Quebecor Inc. Reports Fourth Quarter and Full-Year 2012 Consolidated Results

Quebecor Inc. Reports Fourth Quarter and Full-Year 2012 Consolidated Results 
MONTREAL, QUEBEC -- (Marketwire) -- 03/14/13 -- Quebecor Inc.
("Quebecor" or the "Corporation") (TSX:QBR.A)(TSX:QBR.B) today
reported its fourth quarter and full-year consolidated financial
results for 2012. Quebecor consolidates the financial results of its
Quebecor Media Inc. ("Quebecor Media") subsidiary. The Corporation's
interest in Quebecor Media increased from 54.7% to 75.4% on October
11, 2012 as a result of the repurchase of part of the interest held
by CDP Capital d'Amerique Investissement inc. ("CDP Capital"), a
subsidiary of Caisse de depot et placement du Quebec.  
Highlights 
2012 financial year 


 
--  Revenues up $145.2 million (3.5%) to $4.35 billion in 2012, mainly
    because of the 8.4% revenue growth in the Telecommunications segment. 
    
--  Operating income(1) up $61.9 million (4.6%) from 2011 to $1.40 billion. 
    
--  Net income attributable to shareholders: $167.7 million ($2.65 per basic
    share), down $33.3 million ($0.49 per basic share) from $201.0 million
    ($3.14 per basic share) in 2011. 
    
--  Adjusted income from continuing operations(2): $196.1 million ($3.10 per
    basic share) in 2012, up $4.6 million ($0.11 per basic share) from
 
   $191.5 million ($2.99 per basic share) in 2011. 
    
--  Revenues of Videotron Ltd. ("Videotron") up in 2012 for all major
    services: Internet access (up $74.3 million or 10.6%), cable television
    ($66.7 million or 6.6%), mobile telephony ($58.9 million or 52.3%), and
    cable telephony ($18.2 million or 4.2%). 
    
--  Videotron's revenue generating units(3) up 221,800 in 2012 compared with
    an increase of 379,100 in 2011, which was bolstered by the
    discontinuation of the over-the-air analog television broadcasting in
    Canada. 
    
--  Despite aggressive competition in its footprint, Videotron recorded in
    2012 the largest growth in revenue generating units, in absolute terms,
    of all Canadian cable operators. 
    
--  Videotron has added 402,600 subscriber connections to its mobile
    telephony service since it was launched in September 2010. 
    
--  Videotron's operating income up $126.2 million (11.5%) in 2012 and
    average monthly revenue per user (4) ("ARPU") up $8.29 (8.0%) to
    $111.57. 
    
--  Quebecor optimized its capital structure in 2012 through transactions
    aimed at creating value for shareholders, including extension of debt
    maturities by means of financing at more advantageous interest rates and
    the repurchase of part of CDP Capital's interest in Quebecor Media,
    increasing the Corporation's interest from 54.7% to 75.4%. 
    
--  A total non-cash charge of $187.0 million for impairment of goodwill and
    intangible assets, in accordance with International Financial Reporting
    Standards ("IFRS") accounting valuation principles, reflected continuing
    weak market conditions in the newspaper and music industries. 
    
 
(1)  See "Operating income" under "Definitions."                            
                                                                            
(2)  See "Adjusted income from continuing operations" under "Definitions."  
                                                                            
(3)  The sum of cable television, cable and mobile Internet access, cable   
     telephony service subscriptions and subscriber connections to the      
     mobile telephony service.                                              
                                                                            
(4)  See "Average monthly revenue per user" under "Definitions."            

 
Fourth quarter 2012 


 
--  Revenues down $5.6 million (-0.5%) from the fourth quarter of 2011 to
    $1.14 billion. 
    
--  Operating income up $1.6 million (0.4%) to $370.8 million. Videotron's
    operating income up $15.7 million (5.3%). 
    
--  Net income attributable to shareholders: $9.2 million ($0.15 per basic
    share), down $76.2 million ($1.19 per basic share) from $85.4 million
    ($1.34 per basic share) in the fourth quarter of 2011. 
    
--  Adjusted income from continuing operations: $56.0 million in the fourth
    quarter of 2012 ($0.89 per basic share), up $0.4 million ($0.02 per
    basic share) from $55.6 million ($0.87 per basic share) in the same
    quarter of 2011. 
    
--  Videotron's revenue generating units up 59,400 in fourth quarter 2012,
    also the largest increase among Canadian cable operators. 
    
--  On November 13, 2012, Sun Media Corporation announced new restructuring
    initiatives designed to streamline its organizational structure to
    support better execution of business processes while improving cost
    effectiveness. These initiatives are expected to yield total annual
    savings exceeding $45.0 million. 

 
"Quebecor's results for the 2012 financial year reflect the
reliability of the investment strategy we have been pursuing in
recent years, primarily entailing capital expenditures for mobile
telephony, modernizing Videotron's networ
k, and developing attractive
new products, including illico TV new generation, which was launched
in 2012," said Pierre Karl Peladeau, President and Chief Executive
Officer of Quebecor. "Despite continuing strong competition in most
of its lines of business, the Corporation ended 2012 with a revenue
increase of 3.5% compared with 2011, and an operating income increase
of 4.6%. The Telecommunications segment continued to be a powerful
driver of growth." 
"Videotron had a solid year in 2012," said Robert Depatie, President
and Chief Executive Officer of Videotron. "Revenues were up for all
of our main services, generating overall revenue growth of 8.4% in
the segment. Operating income grew by $126.2 million, an 11.5%
increase over the previous year. Videotron recorded a net increase of
221,800 revenue generating units and an $8.29 or 8.0% increase in
average monthly revenue per user, compared with 2011. Subscriber
additions to the mobile network launched in September 2010, which
totalled 154,500 in 2011 and 112,000 in 2012, contributed to the
customer growth and the increase in profitability. Meanwhile, the
cable Internet access and cable telephony services added 55,200 and
59,600 customers respectively in 2012, and the illico TV new
generation service passed the half-million subscriber mark,
reflecting the success of our business strategy based on marketing
bundled services and satisfying customer needs with respect to
product development and service quality.  
"Also, at the end of February 2013, Videotron launched illico Club
Unlimited, a new subscription video on demand service that carries
the largest selection of unlimited on-demand French-language titles
in Canada. It is a product developed by Quebecers to meet customer
needs, in keeping with Videotron's commitment to continuously improve
the customer experience it provides."  
"The News Media segment's results were down significantly in 2012
compared with the previous year," said Pierre Karl Peladeau. "The
upheavals in the traditional print media industry, combined with a
stagnant economy, negatively affected the profitability of our
publications. The impact of the investments made to generate new
revenue streams and the large fixed component of the segment's
operating costs were also important factors. The News Media segment
needs to adapt its business model and streamline its cost structure.
To continue meeting this challenge, the segment launched another
reorganization of its newsgathering, editorial, advertising and
industrial operations in 2012, with the goal of streamlining its
organizational structures and accelerating decision-making. The
organizational changes are expected to yield estimated annual savings
of $45.0 million." 
In the Broadcasting segment, some of TVA Group Inc.'s ("TVA Group")
hit shows, such as the 2012 edition of Star Academie and the new show
La Voix, which has been on the air since the beginning of 2013, have
posted exceptional ratings and market shares, with average audiences
of 2.2 million for the weekly Star Academie galas and 2.7 million for
the weekly La Voix specials, and market shares of 54.5% and 57.5%
respectively, demonstrating once again the success of Quebecor's
convergence strategy in creating value-added multiplatform content
around high-quality television products for the benefit of all of
Quebecor's media properties.  
Jean-Francois Pruneau, Chief Financial Officer of Quebecor, noted
that no summary of Quebecor's 2012 highlights would be complete
without mentioning a major financial event: the repurchase of part of
CDP Capital's interest in Quebecor Media for $1.50 billion. "This
mutually advantageous transaction increased the Corporation's
interest in Quebecor Media from 54.7% to 75.4%, while respecting the
Corporation's fundamental financial objectives of maintaining a
sufficient level of operational and financial flexibility." 
For Quebecor, 2012 was therefore a year that saw solid consolidated
financial results, one of the largest financial transactions in the
Corporation's history, and continued restructuring and adaptation
efforts in all its segments. Quebecor is thus pursuing its goals of
growth, profitability, business development, and shareholder value
creation.  


