<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 month of JULY 2000
------------------------------------------------------------
QUEBECOR WORLD INC.
--------------------------------------------------------------------------------
(Translation of Registrant's Name into English)
612 SAINT-JACQUES STREET, MONTREAL, QUEBEC, 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
--- ---
(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 14
<PAGE>
Press Releases
and
Consolidated Financial Statements
of
QUEBECOR WORLD INC.
Filed in this Form 6-K
Documents index
1. Press Release dated June 30, 2000 (#18/00)
2. Press Release dated July 12, 2000 (#19/00)
3. Press Release dated July 28, 2000 (#20/00);
4. Consolidated Financial Statements for the six months period ended June 30,
2000.
Page 2 of 14
<PAGE>
JUNE 30, 2000 18/00
FOR IMMEDIATE RELEASE
PUBLISHERS JOIN PRINTERS IN XML EFFORT
NEW YORK, N.Y. - Several leading printing and publishing companies have jointly
agreed to test electronic formats for communications between publishers and
printers. The initial members of the team include publishing companies Meredith
Corporation, The New York Times Company Magazine Group and The Reader's Digest
Association. Printing company members include Quad/Graphics, Quebecor World and
R.R. Donnelley & Sons Company. In addition, CDS Fulfillment is participating to
ensure compatibility with list management and postal requirements.
The team is currently evaluating XPP, which stands for "XML for Publishers and
Printers," as a powerful and contemporary tool to facilitate
publisher-to-printer technical data transfer. XML is the abbreviation for
Extensible Markup Language, considered the premier emerging protocol for
Internet-based transactions. During the initial proof-of-concept phase, spanning
90 days, the team will attempt to demonstrate that its proposed protocol can
precisely convey the regional, demographic and production requirements of
complex consumer magazines, catalogs and other printed products.
When its preliminary work is complete, the team intends to share its findings
with other interested parties with the goal of developing open standards for the
industry.
MEREDITH CORPORATION (www.meredith.com) is one of the nation's leading media and
marketing companies with businesses centering on magazine and book publishing,
television broadcasting, integrated marketing and interactive media. Meredith
publishes 20 subscription magazines, including BETTER HOMES AND GARDENS and
LADIES' HOME JOURNAL, and more than 100 special interest publications. Meredith
owns 12 television stations - located in fast-growing markets such as Atlanta,
Phoenix, Orlando, Portland and Las Vegas - and produces original television
programming based on its strong brands. Additionally, Meredith has an extensive
Internet presence, with 26 Web sites and branded anchor tenant positions on
America Online. The Company employs more than 2,500 people.
THE NEW YORK TIMES COMPANY MAGAZINE GROUP is a subsidiary of The New York
Times Company (www.newyorktimes.com). Headquartered in Trumbull, Connecticut,
The Magazine Group publishes GOLF DIGEST, the largest golf publication in the
world; GOLF WORLD, the world's leading weekly golf publication; and GOLF
WORLD BUSINESS, the largest golf business publication in the field. The New
York Times Company is a diversified media company including newspapers,
magazines, television and radio stations, and electronic information and
publishing. The Company had 1999 revenues of $3.1 billion.
THE READER'S DIGEST ASSOCIATION, INC. (www.readersdigest.com) is a global
publisher and direct marketer of products that inform, enrich, entertain and
inspire people of all ages and all cultures around the world. Worldwide revenues
were $2.5 billion for the fiscal year ended June 30, 1999. Global headquarters
are located at Pleasantville, New York.
Page 3 of 14
<PAGE>
FOR IMMEDIATE RELEASE Page 2 of 2
QUAD/GRAPHICS (www.qg.com) is the largest privately held printer of magazines,
catalogs, books and other commercial products in the world. It is an industry
leader in integrating equipment, technology and systems across all operating
divisions in all plants for the purpose of reducing cycle times. Its
long-standing integration initiative includes a seamless transfer of information
from publishers and catalogers directly to Quad/Graphics' 22 print-production
facilities on three continents. Constant growth over the past 29 years - mostly
through internal expansion - has resulted in a company with the most modern
plants, equipment and capabilities. Globally, Quad/Graphics employs more than
13,000 people. Sales exceed $2 billion annually.
