Quebecor Inc. Reports Consolidated Results for Third Quarter 2013

Quebecor Inc. Reports Consolidated Results for Third Quarter 2013 
MONTREAL, QUEBEC -- (Marketwired) -- 11/07/13 -- Quebecor Inc.
("Quebecor" or the "Corporation") (TSX:QBR.A)(TSX:QBR.B) today
reported its consolidated financial results for the third quarter of
2013. Quebecor consolidates the financial results of its Quebecor
Media Inc. ("Quebecor Media") subsidiary, in which it holds a 75.4%
interest.  
Third quarter 2013 highlights 


 
--  Revenues up $20.4 million (1.9%) from the third quarter of 2012 to $1.08
    billion. 
    
--  Operating income(1) up $31.0 million (8.9%) to $380.3 million. 
    
--  Net loss attributable to shareholders: $167.8 million ($1.36 per basic
    share) in the third quarter of 2013, compared with net income
    attributable to shareholders in the amount of $17.1 million ($0.14 per
    basic share) in the same 
period of 2012, an unfavourable variance of
    $184.9 million ($1.50 per basic share), including the $177.0 million
    ($1.45 per basic share) unfavourable non-cash impact of fluctuations in
    the value of goodwill, intangible assets and derivative financial
    instruments. 
    
--  Adjusted income from continuing operations:(2) $63.7 million in the
    third quarter of 2013 ($0.51 per basic share) compared with $49.5
    million ($0.39 per basic share) in the same period of 2012, an increase
    of $14.2 million ($0.12 per basic share) or 28.7%. 
    
--  Telecommunications segment's revenues up $33.1 million (5.1%) and
    operating income up $24.9 million (8.2%) in the third quarter of 2013. 
    
--  Videotron Ltd. ("Videotron") recorded third quarter 2013 revenue
    increases for all of its major services: mobile telephony ($13.0 million
    or 28.9%), Internet access ($12.0 million or 6.2%), cable telephony
    ($6.0 million or 5.3%), and cable television ($1.5 million or 0.6%). 
    
--  Videotron's revenue-generating units(3) up 43,500 in the third quarter
    of 2013 (compared with an increase of 101,100 in the same quarter of
    2012) and up 147,000 (3.0%) in the 12-month period ended September 30,
    2013. Videotron passed the 5 million revenue-generating units mark
    during the third quarter of 2013. 
    
--  On October 22, 2013, Videotron qualified on a provisional basis to
    participate in the 700 MHz spectrum auction announced by Industry
    Canada, which is scheduled to commence on January 14, 2014. 
    
--  News Media segment's operating income up 14.7% to $25.8 million;
    Broadcasting segment's operating income more than doubled to $15.2
    million. The increases reflect, among other things, the impact of
    significant cost-containment and repositioning initiatives implemented
    in recent years. 
 
(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, and     
     cable telephony service subscriptions and subscriber connections to the
     mobile telephony service.                                              

 
"The News Media and Broadcasting segments grew their operating income
in the third quarter of 2013," said Robert Depatie, President and
Chief Executive Officer of Quebecor. "Accordingly, the
Telecommunications segment's growth was fully reflected in the
overall improvement in the Corporation's consolidated results. The
stronger results at our media subsidiaries show that the
restructuring and repositioning initiatives we have taken over the
past few years are bearing fruit. Financial transactions that create
value for shareholders, carried out since the beginning of 2012, also
contributed to the 28.7% increase in adjusted income from continuing
operations." 
"In a highly competitive market, Videotron posted strong results
again in the third quarter of 2013, growing its revenues by 5.1% and
its operating income by 8.2%," said Manon Brouillette, President and
Chief Operating Officer of Videotron. "All of Videotron's core
services generated revenue increases, particularly mobile telephony
and Internet access. Average monthly revenue per user ("ARPU")
continued to grow, climbing $6.92 (6.2%) to $119.24. These results
demonstrate once again Videotron's great creativity in developing new
services and delivering the best possible customer experience. During
the quarter, the illico Club Unlimited service launched in early 2013
passed the 50,000-customer mark. illico Club Unlimited offers the
largest selection of unlimited on-demand French-language titles in
Canada.  
"During the third quarter, Videotron announced the expansion of its
multiplatform offering with the addition of Super Channel to its
illico Digital TV service. Super Channel carries blockbuster films,
popular television series and boxing matches. Videotron also
announced plans to launch a new English-language community television
channel, MYtv, to serve as a voice and mirror for the Anglophone
community in the greater Montreal area."  
"The numbers show that the refocusing of our news media operations
generated concrete financial results in the third quarter of 2013,"
commented Julie Tremblay, President and Chief Executive Officer of
Sun Media Corporation. "The News Media segment's operating income
increased by 14.7%, reflecting the impact of the many significant
cost-containment and repositioning measures implemented in recent
years. On the business development front, Le Sac Plus reached an
exclusive agreement to distribute the Target retail chain's weekly
flyer in the Le Sac Plus doorknob bag starting in fall 2013, in
partnership with the Novus agency. Le Sac Plus will distribute nearly
100 million promotional flyers per year for Target through its vast,
Quebec-wide network." 
In the Broadcasting segment, operating income totalled $15.2 million,
an $8.4 million increase from the same period of 2012. The increase
reflects the positive impact of a retroactive adjustment to
retransmission royalties as well as the restructuring and
cost-containment initiatives undertaken in the second quarter of
2013.  
"By leveraging all its strengths, Quebecor is positioning itself to
pursue its growth, business development and profitability targets,"
said Robert Depatie. 


