MONTRÉAL, QUÉBEC--(Marketwire - Feb. 29, 2012) - Quebecor Inc. ("Quebecor")(TSX:QBR.A)(TSX:QBR.B) today reported Videotron Ltd.'s ("Videotron") 2011 full-year and fourth quarter financial results.
Videotron's results are being released ahead of schedule due to certain reporting requirements in Canada and the United States. The financial year-end process and audit for Quebecor's other business segments are in progress and have not yet been completed. Quebecor plans to release its audited consolidated financial results for 2011 on March 15, 2012.
Quebecor and Videotron adopted International Financial Reporting Standards ("IFRS") on January 1, 2011. Videotron's 2011 full-year and fourth quarter consolidated financial statements have therefore been prepared in accordance with IFRS and comparative data for 2010 have been restated. Fore more information, refer to "Transition to IFRS" below.
2011 highlights
- Videotron's revenues totalled $2.43 billion, up $201.9 million (9.1%) from 2010.
- Operating income(1) up $51.5 million (4.9%) to $1.10 billion.
- Net income attributable to shareholder down $35.1 million (-6.9%) to $469.0 million.
- Videotron recorded its largest annual customer increase since 2008, adding 375,800 revenue-generating units,(2) 39.3% more than the number added in 2010.
- Net increase of 49,900 cable television customers in 2011 (34,600 in 2010), including a 181,200-subscriber increase for the digital service (135,500 in 2010), the strongest annual growth for the digital service since it was launched in 1999. Total revenues from cable television services passed the $1 billion mark.
- Net increase of 80,400 customers for the cable Internet access service (81,500 in 2010).
- Net increase of 91,000 customers for the cable telephony service (100,300 in 2010).
- Net increase of 154,500 subscriber connections for the mobile telephony service. At December 31, 2011, Videotron's 4G network was available to nearly seven million people in Québec and eastern Ontario.
Fourth quarter 2011 highlights
- Revenues up $43.6 million (7.4%) from the same quarter in 2010 to reach $634.8 million.
- Operating income up $31.5 million (12.0%) to $294.7 million.
- Net income attributable to shareholder up $66.0 million (68.8%) to $161.9 million.
| (1) See "Operating income" under "Definitions." |
| (2) Revenue-generating units are the sum of cable television, Internet access and cable telephony service subscriptions, plus subscriber connections to the mobile telephony service. |
2011 operating results
Revenues: $2.43 billion in 2011, an increase of $201.9 million (9.1%).
- Combined revenues from all cable television services topped $1 billion for the first time, increasing by $62.0 million (6.5%) to $1.01 billion, mainly because of the higher revenue per user generated by increases in some rates, the success of high definition ("HD") packages, increased pay TV orders, and the impact of customer base growth.
- Revenues from Internet access services increased $54.0 million (8.4%) to $698.2 million. The improvement was mainly due to customer growth, increases in some rates, and customer migration to upgraded service plans.
- Revenues from cable telephony service increased $26.8 million (6.5%) to $436.7 million, primarily as a result of customer base growth and more lines per customer.
- Revenues from mobile telephony service increased $59.6 million (112.1%) to $112.7 million, essentially due to customer growth resulting largely from the launch of the new network in September 2010.
- Revenues of Videotron Business Solutions increased $3.2 million (5.4%) to $63.0 million, mainly because of higher revenues from network solutions.
- Revenues from customer equipment sales decreased $4.0 million (-6.7%) to $55.9 million, mainly because of campaigns promoting cable television equipment leasing, partially offset by increased sales of mobile telephony equipment.
- Revenues of Le SuperClub Vidéotron ltée ("Le SuperClub Vidéotron") decreased $1.6 million (-6.9%) to $21.6 million, mainly as a result of store closures in 2011, partially offset by higher franchise fee revenues.
- Other revenues increased $1.9 million (6.8%) to $29.9 million.
Average monthly revenue per user(3) ("ARPU"): $103.28 in 2011 compared with $95.73 in 2010, an increase of $7.55 (7.9%).
Customer statistics
Revenue-generating units - As of December 31, 2011, the total number of revenue-generating units stood at 4,689,900, an increase of 375,800 (8.7%) from the end of 2010 (Table 1). The net increase in revenue-generating units in 2011 was 39.3% greater than in 2010 and constituted the largest annual increase, in absolute terms, in three years. This solid performance was due to the effective strategy of marketing bundled services, including mobile telephony service, at a time of technological change in television broadcasting. The number of revenue-generating units had increased by 269,700 in 2010.
