Quebecor Inc. Reports Fourth Quarter and Full Year 2013 Consolidated Results

Quebecor Inc. Reports Fourth Quarter and Full Year 2013 Consolidated Results 
NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: Quebecor Inc. 
TSX SYMBOL:  QBR.A
TSX SYMBOL:  QBR.B 
MARCH 13, 2014 
Quebecor Inc. Reports Fourth Quarter and Full Year 2013 Consolidated Results 
MONTREAL, QUEBEC--(Marketwired - March 13, 2014) - Quebecor Inc.
("Quebecor" or the "Corporation") (TSX:QBR.A)(TSX:QBR.B)
today reported its fourth quarter and full year 2013 consolidated financial
results. Quebecor consolidates the financial results of its Quebecor Media Inc.
("Quebecor Media") subsidiary, in which it holds a 75.4% interest.  
Highlights  
2013 financial year 
/T/ 
--  Revenues up $28.3 million (0.7%) from 2012 to $4.28 billion.  
--  Adjusted operating income(1) up $70.8 million (5.1%) to $1.45 billion.  
--  Net loss attributable to shareholders: $133.9 million ($1.08 per basic 
share) in 2013, compared with net income attributable to shareholders in 
the amount of $161.1 million ($1.27 per basic share) in 2012, an 
unfavourable variance of $295.0 million ($2.35 per basic share), 
including the total $299.4 million unfavourable non-cash impact of 
fluctuations in the value of goodwill, intangible assets and derivative 
financial instruments.  
--  Adjusted income from continuing operations(2): $214.1 million in 2013 
($1.73 per basic share), compared with $182.3 million ($1.44 per basic 
share) in 2012, an increase of $31.8 million ($0.29 per basic share).  
--  The Telecommunications segment grew its revenues by $114.0 million 
(4.4%) and its adjusted operating income by $81.1 million (6.7%) in 2013 
despite strong competition.  
--  Videotron Ltd. ("Videotron") recorded revenue increases in 2013 for all 
its main services: mobile telephony ($49.1 million or 28.6%), Internet 
access ($45.9 million or 5.9%), cable telephony ($18.9 million or 4.2%), 
and cable television ($11.0 million or 1.0%).  
--  Videotron revenue-generating units(3) up 122,700 in 2013, compared with 
an increase of 221,800 in 2012. Videotron passed the five-million 
revenue-generating unit mark in 2013. At year's end, there were 503,300 
subscriber connections to the mobile telephone service launched in 2010. 
--  On February 19, 2014, Videotron acquired seven 700 MHz spectrum licences 
in Canada's four most populous provinces for a cash consideration of 
$233.3 million in the Industry Canada spectrum auction.  
--  On December 19, 2013, Quebecor Media announced that it was abandoning 
door-to-door distribution of community newspapers and flyers in Quebec 
and discontinuing distribution of the Le Sac Plus doorknob bag as of 
January 2014.  
--  On December 5, 2013, Sun Media Corporation announced the sale of 74 
Quebec weeklies to Transcontinental Interactive Inc., ("Transcontinental 
Interactive"), a subsidiary of Transcontinental Inc. 
("Transcontinental"), for a cash consideration of $75.0 million.  
--  In November 2013, Quebecor reached a twelve-year agreement with Rogers 
Communications Inc. and the National Hockey League ("NHL") whereby TVA 
Sports will become the NHL's official French-language broadcaster in 
Canada as of the 2014-15 season.  
--  In May 2013, Videotron and Rogers Communications Partnership ("Rogers") 
reached a 20-year agreement to build out and operate a shared LTE mobile 
network in the Province of Quebec and the Ottawa area.  
--  On May 8, 2013, Robert Depatie replaced Pierre Karl Peladeau as 
President and Chief Executive Officer of Quebecor and of Quebecor Media. 
Manon Brouillette was named President and Chief Operating Officer of 
Videotron. On the same date, Pierre Karl Peladeau became Chairman of the 
Board of Quebecor Media and of TVA Group, and Vice Chairman of the Board 
of Quebecor.  
--  Following his decision to enter politics and run as a candidate, Pierre 
Karl Peladeau resigned from all his positions with Quebecor and its 
subsidiaries on March 9, 2014. Subsequently, Sylvie Lalande was 
appointed Chairperson of the Board of TVA Group on March 10, 2014 and 
Francoise Bertrand was appointed Chairperson of the Board of Quebecor 
Media on March 12, 2014. Robert Depatie became a director of Quebecor, 
Quebecor Media and TVA Group on March 12, 2014.  
(1) See "Adjusted 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.                                                       
/T/ 
Fourth quarter 2013 
/T/ 
--  Revenues up $5.7 million (0.5%) to $1.12 billion.  
--  Adjusted operating income up $25.2 million (6.9%) to $391.3 million. 
Adjusted operating income up $17.6 million (5.8%) in the 
Telecommunications segment.  
--  Net income attributable to shareholders: $43.4 million ($0.35 per basic 
share) in the fourth quarter of 2013 compared with $7.1 million ($0.06 
per basic share) in the same period of 2012, a favourable variance of 
$36.3 million ($0.29 per basic share).  
--  Adjusted income from continuing operations: $68.0 million in the fourth 
quarter of 2013 ($0.55 per basic share), compared with $52.3 million 
($0.42 per basic share) in the same period of 2012, an increase of $15.7 
million ($0.13 per basic share).  
--  Videotron revenue-generating units increased 35,100 in the fourth 
quarter of 2013.  
/T/ 
"Quebecor continued its growth in 2013 with a $70.8 million increase in
adjusted operating income and a $31.8 million increase in adjusted income from
continuing operations," noted Robert Depatie, President and Chief
Executive Officer of Quebecor. "The Corporation also made a number of
major strategic transactions and agreements, including the acquisition of seven
700 MHz spectrum licences across Canada, a 20-year agreement with Rogers to
build and operate a shared LTE wireless network, and the acquisition of
French-language broadcast rights to NHL games in Canada for the next 12 years.
These transactions open immense opportunities for future development and growth
for the Corporation.  
"The 700 MHz operating licences acquired by Videotron on February 19, 2014
in the Industry Canada spectrum auction for $233.3 million cover the entirety
of the provinces of Quebec, Ontario (except Northern Ontario), Alberta and
British Columbia. They make it possible to reach approximately 80% of
Canada's population, more than 28 million people. Quebecor Media could not
let pass this opportunity to invest in the acquisition of such intrinsically
valuable licences in the rest of Canada. While no decision has yet been made on
how to use the spectrum, various options for maximizing the value of our
investment are now available to us."  