QUEBECOR WORLD INC. (www.quebecorworld.com) is the largest commercial print
media services company in the world. The Company is a leader in most of its
major product categories, which include magazines, inserts and circulars, books,
catalogs, specialty printing and direct mail, directories, digital pre-media,
logistics, mail list technologies and other value added services. The Company
has over 40,000 employees working in more than 160 printing and related
facilities in the United States, Canada, France, the United Kingdom, Spain,
Germany, Austria, Sweden, Finland, Chile, Argentina, Peru, Colombia, Mexico and
India. 1999 pro forma revenues were $6.5 billion.
R.R. DONNELLEY & SONS COMPANY (www.rrdonnelley.com) is a leading printer,
communications services and logistics company, offering a full range of
integrated service solutions to help publishers, merchandisers, financial and
health care companies deliver communications to their customers. R.R.
Donnelley's end-to-end solutions include pre-media, content management,
printing, Internet and logistics services. The Company's 34,000 employees serve
customers in North America, South America, Asia and Europe. R.R. Donnelley had
$5.2 billion in revenues in 1999.
- 30 -
For more information, please contact:
Karen Chivaro Ron Nash
Meredith Corporation Quad/Graphics
(515) 284-3000 (414) 566-6230
[email protected]
Jeffrey Thomas Claire Lanctot
Reader's Digest Association Quebecor World Inc.
(914) 244-7692 (514) 931-6521
[email protected] [email protected]
Frank Montague
R.R. Donnelley & Sons Company:
(630) 322-6772
[email protected]
Page 4 of 14
<PAGE>
JULY 12, 2000 19/00
For immediate release PAGE 1 OF 1
QUEBECOR WORLD INC. ANNOUNCES THE PRIVATE PLACEMENT OF
US$ 250 MILLION SENIOR NOTES
MONTREAL - Quebecor World Inc. announced today the private placement of senior
notes in the aggregate principal amount of US$250 million by its wholly-owned
subsidiary, Quebecor World Capital Corporation. The notes are guaranteed by
Quebecor World Inc. and its wholly-owned subsidiary, Quebecor Printing (USA)
Holdings.
US$175 million of such notes mature on July 15, 2010 and bear interest at a rate
of 8.42%. The remaining US$75 million of notes mature on July 15, 2012 and bear
interest at a rate of 8.52%. The total proceeds from the senior notes have been
used to repay bank indebtedness incurred during 1999 to fund the acquisition of
World Color Press, Inc.
The placement agents for Quebecor World in connection with the private placement
of the notes were Salomon Smith Barney Inc., Banc of America Securities, LLC,
and SPP Capital Partners, LLC.
Quebecor World Inc. (NYSE, TSE: IQW) is the largest commercial print media
services company in the world. The Company is a leader in most of its major
product categories, which include magazines, inserts and circulars, books,
catalogs, specialty printing and direct mail, directories, digital pre-media,
logistics, mail list, technologies and other value added services. The Company
has over 40,000 employees working in more than 160 printing and related
facilities in the United States, Canada, France, the United Kingdom, Spain,
Austria, Sweden, Finland, Chile, Argentina, Peru, Colombia, Mexico and India.
- 30 -
FOR FURTHER INFORMATION:
Christian M. Paupe Mark D'Souza
Executive Vice President Vice President and Treasurer
Quebecor World Inc. Quebecor World Inc.
(514) 877-5305 011-41-26-347-4777
(800) 567-7070
Page 5 of 14
<PAGE>
JULY 28, 2000 20/00
FOR IMMEDIATE RELEASE Page 1 of 2
QUEBECOR WORLD ANNOUNCES 24% INCREASE IN EARNINGS PER SHARE ON A CASH BASIS
FOR SECOND QUARTER 2000
MONTREAL, CANADA - Quebecor World announces today its results for the second
quarter of 2000. Revenue, operating income and net income reached unprecedented
levels with record performance in every product line of the Company.
For the three months ended June 30, 2000, Quebecor World revenues totalled
US$1.5 billion, a 64% increase over US$944 million for the corresponding period
in 1999. The increase in revenue and operating income is largely due to the
inclusion of World Color operations for the second quarter of 2000 when compared
to that of 1999. In addition, internal growth for the combined operations of
Quebecor World reached 5%, more than double that of 1999. Margins continued to
improve during the quarter to reach the highest level in the Company's history.
"The print market is competitive but the new level of efficiency that is being
realized by the Merger with World Color and the gain from previous capital
investment is giving us these new record margin levels and we believe further
efficiencies can and will be realized" said Mr. Charles G. Cavell, President and
Chief Executive Officer of Quebecor World. Operating income increased 95% to
US$168 million, from US$86 million for the second quarter of fiscal 1999. Net
income was US$63 million, or US$0.41 per share, compared with US$45 million, or
US$0.36 per share, last year, an increase of 14%. On a cash basis, net income
before goodwill amortization reached US$0.51 per share in 2000 compared to
US$0.41 per share in 1999, a 24% improvement.
"The majority of our core print media businesses in the US experienced strong
internal growth over the quarter. This achievement is significant because, at
the same time, the Company is executing its restructuring plan and has
temporarily put out of service a large number of presses in the second quarter.
I am more than pleased with the progress of our integration of the World Color
operations to date" stated Mr. Cavell. Most of the manufacturing capacity from
discontinued plants will be reinstalled in the third quarter.
For the six months ended June 30, 2000, the Company's revenues increased 71% to
reach US$3.2 billion, compared with US$1.9 billion for the same period last
year. Operating income reached US$306 million, a 115% increase over US$142
million for the first half of 1999. Net income increased to US$100 million, or
US$0.65 per share, from US$68 million, or US$0.54 per share, last year, an
improvement of 20%. Net income on a cash basis increased 39% to US$0.86 per
share, from US$0.62 per share for the corresponding period of 1999.
Free cash flow from operations for the six months ended June 30, 2000 reached
US$206 million and was used to reduce the debt arising from the World Color
acquisition. As of the end of the second quarter, the Company's debt-to-equity
ratio decreased to 53:47 from a high at the time of the merger of 62:38. "The
strong cash flow being generated from operations should allow us to completely
retire the remaining acquisition bank debt incurred at the time of the Merger
within less than two years. This clearly demonstrates the financial strength of
the new Company" said Mr. Cavell.
Page 6 of 14
<PAGE>
FOR IMMEDIATE RELEASE Page 2 of 2
In June, the Company issued Senior Notes of US$250 million. The strong support
from the investment community has allowed the Company to diversify its funding
sources and extend the maturity of its debt to 2010 and 2012 at very favourable
terms. "This vote of confidence from the debt capital markets is yet another
confirmation of the strength and the future prospects of the Company" said Mr.
Cavell. Proceeds are largely being used to pay down acquisition bank debt.
During the second quarter, the Company purchased 557,408 Subordinate Voting
Shares for cancellation under its Normal Course Issuer Bid, announced April 4,
2000. The total cash cost was CDN$16.8 million, with an average cash cost per
share of CDN$30.17. The Company believes that the purchase of Subordinate Voting
Shares under the issuer bid represents an attractive investment at current
trading prices, and will continue to repurchase shares. The issuer bid is being
funded with cash proceeds from the sale of non-core assets as well as those made
redundant as a result of restructuring.
The Board of Directors declared a dividend of US$0.08 per share on Multiple
Voting Shares and Subordinate Voting Shares. The Board also declared a dividend
of CDN$0.3125 per share on Series 2 Preferred Shares. The two dividends are
payable on September 1, 2000 to shareholders of record at the close of business
on August 17, 2000.