Cable television - The combined customer base for all of Videotron's cable television services increased by 49,900 (2.8%) in 2011 (Table 1), compared with an increase of 34,600 in 2010. As of December 31, 2011, Videotron had 1,861,500 customers for its cable television services, a household penetration rate of 70.1% (number of subscribers as a proportion of total homes passed by Videotron's network, i.e., 2,657,300 homes, as of the end of December 2011), compared with 69.3% a year earlier.
- The customer base for the Digital TV service stood at 1,400,800 as at December 31, 2011, an increase of 181,200 (14.9%) during the year, compared with a 135,500 increase in 2010 (Table 1). It was the largest annual customer growth for Digital TV since the service was launched in 1999. As of December 31, 2011, illico Digital TV had a household penetration rate of 52.7% versus 46.7% a year earlier.
- Migration from analog to digital service was the main reason for the 131,300 (-22.2%) decrease in the customer base for analog cable television services in 2011. By comparison, the number of subscribers to analog cable services decreased by 100,900 in 2010.
Cable Internet access - The number of subscribers to cable Internet access services stood at 1,332,500 as at December 31, 2011, an increase of 80,400 (6.4%) from year-end 2010, compared with an increase of 81,500 in 2010 (Table 1). As at December 31, 2011, Videotron's cable Internet access services had a household penetration rate of 50.1%, compared with 47.9% a year earlier.
Cable telephony service - The number of subscribers to cable telephony service stood at 1,205,300 as at the end of December 2011, an increase of 91,000 (8.2%) from year-end 2010, compared with an increase of 100,300 in 2010 (Table 1). As at December 31, 2011, the IP telephony service had a household penetration rate of 45.4%, compared with 42.7% a year earlier.
Mobile telephony service - As of December 31, 2011, the number of subscriber connections to the mobile telephony service stood at 290,600, an increase of 154,500 (113.5%) from year-end 2010, compared with an increase of 53,300 connections in 2010 (Table 1). At December 31, 2011, there were 3,100 connections to the MVNO network.
| (3) The average monthly revenue per user is defined under "Definitions." |
| |
| |
| |
| Table 1 |
| |
| Telecommunications segment year-end customer numbers (2007-2011) |
| (in thousands of customers) |
| |
2011 |
2010 |
2009 |
2008 |
2007 |
| Cable television: |
|
|
|
|
|
| |
Analog |
460.7 |
592.0 |
692.9 |
788.3 |
869.9 |
| |
Digital |
1,400.8 |
1,219.6 |
1,084.1 |
927.3 |
768.2 |
| |
1,861.5 |
1,811.6 |
1,777.0 |
1,715.6 |
1,638.1 |
| Cable Internet |
1,332.5 |
1,252.1 |
1,170.6 |
1,063.8 |
933.0 |
| Cable telephony |
1,205.3 |
1,114.3 |
1,014.0 |
852.0 |
636.4 |
| Mobile telephony1 |
290.6 |
136.1 |
82.8 |
63.4 |
45.1 |
| Total (revenue-generating units) |
4,689.9 |
4,314.1 |
4,044.4 |
3,694.8 |
3,252.6 |
| (1) Thousands of connections |
Operating income: $1.10 billion, an increase of $51.5 million (4.9%).
- The increase in operating income was mainly due to:
- impact of higher revenues;
- reduction in the stock-based compensation charge.
- Partially offset by:
- increases in operating expenses, among them costs related to the roll-out of the 4G network, including acquisition costs of approximately $489 per subscriber addition (direct costs, including selling, advertising and marketing expenses and equipment subsidies) and site overhead costs;
- capitalization of some operating expenses during the build-out of the new mobile network, which also explains the unfavourable variance in operating expenses in 2011 compared with 2010.
Net income attributable to shareholder: $469.0 million, a $35.1 million (-6.9%) decrease.
- The decrease was mainly due to:
- $116.4 million increase in amortization charge;
- $4.8 million increase in financial expenses;
- $1.2 million increase in charge for restructuring of operations and other special items.
- Partially offset by:
- $51.5 million increase in operating income;
- $31.8 million favourable variance in gain on valuation and translation of financial instruments;
- $4.1 million decrease in income tax expense.
Fourth quarter 2011 operating results
Revenues: $634.8 million, an increase of $43.6 million (7.4%), essentially due to the same factors as those noted above under "2011 operating results."
