Quebecor Inc. reports consolidated results for first quarter 2024
First quarter 2024 highlights
-
Quebecor recorded revenues of$1.36 billion , up$247.2 million (22.2%), adjusted EBITDA1 of$559.5 million , up$116.7 million (26.4%), and adjusted cash flows from operations2 of$419.0 million , up$73.0 million (21.1%) compared with the same period in 2023. - The Telecommunications segment increased its revenues by
$254.5 million (27.5%), its adjusted EBITDA by$101.3 million (21.4%), and its adjusted cash flows from operations by$63.1 million (16.6%) in the first quarter of 2024, reflecting, among other things, the contribution of the Freedom Mobile ("Freedom") acquisition onApril 3, 2023 . - The Telecommunications segment increased its revenues from mobile services and equipment (
$264.2 million or 95.7%) due to the impact of the Freedom acquisition, as well as its revenues from Internet access ($5.8 million or 1.8%). - There was a net increase of 17,400 revenue–generating units3 ("RGUs") (0.2%) in the first quarter of 2024, including 60,200 connections (1.6%) to the mobile telephony service.
- TVA Group Inc. ("
TVA Group ") recorded a$6.9 million (–5.1%) decrease in revenues and a$4.7 million favourable variance in adjusted EBITDA compared with the first quarter of 2023. - The
Sports and Entertainment segment's revenues decreased by$1.8 million (–3.7%) and its adjusted EBITDA increased by$0.5 million (14.7%) in the first quarter of 2024. -
Quebecor's consolidated net income attributable to shareholders:$173.2 million ($0.75 per basic share), up$52.3 million ($0.23 per basic share) or 43.3%. - Adjusted income from operating activities4:
$163.1 million ($0.71 per basic share), an increase of$27.1 million ($0.12 per basic share) or 19.9%. - The consolidated net debt leverage ratio5 improved from 3.39x at
December 31, 2023 to 3.31x atMarch 31, 2024 . - On
April 10, 2024 ,Videotron Ltd. ("Videotron") announced that it would help improve wireless coverage in outlying regions ofQuébec by installing at least 37 new cell towers in Abitibi–Témiscamingue and the Laurentians in partnership with theQuébec government. - On
May 6, 2024 , credit rating agencyS&P Global Ratings ("S&P") upgradedVideotron's credit rating from BB+ to BBB-. S&P also raisedVideotron's unsecured debt rating from BB+ to BBB-.
______________________ |
1
See "Adjusted EBITDA" under "Definitions." |
Comments by
2024 will be remembered as the year of the passing of our esteemed Chair of the Board, the Right
One year after the successful acquisition of Freedom, it is with immense pride that we mark this milestone in the history of
With its portfolio of complementary brands, which now consists of
Under a new
We take great pride in
We were disappointed by the arbitration decision rendered on
Although there was improvement in most of its lines of business, TVA Group continued to be affected by the industry–wide decline in revenues. Its adjusted EBITDA for the first quarter of 2024 was negative
2024 is a transitional year for TVA Group. Implementation of the reorganization plan announced on
In the Film Production & Audiovisual Services segment, our services were in high demand in the first quarter of 2024. Volume was up significantly for soundstage and equipment rentals. We were very pleased to welcome two major foreign productions from Apple and Skydance to our studios.
I welcome S&P's recent decision to upgrade
In the lead–up to
Having firmly established itself as
Non–IFRS financial measures
The Corporation uses financial measures not standardized under International Financial Reporting Standards ("IFRS"), such as adjusted EBITDA, adjusted income from operating activities, adjusted cash flows from operations, free cash flows from operating activities and consolidated net debt leverage ratio, and key performance indicators, including RGUs. Definitions of the non–IFRS measures and key performance indicator used by the Corporation in this press release are provided in the "Definitions" section.