 
Table 1                                                                     
Quebecor third quarter financial highlights, 2009 to 2013                   
(in millions of Canadian dollars, except per share data)                    
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                              2013(1)    2012(1)   2011(1)  2010(1)  2009(2)
----------------------------------------------------------------------------
                                                                            
Revenues                    $ 1,075.1  $ 1,054.7 $ 1,007.9 $  963.2 $  919.9
Operating income                380.3      349.3     315.4    328.6    298.9
(Loss) income from                                                          
 continuing operations                                                      
 attributable to                                                            
 shareholders                  (167.5)      16.0      23.6     81.2     67.0
Net (loss) income               
                                            
 attributable to                                                            
 shareholders                  (167.8)      17.1      25.0     82.5     69.4
Adjusted income from                                                        
 continuing operations           63.7       49.5      37.5     54.3     52.1
Per basic share:(3)                                                         
  (Loss) income from                                                        
   continuing operations                                                    
   attributable to                                                          
   shareholders                 (1.36)      0.13      0.18     0.63     0.52
  Net (loss) income                                                         
   attributable to                                                          
   shareholders                 (1.36)      0.14      0.20     0.64     0.54
  Adjusted income from                                                      
   continuing operations         0.51       0.39      0.29     0.42     0.41
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(1)  Financial figures for 2010 to 2013 are presented in accordance with    
     International Financial Report Standards ("IFRS").                     
(2)  Financial figures for 2009 are presented in accordance with Canadian   
     Generally Accepted Accounting Principles.                              
(3)  The per basic share data have been retroactively adjusted to reflect   
     the two-for-one split of the Corporation's shares on August 14, 2013.  

 
2013/2012 third quarter comparison 
Revenues: $1.08 billion, an increase of $20.4 million (1.9%).  


 
--  Revenues increased in Telecommunications ($33.1 million or 5.1% of
    segment revenues) and Broadcasting ($5.1 million or 5.2%). 
    
--  Revenues were flat in Interactive Technologies and Communications. 
    
--  Revenues decreased in News Media ($19.8 million or -8.7%) and Leisure
    and Entertainment ($2.9 million or -3.7%). 

 
Operating income: $380.3 million, an increase of $31.0 million
(8.9%). 


 
--  Operating income increased in Telecommunications ($24.9 million or 8.2%
    of segment operating income), Broadcasting ($8.4 million), Interactive
    Technologies and Communications ($3.5 million), and News Media ($3.3
    million or 14.7%).  
    
--  Operating income decreased in Leisure and Entertainment ($3.9 million or
    -33.1%) and at Head Office ($5.2 million). The decrease at Head Office
    was due primarily to the unfavourable variance in the fair value of
    stock options. 
    
--  The change in the fair value of Quebecor Media stock options resulted in
    a $3.5 million unfavourable variance in the consolidated stock-based
    compensation charge in the third quarter of 2013 compared with the same
    period of 2012. The change in the fair value of Quebecor stock options
    resulted in a $6.7 million unfavourable variance in the Corporation's
    consolidated stock-based compensation charge in the third quarter of
    2013. 

 
Net loss attributable to shareholders: $167.8 million ($1.36 per
basic share) in the third quarter of 2013, compared with net income
attributable to shareholders in the amount of $17.1 million ($0.14
per basic share) in the same period of 2012, an unfavourable variance
of $184.9 million ($1.50 per basic share).  


 
--  The unfavourable variance was due primarily to: 
    
    --  $132.3 million unfavourable variance in losses and gains on
        valuation and translation of financial instruments; 
        
    --  $118.8 million unfavourable variance in charge for impairment of
        goodwill and intangible assets; 
        
        
    --  $22.8 million increase in amortization charge;
        
        
    --  $10.2 million increase in financial expenses. 
        
        Partially offset by:  
        
        
    --  $31.0 million increase in operating income; 
        
        
    --  $34.0 million favourable variance in the charge for restructuring of
        operations, impairment of assets and other special items.  

 
During the third quarter of 2013, Quebecor Media recorded a total
non-cash charge of $305.8 million in its News Media and Leisure and
Entertainment segments for impairment of goodwill and intangible
assets ($187.0 million in the third quarter of 2012), in accordance
with IFRS accounting valuation principles. The charge reflects weak
market conditions and the impact of the transition to digital in the
newspaper, music and book industries. 
Adjusted income from continuing operations: $63.7 million in the
third quarter of 2013 ($0.51 per basic share) compared with $49.5
million ($0.39 per basic share) in the third quarter of 2012, an
increase of $14.2 million ($0.12 per basic share).  
2013/2012 year-to-date comparison 
Revenues: $3.21 billion, an increase of $19.5 million (0.6%).  


 
--  Revenues increased in Telecommunications ($89.4 million or 4.6% of
    segment revenues) and Broadcasting ($2.7 million or 0.8%). 
    
--  Revenues decreased in News Media ($70.9 million or -9.9%), Leisure and
    Entertainment ($11.9 million or -5.5%) and Interactive Technologies and
    Communications ($4.8 million or -4.4%). 

 
Operating income: $1.07 billion, an increase of $44.5 million (4.4%). 


 
--  Operating income increased in Telecommunications ($63.5 million or 7.1%
    of segment operating income), Broadcasting ($13.1 million or 71.6%) and
    Interactive Technologies and Communications ($3.2 million or 50.0%). 
    
--  Operating income decreased in News Media ($18.4 million or -24.9%),
    Leisure and Entertainment ($7.4 million or -44.8%) and at Head Office
    ($9.5 million). The decrease at Head Office was due primarily to the
    unfavourable variance in the fair value of stock options. 
    
--  The change in the fair value of Quebecor Media stock options resulted in
    a $0.3 million favourable variance in the consolidated stock-based
    compensation charge in the first nine months of 2013 compared with the
    same period of 2012. The chan
ge in the fair value of Quebecor stock
    options resulted in an $11.5 million unfavourable variance in the
    Corporation's consolidated stock-based compensation charge in the first
    nine months of 2013. 

 
Net loss attributable to shareholders: $177.3 million ($1.43 per
basic share) in the first nine months of 2013, compared with net
income attributable to shareholders in the amount of $154.0 million
($1.22 per basic share) in the same period of 2012, an unfavourable
variance of $331.3 million ($2.65 per basic share).  


 
--  The unfavourable variance was due primarily to: 
    
    --  $441.4 million unfavourable variance in losses and gains on
        valuation and translation of financial instruments; 
        
    --  $104.3 million unfavourable variance in charge for impairment of
        goodwill and intangible assets; 
        
    --  $64.2 million increase in amortization charge; 
        
    --  $38.4 million increase in financial expenses; 
        
    --  $21.3 million unfavourable variance in losses and gains on debt
        refinancing. 
        