- Combined revenues from all cable television services increased $15.9 million (6.5%) to $261.8 million.
- Revenues from Internet access services increased $16.9 million (10.2%) to $183.2 million.
- Revenues from cable telephony service increased $4.6 million (4.3%) to $111.5 million.
- Revenues from mobile telephony service increased $17.4 million (103.0%) to $34.3 million.
- Revenues of Videotron Business Solutions increased $0.5 million (3.1%) to $16.6 million.
- Revenues from customer equipment sales decreased $11.2 million (-45.0%) to $13.7 million.
- Revenues of Le SuperClub Vidéotron decreased $0.5 million (-7.1%) to $6.0 million.
- Other revenues were flat at $7.7 million.
ARPU: $106.90 in the fourth of quarter 2011, compared with $98.85 in the same period of 2010, an increase of $8.05 (8.1%).
Customer statistics
Revenue-generating units - 101,800 (2.2%) unit increase in the fourth quarter of 2011, 20.0% more than the 84,800 unit increase in the same period of 2010.
Cable television - 17,300 (0.9%) increase in the combined customer base for all cable television services in the fourth quarter of 2011, compared with an increase of 9,600 in the same quarter of 2010.
- Digital TV: 52,700 (3.9%) subscriber increase in the fourth quarter of 2011, compared with 37,300 in the same period of 2010.
- Analog cable TV: 35,400 (-7.1%) subscriber decrease in the fourth quarter of 2011, compared with a decrease of 27,700 in the same period of 2010.
Cable Internet access - 26,100 (2.0%) increase in the fourth quarter of 2011, compared with 18,300 in the same period of 2010.
Cable telephony - 25,900 (2.2%) subscriber increase in the fourth quarter of 2011, compared with 16,200 in the same period of 2010.
Mobile telephony service - 32,500 (12.6%) increase in subscriber connections in the fourth quarter of 2011, compared with 40,700 in the same period of 2010.
Operating income: $294.7 million, an increase of $31.5 million (12.0%).
- The increase in operating income was mainly due to:
- impact of higher revenues.
- Partially offset by:
- increases in operating costs, including costs related to the roll-out of the 4G network.
Net income attributable to shareholder: $161.9 million, an increase of $66.0 million (68.8%).
- The increase was due mainly to:
- $86.4 million favourable variance in gains and losses on valuation and translation of financial instruments in the fourth quarter 2011, compared with the same period of 2010;
- $31.5 million increase in operating income;
- $8.9 million decrease in the charge for restructuring of operations and other special items.
- Partially offset by:
- $39.4 million increase in income tax expense;
- $18.0 million increase in amortization charge;
- $3.4 million increase in financial expenses.
Financing activities
- On July 20, 2011, Videotron amended its $575.0 million revolving credit facility to extend the expiry date from April 2012 to July 2016 and modify some of the terms and conditions.
- On July 5, 2011, Videotron issued 6 7/8% Senior Notes maturing in 2021 in the aggregate principal amount of $300.0 million, for a net principal amount of $294.8 million. The net proceeds were used to finance the early repayment and withdrawal of US$255.0 million principal amount of Videotron's 6 7/8% Senior Notes maturing in 2014, and settlement of the related hedges.
Detailed financial information
For a detailed analysis of Videotron's 2011 full year and fourth quarter results, please refer to the Management Discussion and Analysis and consolidated financial statements of Videotron, available on Quebecor's website at www.quebecor.com/en/.
Transition to IFRS
On January 1, 2011, Canadian Generally Accepted Accounting Principles ("GAAP"), as used by publicly accountable enterprises, were fully converged into IFRS. Prior to the adoption of IFRS, for all periods up to and including the year ended December 31, 2010, Videotron's consolidated financial statements were prepared in accordance with Canadian GAAP. IFRS uses a conceptual framework similar to Canadian GAAP, but there are significant differences related to recognition, measurement and disclosures.
The date of the opening balance sheet under IFRS and the date of transition to IFRS is January 1, 2010. The financial data for 2010 have therefore been restated. Videotron is also required to apply IFRS accounting policies retrospectively to determine its opening balance sheet, subject to certain exemptions. However, Videotron is not required to restate figures for periods prior to January 1, 2010 that were previously prepared in accordance with Canadian GAAP.