"Videotron registered another stand-out performance in 2013,"
commented Manon Brouillette, President and Chief Operating Officer of
Videotron. "Revenues and revenue-generating units were up for the eleventh
consecutive year, despite very competitive market conditions. Videotron's
revenues grew 4.4% to $2.71 billion and its adjusted operating income rose 6.7%
to a record $1.28 billion. Average monthly revenue per user ("ARPU")
increased $6.46 (5.8%) to $118.03 in 2013. The results demonstrate
Videotron's ability to adapt effectively to the business environment, to
approach product development and marketing with constantly renewed creativity,
to stringently control its operating costs and to place the quality of the
customer experience above all else at all times.  
"During 2013, Videotron launched Club illico, a subscription video on
demand service which carries the largest selection of unlimited on-demand
French-language titles in Canada. By the end of 2013, the service had nearly
60,000 subscribers and had logged more than 11.0 million orders since its
inception. Videotron also reached a 20-year agreement with mobile carrier
Rogers to build out and operate a shared LTE wireless network in Quebec and the
Ottawa area, which will be mutually beneficial to the two companies and their
customers."  
"The refocusing of our news media operations continued in 2013,"
commented Julie Tremblay, President and Chief Executive Officer of Sun Media
Corporation. "The News Media segment's adjusted operating income fell
7.0% to $97.7 million over the year 2013 but rose by 19.3% in the fourth
quarter, reflecting among other things the impact of the many cost-containment
and repositioning measures implemented in recent years. The series of
restructuring initiatives announced by Sun Media Corporation in 2013 are
expected to yield an estimated $67.0 million in total annual savings, of which
a significant portion remains to be realized in 2014. These savings will be
used to finance expansion of value-added content offerings on print and digital
platforms. As part of its repositioning, Sun Media Corporation also announced
in December 2013 the sale of 74 Quebec community weeklies to Transcontinental
Interactive for a $75.0 million cash consideration and its decision to
discontinue its door-to-door distribution network as of January 2014."  
In the Broadcasting segment, adjusted operating income increased by $12.0
million (35.9%) in 2013 to $45.4 million, reflecting among other things the
favourable impact of a retroactive adjustment to royalties for distant signal
retransmission for the years 2009 to 2013, the decrease in the adjusted
operating loss of SUN News General Partnership, as well as the positive impact
of restructuring initiatives introduced by TVA Group in 2013 with a view to
maintaining its leading position in Quebec and safeguarding the quality of its
content. With respect to business development, the TVA Sports specialty channel
secured a strong position in 2013 by becoming the NHL's official
French-language broadcaster in Canada for the next 12 years under an agreement
of historic importance for the Broadcasting sector.  
Quebecor Media pursued its diversification strategy by acquiring Event
Management Gestev inc., a Quebec City sporting and cultural event manager, in
2013, while TVA Group announced the acquisition of Les Publications Charron
& Cie inc., publisher of La Semaine magazine, and of Charron Editeur inc.
Quebecor Media also sold the specialized websites Jobboom and Reseau Contact
for a selling price of $65.0 million.  
"On the financial front, Quebecor continued its efforts to reduce its
refinancing risk in 2013 by seizing opportunities that will also significantly
lower its interest expense, realizing annual savings of more than $20.0
million," said Jean-Francois Pruneau, Senior Vice President and Chief
Financial Officer of Quebecor. "As well, Videotron issued Senior Notes in
the aggregate principal amount of $400.0 million at an advantageous 5.625%
interest rate, the first issue of high-yield 12-year Notes on the Canadian
market. It should also be noted that the financial operations carried out since
the beginning of 2012, including the purchase in October 2012 of part of the
interest in Quebecor Media held by CDP Capital d'Amerique Investissement
inc., a subsidiary of the Caisse de depot et placement du Quebec, contributed
to the 17.4% increase in adjusted income from continuing operations in
2013."  
"During 2013, Quebecor posted solid consolidated financial results and
continued growth in the Telecommunications segment," said Robert Depatie.
"As well, by carrying out major strategic transactions and disposing of
certain activities that no longer fit its development objectives, Quebecor is
positioning itself favourably to pursue its business development goals, grow
its profits and maximize shareholder value going forward."  
/T/ 
Table 1                                                                     
Quebecor financial highlights, 2009 to 2013                                 
(in millions of Canadian dollars, except per share data)                     
/T/ 
/T/ 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
2013(1)    2012(1)   2011(1)   2010(1)   2009(2)
---------------------------------------------------------------------------- 
Revenues                  $ 4,277.2  $ 4,248.9 $ 4,094.7 $ 3,910.6 $ 3,716.3
Adjusted operating income   1,451.8    1,381.0   1,318.8   1,314.1   1,256.1
(Loss) income from                                                          
 continuing operations                                                      
 attributable to                                                            
 shareholders                (148.4)     162.8     188.3     216.3     269.3
Net (loss) income                                                           
 attributable to                                                            
 shareholders                (133.9)     161.1     196.4     223.4     277.7
Adjusted income from                                                        
 continuing operations        214.1      182.3     178.4     211.6     228.8
Per basic share:(3)                                                         
  (Loss) income from                                                         
continuing operations                                                     
attributable to                                                           
shareholders               (1.20)      1.29      1.47      1.68      2.09
  Net (loss) income                                                          
attributable to                                                           
shareholders               (1.08)      1.27      1.53      1.74      2.16
  Adjusted income from                                                       
continuing operations       1.73       1.44      1.39      1.65      1.78
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
(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) Per share data has been retroactively adjusted to reflect the two-for-   
one split of the Corporation's shares on August 14, 2013.                
/T/ 
Discontinued operations  
On December 5, 2013, Quebecor Media announced the sale of 74 Quebec weeklies to
Transcontinental Interactive, a subsidiary of Transcontinental, for a cash
consideration of $75.0 million. The transaction is subject to approval by
regulatory authorities. Quebecor Media sold its specialized websites Jobboom
and Reseau Contact on June 1, 2013 for a total cash consideration of $59.2
million, net of disposed-of cash in the amount of $5.8 million. The operating
results and cash flows related to those businesses, as well as the $37.6
million gain on the sale of the two websites, were reclassified as discontinued
operations in the consolidated statements of income and cash flows. 
2013/2012 financial year comparison  
Revenues: $4.28 billion, a $28.3 million (0.7%) increase.  