 
Table 1                                                                     
Quebecor financial highlights, 2008 to 2012                                 
(in millions of Canadian dollars, except per share data)                    
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                            2012(1)   2011(1)   2010(1)   2009(2)   2008
(2) 
----------------------------------------------------------------------------
                                                                            
Revenues                  $ 4,351.8 $ 4,206.6 $ 4,000.1 $ 3,806.4 $ 3,759.4 
Operating income            1,403.6   1,341.7   1,333.4   1,276.7   1,121.1 
Income (loss) from                                                          
 continuing operations                                                      
 attributable to                                                            
 shareholders                 167.7     201.0     225.3     276.1    (195.3)
Net income attributable                                                     
 to shareholders              167.7     201.0     225.3     277.7     188.0 
Adjusted income from                                                        
 continuing operations        196.1     191.5     220.6     236.3     179.4 
Per basic share:                                                            
  Income (loss) from                                                        
   continuing operations                                                    
   attributable to                                                          
   shareholders                2.65      3.14      3.50 
     4.30     (3.04)
  Net income attributable                                                   
   to shareholders             2.65      3.14      3.50      4.32      2.92 
  Adjusted income from                                                      
   continuing operations       3.10      2.99      3.42      3.68      2.79 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(1)  Financial figures for 2010 to 2012 are presented in accordance with    
     IFRS.                                                                  
                                                                            
(2)  Financial figures for 2008 and 2009 are presented in accordance with   
     Canadian Generally Accepted Accounting Principles.                     

 
2012/2011 financial year comparison 
Revenues: $4.35 billion, an increase of $145.2 million (3.5%). 


 
--  Revenues increased in Telecommunications ($204.4 million or 8.4% of
    segment revenues), Interactive Technologies and Communications ($24.6
    million or 20.3%) and Broadcasting ($15.6 million or 3.5%). 
    
--  Revenues decreased in News Media ($58.4 million or -5.7%) and Leisure
    and Entertainment ($20.4 million or -6.5%). 

 
Operating income: $1.40 billion, an increase of $61.9 million (4.6%). 


 
--  Operating income increased in Telecommunications ($126.2 million or
    11.5% of segment operating income) and Interactive Technologies and
    Communications ($1.9 million or 24.1%). 
    
--  Operating income decreased in News Media ($35.0 million or -23.3%),
    Leisure and Entertainment ($13.5 million or -50.8%), Broadcasting ($12.4
    million or -24.6%), and Head Office ($5.3 million). The decrease at Head
    Office mainly reflects the unfavourable variance in the fair value of
    stock options. 
    
--  The change in the fair value of Quebecor Media stock options resulted in
    a $10.4 million unfavourable variance in the consolidated stock-based
    compensation charge in 2012 compared with 2011. The fair value of the
    options increased in 2012, whereas it decreased in 2011. The change in
    the fair value of Quebecor stock options resulted in an $11.3 million
    unfavourable variance in the Corporation's consolidated stock-based
    compensation charge in 2012. 

 
Net income attributable to shareholders: $167.7 million ($2.65 per
basic share), down $33.3 million ($0.49 per basic share) from $201.0
million ($3.14 per basic share) in 2011.  


 
--  The decrease was mainly due to: 
    
    --  $201.5 million charge for impairment of goodwill and intangible
        assets recorded in 2012; 
        
    --  $88.1 million increase in amortization charge; 
        
    --  $61.1 million unfavourable variance in loss on debt refinancing; 
        
    --  $11.7 million increase in financial expenses.
        
        Partially offset by:
        
        
    --  $142.9 million favourable variance in gain on valuation and
        translation of financial instruments; 
        
    --  $61.9 million increase in operating income. 

 
Adjusted income from continuing operations: $196.1 million in 2012
($3.10 per basic share), compared with $191.5 million ($2.99 per
basic share) in 2011, an increase of $4.6 million ($0.11 per basic
share). 
2012/2011 fourth quarter comparison  
The fourth quarter of the 2011 financial year contained an additional
week in the News Media, Broadcasting, Leisure and Entertainment, and
Interactive Technologies and Communications segments. 
Revenues: $1.14 billion, a decrease of $5.6 million (-0.5%).  


 
--  Revenues decreased in News Media ($31.1 million or -11.3% of segment
    revenues), Leisure and Entertainment ($16.7 million or -15.7%) and
    Broadcasting ($2.7 million or -2.1%). 
    
--  Revenues increased in Telecommunications ($43.5 million or 6.9%). 

 
Operating income: $370.8 million, an increase of $1.6 million (0.4%). 


 
--  Operating income increased in Telecommunications ($15.7 million or 5.3%
    of segment operating income) and Interactive Technologies and
    Communications ($0.9 million or 36.0%). 
    
--  Operating income decreased in News Media ($8.4 million or -17.9%),
    Broadcasting ($3.4 million or -16.5%), and Leisure and Entertainment
    ($2.6 million or -34.2%). 
    
--  The change in the fair value of Quebecor Media stock options resulted in
    a $3.1 million unfavourable variance in the consolidated stock-based
    compensation charge in the fourth quarter of 2012 compared with the same
    per
iod of 2011. The change in the fair value of Quebecor stock options
    resulted in a $3.7 million unfavourable variance in the Corporation's
    consolidated stock-based compensation charge in the fourth quarter of
    2012. 

