<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, 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 15
<PAGE>
THIRD QUARTERLY REPORT
OF
QUEBECOR PRINTING INC.
FILED IN THIS FORM 6-K
Material sent to shareholders by Fiducie Desjardins
Quarterly Report (ending September 1998)
PAGE 2 OF 15
<PAGE>
[LOGO]
QUEBECOR PRINTING INC.
REPORT TO SHAREHOLDERS
THIRD QUARTER 1998
THE POWER
TO SERVE
PAGE 3 OF 15
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Periods ended September, 30
(In millions of US dollars, except per share data)
<TABLE>
<CAPTION>
3 Months 9 Months
- ---------------------------------------------------- ---------
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
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
*For reference only -- subject to the fluctuations of the exchange rate.
NOTE: All dollar amounts in this report are in US dollars, unless stated
otherwise.
PAGE 4 OF 15
<PAGE>
- --------------------------------------------------------------------------------
MESSAGE TO SHAREHOLDERS
- --------------------------------------------------------------------------------
Quebecor Printing's third quarter results reflect the strength of the
Company's business foundation and its ability to contribute to improved
performance, despite the disruptions caused by plant expansions and the
introduction of new technology. Third quarter 1998 earnings available for
holders of equity shares rose to $44 million from $35 million for the same
period in 1997. After preferred share dividends, earnings per share increased
26% to $ 0.38 from $ 0.30 in 1997. Revenues increased 11% to $957 million,
compared to $867 million in 1997. - For the nine months ended September 30,
1998, net income available for holders of equity shares rose to $98 million
from $83 million last year. After preferred share dividends, earnings per
share increased 18% to $0.85 from $0.72 in 1997. Revenues for the period
were $2.73 billion, up 10% from $2.49 billion last year. Cash flow provided
by operations totaled $316 million, business acquisitions were $243 million
and capital expenditures totaled $243 million. The Company's debt:equity
ratio was 47:53.
OPERATIONS OVERVIEW - In the U.S., the Company continues the renewal of its
nationwide gravure network by retooling a number of plants and building a new
facility at Fernley, Nevada. When this major retooling project is completed,
customers will have access to the most modern, most efficient gravure network in
North America. Quebecor Printing will offer a strategic advantage in terms of
press width, speed and coast-to-coast coverage. - However, the Company is some
distance from realizing the efficiencies that the investment promises. Plants
in Dallas, Texas, and Atglen, Pennsylvania are still experiencing start-up
difficulties as reflected in their significant
Quebecor Printing Inc. and its subsidiaries
PAGE 5 OF 15
<PAGE>
underperformance of third quarter operating earnings, when compared to the
same period in 1997. Management is working to remedy the situation while
ensuring that customer commitments are met. - In August, the Company
announced the completion of its acquisition of Tryckinvest i Norden AB
(TINA), Scandinavia's largest printer, for the approximate sum of $221
million plus the assumption of $51 million in debt. The acquisition has
expanded the Company's presence in Europe by 30% and strengthened Quebecor
Printing's position as one of Europe's largest commercial printers. With 60%
of the Nordic rotogravure market, TINA enjoys strong operating margins and
excellent supplier relationships. It also benefits from a 28% corporate tax
rate which is favorable when compared to US (38%) and Canadian (35%) tax
rates. In the third quarter, TINA contributed 2 1/2 cents earnings per share
on the strength of $57 million in revenue. - In September, the Company
announced the sale of its check and credit card businesses to Toronto-based
MDC Communications for the sum of Cdn $55 million in cash and the balance in
MDC shares. Price erosion and resulting pressure on operating margins led the
Company to divest itself of this non-core business. Quebecor Printing's
checks and credit card businesses made up less than 1% of its annual revenue.
- - The Company will continue to maintain a strategic focus on core printing
businesses while eliminating manufacturing redundancies in order to obtain
the best yields possible. The closure of the Company's Atlanta facility and
Quebecor Printing Federated in Providence, Rhode Island are recent examples.
- - In October, the Company announced the acquisition of one of South America's
most important book printers, Impreandes Presencia S.A. Impreandes Presencia
is based in Bogota and is one of Colombia's most successful printers
PAGE 6 OF 15
<PAGE>
recognized for its strong sales force and excellent customer relations. When
combined with Quebecor Printing's operations in Chile, Peru and Argentina, and
with the Company's link to North American customers through its highly
successful Mexican book operation, the acquisition represents a major advance in
the Latin American book and commercial printing market.
DIVIDEND - On October 23, 1998, 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.
OUTLOOK - With initiatives such as the expansion of the Company's European
activities to northern and eastern Europe, the establishment of a centralized
worldwide procurement service to maximize global purchasing efficiencies, the
consolidation of certain facilities, and the divestiture of activities outside
of the Company's core business, Quebecor Printing is committed to becoming the
best value in the printing industry for its shareholders.
Jean Neveu Charles G. Cavell
Chairman of the Board President and
Chief Executive Officer
Montreal, Canada, November 1998
Quebecor Printing Inc. and its subsidiaries
PAGE 7 OF 15
<PAGE>
- --------------------------------------------------------------------------------
Consolidated Statements of Income
- --------------------------------------------------------------------------------
Periods ended September 30
(In thousands of US dollars, except for earnings per share amounts)
(Unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REVENUES
Operating expenses:
Operating costs
Depreciation and amortization
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
OPERATING INCOME
Financial expenses
- --------------------------------------------------------------------------------
Income taxes
- --------------------------------------------------------------------------------
Non-controlling interest
- --------------------------------------------------------------------------------
NET INCOME
Dividends on preferred shares
- --------------------------------------------------------------------------------
NET INCOME AVAILABLE FOR HOLDERS OF EQUITY SHARES
- --------------------------------------------------------------------------------
EARNINGS PER SHARE
- --------------------------------------------------------------------------------
Average number of equity shares outstanding (in thousands)
- --------------------------------------------------------------------------------
[PIE CHART]
PAGE 8 OF 15
<PAGE>
<TABLE>
<CAPTION>
Three months Nine months
- ----------------------------------------------------------------
1998 1997 1998 1997
- ----------------------------------------------------------------
<S> <C> <C> <C>
$957,174 $866,584 $2,729,224 $2,489,994
809,934 741,140 2,349,374 2,154,003
61,749 53,058 175,418 156,930
- ----------------------------------------------------------------
871,683 794,198 2,524,792 2,310,933
- ----------------------------------------------------------------
85,491 72,386 204,432 179,061
16,063 17,324 46,475 49,459
- ----------------------------------------------------------------
69,428 55,062 157,957 129,602
21,871 19,250 49,757 45,231
- ----------------------------------------------------------------
47,557 35,812 108,200 84,371
1,072 965 2,078 1,456
- ----------------------------------------------------------------
46,485 34,847 106,122 82,915
2,481 - 7,702 -
- ----------------------------------------------------------------
$ 44,004 $ 34,847 $ 98,420 $ 82,915
- ----------------------------------------------------------------
$ 0.38 $ 0.30 $ 0.85 $ 0.72
- ----------------------------------------------------------------
115,736 115,574 115,678 115,564
- ----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
REVENUES BY PRODUCT SEGMENT (9 MONTHS) 1998 1997
------------------------
<S> <C> <C>
1. Magazines 29.2 % 28.3 %
2. Inserts and circulars 19.7 19.3
3. Catalogs 16.0 14.4
4. Books 13.9 15.7
5. Specialty Printing 10.4 10.8
6. Directories 4.5 4.6
7. Related Services and CD-ROM 4.4 4.9
8. Checks, Bonds and Banknotes 1.9 2.0
</TABLE>
Quebecor Printing Inc. and its subsidiaries
PAGE 9 OF 15
<PAGE>
- --------------------------------------------------------------------------------
Consolidated Statements of Changes in Financial Position
- --------------------------------------------------------------------------------
Periods ended September 30
(In thousands of US dollars)
(Unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Cash provided by (used for):
OPERATIONS:
Net income
Items not involving cash:
Depreciation and amortization
Deferred income taxes
Non-controlling interest
Other
- --------------------------------------------------------------------------------
Changes in non-cash operating working capital
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCING:
Net proceeds from issuance of capital stock
Net increase of long-term debt
Dividends on equity shares
Dividends paid to preferred shareholders
Dividends paid to non-controlling shareholders
Translation adjustment
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENTS:
Business acquisitions, net of cash position
Additions to fixed assets
Increase in other assets
Other