/T/ 
--  Revenues increased in Telecommunications ($114.0 million or 4.4% of 
segment revenues) and Broadcasting ($1.3 million or 0.3%).  
--  Revenues decreased in News Media ($91.3 million or -10.4%), Leisure and 
Entertainment ($12.7 million or -4.1%) and Interactive Technologies and 
Communications ($6.3 million or -4.3%).  
/T/ 
Adjusted operating income: $1.45 billion, a $70.8 million (5.1%) increase. 
/T/ 
--  Adjusted operating income increased in Telecommunications ($81.1 million 
or 6.7% of segment adjusted operating income), Broadcasting ($12.0 
million or 35.9%) and Interactive Technologies and Communications ($4.6 
million or 46.9%).  
--  Adjusted operating income decreased in Leisure and Entertainment ($8.5 
million or -33.9%), News Media ($7.4 million or -7.0%), and at Head 
Office ($11.0 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 $0.4 million unfavourable variance in the consolidated stock-based 
compensation charge in 2013 compared with 2012. The change in the fair 
value of Quebecor stock options resulted in an 11.9 million unfavourable 
variance in the Corporation's stock-based compensation charge in 2013.  
/T/ 
Net loss attributable to shareholders: $133.9 million ($1.08 per basic share)
in 2013, compared with net income attributable to shareholders in the amount of
$161.1 million ($1.27 per basic share) in 2012, an unfavourable variance of
$295.0 million ($2.35 per basic share).  
- The unfavourable variance was due primarily to:  
/T/ 
--  $374.9 million unfavourable variance in losses and gains on valuation 
and translation of financial instruments;  
--  $95.3 million unfavourable variance related to the charge for impairment 
of goodwill and intangible assets;  
--  $67.3 million increase in amortization charge;  
--  $30.4 million increase in financial expenses;  
--  $12.6 million unfavourable variance in losses on debt refinancing.  
/T/ 
Partially offset by:  
/T/ 
--  $70.8 million increase in adjusted operating income;  
--  $23.0 million favourable variance in income from discontinued 
operations, resulting mainly from the gains on disposal of Jobboom and 
Reseau Contact.  
/T/ 
In the third quarter of 2013, Quebecor Media recorded a total $281.3 million
non-cash charge in its News Media and Leisure and Entertainment segments for
impairment of goodwill and intangible assets ($186.0 million in 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: $214.1 million in 2013 ($1.73 per
basic share) compared with $182.3 million ($1.44 per basic share) in 2012, an
increase of $31.8 million ($0.29 per basic share). 
2013/2012 fourth quarter comparison  
Revenues: $1.12 billion, a $5.7 million (0.5%) increase.  
/T/ 
--  Revenues increased in Telecommunications ($24.6 million or 3.7% of 
segment revenues).  
--  Revenues decreased in News Media ($18.2 million or -8.2%), Broadcasting 
($5.9 million or -4.6%), Interactive Technologies and Communications 
($1.5 million or -4.2%), and Leisure and Entertainment ($0.8 million or 
-0.8%).  
/T/ 
Adjusted operating income: $391.3 million, a $25.2 million (6.9%) increase. 
/T/ 
--  Adjusted operating income increased in Telecommunications ($17.6 million 
or 5.8% of segment adjusted operating income), News Media ($7.2 million 
or 19.3%), Broadcasting ($1.6 million or 10.6%), and Interactive 
Technologies and Communications ($1.4 million or 41.2%).  
--  Adjusted operating income decreased in Leisure and Entertainment ($1.1 
million or -12.8%).  
--  The change in the fair value of Quebecor Media stock options resulted in 
a $0.8 million unfavourable variance in the stock-based compensation 
charge in the fourth quarter of 2013 compared with the same period of 
2012. The change in the fair value of Quebecor stock options resulted in 
a $0.3 million unfavourable variance in the Corporation's stock-based 
compensation charge in the fourth quarter of 2013.  
/T/ 
Net income attributable to shareholders: $43.4 million ($0.35 per basic share)
in the fourth quarter of 2013 compared with $7.1 million ($0.06 per basic
share) in the same period of 2012, a favourable variance of $36.3 million
($0.29 per basic share). 
- The favourable variance was due primarily to:  
/T/ 
--  $66.5 million favourable variance in losses and gains on valuation and 
translation of financial instruments;  
--  $25.2 million increase in adjusted operating income;  
--  $8.7 million favourable variance in losses on debt refinancing;  
--  $8.0 million decrease in financial expenses.  
/T/ 
Partially offset by:  
/T/ 
--  $15.3 million unfavourable variance in charge for restructuring of 
operations, impairment of assets and other special items;  
--  $3.2 million increase in amortization charge.  
/T/ 
Adjusted income from continuing operations: $68.0 million in the fourth quarter
of 2013 ($0.55 per basic share), compared with $52.3 million ($0.42 per basic
share) in the same period of 2012, an increase of $15.7 million ($0.13 per
basic share). 
Financing activities  
The following financial operations were carried out in 2013. 
/T/ 
--  On June 17, 2013, Videotron announced the closing of the offering and 
sale of 5.625% Senior Notes, maturing on June 15, 2025, in the aggregate 
principal amount of $400.0 million, for net proceeds of $394.8 million. 
Strong demand enabled Videotron to increase the size of the placement on 
favourable terms.  
--  On July 2, 2013, Videotron used the proceeds from its placement of 
5.625% Senior Notes 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, and to settle the related hedges.  
--  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. 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.  
/T/ 
Dividends  
On March 12, 2014, the Board of Directors of Quebecor declared a quarterly
dividend of $0.025 per share on its Class A Shares and Class B Shares, payable
on April 22, 2014 to shareholders of record at the close of business on March
28, 2014. 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 2013, the Corporation purchased and cancelled 1,603,700 Class B shares for a
total cash consideration of $36.4 million (2,117,600 Class B shares for a total
cash consideration of $38.3 million in 2012). The excess of $30.2 million of
the purchase price over the carrying value of Class B shares repurchased was
recorded in reduction of retained earnings in 2013 ($30.3 million in 2012). 
Detailed financial information  
For a detailed analysis of Quebecor's fourth quarter and full year 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/en/quarterly_doc_quebecor_inc or
from the SEDAR filing service at www.sedar.com.  
Conference call for investors and Webcast  
Quebecor will hold a conference call to discuss its fourth quarter 2013 results
on March 13, 2014, at 11:00 a.m. EDT. There will be a question period reserved
for financial analysts. To access the conference call, please dial 1 877
293-8052, access code for participants 16546#. A tape recording of the call
will be available from March 13 to June 13, 2014 by dialling 1 877 293-8133,
conference number 1151195, access code for participants 16546#. 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.sedar.com and
www.quebecor.com, including in particular the "Risks and
Uncertainties" section of Quebecor's Management Discussion and
Analysis for the year ended December 31, 2013.  
The forward-looking statements in this press release reflect Quebecor's
expectations as of March 13, 2014 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 firmly based 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 people working with more than 400
organizations 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  
DEFINITIONS  
Adjusted Operating Income  
In its analysis of operating results, the Corporation defines adjusted
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 on debt refinancing, income taxes, and income
(loss) from discontinued operations. Adjusted 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 adjusted 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.  
Adjusted 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 adjusted 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 adjusted operating income may not be the same as similarly titled
measures reported by other companies.  
Table 2 below provides a reconciliation of adjusted operating income to net
(loss) income as disclosed in Quebecor's consolidated financial
statements. The consolidated financial information for the three-month periods
ended December 31, 2013 and 2012 presented in Table 2 below is drawn from the
unaudited consolidated statements of income. 
/T/ 
Table 2                                                                     
Reconciliation of the adjusted operating income measure used in this press  
release to the net (loss) income measure used in the consolidated financial 
statements                                                                  
(in millions of Canadian dollars)                                            
Three months   
Year ended December 31     ended December 31 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
2013       2012       2011       2013       2012 
---------------------------------------------------------------------------- 
Adjusted operating                                                          
 (loss) income:                                                             
  Telecommunications $  1,284.8 $  1,203.7 $  1,073.6 $    322.4 $    304.8 
  News Media               97.7      105.1      142.5       44.6       37.4 
  Broadcasting             45.4       33.4       47.3       16.7       15.1 
  Leisure and                                                                
Entertainment           16.6       25.1       38.3        7.5        8.6 
  Interactive                                                                
Technologies and                                                          
Communications          14.4        9.8        7.9        4.8        3.4 
  Head Office              (7.1)       3.9        9.2       (4.7)      (3.2)
---------------------------------------------------------------------------- 
1,451.8    1,381.0    1,318.8      391.3      366.1 
Amortization             (664.8)    (597.5)    (510.4)    (169.9)    (166.7)
Financial expenses       (376.7)    (346.3)    (331.7)     (90.9)     (98.9)
(Loss) gain on                                                              
 valuation and                                                              
 translation of                                                             
 financial                                                                  
 instruments             (238.8)     136.1       52.0      (29.2)     (95.7)
Restructuring of                                                            
 operations,                                                                
 impairment of assets                                                       
 and other special                                                          
 items                    (29.9)     (28.5)     (29.3)     (16.0)      (0.7)
Impairment of                                                               
 goodwill and                                                               
 intangible assets       (281.3)    (186.0)         -          -          - 
Loss on debt                                                                
 refinancing              (18.9)      (6.3)      (4.0)         -       (8.7)
Income taxes              (26.7)     (93.5)    (136.4)     (25.2)       8.4 
Income (loss) from                                                          
 discontinued                                                               
 operations                19.3       (3.7)      14.8        2.4        2.4 
----------------------------------------------------------------------------
Net (loss) income    $   (166.0)$    255.3 $    373.8 $     62.5 $      6.2 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
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 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 continuing operations, as
defined above, is not a measure of results that is consistent with IFRS. It
should not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. The Corporation uses adjusted
income from continuing operations to analyze trends in the performance of its
businesses. The above-listed items are excluded from the calculation of this
measure because they impair the comparability of the financial results.
Adjusted income from continuing operations is more representative for the
purpose of forecasting income. In addition, this measure is commonly used by
the investment community to analyze and compare corporate performance. 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 used in Quebecor's
consolidated financial statements.  
/T/ 
Table 3                                                                     
Reconciliation of the adjusted income from continuing operations measure    
used in this report to the net (loss) income attributable to shareholders   
measure used in the consolidated financial statements                       
(in millions of Canadian dollars)                                            
Three months   
Year ended December 31     ended December 31 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
2013       2012       2011       2013         2012 
---------------------------------------------------------------------------- 
Adjusted income                                                             
 from continuing                                                            
 operations        $    214.1 $    182.3 $    178.4 $     68.0   $     52.3 
(Loss) gain on                                                              
 valuation and                                                              
 translation of                                                             
 financial                                                                  
 instruments           (238.8)     136.1       52.0      (29.2)       (95.7)
Restructuring of                                                            
 operations.                                                                
 impairment of                                                              
 assets and other                                                           
 special items          (29.9)     (28.5)     (29.3)     (16.0)        (0.7)
Impairment of                                                               
 goodwill and                                                               
 intangible                                                                 
 assets                (281.3)    (186.0)         -          -            - 
Loss on debt                                                                
 refinancing            (18.9)      (6.3)      (4.0)         -         (8.7)
Income taxes                                                                
 related to                                                                 
 adjustments(1)          84.9       24.1       (4.0)       9.5         31.2 
Net income (loss)                                                           
 attributable to                                                            
 non-controlling                                                            
 interest related                                                           
 to adjustments         121.5       41.1       (4.8)       9.6         27.1 
Discontinued                                                                
 operations              14.5       (1.7)       8.1        1.5          1.6 
----------------------------------------------------------------------------
Net (loss) income                                                           
 attributable to                                                            
 shareholders      $   (133.9)$    161.1 $    196.4 $     43.4   $      7.1 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
(1)Includes impact of fluctuations in income tax applicable to adjusted    
items, either for statutory reasons or in connection with tax           
transactions.                                                           
/T/ 
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. 
