<PAGE>
[LOGO]
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 JULY 23, 1998
--------------------------------------------------------
QUEBECOR PRINTING INC.
- --------------------------------------------------------------------------------
(Translation of Registrant's Name into English)
612 Saint-Jacques Street, Montreal, Quebec, Canada 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>
[LOGO]
PRESS RELEASES OF
QUEBECOR PRINTING INC.
FILED IN THIS FORM 6-K
July 23, 1998 (# 19\98)
Page 2 of 8
<PAGE>
[LOGO]
[LETTERHEAD]
July 23, 1998 19/98
FOR IMMEDIATE RELEASE Page 1 of 2
QUEBECOR PRINTING'S SECOND QUARTER EARNINGS PER SHARE UP 15% TO US $.31
MONTREAL - Quebecor Printing Inc. (NYSE:PRW; ME:IQI; TSE:IQI) announced today
second quarter 1998 earnings attributable to equity shareholders of US $36
million, an increase from US $31 million for the same period in 1997. After
preference share dividends, earnings per share increased 15% to US $.31 from US
$.27 in 1997. Revenues increased 6% to US $890 million, compared to US $837
million in 1997.
For the six months ended June 30, 1998, net income attributable to equity
shareholders rose to US $54 million from US $48 million last year. After
preference share dividends, earnings per share increased 12% to US $.47 from US
$.42 in 1997. Revenues for the period were US $1.8 billion, up 9% from US $1.6
billion last year.
US operations reported a 19% increase in operating income in part due to the
strong performance of acquisitions and of plants where retooling is complete.
Facilities still undergoing retooling had a negative effect as did the Book
Group operations, where revenues were down slightly.
Charles G. Cavell, President and Chief Executive Officer said, "Our second
quarter has been rewarding in many ways. Our acquisition of Scandinavia's
largest printer will, once completed, expand our position in Europe by 30%. In
addition, the planned benefits of our US retooling are beginning to come to
fruition as is our strategy of global procurement."
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
September 1, 1998 to shareholders of record at the close of business on August
10, 1998. The Board of Directors also declared a dividend of CDN $0.3125 per
share on Series 2 Preferance Shares. This dividend is payable on September 1,
1998 to shareholders of record at the close of business on August 10, 1998.
Quebecor Printing Inc., a diversified global commercial printing company, is the
largest commercial printer in Canada and one of the largest in the United States
and Europe. The Company is a market leader in most of its major product
categories which include magazines, inserts and circulars, books, catalogs,
specialty printing, directories, related services, CD-ROM mastering and
replicating as well as checks, bonds and banknotes. The Company has over 27,000
employees working in more than 115 printing and related facilities in the United
States, Canada, France, the United Kingdom, Spain, Germany, Chile, Argentina,
Peru, 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 3 of 8