 
Net income attributable to shareholders: $9.2 million ($0.15 per
basic share) compared with $85.4 million ($1.34 per basic share) in
the fourth quarter of 2011, a decrease of $76.2 million ($1.19 per
basic share). 


 
--  The unfavourable variance was due primarily to: 
    
    --  $126.5 million unfavourable variance in gains and losses on
        valuation and translation of financial instruments; 
        
    --  recognition of a $60.4 million loss on debt refinancing; 
        
    --  $29.2 million increase in amortization charge; 
        
    --  $17.7 million increase in financial expenses.
        
        Partially offset by: 
        
        
    --  $10.6 million decrease in charge for restructuring of operations,
        impairment of assets and other special items. 

 
Adjusted income from continuing operations: $56.0 million in the
fourth quarter of 2012 ($0.89 per basic share) compared with $55.6
million ($0.87 per basic share) in the same quarter of 2011, an
increase of $0.4 million ($0.02 per basic share). 
Financing  
A number of financial transactions were carried out during 2012. 


 
--  On December 17, 2012, Quebecor Media prepaid the balance outstanding
    under its term loan "B" credit facility for a cash consideration of
    $153.9 million. 
    
--  On October 11, 2012, the Corporation increased its interest in Quebecor
    Media further to the closing of the following transactions: 
    
    --  Quebecor Media repurchased 20,351,307 of its common shares held by
        CDP Capital for an aggregate purchase price of $1.0 billion, paid in
        cash. All the repurchased shares were cancelled; 
        
    --  Quebecor purchased 10,175,653 common shares of Quebecor Media held
        by CDP Capital. To evidence the obligation of the Corporation to pay
        the purchase price of such shares, the Corporation issued to CDP
        Capital $500.0 million aggregate principal amount of subordinated
        debentures, bearing interest at 4.125% and maturing in 2018, which
        are convertible into Class B Subordinate Voting Shares ("Class B
        shares") of Quebecor. 
        
--  Further to the completion of these transactions, Quebecor's interest in
    Quebecor Media increased from 54.7% to 75.4% and CDP Capital's interest
    decreased from 45.3% to 24.6%. 
    
--  To carry out the repurchase of 20,351,307 of its common shares for an
    aggregate purchase price of $1.0 billion, Quebecor Media was able to
    take advantage of favourable conditions on the debt markets. The
    following financial operations were carried out by Quebecor Media as
    part of this major transaction: 
    
    --  Issuance, on October 11, 2012, of US$850.0 million aggregate
        principal amount of Senior Notes bearing interest at 5.75% and
        maturing in 2023, and $500.0 million aggregate principal amount of
        Senior Notes bearing interest at 6.625% and maturing in 2023, the
        latter being one of the largest single-tranche high-yield offerings
        ever completed in Canada; 
        
    --  Quebecor Media increased the size of the offering as a result of
        oversubscription and favourable financing terms, which provided an
        opportunity to extend the maturities of its credit instruments by
        redeeming, in November 2012, US$320.0 million in aggregate principal
        amount of its 7.75% Senior Notes issued in 2007 and maturing in
        2016. 
        
--  In March 2012, Videotron issued US$800.0 million aggregate principal
    amount of 5.0% Senior Notes maturing in 2022. 
    
--  In March 2012, Videotron redeemed all of its 6.875% Senior Notes
    maturing in January 2014 in the aggregate principal amount of US$395.0
    million. 
    
--  In March and April 2012, Quebecor Media redeemed US$260.0 million
    principal amount of its 7.75% Senior Notes maturing in March 2016 and
    settled the related hedging contracts. 
    
--  Quebecor Media and TVA Group amended their bank credit facilities to
    extend the maturity dates to 2016 and 2017 respectively and to increase
    Quebecor Media's revolving credit facility maturing in 2016 by $200.0
    million. 
    
--  The Corporation amended its $150.0 million revolving credit facility to
    extend the maturity from November 2014 to November 2015 and modify
    certain terms and conditions of the facility. 
    
--  Finally, Sun Media Corporation repaid the $37.6 million balance on its
    term loan credit facility and cancelled all its credit facilities. 

 
Dividends 
On March 13, 2013, the Board of Directors of Quebecor declared a
quarterly dividend of $0.05 per share on its Class A Multiple Voting
Shares ("Class A shares") and Class B shares, payable on April 22,
2013 to shareholders of record at the close of business on March 28,
2013. 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. 
Normal course issuer bid 
On August 9, 2012, the Corporation filed a normal course issuer bid
for a maximum of 980,357 Class A shares, representing approximately
5% of the issued and outstanding Class A shares, and for a maximum of
4,351,276 Class B shares, representing approximately 10% of the
public float of the Class B shares as of July 31, 2012. Purchases can
be made from August 13, 2012 to August 12, 2013 at prevailing market
prices, on the open market, through the facilities of the Toronto
Stock Exchange. All shares purchased under the bid have been or will
be cancelled.  
In 2012, the Corporation purchased and cancelled 1,058,800 Class B
shares for a total cash consideration of $38.3 million (928,100 Class
B shares for a total cash consideration of $30.2 million in 2011).
The excess of $30.3 million of the purchase price over the carrying
value of Class B shares repurchased was recorded in reduction of
retained earnings in 2012 ($23.1 million in 2011). 
Detailed financial information 
For a detailed analysis of Quebecor's fourth quarter and full-year
2012 results, please refer to the Management Discussion and Analysis
and consolidated financial statements of Quebecor, available on the
Corporation's website at:
www.quebecor.com/en/quarterly_doc_quebecor_inc or from the SEDAR
filing service at www.sedar.com.  
Conference call for investors and webcast  
Quebecor will hold a conference call to discuss Quebecor's fourth
quarter and full-year 2012 results on March 14, 2013, at 11:00 a.m.
EDT. There will be a question period reserved for financial analysts.
To access the conference call, please dial 1 877 293-8052, access
code for participants 58308#. A tape recording of the call will be
available from March 14 to June 14, 2013 by dialling 1 8
77 293-8133,
conference number 656419#, access code for participants 58308#. The
conference call will also be broadcast live on Quebecor's website at
www.quebecor.com/en/content/conference-call. It is advisable to
ensure the appropriate software is installed before accessing the
call. Instructions and links to free player downloads are available
at the Internet address shown above.  
Cautionary Statement Regarding 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 the
Corporation'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 risk (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 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,
2012. 
The forward-looking statements in this press release reflect
Quebecor's expectations as of March 14, 2013, 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
75.4% 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 telephony and mobile
telephony. 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 segment, Quebecor Media Inc. operates,
through TVA Group Inc., the number one French-language conventional
television network in Quebec, a number of specialty channels and,
through Sun Media Corporation, the English-language SUN News 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 (Publications TVA Inc.), book
publishing and distribution (Sogides Group Inc., CEC Publishing
Inc.), the production, distribution and retailing of cultural
products (Archambault Group Inc., TVA Films), video game development
(BlooBuzz Studios, L.P.), DVD, Blu-ray disc and videogame rental and
retailing (Le SuperClub Videotron ltee), the printing and
distribution of community newspapers and flyers (Quebecor Media
Printing Inc., Quebecor Media Network Inc.), outdoor advertising
(Quebecor Media Out of Home), news content production and
distribution (QMI Agency), and multiplatform advertising solutions
(QMI Sales). 
DEFINITIONS  
Operating income  
In its analysis of operating results, the Corporation 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, impairment of assets and other special
items, charge for impairment of goodwill and of intangible assets,
loss on debt refinancing, 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. The Corporation uses operating income in order to assess the
performance of its investment in Quebecor Media. The Corporation's
management and Board of Directors use this measure in evaluating its
consolidated results as well as the results of the Corporation's
operating segments. This measure eliminates the significant level of
impairment and amortization of tangible and intangible assets and is
unaffected by the capital structure or investment activities of the
Corporation and its segments. Operating income is also relevant
because it is a significant component of the Corporation'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 the
Corporation's segments. The Corporation also uses other measures that
do reflect such costs, such as cash flows from segment operations and
free cash flows from continuing operating activities. 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 the Corporation is engaged. The Corporation'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 with net
income as disclosed in Quebecor's consolidated financial statements.
The consolidated financial information for the three-month periods
ended December 31, 2012 and 2011 presented in Table 2 is drawn from
the unaudited consolidated statements of income. 


