TVA Group Inc.
TSX : TVA.B

TVA Group Inc.

July 31, 2009 09:58 ET

TVA Group Inc. Records Net Income of $15.2 Million for the Quarter Ended June 30th, 2009

MONTREAL, CANADA--(Marketwire - July 31, 2009) - TVA Group Inc. ("the Company")(TSX:TVA.B) announces that it reported net income of $15.2 million, or $0.63 per share, for the second quarter of 2009, compared with net income of $12.9 million, or $0.49 per share, for the corresponding quarter of 2008.



Operating highlights for the second quarter:

- Growth in the Television sector's operating income(1) of $6,077,000, or
34.3%, compared with the same quarter of last year. This growth is
essentially explained by the following points:

- A non-recurring charge of $4,906,000 in the second quarter of 2008
related to disputed regulatory fees;
- Growth of 35.6% in normalized operating income1 from specialty
services; and
- Growth of 2.2% in advertising revenues and 5.9% in normalized
operating income for TVA Network.

- Operating income for the Publishing sector remained relatively stable at
$3,287,000 compared with $3,304,000 for the corresponding quarter of
2008, in spite of a 9.7% drop in revenues.

- The Distribution sector recorded an operating loss of $1,944,000,
compared with an operating income of $605,000 for the corresponding
quarter of 2008. This sector was strongly affected by bad debt expenses
of $1,350,000 during the quarter, in addition to experiencing a sharp
decline in activities over the corresponding quarter of 2008.


As a result, the Company's consolidated operating income was $25.1 million, compared with $21.7 million for the same quarter of 2008, an increase of 15.8%.

"We are satisfied with the Company's consolidated financial results for the second quarter of 2009. For the period of January 12 to May 3, 2009, the TVA Network has maintained its market shares at 28.8% in addition to having 25 of its shows among the 30 most-watched shows in Quebec. TVA Network newscasts continue to be number one and to see significant audience growth in each of their daily timeslots. News channel LCN achieved on average a 3.2 market shares compared with 2.5 in 2008. Furthermore, all of our French-language specialty channels showed positive operating income during the second quarter of the year. On the other hand, we remain concerned about industry trends and the economic situation," said Mr. Pierre Dion, President and CEO of TVA Group Inc.

(1) See definition of operating income and normalized operating income hereafter.

"In the Publishing sector, our careful cost management maintained operating income at the same level as the corresponding quarter of 2008 in spite of a 20.3% drop in advertising revenues. The profit margin for the quarter was 17.6%, compared with 16.0% for the corresponding quarter of 2008. Finally, the Distribution sector had a difficult quarter due to certain customers' financial difficulties and reduced commercial activity, particularly in video sales," concluded Pierre Dion.

Cash flows generated by operating activities were $22.5 million for the quarter, against $21.0 million for the corresponding year-ago period. This increase is essentially the result of the improvement in operating income.

Dividend

TVA Group Inc.'s Board of Directors today declared a dividend of $0.05 per share, payable on September 1st, 2009 to Class A and B shareholders of record as at August 17, 2009. This dividend is designated to be an eligible dividend, as provided under subsection 89(14) of the Income Tax Act of Canada and its provincial counterpart.

The Company

TVA Group Inc., a subsidiary of Quebecor Media Inc., is an integrated communications company involved in television, the production and distribution of audiovisual products, and in magazine publishing. TVA Group Inc. is one of the largest private sector producers and the largest private sector broadcaster of French-language entertainment, information and public affairs programming, and magazine publishing in North America. TVA Group Inc. also operates SUN TV, a conventional station in Toronto. The Company's Class B shares are listed on the Toronto Stock Exchange under the ticker symbol TVA.B.

The unaudited consolidated financial statements with notes and interim Management's Discussion and Analysis can be consulted on TVA's Web site at: www.tva.canoe.ca.