The new significant accounting policies under IFRS are disclosed in Note 1 to Videotron's consolidated financial statements for the year ended December 31, 2011. Note 27 describes the adjustments made by Videotron in preparing its IFRS opening consolidated balance sheet as of January 1, 2010 and in restating its previously published Canadian GAAP consolidated financial statements for the year ended December 31, 2010. Note 27 also provides details on exemption choices made by Videotron with respect to the general principle of retrospective application of IFRS.
DEFINITIONS
Operating Income
In its analysis of operating results, Quebecor defines operating income, as reconciled to net income under IFRS, as net income before amortization, financial expenses, gain (loss) on valuation and translation of financial instruments, charge for restructuring of operations and other special items, and income tax. Operating income as defined above is not a measure of results that is consistent with IFRS. It is not intended to be regarded as an alternative to other financial operating performance measures or to the statement of cash flows as a measure of liquidity. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management believes that operating income is a meaningful measure of performance. Quebecor uses operating income in order to assess the performance of its investment in Quebecor Media. Quebecor's management and Board of Directors use this measure in evaluating its consolidated results as well as the results of its operating segments. This measure eliminates the significant level of depreciation and amortization of tangible and intangible assets and is unaffected by the capital structure or investment activities of Quebecor and its segments. Operating income is also relevant because it is a significant component of the Quebecor's annual incentive compensation programs. A limitation of this measure, however, is that it does not reflect the periodic costs of tangible and intangible assets used in generating revenues in Quebecor's segments. In addition, measures like operating income are commonly used by the investment community to analyze and compare the performance of companies in the industries in which Quebecor is engaged. Quebecor's definition of operating income may not be the same as similarly titled measures reported by other companies.
Table 2 below provides a reconciliation of operating income to net income as disclosed in the consolidated financial statements.
| Table 2 |
| Reconciliation of Videotron's operating income, as reported in this press release, to the net income measure used in the consolidated financial statements |
| (in millions of Canadian dollars) |
| |
Year Ended
December 31 |
|
Three months
ended December 31 |
|
| |
2011 |
|
2010 |
|
2011 |
|
2010 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Income |
$ |
1,098.8 |
|
$ |
1,047.3 |
|
$ |
294.7 |
|
$ |
263.2 |
|
| Amortization |
|
(408.1 |
) |
|
(291.7 |
) |
|
(110.2 |
) |
|
(92.2 |
) |
| Financial expenses |
|
(158.0 |
) |
|
(153.2 |
) |
|
(39.1 |
) |
|
(35.7 |
) |
| Gain (loss) on valuation and translation of financial instruments |
|
56.2 |
|
|
24.4 |
|
|
57.0 |
|
|
(29.4 |
) |
| Restructuring of operations and other special items |
|
(12.6 |
) |
|
(11.4 |
) |
|
(0.5 |
) |
|
(9.4 |
) |
| Income tax |
|
(107.0 |
) |
|
(111.1 |
) |
|
(39.9 |
) |
|
(0.5 |
) |
| Net income |
$ |
469.3 |
|
$ |
504.3 |
|
$ |
162.0 |
|
$ |
96.0 |
|
Average Monthly Revenue per User
ARPU is an industry metric that Videotron uses to measure its monthly cable television, Internet access, cable telephony and mobile telephony revenues per average basic cable customer. ARPU is not a measurement that is consistent with IFRS and the Videotron's definition and calculation of ARPU may not be the same as identically titled measurements reported by other companies. Videotron calculates ARPU by dividing its combined cable television, Internet access, cable telephony and mobile telephony revenues by the average number of basic customers during the applicable period, and then dividing the resulting amount by the number of months in the applicable period.
Forward-Looking Statements
The statements in this press release that are not historical facts are forward-looking statements and are subject to significant known and unknown risks, uncertainties and assumptions that could cause Quebecor's actual results for future periods to differ materially from those set forth in the forward-looking statements. Forward-looking statements may be identified by the use of the conditional or by forward-looking terminology such as the terms "plans," "expects," "may," "anticipates," "intends," "estimates," "projects," "seeks," "believes," or similar terms, variations of such terms or the negative of such terms. Certain factors that may cause actual results to differ from current expectations include seasonality (including seasonal fluctuations in customer orders), operating risks (including fluctuations in demand for Quebecor's products and pricing actions by competitors), insurance risk, risks associated with capital investment (including risks related to technological development and equipment availability and breakdown), environmental risks, risks associated with labour agreements, risks associated with commodities and energy prices (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, risks associated with government acts and regulations, risks related to changes in tax legislation and to 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 Quebecor's actual results to differ from current expectations, please refer to Quebecor's public filings available at www.sedar.com and www.quebecor.com including, in particular, the "Risks and Uncertainties" section of Quebecor's Management Discussion and Analysis for the year ended December 31, 2010.
