Quebecor Inc. Reports Second Quarter 2005 Results.MONTREAL Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. -- Quebecor Quebecor Inc. TSX: QBR (written without an accent on the first e, even in French) is a large Quebec-based communications company. It was founded by Pierre Péladeau, and remains run by his family. Quebecor Inc. has two operating subsidiaries:
TSX Transfer from Stack Pointer to Index TSX True Space Extension :QBR QBR Quarterly Business Review QBR Quality Billing Report QBR Quarterly Billing Report .MV.A)(TSX:QBR.SV.B) - All amounts are expressed in Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents unless otherwise indicated. HIGHLIGHTS - Quebecor Media boosts revenues by $56.0 million and operating income by $1.8 million. - Quebecor World's revenues increase by US$20.4 million while its operating income drops by US$25.9 million. - Excluding unusual items, including the reserve for restructuring and a $56.1 million unrealized gain on re-measurement of exchangeable debentures, Quebecor's net income is $27.4 million ($0.42 per basic share), compared with $22.6 million ($0.35 per basic share) in the second quarter of 2004. - Videotron's successful new residential telephone service has 41,800 customers as of June 30, 2005 and is rolled out in Montreal's West Island and Quebec City area. - Videotron renews collective agreements with employees in Montreal, Quebec City, Saguenay-Lac-Saint-Jean and Gatineau areas. - Quebecor Media repurchases US$140.3 million principal amount of its outstanding Notes on July 19, 2005. Quebecor Inc.'s revenues decreased by $89.9 million (-3.5%) to $2.51 billion in the second quarter of 2005. A $56.0 million (9.1%) revenue increase at Quebecor Media Inc. did not entirely make up for the decrease at Quebecor World Inc., due mainly to the unfavourable impact of the conversion of its results into Canadian dollars. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. declined by $49.6 million (-11.1%) to $396.2 million. Because of the unfavourable impact of the devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of the U.S. dollar between the second quarter of 2004 and the second quarter of 2005, the US$25.9 million decrease in Quebecor World's operating income translated into a $53.1 million decline when stated in Canadian dollars. Quebecor Media's operating income increased by $1.8 million (0.9%) between the second quarters of 2004 and 2005. "Quebecor Media's operating results continued trending upward, driven by customer growth and successful development of new products and services," said Pierre Pierre (pēr), city (1990 pop. 12,906), state capital (since 1889) and seat of Hughes co., central S.Dak., on the east bank of the Missouri River, opposite Fort Pierre; inc. 1883. Karl Karl. For German and Swedish kings thus named, use Charles. Peladeau, President and Chief Executive Officer of Quebecor Inc. "However, Quebecor's revenues and operating income were impacted by the conversion of Quebecor World's results into Canadian dollars, as well as the effect on Quebecor World's operating results of challenging conditions in print media markets. Quebecor World continued its restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). program and pressed ahead with its long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. investment program in order to improve the performance of its manufacturing platform. It also decided to focus on its core business and to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose its non-core Commercial group in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. ." Quebecor recorded net income of $56.2 million ($0.87 per basic share) in the second quarter of 2005, compared with $6.6 million ($0.10 per basic share) in the same period of 2004. The $49.6 million improvement was due primarily to a $56.1 million unrealized gain Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. on re-measurement of exchangeable debentures and reductions in reserves for restructuring at Quebecor World, financial expenses and amortization charges, which more than offset the decrease in operating income. Excluding unusual items, which include the reserve for restructuring, impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of assets and other special charges, the unrealized gain on re-measurement of exchangeable debentures, and the loss on debt refinancing Refinancing An extension and/or increase in amount of existing debt. , all net of income tax and non-controlling interest, net income was $27.4 million in the second quarter of 2005 ($0.42 per basic share), compared with $22.6 million ($0.35 per basic share) in the same period of 2004, for an increase of $4.8 million ($0.07 per basic share). In the second quarter of 2005, Quebecor recorded a $56.1 million unrealized gain on re-measurement of the floating rate debentures Series 2001, following the adoption on July July: see month. 1, 2004 of the new consensus in Abstract EIC-56, which rescinds the ability to use hedge accounting Why is hedge accounting necessary? Many financial institutions and corporate businesses (entities) use derivative financial instruments to hedge their exposure to different risks (eg interest rate risk, foreign exchange risk, commodity risk, etc). for exchangeable debentures when the issuer's investment in the underlying shares is consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: or accounted for by the equity method. Since every $1.00 decrease in Quebecor World's stock price results in a $12.5 million unrealized gain, the $4.49 per share decrease in the stock price between April 1, 2005 and June June: see month. 