Definition of operating income or operating loss

In its analysis of operating results, the Company defines operating income or operating loss as earnings (loss) before amortization, financial expenses, restructuring costs of operations, income taxes (recovery), non-controlling interest and equity in income of companies subject to significant influence. Operating income or operating loss, as defined above, is not a measure of results that is consistent with Canadian Generally Accepted Accounting Principles ("GAAP"). Neither is it intended to be regarded as an alternative to other financial performance measures or to the statement of cash flows as a measure of liquidity. This measure is not intended to represent funds available for debt service, dividend payment, reinvestment or other discretionary uses, and should not be considered in isolation or as a substitute for other performance measures prepared in accordance with Canadian GAAP. Operating income is used by the Company because senior management believes it is a meaningful measurement of performance.

This measure is commonly used by senior management and the Board of Directors to evaluate the consolidated results of the Company and its sector's results. Measurements such as operating income are also commonly used by the investment community to analyze and compare the performance of companies in the industries in which we are engaged. The Company's definition of operating income may not be identical to similarly titled measures reported by other companies.

Definition of normalized operating income or operating loss

Normalized operating income or operating loss consists of operating income that is adjusted to take into account the adjustments to the disputed regulatory fees for the periods in question. Normalized operating income or operating loss presents the operating results as they would have been had they included the Canadian Radio-television and Telecommunications Commission (CRTC)'s Part II licence fees for the periods in question. Normalized operating income or operating loss, as defined above, is not a measure of results that is consistent with Canadian GAAP. Neither is it intended to be regarded as an alternative to other financial performance measures or to the statement of cash flows as a measure of liquidity. Senior management is using this measure to obtain comparable data in order to evaluate the Company's performance. The Company's definition of normalized operating income or operating loss may not be identical to similarly titled measures reported by other companies.

Forward-looking Information Disclaimer

The statements in this news release that are not historical facts may be forward-looking statements and are subject to important 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. Forward-looking statements generally can be identified by the use of the conditional, the use of forward-looking terminology such as "propose," "will," "expect," "may," "anticipate," "intend," "estimate," "plan," "foresee," "believe" or the negative of these terms or variations of them or similar terminology. Certain factors that may cause actual results to differ from current expectations include seasonality, operational risks (including pricing actions by competitors), capital investment risks, credit risk, government regulation risks, governmental assistance risks and general changes in the 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.tva.canoe.ca including, in particular, the "Risks and Uncertainties" section of the Company's Management's Discussion and Analysis for the year ended December 31, 2008.

The forward-looking statements in this news release reflect the Company's expectations as of July 31st, 2009, and are subject to change after this 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, unless required by the applicable securities laws.





TVA GROUP INC.
Consolidated statements of income
(unaudited)
(in thousands of dollars,
except per share amounts)
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Three-month periods Six-month periods
ended June 30 ended June 30
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2009 2008 2009 2008
Restated Restated
(note 2) (note 2)
--------------------------------------------------------------------------

Operating revenues $111,531 $111,054 $221,330 $217,514
Operating, selling and
administrative expenses 86,406 89,356 183,865 184,824
Amortization of property,
plant and equipment and 3,416 3,324 6,849 6,514
intangible assets
Financial expenses (note 3) 665 261 1354 978
Restructuring costs of
operations (note 4) (124) 184 (951) 184
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Income before income taxes,
non-controlling interest and
equity in income of
companies subject to
significant influence $21,168 $17,929 $30,213 $25,014
Income taxes 6,781 5,736 9,913 8,028
Non-controlling interest (544) (459) (1,094) (995)
Equity in income of companies
subject to significant
influence (242) (261) (274) (433)
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NET INCOME $15,173 $12,913 $21,668 $18,414
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BASIC AND DILUTED EARNINGS
PER SHARE (note 7 c) $0.63 $0.49 $0.90 $0.69
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See accompanying notes to consolidated financial statements



Consolidated statements of Comprehensive Income
(unaudited)
(in thousands of dollars)
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--------------------------------------------------------------------------
Three-month periods Six-month periods
ended June 30 ended June 30
--------------------------------------------------------------------------
2009 2008 2009 2008
Restated Restated
(note 2) (note 2)
--------------------------------------------------------------------------