Quebecor World Inc. (NYSE, TSE: IQW) is the largest commercial print media
services company in the world. The Company is a leader in most of its major
product categories, which include magazines, inserts and circulars, books,
catalogs, specialty printing and direct mail, directories, digital pre-media,
logistics, mail list technologies and other value added services. The Company
has over 40,000 employees working in more than 160 printing and related
facilities in the United States, Canada, France, the United Kingdom, Spain,
Austria, Sweden, Finland, Chile, Argentina, Peru, Columbia, Mexico and India.
EXCEPT FOR HISTORICAL INFORMATION CONTAINED HEREIN, THE STATEMENTS IN THIS
RELEASE ARE FORWARD-LOOKING AND MADE PURSUANT TO THE SAFE HARBOR PROVISIONS OF
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING STATEMENTS
INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT MAY CAUSE THE COMPANY'S
ACTUAL RESULTS IN FUTURE PERIODS TO DIFFER MATERIALLY FROM FORECASTED RESULTS.
THOSE RISKS INCLUDE, AMONG OTHERS, CHANGES IN CUSTOMERS' DEMAND FOR THE
COMPANY'S PRODUCTS, CHANGES IN RAW MATERIAL AND EQUIPMENT COSTS AND
AVAILABILITY, SEASONAL CHANGES IN CUSTOMER ORDERS, PRICING ACTIONS BY THE
COMPANY'S COMPETITORS, AND GENERAL CHANGES IN ECONOMIC CONDITIONS. THOSE AND
OTHER RISKS ARE MORE FULLY DESCRIBED IN THE COMPANY'S FILINGS WITH THE
SECURITIES AND EXCHANGE COMMISSION.
- 30 -
FOR FURTHER INFORMATION, PLEASE CONTACT:
Charles G. Cavell Christian M. Paupe
President & Chief Executive Officer Executive Vice President
Quebecor World Inc. Quebecor World Inc.
(514) 877-5185 (514) 954-0101
(800) 567-7070 (800) 567-7070
Page 7 of 14
<PAGE>
QUEBECOR WORLD INC.
FINANCIAL HIGHLIGHTS
Periods ended June 30
(In millions of US dollars, except per share data)
<TABLE>
<CAPTION>
Three months Six months
=============================================================================================================================
2000 1999 Change 2000 1999 Change
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CONSOLIDATED RESULTS
Revenues 1,549.1 944.3 64 % 3,179.5 1,854.8 71 %
Operating income before amortization 255.9 145.2 76 % 487.6 259.0 88 %
Operating income 167.7 85.8 95 % 305.9 142.3 115 %
Net income 62.8 45.2 39 % 100.4 68.4 47 %
Cash provided from operating activities 216.9 164.4 32 % 289.5 233.4 24 %
Free cash flow from operations* 163.0 125.6 30 % 205.9 163.7 26 %
Operating margin before amortization 16.5 % 15.4 % 15.3 % 14.0 %
Operating margin 10.8 % 9.1 % 9.6 % 7.7 %
=============================================================================================================================
SEGMENTED INFORMATION
REVENUES
United States 1,044.5 459.1 128 % 2,176.6 925.4 135 %
Canada 260.8 243.6 7 % 508.3 464.1 10 %
Europe 217.9 219.2 (1)% 445.2 422.3 5 %
Latin America 26.2 22.9 14 % 51.7 44.5 16 %
OPERATING INCOME
United States 116.3 39.4 195 % 215.8 63.4 240 %
Canada 29.1 27.1 7 % 49.2 43.6 13 %
Europe 14.9 16.0 (7)% 28.3 27.5 3 %
Latin America 1.2 1.5 (20)% 2.9 4.4 (34)%
OPERATING MARGINS
United States 11.1 % 8.6 % 9.9 % 6.9 %
Canada 11.2 % 11.1 % 9.7 % 9.4 %
Europe 6.8 % 7.3 % 6.4 % 6.5 %
Latin America 4.6 % 6.6 % 5.6 % 9.9 %
=============================================================================================================================
PER SHARE DATA
Cash earnings** $0.51 $ 0.41 24 % $ 0.86 $ 0.62 39 %
Net income $0.41 $ 0.36 14 % $ 0.65 $ 0.54 20 %
Dividends $0.08 $ 0.07 $ 0.15 $ 0.14
Book value $14.58 $ 12.42
=============================================================================================================================
FINANCIAL POSITION
Working capital 157.8 267.0
Total assets 6,529.8 3,859.1
Long-term debt 2,643.7 1,039.8
Shareholders' equity 2,359.4 1,735.1
Debt-to-equity ratio 53:47 37:63
=============================================================================================================================
</TABLE>
* Cash provided from operating activities, less capital expenditures net of
proceeds from disposals, and preferred share dividends.