The forward-looking statements in this press release reflect Quebecor's expectations as of February 29, 2012 and are subject to change after that date. Quebecor 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 Corporation
Quebecor Inc. (TSX:QBR.A)(TSX:QBR.B) is a holding company with a 54.7% interest in Quebecor Media Inc., one of Canada's largest media groups, with more than 16,000 employees. Quebecor Media Inc., through its subsidiary Videotron Ltd., is an integrated communications company engaged in cable television, interactive multimedia development, Internet access services, cable telephone services and mobile telephone services. Through Sun Media Corporation, Quebecor Media Inc. is the largest publisher of newspapers in Canada. It also operates Canoe.ca and its network of English and French language Internet properties in Canada. In the broadcasting sector, Quebecor Media Inc. operates, through TVA Group Inc., the number one French language general interest television network in Québec, a number of specialty channels and the SUN News English language channel. Another subsidiary of Quebecor Media Inc., Nurun Inc., is a major interactive technologies and communications agency with offices in Canada, the United States, Europe and Asia. Quebecor Media Inc. is also active in magazine publishing (TVA Publishing Inc.), book publishing and distribution (Sogides Group Inc. and CEC Publishing Inc.), the production, distribution and retailing of cultural products (Archambault Group Inc. and TVA Films), video game development (BlooBuzz Studios, L.P.), DVD, Blu-ray disc and videogame rental and retailing (Le SuperClub Vidéotron Ltd), the printing and distribution of regional newspapers and flyers (Quebecor Media Printing Inc. and Quebecor Media Network Inc.), news content production and distribution (QMI Agency), multiplatform advertising solutions (QMI Sales) and the publishing of printed and online directories, through Quebecor MediaPages™.
| VIDEOTRON LTD. | |
| CONSOLIDATED STATEMENTS OF INCOME | |
| (in thousands of Canadian dollars) | |
| (unaudited) | |
| | Three months ended
December 31 | | Twelve months ended
December 31 | |
| | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
| | | | | | (restated) | | | | | | (restated) | |
| Revenues | | | | | | | | | | | | |
| | Cable television | $ | 261,751 | | $ | 245,897 | | $ | 1,012,604 | | $ | 950,590 | |
| | Internet | | 183,209 | | | 166,272 | | | 698,234 | | | 644,283 | |
| | Cable telephony | | 111,474 | | | 106,868 | | | 436,694 | | | 409,858 | |
| | Mobile telephony | | 34,297 | | | 16,892 | | | 112,743 | | | 53,167 | |
| | Business solutions | | 16,562 | | | 16,122 | | | 63,025 | | | 59,803 | |
| | Equipment sales | | 13,744 | | | 24,922 | | | 55,885 | | | 59,893 | |
| | Other | | 13,747 | | | 14,214 | | | 51,529 | | | 51,214 | |
| | | 634,784 | | | 591,187 | | | 2,430,714 | | | 2,228,808 | |
| | |
| Cost of sales and operating expenses | | 340,123 | | | 327,973 | | | 1,331,935 | | | 1,181,535 | |
| Amortization | | 110,223 | | | 92,166 | | | 408,133 | | | 291,738 | |
| Financial expenses | | 39,115 | | | 35,775 | | | 158,042 | | | 153,193 | |
| (Gain) loss on valuation and translation of financial instruments | | (57,040 | ) | | 29,363 | | | (56,142 | ) | | (24,373 | ) |
| Restructuring of operations and other special items | | 506 | | | 9,366 | | | 12,619 | | | 11,380 | |
| Income before income taxes | | 201,857 | | | 96,544 | | | 576,127 | | | 615,335 | |
| | |
| | |
| Income taxes | | | | | | | | | | | | |
| | Current | | (2,584 | ) | | (13,716 | ) | | (22,549 | ) | | 27,375 | |
| | Deferred | | 42,507 | | | 14,211 | | | 129,424 | | | 83,642 | |
| | | 39,923 | | | 495 | | | 106,875 | | | 111,017 | |
