Quebecor World Reports Record First Quarter 2001 Results - Double Digit Growth in EPS, Net Income and Dividends Increased 20%.Business Editors MONTREAL--(BUSINESS WIRE)--April 30, 2001 Quebecor World Inc. (NYSE NYSE See: New York Stock Exchange :IQW)(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :IQW.) is pleased to announce for the quarter ending March 31, 2001 earnings per share of $0.27 an increase of 13% over the same period last year. Net income also increased 13% to $42.5 million and the operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: increased to 8.7%. All are records for the quarter. "Every quarter since the merger with World Color we have delivered record earnings and margins," said Charles G. Cavell, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Quebecor World. "These latest results were achieved despite a significant slowdown in the U.S. economy and soaring energy costs. It shows that our diversified product strategy and global footprint place Quebecor World in a unique position to successfully deal with challenging market conditions." Synergies from the World Color merger and additional cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. initiatives allowed the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. platform to increase 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. by 5% in the first quarter even though revenue was down by 5%. These decisions have also put Quebecor World in a strong position to take full advantage when the U.S. economy rebounds. The Company continues to harvest the efficiencies available to it as the world's largest commercial print media provider. In Europe, management continues to focus on strengthening the French platform while expanding pan European sales and marketing activities to take advantage of the company's unique continental reach. Revenues and operating income improved compared to the same quarter last year, excluding the unfavourable effect of currency translation. Latin American revenues increased 34% and operating income was up 12% over the previous year's first quarter. The company's strategy of growing internationally with strong customers in expanding markets moved ahead in the first quarter with the initial printing of Veja Magazine for Editora Abril Editora Abril is a Brazilian publisher. It was founded in 1950 by Victor Civita. The magazine publishes titles like Veja, Nova (cosmopolitan magazine), Placar, Estilo de Vida (InStyle), Claudia, Boa Forma, Manequim, Exame and the Brazilian issue of the Playboy magazine. in the new Recife facility. Veja, the world's fourth largest news magazine can now be distributed in timely fashion throughout North East Brazil thus saving the publisher significant time and distribution costs distribution costs distribute npl → Vertriebskosten pl . Production of telephone directories for Listel lis·tel n. Architecture A narrow border, molding, or fillet. Also called list2. [French, from Italian listello, diminutive of lista, border, Listas Telefonicas S.A. will begin in the second quarter. In March, Quebecor World issued $250 million of Senior Notes to a group of private U.S. investors to completely repay the bank debt incurred for the World Color acquisition. Quebecor World is now positioned to resume its role as the industry's leading consolidator. "We are looking at opportunities in all our geographies," said Mr. Cavell. "There are a number of options we are studying but the goal is to grow and strengthen our business. Substantial growth in Europe, South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. and 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. will be realized in the coming years." The Company recently made two niche acquisitions. In Brazil, Quebecor World purchased 75% of Graphica Melhoramentos. The Sao Paulo based company has annual sales of $16 million printing trade and textbooks, magazines, directories and catalogs. In Spain, Quebecor World purchased a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in Espacio y Punto. This is a leading pre-media company located in Madrid. This acquisition will strengthen the relationships that many of Spain's largest magazine and catalogue publishers have with our Altair printing facility. It gives Quebecor World a European pre-media platform to develop along the lines of those employed in North America under Que-Net Media(TM). "While there is slowdown in the U.S. economy from which we are not immune, we will continue focusing management resources to diminish the impact on our business," said Mr. Cavell. "We are moving ahead with the completion of the World Color integration and we will continue to look for ways to make our business stronger." In April, Quebecor World reported it had repurchased 4,940,000 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. at an average cost per share of 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. $35.26 under its Normal Course Issuer Bid instituted April 6, 2000. At the same time the Company renewed its Normal Course Issuer Bid for a maximum of 8,800,000 Subordinate Voting