63.1)
Proceeds from
disposals of
assets 1.3 184.9 1.7 185.3
Other (0.4) (0.2) (1.0) (0.2)
Cash flows (used in) provided by
continuing investing activities (1,710.0) 2.1 (1,915.2) (206.5)
-------- --- -------- ------
Cash flows related to financing
activities
Net change in
bank
indebtedness 27.3 (60.0) 26.5 (11.4)
Net change under
revolving
facilities 557.7 (380.9) 640.5 (183.5)
Issuance of
long-term
debt, net of
financing fees - 794.5 - 794.5
Repayment of
long-term debt (9.1) (470.1) (12.8) (653.8)
Repayment of
convertible
debentures (71.9) - (71.9) -
Settlement of
hedging
contracts (0.8) (3.1) (0.8) (3.2)
Issuance of
Class B Shares 1.3 - 1.3 -
Repurchase of
Class B Shares (19.3) (16.5) (118.0) (29.3)
Dividends (19.3) (12.1) (19.3) (12.1)
Dividends or
distributions
paid to non-
controlling
interests (4.7) (4.8) (9.4) (9.5)
Cash flows provided by (used in)
continuing financing activities 461.2 (153.0) 436.1 (108.3)
----- ------ ----- ------
Net change in cash and cash
equivalents from continuing
operations (921.1) 182.0 (856.7) 165.4
Cash flows used in discontinued
operations - (0.3) - (0.3)
Cash and cash equivalents at
beginning of period 929.3 5.7 864.9 22.3
----- --- ----- ----
Cash and cash equivalents at end of
period $8.2 $187.4 $8.2 $187.4
==== ====== ==== ======
Cash and cash equivalents consist
of
Cash $7.8 $186.0 $7.8 $186.0
Cash equivalents 0.4 1.4 0.4 1.4
$8.2 $187.4 $8.2 $187.4
==== ====== ==== ======
Interest and taxes reflected as
operating activities
Cash interest
payments $110.4 $100.9 $152.5 $143.2
Cash income tax
payments (net
of refunds) 2.8 5.2 17.0 56.4
QUEBECOR INC.
CONSOLIDATED BALANCE SHEETS
(in millions of Canadian
dollars)
(unaudited) June 30 December 31 December 31
========== ======= =========== ===========
2018 2017 2016
---- ---- ----
(restated) (restated)
Assets
Current assets
Cash and cash equivalents $8.2 $864.9 $22.3
Accounts receivable 536.2 543.4 525.4
Contract assets 131.8 132.8 106.6
Income taxes 10.8 29.3 6.9
Inventories 160.2 188.1 183.3
Other current assets 136.4 119.8 102.4
983.6 1,878.3 946.9
Non-current assets
Property, plant and equipment 3,530.6 3,594.6 3,605.1
Intangible assets 1,012.4 983.1 1,224.0
Goodwill 2,695.1 2,695.8 2,725.4
Derivative financial instruments 698.6 591.8 809.0
Deferred income taxes 37.1 33.2 16.0
Other assets 185.1 185.1 177.1
8,158.9 8,083.6 8,556.6
Total assets $9,142.5 $9,961.9 $9,503.5
======== ======== ========
Liabilities and equity
Current liabilities
Bank indebtedness $27.3 $0.8 $18.9
Accounts payable and accrued charges 627.0 738.7 705.9
Provisions 27.8 25.4 69.3
Deferred revenue 354.3 346.8 339.7
Income taxes 83.8 13.3 35.2
Convertible debentures 412.5 450.0 -
Embedded derivatives related to
convertible debentures 511.5 442.2 -
Current portion of long-term debt 15.7 20.4 51.8
2,059.9 2,037.6 1,220.8
Non-current liabilities
Long-term debt 6,320.8 5,516.2 5,616.9
Derivative financial instruments 17.1 34.1 0.3
Convertible debentures 150.0 - 500.0
Other liabilities 217.9 215.8 516.2
Deferred income taxes 715.9 749.2 624.8
7,421.7 6,515.3 7,258.2
Equity
Capital stock 305.8 313.9 323.3
Contributed surplus 4.7 3.5 2.3
Retained earnings (626.2) 601.9 379.4
Accumulated other comprehensive loss (104.6) (50.7) (106.1)
Equity attributable to shareholders (420.3) 868.6 598.9
Non-controlling interests 81.2 540.4 425.6
(339.1) 1,409.0 1,024.5
Total liabilities and equity $9,142.5 $9,961.9 $9,503.5
======== ======== ========
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SOURCE Quebecor
