Quebecor Inc.
TSX : QBR.A
TSX : QBR.B

Quebecor Inc.

November 08, 2007 14:11 ET

Quebecor Inc. Reports Consolidated Third Quarter 2007 Results

MONTREAL, QUEBEC--(Marketwire - Nov. 8, 2007) - Quebecor Inc. (TSX:QBR.A)(TSX:QBR.B)

HIGHLIGHTS

- Quebecor Inc.'s operating income increases by $30.7 million (8.7%) in the third quarter of 2007; operating income up $58.4 million (29.9%) at Quebecor Media Inc. and down $33.3 million (-20.7%) at Quebecor World Inc.

- Quebecor posts $35.2 million net loss, mainly because of impairment of goodwill ($174.4 million) and of long-lived assets ($131.4 million) at Quebecor World.

- Quebecor Media's net income up $38.2 million (82.0%) to $84.8 million.

- Quarterly customer growth for Cable segment's services: 70,100 more customers for cable telephone service, a record in absolute terms, 45,000 for cable Internet access, and 31,700 for all cable television services combined (including a 41,200 customer increase for illico Digital TV).

- Quebecor Media acquires all outstanding units of Osprey Media Income Fund ("Osprey Media") for total cash consideration of $414.4 million (excluding assumed liabilities).

- October 5, 2007: Quebecor Media completes placement of US$700.0 million aggregate principal amount of Senior Notes.

- November 7, 2007: agreement signed for sale and merger of Quebecor World's European operations with the Dutch firm Roto Smeets De Boer NV to create a new entity, Roto Smeets Quebecor.

Quebecor Inc. reports total revenues of $2.29 billion for the third quarter of 2007, a decrease of $133.8 million (-5.5%). Quebecor Media's revenues increased by $116.0 million (16.1%), while Quebecor World's revenues decreased by $253.8 million (-14.6%). The impact of the conversion of Quebecor World's revenues into Canadian dollars produced an unfavourable foreign exchange variance estimated at $105.0 million (1). Quebecor's operating income increased by $30.7 million (8.7%) to $384.4 million in the third quarter of 2007. Quebecor Media's operating income rose by $58.4 million (29.9%) to $253.6 million while Quebecor World's operating income decreased by $33.3 million (-20.7%) to $127.5 million.

"Quebecor grew its operating income by $30.7 million (8.7%) on the strength of Quebecor Media's robust third quarter 2007 performance," said Pierre Karl Peladeau, President and Chief Executive Officer of Quebecor Inc. "The excellent results at Quebecor Media were driven by significant customer growth for the Cable segment's services, as well as improved operating results in the Newspapers and Broadcasting segments. At the beginning of November 2007, Quebecor World announced the sale and merger of its European operations with the Dutch firm Roto Smeets De Boer NV to create a new entity, Roto Smeets Quebecor, which will be better positioned to meet the challenges facing the commercial printing industry in Europe. To obtain greater financial flexibility, Quebecor World also announced the early redemption of some of its Senior Notes and new terms governing its revolving credit facility. Finally, Quebecor World completed its North American retooling program in the third quarter of 2007, ahead of the originally scheduled completion date of 2008 and in time for its customers' year-end busy season."

Quebecor recorded a net loss of $35.2 million ($0.55 per basic share) in the third quarter of 2007, compared with net income of $33.8 million ($0.53 per basic share) in the same period of 2006. The unfavourable variance of $69.0 million ($1.08 per basic share) was due to the recognition by Quebecor World of a $174.4 million goodwill impairment charge in the third quarter of 2007, an unfavourable variance of $124.0 million in the reserve for restructuring of operations, impairment of assets and other special charges, an unfavourable variance of $44.2 million in the loss on debt refinancing, and a $20.5 million increase in financial expenses. These unfavourable items were partially offset by a $33.1 million increase in the unrealized gain on exchangeable debentures and a $30.7 million increase in operating income. Favourable variances of $203.1 million in non-controlling interest and $32.4 million in income tax were recorded in the third quarter of 2007, resulting primarily from the net impact of the factors discussed above.

Excluding unusual items, i.e., the reserve for restructuring of operations, impairment of assets and other special charges, impairment of goodwill, the unrealized gain on re-measurement of debentures and of a portfolio investment, the loss on debt refinancing and the loss (gain) on sales of businesses and other assets, all net of income tax and non-controlling interest, net income from continuing operations was $39.4 million in the third quarter of 2007 ($0.61 per basic share), compared with $35.4 million ($0.56 per basic share) in the same period of 2006, an increase of $4.0 million ($0.05 per basic share).