| | |
| Net income | $ | 161,934 | | $ | 96,049 | | $ | 469,252 | | $ | 504,318 | |
| | |
| | |
| Net income attributable to: | | | | | | | | | | | | |
| | Shareholder | $ | 161,882 | | $ | 95,901 | | $ | 469,023 | | $ | 504,074 | |
| | Non-controlling interest | | 52 | | | 148 | | | 229 | | | 244 | |
| | |
| | |
| | |
| VIDEOTRON LTD. | |
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |
| (in thousands of Canadian dollars) | |
| (unaudited) | |
| | Three months ended December 31 | | Twelve months ended December 31 | |
| | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
| | | | | | (restated) | | | | | | (restated) | |
| | |
| Net income | $ | 161,934 | | $ | 96,049 | | $ | 469,252 | | $ | 504,318 | |
| | |
| Other comprehensive (loss) income: | | | | | | | | | | | | |
| | Cash flow hedges: | | | | | | | | | | | | |
| | | (Loss) gain on valuation of derivative financial instruments | |
(17,594 | ) | |
(25,750 | ) | |
1,173 | | |
19,968 | |
| | | Deferred income taxes | | 4,014 | | | 5,879 | | | (2,879 | ) | | (1,275 | ) |
| | Defined benefit plans: | | | | | | | | | | | | |
| | | Actuarial loss and net change in asset limit and in minimum funding liability | |
(32,356 | ) | |
(8,109 | ) | |
(32,356 | ) | |
(9,427 | ) |
| | | Deferred income taxes | | 8,700 | | | 2,181 | | | 8,700 | | | 2,571 | |
| | Reclassification to income: | | | | | | | | | | | | |
| | | Other comprehensive loss related to cash flow hedges | | - | | | - | | | 801 | | | - | |
| | | Deferred income taxes | | - | | | - | | | (200 | ) | | - | |
| | | (37,236 | ) | | (25,799 | ) | | (24,761 | ) | | 11,837 | |
| Comprehensive income | $ | 124,698 | | $ | 70,250 | | $ | 444,491 | | $ | 516,155 | |
| | |
| | |
| Comprehensive income attributable to: | | | | | | | | | | | | |
| | Shareholder | $ | 124,646 | | $ | 70,102 | | $ | 444,262 | | $ | 515,911 | |
| | Non-controlling interest | | 52 | | | 148 | | | 229 | | | 244 | |
| |
| |
| |
| VIDEOTRON LTD. |
| CONSOLIDATED STATEMENTS OF EQUITY |
| |
| (in thousands of Canadian dollars) (unaudited) |
| Equity attributable to shareholder | |
| | |
Capital
stock | |
Contri-
buted
surplus | | |
Retained
earnings | | |
Accumu-
lated
other
compre-
hensive
loss | | | Equity
attribu-
table
to non-
control-
ling
interest | | |
Total
equity | |
| | |
| Balance as of December 31, 2009 as previously reported under Canadian GAAP (restated) | $ |
1 |
$ |
7,155 | |
$ |
726,444 | |
$ |
(22,832 | ) |
$ |
- | |
$ |
710,768 | |
| IFRS adjustments | | - | | (7,155 | ) | | (52,819 | ) | | - | | | 991 | | | (58,983 | ) |
| Balance as of January 1, 2010 | | 1 | | - | | | 673,625 | | | (22,832 | ) | | 991 | | | 651,785 | |
| Net income | | - | | - | | | 504,074 | | | - | | | 244 | | | 504,318 | |
| Other comprehensive (loss) | | | | | | | | | | | | | | | | | |
| income | | - | | - | | | (6,856 | ) | | 18,693 | | | - | | | 11,837 | |
| Issuance of shares | | 3,400 | | - | | | - | | | - | | | - | | | 3,400 | |
| Dividends | | - | | - | | | (437,000 | ) | | - | | | (95 | ) | | (437,095 | ) |
| Balance as of December 31, 2010 | | 3,401 | | - | | | 733,843 | | | (4,139 | ) | | 1,140 | | | 734,245 | |
| Net income | | - | | - | | | 469,023 | | | - | | | 229 | | | 469,252 | |
| Other comprehensive loss | | - | | - | | | (23,656 | ) | | (1,105 | ) | | - | | | (24,761 | ) |
| Acquisition of a subsidiary from an affiliated corporation | |
- | |
- | | |
(32,140 | ) | |
- | | |
- | | |
(32,140 | ) |
| Dividends | | - | | - | | | (140,000 | ) | | - | | | (55 | ) | | (140,055 | ) |
| Balance as of December 31, 2011 | $ |
3,401 |
$ |
- | |
$ |
1,007,070 | |
$ |
(5,244 | ) |
$ |
1,314 | |
$ |
1,006,541 | |
| | |
| | |
| | |
| VIDEOTRON LTD. | |