30, 2005 generated an unrealized gain of $56.1 million on re-measurement of exchangeable debentures. The corresponding unrealized loss Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. on the value of Quebecor World shares underlying the exchangeable debentures is not recorded in the books. Quebecor Media's quarterly net income increased by $18.5 million to $35.4 million, compared with $16.9 million in the same period last year. Quebecor World reported a net loss of US$7.8 million (US$0.06 per basic share), compared with net income of US$ 6.6 million (US$0.05 per basic share) in the same quarter of 2004. Year to date For the first six months of 2005, Quebecor's revenues were down $76.5 million (-1.5%) to $5.01 billion. Operating income decreased by $52.1 million (-6.5%) to $753.9 million. A $21.5 million (6.7%) increase in the operating income of Quebecor Media did not entirely offset the decrease at Quebecor World, which was accentuated by the conversion of Quebecor World's results into Canadian dollars. Quebecor generated net income in the amount of $32.6 million ($0.50 per basic share), compared with $11.8 million ($0.18 per basic share) in the same period of 2004. Excluding unusual items, which include the reserve for restructuring, impairment of assets and other special charges, the unrealized gain on re-measurement of exchangeable debentures, and the loss on debt refinancing, all net of income tax and non-controlling interest, net income was $44.1 million in the first six months of 2005 ($0.68 per basic share), compared with $28.6 million ($0.44 per basic share) in the same period of 2004, for an increase of $15.5 million ($0.24 per basic share). Discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. In May 2005, Quebecor World announced plans to dispose of its non-core North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Commercial group in order to focus on its core printing business. As of June 30, 2005, Quebecor World had completed the sale of assets of its Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). facility, a business unit in the non-core Commercial group, and was negotiating the disposal of the remaining plants in the Commercial group. The results and operating cash flows Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. of the divested plant and of the other plants that are about to be sold are therefore reported separately in the Company's consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge , on a line item for discontinued operations. The figures for prior periods cited for purposes of comparison have been reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. to correspond to the presentation used for the second quarter of 2005. Subsequent events - July 6, 2005: TVA Group Inc. repurchased 3,449,199 Class B Non- Voting Shares for a cash consideration of $75.9 million under a substantial issuer bid dated May 19, 2005. As a result of this transaction, Quebecor Media's interest in TVA Group increased by 5.1 percentage points, from 40.1% on June 30, 2005 to 45.2% as of July 6, 2005. - July 15, 2005: Videotron ltee repurchased, for a cash consideration of $99.3 million, the 9?% Senior Notes due 2007 issued by its CF Cable TV Inc. subsidiary. In connection with this transaction, Videotron will recognize a loss on settlement of debt estimated at $0.7 million in the third quarter of 2005. - July 19, 2005: Quebecor Media repurchased US$128.2 million principal amount of its Senior Notes and US$12.1 million principal amount of its Senior Discount Notes under offers dated June 20, 2005. The subsidiary paid a cash consideration of $215.3 million to purchase the Notes, including the redemption premium and the cost of settlement of the cross-currency swap agreements. Quebecor Media will therefore recognize a loss on settlement of debt estimated at $60.5 million in the third quarter of 2005. On August 2, 2005, the Company's Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a quarterly dividend of $0.05 per share on Class A Multiple Voting Noun 1. multiple voting - the act of voting in more than one place by the same person at the same election (illegal in U.S.) balloting, vote, voting, ballot - a choice that is made by counting the number of people in favor of each alternative; "there were only 17 Shares and Class B Subordinate Voting Shares Voting Shares Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors. Notes: Different classes of shares, such as preferred stock, sometimes don't allow for voting rights. , payable on September September: see month. 13, 2005 to shareholders of record at the close of business on August 19, 2005. Full financial information For a detailed analysis of the results of Quebecor Inc. and its subsidiaries for the second quarter and first six months of 2005, please refer to the consolidated financial statements of Quebecor and Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial at www.quebecor.com/InvestorCenter/QIFinancialReports.aspx. A summary segmented analysis and definitions of operating income and free cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses are provided below. Conference call for investors and Webcast Quebecor Inc. will hold a conference call to discuss its second quarter 2005 results on Tuesday Tuesday: see week. , August 2, 2005, at 4:00 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . There will be a question period reserved for financial analysts. To access the conference call, please dial 1 877 293-8052 or (403) 269-3852, access code 5151260. A tape recording of the call will be available from August 2 through September 3, 2005, by dialling 1 877 293-8133 or (403) 266-2079, access code 287589. The conference call will also be broadcast live on Quebecor's Web site at www.quebecor.com/InvestorCenter/QIConferenceCall.aspx. It is advisable ad·vis·a·ble adj. Worthy of being recommended or suggested; prudent. ad·vis  a·bil to ensure the appropriate software is installed before accessing the
call. Instructions and links to free player downloads are available at
the Internet address There are two kinds of addresses that are widely used on the Internet. One is a person's e-mail address, and the other is the address of a Web site, which is known as a URL. Following is an explanation of Internet e-mail addresses only. For more on URLs, see URL and Internet domain name. shown above.Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains forward-looking statements, which are subject to known and unknown risks and uncertainties that could cause the Company's actual results to differ materially from those set forth in the forward-looking statements. These risks include changes in customer demand for the Company's products, changes in raw material and equipment costs and availability, seasonal fluctuations in customer orders, pricing actions by competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , and general changes in the economic environment. The Company Quebecor Inc. (TSX: QBR.MV.A, QBR.SV.B) is a communications company Communications Company is a communications unit of the United States Marine Corps. They are part of Combat Logistics Regiment 37 , 3rd Marine Logistics Group (3MLG) and III Marine Expeditionary Force (III MEF). The unit is based out of the Marine Corps Base Camp Smedley D. with operations in North America, Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and Asia. It has
two operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , Quebecor World Inc. and Quebecor Media Inc.