/T/ 
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
CONSOLIDATED STATEMENTS OF INCOME                                            
(in millions of Canadian                                                    
 dollars, except for                                                        
 earnings per share data)       Three months ended      Twelve months ended 
(unaudited)                            December 31              December 31 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
2013         2012       2013          2012 
---------------------------------------------------------------------------- 
(restated)               (restated)  
Revenues                    $ 1,123.4 $    1,117.7  $ 4,277.2  $    4,248.9 
Employee costs                  242.5        259.1    1,004.8       1,025.9 
Purchase of goods and                                                       
 services                       489.6        492.5    1,820.6       1,842.0 
Amortization                    169.9        166.7      664.8         597.5 
Financial expenses               90.9         98.9      376.7         346.3 
Loss (gain) on valuation                                                    
 and translation of                                                         
 financial instruments           29.2         95.7      238.8        (136.1)
Restructuring of                                                            
 operations, impairment of                                                  
 assets and other special                                                   
 items                           16.0          0.7       29.9          28.5 
Impairment of goodwill and                                                  
 intangible assets                  -            -      281.3         186.0 
Loss on debt refinancing            -          8.7       18.9           6.3  
-------------------------------------------------
Income (loss) before income                                                 
 taxes                           85.3         (4.6)    (158.6)        352.5 
Income taxes (recovery):                                                    
  Current                        10.1         20.8       95.4          57.0 
  Deferred                       15.1        (29.2)     (68.7)         36.5  
------------------------------------------------- 
25.2         (8.4)      26.7          93.5  
------------------------------------------------- 
Income (loss) from                                                          
 continuing operations           60.1          3.8     (185.3)        259.0 
Income (loss) from                                                          
 discontinued operations          2.4          2.4       19.3          (3.7) 
-------------------------------------------------
Net income (loss)           $    62.5 $        6.2  $  (166.0) $      255.3  
------------------------------------------------- 
-------------------------------------------------
Income (loss) from                                                          
 continuing operations                                                      
 attributable to                                                            
  Shareholders              $    41.9 $        5.5  $  (148.4) $      162.8 
  Non-controlling interests      18.2         (1.7)     (36.9)         96.2  
------------------------------------------------- 
-------------------------------------------------
Net income (loss)                                                           
 attributable to                                                            
  Shareholders              $    43.4 $        7.1  $  (133.9) $      161.1 
  Non-controlling interests      19.1         (0.9)     (32.1)         94.2  
------------------------------------------------- 
-------------------------------------------------
Earnings per share                                                          
 attributable to                                                            
 shareholders                                                               
  Basic                                                                      
From continuing                                                          
operations             $    0.34 $       0.04  $   (1.20) $       1.29  
From discontinued                                                        
operations                  0.01         0.02       0.12         (0.02) 
Net income (loss)            0.35         0.06      (1.08)         1.27 
  Diluted                                                                    
From continuing                                                          
operations                  0.28         0.03      (1.20)         1.24  
From discontinued                                                        
operations                  0.01         0.02       0.12         (0.02) 
Net income (loss)            0.29         0.05      (1.08)         1.22  
------------------------------------------------- 
-------------------------------------------------
Weighted average number of                                                  
 shares outstanding (in                                                     
 millions)                      123.5        125.4      124.0         126.4 
Weighted average number of                                                  
 diluted shares (in                                                         
 millions)                      144.7        148.6      124.0         132.2  
------------------------------------------------- 
------------------------------------------------- 
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME                              
(in millions of Canadian                                                    
 dollars)                        Three months ended     Twelve months ended 
(unaudited)                             December 31             December 31 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
2013         2012       2013         2012 
---------------------------------------------------------------------------- 
(restated)              (restated)  
Net income (loss)            $    62.5  $       6.2  $  (166.0) $     255.3 
Other comprehensive income                                                  
 (loss):                                                                    
  Items that may be                                                          
reclassified to income:                                                   
Gain (loss) on                                                           
translation of net                                                      
investments in foreign                                                  
operations                    2.1          2.3        4.4         (1.4) 
Cash flow hedges:                                                        
(Loss) gain on                                                         
valuation of                                                          
derivative financial                                                  
instruments                (5.8)         1.9      (45.1)        33.1  
Deferred income taxes       (2.5)         1.5       (1.2)         2.9 
  Items that will not be                                                     
reclassified to income:                                                   
Defined benefit plans:                                                   
Re-measurement gain                                                    
(loss)                     22.4        (18.5)     141.4        (18.5) 
Deferred income taxes       (5.5)         4.9      (37.5)         4.9 
  Reclassification to                                                        
income:                                                                   
Gain related to cash                                                     
flow hedges                     -        (12.0)     (14.5)       (15.3) 
Deferred income taxes            -          1.7        1.1          0.5  
------------------------------------------------ 
10.7        (18.2)      48.6          6.2  
------------------------------------------------
Comprehensive income (loss)  $    73.2  $     (12.0) $  (117.4) $     261.5  
------------------------------------------------ 
------------------------------------------------
Comprehensive income (loss)                                                 
 attributable to                                                            
  Shareholders               $    48.5  $      (5.2) $  (106.7) $     162.2 
  Non-controlling interests       24.7         (6.8)     (10.7)        99.3  
------------------------------------------------ 
------------------------------------------------ 
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
SEGMENTED INFORMATION                                                        
(in millions of Canadian dollars)                                           
(unaudited)                                                                 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Three months ended December 31, 2013
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Leisure 
and 
Telecommu-        News      Broad-      Enter-                               nications       Media     casting    tainment
---------------------------------------------------------------------------- 
Revenues                     $     693.2   $   204.5   $   123.7   $    93.7
Employee costs                      94.5        57.1        32.7        15.1
Purchase of goods and                                                       
 services                          276.3       102.8        74.3        71.1
----------------------------------------------------------------------------
Adjusted operating                                                          
 income(1)                         322.4        44.6        16.7         7.5 
Amortization                                                                
Financial expenses                                                          
Loss on valuation and                                                       
 translation of financial                                                   
 instruments                                                                
Restructuring of                                                            
 operations, impairment of                                                  
 assets and other special                                                   
 items                                                                      
----------------------------------------------------------------------------
Income before income taxes                                                  
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Additions to property,                                                      
 plant and equipment         $     134.4   $     1.5   $     4.6   $     1.0
Additions to intangible                                                     
 assets                             14.9         1.5         1.3         0.6
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
SEGMENTED INFORMATION                                                        
(in millions of Canadian dollars)                                           
(unaudited)                                                                 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Three months ended December 31, 2013
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Interactive                                   
Techno-            Head                   
logies and          office                   
Communi-      and Inter-                   
cations        segments             Total
---------------------------------------------------------------------------- 
Revenues                     $        34.3   $       (26.0)   $      1,123.4
Employee costs                        20.8            22.3             242.5
Purchase of goods and                                                       
 services                              8.7           (43.6)            489.6
----------------------------------------------------------------------------
Adjusted operating                                                          
 income(1)                             4.8            (4.7)            391.3 
Amortization                                                           169.9
Financial expenses                                                      90.9
Loss on valuation and                                                       
 translation of financial                                                   
 instruments                                                            29.2
Restructuring of                                                            
 operations, impairment of                                                  
 assets and other special                                                   
 items                                                                  16.0
----------------------------------------------------------------------------
Income before income taxes                                    $         85.3
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Additions to property,                                                      
 plant and equipment         $         0.4   $         1.2    $        143.1
Additions to intangible                                                     
 assets                                0.1            (0.2)             18.2
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Three months ended December 31, 2012 
(restated)
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Leisure 
and 
Telecommu-        News      Broad-      Enter-                               nications       Media     casting    tainment
---------------------------------------------------------------------------- 