Net income $15,173 $12,913 $21,668 $18,414
Other comprehensive income (loss)
Unrealized profit (loss) on
a derivative financial
instrument, net
of income taxes 79 - (13) -
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COMPREHENSIVE INCOME $15,252 $12,913 $21,655 $ 18,414
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See accompanying notes to consolidated financial statements



TVA GROUP INC.
Consolidated statements of retained earnings
(unaudited)
(in thousands of dollars)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Six-month periods
ended June 30
--------------------------------------------------------------------------
2009 2008
Restated
(note 2)
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Balance, at beginning of period, before restating $99,101 $95,610
Cumulative effects of changes in accounting policies
(note 2) (590) (698)
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Balance, at beginning of period, as restated 98,511 94,912

Net income 21,668 18,414
Adjustment for transactions with affiliated
companies (note 11) (7,780) -
Dividends paid (2,400) (2,702)
Share redemption - excess of purchase price over net
carrying value (note 7) (243) (36,193)
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Balance, at end of period $109,756 $74,431
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See accompanying notes to consolidated financial statements



TVA GROUP INC.
Consolidated balance sheets
(unaudited)
(in thousands of dollars)
--------------------------------------------------------------------------
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June 30, 2009 Dec. 31, 2008
Restated (note 2)
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ASSETS
Current assets
Cash $2,605 $5,262
Accounts receivable 91,081 101,702
Current income tax assets 2,281 2,697
Programs, broadcast and distribution
rights and inventories (note 5) 45,911 52,996
Future income tax assets 2,426 2,363
Others current assets (note 11) 5,495 2,664
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149,799 167,684

Programs, broadcast and distribution rights 45,657 35,952
Investments (note 11) 11,410 32,148
Property, plant and equipment 77,227 77,355
Licences and others intangible assets 83,424 80,950
Other assets 8,971 8,489
Future income tax assets 1,945 80
Goodwill 71,981 71,981
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$450,414 $474,639
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank overdraft $3,813 $147
Accounts payable and accrued liabilities 75,279 95,656
Current income tax liabilities 4,038 2,041
Broadcast and distribution rights payable 23,635 24,400
Deferred revenue 7,772 7,573
Long-term debt due within one year (note 6) 82,941 -
Other liabilities 784 366
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198,262 130,183

Broadcast rights payable 5,774 5,021
Long-term debt (note 6) - 93,705
Future income tax liabilities 32,323 31,342
Others long term liabilities 101 550
Non-controlling interest and redeemable
preferred shares (note 11) 812 11,656
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237,272 272,457
Shareholders' equity
Capital stock (note 7) 99,628 99,930
Contributed surplus 4,075 4,045
Retained earnings 109,756 98,511
Accumulated other comprehensive loss (note 9) (317) (304)
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213,142 202,182
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$450,414 $474,639
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See accompanying notes to consolidated financial statements



TVA GROUP INC.
Consolidated statements of cash flows
(unaudited)
(in thousands of dollars)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Three-month periods Six-month periods
ended June 30 ended June 30
--------------------------------------------------------------------------
2009 2008 2009 2008
Restated Restated
(note2) (note2)
--------------------------------------------------------------------------

