This measure is used by management and the Board of Directors to evaluate the Corporation's consolidated results and the results of its segments. 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 Information Disclaimer
The statements in this news release that are not historical facts may be forward-looking statements and are subject to important known and unknown risks, uncertainties and assumptions which could cause the 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, government assistance risks, changes in economic conditions, fragmentation of the media landscape, and labour relation risks. 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 May 7, 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.
TVA GROUP INC.Consolidated Statements of Loss and Comprehensive Loss(unaudited)(in thousands of dollars, except per share amounts)-------------------------------------------------------------------------------------------------------------------------------------------------------- Three-month periods ended March 31---------------------------------------------------------------------------- 2012 (restated, Note 2013 note 2)----------------------------------------------------------------------------Revenues 3 $ 111,070 $ 115,463Purchases of goods and services 4 75,093 81,747Employee costs 35,082 40,722Amortization of property, plant and equipment and intangible assets 5,088 5,217Financial expenses 5 1,604 1,986Operational restructuring costs, impairment of assets and other costs 6 952 117Impairment of goodwill 7 - 32,200----------------------------------------------------------------------------Loss before tax expense and share of income of associated corporations and joint ventures (6,749) (46,526)----------------------------------------------------------------------------Tax expense (2,424) (3,320)Share of loss (income) of associated corporations and joint ventures 1,563 (1,100)----------------------------------------------------------------------------Net loss and comprehensive loss $ (5,888) $ (42,106)--------------------------------------------------------------------------------------------------------------------------------------------------------Net loss and comprehensive loss attributable to: Shareholders $ (5,888) $ (39,929) Non-controlling interest - (2,177)--------------------------------------------------------------------------------------------------------------------------------------------------------Basic and diluted loss per share attributable to shareholders 8 (c) $ (0.25) $ (1.68)--------------------------------------------------------------------------------------------------------------------------------------------------------See accompanying notes to condensed consolidated financial statements.TVA GROUP INC.Consolidated Statements of Equity(unaudited)(in thousands of dollars)-------------------------------------------------------------------------------------------------------------------------------------------------------- Equity attributable to shareholders -------------------------------------------------------- Accumulated other comprehensive loss - Capital stock Contributed Retained Defined (note 8) surplus earnings benefit plans----------------------------------------------------------------------------Balance as at December 31, 2011,as previously reported $ 98,647 $ - $ 176,993 $ -Changes in accounting policies(note 2) - - 17,408 (18,323)----------------------------------------------------------------------------Balance as at December 31, 2011,as restated 98,647 - 194,401 (18,323)Net loss - - (39,929) -Contributions related to non- controlling interest (note 10) - - - -----------------------------------------------------------------------------Balance as at March 31, 2012 98,647 - 154,472 (18,323)Net income (loss) - - 33,465Other comprehensive loss - - - (2,297)Contributions related to non- controlling interest - - - -Disposal of interest in SUN News - 581 - -----------------------------------------------------------------------------Balance as at December 31, 2012 98,647 581 187,937 (20,620)Net loss - - (5,888) -----------------------------------------------------------------------------Balance as at March 31, 2013 $ 98,647 $ 581 $ 182,049 $ (20,620)-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Equity attributable to non- controlling interest Total equity------------------------------------------------Balance as at December 31, 2011,as previously reported $ 5,389 $ 281,029Changes in accounting policies(note 2) - (915)------------------------------------------------Balance as at December 31, 2011,as restated 5,389 280,114Net loss (2,177) (42,106)Contributions related to non- controlling interest (note 10) 1,764 1,764------------------------------------------------Balance as at March 31, 2012 4,976 239,772Net income (loss) (2,237) 31,228Other comprehensive loss - (2,297)Contributions related to non- controlling interest 1,764 1,764Disposal of interest in SUN News (4,503) (3,922)------------------------------------------------Balance as at December 31, 2012 - 266,545Net loss - (5,888)------------------------------------------------Balance as at March 31, 2013 $ - $ 260,657------------------------------------------------------------------------------------------------See accompanying notes to condensed consolidated financial statements.TVA GROUP INC.Consolidated Balance Sheets(unaudited)(in thousands of