Second quarter operating highlights:
- Consolidated adjusted EBITDA1 of
$13,965,000 , a$6,599,000 favourable variance from the same quarter of 2020. $6,581,000 in adjusted EBITDA1 in the Broadcasting segment, a$3,111,000 favourable variance due to the increase in adjusted EBITDA1 at TVA Network, which posted growth in its advertising revenues, partially offset by higher negative adjusted EBITDA1 at "TVA Sports " due to the increased costs associated with sporting events broadcast by the channel, particularly theNational Hockey League ("NHL") playoffs.$3,913,000 in adjusted EBITDA1 in the Film Production & Audiovisual Services segment ("MELS"), a$3,406,000 favourable variance mainly due to increased profitability of soundstage, mobile and equipment rental activities, partially offset by the poorer performance of dubbing, subtitling and described video, as well as by the start-up of our virtual stage activities, which have not yet reached their full revenue potential.$1,758,000 in adjusted EBITDA1 in the Magazines segment, a$1,132,000 unfavourable variance stemming from a resumption of activities amid reduced government support.$1,618,000 in adjusted EBITDA1 in the Production & Distribution segment ("Incendo"), a$1,190,000 favourable variance generated primarily by the international distribution of films produced by Incendo.
___________ |
1 See definition of adjusted EBITDA below. |
"We are satisfied with the results for the second quarter of our financial year, which reflect resumption of activities in our various segments. For the second straight quarter, advertising revenues at TVA Network and our specialty channels were up over the previous quarter. Another encouraging sign of growth is that advertising revenues also rose compared with the same quarter of 2019, before the effects of the public health crisis. Our digital platforms, in particular TVA+ and TVA Nouvelles, continue to gain in popularity and thus contribute to our growth. Based on these positive factors, we can continue and increase our investments in content and continue to develop significant high-quality programming for the benefit of our viewers," said
"With a consolidated market share of 42.6%2 for the second quarter of 2021, our shows are still among the most watched in
"In the Film Production & Audiovisual Services segment, our activities fully resumed in a safe work environment adapted to the public health measures. We're very pleased to have Paramount Pictures in our studios right now filming the mega-production Transformers and some of its outdoor scenes are also showcasing the city of
"Although activity grew in the Magazines segment this quarter, the reopening took place in a context of decreased government support, in terms of both the ad hoc assistance of the
"Our Production & Distribution activities continued at Incendo, which began international distribution of its first romantic comedies produced in 2020, fuelling quarterly growth in this segment. The growing popularity of streaming platforms also enabled the segment to increase its presence on this type of platforms. Incendo is continuing its 2021 production schedule with local productions and co-productions, the most recent of which is currently starting up in
"In closing, I want to thank all our employees for their hard work and dedication to our reopening, enabling us to continue the Corporation's mission to inform and entertain Quebecers," concluded
_________ |
1 Source: Numeris – Quebec Franco, |
2 Source: Vividata, Spring 2021, Total Canada, 14+, |
Update on the COVID-19 situation
Second quarter results must be viewed in the context of the COVID-19 pandemic, which continues to have major consequences for the economic environment in
It is possible that the financial impacts of this crisis will continue to be felt in the coming quarters, including:
- significant variability in our revenues and content costs related to live broadcasts of sporting events organized by professional leagues, as they resume their activities while cancelling some events and making significant changes to formats and broadcast schedules;
- reduction in advertising revenues in markets or sectors still affected by the public health crisis, which will inevitably affect the Broadcasting and Magazines segments;
- variance in the level of activity at MELS and in the Production & Distribution segment resulting from the stoppage or a slow and complex resumption of our content production and distribution activities due to factors such as the need to comply with health precautions and physical distancing rules on the set, the closing of borders with some countries, and production insurance challenges;
- possible reduction in the publication frequency of some periodicals, which would affect revenues in the Magazines segment.
Because of the decrease in their revenues, some of the entities in the Corporation's various business segments qualified for the
Given the uncertainty surrounding the duration of the pandemic and its potential repercussions, including the possible impact of another wave, we are currently unable to predict the overall effect it will have on our operating and financial results. However, we believe that our current sound financial health, our strong balance sheet and the steps we have taken will enable us to continue to deliver positive cash flows.