 
Table 2                                                                     
Reconciliation of the operating income measure used in this press release to
the net income measure used in the consolidated financial statements        
(in millions of Canadian dollars)                                           
                                                                            
                                            Year ended   Three months ended 
                                            December 31         December 31 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                             2012       2011       2010      2012      2011 
----------------------------------------------------------------------------
                                                                            
Operating (loss)                                                            
 income:                                                                    
  Telecommunications    $ 1,225.0  $ 1,098.8  $ 1,047.3  $  310.4  $  294.7 
  News Media                115.1      150.1      191.4      38.6      47.0 
  Broadcasting               38.1       50.5       74.9      17.2      20.6 
  Leisure and                                                               
   Entertainment             13.1       26.6       27.6       5.0       7.6 
  Interactive                                                               
   Technologies and                                                         
   Communications             9.8        7.9        6.0       3.4       2.5 
  Head Office                 2.5        7.8      (13.8)     (3.8)     (3.2)
----------------------------------------------------------------------------
                          1,403.6    1,341.7    1,333.4     370.8     369.2 
Amortization               (600.3)    (512.2)    (399.2)   (167.4)   (138.2)
Financial expenses         (334.6)    (322.9)    (322.6)    (95.4)    (77.7)
Gain (loss) on                                                              
 valuation and                                                              
 translation of                                                             
 financial instruments      197.5       54.6       46.1     (44.0)     82.5 
Restructuring of                                                            
 operations, impairment                                                     
 of assets and other                                                        
 special items              (29.4)     (30.2)     (37.1)     (0.6)    (11.2)
Impairment of goodwill                                                      
 and intangible assets     (201.5)         -          -         -         - 
Loss on debt                                                                
 refinancing                (67.7)      (6.6)     (12.3)    (60.4)        - 
Income taxes               (100.1)    (141.4)    (151.7)      6.3     (60.2)
----------------------------------------------------------------------------
Net income              $   267.5  $   383.0  $   456.6  $    9.3  $  164.4 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
Adjusted Income from Continuing Operating Activities 
The Corporation defines adjusted income from continuing operations,
as reconciled to net income attributable to shareholders under IFRS,
as net income attributable to shareholders before gain (loss) on
valuation and translation of financial instruments, charge for
restructuring of operations, impairment of assets and other special
items, charge for impairment of goodwill and of intangible assets,
and loss on debt refinancing, net of income tax related to
adjustments and net income attributable to non-controlling interests
related to adjustments. Adjusted income from continuing operations,
as defined above, is not a measure of results that is consistent with
IFRS. It should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. The
Corporation's definition of adjusted income from continuing operating
activities may not be identical to similarly titled measures reported
by other companies. 
Table 3 provides a reconciliation of adjusted income from continuing
operations to the net income attributable to shareholders measure
used in Quebecor's consolidated financial statements.  


 
Table 3                                                                     
Reconciliation of the adjusted income from continuing operations measure    
used in this press release to the net income attributable to shareholders   
measure used in the consolidated financial statements                       
(in millions of Canadian dollars)                                           
                                                                            
                                            Year ended   Three months ended 
                                            December 31         December 31 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                               2012      2011      2010      2012      2011 
----------------------------------------------------------------------------
                                                                            
Adjusted income from                                                        
 continuing operations     $  196.1  $  191.5  $  220.6  $   56.0  $   55.6 
Gain (loss) on valuation                                                    
 and translation of                                                         
 financial instruments        197.5      54.6      46.1     (44.0)     82.5 
Restructuring of                                                            
 operations, impairment of                                                  
 assets and other special                                                   
 items                        (29.4)    (30.2)    (37.1)     (0.6)    (11.2)
Impairment of goodwill and                                                  
 intangible assets           (201.5)        -         -         -         - 
Loss on debt refinancing      (67.7)     (6.6)    (12.3)    (60.4)        - 
Income taxes related to                                                     
 adjustments(1)                24.3      (3.8)      7.9      31.1     (17.5)
Net income (loss)                                                           
 attributable to non-                                                       
 controlling interests                                                      
 related to adjustments        48.4      (4.5)      0.1      27.1     (24.0)
----------------------------------------------------------------------------
Net income attributable to                                                  
 shareholders              $  167.7  $  201.0  $  225.3  $    9.2  $   85.4 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(1)  Includes impact of fluctuations in income tax applicable to adjusted   
     items, either for statutory reasons or in connection with tax          
     transactions.                                                          

 
Average Monthly Revenue per User  
ARPU is an industry metric that the Corporation uses to measure its
monthly cable television, Internet access, cable and mobile telephony
revenues per average basic cable customer. ARPU is not a measurement
that is consistent with IFRS and the Corporatio
n's definition and
calculation of ARPU may not be the same as identically titled
measurements reported by other companies. The Corporation calculates
ARPU by dividing its combined cable television, Internet access, and
cable 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. 


