<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the months of JULY, AUGUST AND SEPTEMBER 1998
---------------------------------------------------------
QUEBECOR PRINTING INC.
- ---------------------------------------------------------------------------
(Translation of Registrant's Name into English)
612 Saint-Jacques Street, Montreal, Quebec, H3C 4M8
- ---------------------------------------------------------------------------
(Address of Principal Executive Office)
(Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F)
Form 20-F Form 40-F X
----- -----
(Indicate by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.)
Yes No X
----- -----
PAGE 1 OF 8
<PAGE>
INTERIM FINANCIAL STATEMENTS
QUEBECOR PRINTING INC.
FILED IN THIS FORM 6-K
THIRD QUARTER OF 1998
PAGE 2 OF 8
<PAGE>
October 23, 1998 25/98
FOR IMMEDIATE RELEASE Page 1 of 2
QUEBECOR PRINTING'S THIRD QUARTER EARNINGS PER SHARE UP 26%
MONTREAL - Quebecor Printing Inc. announced today third quarter 1998 net income
available for holders of equity shares of US $44 million, an increase from US
$35 million for the same period in 1997. After preferred share dividends,
earnings per share increased 26% to US $0.38 from US $0.30 in 1997. Revenues
increased 11% to US $957 million, compared to US $867 million in 1997.
For the nine months ended September 30, 1998, net income available for holders
of equity shares rose to US $98 million from US $83 million last year. After
preferred share dividends, earnings per share increased 18% to US $0.85 from US
$0.72 in 1997. Revenues for the period were US $2.73 billion, up 10% from US
$2.49 billion last year.
The overall increase for the quarter was due to the strong performances of the
US magazine, catalog and retail groups, the Canadian East group as well as from
excellent results by the French plants and the recently acquired Swedish
printer, TINA.
Charles G. Cavell, President and Chief Executive Officer said, "I am pleased to
see the realization of significant earnings from our operations. Our results are
strong despite the financial erosion of certain plants still undergoing
retooling. While most of our sectors are already performing well, the combined
effects of the retooled plants returning to their normal operating levels, the
addition of accretive acquisitions such as Swedish printer TINA, a global
procurement policy and, above all, a focus on core printing businesses, I
believe, augur well for the future."
The Board of Directors declared a dividend of US $0.06 per share on the Multiple
Voting Shares and Subordinate Voting Shares. This dividend is payable on
December 1, 1998 to shareholders of record at the close of business on November
10, 1998. The Board of Directors also declared a dividend of CDN $0.3125 per
share on Series 2 Preferred Shares. This dividend is payable on December 1, 1998
to shareholders of record at the close of business on November 10, 1998.
Quebecor Printing Inc. (NYSE:PRW; ME:IQI; TSE:IQI), a diversified global
commercial printing company, is the largest commercial printer in Canada and one
of the largest in the United States, Europe and South America. The Company is a
market leader in most of its major product categories which include magazines,
inserts and circulars, books, catalogs, specialty printing, related services,
CD-ROM mastering and replicating, directories as well as bonds and banknotes.
The Company has over 28,000 employees working in more than 115 printing and
related facilities in the United States, Canada, France, the United Kingdom,
Spain, Germany, Sweden, Finland, Chile, Argentina, Peru, Colombia, Mexico and
India.
-30-
FOR MORE INFORMATION:
Guy Turgeon John Paul Macdonald
Vice President and Chief Financial Officer Director Corporate Communications
(800) 567-7070 (800) 567-7070
(514) 954-0101 (514) 954-0101
<PAGE>
QUEBECOR PRINTING INC.