Financial table
Table 1
Consolidated summary of income, cash flows and balance sheet
(in millions of Canadian dollars, except per basic share data)
|
Three months ended |
||||
|
|
2024 |
|
2023 |
|
|
|
|
|
|
|
Income |
|
|
|
|
|
Revenues: |
|
|
|
|
|
Telecommunications |
|
$ |
1,179.5 |
$ |
925.0 |
Media |
|
|
168.8 |
|
170.8 |
|
|
|
46.7 |
|
48.5 |
Inter–segments |
|
|
(32.2) |
|
(28.7) |
|
|
|
1,362.8 |
|
1,115.6 |
Adjusted EBITDA (negative adjusted EBITDA): |
|
|
|
|
|
Telecommunications |
|
|
575.5 |
|
474.2 |
Media |
|
|
(16.7) |
|
(26.4) |
|
|
|
3.9 |
|
3.4 |
Head Office |
|
|
(3.2) |
|
(8.4) |
|
|
|
559.5 |
|
442.8 |
Depreciation and amortization |
|
|
(236.2) |
|
(188.5) |
Financial expenses |
|
|
(108.9) |
|
(77.9) |
Gain (loss) on valuation and translation of financial instruments |
|
|
9.8 |
|
(11.3) |
Restructuring, acquisition costs and other |
|
|
(2.2) |
|
(5.6) |
Income taxes |
|
|
(54.4) |
|
(46.0) |
Net income |
|
$ |
167.6 |
$ |
113.5 |
|
|
|
|
|
|
Net income attributable to shareholders |
|
|
173.2 |
|
120.9 |
Adjusted income from operating activities |
|
|
163.1 |
|
136.0 |
Per basic share: |
|
|
|
|
|
Net income attributable to shareholders |
|
|
0.75 |
|
0.52 |
Adjusted income from operating activities |
|
|
0.71 |
|
0.59 |
Table 1 (continued) |
Three months ended |
|||||
|
|
2024 |
2023 |
|||
|
|
|
|
|
||
Additions to property, plant and equipment and to intangible assets: |
|
|
|
|
||
Telecommunications |
$ |
132.9 |
$ |
94.7 |
||
Media |
|
6.2 |
|
1.0 |
||
|
|
1.4 |
|
0.9 |
||
Head Office |
|
– |
|
0.2 |
||
|
|
140.5 |
|
96.8 |
||
Acquisition of spectrum licences, including deposits |
|
59.8 |
|
9.9 |
||
Cash flows: |
|
|
|
|
||
Adjusted cash flows from operations: |
|
|
|
|
||
Telecommunications |
|
442.6 |
|
379.5 |
||
Media |
|
(22.9) |
|
(27.4) |
||
|
|
2.5 |
|
2.5 |
||
Head Office |
|
(3.2) |
|
(8.6) |
||
|
|
419.0 |
|
346.0 |
||
Free cash flows from operating activities1 |
|
222.6 |
|
147.0 |
||
Cash flows provided by operating activities |
|
388.8 |
|
271.9 |
||
|
|
|
|
|
||
|
|
|
|
|
||
Balance sheet: |
|
|
|
|
||
Cash and cash equivalents |
$ |
25.9 |
$ |
11.1 |
||
Working capital |
|
(1,187.5) |
|
(1,125.6) |
||
Net assets related to derivative financial instruments |
|
207.2 |
|
110.8 |
||
Total assets |
|
12,831.4 |
|
12,741.3 |
||
Total long–term debt (including current portion) |
|
7,647.8 |
|
7,668.2 |
||
Lease liabilities (current and long term) |
|
362.6 |
|
376.2 |
||
Convertible debentures, including embedded derivatives |
|
155.5 |
|
165.0 |
||
Equity attributable to shareholders |
|
1,868.6 |
|
1,726.9 |
||
Equity |
|
1,977.1 |
|
1,837.7 |
||
Consolidated net debt leverage ratio1 |
|
3.31x |
|
3.39x |
___________________________ |
1 See "Non IFRS financial measures." |
2024/2023 first quarter comparison
Revenues:
- Revenues increased in Telecommunications (
$254.5 million or 27.5% of segment revenues), due to the impact of the Freedom acquisition. - Revenues decreased in Media (
$2.0 million or –1.2%) and inSports and Entertainment ($1.8 million or –3.7%).
Adjusted EBITDA:
- Adjusted EBITDA increased in Telecommunications (
$101.3 million or 21.4% of segment adjusted EBITDA), due primarily to Freedom's contribution. There were favourable variances in Media ($9.7 million ) and Head Office ($5.2 million ), due in both cases to reductions in some operating expenses. - The change in the fair value of
Quebecor stock options and stock–price–based share units resulted in an$8.8 million favourable variance in the Corporation's stock–based compensation charge in the first quarter of 2024 compared with the same period of 2023.
Net income attributable to shareholders:
- The favourable variances were:
$116.7 million increase in adjusted EBITDA;$21.1 million favourable variance in gains and losses on valuation and translation of financial instruments, including$21.4 million without any tax consequences;$3.4 million favourable variance in the charge for restructuring, acquisition costs and other.
- The main unfavourable variances were:
$47.7 million increase in the depreciation and amortization charge;$31.0 million increase related to financial expenses;$8.4 million increase in the income tax expense.
Adjusted income from operating activities:
Adjusted cash flows from operations:
Cash flows provided by operating activities:
Acquisition
On
Dividends declared
On
Board of Directors
On
Concurrently with Ms. Lalande's appointment as Chair of the Board,
Detailed financial information
For a detailed analysis of
Conference call for investors and webcast
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 the possibility that the Corporation is unable to successfully implement its business strategies, including but not limited to the geographic expansion of its telecommunications activities and the reorganization of TVA Group, seasonality (including seasonal fluctuations in customer orders), operating risk (including fluctuations in demand for
In addition, there are risks associated with the acquisition of Freedom and the strategy for expanding outside
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
The forward–looking statements in this press release reflect the Corporation's expectations as of
About
A family business founded in 1950,
Visit our website: www.quebecor.com
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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, acquisition costs and other, and income taxes. 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 IFRS financial 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'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 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 adjusted cash flows from operations and free cash flows from operating activities. The Corporation's definition of adjusted EBITDA may not be the same as similarly titled measures reported by other companies.