Quebecor World is one of the largest commercial print media services
companies in the world. Quebecor Media owns operating companies operating companyA business that engages in transactions with outsiders. in numerous media-related businesses: Videotron ltee, the largest cable operator in Quebec Quebec, city, Canada Quebec, Fr. Québec, city (1991 pop. 167,517), provincial capital, S Que., Canada, at the confluence of the St. Lawrence and St. Charles rivers. and a major Internet Service Provider Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. and provider of telephone services; Videotron Telecom Ltd., a provider of business telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. ; Sun Media Corporation, Canada's largest national chain of tabloids and community newspapers; TVA TVA: see Tennessee Valley Authority. Group Inc., operator of the largest French-language general-interest television network in Quebec, a number of specialty channels A specialty channel (or speciality channel) is a television channel which consists of programming focused on a single type or targeted at a specific demographic. , and the English-language general-interest station Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing 1; Canoe Inc., operator of a network of English- and French-language Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the properties in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of ; Nurun Nurun Inc. (TSX: NUR), a subsidiary of Quebecor Media Inc., is a global company which strategizes, executes, and measures interactive programs that use new technologies.[1] Nurun is known as nurun ant|farm interactive in the United States. Inc., an important interactive technologies and communications agency in Canada, the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Europe; companies engaged in book publishing book publishing. The term publishing means, in the broadest sense, making something publicly known. Usually it refers to the issuing of printed materials, such as books, magazines, periodicals, and the like. and magazine publishing; and production, distribution and retailing of cultural products through Archambault Group Inc., the largest chain of music stores in eastern Canada Eastern Canada (also the Eastern provinces) is the region of Canada generally considered to be east of Manitoba, consisting of the following provinces:
SEGMENTED ANALYSIS AND DEFINITIONS Quebecor World Inc. Quebecor World's revenues increased by US$20.4 million (1.4%) to US$1.49 billion in the second quarter of 2005. Excluding the favourable impact of the fluctuation Fluctuation A price or interest rate change. of currencies other than the U.S. dollar (US$33.9 million), revenues declined by 0.9%. The decrease was due to lower prices and reductions in some volumes during the quarter. Quarterly operating income was US$161.8 million, compared with US$187.7 million in the same period of 2004. The US$25.9 million (-13.8%) decrease mainly reflects lower gross margins resulting from sustained pricing pressures, which were not entirely offset by economies yielded by restructuring initiatives. Selling, general and administrative expenses and securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. fees totalled US$104.7 million in the second quarter of 2005, compared with US$105.9 million in the same quarter of 2004. The US$1.2 million (-1.1%) decrease resulted primarily from cost-containment and work-force reduction initiatives, which more than offset the unfavourable impact of currency fluctuations on selling, general and administrative expenses. Quebecor recorded reserves for restructuring, impairment of assets and other special charges of $39.4 million in the second quarter of 2005, a reduction from the $68.2 million charge recorded in the same period of 2004. These reserves included a charge for impairment of certain assets in France and restructuring initiatives, such as approval of phase 2 of the downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing of the Corby Corby, town (1991 pop. 48,704) and district, Northamptonshire, central England. Situated over one of the world's largest ironstone fields, Corby has grown rapidly since the 1930s, when new techniques of steel production were developed. (U.K.) plant, the closure of a Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. facility, and other headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. reductions across the platform. Quebecor World estimates it will incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. additional restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of US$14.7 million in the remaining quarters of 2005 and the year 2006 in connection with initiatives announced and approved prior to June 30, 2005. A total of 1089 jobs were eliminated in the first half of 2005 and a further 163 will be cut by the end of the year as a result of the execution of prior periods' initiatives. Quebecor World's year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. revenues were up US$96.6 million (3.3%) to US$3.05 billion. Operating income was down US$29.6 million (-8.2%) to US$331.8 million, mainly because of lower gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. resulting from sustained pricing pressures, higher shipping costs, and the recognition of higher specific charges in the first half of 2005 than in the same period of 2004. In the second quarter of 2005, Quebecor World generated free cash flow from operations of US$116.8 million, compared with US$71.3 million in the same period of 2004. The US$45.5 million improvement derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. primarily from the favourable variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality in the net change in non-cash balances related to operations. Stated in Canadian dollars, Quebecor World's revenues amounted to $1.86 billion in the second quarter of 2005, a decrease of $141.4 million (-7.1%) due essentially to the impact of the conversion of results into Canadian dollars. Operating income was down $53.1 million (-20.9%) to $201.4 million. The impact of translation into Canadian dollars accentuated the decrease in operating income. Also stated in Canadian dollars, Quebecor World's year-to-date revenues were $3.76 billion, a $183.8 million decrease. Operating income was down $73.8 million (-15.3%) to $409.4 million. Quebecor Media Inc. Quebecor Media's revenues rose $56.0 million (9.1%) to $671.1 million in the second quarter of 2005. All business segments without exception reported revenue increases. Operating income climbed $1.8 million (0.9%) to $193.8 million on the strength of increases in five of the seven business segments. Year to date: Revenues up $118.9 million (10.1%) to $1.30 billion; operating income up $21.5 million (6.7%) to $344.8 million. Cable segment In the second quarter of 2005, the Cable segment increased its revenues by $28.8 million (13.6%) and its operating income by $3.9 million (4.3%), primarily as a result of customer growth and improved service profitability. The revenues of Le SuperClub Videotron ltee rose by $2.7 million (26.7%) and its operating income by $0.6 million (23.7%) due to the favourable impact of the acquisition of Jumbo jum·bo n. pl. jum·bos An unusually large person, animal, or thing. adj. Unusually large: jumbo shrimp; a jumbo jet. Entertainment Inc. and higher retail sales. The customer base for illico Illico is a free bimonthly French LGBT magazine, founded in March of 1988. Overview It has a circulation of around 40,000 and is composed primarily of articles and opinion polls about current events, as well as information relating to gay culture, activism, and Digital TV grew by 25,800 in the second quarter of 2005 to 381,000, while the number of customers for all cable television services decreased by 11,900 during the quarter. Cable Internet Internet access via the cable companies. There are two kinds of service. One uses a cable modem to connect to a computer, and the other uses an enhanced cable box that provides Internet access directly at the TV. access services registered customer growth of 18,000 to a total of 548,000 customers. At the end of the second quarter, the residential telephone service had 41,800 customers, an increase of 26,900 from the previous quarter. Videotron's net monthly ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. (average