 
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
CONSOLIDATED STATEMENTS OF INCOME                                           
                                                                            
(in millions of Canadian                                                    
 dollars, except for earnings                                               
 per share data)                 Three months ended     Twelve months ended 
(unaudited)                             December 31             December 31 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                   2012        2011        2012        2011 
----------------------------------------------------------------------------
                                                                            
                                                                            
Revenues                    $   1,142.3 $   1,147.9 $   4,351.8 $   4,206.6 
                                                                            
Employee costs                    267.6       273.7     1,060.6     1,005.6 
Purchase of goods and                                                       
 services                         503.9       505.0     1,887.6     1,859.3 
Amortization                      167.4       138.2       600.3       512.2 
Financial expenses                 95.4        77.7       334.6       322.9 
Loss (gain) on valuation and                              
                  
 translation of financial                                                   
 instruments                       44.0       (82.5)     (197.5)      (54.6)
Restructuring of operations,                                                
 impairment of assets and                                                   
 other special items                0.6        11.2        29.4        30.2 
Impairment of goodwill and                                                  
 intangible assets                    -           -       201.5           - 
Loss on debt refinancing           60.4           -        67.7         6.6 
                            ------------------------------------------------
Income before income taxes          3.0       224.6       367.6       524.4 
                                                                            
Income taxes:                                                               
  Current                          20.8       (12.8)       57.0       (17.7)
  Deferred                        (27.1)       73.0        43.1       159.1 
                            ------------------------------------------------
                                   (6.3)       60.2       100.1       141.4 
                            ------------------------------------------------
Net income                  $       9.3 $     164.4 $     267.5 $     383.0 
                            ------------------------------------------------
                            ------------------------------------------------
                                                                            
Net income attributable to                                                  
  Shareholders              $       9.2 $      85.4 $     167.7 $     201.0 
  Non-controlling interests         0.1        79.0        99.8       182.0 
                            ------------------------------------------------
                            ------------------------------------------------
                                                                            
Earnings per share                                                          
 attributable to                                                            
 shareholders                                                               
  Basic                     $      0.15 $      1.34 $      2.65 $      3.14 
  Diluted                          0.15        1.34        2.56        3.11 
                            ------------------------------------------------
                            ------------------------------------------------
Weighted average number of                                                  
 shares outstanding (in                                                     
 millions)                         62.7        63.5        63.2        64.0 
Weighted average number of                                                  
 diluted shares (in                                                         
 millions)                         74.3        63.8        66.1        64.4 
                            ------------------------------------------------
                            ------------------------------------------------
                                                                            
                                                                            
                                                                            
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME                             
                                                                            
(in millions of Canadian                                                    
 dollars)                        Three months ended     Twelve months ended 
(unaudited)                             December 31             December 31 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                   2012        2011        2012        2011 
----------------------------------------------------------------------------
                                                                            
                                                                            
Net income                  $       9.3 $     164.4 $     267.5 $     383.0 
                                                                            
Other comprehensive loss:                                                   
  Gain (loss) on translation                                                
   of net investments in                                                    
   foreign operations               2.3           -        (1.4)        1.6 
  Cash flow hedges:                                                         
    Gain (loss) on valuation                                                
     of derivative financial                                                
     instruments                    1.9       (22.9)       33.1        (9.5)
    Deferred income taxes           1.5         5.1         2.9        (2.0)
  Defined benefit plans:                                                    
    Acturial loss and net                                                   
     change in asset limit                                                  
     and in minimum funding                                                 
     liability                    (36.8)      (89.7)      (36.8)      (90.0)
                                                                            
    Deferred income taxes           9.8        23.6         9.8        23.7 
  Reclassification to                                                       
   income:                                                                  
    Other comprehensive                                                     
     (gain) loss related to             
                                    
     cash flow hedges             (12.0)          -       (15.3)        0.8 
    Deferred income taxes           1.7           -         0.5        (0.2)
                            ------------------------------------------------
                                  (31.6)      (83.9)       (7.2)      (75.6)
                            ------------------------------------------------
                            ------------------------------------------------
Comprehensive (loss) income $     (22.3)$      80.5 $     260.3 $     307.4 
                            ------------------------------------------------
                            ------------------------------------------------
Conprehensive (loss) income                                                 
 attributable to                                                            
  Shareholders              $     (12.0)$      44.1 $     159.9 $     164.4 
  Non-controlling interests       (10.3)       36.4       100.4       143.0 
                            ------------------------------------------------
                            ------------------------------------------------
                                                                            
                                                                            
                                                                            
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
SEGMENTED INFORMATION                                                       
                                                                            
(in millions of Canadian dollars)                                           
(unaudited)                                                                 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                            
                
                                                          Three months ended
                                                           December 31, 2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                     Leisure
                                                                         and
                              Telecommu-        News      Broad-      Enter-
                               nications       Media     casting    tainment
                          --------------------------------------------------
                                                                            
Revenues                   $       678.3 $     244.5 $     128.9 $      89.5
                                                                            
Employee costs                      96.6        79.1        38.0        14.6
Purchase of goods and                                                       
 services                          271.3       126.8        73.7        69.9
----------------------------------------------------------------------------
Operating income(1)                310.4        38.6        17.2         5.0
                                                                            
Amortization                                                                
Financial expenses                                                          
Loss on valuation and                                                       
 translation of financial                                                   
 instruments                                                                
Restructuring of                                                            
 operations, impairment of                                                  
 assets and other special                                                   
 items                                                                      
Loss on debt refinancing                                                    
----------------------------------------------------------------------------
Income before income taxes                                                  
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Additions to property,                                                      
 plant and equipment      $        150.1 $       1.0 $       4.2 $       2.7
                                                                            
Additions to intangible                                                     
 assets                             32.7         2.7         1.1         0.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
 
                                                                   
                                                                   
                                                                   
QUEBECOR INC. AND ITS SUBSIDIARIES                                 
SEGMENTED INFORMATION                                              
                                                                   
(in millions of Canadian dollars)                                  
(unaudited)                                                        
-------------------------------------------------------------------
-------------------------------------------------------------------
                                                                   
                                                 Three months ended
                                                  December 31, 2012
-------------------------------------------------------------------
-------------------------------------------------------------------
                             Interactive                           
                                 Techno-          Head             
                              logies and        office             
                                Communi-    and Inter-             
                                 cations      segments        Total
                          -----------------------------------------
                                                                   
Revenues                   $        35.8 $       (34.7) $   1,142.3
                                                                   
Employee costs                      20.5          18.8        267.6
Purchase of goods and                                              
 services                           11.9         (49.7)       503.9
-------------------------------------------------------------------
Operating income(1)                  3.4          (3.8)       370.8
                                                                   