Table 2 provides a reconciliation of adjusted EBITDA to net income as disclosed in
Table 2
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 |
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|
|
|
|
|
|
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (negative adjusted EBITDA): |
|
|
|
|
|
|
|
|
|
Telecommunications |
|
|
|
|
|
$ |
575.5 |
$ |
474.2 |
Media |
|
|
|
|
|
|
(16.7) |
|
(26.4) |
|
|
|
|
|
|
|
3.9 |
|
3.4 |
Head Office |
|
|
|
|
|
|
(3.2) |
|
(8.4) |
|
|
|
|
|
|
|
559.5 |
|
442.8 |
Depreciation and amortization |
|
|
|
|
|
|
(236.2) |
|
(188.5) |
Financial expenses |
|
|
|
|
|
|
(108.9) |
|
(77.9) |
Gain (loss) on valuation and translation of financial instruments |
|
|
|
|
|
|
9.8 |
|
(11.3) |
Restructuring, acquisition costs and other |
|
|
|
|
|
|
(2.2) |
|
(5.6) |
Income taxes |
|
|
|
|
|
|
(54.4) |
|
(46.0) |
Net income |
|
|
|
|
|
$ |
167.6 |
$ |
113.5 |
Adjusted income from operating activities
The Corporation defines adjusted income from operating activities, as reconciled to net income attributable to shareholders under IFRS, as net income attributable to shareholders before the gain (loss) on valuation and translation of financial instruments, and restructuring, acquisition costs and other, net of income tax related to adjustments and net income attributable to non–controlling interest related to adjustments. Adjusted income from 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 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 operating activities is more representative for forecasting income. The Corporation's definition of adjusted income from operating activities may not be identical to similarly titled measures reported by other companies.
Table 3 provides a reconciliation of adjusted income from operating activities to the net income attributable to shareholders measure used in
Table 3
Reconciliation of the adjusted income from 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 |
||||||||
|
|
|
|
|
2024 |
2023 |
||||
|
|
|
|
|
|
|
|
|
|
|
Adjusted income from operating activities |
|
|
|
|
|
$ |
163.1 |
$ |
136.0 |
|
Gain (loss) on valuation and translation of financial instruments |
|
|
|
|
|
|
|
9.8 |
|
(11.3) |
Restructuring, acquisition costs and other |
|
|
|
|
|
|
|
(2.2) |
|
(5.6) |
Income taxes related to adjustments1 |
|
|
|
|
|
|
|
2.4 |
|
1.6 |
Non–controlling interest related to adjustments |
|
|
|
|
|
|
|
0.1 |
|
0.2 |
Net income attributable to shareholders |
|
|
|
|
|
|
$ |
173.2 |
$ |
120.9 |
1 |
Includes impact of fluctuations in income tax applicable to adjusted items, either for statutory reasons or in connection with tax transactions. |
Adjusted cash flows from operations and free cash flows from operating activities
Adjusted cash flows from operations
Adjusted cash flows from operations represents adjusted EBITDA, less additions to property, plant and equipment and to intangible assets (excluding licence acquisitions and renewals). Adjusted cash flows from operations represents funds available for interest and income tax payments, expenditures related to restructuring programs, business acquisitions, licence acquisitions and renewals, payment of dividends, repayment of long–term debt and lease liabilities, and share repurchases. Adjusted cash flows from operations is not a measure of liquidity that is consistent with IFRS. It is not intended to be regarded as an alternative to IFRS financial performance measures or to the statement of cash flows as a measure of liquidity. Adjusted cash flows from operations is used by the Corporation's management and Board of Directors to evaluate the cash flows generated by the operations of all of its segments, on a consolidated basis, in addition to the operating cash flows generated by each segment. Adjusted cash flows from operations is also relevant because it is a component of the Corporation's annual incentive compensation programs. The Corporation's definition of adjusted cash flows from operations may not be identical to similarly titled measures reported by other companies.
Free cash flows from operating activities
Free cash flows from operating activities represents cash flows provided by operating activities calculated in accordance with IFRS, less cash flows used for additions to property, plant and equipment and to intangible assets (excluding expenditures related to licence acquisitions and renewals), plus proceeds from disposal of assets. Free cash flows from operating activities is used by the Corporation's management and Board of Directors to evaluate cash flows generated by the Corporation's operations. Free cash flows from operating activities represents available funds for business acquisitions, licence acquisitions and renewals, payment of dividends, repayment of long–term debt and lease liabilities, and share repurchases. Free cash flows from operating activities is not a measure of liquidity that is consistent with IFRS. It is not intended to be regarded as an alternative to IFRS financial performance measures or to the statement of cash flows as a measure of liquidity. The Corporation's definition of free cash flows from operating activities may not be identical to similarly titled measures reported by other companies.