revenue per user) increased by $4.83 (10.5%) from the same time last year to $50.86. Free cash flow from operations was $62.0 million, compared with $41.6 million in the same quarter of 2004. The $20.4 million increase was mainly due to the favourable variance in the net change in non-cash balances related to operations. Year to date: Cable segment's revenues up $54.1 million (12.9%) to $473.2 million; operating income up by $23.3 million (14.2%) to $187.1 million. Newspapers segment The revenues of the Newspapers segment were up $6.3 million (2.7%) to $239.5 million in the second quarter of 2005. Advertising revenues rose 4.6%, mainly because of larger total volumes. Distribution revenues also rose, while circulation and commercial printing revenues decreased. Operating income was down $3.2 million (-4.9%) to $61.7 million. The higher revenues did not entirely offset an increase in operating costs operating costs npl → gastos mpl operacionales . The operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of the free dailies rose by $1.0 million between the second quarters of 2004 and 2005, mainly as a result of the launch of the Vancouver Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. newspaper. Operating income decreased by $3.1 million (-5.9%) at the urban dailies (excluding the free dailies) and increased by $2.4 million (13.0%) at the community papers. Between the first and second quarters of 2005, the revenues of the free dailies increased by $0.9 million. Free cash flow from operations was $34.0 million in the second quarter of 2005, compared with $47.4 million in the same period of 2004. Higher investment in non-cash balances related to operations accounted for most of the decrease. Year to date: Newspapers segment's revenues up $18.7 million (4.3%) to $452.1 million; operating income down $1.2 million (-1.1%) to $103.4 million. Sun Media Corporation acquired the assets of four community newspapers in the second quarter of 2005: the Morinville Mirror and Redwater redwater red urine; see hemoglobinuria, hematuria, myoglobinuria, phenothiazine, phenolphthalein, xanthorrhoea. redwater fever see babesiosis. Tribune tribune, in ancient Rome, one of various officers. The history of the office of tribune is closely associated with the struggle of the plebs against the patrician class to achieve a more equitable position in the state. From c.508 B.C. in Alberta Alberta (ălbûr`tə), province (2001 pop. 2,974,807), 255,285 sq mi (661,188 sq km), including 6,485 sq mi (16,796 sq km) of water surface, W Canada. , and The Weekender and L'Horizon in Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. . Broadcasting segment The Broadcasting segment's revenues increased $9.7 million (10.3%) to $104.1 million in the second quarter of 2005. Revenues from broadcasting operations rose $5.7 million (7.8%) due primarily to the favourable impact on revenues of the acquisition of Toronto 1 and higher revenues from commercial production and other sources. Distribution revenues rose $3.3 million, driven by the successful video release of the film White Noise. Publishing revenues grew by $1.5 million because of higher advertising revenues and increased newsstand sales. Operating income decreased by $5.1 million (-17.2%) to $24.6 million, mainly because of higher programming costs, the operating losses of the television station Toronto 1 and the new specialty channels Mystere and ARGENT ar·gent n. 1. Heraldry The metal silver, represented by the color white. 2. Archaic Silver or something resembling it. , and spending on advertising and marketing in response to competition in the publishing segment. Year to date: Revenues up $20.5 million (11.4%) to $200.8 million; operating income down $10.7 million (-25.4%) to $31.4 million. During the period January January: see month. 3 through May 22, 2005, 24 of the 30 top-rated shows in Quebec were on the TVA Network. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. BBM BBM Brokeback Mountain (book/movie) BBM Bureau of Broadcast Measurement BBM Bachelor of Business Management BBM Break Before Make BBM Bread Board Model BBM Bulk Business Mail BBM Bahn Brenner Motorsport People Meter The People Meter is a device and system used by Nielsen Media Research in the USA to allow a relatively passive measurement of the viewing habits of TV and cable audiences. The people meter was invented by a British company called Audits of Great Britain, or AGB for short. survey results, the TVA Network had a 29% audience share. Other segments of Quebecor Media Inc. The results of the Leisure and Entertainment, Business Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , Interactive Technologies and Communications, and Internet/Portals segments are reported in the attached summary quarterly financial statements. Highlights of the second quarter of 2005 include: - Leisure and Entertainment: Revenues up $1.1 million (2.1%) to $52.6 million; operating income up $0.9 million (45.0%) to $2.9 million. Revenues of the Books segment grew by $2.6 million, mainly because of the results of CEC Publishing Inc. At Archambault Group Inc., higher retail sales were not enough to offset a decrease in distribution revenues. - Business Telecommunications: Revenues up $6.3 million (35.4%) to $24.1 million; operating income up $2.8 million (71.8%) to $6.7 million, due in large part to a hosting project for Quebecor World and to the residential telephone service. - Interactive Technologies and Communications: Revenues up $4.5 million (33.8%) because of the takeover of Ant Farm Interactive LLC and the acquisition of new customers in Europe and in the government market. Operating income more than doubled, rising by $0.9 million (150.0%) to $1.5 million. - Internet/Portals: Revenues up $4.4 million (55.0%). Operating income more than doubled to $2.2 million. The $1.3 million (144.4%) increase was fuelled by revenue growth, which translated into improved profitability. Definitions Operating income In its analysis of operating results, the Company defines operating income (or loss) as earnings (or loss) before amortization, financial expenses, reserve for restructuring of operations, impairment of assets and other special charges, gains (losses) on re-measurement of exchangeable debentures, gains (losses) on sales of businesses, shares of a subsidiary and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. , net gain (loss) on debt refinancing, and income taxes. Dividends on Preferred Shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. of subsidiaries, non-controlling interest and the results of discontinued operations are not considered in the computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of operating income. Operating income (or loss) as defined above is not a measure of results that is consistent with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . 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 is not intended to represent funds available for debt service, dividends, reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. or other discretionary uses, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles. Operating income (or loss) is used by the Company because management believes it is a meaningful measure of performance. Operating income (or loss) is commonly used by the investment community to analyze an·a·lyze v. 1. To examine methodically by separating into parts and studying their interrelations. 2. To separate a chemical substance into its constituent elements to determine their nature or proportions. 3. and compare the performance of companies in the industries in which the Company is engaged. The Company's definition of operating income (or loss) may not be identical to similarly titled measures reported by other companies. Free cash flow from operations The Company uses free cash flow from operations as a measure of liquidity. Free cash flow from operations is used to represent funds available for business acquisitions, the payment of dividends on equity shares, and the repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . Free cash flow from operations is not a measure of liquidity that is consistent with generally accepted accounting principles. 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. The Company's definition of free cash flow from operations may not be identical to similarly titled measures reported by other companies.