** Net income before goodwill amortization, less net income available to holders
of preferred shares.
Page 8 of 14
<PAGE>
CONSOLIDATED STATEMENTS OF INCOME
Periods ended June 30
(In thousands of US dollars, except for earnings per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three months Six months
=======================================================================================================================
2000 1999 2000 1999
-----------------------------------------------------------------------------------------------------------------------
(Restated) (Restated)
(Note 1) (Note 1)
<S> <C> <C> <C> <C>
REVENUES $1,549,052 $ 944,323 $3,179,491 $1,854,838
Operating expenses:
Cost of sales 1,178,193 724,343 2,451,074 1,445,917
Selling, general and administrative 114,889 74,836 240,792 149,929
Amortization of fixed assets and deferred charges 88,278 59,402 181,687 116,726
-------------------------------------------------------------------------------------------------------------------
1,381,360 858,581 2,873,553 1,712,572
-----------------------------------------------------------------------------------------------------------------------
OPERATING INCOME 167,692 85,742 305,938 142,266
Financial expenses 54,466 15,889 115,560 33,673
-----------------------------------------------------------------------------------------------------------------------
Income before income taxes 113,226 69,853 190,378 108,593
Income taxes:
Current 10,525 11,862 20,923 18,035
Future 23,136 7,976 35,620 12,805
------------------------------------------------------------------------------------------------------------------
33,661 19,838 56,543 30,840
-----------------------------------------------------------------------------------------------------------------------
Income before non-controlling interest 79,565 50,015 133,835 77,753
Non-controlling interest 672 339 1,114 761
-----------------------------------------------------------------------------------------------------------------------
NET INCOME BEFORE GOODWILL AMORTIZATION 78,893 49,676 132,721 76,992
Goodwill amortization 16,120 4,412 32,339 8,543
-----------------------------------------------------------------------------------------------------------------------
NET INCOME $ 62,773 $ 45,264 $ 100,382 $ 68,449
Net income available to holders of preferred shares 2,533 2,544 5,115 5,021
-----------------------------------------------------------------------------------------------------------------------
Net income available to holders of equity shares $ 60,240 $ 42,720 $ 95,267 $ 63,428
=======================================================================================================================
EARNINGS PER SHARE $ 0.41 $ 0.36 $ 0.65 $ 0.54
EARNINGS PER SHARE BEFORE GOODWILL AMORTIZATION $ 0.51 $ 0.41 $ 0.86 $ 0.62
=======================================================================================================================
Average number of equity shares outstanding
(in thousands) 147,434 117,589 147,571 116,723
=======================================================================================================================
</TABLE>
Page 9 of 14
<PAGE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
Periods ended June 30
(In thousands of US dollars)
(Unaudited)
<TABLE>
<CAPTION>
Six months
==============================================================================================
2000 1999
----------------------------------------------------------------------------------------------
(Restated)
(Note 1)
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 100,382 $ 68,449
Non-cash items in net income:
Amortization of fixed assets 168,978 111,448
Amortization of goodwill and deferred charges 45,048 13,820
Amortization of deferred financing costs 4,180 828
Future income taxes 35,620 12,805
Other (137) 1,104
Changes in non-cash balances related to operations:
Trade receivables 140,205 83,130
Inventories 8,930 14,113
Trade payables and accrued liabilities (180,381) (74,989)
Other current assets and liabilities (18,872) 4,052
Other non-current assets and liabilities (14,474) (1,337)
----------------------------------------------------------------------------------------------
Cash provided from operating activities 289,479 233,423
FINANCING ACTIVITIES
Net change in bank indebtedness (2,541) (16,975)
Net proceeds from issuance of capital stock 2,051 158,946
Shares repurchased under a Normal Course Issuer Bid (12,842) --
Repayments of long-term debt (184,543) (248,755)
Dividends on equity shares (22,098) (16,233)
Dividends on preferred shares (5,074) (5,089)
Dividends to non-controlling interest -- (19)
----------------------------------------------------------------------------------------------
Cash used by financing activities (225,047) (128,125)
INVESTING ACTIVITIES
Business acquisitions, net of cash and cash equivalents (545) (51,645)
Additions to fixed assets (102,446) (72,939)
Net proceeds from disposal of non-core assets 23,919 8,278
----------------------------------------------------------------------------------------------
Cash used by investing activities (79,072) (116,306)
Effect of exchange rate changes on cash and cash equivalents 14,903 12,375
----------------------------------------------------------------------------------------------
Net increase in cash and cash equivalents 263 1,367
Cash and cash equivalents, beginning of period 3,613 309
----------------------------------------------------------------------------------------------
Cash and cash equivalents, end of period $ 3,876 $ 1,676
==============================================================================================
</TABLE>
Page 10 of 14
<PAGE>
CONSOLIDATED BALANCE SHEETS
(In thousands of US dollars)
<TABLE>
<CAPTION>
JUNE 30 December 31 June 30
(UNAUDITED) (Audited) (Unaudited)
================================================================================================================
2000 1999 1999
================================================================================================================
(Restated) (Restated)
(Note 1) (Note 1)
<S> <C> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 3,876 $ 3,613 $ 1,676
Trade receivables 586,380 743,305 621,217
Inventories 470,882 486,228 222,928
Future income taxes 32,185 36,385 35,385
Prepaid expenses 29,945 27,831 31,290
------------------------------------------------------------------------------------------------------------
1,123,268 1,297,362 912,496
Fixed assets, net of accumulated
amortization of $1,285,889, $1,180,316
and $1,108,180 respectively 2,795,690 2,895,307 2,178,420
Goodwill 2,474,426 2,526,707 670,790
Other assets 136,381 153,752 97,380
----------------------------------------------------------------------------------------------------------------
6,529,765 $ 6,873,128 $ 3,859,086
================================================================================================================
Liabilities and Shareholders' Equity
Current liabilities:
Bank indebtedness $ 3,094 $ 5,646 $ 4,331
Trade payables and accrued liabilities 903,236 1,103,171 549,665
Income and other taxes 17,762 38,751 54,001
Current portion of long-term debt 41,371 77,260 37,461
----------------------------------------------------------------------------------------------------------------
965,463 1,224,828 645,458
Long-term debt 2,435,337 2,582,911 949,775
Other liabilities 294,837 290,203 160,614
Future income taxes 285,497 255,000 294,202
Convertible debentures 166,982 179,752 52,583
Non-controlling interest 22,238 22,002 21,378
Shareholders' equity:
Capital stock 1,647,323 1,653,846 1,061,448
Contributed surplus 88,737 88,737 88,737
Other paid-in capital 17,976 20,831 --
Retained earnings 719,096 650,155 671,355
Translation adjustment (113,721) (95,137) (86,464)
----------------------------------------------------------------------------------------------------------------
2,359,411 2,318,432 1,735,076
----------------------------------------------------------------------------------------------------------------
$ 6,529,765 $ 6,873,128 $ 3,859,086
================================================================================================================
</TABLE>
Page 11 of 14
<PAGE>
NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars, except per share data)
(Unaudited)
1. ACCOUNTING CHANGE:
Effective January 1, 2000, the Canadian Institute of Chartered Accountants
("CICA") changed the accounting standards relating to the acccounting for
income taxes and the accounting for employee future benefits, including
pension and non-pension post-retirement benefits.