Quebecor Media generated net income of $84.8 million in the third quarter of 2007, compared with $46.6 million in the same quarter of 2006. The $38.2 million (82.0%) increase was mainly due to the $58.4 million increase in operating income.

Quebecor World posted a net loss of US$319.8 million in the third quarter of 2007, compared with net income of US$11.2 million in the same period of 2006. The unfavourable variance of US$331.0 million was due primarily to recognition of goodwill impairment in the amount of US$166.0 million, impairment of long-lived assets in the amount of US$128.0 million, and a US$53.1 million loss on debt refinancing.

On November 7, 2007, Quebecor World and RSDB NV ("RSDB") announced that they have signed a definitive Share Purchase Agreement (SPA) and Implementation Agreement to sell/merge Quebecor World's European operations to RSDB Group. RSDB will buy Quebecor World's European operations and Quebecor World will retain a 29.9% interest in the merged entity that will be named "Roto Smeets Quebecor" (RSQ) and will be listed on Euronext Amsterdam.

Under the terms of the Share Purchase Agreement and Implementation Agreement, RSDB will deliver to Quebecor World, at closing, cash, a note and shares valued in the aggregate at approximately 240 million Euros (US$341.0), subject to certain post-closing adjustments. More specifically, the consideration payable to Quebecor World will be comprised of approximately 150 million Euros (US$213.0 million) in cash, a 35 million Euros (US$50.0 million) note and 1.4 million shares in RSQ, representing approximately 29.9% of the issued and outstanding shares of the combined business post-closing.

Completion of the merger is conditional, among other things, on the approval of the shareholders of RSDB and receipt of clearances from the European Commission. Closing is expected to take place by the end of 2007. Roto Smeets Quebecor, the new merged company, will become the leading player in the European printing industry and the leader in the European market.

Quebecor World completed its annual goodwill impairment testing in the third quarter of 2007. Taking into account financial information such as the sale and merger of its European operations with RSDB, Quebecor World management determined that the carrying value of goodwill for its European reporting unit was not recoverable and that the resulting impairment of such goodwill amounted to its entire carrying value of US$166.0 million at September 30, 2007.

Following impairment tests on various units in North America and Europe, triggered in the latter case primarily by the merger of the European operation, Quebecor World concluded that certain assets were impaired. Accordingly, Quebecor World recorded an impairment of long-lived assets charge of US$128.0 million on certain equipment, machinery and buildings during the third quarter of 2007.

Quebecor World recorded a US$53.1 million loss on debt refinancing in the third quarter of 2007 in connection with the early redemption, announced on September 28, 2007, of most of the 8.42%, 8.52%, 8.54% and 8.69% Senior Notes issued by Quebecor World Capital Corporation. The redemption was completed on October 29, 2007.

Year-to-date

On a year-to-date basis, Quebecor's revenues decreased by $192.5 million (-2.7%) to $6.95 billion. Quebecor Media's revenues increased by $246.6 million (11.4%) while Quebecor World's revenues decreased by $450.7 million (-8.9%). The impact of the conversion of Quebecor World's revenues into Canadian dollars produced an unfavourable foreign exchange variance estimated at $113.0 million (2).

Quebecor's operating income increased by $28.9 million (2.9%) to $1.03 billion in the first nine months of 2007. Operating income increased by $115.4 million (20.6%) to $676.7 million at Quebecor Media and decreased by $83.6 million (-18.8%) to $361.1 million at Quebecor World.

Quebecor's year-to-date net loss was $6.6 million ($0.10 per basic share), compared with $13.1 million ($0.20 per basic share) in the same period of 2006, a $6.5 million ($0.10 per basic share) improvement.

Excluding unusual items, i.e., the reserve for restructuring of operations, impairment of assets and other special charges, impairment of goodwill, the unrealized gain on re-measurement of debentures and of a portfolio investment, the loss on debt refinancing and the loss (gain) on sales of businesses and other assets, all net of income tax and non-controlling interest, net income was $87.4 million in the first nine months of 2007 ($1.36 per basic share), compared with $82.5 million ($1.29 per basic share) in the same period of 2006, an increase of $4.9 million ($0.07 per basic share).

Quebecor Media recorded net income of $214.7 million in the first nine months of 2007, compared with a net loss of $72.6 million in the same period of 2006. The $287.3 million improvement was due primarily to the favourable impact on the analysis of the 2007 numbers of the recognition in the first nine months of 2006 of a $342.1 million loss on debt refinancing. The $115.4 million increase in operating income was also a factor in the improvement.