October 23, 1998 Page 2 of 2
FOR IMMEDIATE RELEASE
<TABLE>
<CAPTION>
(In millions of US dollars, except per share data ) 3 M O N T H S 9 M O N T H S
1998 1997 CHANGE 1998 1997 CHANGE
------------------------------------- ----------------------------------
<S> <C> <C> <C> <C> <C> <C>
SEGMENTED INFORMATION
REVENUES
United States .......................................... 543.2 518.3 4.8% 1 583.6 1 461.5 8.4%
Canada.................................................. 191.4 197.7 (3.2%) 589.6 570.2 3.4%
Europe ................................................. 207.2 137.7 50.5% 504.9 440.8 14.6%
International........................................... 15.4 12.9 51.1 17.5
OPERATING INCOME
United States .......................................... 51.9 41.5 25.1% 122.5 101.6 20.7%
Canada.................................................. 14.2 16.3 (12.6%) 42.9 46.9 (8.6%)
Europe ................................................. 18.3 13.3 37.1% 34.2 28.4 20.2%
International........................................... 1.1 1.3 4.8 2.2
OPERATING MARGIN
United States .......................................... 9.6% 8.0% 7.7% 6.9%
Canada.................................................. 7.4% 8.2% 7.3% 8.2%
Europe ................................................. 8.8% 9.7% 6.8% 6.4%
International........................................... 7.0% 10.0% 9.5% 12.4%
CONSOLIDATED RESULTS
Revenues ............................................... 957.2 866.6 10.5% 2 729.2 2 490.0 9.6 %
Operating income before depreciation & amortization 147.2 125.4 17.4% 379.9 336.0 13.1 %
Operating income........................................ 85.5 72.4 18.1% 204.4 179.1 14.2 %
Net Income.............................................. 46.5 34.8 33.4% 106.1 82.9 28.0 %
Net Income available for holders of equity shares....... 44.0 34.8 26.3% 98.4 82.9 18.7 %
INCOME AS % OF REVENUES
Operating income before depreciation & amortization..... 15.4% 14.5% 13.9% 13.5%
Operating income........................................ 8.9% 8.4% 7.5% 7.2%
PER SHARE DATA ($ US)
Cash flow from operations .............................. $1.09 $0.85 $2.66 $2.29
Net Income.............................................. $0.38 $0.30 $0.85 $0.72
PER SHARE DATA ($ CDN) *
Cash flow from operations .............................. $1.66 $1.16 $3.92 $3.15
Net Income.............................................. $0.57 $0.42 $1.25 $0.99
REVENUES BY PRODUCT SEGMENT (%)
Magazines............................................... 29.6% 26.9% 29.2% 28.3%
Inserts and circulars................................... 20.4% 20.3% 19.7% 19.3%
Catalogs................................................ 16.1% 15.2% 16.0% 14.4%
Books .................................................. 14.1% 15.8% 13.9% 15.7%
Specialty Printing...................................... 10.2% 11.1% 10.4% 10.8%
Directories............................................. 3.7% 4.0% 4.5% 4.6%
Related Services and CD-ROM............................ 4.2% 4.9% 4.4% 4.9%
Checks, Bonds and Banknotes ............................ 1.7% 1.8% 1.9% 2.0%
</TABLE>
* For reference only - subject to fluctuations of the exchange rate.
<PAGE>
QUEBECOR PRINTING INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS OF US DOLLARS)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
SEPTEMBER 30 December 31 September 30
1998 1997 1997
(UNAUDITED) (audited) (unaudited)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Current assets :
Cash $ 1,917 $ 380 $ 2,030
Trade receivables 678,512 683,840 606,712
Inventories 262,930 253,228 253,540
Prepaid expenses 26,460 20,907 27,541
- ------------------------------------------------------------------------------------------------------------------------
969,819 958,355 889,823
Fixed assets 3,180,161 2,887,510 2,734,170
less accumulated depreciation 987,460 843,131 794,465
- ------------------------------------------------------------------------------------------------------------------------
2,192,701 2,044,379 1,939,705
Goodwill 597,742 383,801 339,525
Other assets 97,435 89,003 91,995
- ------------------------------------------------------------------------------------------------------------------------
$ 3,857,697 $ 3,475,538 $ 3,261,048
- ------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities :
Bank indebtedness $ 16,196 $ 18,984 $ 14,852
Trade payables and accrued liabilities 561,796 635,050 531,927
Income and other taxes 25,412 32,993 29,658
Current portion of long-term debt
and convertible debentures 43,813 52,019 39,930
- ------------------------------------------------------------------------------------------------------------------------
647,217 739,046 616,367
Long-term debt 1,254,126 913,269 1,037,791
Other liabilities 123,602 114,065 118,445
Deferred income taxes 233,037 195,005 195,785
Convertible debentures 62,591 60,021 75,238
Non-controlling interest 16,363 17,792 18,737
Shareholders' equity :
Capital stock 897,656 896,001 683,503
Contributed surplus 88,737 88,737 88,737
Retained earnings 585,531 508,514 476,851
Translation adjustment (51,163) (56,912) (50,406)
- ------------------------------------------------------------------------------------------------------------------------
1,520,761 1,436,340 1,198,685
- ------------------------------------------------------------------------------------------------------------------------
$ 3,857,697 $ 3,475,538 $ 3,261,048
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
QUEBECOR PRINTING INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS OF US DOLLARS, EXCEPT FOR EARNINGS PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
Three months ended Nine months ended
September 30 September 30
1998 1997 1998 1997
(Unaudited) (Unaudited)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REVENUES $ 957,174 $ 866,584 $ 2,729,224 $ 2,489,994
- -------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES :
Operating costs 809,934 741,140 2,349,374 2,154,003
Depreciation and amortization 61,749 53,058 175,418 156,930
- -------------------------------------------------------------------------------------------------------------------
871,683 794,198 2,524,792 2,310,933
- -------------------------------------------------------------------------------------------------------------------
OPERATING INCOME 85,491 72,386 204,432 179,061
Financial expenses 16,063 17,324 46,475 49,459
- -------------------------------------------------------------------------------------------------------------------
69,428 55,062 157,957 129,602
Income taxes 21,871 19,250 49,757 45,231
- -------------------------------------------------------------------------------------------------------------------
47,557 35,812 108,200 84,371
Non-controlling interest 1,072 965 2,078 1,456
- -------------------------------------------------------------------------------------------------------------------
NET INCOME 46,485 34,847 106,122 82,915
Dividends on preferred shares 2,481 - 7,702 -
NET INCOME AVAILABLE FOR
HOLDERS OF EQUITY SHARES $ 44,004 $ 34,847 $ 98,420 $ 82,915
- -------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE $ 0.38 $ 0.30 $ 0.85 $ 0.72
- -------------------------------------------------------------------------------------------------------------------
AVERAGE NUMBER OF EQUITY SHARES
OUTSTANDING (IN THOUSANDS) 115,736 115,574 115,678 115,564
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
QUEBECOR PRINTING INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(IN THOUSANDS OF US DOLLARS)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
Nine months ended
September 30
1998 1997
(Unaudited)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash provided by (used for):
OPERATIONS:
Net income $ 106,122 $ 82,915
Items not involving cash:
Depreciation and amortization 175,418 156,930
Deferred income taxes 30,903 18,671
Non-controlling interest 2,078 1,456
Other 1,300 4,224
- -------------------------------------------------------------------------------------------------------------------
315,821 264,196
Changes in non-cash operating working capital (83,583) (85,844)
- -------------------------------------------------------------------------------------------------------------------
232,238 178,352
- -------------------------------------------------------------------------------------------------------------------
FINANCING:
Net proceeds from issuance of capital stock 1,655 480
Net increase of long-term debt 285,997 242,007
Dividends on equity shares (20,828) (12,713)
Dividends paid to preferred shareholders (8,277) -
Dividends paid to non-controlling shareholders (1,467) (1,031)
Translation adjusment (1,638) (4,162)
- -------------------------------------------------------------------------------------------------------------------
255,442 224,581
- -------------------------------------------------------------------------------------------------------------------
INVESTMENTS:
Business acquisitions, net of cash position (242,645) (185,399)
Additions to fixed assets (243,015) (223,107)
Increase in other assets (16,010) (11,296)
Other 18,315 3,241
- -------------------------------------------------------------------------------------------------------------------
(483,355) (416,561)
- -------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH POSITION 4,325 (13,628)
Cash position at beginning (18,604) 806
- -------------------------------------------------------------------------------------------------------------------
CASH POSITION AT END $ (14,279) $ (12,822)
- -------------------------------------------------------------------------------------------------------------------
REPRESENTED BY :
Cash $ 1,917 $ 2,030
Bank indebtedness (16,196) (14,852)
- -------------------------------------------------------------------------------------------------------------------
$ (14,279) $ (12,822)
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
QUEBECOR PRINTING INC.
By: (s) PHILIPPE MONTEL
-----------------------------------------
Name: Philippe Montel
Title: Vice President, Legal Affairs
and Secretary
Date: OCTOBER 23, 1998
PAGE 8 OF 8