        Partially offset by: 
        
        
    --  $44.5 million increase in operating income; 
        
    --  $32.8 million favourable variance in income from discontinued
        operations, resulting mainly from the gain on disposal of Jobboom; 
        
    --  $13.9 million favourable variance in the charge for restructuring of
        operations, impairment of assets and other special items.  

 
Adjusted income from continuing operations: $148.2 million in the
first nine months of 2013 ($1.19 per basic share), compared with
$131.8 million ($1.04 per basic share) in the same period of 2012, an
increase of $16.4 million ($0.15 per basic share). 
Financing activities 
The following financial transactions have been concluded since the
end of the second quarter of 2013. 


 
--  On July 2, 2013, Videotron used the proceeds from its June 17, 2013
    placement of Senior Notes in the aggregate principal amount of $400.0
    million, bearing interest at 5.625% and maturing on June 15, 2025, to
    finance the early redemption and withdrawal of US$380.0 million
    aggregate principal amount of its outstanding 9.125% Senior Notes,
    issued on April 15, 2008 and maturing in April 2018. 
    
--  On August 14, 2013, the Corporation carried out a two-for-one split of
    its outstanding Class A Multiple Voting Shares ("Class A Shares") and
    Class B Subordinate Voting Shares ("Class B Shares"). Accordingly,
    shareholders received one additional share for each share owned on the
    record date. Trading on the shares on a split basis commenced at the
    opening of business on August 16, 2013. 
    
--  On August 29, 2013, Quebecor Media issued a US$350 million senior
    secured term loan "B" at a price of 99.50% for net proceeds of $358.4
    million, net of financing fees of $1.9 million. This term loan bears
    interest at the U.S. London Interbank Offered Rate ("LIBOR"), subject to
    a LIBOR floor of 0.75%, plus a premium of 2.50%. It provides for
    quarterly amortization payments totalling 1.00% per annum of the
    original principal amount, with the balance payable on August 17, 2020. 
    
--  On August 30, 2013, Quebecor Media redeemed US$265.0 million in
    aggregate principal amount of its outstanding 7.75% Senior Notes issued
    on January 17, 2006 and due in March 2016, and settled the related
    hedging contracts. 
    
--  In October 2013, the Corporation amended its $150.0 million revolving
    credit facility to extend the maturity date to November 2016 and amend
    certain terms and conditions. 

 
Dividends 
On November 6, 2013, the Board of Directors of Quebecor declared a
quarterly dividend of $0.025 per share on Class A shares and Class B
shares, payable on December 17, 2013 to shareholders of record at the
close of business on November 22, 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 8, 2013, the Corporation filed a normal course issuer bid
for a maximum of 1,956,068 Class A shares, representing approximately
5% of issued and outstanding Class A shares, and for a maximum of
8,429,248 Class B shares, representing approximately 10% of the
public float of Class B shares as of July 31, 2013. The purchases can
be made from August 13, 2013 to August 12, 2014 at prevailing market
prices on the open market through the facilities of the Toronto Stock
Exchange. All shares purchased under the bid will be cancelled. 
In the first nine months of 2013, the Corporation purchased and
cancelled 1,423,700 Class B shares for a total cash consideration of
$31.5 million (1,457,000 Class B shares for a total cash
consideration of $25.8 million in the first nine months of 2012). The
excess of $26.1 million in the purchase price over the carrying value
of Class B shares repurchased was recorded as a reduction in retained
earnings in the first nine months of 2013 ($20.3 million in the first
nine months of 2012).  
Detailed financial information  
For a detailed analysis of Quebecor's third quarter 2013 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/fr/rapports_trimestriels_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 its third quarter
2013 results on November 7, 2013, at 11:00 a.m. EST. 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 95603#. A tape recording of the call will be available
from November 7, 2013 to February 7, 2014 by dialling 1 877 293-8133,
conference number 1054700, access code for participants 95603#. The
conference call will also be webcast live on Quebecor's web site 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.sed
ar.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 November 7, 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, a Canadian telecommunications, entertainment and news media
leader, is one of the best-performing integrated communications
companies in the industry. Driven by their determination to deliver
the best possible customer experience, all of Quebecor's subsidiaries
and brands are differentiated by their high-quality, multiplatform,
convergent products and services.  
Quebecor (TSX:QBR.A)(TSX:QBR.B) is headquartered in Quebec. It holds
a 75.36% interest in Quebecor Media, which employs nearly 16,000
people in Canada.  
A family business founded in 1950, Quebecor is strongly committed to
the community. Every year, it actively supports more than 400
organizations working in the vital fields of culture, health,
education, the environment, and entrepreneurship.  
Visit our Web site: www.quebecor.com  
Follow us on Twitter: twitter.com/QuebecorMedia 
Operating income 
In its analysis of operating results, the Corporation defines
operating income, as reconciled to net (loss) income under IFRS, as
net (loss) income before amortization, financial expenses, (loss)
gain 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 intangible
assets, (loss) gain on debt refinancing, income tax, and (loss)
income from discontinued operations. 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 of the Quebecor Media subsidiary. 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
(loss) income as disclosed in Quebecor's condensed consolidated
financial statements. 


 
Table 2                                                                     
Reconciliation of the operating income measure used in this press release to
the net (loss) income measure used in the condensed consolidated financial  
statements                                                                  
(in millions of Canadian dollars)                                           
                                                                            
                                 Three months ended       Nine months ended 
                                       September 30            September 30 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                   2013        2012        2013        2012 
----------------------------------------------------------------------------
                                                                            
