Quebecor World Holds Annual General Meeting -- First Quarter Revenues up 75%; Operating Income More Than Double.Business Editors MONTREAL--(BUSINESS WIRE)--April 25, 2000 (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :IQI IQI Image Quality Indicators IQI Inpatient Quality Indicator IQI Institut für Qualität und Innovation GmbH (Neuenrade, Germany) IQI Incoming Quality Inspection .) (NYSE NYSE See: New York Stock Exchange :PRW "Parents are watching." See digispeak. ) Quebecor World held its 1999 Annual General Meeting today, during which management described the Company's growth strategy and announced first quarter results. In addition, shareholders approved a change of its name from Quebecor Printing Inc. to Quebecor World Inc. "1999 was a historic year for us. Our merger with World Color has turned us into the largest print media services company in the world," stated Charles G. Cavell, President and Chief Executive Officer of Quebecor World. "More importantly, we are successfully leveraging our size and 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). our manufacturing platform in 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. to take full advantage of the synergies." During first quarter 2000, Quebecor World made significant progress in its integration of World Color operations. Six facilities are being closed and three mega-facilities are being created in the United States, specializing in Books, Retail and Direct Response products. Non-core assets were divested and a new company, Que-Net Media, was formed to focus on pre-media related activities. Que-Net Media, through which we are creating a global network of digital content centers, will also enable us to further focus on the growing market for pre-media services for both print and World Wide Web applications. "The development of the World Wide Web as a new medium of communication has increased the demand for both print products and digital content services. For the most recent six months, our Company has experienced unprecedented organic growth, in part due to the increased advertising push by Internet/New Media companies," said Charles G. Cavell. For the first quarter ended March 31, 2000, revenues increased more than 75 % to reach US$1.6 billion, compared with US$911 million for the corresponding quarter last year. 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. more than doubled to total US$138 million, from US$57 million in 1999. Net income amounted to US$38 million or US$0.24 per share, compared with US$23 million or US$0.18 per share in 1999, as restated to reflect the adoption of new accounting guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. in Canada regarding income taxes and employee future benefits. Net income on a cash basis (net income before goodwill amortization) increased by 67 % from US$0.21 to US$0.35 per share. Plants in the United States of both World Color and Quebecor Printing have shown strong margin improvements to achieve record levels of operating income. Expanded sales coverage and improved efficiency from retooling, combined with significant organic growth in most of the Company's core print media lines of business in the United States (for example Book services plus 13 % and Retail inserts plus 7 %) were significant to the bottom line improvement during the quarter. 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 for the quarter reached US$43 million, and was used to pay down the increased debt arising from the World Color transaction. As the Company realizes increased synergies and focuses its free cash flow on debt reduction, management expects to return to a debt-to-equity level of one-to-one as early as the end of fiscal 2000. This ratio improved to 54:46 at the end of the first quarter. During the quarter, the Company announced a Normal Course Issuer Bid for the period from April 6, 2000 to April 5, 2001, for a maximum of 8 million 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. , or 9.5 % of its public float as at March 27, 2000. The issuer bid will be funded with cash proceeds from the sale of non-core assets as well as those made redundant as a result of restructuring. Shares purchased under the bid will be cancelled. The Company has concluded that the purchase of subordinate shares under the issuer bid represents an attractive investment at current trading prices Trading price The price at which a security is currently selling. . The Company also announced an increase of 14 % in dividends to US$0.32 per share on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis. Dividends of US$0.08 per share on the 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 Subordinate Voting Shares and CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. $0.3125 per share on the Series 2 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. will be paid on June 1, 2000 to shareholders of record at the close of business on May 17, 2000. Quebecor World (Quebecor Printing Inc. - NYSE: PRW, TSE: IQI - both to be changed to IQW on April 28) is a diversified diversified (di·verˑ·s global commercial printing company. Following its merger with World Color Press completed October 8, 1999, it is now the largest commercial printer in the world. The Company is a leader in most of its major product categories, which include magazines, retail inserts, books, catalogs, specialty printing and direct mail, directories, pre-media and other value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. services. The Company has more than 40,000 employees working in more than 160 printing and related facilities in the United States, Canada, France, the United Kingdom, Spain, Germany, Austria, Sweden, Finland, Chile, Argentina, Peru, Columbia, Mexico and India. Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. 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. involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include, among others, changes in customers' demand for the Company's products, changes in raw material and equipment costs and availability, seasonal changes in customer orders, pricing actions by the Company's competitors, and general changes in economic conditions. Those and other risks are more fully described in the Company's filings with the Securities and Exchange Commission.
Quebecor World Inc
First Quarter 2000
Periods ended March, 31
(In millions of US dollars,
except per share data ) 3 Months
2000 1999 Change
Segmented Information
----------------------
Revenues
United States 1,132.1 466.3 143 %
Canada 247.5 220.5 12 %
Europe 227.3 203.1 12 %
Latin America 25.5 21.6 18 %
Operating income
United States 99.5 24.0 315 %
Canada 20.1 16.5 21 %
Europe 13.4 11.5 16 %
Latin America 1.7 2.9 (41 %)
Operating margins
United States 8.8 % 5.1 %
Canada 8.1 % 7.5 %
Europe 5.9 % 5.7 %
Latin America 6.7 % 13.4 %
Consolidated Results
--------------------
Revenues 1,630.4 910.5 79 %
Operating income before
amortization 231.7 113.8 103 %
Operating income 138.2 56.5 145 %
Net Income 37.6 23.2 62 %
Net Income available for
holders of equity shares 35.0 20.7 69 %
Cash provided from
operating activities 72.6 69.0 5 %
Free cash flow from
operations * 42.9 38.1 13 %
Operating margin before
amortization 14.2 % 12.5 %
Operating margin 8.5 % 6.2 %
Per Share Data
---------------
Cash earnings ** $0.35 $0.21 67 %
Net Income $0.24 $0.18 33 %
Dividends $0.07 $0.07
Financial Position
------------------
Working Capital 147.5 300.5
Long-term debt 2,799.2 1,224.4
Shareholders' Equity 2,329.1 1,556.0
Total assets 6,687.8 3,815.2
Book value per Equity Share $14.33 $11.59
Debt-to-equity ratio 54 : 46 44 : 56
* Cash provided from operating activities less capital expenditures
net of proceeds from disposals, and preferred share dividends
** Net income before goodwill amortization, less net income
available to holders of preferred shares
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion