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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 JANUARY 28, 1999
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QUEBECOR PRINTING INC.
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(Translation of Registrant's Name into English)
612 Saint-Jacques Street, Montreal, Quebec, Canada H3C 4M8
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(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
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(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
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PAGE 1 OF 9
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PRESS RELEASE OF
QUEBECOR PRINTING INC.
FILED IN THIS FORM 6-K
January 28, 1999 (# 1\99)
PAGE 2 OF 9
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QUEBECOR
PRINTING INC.
January 28, 1999 1/99
FOR IMMEDIATE RELEASE Page 1 of 2
RECORD 4TH QUARTER RESULTS MOVE
QUEBECOR PRINTING'S 1998 EARNINGS PER SHARE UP 15%
MONTREAL - Quebecor Printing Inc. announced today net income available for
holders of equity shares of US $149 million for the year ended December 31 1998,
an increase from US $129 million in 1997. After preferred share dividends,
earnings per share for the year increased 15% to US $1.29 from US $1.12 in 1997.
Revenues increased 9% to US $3.8 billion, compared to US $3.5 billion in 1997.
Quebecor Printing's fourth quarter net income available for holders of equity
shares rose to US $51 million from US $46 million last year. After preferred
share dividends, earnings per share rose to US $0.44 from US $0.40 in 1997.
Revenues for the period were US $1.1 billion, up 9% from US $993 million last
year.
The 1998 fourth quarter results include a gain of US $9 million or US $0.08
earnings per share resulting from the divestiture of Quebecor Printing's cheque
and credit card businesses. Non-operating expenses totalling approximately US
$13 million after-tax or US $0.11 earnings per share were also recorded in the
quarter. These relate mainly to costs incurred in the redeployment of assets
and the consolidation of certain sales and administrative offices in the United
States. Earnings per share, excluding these non-operating items, were US $0.47,
representing growth of 18%.
Cash flow generated from operations for 1998 rose to a record US $425 million
compared to US $379 million last year. Capital expenditures totalled US $312
million and US $260 million was invested in business acquisitions.
The company's performance in 1998 reflects a year of restructuring in order to
maximize efficiencies in the United States and Canada as well as a concurrent
expansion into new markets in South America and Europe. The year also marks a
period of significant progress in the technological upgrade of equipment in the
United States, particularly in the Company's rotogravure operations.
Charles G. Cavell, President and Chief Executive Officer said, "At this time
last year, we announced that, through investment in new technology and
acquisitions, we were ready to execute the next stage of our strategy: to
significantly raise shareholder value. Our accomplishments in 1998 represent
our best year yet, despite certain negative effects that resulted from the
restructuring and retooling of facilities. We have met earnings estimates while
taking measures to even further improve earnings going forward. From a customer
and investor perspective, Quebecor Printing is increasingly regarded as the
industry leader. We are proud to deliver increased earnings per share to our
shareholders, and to have the recognition in the capital markets of the validity
of our strategy and its execution."
PAGE 3 OF 9
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Page 2 of 2
The Board of Directors declared a dividend of US $0.07 per share on the Multiple
Voting Shares and Subordinate Voting Shares, an increase of 17% compared with
last year. The Board of Directors also declared a dividend of CDN $0.3125 per
share on Series 2 Preferred Shares. These two dividends are payable on March 1,
1999 to shareholders of record at the close of business on February 12, 1999.
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.
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FOR MORE INFORMATION:
Christian M. Paupe John Paul Macdonald
Executive Vice President and Director Corporate Communications
Chief Financial Officer (800) 567-7070
(800) 567-7070 (514) 954-0101
(514) 954-0101
PAGE 4 OF 9
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[LETTERHEAD]
PERIODS ENDED DECEMBER, 31
(In millions of US dollars, except per share data )
<TABLE>
<CAPTION>
3 M O N T H S 12 M O N T H S
1998 1997 CHANGE 1998 1997 CHANGE
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<S> <C> <C> <C> <C> <C> <C>
SEGMENTED INFORMATION
REVENUES
United States . . . . . . . . . . . . . . . . . . . . . . . . . 550.0 550.7 (0.1 %) 2,053.8 1,937.1 6.0%
Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246.0 253.7 (3.0 %) 923.0 902.4 2.3%
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254.1 172.6 47.2 % 755.4 613.5 23.1%
South America. . . . . . . . . . . . . . . . . . . . . . . . . . 28.9 14.0 106.4 % 73.1 24.3 200.8%
OPERATING INCOME
United States . . . . . . . . . . . . . . . . . . . . . . . . . 29.7 48.5 (38.8 %) 139.6 135.8 2.8 %
Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33.0 18.7 76.5 % 86.8 72.6 19.6 %
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.3 15.5 50.3 % 59.4 45.3 31.1 %
South America. . . . . . . . . . . . . . . . . . . . . . . . . . 4.5 2.0 123.2 % 7.6 2.8 175.2 %
OPERATING MARGIN
United States . . . . . . . . . . . . . . . . . . . . . . . . . 5.4% 8.8% 6.8% 7.0%
Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.4% 7.4% 9.4% 8.0%
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.2% 9.0% 7.9% 7.4%
South America. . . . . . . . . . . . . . . . . . . . . . . . . . 15.6% 14.3% 10.4% 11.5%
CONSOLIDATED RESULTS
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,078.9 993.2 8.6 % 3,808.2 3,483.2 9.3 %
Operating income before depreciation & amortization. . . . . . . 161.5 142.7 13.1 % 541.3 479.2 13.0 %
Operating income . . . . . . . . . . . . . . . . . . . . . . . . 97.5 88.9 9.7 % 301.9 268.4 12.5 %
Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.4 47.5 12.4 % 159.6 130.4 22.3 %
Net Income available for holders of equity shares . . . . . . . 51.0 46.1 10.6 % 149.4 129.0 15.8 %
INCOME AS % OF REVENUES
Operating income before depreciation & amortization. . . . . . . 15.0% 14.4% 14.2 % 13.8 %
Operating income . . . . . . . . . . . . . . . . . . . . . . . . 9.0% 9.0% 7.9 % 7.7 %
PER SHARE DATA ($ US)
Cash flow from operations . . . . . . . . . . . . . . . . . . . $0.93 $0.98 $3.59 $3.27
Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.44 $0.40 $1.29 $1.12
PER SHARE DATA ($ CDN) *
Cash flow from operations . . . . . . . . . . . . . . . . . . . $1.42 $1.39 $5.34 $4.54
Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.68 $0.56 $1.93 $1.55
REVENUES BY PRODUCT SEGMENT (%)
Magazines. . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.2% 29.0% 29.2 % 28.5 %
Inserts and circulars. . . . . . . . . . . . . . . . . . . . . . 24.7% 21.6% 21.1 % 19.9 %
Catalogs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.6% 14.3% 15.6 % 14.4 %
Books . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.9% 14.1% 13.6 % 15.3 %
Specialty Printing . . . . . . . . . . . . . . . . . . . . . . . 9.2% 10.3% 10.1 % 10.7 %
Directories. . . . . . . . . . . . . . . . . . . . . . . . . . . 3.9% 4.2% 4.3 % 4.5 %
Related Services and CD-ROM . . . . . . . . . . . . . . . . . . 4.4% 4.5% 4.4 % 4.7 %
Checks, Bonds and Banknotes. . . . . . . . . . . . . . . . . . . 1.1% 2.0% 1.7 % 2.0 %
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* For reference only - subject to fluctuations of the exchange rate.