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in millions of Canadian dollars, except for earnings per share data)
(unaudited)
Three months ended June 30 Six months ended June 30
---------------------------------------------------------------------
---------------------------------------------------------------------
2005 2004 2005 2004
---------------------------------------------------------------------
REVENUES
Printing $1,859.4 $2,000.8 $3,761.7 $3,945.5
Cable 241.1 212.3 473.2 419.1
Newspapers 239.5 233.2 452.1 433.4
Broadcasting 104.1 94.4 200.8 180.3
Leisure and
Entertainment 52.6 51.5 101.8 99.0
Business
Telecommunications 24.1 17.8 47.7 34.6
Iteractive
Technologies and
Communications 17.8 13.3 33.3 25.0
Iternet/Portals 12.4 8.0 23.5 16.1
Head office and
inter-segment (41.8) (32.2) (79.9) (62.3)
---------------------------------------------------------------------
2,509.2 2,599.1 5,014.2 5,090.7
COST OF SALES AND
SELLING AND
ADMINISTRATIVE
EXPENSES (2,113.0) (2,153.3) (4,260.3) (4,284.7)
---------------------------------------------------------------------
INCOME BEFORE
UNDERNOTED ITEMS 396.2 445.8 753.9 806.0
Amortization (151.2) (167.8) (304.1) (327.5)
Financial expenses (118.5) (140.7) (238.1) (272.2)
Reserve for
restructuring of
operations,
impairment of
assets and
other special
charges (39.4) (68.2) (79.7) (73.7)
Gain on
re-measurement of
exchangeable
debentures 56.1 - 22.5 -
Gain on disposal
of businesses and
other assets 0.1 1.3 0.1 1.3
Loss on debt
refinancing - - - (2.6)
---------------------------------------------------------------------
INCOME BEFORE INCOME
TAXES 143.3 70.4 154.6 131.3
Income taxes:
Current 19.8 30.6 35.9 41.6
Future 27.0 (7.9) 20.9 0.3
---------------------------------------------------------------------
46.8 22.7 56.8 41.9
---------------------------------------------------------------------
96.5 47.7 97.8 89.4
Dividends on
preferred shares
of subsidiaries,
net of income taxes (12.1) (11.9) (24.3) (23.8)
Non-controlling
interest (24.7) (28.7) (37.2) (54.5)
---------------------------------------------------------------------
INCOME FROM CONTINUING
OPERATIONS 59.7 7.1 36.3 11.1
(Loss) income from
discontinued
operations (3.5) (0.5) (3.7) 0.7
---------------------------------------------------------------------
NET INCOME $56.2 $6.6 $32.6 $11.8
---------------------------------------------------------------------
---------------------------------------------------------------------
EARNINGS PER SHARE
Basic and diluted
From continuing
operations $0.92 $0.11 $0.56 $0.17
From discontinued
operations (0.05) (0.01) (0.06) 0.01
Net income 0.87 0.10 0.50 0.18
---------------------------------------------------------------------
---------------------------------------------------------------------
Weighted average
number of shares
outstanding (in
millions) 64.6 64.6 64.6 64.6
---------------------------------------------------------------------
---------------------------------------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
SEGMENTED INFORMATION
(in millions of Canadian dollars)
(unaudited)
Three months ended June 30 Six months ended June 30
---------------------------------------------------------------------
---------------------------------------------------------------------
2005 2004 2005 2004
---------------------------------------------------------------------
Income before
amortization,
financial
expenses, reserve
for restructuring
of operations,
impairment of
assets and other
special charges,
gain on
re-measurement of
exchangeable
debentures, gain
on disposal of
businesses and
other assets and
loss on debt
refinancing
Printing $201.4 $254.5 $409.4 $483.2
Cable 95.0 91.1 187.1 163.8
Newspapers 61.7 64.9 103.4 104.6
Broadcasting 24.6 29.7 31.4 42.1
Leisure and
Entertainment 2.9 2.0 4.9 4.1
Business
Telecommunications 6.7 3.9 13.7 7.1
Interactive Technologies
and Communications 1.5 0.6 2.2 1.1
Internet/Portals 2.2 0.9 4.4 2.1
General corporate
revenues (expenses) 0.2 (1.8) (2.6) (2.1)
---------------------------------------------------------------------
$396.2 $445.8 $753.9 $806.0
---------------------------------------------------------------------
---------------------------------------------------------------------
Amortization
Printing $95.4 $112.1 $193.4 $218.3
Cable 34.8 36.5 69.2 69.9
Newspapers 6.4 6.4 12.8 12.8
Broadcasting 3.6 3.0 7.0 6.1
Leisure and
Entertainment 1.0 0.9 2.0 1.9
Business
Telecommunications 8.8 8.2 17.4 16.8
Interactive Technologies
and Communications 0.4 0.4 0.8 0.7
Internet/Portals 0.2 0.2 0.4 0.4
Head Office 0.6 0.1 1.1 0.6
---------------------------------------------------------------------
$151.2 $167.8 $304.1 $327.5
---------------------------------------------------------------------
---------------------------------------------------------------------
Additions to property,
plant and equipment
Printing $90.9 $44.7 $158.2 $86.9
Cable 37.4 29.4 71.0 60.5
Newspapers 4.3 4.8 6.9 8.5
Broadcasting 2.7 2.2 6.9 3.6
Leisure and
Entertainment 1.1 0.6 2.8 1.4
Business
Telecommunications 2.6 4.6 6.3 8.6
Interactive Technologies
and Communications 0.4 0.3 0.9 0.6
Internet/Portals 0.2 0.2 0.2 0.3
Head office 0.9 0.4 3.7 0.5
---------------------------------------------------------------------
$140.5 $87.2 $256.9 $170.9
---------------------------------------------------------------------
---------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(in millions of Canadian dollars)
(unaudited)
Three months ended June 30 Six months ended June 30
---------------------------------------------------------------------
---------------------------------------------------------------------
2005 2004 2005 2004
---------------------------------------------------------------------
Balance at beginning
of period $1,209.1 $1,133.5 $1,235.3 $1,128.3
Net income 56.2 6.6 32.6 11.8
---------------------------------------------------------------------
1,265.3 1,140.1 1,267.9 1,140.1
Dividends (3.2) - (5.8) -
Excess of purchase
price over carrying
value of Class B
Subordinate Shares
acquired (3.7) - (3.7) -
---------------------------------------------------------------------
Balance at end
of period $1,258.4 $1,140.1 $1,258.4 $1,140.1
---------------------------------------------------------------------