CASH FLOWS FROM OPERATING
ACTIVITIES
Net income $15,173 $12,913 $21,668 $18,414
Non-cash items
Amortization 3,438 3,345 6,893 6,558
Equity in income of
companies subject to
significant influence (242) (261) (274) (433)
Non-controlling interest (544) (459) (1,094) (995)
Future income taxes 310 702 (209) 1,471
Others (237) (128) (482) (189)
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Cash flows provided by
current operations 17,898 16,112 26,502 24,826
Net change in non-cash items 4,591 4,876 (9,657) (7,073)
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Cash flows from operating
activities 22,489 20,988 16,845 17,753
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CASH FLOWS FROM INVESTING
ACTIVITIES
Additions to property,
plant and equipment (3,441) (4,098) (8,481) (5,585)
Additions to intangible
assets (2,547) (801) (2,934) (1,785)
Changes in investments
(note 11) 11,750 - 11,750 (489)
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Cash flows from investing
activities 5,762 (4,899) 335 (7,859)
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CASH FLOWS FROM FINANCING
ACTIVITIES
Bank overdraft (1,587) (3,247) 3,666 112
(Decrease) increase in
long-term debt (14,543) 39,925 (10,808) 43,089
Redeemable preferred share
redemption (note 11) (9,750) - (9,750) -
Class B share redemption
(note 7b) (515) (51,400) (545) (51,400)
Dividends paid (1,199) (1,351) (2,400) (2,702)
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Cash flows from financing
activities (27,594) (16,073) (19,837) (10,901)
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Net change in cash 657 16 (2,657) (1,007)
Cash, at beginning of period 1,948 2,202 5,262 3,225
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Cash, at end of period $2,605 $2,218 $2,605 $2,218
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SUPPLEMENTAL INFORMATION
Net interests paid $1,486 $133 $1,348 $1,007
Net income taxes paid 3,605 4,079 7,710 15,438
Additions to property,
plant and equipment and
intangible
assets financed by accounts
payable and accrued
liabilities at end of
period $1,313 $4,260
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See accompanying notes to consolidated financial statements

TVA GROUP INC.
Notes to consolidated financial statements
Three-month and six-month periods ended June 30, 2009 and 2008 (unaudited)
(Amounts presented in the tables are expressed in thousands of dollars,
except per-share and per-option amounts)


1. FINANCIAL STATEMENT PRESENTATION

These consolidated financial statements have been prepared in conformity with Canadian Generally Accepted Accounting Principles ("GAAP"). With the exception of the accounting policies presented in note 2 for the current quarter, the same accounting policies described in the consolidated financial statements included in the latest annual report of TVA Group Inc. ("the Company") have been used. However, these consolidated financial statements do not include all disclosures required under Canadian GAAP for an annual report and accordingly should be read in conjunction with the Company's latest annual consolidated financial statements and the notes thereto.

Some of the Company's businesses experience seasonality effects due to, among other things, seasonal advertising patterns and their influence on people's viewing, reading and listening habits. Because the Company depends on the sale of advertising for a significant portion of its revenue, operating results are also sensitive to prevailing economic conditions, including changes in local, regional and national economic conditions, particularly as they may affect advertising expenditures. Accordingly, the results of operations for interim periods should not necessarily be considered indicative of full-year results due to the seasonality of certain operations.

2. CHANGES IN ACCOUNTING POLICIES

Effective January 1, 2009, the Company adopted the Canadian Institute of Chartered Accountants Handbook (CICA Handbook) Section 3064, Goodwill and Intangible Assets, which replace Section 3062, Goodwill and Other Intangible Assets, Section 3450, Research and Development Costs, and Emerging Issues Committee (EIC) 27, Revenues and Expenditures During the Pre-operating Period, and to modify Accounting Guideline (AcG) 11, Entreprises in the Development Stage. The new section establishes standards for recognizing intangible assets in the sense of the definition of assets based on principles for recognizing costs as assets and for clarifying the application of the concept of matching revenues and expenses for intangible assets acquired or developed internally. This new section was applied retroactively with restatement of previous periods. Subsequent to the adoption of this section, the Company reclassified the net carrying value of its software and Web sites from property, plant and equipment to intangible assets and wrote off the undepreciated balance of deferred start-up costs for specialty channels included under Other assets as well as related future tax liabilities. The writing off of these balances was recorded as an adjustment of retained earnings at the beginning of the period. Net income for three-month and six-month periods ended June 30, 2008 was also corrected in order to recognize start-up costs for the Les idees de ma maison specialty channel, launched in February 2008, as operating, selling and administrative expenses, to reverse the amortization expense for deferred start-up costs for specialty channels and to reverse the future tax expense related to these items. This resulted in the following adjustments being recognized in the consolidated financial statements:



Consolidated Balance Sheets

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Increase (decrease) December 31, 2008 January 1, 2008
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Property, plant and equipement $(11,235) $(8,187)
Intangible assets 11,235 8,187
Other assets (854) (1,020)
Future long-term income tax liabilities (264) (322)
Retained earnings (590) (698)
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Consolidated Statements of Income

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Increase (decrease) Three-month period Six-month period
ended June 30, 2008 ended June 30, 2008
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Operating, selling and
administrative expenses $- $400
Amortization (137) (262)
Future income taxes expense 42 (37)
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Net income $95 $(101)
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Basic and diluted earnings per share $- $(0.01)
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Future changes in accounting policies

In January 2009, the Canadian Institute of Chartered Accountants issued three new accounting standards, Section 1582, Business Combinations, Section 1601, Consolidated Financial Statements, and Section 1602, Non-controlling Interests, with a view to moving toward international standards for business combinations and the presentation of non-controlling interests in consolidated financial statements.

Section 1582, Business Combinations, replaces Section 1581, Business Combinations, and sets out the main principles governing the recognition of the purchase consideration as well as the recognition and measurement of identifiable assets acquired and liabilities assumed in a business combination achieved at the fair value of the business acquired on the acquisition date, even if the business combination is achieved in stages. Subsequent changes to the fair value of the contingent consideration classified as a liability would be recognized as retained earnings and not as an adjustment of the consideration exchanged for the business acquired. Restructuring costs and other costs related directly to the business combination are no longer considered costs included in the recognized price of acquisition and would instead be recognized as expenses in the periods during which they are incurred, unless they are considered costs for the issuing of new debt or equity. In addition, for each business combination, the purchaser must recognize the non-controlling interest in the business acquired either at its fair value or the participating percentage in the net identifiable assets of the business acquired. This section should be applied prospectively to business combinations for which the acquisition date falls within a fiscal year beginning on January 1, 2011 or a later date. The Company has not adopted this new section as early as permitted. The new section will only affect future business acquisitions that are carried out during periods that follow the adoption date.

Section 1601, Consolidated Financial Statements, and Section 1602, Non-controlling Interests, which together replace Section 1600, Consolidated Financial Statements, apply to the recognition of non-controlling interests in consolidated financial statements and to transactions with holders of non-controlling interests. The new sections require that non-controlling interests be included as a separate item in shareholders' equity. These sections apply to consolidated interim and annual financial statements for fiscal years beginning on January 1, 2011 and will be adopted at the same time as Section 1582.



3. FINANCIAL EXPENSES

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Three-month periods Six-month periods
ended June 30 ended June 30
--------------------------------------------------------------------------
2009 2008 2009 2008
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Interests on long-term debt $626 $779 $1,351 $1,518
Dividends on redeemable
preferred shares 252 263 513 530
Interest revenues on
convertible bonds issued by
an affiliated company (244) (255) (496) (513)
Interest income (4) (572) (76) (624)
Amortization of deferred
financing costs 22 22 44 44
Foreign exchange (gain) loss (14) 24 (9) 23
Others 27 - 27 -
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$665 $261 $1,354 $978
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4. RESTRUCTURING COSTS OF OPERATIONS

In the second quarter of 2009, based on the new information available, the
Company has revised its provision for restructuring costs resulting in a
$124,000 provision decrease ($951,000 for the six-month period ended June
30, 2009). During the corresponding quarter of 2008, the Company recorded a
provision for restructuring costs of $184,000 following the elimination of
a position in the Television sector. The balance of the restructuring
provision was $882,000 as at June 30, 2009 ($2,796,000 as at December 31,
2008).

