This measure is used by management and the Board of Directors to evaluate the Corporation's consolidated results and the results of its business sectors. Measurements such as operating income (loss) are also commonly used by the investment community to analyze and compare the performance of companies in the industries in which the Corporation is active. The Corporation's definition of operating income (loss) may not be identical to similarly titled measures reported by other companies.
Forward-looking Statements
The statements in this news release that are not historical facts may be forward-looking statements and are subject to important known and unknown risks, uncertainties and assumptions which could cause the Corporation's actual results for future periods to differ materially from those set forth in the forward-looking statements. Forward-looking statements generally can be identified by the use of the conditional, the use of forward-looking terminology such as "propose," "will," "expect," "may," "anticipate," "intend," "estimate," "plan," "foresee," "believe" or the negative of these terms or variations of them or similar terminology. Certain factors that may cause actual results to differ from current expectations include seasonality, operational risks (including pricing actions by competitors), programming content and production cost risks, credit risk, government regulation risks, governmental assistance risks, changes in economic conditions, fragmentation of the media landscape and labour relations. Investors and others are cautioned that the foregoing list of factors that may affect future results is not exhaustive and that undue reliance should not be placed on any forward-looking statements. For more information on the risks, uncertainties and assumptions that could cause the Corporation's actual results to differ from current expectations please refer to the Corporation's public filings available at www.sedar.com and http://groupetva.ca including, in particular, the "Risks and Uncertainties" section of the Corporation's annual Management's Discussion and Analysis for the year ended December 31, 2012.
The forward-looking statements in this news release reflect the Corporation's expectations as of February 28, 2013, and are subject to change after this date. The Corporation expressly disclaims any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by the applicable securities laws.
TVA Group
TVA Group Inc., a subsidiary of Quebecor Media Inc., is an integrated communications company involved in the creation, production, broadcast and distribution of audiovisual products, and in magazine publishing. TVA Group Inc. is the largest broadcaster of French-language entertainment, information and public affairs programming and publisher of French-language magazines in North America, and one of the largest private-sector producers of French-language content in North America. The Corporation's Class B shares are listed on the Toronto Stock Exchange under the ticker symbol TVA.B.
The audited annual consolidated financial statements with notes and the annual Management's Discussion and Analysis can be consulted on the Corporation's website at http://groupetva.ca
TVA GROUP INC.Consolidated Statements of Income (Loss)(unaudited)(in thousand of dollars, except per share amounts)-------------------------------------------------------------------------------------------------------------------------------------------------------- Three-month periods Years ended ended December 31 December 31---------------------------------------------------------------------------- 2012 2011 2012 2011----------------------------------------------------------------------------Revenues $ 127,004 $ 131,636 $ 457,366 $ 445,495Purchase of goods and services 67,821 69,098 253,092 242,935Employee costs 38,217 41,881 158,717 152,036Amortization of property, plant and equipment and intangible assets 4,970 4,909 20,342 17,437Financial expenses 1,304 1,570 5,465 5,947Impairment of goodwill - - 32,200 -Gain on disposal of businesses - - (12,881) -Operational restructuring costs, impairmentof assets and other costs - 1,032 117 1,665----------------------------------------------------------------------------Income before income taxes and share of income of associated corporations 14,692 13,146 314 25,475Income taxes 3,407 4,264 5,449 9,613After-tax share of loss (income) of associated corporations 1,859 (289) 3,391 (574)----------------------------------------------------------------------------Net income (loss) $ 9,426 $ 9,171 $ (8,526) $ 16,436--------------------------------------------------------------------------------------------------------------------------------------------------------Net income (loss) attributable to:Shareholders $ 9,426 $ 11,468 $ (4,112) $ 25,603Non-controlling interest - (2,297) (4,414) (9,167)--------------------------------------------------------------------------------------------------------------------------------------------------------Basic and diluted earnings (loss) per share attributable to shareholders $ 0.40 $ 0.48 $ (0.17) $ 1.08--------------------------------------------------------------------------------------------------------------------------------------------------------TVA GROUP INC.Consolidated Statements of Comprehensive Income (Loss)(unaudited)(in thousands of dollars)-------------------------------------------------------------------------------------------------------------------------------------------------------- Three-month periods Years ended ended December 31 December 31---------------------------------------------------------------------------- 2012 2011 2012 2011----------------------------------------------------------------------------Net income (loss) $ 9,426 $ 9,171 $ (8,526) $ 16,436Other comprehensive loss: Defined benefit plans: Actuarial gains and losses and net change in asset limit and minimum funding liability (7,606) (22,725) (7,606) (23,148) Deferred income taxes 2,042 6,017 2,042 6,131---------------------------------------------------------------------------- (5,564) (16,708) (5,564) (17,017)----------------------------------------------------------------------------Comprehensive income (loss) $ 3,862 $ (7,537) $ (14,090) $ (581)--------------------------------------------------------------------------------------------------------------------------------------------------------Comprehensive income (loss) attributable to: Shareholders $ 3,862 $ (5,240) $ (9,676) $ 8,586 Non-controlling interest - (2,297) (4,414) (9,167)--------------------------------------------------------------------------------------------------------------------------------------------------------TVA GROUP INC.Consolidated Statements of Equity(unaudited)(in thousands of dollars)Years ended December 31, 2012 and 2011-------------------------------------------------------------------------------------------------------------------------------------------------------- Equity attributable to shareholders --------------------------------- Equity attributable to non- Capital Contributed Retained controlling Total stock surplus earnings interest equity----------------------------------------------------------------------------Balance as at December 31, 2010 $98,647 $- $170,784 $4,511 $273,942Net income (loss) - - 25,603 (9,167) 16,436Other comprehensive loss - - (17,017) - (17,017)Dividends - - (2,377) - (2,377)Contributions related to non- controlling interest - - - 10,045 10,045----------------------------------------------------------------------------Balance as at December 31, 2011 98,647 - 176,993 5,389 281,029Net loss - - (4,112) (4,414) (8,526)Other comprehensive loss - - (5,564) - (5,564)Contributions related to non- controlling interest - - - 3,528 3,528Disposal of interest in SUN News - 581 - (4,503) (3,922)----------------------------------------------------------------------------Balance as at December 31, 2012 $98,647 $581 $167,317 $- $266,545--------------------------------------------------------------------------------------------------------------------------------------------------------TVA GROUP INC.Consolidated Balance Sheets(unaudited)(in thousands of dollars)December 31, 2012 and 2011-------------------------------------------------------------------------------------------------------------------------------------------------------- 2012 2011----------------------------------------------------------------------------AssetsCurrent assets Cash $ 10,619 $ 1,756 Accounts receivable 115,925 117,644 Current income tax assets 3,152 4,014 Programs, broadcast and distribution rights and inventories 67,579 61,954 Prepaid expenses 2,426 2,690 Assets held for sale - 8,370---------------------------------------------------------------------------- 199,701 196,428Non-current assets Broadcast and distribution rights 33,563 35,488 Investments 17,651 12,865 Property, plant and equipment 98,494 102,007 Licences and other intangible assets 112,056 114,539 Goodwill 39,781 71,981 Deferred income taxes 725 545---------------------------------------------------------------------------- 302,270 337,425----------------------------------------------------------------------------Total assets $ 501,971 $ 533,853--------------------------------------------------------------------------------------------------------------------------------------------------------Liabilities and equityCurrent liabilities Bank overdraft $ - $ 3,980 Accounts payable and accrued liabilities 89,092 82,086 Current income tax liabilities 816 503 Broadcast and distribution rights payable 16,966 15,778 Provisions 862 1,533 Deferred revenues 6,136 6,535 Current portion of long-term debt - 17,756 Liabilities held for sale - 1,538---------------------------------------------------------------------------- 113,872 129,709Non-current liabilities Long-term debt 74,438 74,635 Other liabilities 38,499 39,696 Deferred income taxes 8,617 8,784---------------------------------------------------------------------------- 121,554 123,115Equity Capital stock 98,647 98,647 Contributed surplus 581 - Retained earnings 167,317 176,993---------------------------------------------------------------------------- Equity attributable to shareholders 266,545 275,640 Non-controlling interest - 5,389---------------------------------------------------------------------------- 266,545 281,029----------------------------------------------------------------------------Total liabilities and equity $ 501,971 $ 533,853--------------------------------------------------------------------------------------------------------------------------------------------------------TVA GROUP INC.Consolidated Statements of Cash Flows(unaudited)(in thousands of dollars)-------------------------------------------------------------------------------------------------------------------------------------------------------- Three-month periods Years ended ended December 31 December 31---------------------------------------------------------------------------- 2012 2011 2012 2011----------------------------------------------------------------------------Cash flows related to operating activities Net income (loss) $ 9,426 $ 9,171 $ (8,526) $ 16,436 Non-cash items: Amortization 5,075 4,999 20,762 17,796 Impairment of goodwill - - 32,200 - Gain on disposal of businesses - - (12,881) - Operational restructuring costs, impairment of assets and other costs - 116 - 699 After-tax share of loss (income) of associated corporations 1,859 (289) 3,391 (574) Deferred income taxes 645 2,566 1,675 5,217---------------------------------------------------------------------------- Cash flows from current operations 17,005 16,563 36,621 39,574 Net change in non-cash items (4,409) (13,799) (1,279) (14,716)----------------------------------------------------------------------------Cash flows provided by operating activities 12,596 2,764 35,342 24,858----------------------------------------------------------------------------Cash flows related to investing activities Additions to property, plant and equipment (4,162) (7,992) (21,830) (30,016) Additions to intangible assets (1,070) (2,392) (3,265) (5,830) Disposal of businesses, net of cash - - 18,663 - Cash of SUN News at the date of deconsolidation - - (430) - Net change in investments (2,181) - (3,674) 236----------------------------------------------------------------------------Cash flows used in investing activities (7,413) (10,384) (10,536) (35,610)----------------------------------------------------------------------------Cash flows related to financing activities Net change in bank overdraft - 445 (3,980) 423 Net change in revolving credit facility (246) 4,994 (17,982) 1,694 Financing costs (47) - (391) - Non-controlling interest - 2,205 3,528 10,045 Dividends paid - - - (2,377)----------------------------------------------------------------------------Cash flows (used in) provided by financing activities (293) 7,644 (18,825) 9,785----------------------------------------------------------------------------Net change in cash 4,890 24 5,981 (967)Cash at beginning of period 5,729 4,614 4,638 5,605----------------------------------------------------------------------------Cash at end of period $ 10,619 $ 4,638 $ 10,619 $ 4,638--------------------------------------------------------------------------------------------------------------------------------------------------------Cash consists of the following: Cash $ 10,619 $ 1,756 $ 10,619 $ 1,756 Cash from operations held for sale - 2,882 - 2,882---------------------------------------------------------------------------- $ 10,619 $ 4,638 $ 10,619 $ 4,638--------------------------------------------------------------------------------------------------------------------------------------------------------Supplementary information Interests paid $ 2,236 $ 2,449 $ 5,024 $ 5,431 Net income taxes paid 607 318 2,578 974 Net change in additions to property, plant and equipment and intangible assets funded by accounts payable and accrued liabilities 1,184 1,013 (966) (546)--------------------------------------------------------------------------------------------------------------------------------------------------------TVA GROUP INC.Segmented information(unaudited)(in thousands of dollars)The following tables set operating income and assets information:-------------------------------------------------------------------------------------------------------------------------------------------------------- Three-month periods Years ended ended December 31 December 31---------------------------------------------------------------------------- 2012 2011 2012 2011----------------------------------------------------------------------------Revenues Television $ 110,477 $ 114,447 $ 394,075 $ 378,854 Publishing 17,384 18,286 67,357 70,622 Intersegment items (857) (1,097) (4,066) (3,981)---------------------------------------------------------------------------- 127,004 131,636 457,366 445,495Operating income(1) Television 19,103 18,097 40,790 39,944 Publishing 1,863 2,560 4,767 10,580---------------------------------------------------------------------------- 20,966 20,657 45,557 50,524Amortization of property, plant and equipment and intangible assets 4,970 4,909 20,342 17,437Financial expenses 1,304 1,570 5,465 5,947Impairment of goodwill - - 32,200 -Gain on disposal of businesses - - (12,881) -Operational restructuring costs, impairment of assets and other costs - 1,032 117 1,665----------------------------------------------------------------------------Income before income taxes and share of income of associated corporations $ 14,692 $ 13,146 $ 314 $ 25,475--------------------------------------------------------------------------------------------------------------------------------------------------------
The intersegment items represent the elimination of normal course business transactions between the Corporation's business segments regarding revenues.
(1) The Chief Executive Officer uses operating income as a profit measure for assessing each segment's performance. Operating income is a non- IFRS measure and is defined as net income before amortization of property, plant and equipment and intangible assets, financial expenses, impairment of goodwill, gain on disposal of businesses, operational restructuring costs, impairment of assets and other costs, income taxes, after-tax share of loss (income) of associated corporations and net loss attributable to non-controlling interest.-------------------------------------------------------------------------------------------------------------------------------------------------------- December 31, December 31, 2012 2011----------------------------------------------------------------------------Total assets Television $ 448,529 $ 449,943 Publishing 53,442 83,910---------------------------------------------------------------------------- $ 501,971 $ 533,853--------------------------------------------------------------------------------------------------------------------------------------------------------Goodwill Television $ 2,539 $ 2,539 Publishing 37,242 69,442---------------------------------------------------------------------------- $ 39,781 $ 71,981--------------------------------------------------------------------------------------------------------------------------------------------------------
Contacts:
Denis Rozon, CPA, CA
Vice-President and Chief Financial Officer
(514) 598-2808