Operating (loss) income:                                                    
  Telecommunications         $    329.3  $    304.4  $    962.4  $    898.9 
  News Media                       25.8        22.5        55.4        73.8 
  Broadcasting                     15.2         6.8        31.4        18.3 
  Leisure and Entertainment         7.9        11.8         9.1        16.5 
  Interactive Technologies                                                  
   and Communications               3.9         0.4         9.6         6.4 
  Head Office                      (1.8)        3.4        (2.3)        7.2 
----------------------------------------------------------------------------
                                  380.3       349.3     1,065.6     1,021.1 
Amortization                     (169.2)     (146.4)     (496.6)     (432.4)
Financial expenses                (90.3)      (80.1)     (285.9)     (247.5)
(Loss) gain on valuation and                                                
 translation of financial                                                   
 instruments                      (14.6)      117.7      (209.6)      231.8 
Restructuring of operations,                                                
 impairment of assets and                                                   
 other special items               (5.7)      (39.7)      (14.9)      (28.8)
Impairment of goodwill and                                                  
 intangible assets               (305.8)     (187.0)     (305.8)     (201.5)
(Loss) gain on debt                                                         
 refinancing                          -           -       (18.9)        2.4 
Income taxes                      (12.6)      (13.2)       (2.1)     (102.9)
(Loss) income from                                                          
 discontinued operations           (0.4)        2.0        39.7         6.9 
----------------------------------------------------------------------------
Net (loss) income            $   (218.3) $      2.6  $   (228.5) $    249.1 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
Adjusted income from continuing operations 
The Corporation defines adjusted income from continuing operations,
as reconciled to net (loss) income attributable to shareholders under
IFRS, as net (loss) income attributable to shareholders before (loss)
gain 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 intangible
assets, (loss) gain on debt refinancing, net of income tax related to
adjustments, net (loss) income attributable to non-controlling
interests related to adjustments, and (loss) income from discontinued
operations attributable to shareholders. Adjusted income from
c
ontinuing 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 operations may not be identical to similarly titled
measures reported by other companies.  
Table 3 provides a reconciliation of adjusted income from continuing
operations to net (loss) income attributable to shareholders in
Quebecor's condensed consolidated financial statements.  


 
Table 3                                                                     
Reconciliation of the adjusted income from continuing operations measure    
used in this press release to the net (loss) income attributable to         
shareholders measure used in the condensed consolidated financial statements
(in millions of Canadian dollars)                                           
                                                                            
                                   Three months ended     Nine months ended 
                                         September 30          September 30 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                      2013       2012       2013       2012 
----------------------------------------------------------------------------
                                                                            
Adjusted income from continuing                                             
 operations                      $    63.7  $    49.5  $   148.2  $   131.8 
(Loss) gain on valuation and                                                
 translation of                                                             
 financialinstruments                (14.6)     117.7     (209.6)     231.8 
Restructuring of operations,                                                
 impairment of assets and                                                   
 otherspecial items                   (5.7)     (39.7)     (14.9)     (28.8)
Impairment of goodwill and                                                  
 intangible assets                  (305.8)    (187.0)    (305.8)    (201.5)
(Loss) gain on debt refinancing          -          -      (18.9)       2.4 
Income taxes related to                                                     
 adjustments(1)                       19.1       19.7       75.7       (6.8)
Net income attributable to non-                                             
 controlling interestrelated to                                             
 adjustments                          75.8       55.8      118.1       21.3 
Discontinued operations               (0.3)       1.1       29.9        3.8 
----------------------------------------------------------------------------
Net (loss) income attributable                                              
 to shareholders                 $  (167.8) $    17.1  $  (177.3) $   154.0 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(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 Corporation'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       Nine months ended 
(unaudited)                            September 30            September 30 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                  2013         2012       2013         2012 
----------------------------------------------------------------------------
                                         (restated)              (restated) 
                                                                            
Revenues                     $ 1,075.1  $   1,054.7  $ 3,211.3  $   3,191.8 
                                                                            
Employee costs                   248.1        250.2      787.5        793.3 
Purchase of goods and                                                       
 services                        446.7        455.2    1,358.2      1,377.4 
Amortization                     169.2        146.4      496.6        432.4 
Financial expenses                90.3         80.1      285.9        247.5 
Loss (gain) on valuation and                                                
 translation of financial                                                   
 instruments                      14.6       (117.7)     209.6       (231.8)
Restructuring of operations,                                                
 impairment of assets and                                                   
 other special items               5.7         39.7       14.9         28.8 
Impairment of goodwill and                                                  
 intangible assets               305.8        187.0      305.8        201.5 
Loss (gain) on debt                                                         
 refinancing                         -            -       18.9         (2.4)
                            ------------------------------------------------
(Loss) income before income                                                 
 taxes                          (205.3)        13.8     (266.1)       345.1 
Income taxes:                                                               
  Current                         30.7         10.4       85.3         36.2 
  Deferred                       (18.1)         2.8      (83.2)        66.7 
                            ------------------------------------------------
                                  12.6         13.2        2.1        102.9 
                            ------------------------------------------------
                                                                            
(Loss) income from                                                          
 continuing operations          (217.9)         0.6     (268.2)       242.2 
(Loss) income from                                                          
 discontinued operations          (0.4)         2.0       39.7          6.9 
                            ------------------------------------------------
Net (loss) income            $  (218.3) $       2.6  $  (228.5) $     249.1 
                            ------------------------------------------------
                            ------------------------------------------------
(Loss) income from                                                          
 continuing operations                                                      
 attributable to                                                            
  Shareholders               $  (167.5) $      16.0  $  (207.2) $     150.2 
  Non-controlling interests      (50.4)       (15.4)     (61.0)        92.0 
                            ------------------------------------------------
                            ------------------------------------------------
Net (loss) income                                                           
 attributable to                                                            
  Shareholders               $  (167.8) $      17.1  $  (177.3) $     154.0 
  Non-controlling interests      (50.5)       (14.5)     (51.2)        95.1 
                            ------------------------------------------------
                            ------------------------------------------------
Earnings per share                                                          
 attributable to                                                            
 shareholders         
                                                      
  Basic                                                                     
    From continuing                                                         
     operations              $   (1.36) $      0.13  $   (1.67) $      1.19 
    From discontinued                                                       
     operations                      -         0.01       0.24         0.03 
    Net (loss) income            (1.36)        0.14      (1.43)        1.22 
  Diluted                                                                   
    From continuing                                                         
     operations                  (1.36)        0.13      (1.67)        1.18 
    From discontinued                                                       
     operations                      -         0.01       0.24         0.03 
    Net (loss) income            (1.36)        0.14      (1.43)        1.21 
                            ------------------------------------------------
                            ------------------------------------------------
Weighted average number of                                                  
 shares outstanding (in                                                     
 millions)                       123.7        126.3      124.2        126.7 
Weighted average number of                                                  
 diluted shares (in                                                         
 millions)                       123.7        126.5      124.2        127.0 
                            ------------------------------------------------
                            ------------------------------------------------
                                                                            