5. PROGRAMS, BROADCAST AND DISTRIBUTION RIGHTS AND INVENTORIES

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June 30, 2009 Dec.31, 2008
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Programs, broadcast and
distribution rights $42,370 $49,445
Inventories 3,541 3,551
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$45,911 $52,996
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6. LONG-TERM DEBT

The Company has actually a revolving-term bank loan for a maximum amount of
$160,000,000, bearing interest at floating rates, of which $76,427,000 was
unused and available as at June 30, 2009. Under this credit agreement, the
Company is subject to certain covenants including maintenance of certain
financial ratios. As at June 30, 2009, the Company was in compliance with
these covenants. The Company has included its long-term debt as current
liabilities considering its credit agreement matures within a year, on June
15, 2010 and it has not renewed it yet.

7. CAPITAL STOCK

a) Number of shares outstanding

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June 30, 2009 Dec. 31, 2008
--------------------------------------------------------------------------
Class A common shares 4,320,000 4,320,000
Class B shares 19,644,506 19,704,206
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23,964,506 24,024,206
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b) Share redemption

Issuer bid

On March 17, 2009, the Company has filed a new notice of intent to repurchase for cancellation between March 19, 2009 and March 18, 2010, in the normal course of its activities, a maximum of 985,210 Class B shares which represent approximately 5% of the Company's outstanding Class B shares. The Company repurchases its Class B shares at the market price, at the time of the purchase, plus brokerage fees. During the second quarter of 2009, pursuant to its normal course issuer bid programs, the Company redeemed for cancellation a total of 56,200 Class B shares for a net cash consideration of $515,000 (59,700 shares redeemed and cancelled for the six-month period ended June 30, 2009 for a net cash consideration of $545,000).

Substantial issuer bid

During the second quarter of 2008, the Company filed a substantial issuer bid to redeem for cancellation up to 3,000,000 of its participating Class B non-voting shares for a fixed price of $17.00 per share. A total of 9,189,542 Class B shares were deposited as at the expiration of the offer. Taking into account the proration factor, adjustments for odd lot purchases and to avoid the creation of new irregular lots, the Company took up 3,000,642 Class B shares, for a total consideration of $51,010,914, plus $389,000 in transaction fees. The Class B shares redeemed for cancellation under this issuer bid represented 13.2% of the 22,704,848 Class B shares issued and outstanding before the redemption.



c) Earnings per share

The following table provides the calculation of basic and diluted earnings
per share:

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--------------------------------------------------------------------------
Three-month periods Six-month periods
ended June 30 ended June 30
--------------------------------------------------------------------------
2009 2008 2009 2008
Restated Restated
(note 2) (note 2)
--------------------------------------------------------------------------

Net income $15,173 $12,913 $21,668 $18,414
Weighted average number
of shares outstanding 23,978,699 26,101,574 24,001,288 26,563,211
Effect of dilutive
stock options - 45,534 - 24,350
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Weighted average number
of diluted shares
outstanding 23,978,699 26,147,108 24,001,288 26,587,561
Basic and diluted
earnings per share $0.63 $0.49 $0.90 $0.69
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8. STOCK-BASED COMPENSATION AND OTHER STOCK-BASED PAYMENTS

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Conventional Quebecor
Class B stock Media Inc.
options stock options
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Balances as at December 31, 2008,
March 31, 2009 and June 30, 2009 975,155 245,984
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Of the number of options outstanding as at June 30, 2009, 233,110
conventional Class B stock options at an average exercise price of $18.91
and 11,771 Quebecor Media Inc. stock options at an average exercise price
of $29.58 can be exercised.