Tables 4 and 5 provide a reconciliation of adjusted cash flows from operations and free cash flows from operating activities to cash flows provided by operating activities reported in the condensed consolidated financial statements.
Table 4
Adjusted cash flows from operations
(in millions of Canadian dollars)
|
Three months ended |
||||||||||
|
2024 |
2023 |
|||||||||
Adjusted EBITDA (negative adjusted EBITDA) |
|
|
|
|
|||||||
Telecommunications |
$ |
575.5 |
$ |
474.2 |
|||||||
Media |
|
(16.7) |
|
(26.4) |
|||||||
|
|
3.9 |
|
3.4 |
|||||||
Head Office |
|
(3.2) |
|
(8.4) |
|||||||
|
|
559.5 |
|
442.8 |
|||||||
Minus |
|
|
|
|
|||||||
Additions to property, plant and equipment:1 |
|
|
|
|
|||||||
Telecommunications |
|
(96.9) |
|
(74.9) |
|||||||
Media |
|
(6.3) |
|
(0.5) |
|||||||
|
|
(0.4) |
|
(0.1) |
|||||||
Head Office |
|
– |
|
– |
|||||||
|
|
(103.6) |
|
(75.5) |
|||||||
Additions to intangible assets:2 |
|
|
|
|
|||||||
Telecommunications |
|
(36.0) |
|
(19.8) |
|||||||
Media |
|
0.1 |
|
(0.5) |
|||||||
|
|
(1.0) |
|
(0.8) |
|||||||
Head Office |
|
– |
|
(0.2) |
|||||||
|
|
(36.9) |
|
(21.3) |
|||||||
Adjusted cash flows from operations |
|
|
|
|
|||||||
Telecommunications |
|
442.6 |
|
379.5 |
|||||||
Media |
|
(22.9) |
|
(27.4) |
|||||||
|
|
2.5 |
|
2.5 |
|||||||
Head Office |
|
(3.2) |
|
(8.6) |
|||||||
|
$ |
419.0 |
$ |
346.0 |
|||||||
1
Reconciliation to cash flows used for additions to property, plant |
Three months ended |
||||||||||
2024 |
2023 |
||||||||||
Additions to property, plant and equipment |
$ |
(103.6) |
$ |
(75.5) |
|||||||
Net variance in current operating items related to additions to property, plant |
(23.4) |
(14.0) |
|||||||||
Cash flows used for additions to property, plant and equipment |
$ |
(127.0) |
$ |
(89.5) |
|||||||
2
Reconciliation to cash flows used for additions to intangible assets as |
Three months ended |
||||||||||
2024 |
2023 |
||||||||||
Additions to intangible assets |
$ |
(36.9) |
$ |
(21.3) |
|||||||
Net variance in current operating items related to additions to intangible assets |
(2.3) |
(14.4) |
|||||||||
Cash flows used for licence acquisitions |
– |
(9.9) |
|||||||||
Cash flows used for additions to intangible assets |
$ |
(39.2) |
$ |
(45.6) |
Table 5
Free cash flows from operating activities and cash flows provided by operating activities reported in the condensed consolidated financial statements.
(in millions of Canadian dollars)
|
Three months ended |
|
||||||
|
2024 |
2023 |
||||||
|
|
|
|
|
|
|||
Adjusted cash flows from operations from Table 4 |
$ |
419.0 |
$ |
346.0 |
|
|||
Plus (minus) |
|
|
|
|
|
|||
Cash portion of financial expenses |
|
(106.6) |
|
(76.2) |
|
|||
Cash portion of restructuring, acquisition costs and |
|
(0.4) |
|
(6.5) |
|
|||
Current income taxes |
|
(82.1) |
|
(67.5) |
|
|||
Other |
|
1.3 |
|
0.3 |
|
|||
Net change in non–cash balances related to |
|
17.1 |
|
(20.7) |
|
|||
Net variance in current operating items related to |
|
(23.4) |
|
(14.0) |
|
|||
Net variance in current operating items related to |
|
(2.3) |
|
(14.4) |
|
|||
Free cash flows from operating activities |
|
222.6 |
|
147.0 |
|
|||
Plus (minus) |
|
|
|
|
|
|||
Cash flows used for additions to property, plant |
|
127.0 |
|
89.5 |
|
|||
Cash flows used for additions to intangible assets |
|
39.2 |
|
35.7 |
|
|||
Proceeds from disposal of assets |
|
– |
|
(0.3) |
|
|||
Cash flows provided by operating activities |
$ |
388.8 |
$ |
271.9 |
|
Consolidated net debt leverage ratio
The consolidated net debt leverage ratio represents consolidated net debt, excluding convertible debentures, divided by the trailing 12–month adjusted EBITDA. Consolidated net debt, excluding convertible debentures, represents total long–term debt plus bank indebtedness, lease liabilities and liabilities related to derivative financial instruments, less assets related to derivative financial instruments and cash and cash equivalents. The consolidated net debt leverage ratio serves to evaluate the Corporation's financial leverage and is used by management and the Board of Directors in its decisions on the Corporation's capital structure, including its financing strategy, and in managing debt maturity risks. The consolidated net debt leverage ratio excludes convertible debentures because, subject to certain conditions, those debentures can be repurchased at the Corporation's discretion by issuing Quebecor Class B Shares. Consolidated net debt leverage ratio is not a measure established in accordance with IFRS. It is not intended to be used as an alternative to IFRS measures or the balance sheet to evaluate the Corporation's financial position. The Corporation's definition of consolidated net debt leverage ratio may not be identical to similarly titled measures reported by other companies.
Table 6 provides the calculation of consolidated net debt leverage ratio and the reconciliation to balance sheet items reported in
Table 6
Consolidated net debt leverage ratio
(in millions of Canadian dollars)
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
Total long–term debt1 |
|
|
|
|
$ |
7,647.8 |
$ |
7,668.2 |
Plus (minus) |
|
|
|
|
|
|
|
|
Lease liabilities2 |
|
|
|
|
|
362.6 |
|
376.2 |
Bank indebtedness |
|
|
|
|
|
12.3 |
|
9.6 |
Derivative financial instruments3 |
|
|
|
(207.2) |
|
(110.8) |
||
Cash and cash equivalents |
|
|
|
|
|
(25.9) |
|
(11.1) |
Consolidated net debt excluding convertible debentures |
|
|
|
|
|
7,789.6 |
|
7,932.1 |
Divided by: |
|
|
|
|
|
|
|
|
Trailing 12–month adjusted EBITDA4 |
|
|
|
|
$ |
2,354.5 |
$ |
2,337.1 |
Consolidated net debt leverage ratio 4 |
|
|
|
|
|
3.31x |
|
3.39x |
1 |
Excluding changes in the fair value of long–term debt related to hedged interest rate risk and financing costs. |
2 |
Current and long–term liabilities. |
3 |
Current and long–term assets less long–term liabilities. |
4 |
On a pro forma basis as at |
Key performance indicator
Revenue–generating unit
The Corporation uses RGU, an industry metric, as a key performance indicator. An RGU represents, as the case may be, subscriber connections to the mobile and wireline telephony services and subscriptions to the Internet access and television 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.
QUEBECOR INC. |
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
|
|
|
|
|
|
|
|
(in millions of Canadian dollars, except for earnings per share data) |
|
Three months ended |
|||
(unaudited) |
|
March 31 |
|||
|
|
|
2024 |
|
2023 |
|
|
|
|
||
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
1,362.8 |
$ |
1,115.6 |
|
|
|
|
|
|
Employee costs |
|
|
189.2 |
|
176.5 |
Purchase of goods and services |
|
|
614.1 |
|
496.3 |
Depreciation and amortization |
|
|
236.2 |
|
188.5 |
Financial expenses |
|
|
108.9 |
|
77.9 |
(Gain) loss on valuation and translation of financial instruments |
|
|
(9.8) |
|
11.3 |
Restructuring, acquisition costs and other |
|
|
2.2 |
|
5.6 |
|
|
|
|
|
|
Income before income taxes |
|
|
222.0 |
|
159.5 |
|
|
|
|
|
|
Income taxes (recovery): |
|
|
|
|
|
Current |
|
|
82.1 |
|
67.5 |
Deferred |
|
|
(27.7) |
|
(21.5) |
|
|
|
|
|
|
|
|
|
54.4 |
|
46.0 |
|
|
|
|
|
|
Net income |
|
$ |
167.6 |
$ |
113.5 |
|
|
|
|
|
|
Net income (loss) attributable to |
|
|
|
|
|
Shareholders |
|
$ |
173.2 |
$ |
120.9 |
Non-controlling interests |
|
|
(5.6) |
|
(7.4) |
|
|
|
|
|
|
Earnings per share attributable to shareholders |
|
|
|
|
|
Basic |
|
$ |
0.75 |
$ |
0.52 |
Diluted |
|
|
0.70 |
|
0.52 |
|
|
|
|
|
|
Weighted average number of shares outstanding (in millions) |
|
|
230.7 |
|
230.9 |
Weighted average number of diluted shares (in millions) |
|
|
236.0 |
|
231.2 |
|
|
|
|
|
|
QUEBECOR INC. |
|
|
|
|
|
|||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|
|
|
|||||||
|
|
|
|
|
|
|||||
(in millions of Canadian dollars) |
|
Three months ended |
||||||||
(unaudited) |
|
March 31 |
||||||||
|
|
|
2024 |
|
2023 |
|||||
|
|
|
|
|||||||
|
|
|
|
|||||||
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
Net income |
|
$ |
167.6 |
$ |
113.5 |
|||||
|
|
|
|
|
|
|||||
Other comprehensive income: |
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
Items that may be reclassified to income: |
|
|
|
|
|
|||||
Cash flow hedges: |
|
|
|
|
||||||
Gain on valuation of derivative financial instruments |
|
|
7.9 |