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH POSITION
Cash position at beginning
- --------------------------------------------------------------------------------
CASH POSITION AT END
- --------------------------------------------------------------------------------
REPRESENTED BY:
Cash
Bank indebtedness
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PAGE 10 OF 15
<PAGE>
<TABLE>
<CAPTION>
Nine months Nine months
- --------------------------------------------------------------------------------
1998 1997
- --------------------------------------------------------------------------------
<S> <C>
$ 06,122 $ 82,915
175,418 156,930
30,903 18,671
2,078 1,456
1,300 4,224
- --------------------------------------------------------------------------------
315,821 264,196
(83,583) (85,844)
- --------------------------------------------------------------------------------
232,238 178,352
- --------------------------------------------------------------------------------
1,655 480
285,997 242,007
(20,828) (12,713)
(8,277) -
(1,467) (1,031)
(1,638) (4,162)
- --------------------------------------------------------------------------------
255,442 224,581
- --------------------------------------------------------------------------------
(242,645) (185,399)
(243,015) (223,107)
(16,010) (11,296)
18,315 3,241
- --------------------------------------------------------------------------------
(483,355) (416,561)
- --------------------------------------------------------------------------------
4,325 (13,628)
(18,604) 806
- --------------------------------------------------------------------------------
$ (14,279) $ (12,822)
- --------------------------------------------------------------------------------
$ 1,917 $ 2,030
(16,196) (14,852)
- --------------------------------------------------------------------------------
$ (14,279) $ (12,822)
- --------------------------------------------------------------------------------
</TABLE>
Quebecor Printing Inc. and its subsidiaries
PAGE 11 OF 15
<PAGE>
- --------------------------------------------------------------------------------
Consolidated Balance Sheets
- --------------------------------------------------------------------------------
(In thousands of US dollars)
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
ASSETS
Current assets :
Cash
Trade receivables
Inventories
Prepaid expenses
- --------------------------------------------------------------------------
Fixed assets
less accumulated depreciation
- --------------------------------------------------------------------------
Goodwill
Other assets
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities :
Bank indebtedness
Trade payables and accrued liabilities
Incomeand other taxes
Current portion of long-term debt and convertible debentures
- --------------------------------------------------------------------------
Long-term debt
Other liabilities
Deferred income taxes
Convertible debentures
Non-controlling interest
Shareholders' equity :
Capital stock
Contributed surplus
Retained earnings
Translation adjustment
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
PAGE 12 OF 15
<PAGE>
<TABLE>
<CAPTION>
September 30 December 31 September 30
(unaudited) (audited) (unaudited)
- --------------------------------------------------------------------------
1998 1997 1997
- --------------------------------------------------------------------------
<S> <C> <C>
$ 1,917 $ 380 $ 2,030
678,512 683,840 606,712
262,930 253,228 253,540
26,460 20,907 27,541
- --------------------------------------------------------------------------
969,819 958,355 889,823
3,180,161 2,887,510 2,734,170
987,460 843,131 794,465
- --------------------------------------------------------------------------
2,192,701 2,044,379 1,939,705
597,742 383,801 339,525
97,435 89,003 91,995
- --------------------------------------------------------------------------
$3,857,697 $3,475,538 $3,261,048
- --------------------------------------------------------------------------
$ 16,196 $ 18,984 $ 14,852
561,796 635,050 531,927
25,412 32,993 29,658
43,813 52,019 39,930
- --------------------------------------------------------------------------
647,217 739,046 616,367
1,254,126 913,269 1,037,791
123,602 114,065 118,445
233,037 195,005 195,785
62,591 60,021 75,238
16,363 17,792 18,737
897,656 896,001 683,503
88,737 88,737 88,737
585,531 508,514 476,851
(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 13 OF 15
<PAGE>
HEAD OFFICE
- -----------------------------------------
Quebecor Printing Inc.
612 Saint-Jacques Street
Montreal, Quebec
Canada H3C 4M8
Tel.: (514) 954-0101
1 (800) 567-7070
Fax: (514) 954-9624
[LOGO]
QUEBECOR
PRINTING INC.
PAGE 14 OF 15
<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: November 30, 1998
PAGE 15 OF 15