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |
| (in thousands of Canadian dollars) | |
| (unaudited) | |
| | Three months ended December 31 | | Twelve months ended December 31 | |
| | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
| | | | | | (restated) | | | | | | (restated) | |
| Cash flows related to operating activities | | | | | | | | | | | | |
| | Net income | $ | 161,934 | | $ | 96,049 | | $ | 469,252 | | $ | 504,318 | |
| | Adjustments for: | | | | | | | | | | | | |
| | | Amortization of fixed assets | | 87,352 | | | 73,100 | | | 322,878 | | | 254,469 | |
| | | Amortization of intangible assets | | 22,871 | | | 19,066 | | | 85,255 | | | 37,269 | |
| | | (Gain) loss on valuation and translation of financial instruments | |
(57,040 | ) | |
29,363 | | |
(56,142 | ) | |
(24,373 | ) |
| | | Amortization of financing costs and long-term debt premium or discount | |
1,372 | | |
901 | | |
4,238 | | |
3,556 | |
| | | Deferred income taxes | | 42,507 | | | 14,211 | | | 129,424 | | | 83,642 | |
| | | Gain on debt refinancing | | - | | | - | | | (2,713 | ) | | - | |
| | | Other | | (3,021 | ) | | (37 | ) | | (1,058 | ) | | (9 | ) |
| Net change in non-cash balances related to operating activities | |
(37,434 | ) | |
(83,651 | ) | |
(44,094 | ) | |
(77,397 | ) |
| Cash flows provided by operating activities | | 218,541 | | | 149,002 | | | 907,040 | | | 781,475 | |
| | |
| Cash flows related to investing activities | | | | | | | | | | | | |
| | Additions to fixed assets | | (189,158 | ) | | (190,371 | ) | | (725,404 | ) | | (651,146 | ) |
| | Additions to intangible assets | | (28,247 | ) | | (24,124 | ) | | (73,253 | ) | | (72,244 | ) |
| | Acquisition of a subsidiary from an affiliated corporation | | - | | | - | | | (32,140 | ) | | - | |
| | Disposal (acquisition) of preferred shares of a company under common control | |
- | | |
930,000 | | |
- | | |
(370,000 | ) |
| | Acquisition of tax deductions from the ultimate parent corporation | |
- | | |
(5,974 | ) | |
- | | |
(5,974 | ) |
| | Net change in temporary investments | | - | | | - | | | - | | | 30,000 | |
| | Other | | 1,836 | | | 1,827 | | | 4,893 | | | 7,319 | |
| Cash flows (used in) provided by investing activities | | (215,569 | ) | | 711,358 | | | (825,904 | ) | | (1,062,045 | ) |
| | |
| Cash flows related to financing activities | | | | | | | | | | | | |
| | Issuance of long-term debt, net of financing fees | | - | | | - | | | 294,846 | | | 293,888 | |
| | Net borrowings under bank credit facility | | 69,643 | | | - | | | 69,643 | | | - | |
| | Financing costs | | (1,413 | ) | | - | | | (3,862 | ) | | - | |
| | Repayment of long-term debt and settlement of related hedging contracts | |
- | | |
- | | |
(303,068 | ) | | - | |
| | (Repayment) issuance of subordinated loan from parent corporation | | - | | | (930,000 | ) | | - | | | 370,000 | |
| | Dividends | | (65,000 | ) | | (102,000 | ) | | (140,000 | ) | | (437,000 | ) |
| | Other | | - | | | - | | | (14 | ) | | (292 | ) |
| Cash flows provided by (used in) financing activities | | 3,230 | | | (1,032,000 | ) | | (82,455 | ) | | 226,596 | |
| Net change in cash and cash equivalents | | 6,202 | | | (171,640 | ) | | (1,319 | ) | | (53,974 | ) |
| Cash and cash equivalents at beginning of period | | 88,814 | | | 267,975 | | | 96,335 | | | 150,309 | |
| Cash and cash equivalents at end of period | $ | 95,016 | | $ | 96,335 | | $ | 95,016 | | $ | 96,335 | |
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| VIDEOTRON LTD. | |
| CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) | |
| (in thousands of Canadian dollars) | |
| (unaudited) | |
| | Three months ended December 31 | | Twelve months ended December 31 | |
| | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
| | |
Additional information on the consolidated
statements of cash flows | |
| | |
| Cash and cash equivalents consist of: | | | | | | | | | | | | |
| | Bank overdraft | $ | (21,483 | ) | $ | (24,214 | ) | $ | (21,483 | ) | $ | (24,214 | ) |
| | Cash equivalents | | 116,499 | | | 120,549 | | | 116,499 | | | 120,549 | |
| | $ | 95,016 | | $ | 96,335 | | $ | 95,016 | | $ | 96,335 | |
| | |
| Non-cash investing activities | | | | | | | | | | | | |
| | Net change in additions to fixed and intangible assets financed with accounts payable | $ |
(56,029 | ) |
$ |
11,611 | |
$ |
(28,956 | ) |
$ |
(16,589 | ) |
| | |
| Interest and taxes reflected as operating activities | | | | | | | | | | | | |
| | Cash interest payments | $ | 67,300 | | $ | 59,464 | | $ | 163,365 | | $ | 150,241 | |
| | Cash income tax payments (net of refunds) | | 5,164 | | | 2,058 | | | 6,141 | | | 6,456 | |
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| VIDEOTRON LTD. |
| CONSOLIDATED BALANCE SHEETS |
| (in thousands of Canadian dollars) |
| (unaudited) |
| |
| | December 31, | December 31, |
| | | 2011 | | 2010 |
| | | | | (restated) |
| Assets | | | | |
| |
| Current assets | | | | |
| | Cash and cash equivalents | $ | 95,016 | $ | 96,335 |
| | Accounts receivable | | 264,497 | | 245,691 |
| | Income taxes | | 10,819 | | 434 |
| | Amounts receivable from affiliated corporations | | 33,391 | | 10,608 |
| | Inventories | | 122,870 | | 96,549 |
| | Prepaid expenses | | 16,319 | | 21,689 |
| Total current assets | | 542,912 | | 471,306 |
| |
| Non-current assets | | | | |
| | Investments | | 1,630,000 | | 1,630,000 |
| | Fixed assets | | 2,602,215 | | 2,179,600 |
| | Intangible assets | | 711,426 | | 720,970 |
| | Derivative financial instruments | | 3,207 | | - |
| | Other assets | | 43,434 | | 46,028 |
| | Deferred income taxes | | 5,243 | | 6,134 |
| | Goodwill | | 451,545 | | 451,475 |
| Total non-current assets | | 5,447,070 | | 5,034,207 |
| Total assets | $ | 5,989,982 | $ | 5,505,513 |
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| VIDEOTRON LTD. | |
| CONSOLIDATED BALANCE SHEETS (continued) | |
| (in thousands of Canadian dollars) | |
| (unaudited) | |
| | |
| | December 31, | | December 31, | |
| | | 2011 | | | 2010 | |
| | | | | | (restated) | |
| | |
| Liabilities and Equity | | | | | | |
| | |
| Current liabilities | | | | | | |
| | Accounts payable and accrued charges | $ | 435,627 | | $ | 382,162 | |
| | Amounts payable to affiliated corporations | | 23,789 | | | 23,248 | |
| | Provisions | | 7,383 | | | 17,716 | |
| | Deferred revenue | | 248,195 | | | 227,211 | |
| | Income taxes | | - | | | 19,603 | |
| | Current portion of long-term debt | | 10,714 | | | - | |
| Total current liabilities | | 725,708 | | | 669,940 | |
| | |
| Non-current liabilities | | | | | | |
| | Long-term debt | | 1,846,343 | | | 1,786,076 | |
| | Subordinated loan from parent corporation | | 1,630,000 | | | 1,630,000 | |
| | Derivative financial instruments | | 222,212 | | | 289,032 | |
| | Deferred income taxes | | 454,716 | | | 316,185 | |
| | Other liabilities | | 104,462 | | | 80,035 | |
| Total non-current liabilities | | 4,257,733 | | | 4,101,328 | |
| Total liabilities | | 4,983,441 | | | 4,771,268 | |
| | |
| Equity | | | | | | |
| | Capital stock | | 3,401 | | | 3,401 | |
| | Retained Earnings | | 1,007,070 | | | 733,843 | |
| | Accumulated other comprehensive loss | | (5,244 | ) | | (4,139 | ) |
| | Equity attributable to shareholder | | 1,005,227 | | | 733,105 | |
| | Non-controlling interest | | 1,314 | | | 1,140 | |
| Total equity | | 1,006,541 | | | 734,245 | |
| Total liabilities and equity | $ | 5,989,982 | | $ | 5,505,513 | |