dollars)-------------------------------------------------------------------------------------------------------------------------------------------------------- March 31, December 31, 2013 2012 (restated, Note note 2)----------------------------------------------------------------------------AssetsCurrent assets Cash $ 3,233 $ 10,619 Accounts receivable 114,805 115,925 Income taxes 7,899 3,152 Programs, broadcast and distribution rights and inventories 58,365 67,579 Prepaid expenses 3,220 2,426---------------------------------------------------------------------------- 187,522 199,701Non-current assets Broadcast and distribution rights 6 39,480 33,563 Investments 15,289 17,651 Property, plant and equipment 99,223 98,494 Licences and other intangible assets 111,642 112,056 Goodwill 7 39,781 39,781 Deferred income taxes 881 725---------------------------------------------------------------------------- 306,296 302,270----------------------------------------------------------------------------Total assets $ 493,818 $ 501,971--------------------------------------------------------------------------------------------------------------------------------------------------------Liabilities and equityCurrent liabilities Accounts payable and accrued liabilities $ 83,307 $ 89,092 Income taxes 147 816 Broadcast and distribution rights payable 21,321 16,966 Provisions 750 862 Deferred revenues 4,325 6,136---------------------------------------------------------------------------- 109,850 113,872Non-current liabilities Long-term debt 74,743 74,438 Other liabilities 38,771 38,499 Deferred income taxes 9,797 8,617---------------------------------------------------------------------------- 123,311 121,554Equity Capital stock 8 98,647 98,647 Contributed surplus 581 581 Retained earnings 182,049 187,937 Accumulated other comprehensive loss (20,620) (20,620)---------------------------------------------------------------------------- Equity attributable to shareholders 260,657 266,545----------------------------------------------------------------------------Total liabilities and equity $ 493,818 $ 501,971--------------------------------------------------------------------------------------------------------------------------------------------------------See accompanying notes to condensed consolidated financial statements.On May 7, 2013, the Board of Directors approved the condensed consolidatedfinancial statements for the three-month periods ended March 31, 2013 and2012.TVA GROUP INC.Consolidated Statements of Cash Flows(unaudited)(in thousands of dollars)-------------------------------------------------------------------------------------------------------------------------------------------------------- Three-month periods ended March 31---------------------------------------------------------------------------- 2012 (restated, Note 2013 note 2)----------------------------------------------------------------------------Cash flows related to operating activities Net loss $ (5,888) $ (42,106) Non-cash items: Amortization 5,139 5,318 Operational restructuring costs, impairment of assets and other costs 6 387 - Impairment of goodwill 7 - 32,200 Share of loss (income) of associated corporations and joint ventures 1,563 (1,100) Deferred income taxes 1,024 18---------------------------------------------------------------------------- 2,225 (5,670) Net change in non-cash items (4,768) 7,965----------------------------------------------------------------------------Cash flows (used in) provided by operating activities (2,543) 2,295----------------------------------------------------------------------------Cash flows related to investing activities Additions to property, plant and equipment (5,312) (5,274) Additions to intangible assets (584) (566) Net change in investments 799 -----------------------------------------------------------------------------Cash flows used in investing activities (5,097) (5,840)----------------------------------------------------------------------------Cash flows related to financing activities Net change in bank overdraft - (3,698) Net change in revolving credit facility 254 5,003 Financing costs - (344) Non-controlling interest 10 - 1,764----------------------------------------------------------------------------Cash flows provided by financing activities 254 2,725----------------------------------------------------------------------------Net change in cash (7,386) (820)Cash at beginning of period 10,619 1,756----------------------------------------------------------------------------Cash at end of period $ 3,233 $ 936--------------------------------------------------------------------------------------------------------------------------------------------------------Interest and taxes reflected as operating activities Interest paid $ 81 $ 386 Income taxes paid 1,968 2,287--------------------------------------------------------------------------------------------------------------------------------------------------------See accompanying notes to condensed consolidated financial statements.TVA GROUP INC.Notes to Condensed Consolidated Financial StatementsThree-month periods ended March 31, 2013 and 2012 (unaudited)(Tabular amounts are expressed in thousands of dollars, except per share andper option amounts)--------------------------------------------------------------------------------------------------------------------------------------------------------