                                                                            
                                                                            
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME                             
(in millions of Canadian                                                    
 dollars)                         Three months ended      Nine months ended 
(unaudited)                             September 30           September 30 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                   2013         2012      2013         2012 
----------------------------------------------------------------------------
                                          (restated)             (restated) 
                                                                            
Net (loss) income              $ (218.3) $       2.6  $ (228.5) $     249.1 
                                                                            
Other comprehensive income:                                                 
Items that may be reclassified                                              
 to income:                                                                 
  (Loss) gain on translation                                                
   of net investments in                                                    
   foreign operations              (2.9)        (2.9)      2.3         (3.7)
  Cash flow hedges:                                                         
    (Loss) gain on valuation                                                
     of derivative financial                                                
     instruments                  (10.8)         5.8     (39.3)        31.2 
    Deferred income taxes           4.7          2.3       1.3          1.4 
Items that will not be                                                      
 reclassified to income:                                                    
  Defined benefit plans:                                                    
    Actuarial gain                119.0            -     119.0            - 
    Deferred income taxes         (32.0)           -     (32.0)           - 
Reclassification to income:                                                 
  Gain related to cash flow                                                 
   hedges                          (8.0)           -     (14.5)        (3.3)
  Deferred income taxes             0.9            -       1.1         (1.2)
                              ----------------------------------------------
                                   70.9          5.2      37.9         24.4 
                              ----------------------------------------------
Comprehensive (loss) income    $ (147.4) $       7.8  $ (190.6) $     273.5 
                              ----------------------------------------------
                              ----------------------------------------------
Comprehensive (loss) income                                             
    
 attributable to                                                            
  Shareholders                 $ (120.8) $      20.0  $ (155.2) $     167.4 
  Non-controlling interests       (26.6)       (12.2)    (35.4)       106.1 
                              ----------------------------------------------
                              ----------------------------------------------
                                                                            
                                                                            
                                                                            
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
SEGMENTED INFORMATION                                                       
(in millions of Canadian dollars)                                           
(unaudited)                                                                 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                       Three months ended September 30, 2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                      
                                      
                                                                     Leisure
                                                                         and
                                  Telecommu-      News    Broad-      Enter-
                                   nications     Media   casting    tainment
----------------------------------------------------------------------------
                                                                            
Revenues                         $     683.2 $   207.8 $   104.1 $      74.8
                                                                            
Employee costs                          87.4      71.5      34.1        14.4
Purchase of goods and services         266.5     110.5      54.8        52.5
----------------------------------------------------------------------------
Operating income(1)                    329.3      25.8      15.2         7.9
                                                                            
Amortization                                                                
Financial expenses                                                          
Loss on valuation and                                                       
 translation of financial                                                   
 instruments                                                                
Restructuring of operations,                                                
 impairment of assets and other                                             
 special items                                                              
Impairment of goodwill and                                                  
 intangible assets                                                          
----------------------------------------------------------------------------
Loss before income taxes                                                    
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Additions to property, plant and                                            
 equipment                       $     140.0 $     6.9 $     4.7 $       1.0
Additions to intangible assets          13.1       2.1       0.8         0.9
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
 
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
SEGMENTED INFORMATION                                                       
(in millions of Canadian dollars)                                           
(unaudited)                                                                 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                      Three months ended September 30, 2013 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                   Interactive                              
                                       Techno-           Head               
                                    logies and         office               
                                      Communi-     and Inter-               
                                       cations       segments         Total 
----------------------------------------------------------------------------
                                                                            
Revenues                         $        33.9  $       (28.7) $    1,075.1 
                                                                            
Employee costs                            22.0           18.7         248.1 
Purchase of goods and services             8.0          (45.6)        446.7 
----------------------------------------------------------------------------
Operating income(1)                        3.9           (1.8)        380.3 
                                                                            
Amortization                                                          169.2 
Financial expenses                                                     90.3 
Loss on valuation and                                                       
 translation of financial                                                   
 instruments                                                           14.6 
Restructuring of operations,                                                
 impairment of assets and other                                             
 special items                                                          5.7 
Impairment of goodwill and                                                  
 intangible assets                                                    305.8 
----------------------------------------------------------------------------
Loss before income taxes                                       $     (205.3)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Additions to property, plant and                                            
 equipment                       $         0.1  $         0.5  $      153.2 
Additions to intangible assets             0.1           (0.3)         16.7 
------------------
----------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
                                       Three months ended September 30, 2012
                                                                  (restated)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                     Leisure
                                                                         and
                                  Telecommu-      News    Broad-      Enter-
                                   nications     Media   casting    tainment
----------------------------------------------------------------------------
                                                                            
Revenues                         $     650.1 $   227.6 $    99.0 $      77.7
                                                                            
Employee costs                          85.3      85.6      37.1        14.2
Purchase of goods and services         260.4     119.5      55.1        51.7
----------------------------------------------------------------------------
Operating income(1)                    304.4      22.5       6.8        11.8
                                                                            
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                                                          
----------------------------------------------------------------------------
Income before income taxes                                                  
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Additions to property, plant and                                            
 equipment                       $     174.5 $     2.0 $     5.8 $       1.8
Additions to intangible assets          11.5       3.1       0.9         0.7
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
 
                                      Three months ended September 30, 2012 
                                                                 (restated) 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                   Interactive                              
                                       Techno-           Head               
                                    logies and         office               
                                      Communi-     and Inter-               
                                       cations       segments         Total 
----------------------------------------------------------------------------
                                                                            
Revenues                         $        33.7  $       (33.4) $    1,054.7 
                                                                            
Employee costs                            20.8            7.2         250.2 
Purchase of goods and services            12.5          (44.0)        455.2 
----------------------------------------------------------------------------
Operating income(1)                        0.4            3.4         349.3 
                                                                            