Amortization                                                  167.4
Financial expenses                                             95.4
Loss on valuation and                                              
 translation of financial                                          
 instruments                                                   44.0
Restructuring of                                                   
 operations, impairment of                                         
 assets and other special                                          
 items                                                          0.6
L
oss on debt refinancing                                       60.4
-------------------------------------------------------------------
Income before income taxes                              $       3.0
-------------------------------------------------------------------
-------------------------------------------------------------------
                                                                   
                                                                   
Additions to property,                                             
 plant and equipment       $         1.2 $        (0.2) $     159.0
                                                                   
Additions to intangible                                            
 assets                                -          (0.8)        36.0
-------------------------------------------------------------------
-------------------------------------------------------------------
                                                                   
 

 
                                                                            
                                                          Three months ended
                                                           December 31, 2011
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                     Leisure
                                                                         and
                              Telecommu-        News      Broad-      Enter-
                               nications       Media     casting    tainment
----------------------------------------------------------------------------
                                                                            
Revenues                   $       634.8 $     275.6 $     131
.6 $     106.2
                                                                            
Employee costs                      87.1        93.9        39.1        15.9
Purchase of goods and                                                       
 services                          253.0       134.7        71.9        82.7
----------------------------------------------------------------------------
Operating income(1)                294.7        47.0        20.6         7.6
                                                                            
Amortization                                                                
Financial expenses                                                          
Gain on valuation and                                                       
 translation of financial                                                   
 instruments                                                                
Restructuring of                                                            
 operations, impairment of                                                  
 assets and other special                                                   
 items                                                                      
----------------------------------------------------------------------------
Income before income taxes                                                  
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Additions to property,                                                      
 plant and equipment       $       193.5 $       2.4 $       8.0 $       2.3
                                                                            
Additions to intangible                                                     
 assets                             23.8         2.7         2.4         0.2
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
 
                                                                     
                                                  Three months ended 
                                                   December 31, 2011 
---------------------------------------------------------------------
---------------------------------------------------------------------
                             Interactive                             
                                 Techno-           Head              
                              logies and         office              
                                Communi-     and Inter-              
                                 cations       segments        Total 
---------------------------------------------------------------------
                                                                     
Revenues                   $        36.0 $        (36.3) $   1,147.9 
                                                                     
Employee costs                      23.4           14.3        273.7 
Purchase of goods and                                                
 services                           10.1          (47.4)       505.0 
---------------------------------------------------------------------
Operating income(1)                  2.5           (3.2)       369.2 
                                                                     
Amortization                                                   138.2 
Financial expenses                                              77.7 
Gain on valuation and                                                
 translation of financial                                            
 instruments                                                   (82.5)
Restructuring of                                                     
 operations, impairment of                                           
 assets and other special                                            
 items                                                          11.2 
---------------------------------------------------------------------
Income before income taxes                               $     224.6 
---------------------------------------------------------------------
---------------------------------------------------------------------
                                                                     
                                                                     
Additions to property,                                               
 plant and equipment       $         0.6 $          0.1  $     206.9 
                                                                     
Additions to intangible                                              
 assets                                -              -         29.1 
---------------------------------------------------------------------
---------------------------------------------------------------------
                                                                     
 

 
                                                                            
----------------------------------------------------------------------------
                                                                            
                                                         Twelve months ended
                                                           December 31, 2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                     Leisure
                                                                         and
                              Telecommu-        News      Broad-      Enter-
                               nications       Media     casting    tainment
----------------------------------------------------------------------------
                                                                            
Revenues                   $     2,635.1 $     960.0 $     461.1 $     292.5
                                                                            
Employee costs                     365.1       345.3       152.3        55.3
Purchase of goods and                                                       
 services                        1,045.0       499.6       270.7       224.1
----------------------------------------------------------------------------
Operating income(1)              1,225.0       115.1        38.1        13.1
                                                                            
Amortization                                                                
Financial expenses                                                          
Gain on valuation and                                                       
 translation of financial                                                   
 instruments                                                                
Restructuring of                                                            
 operations, impairment of                                                  
 assets and other special                                                   
 items                                                                      
Impairment of goodwill and                                                  
 intangible assets                                                          
Loss on debt refinancing                                      
              
----------------------------------------------------------------------------
Income before income taxes                                                  
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Additions to property,                                                      
 plant and equipment       $       669.6 $       6.5 $      22.1 $       6.3
                                                                            
Additions to intangible                                                     
 assets                             78.3        11.9         3.3         3.6
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
 
                                                                     
---------------------------------------------------------------------
                                                                     
                                                 Twelve months ended 
                                                   December 31, 2012 
---------------------------------------------------------------------
---------------------------------------------------------------------
                             Interactive                             
                                 Techno-           Head              
                              logies and         office              
                                Communi-     and Inter-              
                                 cations       segments        Total 
---------------------------------------------------------------------
                                                                     
Revenues                   $       145.5 $       (142.4) $   4,351.8 
                                                                     
Employee costs                      89.3           53.3      1,060.6 
Purchase of goods and                                                
 services                           46.4         (198.2)     1,887.6 
---------------------------------------------------------------------
Operating income(1)                  9.8            2.5      1,403.6 
                                                                     
Amortization                                                   600.3 
Financial expenses                                             334.6 
Gain on valuation and                                                
 translation of financial                                            
 instruments                                                  (197.5)
Restructuring of                                                     
 operations, impairment of                                           
 assets and other special                                            
 items                                                          29.4 
Impairment of goodwill and                                           
 intangible assets                                             201.5 
Loss on debt refinancing                                        67.7 
---------------------------------------------------------------------
Income before income taxes                               $     367.6 
---------------------------------------------------------------------
---------------------------------------------------------------------
                                                                     
                                                                     
Additions to property,                                               
 plant and equipment       $         4.2 $          1.9  $     710.6 
                                                                     
Additions to intangible                                              
 assets                                -           (2.2)        94.9 
---------------------------------------------------------------------
---------------------------------------------------------------------
 

 
                                                                            
                                                                            
                                                         Twelve months ended
                                                           December 31, 2011
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                     Leisure
                                                                         and
                              Telecommu-        News      Broad-      Enter-
                               nications       Media     casting    tainment
----------------------------------------------------------------------------
                                                                            
Revenues                   $     2,430.7 $   1,018.4 $     445.5 $     312.9
                                                                            
Employee costs                     326.7       363.6       142.7        54.0
Purchase of goods and                                                       
 services                        1,005.2       504.7       252.3       232.3
----------------------------------------------------------------------------
Operating income(1)              1,098.8       150.1        50.5        26.6
                                                                            
Amortization                                                                
Financial expenses                                                          
Gain on valuation and                                                       
 translation of financial                                                   
 instruments                                                                
Restructuring of                                                            
 operations, impairment of                                                  
 assets and other special                                                   
 items                                                                      
Loss on debt refinancing                                                    
----------------------------------------------------------------------------
Income before income taxes                                                  
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Additions to property,                                                      
 plant and equipment      $        725.3 $      13.7 $      30.5 $       6.3
                                                                            