PAGE 5 OF 9
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QUEBECOR PRINTING INC. AND ITS SUBSIDIARIES
Consolidated Statements of Income and Retained Earnings
Years ended December 31, 1998, 1997 and 1996
(in thousands of US dollars, except for earnings per share amounts)
<TABLE>
<CAPTION>
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1998 1997 1996
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<S> <C> <C> <C>
REVENUES $3,808,155 $3,483,199 $3,110,292
Operating expenses:
Cost of sales 2,979,245 2,736,856 2,403,118
Selling and administrative 287,622 267,168 252,507
Depreciation and amortization 239,402 210,729 194,134
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3,506,269 3,214,753 2,849,759
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OPERATING INCOME 301,886 268,446 260,533
Financial expenses 64,300 66,887 62,540
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Income before income taxes 237,586 201,559 197,993
Income taxes:
Current 43,207 40,541 40,267
Deferred 31,621 28,567 28,816
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74,828 69,108 69,083
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Income before non-controlling interest 162,758 132,451 128,910
Non-controlling interest 3,198 2,011 2,615
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NET INCOME 159,560 130,440 126,295
Net income available for holders
of preferred shares 10,136 1,458 --
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Net income available for holders
of equity shares $ 149,424 $ 128,982 $ 126,295
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EARNINGS PER SHARE $ 1.29 $ 1.12 $ 1.09
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Average number of equity shares
outstanding
(in thousands) 115,703 115,567 115,519
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RETAINED EARNINGS, BEGINNING OF YEAR $ 508,514 $ 406,649 $ 303,458
Net income 159,560 130,440 126,295
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668,074 537,089 429,753
Share issue expenses (net of income
taxes of $1,701 in 1997) -- 3,126 --
Dividends - on equity shares 27,774 25,449 23,104
- on preferred shares 10,704 -- --
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RETAINED EARNINGS, END OF YEAR $ 629,596 $ 508,514 $ 406,649
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</TABLE>
PAGE 6 OF 9
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QUEBECOR PRINTING INC. AND ITS SUBSIDIARIES
Consolidated Statements of Changes in Financial Position
Years ended December 31, 1998, 1997 and 1996
(in thousands of US dollars)
<TABLE>
<CAPTION>
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1998 1997 1996
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<S> <C> <C> <C>
Cash provided by (used for):
OPERATIONS:
Net income $ 159,560 $ 130,440 $ 126,295
Items not involving cash:
Fixed assets depreciation 214,203 193,869 182,039
Amortization of goodwill and deferred charges 25,199 16,860 12,095
Imputed interest 1,048 6,570 8,615
Amortization of deferred financing costs and
exchange losses 1,187 1,958 1,643
Deferred income taxes 31,621 28,567 28,816
Non-controlling interest 3,198 2,011 2,615
Gain on business disposal (13,492) -- --
Other 2,758 (1,009) (323)
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425,282 379,266 361,795
Changes in non-cash operating working
capital 2,722 (35,123) 64,489
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FINANCING: 428,004 344,143 426,284
Net proceeds from issuance of capital stock 2,137 208,151 416
Issuance of debt 290,805 1,058,552 199,377
Repayments of debt (128,400) (935,806) (233,671)
Dividends on equity shares (27,774) (25,449) (23,104)
Dividends on preferred shares (10,704) -- --
Dividends paid to non-controlling interest (1,503) (1,066) (2,081)
Translation adjustment (4,935) (8,023) (4,567)
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119,626 296,359 (63,630)
INVESTMENTS:
Business acquisitions, net of cash position (260,208) (319,900) (56,434)
Business disposal 33,395 -- --
Additions to fixed assets (312,123) (325,606) (243,147)
Change in other liabilities 9,571 (6,768) (4,372)
Proceeds from disposal of assets 357 7,587 9,964
Increase in other assets (15,316) (15,225) (34,187)
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(544,324) (659,912) (328,176)
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Increase (decrease) in cash position 3,306 (19,410) 34,478
Cash position beginning of year (18,604) 806 (33,672)
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CASH POSITION, END OF YEAR $ (15,298) $ (18,604) $ 806
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</TABLE>
Cash position is comprised of cash and bank indebtedness.
PAGE 7 OF 9
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QUEBECOR PRINTING INC. AND ITS SUBSIDIARIES
Consolidated Balance Sheets
Years ended December 31, 1998 and 1997
(in thousands of US dollars)
<TABLE>
<CAPTION>
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1998 1997
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<S> <C> <C>
ASSETS
Current assets:
Cash $ 309 $ 380
Trade receivables 695,867 683,840
Inventories 233,019 253,228
Prepaid expenses 25,035 20,907
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954,230 958,355
Fixed assets 2,210,964 2,061,928
Goodwill 595,724 383,801
Other assets 81,198 71,454
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$ 3,842,116 $ 3,475,538
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank indebtedness $ 15,607 $ 18,984
Trade payables and accrued liabilities 601,244 635,050
Income and other taxes 42,207 32,993
Current portion of long-term debt and
convertible debentures 51,066 52,019
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710,124 739,046
Long-term debt 1,140,941 913,269
Other liabilities 127,859 114,065
Deferred income taxes 223,085 195,005
Convertible debentures 58,193 60,021
Non-controlling interest 17,410 17,792
Shareholders' equity:
Capital stock 898,138 896,001
Contributed surplus 88,737 88,737
Retained earnings 629,596 508,514
Translation adjustment (51,967) (56,912)
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1,564,504 1,436,340
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$ 3,842,116 $ 3,475,538
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</TABLE>
PAGE 8 OF 9
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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
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Name: Philippe Montel
Title: Vice President, Legal Affairs
and Secretary
Date: JANUARY 28, 1999
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