Quebecor World recorded a year-to-date net loss of US$391.0 million, compared with a net loss of US$9.5 million in the same period of 2006. The unfavourable variance of US$381.5 million was due to essentially the same factors as those noted above in the discussion of the third quarter 2007 results.

Dividend

On November 8, 2007, the Quebecor Inc. Board of Directors declared a quarterly dividend of $0.05 per share on Class A Multiple Voting Shares and Class B Subordinate Voting Shares, payable on December 18, 2007 to shareholders of record at the close of business on November 23, 2007. This dividend is designated to be an eligible dividend, as provided under subsection 89(14) of the Canadian Income Tax Act and its provincial counterpart.

Full financial information

For a detailed analysis of the results of Quebecor Inc. and its subsidiaries for the third quarter and first nine months of 2007, please refer to the Management Discussion and Analysis and consolidated financial statements of Quebecor Inc. at http://www.quebecor.com/InvestorCenter/QIQuarterlyReports.aspx.

Additional information is also available in the press release on Quebecor Media Inc.'s results issued by the Company on November 6, 2007 and the press release, Management Discussion and Analysis and consolidated financial statements released by the Quebecor World Inc. subsidiary on November 7, 2007. These documents are available on the Company's website at http://www.quebecor.com/InvestorCenter/QIQuarterlyReports.aspx or through the Sedar filing service at http://www.sedar.com.

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 which could cause the Company's actual results for future periods to differ materially from those set forth in the forward-looking statements. Certain factors that may cause actual results to differ from current expectations include seasonality (including seasonal fluctuations in customer orders), operating risks (including fluctuations in demand for the Company's products and pricing actions by competitors), risks associated with capital investments (including risks related to technological development and equipment availability and breakdown), environmental risks, risks associated with labour agreements, commodity risks (including fluctuations in the cost and availability of raw materials), credit risk, financial risks, debt risks, risks related to interest rate fluctuations, foreign exchange risks, government regulation risks, risks related to tax changes, and changes in the general political and economic environment. Investors and others are cautioned that the foregoing list of factors that may affect future results is not exhaustive and that undue reliance should not be placed on any forward-looking statements. For more information on the risks, uncertainties and assumptions that could cause the Company's actual results to differ from current expectations, please refer to the Company's public filings available at www.sedar.com and www.quebecor.com including, in particular, the "Risks and Uncertainties" section in the Company's Management Discussion and Analysis for the year ended December 31, 2006 and the "Risk Factors" section of the Company's 2006 Annual Information Form.

The forward-looking statements in this report reflect the Company's expectations as of November 8, 2007, and are subject to change after that date. The Company expressly disclaims any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

The Company

Quebecor Inc. (TSX: QBR.A, QBR.B) is a communications company with operations in North America, Europe, Latin America and Asia. It has two operating subsidiaries, 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 in numerous media-related businesses: Videotron Ltd., the largest cable operator in Quebec and a major Internet Service Provider and provider of telephone and business telecommunications services; Quebecor Media's Newspapers segment, the largest publisher of newspapers in Canada; TVA Group Inc., operator of the largest French-language over-the-air television network in Quebec, a number of specialty channels, and the English-language over-the-air station Sun TV; Canoe Inc., operator of a network of English- and French-language Internet properties in Canada; Nurun Inc., a major interactive technologies and communications agency with offices in Canada, the United States, Europe and Asia; companies engaged in book publishing and magazine publishing; and companies engaged in the production, distribution and retailing of cultural products, namely Archambault Group Inc., the largest chain of music stores in eastern Canada, TVA Films, and Le SuperClub Videotron ltee, a chain of video and video-game rental and retail stores. Quebecor Inc. has operations in 18 countries.

(1) The average exchange rate used for the translation of Quebecor World's results was US$1.00 equals $1.05 in the third quarter of 2007, compared with US$1.00 equals $1.12 in the same period of 2006, producing an unfavourable foreign exchange variance estimated at $105.0 million.

(2) The average exchange rate used for the translation of Quebecor World's results was US$1.00 equals $1.11 in the first nine months of 2007, compared with US$1.00 equals $1.13 in the same period of 2006, producing an unfavourable foreign exchange variance estimated at $113.0 million.



QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in millions of Canadian dollars, except for earnings per share data)
(unaudited)
Three months ended Nine months ended
September 30 September 30
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2007 2006 2007 2006
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REVENUES

Printing $1,479.5 $1,733.3 $4,606.6 $5,057.3
Cable 394.6 330.7 1,125.3 946.6
Newspapers 259.5 220.9 721.6 681.5
Broadcasting 91.6 79.0 291.4 273.4
Leisure and
Entertainment 79.6 73.2 226.4 210.7
Interactive
Technologies and
Communications 19.0 17.2 61.9 53.9
Internet/Portals 11.5 9.6 34.6 30.0
Head office and
inter-segment (40.9) (35.7) (116.9) (110.0)
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2,294.4 2,428.2 6,950.9 7,143.4

Cost of sales and
selling and
administrative
expenses 1,910.0 2,074.5 5,918.6 6,140.0
Amortization 153.8 150.2 466.1 446.2
Financial expenses 116.6 96.1 327.0 299.3
Reserve for
restructuring of
operations,
impairment of assets
and other special
charges 139.3 15.3 224.2 83.7
Impairment of goodwill 174.4 - 174.4 -
Gain on re-measurement
of exchangeable
debentures and
a portfolio investment (42.5) (9.4) (48.4) (50.9)
Loss on debt
refinancing 54.7 10.5 56.1 342.1
Loss (gain) on sale
of businesses and
other assets 1.8 (0.2) 14.2 0.9
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(LOSS) INCOME BEFORE
INCOME TAXES (213.7) 91.2 (181.3) (117.9)
Income taxes:
Current 8.9 14.9 7.9 2.3
Future (23.0) 3.4 (45.6) (106.1)
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(14.1) 18.3 (37.7) (103.8)
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(199.6) 72.9 (143.6) (14.1)
Dividends on preferred
shares of
subsidiaries, net
of income taxes (8.2) (8.7) (25.3) (30.0)
Non-controlling
interest 172.6 (30.5) 159.4 31.2
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(LOSS) INCOME FROM
CONTINUING OPERATIONS (35.2) 33.7 (9.5) (12.9)
Income (loss) from
discontinued
operations - 0.1 2.9 (0.2)
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NET (LOSS) INCOME $(35.2) $33.8 $(6.6) $(13.1)
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EARNINGS PER SHARE
Basic
From continuing
operations $(0.55) $0.53 $(0.15) $(0.20)
Net (loss) income (0.55) 0.53 (0.10) (0.20)
Diluted
From continuing
operations (0.56) 0.53 (0.17) (0.20)
Net (loss) income (0.56) 0.53 (0.13) (0.20)
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Weighted average number
of shares
outstanding (in
millions) 64.3 64.3 64.3 64.3
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QUEBECOR INC. AND ITS SUBSIDIARIES
SEGMENTED INFORMATION
(in millions of Canadian dollars)
(unaudited)
Three months ended Nine months ended
September 30 September 30
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2007 2006 2007 2006
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Income before
amortization,
financial expenses,
reserve for
restructuring of
operations,
impairment of
assets and other
special charges,
impairment of
goodwill, gain on
re-measurement of
exchangeable
debentures and
of a portfolio
investment, loss
on debt refinancing
and loss (gain)
on sale of
businesses and
other assets
Printing $127.5 $160.8 $361.1 $444.7
Cable 172.3 133.0 467.0 372.7
Newspapers 60.1 46.8 149.3 144.1
Broadcasting 11.8 4.8 36.6 23.2
Leisure and
Entertainment 9.1 8.8 16.7 9.3
Interactive
Technologies and
Communications 1.4 1.2 2.8 4.2
Internet/Portals 1.0 2.6 4.1 8.5
General corporate
revenues (expenses) 1.2 (4.3) (5.3) (3.3)
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$384.4 $353.7 $1,032.3 $1,003.4
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Amortization
Printing $80.7 $85.7 $250.7 $253.2
Cable 54.9 49.3 163.8 146.3
Newspapers 11.5 9.4 31.1 27.3
Broadcasting 3.2 3.3 9.8 10.5
Leisure and
Entertainment 1.9 1.5 6.0 5.5
Interactive
Technologies and
Communications 0.7 0.4 2.2 1.2
Internet/Portals 0.4 0.2 1.1 0.6
Head Office 0.5 0.4 1.4 1.6
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$153.8 $150.2 $466.1 $446.2
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Additions to property,
plant and equipment
Printing $65.5 $92.9 $220.4 $247.5
Cable 78.7 74.9 235.8 216.8
Newspapers 17.8 26.7 47.7 100.4
Broadcasting 3.4 1.8 9.7 5.4
Leisure and
Entertainment 1.0 1.0 1.4 2.3
Interactive
Technologies and
Communications 1.1 0.4 2.6 0.9
Internet/Portals 0.7 0.6 3.1 1.2
Head office 6.5 1.8 16.8 4.0
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$174.7 $200.1 $537.5 $578.5
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QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions of Canadian dollars)
(unaudited)