Additions to intangible                                                     
 assets                             73.2        10.8         5.8         1.8
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
 
                                                                    
                                                                    
                                                Twelve months ended 
       
                                           December 31, 2011 
--------------------------------------------------------------------
--------------------------------------------------------------------
                            Interactive                             
                                Techno-           Head              
                             logies and         office              
                               Communi-     and Inter-              
                                cations       segments        Total 
--------------------------------------------------------------------
                                                                    
Revenues                   $      120.9 $       (121.8) $   4,206.6 
                                                                    
Employee costs                     78.7           39.9      1,005.6 
Purchase of goods and                                               
 services                          34.3         (169.5)     1,859.3 
--------------------------------------------------------------------
Operating income(1)                 7.9            7.8      1,341.7 
                                                                    
Amortization                                                  512.2 
Financial expenses                                            322.9 
Gain on valuation and                                               
 translation of financial                                           
 instruments                                                  (54.6)
Restructuring of                                                    
 operations, impairment of                                          
 assets and other special                                           
 items                                                         30.2 
Loss on debt refinancing                                        6.6 
--------------------------------------------------------------------
Income before income taxes                              $     524.4 
--------------------------------------------------------------------
--------------------------------------------------------------------
                                                                    
                                                                    
Additions to property,                                              
 plant and equipment       $        4.3 $          0.9  $     781.0 
                                                                    
Additions to intangible                                             
 assets                               -              -         91.6 
--------------------------------------------------------------------
--------------------------------------------------------------------

 
(1)The Chief Executive Officer uses operating income as the measure
of profit to assess the performance of each segment. Operating income
is referred as a non-IFRS measure and is defined as net income before
amortization, financial expenses, gain on valuation and translation
of financial instruments, restructuring of operations, impairment of
assets and other special items, impairment of goodwill and intangible
assets, loss on debt refinancing and income taxes. 
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EQUITY 
(in millions of Canadian dollars) (unaudited) 


 
                                                                            
                                        Equity attributable to shareholders 
              --------------------------------------------------------------
                                           Equity                           
                                        component               Accumulated 
                                               of                other com- 
               Capital  Contributed   convertible    Retained    prehensive 
                 stock      surplus    debentures    earnings        income 
----------------------------------------------------------------------------
                                                                            
Balance as of                                                               
 December 31,                                                               
 2010         $  346.6 $        0.9  $          - $     943.6  $       13.7 
Net income           -            -             -       201.0             - 
Other                                                                       
 comprehensive                                                              
 loss                -            -             -       (31.5)         (5.1)
Issuance of                                                                 
 shares of a                                                                
 subsidiary          -            -             -           -             - 
Repurchase of                                                               
 Class B                                                                    
 shares           (7.1)           -             -       (23.1)            - 
Dividends            -            -             -       (12.8)            - 
----------------------------------------------------------------------------
Balance as of                                                               
 December 31,                                                               
 2011            339.5          0.9             -     1,077.2           8.6 
Net income           -            -             -       167.7             - 
Other                                                                       
 comprehensive                                                              
 (loss) income       -            -             -       (17.8)         10.0 
Issuance of                                                                 
 Class B                                                                    
 shares           
 3.6          1.5             -           -             - 
Repurchase of                                                               
 Class B                                                                    
 shares           (8.0)           -             -       (30.3)            - 
Acquisition of                                                              
 non-                                                                       
 controlling                                                                
 interests           -         (0.1)            -      (635.0)          8.3 
Issuance of                                                                 
 convertible                                                                
 debentures          -            -         398.3           -             - 
Dividends            -            -             -       (12.6)            - 
----------------------------------------------------------------------------
Balance as of                                                               
 December 31,                                                               
 2012         $  335.1 $        2.3  $      398.3 $     549.2  $       26.9 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
                                             
                                             
              -------------------------------
                         Equity              
                   attributable              
                        to non-              
                    controlling        Total 
                      interests       equity 
---------------------------------------------
                                             
Balance as of                                
 December 31,                                
 2010          $        1,346.9  $   2,651.7 
Net income                182.0        383.0 
Ot
her                                        
 comprehensive                               
 loss                     (39.0)       (75.6)
Issuance of                                  
 shares of a                                 
 subsidiary                 1.0          1.0 
Repurchase of                                
 Class B                                     
 shares                       -        (30.2)
Dividends                 (46.5)       (59.3)
---------------------------------------------
Balance as of                                
 December 31,                                
 2011                   1,444.4      2,870.6 
Net income                 99.8        267.5 
Other                                        
 comprehensive                               
 (loss) income              0.6         (7.2)
Issuance of                                  
 Class B                                     
 shares                       -          5.1 
Repurchase of                                
 Class B                                     
 shares                       -        (38.3)
Acquisition of                               
 non-                                        
 controlling                                 
 interests               (873.2)    (1,500.0)
Issuance of                                  
 convertible                                 
 debentures                   -        398.3 
Dividends                 (40.6)       (53.2)
---------------------------------------------
Balance as of                                
 December 31,                                
 2012          $          631.0  $   1,942.8 
---------------------------------------------
---------------------------------------------
 

 
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
CONSOLIDATED STATEMENTS OF CASH FLOWS                                       
(in millions of Canadian                                                    
 dollars)     
                 Three months ended       Twelve months ended 
(unaudited)                           December 31               December 31 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                2012         2011         2012         2011 
----------------------------------------------------------------------------
                                                                            