Amortization                                                          146.4 
Financial expenses                                                     80.1 
Gain on valuation and                                                       
 translation of financial                                                   
 instruments                                                         (117.7)
Restructuring of operations,                                                
 impairment of assets and other                                             
 special items                                                         39.7 
Impairment of goodwill and                                                  
 intangible assets                                                    187.0 
----------------------------------------------------------------------------
Income before income taxes                                     $       13.8 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Additions to property, plant and                                            
 equipment                       $         0.8  $         0.9  $      185.8 
Additions to intangible assets               -           (0.4)         15.8 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(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 (loss) income     
     before amortization, financial expenses, loss (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 (gain) on debt refinancing, income taxes   
     and (loss) income from discontinued operations.                        
                                                                            
                                                                            
                                                                            
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
SEGMENTED INFORMATION (CONTINUED)                                           
(in millions of Canadian dollars)                                           
(unaudited)                                                                 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                        Nine months ended September 30, 2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                     Leisure
                                                                         and
                                  Telecommu-      News    Broad-      Enter-
                                   nications     Media   casting    tainment
----------------------------------------------------------------------------
                                                                            
Revenues                        $    2,018.6 $   644.6 $   330.7 $     205.2
                                                                        
    
Employee costs                         276.0     234.9     108.1        43.8
Purchase of goods and services         780.2     354.3     191.2       152.3
----------------------------------------------------------------------------
Operating income(1)                    962.4      55.4      31.4         9.1
                                                                            
Amortization                                                                
Financial expenses                                                          
Loss 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                                                    
----------------------------------------------------------------------------
Loss before income taxes                                                    
--------------------------------------
--------------------------------------
----------------------------------------------------------------------------
                                                                            
Additions to property, plant and                                            
 equipment                      $      412.4 $    11.6 $    14.3 $       2.0
Additions to intangible assets          36.7       6.0       1.7         3.8
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
 
                                                                            
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
SEGMENTED INFORMATION (CONTINUED)                                           
(in millions of Canadian dollars)                                           
(unaudited)                                                                 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                       Nine months ended September 30, 2013 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                   Interactive                              
                                       Techno-           Head               
                                    logies and         office               
                                      Communi-     and Inter-               
                                       cations       segments         Total 
----------------------------------------------------------------------------
                                                                            
Revenues                         $       104.9$         (92.7) $    3,211.3 
                                                                            
Employee costs                            70.4           54.3         787.5 
Purchase of goods and services            24.9         (144.7)      1,358.2 
----------------------------------------------------------------------------
Operating income(1)                        9.6           (2.3)      1,065.6 
                                                                            
Amortization                    
                                      496.6 
Financial expenses                                                    285.9 
Loss on valuation and                                                       
 translation of financial                                                   
 instruments                                                          209.6 
Restructuring of operations,                                                
 impairment of assets and other                                             
 special items                                                         14.9 
Impairment of goodwill and                                                  
 intangible assets                                                    305.8 
Loss on debt refinancing                                               18.9 
----------------------------------------------------------------------------
Loss before income taxes                                       $     (266.1)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Additions to property, plant and                                            
 equipment                       $         1.3$           1.5  $      443.1 
Additions to intangible assets             0.1           (0.4)         47.9 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
                                        Nine months ended September 30, 2012
                                                                  (restated)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                     Leisure
                                                                         and
                                  Telecommu-      News    Broad-      Enter-
                                   nications     Media   casting    tainment
----------------------------------------------------------------------------
                                                                            
Revenues                        $    1,929.2 $   715.5 $   328.0 $     217.1
                                                                            
Employee costs                         263.8     268.4     115.3        43.1
Purchase of goods and services         766.5     373.3     194.4       157.5
----------------------------------------------------------------------------
Operating income(1)                    898.9      73.8      18.3        16.5
                                                                            
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                                                          
Gain on debt refinancing                                                    
----------------------------------------------------------------------------
Income before income taxes                                                  
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Additions to property, plant and                                            
 equipment                      $      519.4 $     5.5 $    17.9 $       3.7
Additions to intangible assets          43.9       9.2       2.2         4.2
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
 
                                                                            
                                                                            
                                       Nine months ended September 30, 2012 
                                                                 (restated) 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                   Interactive                              
                                       Techno-           Head               
                                    logies and         office               
                                      Communi-     and Inter-               
                                       cations       segments         Total 
----------------------------------------------------------------------------
                                                                            
Revenues                         $       109.7$        (107.7) $    3,191.8 
                                                                            
Employee costs                            68.8           33.9         793.3 
Purchase of goods and services            34.5         (148.8)      1,377.4 
----------------------------------------------------------------------------
Operating income(1)                        6.4            7.2       1,021.1 
                                                                            
Amortization                                                          432.4 
Financial expenses                                                    247.5 
Gain on valuation and                                                       
 translation of financial                                                   
 instruments                                                         (231.8)
Restructuring of operations,                                                
 impairment of assets and other                                             
 special items                                                         28.8 
Impairment of goodwill and                                                  
 intangible assets                                                    201.5 
Gain on debt refinancing                                               (2.4)
----------------------------------------------------------------------------
Income before income taxes                                     $      345.1 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Additions to property, plant and                      
                      
 equipment                       $         3.0$           2.1  $      551.6 
Additions to intangible assets               -           (1.4)         58.1 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(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 (loss) income     
     before amortization, financial expenses, loss (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 (gain) on debt refinancing, income taxes   
     and (loss) income from discontinued operations.                        
                                                                            
                                                                            
                                                                            
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 (loss) 
----------------------------------------------------------------------------
                                                                            