Three months ended Nine months ended
September 30 September 30
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2007 2006 2007 2006
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Net (loss) income $(35.2) $33.8 $(6.6) $(13.1)

Other comprehensive
income (loss), net
of income taxes and
non-controlling interest
Unrealized (loss) gain
on translation of
net investments in
foreign operations (54.3) 1.5 (133.4) (32.0)
Translation loss on
net investments in
foreign operations
recognized in net
(loss) income - - 0.2 0.6
Unrealized gain on
derivative instruments 2.9 - 13.6 -
Loss on derivative
instruments
recognized in net
(loss) income 0.3 - 1.5 -
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(51.1) 1.5 (118.1) (31.4)

COMPREHENSIVE LOSS $(86.3) $35.3 $(124.7) $(44.5)
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CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(in millions of Canadian dollars)
(unaudited)

Three months ended Nine months ended
September 30 September 30
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2007 2006 2007 2006
--------------------------------------------------------------------------

Balance at beginning
of period, as
previously reported $1,416.4 $1,232.2 $1,165.9 $1,285.5

Cumulative effect of
changes in accounting
policies:
Evaluation of
misstatements - (12.8) - (12.8)
Financial instruments - - 220.0 -
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As revised 1,416.4 1,219.4 1,385.9 1,272.7

Net (loss) income (35.2) 33.8 (6.6) (13.1)
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1,381.2 1,253.2 1,379.3 1,259.6

Redemption of
convertible notes - - 8.3 -
Dividends (3.2) (3.2) (9.6) (9.6)
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Balance at end
of period $1,378.0 $1,250.0 $1,378.0 $1,250.0
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QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of Canadian dollars)
(unaudited)
Three months ended Nine months ended
September 30 September 30
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2007 2006 2007 2006
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Cash flows related
to operations
(Loss) income from
continuing
operations $(35.2) $33.7 $(9.5) $(12.9)
Adjustments for:
Amortization of
property, plant
and equipment 149.9 148.5 457.7 440.1
Amortization of
deferred charges
and other assets 3.9 1.7 8.4 6.1
Amortization of
contract
acquisition costs 5.5 7.8 18.1 21.6
Impairment of
assets and
non-cash portion
of restructuring
charges 131.4 - 168.0 11.2
Impairment of
goodwill 174.4 - 174.4 -
Net loss (gain) on
derivative
instruments and
on foreign
currency
translation of
financial
instruments 4.6 (8.6) (3.6) (8.3)
Loss on revaluation
of the Additional
Amount payable - 5.8 5.2 2.4
Loss (gain) on sale
of businesses,
property, plant
and equipment
and other assets 1.3 (1.4) 10.0 1.0
Gain on
re-measurement of
exchangeable
debentures and a
portfolio
investment (42.5) (9.4) (48.4) (50.9)
Loss on debt
refinancing 54.7 10.5 56.1 342.1
Repayment of accrued
interest on
Senior Discount
Notes - (6.0) - (197.3)
Amortization of
financing costs
and long-term
debt discount 2.0 2.1 6.3 9.5
Future income taxes (23.0) 3.4 (45.6) (106.1)
Non-controlling
interest (172.6) 30.5 (159.4) (31.2)
Other 0.5 0.8 3.3 7.5
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254.9 219.4 641.0 434.8
Net change in
non-cash balances
related to operations (111.9) (38.9) (74.2) (144.9)
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Cash flows provided
by continuing
operations 143.0 180.5 566.8 289.9
Cash flows (used in)
provided by
discontinued
operations - (1.5) 1.4 (0.2)
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Cash flows provided
by operations 143.0 179.0 568.2 289.7
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Cash flows related
to investing activities
Business acquisitions,
net of cash and
cash equivalents (430.7) (3.0) (440.2) (9.4)
Proceeds from disposal
of businesses, net
of cash and cash
equivalents 7.7 0.4 7.7 31.9
Additions to property,
plant and equipment (174.7) (200.1) (537.5) (578.5)
Net decrease in
temporary investments 0.2 - 1.2 40.5
Decrease (increase)
in restricted cash
and cash equivalents
and temporary
investments 4.8 (2.8) 4.2 (14.1)
Proceeds from disposal
of assets 29.9 13.6 81.5 19.3
Other 0.2 (0.8) (1.1) (2.5)
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Cash flows used in
investing activities (562.6) (192.7) (884.2) (512.8)
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Cash flows related to
financing activities
Net (decrease)
increase in bank
indebtedness (5.4) 6.0 (15.2) 10.7
Issuance of long-term
debt, net of
financing fees 15.0 56.0 73.4 1,847.0
Net borrowings under
revolving and
bridge bank
facilities 633.9 31.2 693.8 65.1
Repayments of
long-term debt and
unwinding of
hedging contracts (19.7) (41.5) (33.2) (1,664.7)
Repayment of the
Additionnal Amount
payable (127.2) - (127.2) -
Repayment of
convertible notes - - (127.8) -
Net decrease in
prepayments under
cross-currency
swap agreements - - - 21.6
Issuance of capital
stock by subsidiaries 1.3 1.8 4.6 6.4
Dividends (3.2) (3.2) (9.6) (9.6)
Dividends paid to
non-controlling
shareholders (11.2) (16.0) (23.3) (73.6)
Other (4.0) - (3.2) (1.0)
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Cash flows provided
by financing activities 479.5 34.3 432.3 201.9
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Net increase (decrease)
in cash and cash
equivalents 59.9 20.6 116.3 (21.2)
Effect of exchange
rate changes on cash
and cash equivalents
denominated in
foreign currencies (28.2) (4.5) (65.3) (18.6)
Cash and cash
equivalents at
beginning of period 54.0 40.6 34.7 96.5
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Cash and cash
equivalents at end
of period $85.7 $56.7 $85.7 $56.7
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Cash and cash
equivalents consist of
Cash $45.4 $27.6 $45.4 $27.6
Cash equivalents 40.3 29.1 40.3 29.1
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$85.7 $56.7 $85.7 $56.7
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Cash interest
payments $119.8 $124.5 $302.2 $527.7
Cash income tax
payments (net of
refunds) (14.4) 7.9 (1.4) 69.6
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QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in millions of Canadian dollars)
September 30 December 31
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2007 2006
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(unaudited) (audited)