9. ACCUMULATED OTHER COMPREHENSIVE LOSS

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Interest rate SWAP
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Balance as at December 31, 2008 $(304)
Other comprehensive loss (13)
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Balance as at June 30, 2009 $(317)
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10. PENSION PLANS AND OTHER RETIREMENT BENEFITS

The Company maintains defined benefit and defined contribution pension
plans for its employees. In addition, under an old plan, the Company
maintains for certain retired employees other retirement benefits, such as
health, life and dental insurance plans. Total costs for these benefits are
as follows:

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Three-month periods Six-month periods
ended June 30 ended June 30
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2009 2008 2009 2008
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Pension plans
Defined benefit plans $817 $718 $1,472 $1,400
Defined contribution plans 753 675 1,492 1,247

Other retirement benefits $32 $47 $65 $94
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11. RELATED-PARTY TRANSACTIONS

On June 27, 2009, a subsidiary of the Company, SUN TV Company, owned at 75% and operating the television station SUN TV, entered into a fiscal consolidation reduction transaction created July 12, 2005 with its non-controlling shareholder Sun Media Corporation, a company under common control of its parent, Quebecor Media Inc. To realize this transaction, SUN TV Company received a total repayment of the Sun Media Corporation convertible bonds for $9,750,000. In return, SUN TV Company repurchased from Sun Media Corporation all of the preferred shares redeemable at the option of the holder, carrying a 10.85% fixed cumulative dividend, for a total of $9,750,000. This transaction results for the Company, on a consolidated level, in a reduced long-term investment in convertible bonds of $9,750,000, and an equivalent reduction in redeemable preferred shares disclosed under the heading "Non-controlling interest and redeemable preferred shares."

During the second quarter of 2009, our parent company, Quebecor Media Inc., proceeded to the liquidation of Canoe Inc., which was 86.2% owned by Quebecor Media Inc. and 13.8% by TVA Group Inc., and its assets were distributed proportionally to shareholders. All the transactions resulting from this liquidation were recorded at carrying amount of assets transferred between the related companies, and an adjustment of $7,780,000 was recorded directly to the Company's retained earnings. This adjustment represents the difference between the carrying amount of $11,262,000 of the Group TVA Inc. investment in Canoe and the net carrying amount of $3,482,000 of assets received upon liquidation, including $2,000,000 in cash, three portals including the site "Argent/Money" and their related income tax benefits. Moreover, the Company has undertaken to become the sole owner of the television station SUN TV, for which the Company paid $2,000,000 to Sun Media Corporation on June 29, 2009, that is subject to the approval of the Canadian Radio-television and Telecommunications Commission ("CRTC").

12. SEGMENTED INFORMATION

The following table includes information on operating income, as well as information on assets:



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Three-month periods Six-month periods
ended June 30 ended June 30
--------------------------------------------------------------------------
2009 2008 2009 2008
Restated Restated
(note 2) (note 2)
--------------------------------------------------------------------------
Operating revenues
Television $91,685 $86,664 $181,912 $169,944
Publishing 18,647 20,640 36,746 39,901
Distribution 1,838 4,359 4,505 9,408
Intersegment items (639) (609) (1,833) (1,739)
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111,531 111,054 221,330 217,514
Operating, selling and
administrative expenses
Television 67,883 68,939 147,998 143,044
Publishing 15,360 17,336 31,123 34,926
Distribution 3,782 3,754 6,530 8,786
Intersegment items (619) (673) (1,786) (1,932)
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86,406 89,356 183,865 184,824
Income (loss) before
amortization, financial
expenses, restructuring
costs of operations, income
taxes, non-controlling
interest and equity in income
of companies subject to
significant influence
Television 23,802 17,725 33,914 26,900
Publishing 3,287 3,304 5,623 4,975
Distribution (1,944) 605 (2,025) 622
Intersegment items (20) 64 (47) 193
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$25,125 $21,698 $37,465 $32,690
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The intersegment items mentioned above represent the elimination of normal
course business transactions made between the Company's business segments
regarding revenues and expenses.

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June 30, 2009 December 31, 2008
Restated (note 2)
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Total assets
Television $350,298 $362,213
Publishing 82,330 80,158
Distribution 17,786 21,006
Unallocated items (note 11) - 11,262
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$450,414 $474,639
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Contact Information

  • TVA Group Inc.
    Denis Rozon, CA
    Vice-President and Chief Financial Officer
    514-598-2808