                                                                            
Balance as of                                                               
 December 31,                                                               
 2011, as                                                                   
 previously                                                                 
 reporte
d     $   339.5 $         0.9 $          - $  1,077.2 $         8.6 
Changes in                                                                  
 accounting                                                                 
 policies             -             -            -       48.4         (49.6)
----------------------------------------------------------------------------
Balance as of                                                               
 December 31,                                                               
 2011, as                                                                   
 restated         339.5           0.9            -    1,125.6         (41.0)
Net income            -             -            -      154.0             - 
Other                                                                       
 comprehensive                                                              
 income               -             -            -          -          13.4 
Issuance of                                                                 
 shares of a                                                                
 subsidiary         3.6           1.5            -          -             - 
Repurchase of                                                               
 Class B                                                                    
 shares            (5.5)            -            -      (20.3)            - 
Acquisition of                                                              
 non-                                                                       
 controlling                                                                
 interests            -          (0.1)           -          -             - 
Dividends             -             -            -       (9.5)            - 
----------------------------------------------------------------------------
Balance as of                                                               
 September 30,                                                              
 2012             337.6           2.3            -    1,249.8         (27.6)
Net income                                                                  
 (loss)               -             -            -        7.1             - 
Other                                                                       
 comprehensive                                                              
 loss                 -             -            -          -         (12.3)
Repurchase of                                                               
 Class B                                                                    
 shares            (2.5)            -            -      (10.0)            - 
Acquisition of                                                              
 non-                                                                       
 controlling                                                                
 interests            -             -            -     (619.2)        (10.4)
Issuance of                                                                 
 convertible                                                                
 debentures           -             -        398.3          -             - 
Dividends             -             -            -       (3.1)            - 
----------------------------------------------------------------------------
Balance as of                                                               
 December 31,                                                               
 2012             335.1           2.3        398.3      624.6         (50.3)
Net loss              -             -            -     (177.3)            - 
Other                                                                       
 comprehensive                                                              
 income               -             -            -          -          22.1 
Repurchase of                                                               
 Class B                                                                    
 shares            (5.4)            -            -      (26.1)            - 
Dividends             -             -            -       (9.3)
            - 
Business                                                                    
 acquisition          -             -            -          -             - 
----------------------------------------------------------------------------
Balance as of                                                               
 September 30,                                                              
 2013         $   329.7 $         2.3 $      398.3 $    411.9 $       (28.2)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
                                      Equity                                
                                attributable                                
                                     to non-                                
                                 controlling                          Total 
                                   interests                         equity 
----------------------------------------------------------------------------
                                                                            
                                                                            
Balance as of                                                               
 December 31,                                                               
 2011, as                                                                   
 previously                                                                 
 reported     $                      1,444.4 $                      2,870.6 
Changes in                                                                  
 accounting                                                                 
 policies                               (1.5)                          (2.7)
----------------------------------------------------------------------------
Balance as of                                                               
 December 31,                                                               
 2011, as                                                                   
 restated                            1,442.9                        2,867.9 
Net income                              95.1                          249.1 
Other                                                                       
 comprehensive                                                              
 income                                 11.0                           24.4 
Issuance of                                                                 
 shares of a                                                                
 subsidiary                                -                            5.1 
Repurchase of                                                               
 Class B                                                                    
 shares                                    -                          (25.8)
Acquisition of                                                              
 non-                                                                       
 controlling                                                                
 interests                               0.1                              - 
Dividends                              (34.1)                        
 (43.6)
----------------------------------------------------------------------------
Balance as of                                                               
 September 30,                                                              
 2012                                1,515.0                        3,077.1 
Net income                                                                  
 (loss)                                 (0.9)                           6.2 
Other                                                                       
 comprehensive                                                              
 loss                                   (5.9)                         (18.2)
Repurchase of                                                               
 Class B                                                                    
 shares                                    -                          (12.5)
Acquisition of                                                              
 non-                                                                       
 controlling                                                                
 interests                            (870.4)                      (1,500.0)
Issuance of                                                                 
 convertible                                                                
 debentures                                -                          398.3 
Dividends                               (6.5)                          (9.6)
----------------------------------------------------------------------------
Balance as of                                                               
 December 31,                                                               
 2012                                  631.3                        1,941.3 
Net loss                               (51.2)                        (228.5)
Other                                                                       
 comprehensive                                                              
 income                                 15.8                           37.9 
Repurchase of                                                               
 Class B                                                                    
 shares                                    -                          (31.5)
Dividends                              (18.6)                         (27.9)
Business                                                                    
 acquisition                             0.3                            0.3 
----------------------------------------------------------------------------
Balance as of                                                               
 September 30,                                                              
 2013         $                        577.6 $                      1,691.6 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
CONSOLIDATED STATEMENTS OF CASH FLOWS                                       
(in millions of Canadian                                                    
 dollars)                        Three months ended       Nine months ended 
(unaudited)                            September 30            September 30 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                  2013         2012       2013         2012 
----------------------------------------------------------------------------
                                         (restated)              (restated) 
Cash flows related to                                                       
 operating activities                                                       
  (Loss) income from                                                        
   continuing operations     $  (217.9) $       0.6  $  (268.2) $     242.2 
  Adjustments for:                                                          
    Amortization of                                                         
     property, plant and                                                    
     equipment                   132.6        112.6      387.6        331.2 
    Amortization of                                                         
     intangible assets            36.6         33.8      109.0        101.2 
    Loss (gain) on valuation                                                
     and translation of                                                     
     financial instruments        14.6       (117.7)     209.6       (231.8)
    Gain on disposal of                                                     
     assets                          -            -          -        (12.9)
    Impairment of assets           0.6          7.5        2.3          7.5 
    Impairment of goodwill                                                  
     and intangible assets       305.8        187.0      305.8        201.5 
    Loss (gain) on debt                                                     
     refinancing                     -            -       18.9         (2.4)
    Amortization of                                                         
     financing costs and                                                    
     long-term debt discount       2.8          3.6        9.1         10.9 
    Deferred income taxes        (18.1)         2.8      (83.2)        66.7 
    Other                          0.3         (0.6)       0.1         (0.6)
                            ------------------------------------------------
                                 257.3        229.6      691.0        713.5 
  Net change in non-cash                                                    
   balances related to                                                      
   operating activities           81.5        147.0      (86.1)       120.5 
                            ------------------------------------------------
Cash flows provided by                      
                                