Shares representing approximately 10% of the public float as of March 26, 2001. Purchases will be made between April 6, 2001 and April 5, 2002. Shares repurchased under the bid will be cancelled. At Quebecor World's Annual Meeting April 4, James Doughan was elected to the Board of Directors. Mr. Doughan has an extensive business background having most recently served as President and Chief Executive Officer of Abitibi Consolidated from 1997 to 1999, and as President and Chief Executive Officer of Stone Consolidated from 1993 to 1997. The Board of Directors declared a dividend of $0.12 per share on 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. The Board also declared a dividend of CDN$0.3125 per share on 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. and CDN$0.4265 per share on Series 4 Preferred Shares. The dividends are payable on June 1, 2001 to shareholders of record at the close of business on May 17, 2001. Quebecor World To Webcast Investor Conference Call on May 1st, 2001 Quebecor World Inc. will broadcast its 2001 First Quarter Earnings conference call live over the Internet on Tuesday May 1st, 2001, at 8: 30 A.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 ). The company's financial results will be made public in a press release prior to the conference call. The conference call, which will last approximately one hour, will be webcast live and can be accessed on the Quebecor World web site: http://www.quebecorworld.com/htmen/20_0/20_1inv_8.htm or at: http://www.ir-live.com/en/shows/quebecor_world/events/2001.05.01/ ?webcast_id=171 (Due to the length of this URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. , it may be necessary to copy and paste To copy files from one location to another or to copy text and images from one document to another. All modern operating systems and applications have a copy and paste capability that is typically selected from an Edit menu. See cut and paste and Win Copy between windows. this hyperlink into your Internet browser's URL address field.) Prior to the call please ensure that you have the appropriate software. The Quebecor World web address listed above has instructions and a direct link to download the necessary software, free of charge. Anyone unable to attend this conference call may listen to the replay tape by phoning (416) 695-5800 or (800) 408-3053 passcode 753071, available from May 1st to May 15th, 2001. 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 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. Quebecor World Inc. (NYSE, TSE: IQW) is the largest commercial print media services company in the world. The Company is the leader in most of its major product categories, which include magazines, inserts and circulars, books, catalogs, specialty printing and direct mail, directories, digital pre-media, logistics, mail list technologies 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 over 43,000 employees working in more than 160 printing and related facilities 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. , Canada, France, the United Kingdom, Spain, Switzerland, Austria, Sweden, Finland, Brazil, Chile, Argentina, Peru, Colombia, Mexico and India.
Quebecor World Inc.
Financial Highlights
Periods ended March 31
(In millions of US dollars, except per share data)
Three months
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2001 2000 Change
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Consolidated Results
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Revenues 1,576.7 1,630.4 (3)%
Operating income before amortization 219.2 231.7 (5)%
Operating income 136.4 138.2 (1)%
Net income 42.5 37.6 13%
Cash provided from operating activities (153.5) 72.6 (311)%
Free cash flow from operations* (218.6) 42.9 (610)%
Operating margin before amortization 13.9% 14.2%
Operating margin 8.7% 8.5%
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Segmented Information
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Revenues
North America 1,315.6 1,377.7 (5)%
Europe 227.1 227.3 (0)%
Latin America 34.2 25.5 34%
Operating income
North America 125.0 119.6 5%
Europe 12.8 13.4 (4)%
Latin America 1.9 1.7 12%
Operating margins
North America 9.5% 8.7%
Europe 5.6% 5.9%
Latin America 5.6% 6.7%
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Per Share Data
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Cash earnings** $0.38 $0.35 9%
Net income $0.27 $0.24 13%
Dividends on equity shares $0.10 $0.07 43%
Book value $15.32 $14.33
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Financial Position
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Working capital 189.9 147.5
Total assets 6,438.3 6,687.8
Long-term debt (including
convertible notes) 2,333.7 2,795.2
Shareholders' equity 2,560.2 2,329.1
Debt-to-capitalization 48:52 54:46
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* Cash provided from operating activities, less capital expenditures
net of proceeds from disposals, and preferred share dividends.
** Earnings per share before goodwill amortization.
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