|
4.0 |
|||||
Deferred income taxes |
|
|
(2.5) |
|
(0.2) |
|||||
|
|
|
|
|
||||||
Loss on translation of investments in foreign associates |
|
(1.2) |
|
(0.4) |
||||||
|
|
|
|
|
|
|||||
Items that will not be reclassified to income: |
|
|
|
|
|
|||||
Defined benefit plans: |
|
|
|
|
|
|||||
Re-measurement gain |
|
|
53.8 |
|
- |
|||||
Deferred income taxes |
|
|
(14.1) |
|
- |
|||||
|
|
|
|
|
|
|||||
Equity investment: |
|
|
|
|
||||||
Gain on revaluation of an equity investment |
|
|
3.3 |
|
6.8 |
|||||
Deferred income taxes |
|
|
(0.4) |
|
(0.8) |
|||||
|
|
|
46.8 |
|
9.4 |
|||||
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
Comprehensive income |
|
$ |
214.4 |
$ |
122.9 |
|||||
|
|
|
|
|
|
|||||
Comprehensive income (loss) attributable to |
|
|
|
|
|
|||||
Shareholders |
|
$ |
216.7 |
$ |
130.3 |
|||||
Non-controlling interests |
|
|
(2.3) |
|
(7.4) |
|||||
|
|
|
|
|
|
QUEBECOR INC. |
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENTED INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
Three months ended |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports |
|
Head |
|
|
|
|
|
|
|
|
|
|
and |
|
office |
|
|
|
|
|
|
Telecommuni- |
|
|
|
Enter- |
|
and Inter- |
|
|
|
|
|
|
cations |
|
Media |
|
tainment |
|
segments |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
1,179.5 |
$ |
168.8 |
$ |
46.7 |
$ |
(32.2) |
$ |
1,362.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee costs |
|
|
123.2 |
|
47.6 |
|
11.1 |
|
7.3 |
|
189.2 |
|
Purchase of goods and services |
|
|
480.8 |
|
137.9 |
|
31.7 |
|
(36.3) |
|
614.1 |
|
Adjusted EBITDA1 |
|
|
575.5 |
|
(16.7) |
|
3.9 |
|
(3.2) |
|
559.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
236.2 |
|
Financial expenses |
|
|
|
|
|
|
|
|
|
|
108.9 |
|
Gain on valuation and translation of financial instruments |
|
|
|
|
|
|
|
|
|
(9.8) |
||
Restructuring, acquisition costs and other |
|
|
|
|
|
|
|
|
|
|
2.2 |
|
Income before income taxes |
|
|
|
|
|
|
|
|
|
$ |
222.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used for |
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
$ |
123.8 |
$ |
2.8 |
$ |
0.4 |
$ |
- |
$ |
127.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to intangible assets |
|
|
37.2 |
|
1.0 |
|
1.0 |
|
- |
|
39.2 |
|
|
|
Three months ended March 31, 2023 |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports |
|
Head |
|
|
|
|
|
|
|
|
|
|
and |
|
office |
|
|
|
|
|
|
Telecommuni- |
|
|
|
Enter- |
|
and Inter- |
|
|
|
|
|
|
cations |
|
Media |
|
tainment |
|
segments |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
925.0 |
$ |
170.8 |
$ |
48.5 |
$ |
(28.7) |
$ |
1,115.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee costs |
|
|
97.9 |
|
56.6 |
|
11.6 |
|
10.4 |
|
176.5 |
|
Purchase of goods and services |
|
|
352.9 |
|
140.6 |
|
33.5 |
|
(30.7) |
|
496.3 |
|
Adjusted EBITDA1 |
|
|
474.2 |
|
(26.4) |
|
3.4 |
|
(8.4) |
|
442.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
188.5 |
|
Financial expenses |
|
|
|
|
|
|
|
|
|
|
77.9 |
|
Loss on valuation and translation of financial instruments |
|
|
|
|
|
|
|
|
|
11.3 |
||
Restructuring, acquisition costs and other |
|
|
|
|
|
|
|
|
|
|
5.6 |
|
Income before income taxes |
|
|
|
|
|
|
|
|
|
$ |
159.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used for |
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment2 |
|
$ |
87.4 |
$ |
2.0 |
$ |
0.1 |
$ |
- |
$ |
89.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to intangible assets |
|
|
44.1 |
|