 continuing operating                                                       
 activities                      338.8        376.6      604.9        834.0 
                            ------------------------------------------------
Cash flows related to                                                       
 investing activities                                                       
  Business acquisitions           (6.9)           -       (8.5)        (0.8)
  Business disposals              (0.7)         0.8       52.1          0.8 
  Additions to property,                                                    
   plant and equipment          (153.2)      (185.8)    (443.1)      (551.6)
  Additions to intangible                                                   
   assets                        (16.7)       (15.8)     (47.9)       (58.1)
  Proceeds from disposals of                                                
   assets                          3.5          3.7       14.4         27.1 
  Net change in cash held in                                                
   trust                           5.8            -          -            - 
  Other                            0.6          0.4        0.6         (0.6)
                            ------------------------------------------------
Cash flows used in                                                          
 continuing investing                                                       
 activities                     (167.6)      (196.7)    (432.4)      (583.2)
                            ------------------------------------------------
Cash flows related to                                                       
 financing activities                                                       
  Net change in bank                                                        
   indebtedness                   (0.5)        (4.8)      (0.1)        (2.7)
  Net change under revolving                                                
   facilities                     (3.1)        10.5        6.9        (12.4)
  Issuance of long-term                                                     
   debt, net of financing                                                   
   fees                          358.4         34.9      753.2        822.5 
  Repayments of long-term                                                   
   debt                         (706.1)       (40.3)    (717.2)      (749.3)
  Repayment of liability                                                    
   component of convertible                                                 
   debentures                        -            -       (6.7)           - 
  Settlement of hedging                                                     
   contracts                     (19.2)         3.6      (27.7)       (40.5)
  Issuance of Class B shares         -            -          -          3.6 
  Repurchase of Class B                                                     
   shares                         (9.9)       (20.5)     (31.5)       (25.8)
  Dividends                       (3.1)        (3.2)      (9.3)        (9.5)
  Dividends paid to non-                                                    
   controlling shareholders       (6.1)       (11.4)     (18.6)       (34.1)
                            ------------------------------------------------
Cash flows used in                                                          
 continuing financing                                                       
 activities                     (389.6)       (31.2)     (51.0)       (48.2)
                            ------------------------------------------------
Net change in cash and cash                                                 
 equivalents from continuing                                                
 operations                     (218.4)       148.7      121.5        202.6 
                                                                            
Cash flows (used in)                                                        
 provided by discontinued                                                   
 operations                       (1.1)         1.8        2.9          9.0 
                                                                            
Effect of exchange rate                                                     
 changes on cash and cash                                                   
 equivalents denominated in                                                 
 foreign currencies                0.1         (0.3)       0.5         (0.5)
Cash and cash equivalents at                                                
 beginning of period             573.0        204.4      228.7        143.5 
                            ------------------------------------------------
Cash and cash equivalents at                                                
 end of period               $   353.6  $     354.6  $   353.6  $     354.6 
                            ------------------------------------------------
                            ------------------------------------------------
                                                                            
Cash and cash equivalents                                                   
 consist of                                                                 
  Cash                       $   129.8  $      29.7  $   129.8  $      29.7 
  Cash equivalents               223.8        324.9      223.8        324.9 
                            ------------------------------------------------
                             $   353.6  $     354.6  $   353.6  $     354.6 
                            ------------------------------------------------
                            ------------------------------------------------
                                                                            
Interest and taxes reflected                                                
 as operating activities                                                    
  Cash interest payments     $    32.6  $      17.2  $   211.5  $     168.3 
  Cash income tax payments                                                  
   (net of refunds)                1.6         (1.5)      46.9          6.0 
                            ------------------------------------------------
                            ------------------------------------------------
                                                                            
                                                                            
                                                                            
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
CONSOLIDATED BALANCE SHEETS                                                 
(in millions of Canadian dollars)                                           
(unaudited)                                      September 30   December 31 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                         2013          2012 
                                                                 (restated) 
                                                                            
Assets                                                                
      
                                                                            
Current assets                                                              
  Cash and cash equivalents                      $      353.6  $      228.7 
  Accounts receivable                                   541.3         578.7 
  Income taxes                                           21.3          10.6 
  Inventories                                           274.0         255.5 
  Prepaid expenses                                       54.0          38.0 
                                                ----------------------------
                                                      1,244.2       1,111.5 
Non-current assets                                                          
  Property, plant and equipment                       3,410.3       3,405.8 
  Intangible assets                                     834.8         956.7 
  Goodwill                                            3,109.5       3,371.6 
  Derivative financial instruments                       59.7          35.7 
  Deferred income taxes                                  56.7          23.9 
  Other assets                                           98.3         102.6 
                                                ----------------------------
                                                      7,569.3       7,896.3 
                                                ----------------------------
Total assets                                     $    8,813.5  $    9,007.8 
                                                ----------------------------
                                                ----------------------------
Liabilities and equity                                                      
                                                                            
Current liabilities                                                         
  Bank indebtedness                              $        1.2  $        1.3 
  Accounts payable and accrued charges                  646.7         804.5 
  Provisions                                             31.4          45.9 
  Deferred revenue                                      294.8         289.0 
  Income taxes                                           85.9          33.9 
  Derivative financial instruments                      119.8          28.5 
  Current portion of long-term debt                      26.0          22.2 
                                                ----------------------------
                                                      1,205.8       1,225.3 
Non-current liabilities                                                     
  Long-term debt                                      4,923.1       4,507.8 
  Derivative financial instruments                       94.1         270.1 
  Other liabilities                                     321.3         469.2 
  Deferred income taxes                                 577.6         594.1 
                                                ----------------------------
                                                      5,916.1       5,841.2 
Equity                                                                      
  Capital stock                                         329.7         335.1 
  Contributed surplus                                     2.3           2.3 
  Equity component of convertible debentures            398.3         398.3 
  Retained earnings                                     411.9         624.6 
  Accumulated other comprehensive loss                  (28.2)        (50.3)
                                                ----------------------------
  Equity attributable to shareholders                 1,114.0       1,310.0 
  Non-controlling interests                             577.6         631.3 
                                                ----------------------------
                                                      1,691.6       1,941.3 
                                                ----------------------------
                                                                            
Total liabilities and equity                     $    8,813.5  $    9,007.8 
                                                ----------------------------
                                                ----------------------------

Contacts:
Jean-Francois Pruneau
Senior Vice President and 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
 
 
Press spacebar to pause and continue. Press esc to stop.