Cash flows related to                                                       
 operating activities                                                       
  Net income             $       9.3  $     164.4  $     267.5  $     383.0 
  Adjustments for:                                                          
    Amortization of                                                         
     property, plant and                                                    
     equipment                 128.5        105.9        459.7        391.3 
    Amortization of                                                         
     intangible assets          38.9         32.3        140.6        120.9 
    Loss (gain) on                                                          
     valuation and                                                          
     translation of                                                         
     financial                                                              
     instruments                44.0        (82.5)      (197.5)       (54.6)
    Gain on disposal of                                                     
     assets and                                                             
     businesses                    -            -        (12.9)           - 
    Impairment of assets           -            -          7.5          1.5 
    Impairment of                                                           
     goodwill and                                                           
     intangible assets             -            -        201.5            - 
    Loss on debt                                                            
     refinancing                60.4            -         67.7          6.6 
    Amortization of                                                         
     financing costs and                                                    
     long-term debt                                                         
     discount                    3.6          3.6         14.5         12.8 
    Deferred income taxes      (27.1)        73.0         43.1        159.1 
    Other                        4.5         (3.0)         5.6         (2.1)
                         ---------------------------------------------------
                               262.1        293.7        997.3      1,018.5 
  Net change in non-cash                                                    
   balances related to                                                      
   operating activities         16.5       (117.6)       125.3       (152.2)
                         ---------------------------------------------------
Cash flows provided by                                                      
 operating activities          278.6        176.1      1,122.6        866.3 
                         ---------------------------------------------------
Cash flows related to                                                       
 investing activities                                                       
  Non-controlling                                                           
   interests acquisition    (1,000.0)           -     (1,000.0)           - 
  Business acquisitions         (1.2)           -         (2.0)       (55.7)
  Business disposals               -            -         18.7            - 
  Additions to property,                                                    
   plant and equipment        (159.0)      (206.9)    
  (710.6)      (781.0)
  Additions to intangible                                                   
   assets                      (36.0)       (29.1)       (94.9)       (91.6)
  Proceeds from disposals                                                   
   of assets                     2.3          4.5          8.4         12.0 
  Other                         (0.9)           -         (1.5)         3.2 
                         ---------------------------------------------------
Cash flows used in                                                          
 investing activities       (1,194.8)      (231.5)    (1,781.9)      (913.1)
                         ---------------------------------------------------
Cash flows related to                                                       
 financing activities                                                       
  Net change in bank                                                        
   indebtedness                 (0.2)        (0.5)        (2.9)        (1.5)
  Net change under                                                          
   revolving facilities        (11.2)         6.7        (23.6)         2.7 
  Issuance of long-term                                                     
   debt, net of financing                                                   
   fees                      1,314.2         71.0      2,136.7        685.8 
  Repayments of long-term                                                   
   debt                       (487.5)        (6.8)    (1,236.8)      (487.9)
  Settlement of hedging                                                     
   contracts                    (3.1)           -        (43.6)      (160.2)
  Issuance of Class B                                                       
   shares                          -            -          3.6            - 
  Repurchase of Class B                                                     
   shares                      (12.5)        (6.2)       (38.3)       (30.
2)
  Dividends                     (3.1)        (3.2)       (12.6)       (12.8)
  Dividends paid to non-                                                    
   controlling                                                              
   shareholders                 (6.5)       (11.3)       (40.6)       (46.5)
  Other                         (0.3)        (0.1)        (0.3)         1.0 
                         ---------------------------------------------------
Cash flows provided by                                                      
 (used in) financing                                                        
 activities                    789.8         49.6        741.6        (49.6)
                         ---------------------------------------------------
Net change in cash and                                                      
 cash equivalents             (126.4)        (5.8)        82.3        (96.4)
                                                                            
Effect of exchange rate                                                     
 changes on cash and cash                                                   
 equivalents denominated                                                    
 in foreign currencies           0.5         (0.2)           -          0.1 
Cash and cash equivalents                                                   
 at beginning of period        354.6        152.4        146.4        242.7 
                         ---------------------------------------------------
Cash and cash equivalents                                                   
 at end of period        $     228.7  $     146.4  $     228.7  $     146.4 
                         ---------------------------------------------------
                         ---------------------------------------------------
                                                                            
Cash and cash equivalents                                                   
 consist of                                                                 
  Cash                   $      76.0  $      29.9  $      76.0  $      29.9 
  Cash equivalents             152.7        116.5        152.7        116.5 
                         ---------------------------------------------------
                         $     228.7  $     146.4  $     228.7  $     146.4 
                         ---------------------------------------------------
                         ---------------------------------------------------
                                                                            
Interest and taxes                                                          
 reflected as operating                                                     
 activities                                                                 
  Cash interest payments $     137.3  $     134.4  $     305.6  $     320.5 
  Cash income tax                                                           
   payments (net of                                                         
   refunds)                      0.6          0.4          6.6         30.7 
                         ---------------------------------------------------
                         ---------------------------------------------------
                                                                            
                                                                            
                                                                            
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
CONSOLIDATED BALANCE SHEETS                                                 
                                                                            
(in millions of Canadian dollars)                                           
(unaudited)                                          December 31 December 31
----------------------------------------------------------------------------
                                                            2012        2011
----------------------------------------------------------------------------
                                                                            
Assets                                                                      
                                                                            
Current assets                                                              
  Cash and cash equivalents                        $       228.7 $     146.4
  Accounts receivable                                      578.7       603.7
  Income taxes                                              10.6        29.0
  Inventories                                              255.5       283.6
  Prepaid expenses                                          38.0        31.3
                                                   -------------------------
                                                         1,111.5     1,094.0
Non-current assets                                                          
  Property, plant and equipment                          3,405.8     3,211.1
  Intangible assets                                        956.7     1,041.0
  Goodwill                                               3,371.6     3,543.8
  Derivative financial instruments                          35.7        34.9
  Deferred income taxes                                     23.9        20.6
  Other assets                                             102.6        93.4
                                                   -------------------------
                                                         7,896.3     7,944.8
                                                   -------------------------
Total assets                                       $     9,007.8 $   9,038.8
                                                   -------------------------
                                                   -------------------------
Liabilities and equity                                                      
                                                                            
Current liabilities                                                         
  Bank indebtedness                                $         1.3 $       4.2
  Accounts payable and accrued charges                     804.5       776.5
  Provisions                                                45.9        33.7
  Deferred revenue                                         289.0       295.7
  Income taxes                                              33.9         2.7
  Derivative financial instruments                          28.5           -
  Current portion of long-term debt                         22.2       114.5
                                                   -------------------------
                                                         1,225.3     1,227.3
Non-current liabilities                                                     
  Long-term debt                                         4,507.8     3,688.3
  Derivative financial instruments                         270.1       315.4
  Other liabilities                                        467.1       344.7
  Deferred income taxes                                    594.7       592.5
                                                   -------------------------
                                                         5,839.7     4,940.9
Equity                                                                      
  Capital stock                                            335.1       339.5
  Contributed surplus                                        2.3         0.9
  Equity component of convertible debentures               398.3           -
  Retained earnings                                        549.2     1,077.2
  Accumulated other comprehensive income                    26.9         8.6
                                                   -------------------------
  Equity attributable to shareholders                    1,311.8     1,426.2
 
  Non-controlling interests                                631.0     1,444.4
                                                   -------------------------
                                                         1,942.8     2,870.6
                                                   -------------------------
Total liabilities and equity                       $     9,007.8 $   9,038.8
                                                   -------------------------
                                                   -------------------------

 
7
Contacts:
Jean-Francois Pruneau
Chief Financial Officer
Quebecor Inc. and Quebecor Media Inc.
jean-francois.pruneau@quebecor.com
514 380-4144 
Martin Tremblay
Vice President, Public Affairs
Quebecor Media Inc.
martin.tremblay@quebecor.com
514 380-1985