0.5 |
|
0.8 |
|
0.2 |
|
45.6 |
___________________________ |
||||||||||||
1 |
The Chief Executive Officer uses adjusted EBITDA as the measure of profit to assess the performance of each segment. Adjusted EBITDA is 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, acquisition costs and other and income taxes. |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
2 |
Deferred subsidies of |
QUEBECOR INC. |
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF EQUITY |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Equity attributable to shareholders |
|
Equity |
|
|
|||||||
|
|
|
|
|
|
|
Accumulated |
|
attributable |
|
|
|
|
|
|
|
|
|
|
|
other com- |
|
to non- |
|
|
|
|
Capital |
|
Contributed |
|
Retained |
|
prehensive |
|
controlling |
|
Total |
|
|
stock |
surplus |
|
earnings |
|
income |
|
interests |
|
equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of |
$ |
916.2 |
$ |
17.4 |
$ |
421.9 |
$ |
1.8 |
$ |
126.2 |
$ |
1,483.5 |
Net income (loss) |
|
- |
|
- |
|
120.9 |
|
- |
|
(7.4) |
|
113.5 |
Other comprehensive income |
|
- |
|
- |
|
- |
|
9.4 |
|
- |
|
9.4 |
Dividends |
|
- |
|
- |
|
(69.3) |
|
- |
|
(0.1) |
|
(69.4) |
Balance as of |
|
916.2 |
|
17.4 |
|
473.5 |
|
11.2 |
|
118.7 |
|
1,537.0 |
Net income (loss) |
|
- |
|
- |
|
529.6 |
|
- |
|
(8.0) |
|
521.6 |
Other comprehensive (loss) income |
|
- |
|
- |
|
- |
|
(5.4) |
|
0.6 |
|
(4.8) |
Dividends |
|
- |
|
- |
|
(207.8) |
|
- |
|
(0.1) |
|
(207.9) |
Repurchase of Class |
|
(1.6) |
|
- |
|
(6.2) |
|
- |
|
- |
|
(7.8) |
Business disposal |
|
- |
|
- |
|
- |
|
- |
|
(0.4) |
|
(0.4) |
Balance as of |
|
914.6 |
|
17.4 |
|
789.1 |
|
5.8 |
|
110.8 |
|
1,837.7 |
Net income (loss) |
|
- |
|
- |
|
173.2 |
|
- |
|
(5.6) |
|
167.6 |
Other comprehensive income |
|
- |
|
- |
|
- |
|
43.5 |
|
3.3 |
|
46.8 |
Dividends |
|
- |
|
- |
|
(75.0) |
|
- |
|
- |
|
(75.0) |
Balance as of |
$ |
914.6 |
$ |
17.4 |
$ |
887.3 |
$ |
49.3 |
$ |
108.5 |
$ |
1,977.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
QUEBECOR INC. |
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
|
|
|
|
|
|
|
|
|
(in millions of Canadian dollars) |
|
Three months ended |
|||
(unaudited) |
|
March 31 |
|||
|
|
|
2024 |
|
2023 |
|
|
|
|
||
|
|
|
|
||
|
|
|
|
|
|
Cash flows related to operating activities |
|
|
|
|
|
Net income |
|
$ |
167.6 |
$ |
113.5 |
Adjustments for: |
|
|
|
|
|
Depreciation of property, plant and equipment |
|
|
141.9 |
|
133.9 |
Amortization of intangible assets |
|
|
65.3 |
|
43.4 |
Depreciation of right-of-use assets |
|
|
29.0 |
|
11.2 |
(Gain) loss on valuation and translation of financial instruments |
|
|
(9.8) |
|
11.3 |
Impairment of assets |
|
|
2.4 |
|
- |
Amortization of financing costs |
|
|
2.3 |
|
1.7 |
Deferred income taxes |
|
|
(27.7) |
|
(21.5) |
Other |
|
|
0.7 |
|
(0.9) |
|
|
|
371.7 |
|
292.6 |
Net change in non-cash balances related to operating activities |
|
|
17.1 |
|
(20.7) |
Cash flows provided by operating activities |
|
|
388.8 |
|
271.9 |
Cash flows related to investing activities |
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(127.0) |
|
(89.5) |
Deferred subsidies received (used) to finance additions to |
|
|
|
|
|
property, plant and equipment |
|
|
37.0 |
|
(20.0) |
|
|
|
(90.0) |
|
(109.5) |
Additions to intangible assets |
|
|
(39.2) |
|
(45.6) |
Deposit on acquisition of spectrum licences |
|
|
(59.8) |
|
- |
Proceeds from disposals of assets |
|
|
- |
|
0.3 |
Acquisitions of investments and other |
|
|
(14.6) |
|
(0.6) |