Revenues                     $     668.6   $   222.7   $   129.6   $    94.5
Employee costs                      95.5        70.8        38.5        15.1
Purchase of goods and                                                       
 services                          268.3       114.5        76.0        70.8
----------------------------------------------------------------------------
Adjusted operating                                                          
 income(1)                         304.8        37.4        15.1         8.6 
Amortization                                                                
Financial expenses                                                          
Loss on valuation and                                                       
 translation of financial                                                   
 instruments                                                                
Restructuring of                                                            
 operations, impairment of                                                  
 assets and other special                                                   
 items                                                                      
Loss on debt refinancing                                                    
----------------------------------------------------------------------------
Loss before income taxes                                                    
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Additions to property,                                                      
 plant and equipment         $     150.1   $     0.7   $     4.3   $     2.7
Additions to intangible                                                     
 assets                             32.0         2.4         1.4         0.8
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Three months ended December 31, 2012  
(restated) 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Interactive                                   
Techno-           Head                    
logies and         office                    
Communi-     and Inter-                    
cations       segments             Total 
---------------------------------------------------------------------------- 
Revenues                     $        35.8   $      (33.5)   $      1,117.7 
Employee costs                        20.5           18.7             259.1 
Purchase of goods and                                                       
 services                             11.9          (49.0)            492.5 
----------------------------------------------------------------------------
Adjusted operating                                                          
 income(1)                             3.4           (3.2)            366.1  
Amortization                                                          166.7 
Financial expenses                                                     98.9 
Loss on valuation and                                                       
 translation of financial                                                   
 instruments                                                           95.7 
Restructuring of                                                            
 operations, impairment of                                                  
 assets and other special                                                   
 items                                                                  0.7 
Loss on debt refinancing                                                8.7 
----------------------------------------------------------------------------
Loss before income taxes                                     $         (4.6)
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Additions to property,                                                      
 plant and equipment         $         1.2   $       (0.2)   $        158.8 
Additions to intangible                                                     
 assets                                  -           (0.8)             35.8 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 (1) The Chief Executive Officer uses adjusted operating income as the      
measure of profit to assess the performance of each segment. Adjusted       
operating income is referred as a non-IFRS measure and is defined as net    
income (loss) 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 on debt refinancing, income taxes and  
income (loss) from discontinued operations.                                  
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
SEGMENTED INFORMATION (continued)                                           
(in millions of Canadian dollars)                                           
(unaudited)                                                                 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Twelve months ended December 31, 2013
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Leisure 
and 
Telecommu-        News    Broad-      Enter-                                 nications       Media   casting    tainment
---------------------------------------------------------------------------- 
Revenues                     $     2,711.8   $   784.2 $   458.9   $   298.9
Employee costs                       370.5       266.0     141.6        58.9
Purchase of goods and                                                       
 services                          1,056.5       420.5     271.9       223.4
----------------------------------------------------------------------------
Adjusted operating                                                          
 income(1)                         1,284.8        97.7      45.4        16.6 
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         $       546.8   $    10.0 $    21.7   $     3.0
Additions to intangible                                                     
 assets                               51.6         7.4       3.1         4.4
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
SEGMENTED INFORMATION (continued)                                           
(in millions of Canadian dollars)                                           
(unaudited)                                                                 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Twelve months ended December 31, 2013 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Interactive                                   
Techno-            Head                   
logies and          office                   
Communi-      and Inter-                   
cations        segments            Total 
---------------------------------------------------------------------------- 
Revenues                     $       139.2   $      (115.8)   $     4,277.2 
Employee costs                        91.2            76.6          1,004.8 
Purchase of goods and                                                       
 services                             33.6          (185.3)         1,820.6 
----------------------------------------------------------------------------
Adjusted operating                                                          
 income(1)                            14.4            (7.1)         1,451.8  
Amortization                                                          664.8 
Financial expenses                                                    376.7 
Loss on valuation and                                                       
 translation of financial                                                   
 instruments                                                          238.8 
Restructuring of                                                            
 operations, impairment of                                                  
 assets and other special                                                   
 items                                                                 29.9 
Impairment of goodwill and                                                  
 intangible assets                                                    281.3 
Loss on debt refinancing                                               18.9 
----------------------------------------------------------------------------
Loss before income taxes                                      $      (158.6)
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Additions to property,                                                      
 plant and equipment         $         1.7   $         2.7    $       585.9 
Additions to intangible                                                     
 assets                                0.2            (0.6)            66.1 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
/T/ 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Twelve months ended December 31, 2012 
(restated)
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Leisure 
and 
Telecommu-        News      Broad-      Enter-                               nications       Media     casting    tainment
---------------------------------------------------------------------------- 
Revenues                  $      2,597.8   $   875.5   $   457.6   $   311.6
Employee costs                     359.3       312.7       153.8        58.2
Purchase of goods and                                                       
 services                        1,034.8       457.7       270.4       228.3
----------------------------------------------------------------------------
Adjusted operating                                                          
 income(1)                       1,203.7       105.1        33.4        25.1 
Amortization                                                                
Financial expenses                                                          
Gain on valuation and                                                       
 translation of financial                                                   
 instruments                                                                
Restructuring of                                                            
 operations, impairment of                                                  
 assets and other special                                                   
 items                                                                      
Impairment of goodwill and                                                  
 intangible assets                                                          
Loss on debt refinancing                                                    
----------------------------------------------------------------------------
Income before income taxes                                                  
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Additions to property,                                                      
 plant and equipment      $        669.5   $     5.7   $    22.2   $     6.4
Additions to intangible                                                     
 assets                             75.9        11.6         3.6         5.0
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Twelve months ended December 31, 2012  
(restated) 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Interactive                                   
Techno-             Head                  
logies and           office                  
Communi-       and Inter-                  
cations         segments           Total 
---------------------------------------------------------------------------- 
Revenues                     $       145.5   $       (139.1)   $    4,248.9 
Employee costs                        89.3             52.6         1,025.9 
Purchase of goods and                                                       
 services                             46.4           (195.6)        1,842.0 
----------------------------------------------------------------------------
Adjusted operating                                                          
 income(1)                             9.8              3.9         1,381.0  
Amortization                                                          597.5 
Financial expenses                                                    346.3 
Gain on valuation and                                                       
 translation of financial                                                   
 instruments                                                         (136.1)
Restructuring of                                                            
 operations, impairment of                                                  
 assets and other special                                              28.5 
 items                                                                      
Impairment of goodwill and                                                  
 intangible assets                                                    186.0 
Loss on debt refinancing                                                6.3 
----------------------------------------------------------------------------
Income before income taxes                                     $      352.5 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Additions to property,                                                      
 plant and equipment         $         4.2   $          1.9    $      709.9 
Additions to intangible                                                     
 assets                                  -             (2.2)           93.9 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) The Chief Executive Officer uses adjusted operating income as the       
measure of profit to assess the performance of each segment. Adjusted       
operating income is referred as a non-IFRS measure and is defined as net    
income (loss) 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 on debt refinancing, income taxes and  
income (loss) from discontinued operations.                                  