---------------------------------------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of Canadian dollars)
(unaudited)
Three months ended June 30 Six months ended June 30
---------------------------------------------------------------------
---------------------------------------------------------------------
2005 2004 2005 2004
---------------------------------------------------------------------
Cash flows related
to operations:
Income from continuing
operations $59.7 $7.1 $36.3 $11.1
Adjustments for:
Amortization of
property, plant and
equipment 149.2 167.1 300.4 324.9
Amortization of
deferred charges
and other assets 2.0 0.7 3.7 2.6
Amortization of
deferred financing
costs and long-term
debt discount 16.3 15.7 32.5 31.1
Amortization of
deferred client
incentives 8.1 8.5 15.5 16.6
Impairment of
assets and non
cash portion of
restructuring 19.8 55.6 50.1 55.6
(Gain) loss on
ineffective
derivative
instruments and
on foreign currency
translation on
unhedged long-term
debt (1.0) 8.5 2.2 10.2
Loss on revaluation
of the additional
amount payable 3.5 7.4 5.3 9.8
(Gain) loss on
disposal of
businesses, property,
plant and equipment
and other assets (4.5) 1.9 (5.3) 10.6
Gain on re-measurement
of exchangeable
debentures (56.1) - (22.5) -
Loss on debt
refinancing - - - 2.6
Future income taxes 27.0 (7.9) 20.9 0.3
Non-controlling
interest 24.7 28.7 37.2 54.5
Other 2.7 1.1 5.8 1.7
---------------------------------------------------------------------
251.4 294.4 482.1 531.6
Net change in
non-cash balances
related to
operations (net
of the effect
of business
acquisitions
and disposals) 135.0 (2.2) (171.8) (330.1)
---------------------------------------------------------------------
Cash flows provided
by continuing
operations 386.4 292.2 310.3 201.5
Cash flows provided
by (used in)
discontinued
operations 1.0 (14.4) 3.0 (11.0)
---------------------------------------------------------------------
Cash flows provided
by operations 387.4 277.8 313.3 190.5
---------------------------------------------------------------------
Cash flows related
to financing
activities:
Net (decrease)
increase in bank
indebtedness (2.9) (0.3) 13.8 0.2
Net (repayments)
borrowing under
revolving bank
facilities and
commercial paper (78.6) (126.8) (43.1) 61.6
Repayment of
long-term debt (5.7) (48.0) (9.5) (109.5)
Net (increase)
reduction in
prepayments under
cross-currency
swap agreements - - (0.1) 3.5
Repayment under an
interest rate swap (1.3) - (2.3) -
Issuance of capital
stock by
subsidiaries 2.2 6.1 14.4 11.6
Repurchase of Class B
Subordinate Shares (5.0) - (5.0) -
Dividends (3.2) - (5.8) -
Dividends paid to
non-controlling
shareholders (18.6) (17.6) (37.1) (33.4)
Other 0.1 0.3 (0.4) 0.4
---------------------------------------------------------------------
Cash flows used in
financing activities (113.0) (186.3) (75.1) (65.6)
---------------------------------------------------------------------
Cash flows related to
investing activities:
Business acquisitions,
net of cash and cash
equivalents acquired (59.2) (14.3) (73.2) (28.8)
Proceeds from disposal
of businesses, net
of cash and cash
equivalents disposed 1.2 (8.9) 5.3 (8.9)
Additions to property,
plant and equipment (140.5) (87.2) (256.9) (170.9)
Net proceeds from
disposal of
derivatives
instruments - - 85.7 -
Net decrease in
temporary investments 44.2 48.4 99.6 194.1
(Increase) decrease
in cash and cash
equivalents and
temporary
investments
held in trust (0.1) - 0.3 -
Proceeds from disposal
of assets 4.6 3.7 9.3 8.1
Other (0.8) (0.5) (1.2) (1.4)
---------------------------------------------------------------------
Cash flows used in
investing activities (150.6) (58.8) (131.1) (7.8)
---------------------------------------------------------------------
Net increase in cash
and cash equivalents 123.8 32.7 107.1 117.1
Effect of exchange
rate changes on cash
and cash equivalents
denominated in foreign
currencies 21.3 (18.0) 31.3 1.0
Cash and cash
equivalents at
beginning of period 147.5 196.5 154.2 93.1
---------------------------------------------------------------------
Cash and cash
equivalents at end
of period $292.6 $211.2 $292.6 $211.2
---------------------------------------------------------------------
---------------------------------------------------------------------
Cash and cash
equivalents
consist of:
Cash $19.0 $42.4
Cash equivalents 273.6 168.8
---------------------------------------------------------------------
$292.6 $211.2
---------------------------------------------------------------------
---------------------------------------------------------------------
Cash interest
payments $34.6 $56.1 $204.8 $220.1
Cash payments (net
of refunds) for
income taxes 32.0 61.8 74.7 84.9
---------------------------------------------------------------------
---------------------------------------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions of Canadian dollars)
June 30 December 31
---------------------------------------------------------------------
---------------------------------------------------------------------
2005 2004
---------------------------------------------------------------------
(unaudited) (audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $292.6 $154.2
Cash and cash equivalents and temporary
investments held in trust(market value
of $10.5 million ($10.8 million in 2004)) 10.5 10.8
Temporary investments (market value of
$0.1 million ($99.7 million in 2004)) 0.1 99.7
Accounts receivable 803.1 824.8
Income taxes 97.4 63.9
Inventories and investments in televisual
products and movies 627.5 638.9
Prepaid expenses 54.1 51.9
Future income taxes 126.2 122.6
---------------------------------------------------------------------
2,011.5 1,966.8
LONG-TERM INVESTMENTS (market value of
$259.2 million ($386.7 million in 2004)) 350.6 352.6
PROPERTY, PLANT AND EQUIPMENT 4,270.1 4,388.4
FUTURE INCOME TAXES 61.8 81.0
OTHER ASSETS 459.8 527.3
GOODWILL 7,079.6 7,088.4
---------------------------------------------------------------------
$14,233.4 $14,404.5
---------------------------------------------------------------------
---------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Bank indebtedness $14.6 $0.8
Accounts payable, accrued charges and
deferred revenue 1,694.5 1,870.0