Cash flows used in investing activities |
|
|
(203.6) |
|
(155.4) |
Cash flows related to financing activities |
|
|
|
|
|
Net change in bank indebtedness |
|
|
2.7 |
|
24.2 |
Net change under revolving facilities, net of financing costs |
|
|
(107.8) |
|
680.5 |
Repayment of long-term debt |
|
|
- |
|
(1,138.1) |
Repayment of lease liabilities |
|
|
(28.3) |
|
(10.9) |
Settlement of hedging contracts |
|
|
- |
|
307.2 |
Dividends paid to non-controlling interests |
|
|
- |
|
(0.1) |
Cash flows used in financing activities |
|
|
(133.4) |
|
(137.2) |
|
|
|
|
|
|
Net change in cash, cash equivalents and restricted cash |
|
|
51.8 |
|
(20.7) |
|
|
|
|
|
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
11.1 |
|
45.9 |
Cash, cash equivalents and restricted cash at end of period |
|
$ |
62.9 |
$ |
25.2 |
|
|
|
|
|
|
Cash, cash equivalents and restricted cash consist of |
|
|
|
|
|
Cash |
|
$ |
25.5 |
$ |
5.9 |
Cash equivalents |
|
|
0.4 |
|
- |
Restricted cash |
|
|
37.0 |
|
19.3 |
|
|
$ |
62.9 |
$ |
25.2 |
|
|
|
|
|
|
Interest and taxes reflected as operating activities |
|
|
|
|
|
Cash interest payments |
|
$ |
63.7 |
$ |
37.5 |
Cash income tax payments (net of refunds) |
|
|
59.9 |
|
106.5 |
|
|
|
|
|
|
QUEBECOR INC. |
|
|
|
|
CONSOLIDATED BALANCE SHEETS |
||||
(in millions of Canadian dollars) |
|
|
|
|
(unaudited) |
|
|
|
|
|
|
2024 |
|
2023 |
Assets |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
$ |
25.9 |
$ |
11.1 |
Restricted cash |
|
37.0 |
|
- |
Accounts receivable |
|
1,113.5 |
|
1,175.1 |
Contract assets |
|
122.7 |
|
125.4 |
Income taxes |
|
28.3 |
|
49.0 |
Inventories |
|
511.1 |
|
512.1 |
Derivative financial instruments |
|
148.4 |
|
129.3 |
Other current assets |
|
211.2 |
|
192.3 |
|
|
2,198.1 |
|
2,194.3 |
|
|
|
|
|
Non-current assets |
|
|
|
|
Property, plant and equipment |
|
3,374.0 |
|
3,417.9 |
Intangible assets |
|
3,356.8 |
|
3,385.1 |
Right-of-use assets |
|
326.5 |
|
340.8 |
Goodwill |
|
2,721.2 |
|
2,721.2 |
Derivative financial instruments |
|
66.9 |
|
35.8 |
Deferred income taxes |
|
31.4 |
|
23.4 |
Other assets |
|
756.5 |
|
622.8 |
|
|
10,633.3 |
|
10,547.0 |
Total assets |
$ |
12,831.4 |
$ |
12,741.3 |
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Bank indebtedness |
$ |
12.3 |
$ |
9.6 |
Accounts payable, accrued charges and provisions |
|
1,186.2 |
|
1,185.9 |
Deferred revenue |
|
371.6 |
|
370.6 |
Deferred subsidies |
|
37.0 |
|
- |
Income taxes |
|
24.5 |
|
24.7 |
Convertible debentures |
|
150.0 |
|
150.0 |
Current portion of long-term debt |
|
1,509.7 |
|
1,480.6 |
Current portion of lease liabilities |
|
94.3 |
|
98.5 |
|
|
3,385.6 |
|
3,319.9 |
|
|
|
|
|
Non-current liabilities |
|
|
|
|
Long-term debt |
|
6,105.6 |
|
6,151.8 |
Lease liabilities |
|
268.3 |
|
277.7 |
Derivative financial instruments |
|
8.1 |
|
54.3 |
Deferred income taxes |
|
807.0 |
|
809.7 |
Other liabilities |
|
279.7 |
|
290.2 |
|
|
7,468.7 |
|
7,583.7 |
Equity |
|
|
|
|
Capital stock |
|
914.6 |
|
914.6 |
Contributed surplus |
|
17.4 |
|
17.4 |
Retained earnings |
|
887.3 |
|
789.1 |
Accumulated other comprehensive income |
|
49.3 |
|
5.8 |
Equity attributable to shareholders |
|
1,868.6 |
|
1,726.9 |
Non-controlling interests |
|
108.5 |
|
110.8 |
|
|
1,977.1 |
|
1,837.7 |
|
|
|
|
|
Total liabilities and equity |
$ |
12,831.4 |
$ |
12,741.3 |
|
|
|
|
|
View original content:https://www.prnewswire.com/news-releases/quebecor-inc-reports-consolidated-results-for-first-quarter-2024-302140599.html
SOURCE