/T/ 
/T/ 
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
CONSOLIDATED STATEMENTS OF EQUITY                                            
(in millions of Canadian dollars)                                           
(unaudited)                                                                 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Equity attributable to shareholders  
------------------------------------------------------------ 
Equity             Accumulated  
component              other com-  
Capital Contributed of convertible  Retained    prehensive  
stock     surplus     debentures  earnings income (loss) 
---------------------------------------------------------------------------- 
Balance as of                                                               
 December 31,                                                               
 2011,as                                                                    
 previously                                                                 
 reported         $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             -           -              -     161.1             - 
Other                                                                       
 comprehensive                                                              
 income                -           -              -         -           1.1 
Issuance of                                                                 
 shares of a                                                                
 subsidiary          3.6         1.5              -         -             - 
Repurchase of                                                               
 Class B Shares     (8.0)          -              -     (30.3)            - 
Acquisition of                                                              
 non-controlling                                                            
 interests             -        (0.1)             -    (619.2)        (10.4)
Issuance of                                                                 
 convertible                                                                
 debentures            -           -          398.3         -             - 
Dividends              -           -              -     (12.6)            - 
----------------------------------------------------------------------------
Balance as of                                                               
 December 31,                                                               
 2012              335.1         2.3          398.3     624.6         (50.3)
Net loss               -           -              -    (133.9)            - 
Other                                                                       
 comprehensive                                                              
 income                -           -              -         -          27.2 
Repurchase of                                                               
 Class B Shares     (6.2)          -              -     (30.2)            - 
Dividends              -           -              -     (12.4)            - 
Business                                                                    
 acquisition           -           -              -         -             - 
----------------------------------------------------------------------------
Balance as of                                                               
 December 31,                                                               
 2013             $328.9   $     2.3   $      398.3  $  448.1   $     (23.1)
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
QUEBECOR INC. AND ITS SUBSIDIARIES                   
CONSOLIDATED STATEMENTS OF EQUITY                     
(in millions of Canadian dollars)                    
(unaudited)                                          
-----------------------------------------------------
----------------------------------------------------- 
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                       94.2          255.3 
Other                                                
 comprehensive                                       
 income                           5.1            6.2 
Issuance of                                          
 shares of a                                         
 subsidiary                         -            5.1 
Repurchase of                                        
 Class B Shares                     -          (38.3)
Acquisition of                                       
 non-controlling                                     
 interests                     (870.3)      (1,500.0)
Issuance of                                          
 convertible                                         
 debentures                         -          398.3 
Dividends                       (40.6)         (53.2)
-----------------------------------------------------
Balance as of                                        
 December 31,                                        
 2012                           631.3        1,941.3 
Net loss                        (32.1)        (166.0)
Other                                                
 comprehensive                                       
 income                          21.4           48.6 
Repurchase of                                        
 Class B Shares                     -          (36.4)
Dividends                       (25.0)         (37.4)
Business                                             
 acquisition                      0.3            0.3 
-----------------------------------------------------
Balance as of                                        
 December 31,                                        
 2013                $          595.9    $   1,750.4 
-----------------------------------------------------
----------------------------------------------------- 
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
CONSOLIDATED STATEMENTS OF CASH FLOWS                                        
(in millions of Canadian                                                    
 dollars)                        Three months ended     Twelve months ended 
(unaudited)                             December 31             December 31 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
2013         2012       2013         2012 
---------------------------------------------------------------------------- 
(restated)              (restated) 
Cash flows related to                                                       
 operating activities                                                       
  Income (loss) from                                                         
continuing operations     $    60.1  $       3.8  $  (185.3) $     259.0 
  Adjustments for:                                                           
Amortization of                                                          
property, plant and                                                     
equipment                   136.3        128.3      523.4        458.9  
Amortization of                                                          
intangible assets            33.6         38.4      141.4        138.6  
Loss (gain) on                                                           
valuation and                                                           
translation of                                                          
financial instruments        29.2         95.7      238.8       (136.1) 
Gain on disposal of                                                      
assets                          -            -          -        (12.9) 
Impairment of assets           0.9            -        3.2          7.5  
Impairment of goodwill                                                   
and intangible assets           -            -      281.3        186.0  
Loss on debt                                                             
refinancing                     -          8.7       18.9          6.3  
Amortization of                                                          
financing costs and                                                     
long-term debt                                                          
discount                      2.9          3.6       12.0         14.5  
Deferred income taxes         15.1        (29.2)     (68.7)        36.5  
Other                         (0.5)         4.5       (0.4)         3.9  
-------------------------------------------------- 
277.6        253.8      964.6        962.2 
  Net change in non-cash                                                     
balances related to                                                       
operating activities           35.7         20.7      (50.4)       141.2  
--------------------------------------------------
Cash flows provided by                                                      
 continuing operating                                                       
 activities                      313.3        274.5      914.2      1,103.4  
--------------------------------------------------
Cash flows related to                                                       
 investing activities                                                       
  Non-controlling                                                            
interests acquisition             -     (1,000.0)         -     (1,000.0)
  Business acquisitions           (6.5)        (1.2)     (15.0)        (2.0)
  Business disposals               7.1            -       59.2          0.8 
  Additions to property,                                                     
plant and equipment          (143.1)      (158.8)    (585.9)      (709.9)