<PAGE>
[LOGO]
[LETTERHEAD]
July 23, 1998 19/98
FOR IMMEDIATE RELEASE Page 2 of 2
(In millions of US dollars, except per share data)
<TABLE>
<CAPTION>
3 MONTHS 6 MONTHS
1998 1997 CHANGE 1998 1997 CHANGE
---------------------------------- --------------------------------
SEGMENTED INFORMATION
<S> <C> <C> <C> <C> <C> <C>
REVENUES
United States. . . . . . . . . . . . . . . . . . . . . 511.2 488.2 4.7% 1040.4 943.3 10.3%
Canada . . . . . . . . . . . . . . . . . . . . . . . . 205.4 188.3 9.1% 389.3 372.4 6.9%
Europe . . . . . . . . . . . . . . . . . . . . . . . . 153.6 157.6 (2.5%) 297.7 303.0 (1.8%)
International. . . . . . . . . . . . . . . . . . . . . 20.0 2.5 35.7 4.7
OPERATING INCOME
United States. . . . . . . . . . . . . . . . . . . . . 42.0 35.2 19.3% 70.6 60.1 17.6%
Canada . . . . . . . . . . . . . . . . . . . . . . . . 17.9 16.9 5.7% 28.7 30.6 (6.5%)
Europe . . . . . . . . . . . . . . . . . . . . . . . . 9.4 11.8 (20.5%) 15.9 15.1 5.5%
International. . . . . . . . . . . . . . . . . . . . . 2.2 0.4 3.7 0.9
OPERATING MARGIN
United States. . . . . . . . . . . . . . . . . . . . . 8.2% 7.2% 6.8% 6.4%
Canada . . . . . . . . . . . . . . . . . . . . . . . . 8.7% 9.0% 7.2% 8.2%
Europe . . . . . . . . . . . . . . . . . . . . . . . . 6.1% 7.5% 5.3% 5.0%
International. . . . . . . . . . . . . . . . . . . . . 10.8% 14.6% 10.5% 19.0%
CONSOLIDATED RESULTS
Revenues . . . . . . . . . . . . . . . . . . . . . . . 890.2 836.6 6.4% 1772.1 1623.4 9.2%
Operating income before depreciation & amortization. . 129.3 117.4 10.1% 232.6 210.5 10.5%
Operating income . . . . . . . . . . . . . . . . . . . 71.5 64.3 11.1% 118.9 106.7 11.5%
Net Income . . . . . . . . . . . . . . . . . . . . . . 38.9 31.0 25.6% 59.6 48.1 13.2%
Net Income attributable to Equity Shareholders . . . . 36.4 31.0 17.2% 54.4 48.1 13.2%
INCOME AS % OF REVENUES
Operating income before depreciation & amortization. . 14.5% 14.0% 13.1% 13.0%
Operating income . . . . . . . . . . . . . . . . . . . 8.0% 7.7% 6.7% 6.6%
PER SHARE DATA ($ US)
Cash provided by operations. . . . . . . . . . . . . . $0.88 $0.80 $1.57 $1.44
Net Income . . . . . . . . . . . . . . . . . . . . . . $0.31 $0.27 $0.47 $0.42
PER SHARE DATA ($ CDN )*
Cash provided by operations. . . . . . . . . . . . . . $1.28 $1.12 $2.26 $1.99
Net Income . . . . . . . . . . . . . . . . . . . . . . $0.46 $0.37 $0.68 $0.57
REVENUES BY PRODUCT SEGMENT (%)
Magazines. . . . . . . . . . . . . . . . . . . . . . . 29.3% 28.6% 29.0% 29.0%
Inserts and circulars. . . . . . . . . . . . . . . . . 19.0% 20.2% 19.4% 18.8%
Catalogs . . . . . . . . . . . . . . . . . . . . . . . 15.8% 12.4% 15.9% 14.0%
Books. . . . . . . . . . . . . . . . . . . . . . . . . 13.4% 15.3% 13.9% 15.7%
Specialty Printing . . . . . . . . . . . . . . . . . . 10.2% 11.1% 10.4% 10.7%
Directories. . . . . . . . . . . . . . . . . . . . . . 5.3% 5.6% 4.9% 4.9%
Related Services and CD-ROM. . . . . . . . . . . . . . 4.5% 4.7% 4.5% 4.8%
Checks, Bonds and Banknotes. . . . . . . . . . . . . . 2.5% 2.1% 2.0% 2.1%
</TABLE>
* For reference only - subject to fluctuations of the exchange rate.