A) INCOME TAXES
In December 1997, the Accounting Standards Board issued Section 3465 of
the CICA Handbook, "Income Taxes". Under the asset and liability method
of Section 3465, future income tax assets and liabilities are
recognized for the estimated future tax consequences attributable to
differences between the financial statements carrying amounts of
existing assets and liabilities and their respective tax bases. Future
income tax assets and liabilities are measured using enacted tax rates
in effect for the year in which those temporary differences are
expected to be recovered or settled. The effect on future income tax
assets and liabilities of a change in tax rates is recognized in income
in the period that includes the enactment date. Future income tax
assets are recognized and if realization is not considered "more likely
than not", a valuation allowance is provided.
The Company has adopted in 2000 the new recommendations of the CICA and
has applied the provisions of Section 3465 retroactively to January
1989 when the Company was created. The cumulative effect of this change
in accounting for income taxes is reported as a restatement to increase
the opening balance of retained earnings as of January 1, 2000 by
$7,119 (an increase of $8,690 as of January 1, 1999).
Accordingly, the financial statements for the six months ended June 30,
1999 have been restated to comply with the provisions of Section 3465.
In addition to restating the future income tax accounts, an allocation
between short- and long-term portions is now presented in the
consolidated balance sheets.
B) EMPLOYEE FUTURE BENEFITS
In March 1999, the Accounting Standards Board issued Section 3461 of
the CICA Handbook,"Employee future benefits". Under the Section 3461,
the Company is required to accrue, during employees' active service
period, the estimated cost of pension, retiree benefit payment other
than pensions and workers' compensation. The Company previously
expensed the cost of post-retirement benefits other than pension, which
are principally health care, as claims were incurred by the employees
and paid by the Company. In addition, the Company will now use the
corridor method to amortize actuarial gains or losses (such as changes
in actuarial assumptions and experience gains or losses). Under the
corridor method, amortization is recorded only if the accumulated net
actuarial gains or losses exceed 10% of the greater of accrued pension
benefit obligation and the value of the plan assets. Previously,
actuarial gains and losses were amortized on a straight-line basis over
the average remaining service life of the employees.
Page 12 of 14
<PAGE>
The Company has elected to recognize this change in accounting on the
immediate recognition basis retroactively to January 1, 1992. The
cumulative effect of this change in accounting for pension and other
post-retirement benefits is reported as a restatement to decrease of
the opening balance of retained earnings as of January 1, 2000 by
$10,715 (a decrease of $9,694 as of January 1, 1999).
C) SUMMARY EFFECT
The following summarizes the impact of applying Sections 3465 and 3461
on net income, retained earnings, and earnings per share for the
quarter and the six months ended June 30, 1999. The presentation of
fixed assets, goodwill, future income taxes and other liabilities are
also affected by these changes.
<TABLE>
<CAPTION>
THREE MONTHS SIX MONTHS
===============================================================================================================
EARNINGS EARNINGS RETAINED
NET INCOME PER SHARE NET INCOME PER SHARE EARNINGS
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
As previously reported $ 45,890 $ 0.37 $ 70,113 $ 0.56 $ 674,023
Effect of Section 3465 (497) (0.01) (1,127) (0.02) 7,563
Effect of Section 3461, net of taxes (129) - (537) - (10,231)
---------------------------------------------------------------------------------------------------------------
As restated $ 45,264 $ 0.36 $ 68,449 $ 0.54 $ 671,355
===============================================================================================================
</TABLE>
Page 13 of 14
<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 WORLD INC.
By: (s) CLAUDINE TREMBLAY
----------------------------------
Name: Claudine Tremblay
Title: Assistant Secretary
Date: JULY 28, 2000
Page 14 of 14