  Additions to intangible                                                    
assets                        (18.2)       (35.8)     (66.1)       (93.9)
  Proceeds from disposals                                                    
of assets                       5.1          2.3       19.5         29.4 
  Other                            1.1         (0.9)       1.7         (1.5) 
--------------------------------------------------
Cash flows used in                                                          
 continuing investing                                                       
 activities                     (154.5)    (1,194.4)    (586.6)    (1,777.1) 
--------------------------------------------------
Cash flows related to                                                       
 financing activities                                                       
  Net change in bank                                                         
indebtedness                   (0.7)        (0.2)      (0.8)        (2.9)
  Net change under                                                           
revolving facilities           (6.9)       (11.2)         -        (23.6)
  Issuance of long-term                                                      
debt, net of financing                                                    
fees                           (0.6)     1,314.2      752.6      2,136.7 
  Repayments of long-term                                                    
debt                           (6.4)      (487.5)    (723.6)    (1,236.8)
  Repayment of liability                                                     
component of                                                              
convertible debentures         (6.8)           -      (13.5)           - 
  Settlement of hedging                                                      
contracts                      (2.0)        (3.1)     (29.7)       (43.6)
  Issuance of Class B                                                        
Shares                            -            -          -          3.6 
  Repurchase of Class B                                                      
Shares                         (4.9)       (12.5)     (36.4)       (38.3)
  Dividends                       (3.1)        (3.1)     (12.4)       (12.6)
  Dividends paid to non-                                                     
controlling                                                               
shareholders                   (6.4)        (6.5)     (25.0)       (40.6)
  Other                              -         (0.3)         -         (0.3) 
--------------------------------------------------
Cash flows (used in)                                                        
 provided by continuing                                                     
 financing activities            (37.8)       789.8      (88.8)       741.6  
--------------------------------------------------
Net change in cash and                                                      
 cash equivalents from                                                      
 continuing operations           121.0       (130.1)     238.8         67.9 
Cash flows provided by                                                      
 discontinued operations           1.3          3.7        7.9         17.3 
Effect of exchange rate                                                     
 changes on cash and cash                                                   
 equivalents denominated                                                    
 in foreign currencies             0.7          0.5        1.2            - 
Cash and cash equivalents                                                   
 at beginning of period          353.6        354.6      228.7        143.5  
--------------------------------------------------
Cash and cash equivalents                                                   
 at end of period            $   476.6  $     228.7  $   476.6  $     228.7  
-------------------------------------------------- 
-------------------------------------------------- 
Cash and cash equivalents                                                   
 consist of                                                                 
  Cash                       $   207.3  $      76.0  $   207.3  $      76.0 
  Cash equivalents               269.3        152.7      269.3        152.7  
-------------------------------------------------- 
$   476.6  $     228.7  $   476.6  $     228.7  
-------------------------------------------------- 
-------------------------------------------------- 
Interest and taxes                                                          
 reflected as operating                                                     
 activities                                                                 
  Cash interest payments     $   136.9  $     137.3  $   348.4  $     305.6 
  Cash income tax payments                                                   
(net of refunds)                2.7          0.6       49.6          6.6  
-------------------------------------------------- 
-------------------------------------------------- 
/T/ 
/T/ 
QUEBECOR INC. AND ITS SUBSIDIARIES                                          
CONSOLIDATED BALANCE SHEETS                                                  
(in millions of Canadian dollars)                                           
(unaudited)                                     December 31     December 31 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
2013            2012 
---------------------------------------------------------------------------- 
(restated)  
Assets                                                                       
Current assets                                                              
  Cash and cash equivalents                     $     476.6     $     228.7 
  Accounts receivable                                 566.3           578.7 
  Income taxes                                         18.0            10.6 
  Inventories                                         239.4           255.5 
  Prepaid expenses                                     48.2            38.0 
  Assets held for sale                                 76.9               -  
-------------------------------- 
1,425.4         1,111.5 
Non-current assets                                                          
  Property, plant and equipment                     3,448.4         3,405.8 
  Intangible assets                                   808.8           956.7 
  Goodwill                                          3,061.5         3,371.6 
  Derivative financial instruments                    142.1            35.7 
  Deferred income taxes                                28.1            23.9 
  Other assets                                        102.1           102.6  
-------------------------------- 
7,591.0         7,896.3  
--------------------------------
Total assets                                    $   9,016.4     $   9,007.8  
-------------------------------- 
--------------------------------
Liabilities and equity                                                       
Current liabilities                                                         
  Bank indebtedness                             $       0.5     $       1.3 
  Accounts payable and accrued charges                717.7           804.5 
  Provisions                                           39.4            45.9 
  Deferred revenue                                    288.8           289.0 
  Income taxes                                         89.2            33.9 
  Derivative financial instruments                    116.2            28.5 
  Current portion of long-term debt                   101.2            22.2 
  Liabilities held for sale                             9.0               -  
-------------------------------- 
1,362.0         1,225.3 
Non-current liabilities                                                     
  Long-term debt                                    4,975.3         4,507.8 
  Derivative financial instruments                     77.3           270.1 
  Other liabilities                                   278.7           469.2 
  Deferred income taxes                               572.7           594.1  
-------------------------------- 
5,904.0         5,841.2 
Equity                                                                      
  Capital stock                                       328.9           335.1 
  Contributed surplus                                   2.3             2.3 
  Equity component of convertible debentures          398.3           398.3 
  Retained earnings                                   448.1           624.6 
  Accumulated other comprehensive loss                (23.1)          (50.3) 
--------------------------------
  Equity attributable to shareholders               1,154.5         1,310.0 
  Non-controlling interests                           595.9           631.3  
-------------------------------- 
1,750.4         1,941.3  
--------------------------------
Total liabilities and equity                    $   9,016.4     $   9,007.8  
-------------------------------- 
-------------------------------- 
/T/ 
-30-
FOR FURTHER INFORMATION PLEASE CONTACT: 
Jean-Francois Pruneau
Senior Vice President and Chief Financial Officer
Quebecor Inc. and Quebecor Media Inc.
jean-francois.pruneau@quebecor.com
or
Martin Tremblay
Vice President, Public Affairs
Quebecor Media Inc.
martin.tremblay@quebecor.com 
INDUSTRY:  Media and Entertainment - Books and Publishing, Media and
Entertainment - Movies/Music Videos, Media and Entertainment - Television 
SUBJECT:  ERN 
-0-
-0- Mar/13/2014 10:00 GMT
 
 
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