Definition
Adjusted EBITDA
In its analysis of operating results, the Corporation defines adjusted EBITDA as net income (loss) before depreciation and amortization, financial expenses, operational restructuring costs and other, income taxes and share of income of associates. Adjusted EBITDA as defined above is not a measure of results that is consistent with International Financial Reporting Standards ("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. This measure should not be considered in isolation or as a substitute for other performance measures prepared in accordance with IFRS. This measure is used by management and the Board of Directors to evaluate the Corporation's consolidated results and the results of its segments. This measure eliminates the significant level of impairment, depreciation and amortization of tangible and intangible assets and is unaffected by the capital structure or investment activities of the Corporation and its segments. Adjusted EBITDA is also relevant because it is a significant component of the Corporation's annual incentive compensation programs. The Corporation's definition of adjusted EBITDA 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 and the risk of loss of key customers in the Film Production & Audiovisual Services and Production & Distribution segments), programming, content and production cost risks, credit risk, government regulation risks, government assistance risks, changes in economic conditions, fragmentation of the media landscape, risk related to the Corporation's ability to adapt to fast-paced technological change and to new delivery and storage methods, labour relation risks, and the risks related to public health emergencies, including COVID-19, as well as any emergency measures implemented by government.
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 www.groupetva.ca, including in particular the "Risks and Uncertainties" section of the Corporation's annual Management's Discussion and Analysis for the year ended
The forward-looking statements in this news release reflect the Corporation's expectations as of
The Condensed Consolidated Financial Statements as at and for the three-month and six-month periods ended
Consolidated statements of income (loss)
(unaudited)
(in thousands of Canadian dollars, except per-share amounts)
Three-month periods | Six-month periods | ||||||||
Note | 2021 | 2020 | 2021 | 2020 | |||||
Revenues | 2 | $ | 159,422 | $ | 103,855 | $ | 300,230 | $ | 240,989 |
Purchases of goods and services | 3 | 110,252 | 81,817 | 213,171 | 173,556 | ||||
Employee costs | 3 | 35,205 | 14,672 | 70,958 | 51,560 | ||||
Depreciation and amortization | 7,944 | 8,471 | 16,202 | 17,002 | |||||
Financial expenses | 4 | 705 | 665 | 1,406 | 1,335 | ||||
Operational restructuring costs and other | 5 | 435 | 1,802 | 162 | 2,104 | ||||
Income (loss) before income taxes (recovery) and share of income of associates | 4,881 | (3,572) | (1,669) | (4,568) | |||||
Income taxes (recovery) | 1,290 | (666) | (406) | (693) | |||||
Share of income of associates | (261) | (169) | (663) | (426) | |||||
Net income (loss) | $ | 3,852 | $ | (2,737) | $ | (600) | $ | (3,449) | |
Net income (loss) attributable to: | |||||||||
Shareholders | $ | 3,850 | $ | (2,744) | $ | (601) | $ | (3,467) | |
Non-controlling interest | 2 | 7 | 1 | 18 | |||||
Basic and diluted earnings (loss) per share attributable to shareholders | $ | 0.09 | $ | (0.06) | $ | (0.01) | $ | (0.08) | |
Weighted average number of outstanding shares | 43,205,535 | 43,205,535 | 43,205,535 | 43,205,535 | |||||
Weighted average number of diluted shares | 43,429,623 | 43,205,535 | 43,381,480 | 43,205,535 |
See accompanying notes to condensed consolidated financial statements.
Consolidated statements of comprehensive income (loss)
(unaudited)
(in thousands of Canadian dollars)
Three-month periods | Six-month periods | ||||||||
Note | 2021 | 2020 | 2021 | 2020 | |||||
Net income (loss) | $ | 3,852 | $ | (2,737) | $ | (600) | $ | (3,449) | |
Other comprehensive income (loss) items that will not be reclassified to income: | |||||||||
Defined benefit plans: | |||||||||
Re-measurement gain (loss) | 8 | 6,500 | (15,000) | 36,000 | (15,000) | ||||
Deferred income taxes | (1,800) | 4,000 | (9,600) | 4,000 | |||||
4,700 | (11,000) | 26,400 | (11,000) | ||||||
Comprehensive income (loss) | $ | 8,552 | $ | (13,737) | $ | 25,800 | $ | (14,449) | |
Comprehensive income (loss) attributable to: | |||||||||
Shareholders | $ | 8,550 | $ | (13,744) | $ | 25,799 | $ | (14,467) | |
Non-controlling interest | 2 | 7 | 1 | 18 | |||||
See accompanying notes to condensed consolidated financial statements.
Consolidated statements of equity
(unaudited)
(in thousands of Canadian dollars)
Equity attributable to shareholders | Equity | Total | ||||||||||
Capital | Contributed | Retained | Accumula- benefit | |||||||||
Balance as at | $ | 207,280 | $ | 581 | $ | 75,858 | $ | 5,274 | $ | 1,196 | $ | 290,189 |
Net (loss) income | – | – | (3,467) | – | 18 | (3,449) | ||||||
Other comprehensive loss | – | – | – | (11,000) | – | (11,000) | ||||||
Balance as at | 207,280 | 581 | 72,391 | (5,726) | 1,214 | 275,740 | ||||||
Net income | – | – | 35,784 | – | 6 | 35,790 | ||||||
Other comprehensive income | – | – | – | 1,089 | – | 1,089 | ||||||
Balance as at | 207,280 | 581 | 108,175 | (4,637) | 1,220 | 312,619 | ||||||
Net (loss) income | – | – | (601) | – | 1 | (600) | ||||||
Other comprehensive income | – | – | – | 26,400 | – | 26,400 | ||||||
Balance as at | $ | 207,280 | $ | 581 | $ | 107,574 | $ | 21,763 | $ | 1,221 | $ | 338,419 |
See accompanying notes to condensed consolidated financial statements.
Consolidated balance sheets
(unaudited)
(in thousands of Canadian dollars)
|
| |||||
Assets | ||||||
Current assets | ||||||
Cash | $ | 2,484 | $ | 2,838 | ||
Accounts receivable | 148,754 | 137,177 | ||||
Tax credits and government assistance receivable | 15,447 | 16,883 | ||||
Income taxes | 6,660 | 1,391 | ||||
Audiovisual content | 101,408 | 112,982 | ||||
Prepaid expenses | 6,611 | 3,217 | ||||
281,364 | 274,488 | |||||
Non-current assets | ||||||
Audiovisual content | 77,892 | 57,245 | ||||
Property, plant and equipment | 157,531 | 165,247 | ||||
Right-of-use assets | 9,421 | 10,326 | ||||
Intangible assets | 22,457 | 25,028 | ||||
21,696 | 21,696 | |||||
Deferred income taxes | 10,948 | 23,923 | ||||
Other assets | 22,311 | 11,238 | ||||
322,256 | 314,703 | |||||
Total assets | $ | 603,620 | $ | 589,191 |
Consolidated balance sheets (continued)
(unaudited)
(in thousands of Canadian dollars)
Note |
|
| ||||
Liabilities and equity | ||||||
Current liabilities | ||||||
Bank overdraft | $ | 5,544 | $ | 1,699 | ||
Accounts payable, accrued liabilities and provisions | 111,201 | 106,066 | ||||
Content rights payable | 62,672 | 62,252 | ||||
Deferred revenues | 13,051 | 14,077 | ||||
Income taxes | 852 | 8,415 | ||||
Current portion of lease liabilities | 2,671 | 3,001 | ||||
Short-term debt | 49,925 | 27,117 | ||||
245,916 | 222,627 | |||||
Non-current liabilities | ||||||
Lease liabilities | 8,147 | 9,148 | ||||
Other liabilities | 8,620 | 38,223 | ||||
Deferred income taxes | 2,518 | 6,574 | ||||
19,285 | 53,945 | |||||
Equity | ||||||
Capital stock | 6 | 207,280 | 207,280 | |||
Contributed surplus | 581 | 581 | ||||
Retained earnings | 107,574 | 108,175 | ||||
Accumulated other comprehensive income (loss) | 21,763 | (4,637) | ||||
Equity attributable to shareholders | 337,198 | 311,399 | ||||
Non-controlling interest | 1,221 | 1,220 | ||||
338,419 | 312,619 | |||||
Contingencies | 10 | |||||
Total liabilities and equity | $ | 603,620 | $ | 589,191 |
See accompanying notes to condensed consolidated financial statements.
Consolidated statements of cash flows
(unaudited)
(in thousands of Canadian dollars)
Three-month periods | Six-month periods | ||||||||
Note | 2021 | 2020 | 2021 | 2020 | |||||
Cash flows related to operating activities | |||||||||
Net income (loss) | $ | 3,852 | $ | (2,737) | $ | (600) | $ | (3,449) | |
Adjustments for: | |||||||||
Depreciation and amortization | 7,944 | 8,471 | 16,202 | 17,002 | |||||
Share of income of associates | (261) | (169) | (663) | (426) | |||||
Deferred income taxes | (557) | 318 | (681) | (1,817) | |||||
Gain on disposal of an asset | 5 | – | (253) | – | (253) | ||||
Other | 13 | (47) | (68) | (25) | |||||
10,991 | 5,583 | 14,190 | 11,032 | ||||||
Net change in non-cash balances related to operating activities | (34,838) | 22,960 | (30,600) | 33,089 | |||||
Cash flows (used in) provided by operating activities | (23,847) | 28,543 | (16,410) | 44,121 | |||||
Cash flows related to investing activities | |||||||||
Additions to property, plant and equipment | (2,999) | (1,965) | (6,736) | (6,788) | |||||
Additions to intangible assets | (497) | (488) | (1,501) | (1,521) | |||||
Business acquisitions | 5 | – | – | (606) | – | ||||
Other | – | 401 | – | 401 | |||||
Cash flows used in investing activities | (3,496) | (2,052) | (8,843) | (7,908) | |||||
Cash flows related to financing activities | |||||||||
Net change in bank overdraft | 2,292 | 458 | 3,845 | 5,874 | |||||
Net change in revolving credit facility | 25,920 | (26,134) | 22,835 | (40,866) | |||||
Repayment of lease liabilities | (749) | (867) | (1,728) | (1,723) | |||||
Other | – | – | (53) | (53) | |||||
Cash flows provided by (used in) financing activities | 27,463 | (26,543) | 24,899 | (36,768) | |||||
Net change in cash | 120 | (52) | (354) | (555) | |||||
Cash at beginning of period | 2,364 | 2,880 | 2,838 | 3,383 | |||||
Cash at end of period | $ | 2,484 | $ | 2,828 | $ | 2,484 | $ | 2,828 | |
Interest and taxes reflected as operating activities | |||||||||
Cash interest payments | $ | 383 | $ | 304 | $ | 752 | $ | 1,011 | |
Cash income tax payments (net of refunds) | 2,344 | 44 | 13,107 | 3,073 |
See accompanying notes to condensed consolidated financial statements.
Notes to condensed consolidated financial statements
Three-month and six-month periods ended
(Tabular amounts are expressed in thousands of Canadian dollars, except per share and per option amounts)
The Corporation's businesses experience significant seasonality due to, among other factors, seasonal advertising patterns, consumers' viewing, reading and listening habits, demand for production services from international and local producers, and demand for content from global broadcasters. Because the Corporation depends on the sale of advertising for a significant portion of its revenues, operating results are also sensitive to prevailing economic conditions, including changes in local, regional and national economic conditions, particularly as they may affect advertising spending.
The COVID-19 pandemic continues to have a major impact on the economic environment in
Accordingly, the results of operations for interim periods should not necessarily be considered indicative of full-year results.
Notes to condensed consolidated financial statements (continued)
Three-month and six-month periods ended
(Tabular amounts are expressed in thousands of Canadian dollars, except per share and per option amounts)
1. Basis of presentation
These consolidated financial statements were prepared in accordance with the International Financial Reporting Standards ("IFRS") issued by the
These condensed consolidated financial statements were approved by the Corporation's Board of Directors on
Certain comparative figures for the three-month and six-month periods ended
2. Revenues
Three-month periods | Six-month periods | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Advertising services | $ | 81,344 | $ | 42,729 | $ | 144,596 | $ | 104,845 |
Royalties | 35,188 | 34,637 | 70,078 | 71,030 | ||||
Rental, postproduction and distribution services and other services rendered(1) | 26,577 | 13,695 | 53,893 | 38,547 | ||||
Product sales(2) | 16,313 | 12,794 | 31,663 | 26,567 | ||||
$ | 159,422 | $ | 103,855 | $ | 300,230 | $ | 240,989 |
(1) | Revenues from rental of soundstages, mobiles, equipment and rental space amounted to |
(2) | Revenues from product sales include newsstand and subscription sales of magazines and sales of audiovisual content. |
3. Purchases of goods and services and employee costs
Three-month periods | Six-month periods | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Purchases of goods and services: | ||||||||
Rights and audiovisual content costs(1) | $ | 84,627 | $ | 61,625 | $ | 160,613 | $ | 125,378 |
Printing and distribution | 3,988 | 2,987 | 7,188 | 6,662 | ||||
Services rendered by the parent corporation: | ||||||||
- Commissions on advertising sales | 6,831 | 4,479 | 13,563 | 10,908 | ||||
- Other | 2,259 | 2,256 | 4,395 | 4,498 | ||||
Building costs | 3,588 | 3,646 | 8,183 | 7,744 | ||||
Marketing, advertising and promotion | 3,794 | 1,668 | 8,199 | 5,438 | ||||
Other | 5,165 | 5,156 | 11,030 | 12,928 | ||||
110,252 | 81,817 | 213,171 | 173,556 | |||||
Employee costs(2) | 35,205 | 14,672 | 70,958 | 51,560 | ||||
$ | 145,457 | $ | 96,489 | $ | 284,129 | $ | 225,116 |
(1) | During the first quarter of 2021, the Corporation reviewed the allocation of the value of the rights attached to the various components of its contract for |
(2) | For the three-month and six-month periods ended |
4. Financial expenses
Three-month periods | Six-month periods | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Interest on debt | $ | 228 | $ | 181 | $ | 386 | $ | 615 |
Amortization of financing costs | 13 | 13 | 26 | 35 | ||||
Interest on lease liabilities | 139 | 139 | 280 | 282 | ||||
Interest expense related to defined-benefit plans | 191 | 67 | 382 | 162 | ||||
Foreign exchange loss | 34 | 150 | 125 | 24 | ||||
Other | 100 | 115 | 207 | 217 | ||||
$ | 705 | $ | 665 | $ | 1,406 | $ | 1,335 |
5. Operational restructuring costs and other
Three-month periods | Six-month periods | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Operational restructuring costs | $ | 508 | $ | 2,097 | $ | 378 | $ | 2,250 |
Other | (73) | (295) | (216) | (146) | ||||
$ | 435 | $ | 1,802 | $ | 162 | $ | 2,104 |
Operational restructuring costs
For the three-month and six-month periods ended
Three-month periods | Six-month periods | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Broadcasting | $ | 505 | $ | 1,415 | $ | 661 | $ | 1,439 |
Film Production & Audiovisual Services | 4 | 682 | 7 | 682 | ||||
Magazines | (1) | – | (290) | 129 | ||||
$ | 508 | $ | 2,097 | $ | 378 | $ | 2,250 |
Other
For the first six months of 2021, the Corporation recorded a
During the first six months of 2021, the Corporation also reversed a
6. Capital stock
a) Authorized capital stock
An unlimited number of Class A common shares, participating, voting, without par value.
An unlimited number of Class B shares, participating, non-voting, without par value.
An unlimited number of preferred shares, non-participating, non-voting, with a par value of
b) Issued and outstanding capital stock
2021 | 2020 | |||||
4,320,000 Class A common shares | $ | 72 | $ | 72 | ||
38,885,535 Class B shares | 207,208 | 207,208 | ||||
$ | 207,280 | $ | 207,280 |
7. Stock-based compensation and other stock-based payments
a) Stock option plans
Outstanding options | ||||
Number | Weighted average | |||
As at | 795,000 | $ | 2.06 | |
Cancelled | (105,497) | 2.43 | ||
As at | 689,503 | $ | 2.00 | |
Vested options as at | 25,000 | $ | 6.85 | |
As at | 7,800 | $ | 70.29 | |
Exercised | (6,300) | 70.22 | ||
As at | 1,500 | $ | 70.56 | |
Vested options as at | 1,500 | $ | 70.56 | |
Quebecor | ||||
As at | 590,795 | $ | 30.30 | |
Cancelled | (77,343) | 29.22 | ||
As at | 513,452 | $ | 30.47 | |
Vested options as at | – | $ | – | |
During the three-month period ended
During the six-month period ended
b) Deferred stock unit ("DSU") plans
The following table shows changes in outstanding DSUs during the six-month period ended
Outstanding units | ||||
Corporation stock units | Quebecor stock units | |||
Balance as at | 156,564 | 25,472 | ||
Granted | – | 300 | ||
Redeemed | (18,122) | (3,747) | ||
Cancelled | (21,036) | (4,425) | ||
Balance as at | 117,406 | 17,600 |
During the six-month period ended
c) Deferred stock unit ("DSU") plan for directors
Outstanding units | ||||
Corporation stock units | ||||
Balance as at | 357,798 | |||
Granted | 34,580 | |||
Redeemed | (35,868) | |||
Balance as at | 356,510 |
During the three-month and six-month periods ended
d) Stock-based compensation expense
During the three-month and six-month periods ended
8. Pension plans and post-retirement benefits
The gain on remeasurement of defined benefit plans recognized on the consolidated statement of comprehensive income for the three-month period ended
The gain on remeasurement of defined benefit plans recognized on the consolidated statement of comprehensive income for the six-month period ended
9. Segmented information
The Corporation's operations consist of the following segments:
- The Broadcasting segment, which includes the operations of TVA Network, specialty services, the marketing of digital products associated with the various televisual brands, and commercial production and custom publishing services notably through its
Qolab Communications Inc. subsidiary (formerly COLAB Studio Marketing Collaboratif inc.); - The Film Production & Audiovisual Services segment, which through its subsidiaries
Mels Studios andPostproduction G.P. and Mels Dubbing Inc. provides soundstage, mobile and equipment rental services, as well as dubbing and described video, postproduction and visual effects; - The Magazines segment, which through its subsidiaries, notably
TVA Publications inc. and Les Publications Charron & Cie inc., publishes magazines in various fields including the arts, entertainment, television, fashion and decorating, and markets digital products associated with the various magazine brands; - The Production & Distribution segment, which through the companies in the Incendo group produces and distributes television shows, movies and television series for the world market.
Three-month periods | Six-month periods | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Revenues | ||||||||
Broadcasting | $ | 130,080 | $ | 86,767 | $ | 244,912 | $ | 194,828 |
Film Production & Audiovisual Services | 17,949 | 7,460 | 35,966 | 25,442 | ||||
Magazines | 11,508 | 10,037 | 22,015 | 20,330 | ||||
Production & Distribution | 5,327 | 2,869 | 7,622 | 7,622 | ||||
Intersegment items | (5,442) | (3,278) | (10,285) | (7,233) | ||||
159,422 | 103,855 | 300,230 | 240,989 | |||||
Adjusted EBITDA(1) | ||||||||
Broadcasting | 6,581 | 3,470 | 3,160 | 7,299 | ||||
Film Production & Audiovisual Services | 3,913 | 507 | 7,541 | 3,679 | ||||
Magazines | 1,758 | 2,890 | 3,521 | 3,554 | ||||
Production & Distribution | 1,618 | 428 | 1,731 | 1,095 | ||||
Intersegment items | 95 | 71 | 148 | 246 | ||||
13,965 | 7,366 | 16,101 | 15,873 | |||||
Depreciation and amortization | 7,944 | 8,471 | 16,202 | 17,002 | ||||
Financial expenses | 705 | 665 | 1,406 | 1,335 | ||||
Operational restructuring costs and other | 435 | 1,802 | 162 | 2,104 | ||||
Income (loss) before income taxes (recovery) and share of income of associates | $ | 4,881 | $ | (3,572) | $ | (1,669) | $ | (4,568) |
The above-noted intersegment items represent the elimination of normal course business transactions between the Corporation's business segments.
(1) | The Chief Executive Officer uses adjusted EBITDA as a measure of financial performance for assessing the performance of each of the Corporation's segments. Adjusted EBITDA is defined as net income (loss) before depreciation and amortization, financial expenses, operational restructuring costs and other, income taxes and share of income of associates. Adjusted EBITDA as defined above is not a measure of results that is consistent with IFRS. |
10. Contingencies
Lawsuits were brought by and against the Corporation, and against Quebecor and some of its subsidiaries, in connection with business disputes with a cable operator. At this stage in the proceedings, the management of the Corporation does not expect their outcome to have a material adverse effect on the Corporation's results or on its financial position.
SOURCE
© Canada Newswire, source