Income taxes 69.0 68.0
Future income taxes 7.3 5.3
Additional amount payable 106.7 101.4
Current portion of long-term debt 14.6 16.7
---------------------------------------------------------------------
1,906.7 2,062.2
LONG-TERM DEBT 4,937.6 4,888.2
EXCHANGEABLE DEBENTURES 544.7 692.7
CONVERTIBLE NOTES 139.3 135.4
OTHER LIABILITIES 958.2 843.8
FUTURE INCOME TAXES 773.2 785.4
NON-CONTROLLING INTEREST 3,507.0 3,553.2
SHAREHOLDERS' EQUITY:
Capital stock 347.9 349.2
Retained earnings 1,258.4 1,235.3
Translation adjustment (139.6) (140.9)
---------------------------------------------------------------------
1,466.7 1,443.6
---------------------------------------------------------------------
$14,233.4 $14,404.5
---------------------------------------------------------------------
---------------------------------------------------------------------
QUEBECOR MEDIA INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in millions of Canadian dollars)
(unaudited)
Three months ended June 30 Six months ended June 30
---------------------------------------------------------------------
---------------------------------------------------------------------
2005 2004 2005 2004
---------------------------------------------------------------------
REVENUES
Cable $241.1 $212.3 $473.2 $419.1
Newspapers 239.5 233.2 452.1 433.4
Broadcasting 104.1 94.4 200.8 180.3
Leisure and
Entertainment 52.6 51.5 101.8 99.0
Business
Telecommunications 24.1 17.8 47.7 34.6
Interactive
Technologies and
Communications 17.8 13.3 33.3 25.0
Internet/Portals 12.4 8.0 23.5 16.1
Head Office and
inter-segment (20.5) (15.4) (36.6) (30.6)
---------------------------------------------------------------------
671.1 615.1 1,295.8 1,176.9
COST OF SALES AND
SELLING AND
ADMINISTRATIVE
EXPENSES (477.3) (423.1) (951.0) (853.6)
---------------------------------------------------------------------
INCOME BEFORE
UNDERNOTED ITEMS 193.8 192.0 344.8 323.3
Amortization (55.7) (55.8) (110.3) (109.2)
Financial expenses (70.9) (87.7) (145.6) (163.3)
Gain on disposal of
businesses and other
assets 0.1 1.3 0.1 1.3
---------------------------------------------------------------------
INCOME BEFORE INCOME
TAXES 67.3 49.8 89.0 52.1
Income taxes:
Current 8.8 5.3 12.2 6.2
Future 14.7 15.1 18.8 15.1
---------------------------------------------------------------------
23.5 20.4 31.0 21.3
---------------------------------------------------------------------
43.8 29.4 58.0 30.8
Non-controlling
interest (8.4) (11.8) (9.8) (17.5)
---------------------------------------------------------------------
INCOME FROM CONTINUING
OPERATIONS 35.4 17.6 48.2 13.3
Loss from discontinued
operations - (0.7) - (1.1)
---------------------------------------------------------------------
NET INCOME $35.4 $16.9 $48.2 $12.2
---------------------------------------------------------------------
---------------------------------------------------------------------
QUEBECOR MEDIA INC. AND ITS SUBSIDIARIES
SEGMENTED INFORMATION
(in millions of Canadian dollars)
(unaudited)
Three months ended June 30 Six months ended June 30
---------------------------------------------------------------------
---------------------------------------------------------------------
2005 2004 2005 2004
---------------------------------------------------------------------
Income before
amortization,
financial expenses
and gain on
disposal of
businesses and
other assets
Cable $95.0 $91.1 $187.1 $163.8
Newspapers 61.7 64.9 103.4 104.6
Broadcasting 24.6 29.7 31.4 42.1
Leisure and
Entertainment 2.9 2.0 4.9 4.1
Business
Telecommunications 6.7 3.9 13.7 7.1
Interactive
Technologies and
Communications 1.5 0.6 2.2 1.1
Internet/Portals 2.2 0.9 4.4 2.1
General corporate
expenses (0.8) (1.1) (2.3) (1.6)
---------------------------------------------------------------------
$193.8 $192.0 $344.8 $323.3
---------------------------------------------------------------------
---------------------------------------------------------------------
Amortization
Cable $34.8 $36.5 $69.2 $69.9
Newspapers 6.4 6.4 12.8 12.8
Broadcasting 3.6 3.0 7.0 6.1
Leisure and
Entertainment 1.0 0.9 2.0 1.9
Business
Telecommunications 8.8 8.2 17.4 16.8
Interactive
Technologies and
Communications 0.4 0.4 0.8 0.7
Internet/Portals 0.2 0.2 0.4 0.4
Head Office 0.5 0.2 0.7 0.6
---------------------------------------------------------------------
$55.7 $55.8 $110.3 $109.2
---------------------------------------------------------------------
---------------------------------------------------------------------
Additions to property,
plant and equipment
Cable $37.4 $29.4 $71.0 $60.5
Newspapers 4.3 4.8 6.9 8.5
Broadcasting 2.7 2.2 6.9 3.6
Leisure and
Entertainment 1.1 0.6 2.8 1.4
Business
Telecommunications 2.6 4.6 6.3 8.6
Interactive
Technologies and
Communications 0.4 0.3 0.9 0.6
Internet/Portals 0.2 0.2 0.2 0.3
Head Office 0.3 (0.1) 1.8 0.1
---------------------------------------------------------------------
$49.0 $42.0 $96.8 $83.6
---------------------------------------------------------------------
---------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF DEFICIT
(in millions of Canadian dollars)
(unaudited)
Three months ended June 30 Six months ended June 30
---------------------------------------------------------------------
---------------------------------------------------------------------
2005 2004 2005 2004
---------------------------------------------------------------------
Deficit at beginning
of period $2,521.8 $2,602.5 $2,529.6 $2,597.8
Net income (35.4) (16.9) (48.2) (12.2)
---------------------------------------------------------------------
2,486.4 2,585.6 2,481.4 2,585.6
Dividends 5.0 - 10.0 -
---------------------------------------------------------------------
Deficit at end of
period $2,491.4 $2,585.6 $2,491.4 $2,585.6
---------------------------------------------------------------------
---------------------------------------------------------------------
QUEBECOR MEDIA INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of Canadian dollars)
(unaudited)
Three months ended June 30 Six months ended June 30
---------------------------------------------------------------------
---------------------------------------------------------------------
2005 2004 2005 2004