ASSETS

CURRENT ASSETS
Cash and cash equivalents $85.7 $34.7
Restricted cash and cash equivalents and
temporary investments 5.2 8.0
Temporary investments 0.2 1.4
Accounts receivable 918.2 945.9
Income taxes 16.5 58.4
Inventories and investments in televisual products
and movies 560.2 574.4
Prepaid expenses 65.5 51.8
Future income taxes 190.4 113.2
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1,841.9 1,787.8


PROPERTY, PLANT AND EQUIPMENT 4,088.2 4,517.7
FUTURE INCOME TAXES 65.5 70.6
RESTRICTED CASH 54.6 56.0
OTHER ASSETS (including a portfolio investment
with a fair value of $78.8 million as at
September 30, 2007) 584.9 706.0
GOODWILL 6,383.3 6,474.4
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$13,018.4 $13,612.5
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LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
Bank indebtedness $6.4 $21.6
Accounts payable, accrued charges and deferred
revenue 1,789.8 1,871.3
Income taxes 27.3 44.5
Future income taxes 1.1 1.6
Additional Amount payable - 122.0
Current portion of long-term debt 93.0 59.0
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1,917.6 2,120.0

LONG-TERM DEBT 5,349.6 5,209.4
EXCHANGEABLE DEBENTURES 199.3 302.8
CONVERTIBLE NOTES - 137.2
DERIVATIVE FINANCIAL INSTRUMENTS 749.0 583.8
OTHER LIABILITIES 373.9 450.8
FUTURE INCOME TAXES 630.8 635.3
PREFERRED SHARES OF A SUBSIDIARY 175.0 175.0
NON-CONTROLLING INTEREST 2,242.4 2,689.5

SHAREHOLDERS' EQUITY
Capital stock 346.6 346.6
Retained earnings 1,378.0 1,165.9
Accumulated other comprehensive loss (343.8) (203.8)
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1,380.8 1,308.7

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$13,018.4 $13,612.5
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Contact Information

  • Quebecor Inc.
    Jacques Mallette
    Executive Vice President and Chief Financial Officer
    514-877-5117
    or
    Quebecor Inc.
    Luc Lavoie
    Executive Vice President, Corporate Affairs
    514-380-1974
    514-947-6672 (mobile)
    lavoie.luc@quebecor.com