Page 4 of 8
<PAGE>
QUEBECOR PRINTING INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS OF US DOLLARS)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
JUNE 30 December 31 June 30
1998 1997 1997
(UNAUDITED) (audited) (unaudited)
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Current assets :
Cash $ 1,819 $ 380 $ 1,218
Trade receivables 569,947 683,840 530,839
Inventories 244,780 253,228 214,089
Prepaid expenses 26,149 20,907 27,551
- ------------------------------------------------------------------------------------------
842,695 958,355 773,697
Fixed assets 3,035,442 2,887,510 2,637,653
less accumulated depreciation 927,122 843,131 753,188
- ------------------------------------------------------------------------------------------
2,108,320 2,044,379 1,884,465
Goodwill 379,156 383,801 335,685
Other assets 93,230 89,003 83,560
- ------------------------------------------------------------------------------------------
$ 3,423,401 $ 3,475,538 $ 3,077,407
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities :
Bank indebtedness $ 19,948 $ 18,984 $ 6,209
Trade payables and accrued liabilities 507,972 635,050 490,055
Income and other taxes 32,017 32,993 24,734
Current portion of long-term debt
and convertible debentures 40,347 52,019 37,821
- ------------------------------------------------------------------------------------------
600,284 739,046 558,819
Long-term debt 953,177 913,269 952,185
Other liabilities 119,408 114,065 122,801
Deferred income taxes 206,750 195,005 188,260
Convertible debentures 57,414 60,021 75,549
Non-controlling interest 16,869 17,792 14,519
Shareholders' equity :
Capital stock 897,000 896,001 683,499
Contributed surplus 88,737 88,737 88,737
Retained earnings 548,463 508,514 442,004
Translation adjustment (64,701) (56,912) (48,966)
- ------------------------------------------------------------------------------------------
1,469,499 1,436,340 1,165,274
- ------------------------------------------------------------------------------------------
$ 3,423,401 $ 3,475,538 $ 3,077,407
------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
</TABLE>
Page 5 of 8
<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 Six months ended
June 30 June 30
1998 1997 1998 1997
(Unaudited) (Unaudited)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REVENUES $ 890,171 $ 836,553 $ 1,772,050 $ 1,623,410
- ---------------------------------------------------------------------------------------------------------
OPERATING EXPENSES :
Operating costs 760,825 719,114 1,539,440 1,412,863
Depreciation and amortization 57,873 53,109 113,669 103,872
- ---------------------------------------------------------------------------------------------------------
818,698 772,223 1,653,109 1,516,735
- ---------------------------------------------------------------------------------------------------------
OPERATING INCOME 71,473 64,330 118,941 106,675
Financial expenses 15,264 16,047 30,412 32,135
- ---------------------------------------------------------------------------------------------------------
56,209 48,283 88,529 74,540
Income taxes 16,800 16,739 27,886 25,981
- ---------------------------------------------------------------------------------------------------------
39,409 31,544 60,643 48,559
Non-controlling interest 461 526 1,006 491
- ---------------------------------------------------------------------------------------------------------
NET INCOME 38,948 31,018 59,637 48,068
Dividends on preferred shares 2,595 - 5,221 -
NET INCOME ATTRIBUTABLE
TO EQUITY SHAREHOLDERS $ 36,353 $ 31,018 $ 54,416 $ 48,068
- ---------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE $ 0.31 $ 0.27 $ 0.47 $ 0.42
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
AVERAGE NUMBER OF EQUITY SHARES
OUTSTANDING (IN THOUSANDS) 115,685 115,574 115,649 115,558
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
</TABLE>
Page 6 of 8
<PAGE>
QUEBECOR PRINTING INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(IN THOUSANDS OF US DOLLARS)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
Six months ended
June 30
1998 1997
(Unaudited)
- ---------------------------------------------------------------------------
<S> <C> <C>
Cash provided by (used for):
OPERATIONS:
Net income $ 59,637 $ 48,068
Items not involving cash:
Depreciation and amortization 113,669 103,872
Deferred income taxes 11,803 10,475
Non-controlling interest 1,006 491
Other 1,241 4,072
- ---------------------------------------------------------------------------
187,356 166,978
Changes in non-cash operating working capital (6,756) (26,789)
- ---------------------------------------------------------------------------
180,600 140,189
- ---------------------------------------------------------------------------
FINANCING:
Net proceeds from issuance of capital stock 999 476
Net increase of long-term debt 36,558 164,308
Dividends (13,882) (12,713)
Dividends paid to preferred shareholders (5,806) -
Dividends paid to non-controlling shareholders (1,395) (854)
Translation adjusment (584) (5,409)
- ---------------------------------------------------------------------------
15,890 145,808
- ---------------------------------------------------------------------------
INVESTMENTS:
Business acquisitions, net of cash position (14,974) (153,510)
Additions to fixed assets (177,855) (141,468)
Increase in other assets (13,055) (4,180)
Other 9,869 7,364
- ---------------------------------------------------------------------------
(196,015) (291,794)
- ---------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH POSITION 475 (5,797)
Cash position at beginning (18,604) 806
- ---------------------------------------------------------------------------
CASH POSITION AT END $ (18,129) $ (4,991)
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
REPRESENTED BY :
Cash $ 1,819 $ 1,218
Bank indebtedness (19,948) (6,209)
- ---------------------------------------------------------------------------
$ (18,129) $ (4,991)
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
</TABLE>
Page 7 of 8
<PAGE>
[LOGO]
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: JULY 23, 1998
Page 8 of 8