---------------------------------------------------------------------
Cash flows related
to operations:
Income from continuing
operations $35.4 $17.6 $48.2 $13.3
Adjustments for:
Amortization of
property, plant
and equipment 53.7 54.6 106.8 106.4
Amortization of
deferred charges
and of other assets 2.0 1.2 3.5 2.8
Amortization of
deferred financing
costs and long-term
debt discount 15.4 14.2 30.7 28.1
(Gain) loss on
ineffective
derivative
instruments and
on foreign currency
translation on
unhedged long-term
debt (1.3) 8.8 1.5 10.0
Loss on revaluation of
the additional amount
payable 3.5 7.4 5.3 9.8
Loss on disposal of
businesses, plant,
property and
equipment and other
assets 0.1 2.3 0.1 10.9
Non-controlling
interest 8.4 11.8 9.8 17.5
Future income taxes 14.7 15.1 18.8 15.1
Other (0.4) 1.8 (0.3) 1.5
---------------------------------------------------------------------
131.5 134.8 224.4 215.4
Net change in non-cash
balances related to
operations (net of
effect of business
acquisitions and
disposals) 25.7 10.0 (91.1) (70.4)
---------------------------------------------------------------------
Cash flows provided
by continuing
operations 157.2 144.8 133.3 145.0
Cash flows provided by
discontinued
operations - 0.2 - 0.6
---------------------------------------------------------------------
Cash flows provided by
operations 157.2 145.0 133.3 145.6
---------------------------------------------------------------------
Cash flows related to
financing activities:
Net (decrease) increase
in bank indebtedness (2.4) (0.3) 13.7 0.6
Net repayments under
revolving bank
facilities (9.5) (101.1) (4.8) (114.5)
Repayment of long-term
debt (0.8) (31.6) (1.7) (45.0)
Net (increase)
reduction in
prepayments under
cross-currency swap
agreements - - (0.1) 3.5
Repayment under an
interest rate swap (1.3) - (2.3) -
Issuance of capital
stock by subsidiaries - 1.4 - 2.6
Dividends (5.0) - (10.0) -
Dividends paid to
non-controlling
shareholders (1.3) (1.3) (2.6) (2.4)
Other - - (0.5) -
---------------------------------------------------------------------
Cash flows used in
financing activities (20.3) (132.9) (8.3) (155.2)
---------------------------------------------------------------------
Cash flows related to
investing activities:
Businesses
acquisitions, net of
cash and cash
equivalents acquired (3.5) (12.0) (9.6) (25.7)
Proceeds from disposal
of businesses, net of
cash and cash
equivalents disposed 0.5 (8.9) 4.3 (8.9)
Additions to property,
plant and equipment (49.0) (42.0) (96.8) (83.6)
Additions to other
assets (0.4) (1.2) (1.4) (1.7)
Net decrease in
temporary investments 44.2 48.4 99.6 194.1
Proceeds from disposal
of assets 2.6 3.1 2.8 6.2
Other (0.1) (0.2) 0.1 (0.5)
---------------------------------------------------------------------
Cash flows (used in)
provided by investing
activities (5.7) (12.8) (1.0) 79.9
---------------------------------------------------------------------
Net increase (decrease)
in cash and cash
equivalents 131.2 (0.7) 124.0 70.3
Effect of exchange rate
changes on cash and
cash equivalents
denominated in foreign
currencies (0.1) 0.3 (0.1) 0.5
Cash and cash
equivalents at
beginning of period 101.6 174.8 108.8 103.6
---------------------------------------------------------------------
Cash and cash
equivalents at end
of period $232.7 $174.4 $232.7 $174.4
---------------------------------------------------------------------
---------------------------------------------------------------------
Cash and cash
equivalents
consist of:
Cash $- $17.1
Cash equivalents 232.7 157.3
---------------------------------------------------------------------
$232.7 $174.4
---------------------------------------------------------------------
---------------------------------------------------------------------
Cash interest payments $5.3 $16.6 $117.7 $113.0
Cash payments (net of
refunds) for income
taxes 7.0 4.6 22.7 17.5
---------------------------------------------------------------------
---------------------------------------------------------------------
QUEBECOR MEDIA INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in millions of Canadian dollars)
June 30 December 31
---------------------------------------------------------------------
---------------------------------------------------------------------
2005 2004
---------------------------------------------------------------------
(unaudited) (audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $232.7 $108.8
Temporary investments (market value of
$0.1 million ($99.7 million in 2004)) 0.1 99.7
Accounts receivable 342.2 342.9
Income taxes 24.6 24.2
Inventories and investments in televisual
products and movies 138.8 134.7
Prepaid expenses 27.9 21.4
Future income taxes 73.3 70.6
---------------------------------------------------------------------
839.6 802.3
LONG-TERM INVESTMENTS (market value of $10.9
million ($13.0 million in 2004)) 10.9 13.0
PROPERTY, PLANT AND EQUIPMENT 1,508.2 1,522.1
FUTURE INCOME TAXES 61.8 80.8
OTHER ASSETS 249.7 240.0
GOODWILL 3,843.7 3,851.0
---------------------------------------------------------------------
$6,513.9 $6,509.2
---------------------------------------------------------------------
---------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Bank indebtedness $13.7 $-
Accounts payable and accrued charges 471.3 546.2
Deferred revenue 137.8 143.7
Income taxes 7.5 13.4
Advances payable to parent company and
companies under common control 17.9 16.7
Additional amount payable 106.7 101.4
Current portion of long-term debt 2.8 2.8
---------------------------------------------------------------------
757.7 824.2
LONG-TERM DEBT 2,610.4 2,546.0
OTHER LIABILITIES 271.8 297.0
FUTURE INCOME TAXES 181.4 189.4
NON-CONTROLLING INTEREST 195.5 192.7
SHAREHOLDERS' EQUITY
Capital stock 1,773.7 1,773.7
Contributed surplus 3,216.8 3,216.8
Deficit (2,491.4) (2,529.6)
Translation adjustment (2.0) (1.0)
---------------------------------------------------------------------
2,497.1 2,459.9
---------------------------------------------------------------------
$6,513.9 $6,509.2
---------------------------------------------------------------------
---------------------------------------------------------------------
Quebecor inc. (TSX:QBR.MV.A) (TSX:QBR.SV.B) |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion