<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 THIRD QUARTER FINANCIAL RESULTS 2000
QUEBECOR WORLD 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>
Press Release
and
Consolidated Financial Statements
of
QUEBECOR WORLD INC.
Filed in this Form 6-K
Documents index
1. Press Release dated October 26, 2000 (#27/00)
2. Supplemental Disclosure for the third quarter ended September 30, 2000
3. Consolidated Financial Statements for the nine months period ended
September 30, 2000.
<PAGE>
OCTOBER 26, 2000 27/00
FOR IMMEDIATE RELEASE Page 1 of 3
QUEBECOR WORLD INC. ANNOUNCES RECORD RESULTS FOR
THIRD QUARTER 2000
*REVENUES UP 30 % TO US$1.6 BILLION
*CASH EPS UP 43 % TO US$0.70
*QUEBECOR WORLD INC. CONTINUES TO DEVELOP NEW MARKETS
WITH EXPANSION INTO BRAZIL
MONTREAL, CANADA - Quebecor World is pleased to announce another record quarter
and a special anniversary. It was one year ago the Company acquired World Color
Press in the U.S., making Quebecor World the global leader in its field. The
integration has gone better than we had expected since synergies and cost
savings are almost double earlier projections.
For the three months ended September 30, 2000, Quebecor World revenues reached
US$1.6 billion, a 30% increase over the same period last year. Operating income
totaled US$202 million, a 60% increase from the same quarter in 1999. Net income
was US$89 million, or US$0.58 per share, 35% over last year. Cash EPS reached
US$0.70 per share in 2000 compared to US$0.49 per share in 1999, a 43%
improvement.
"We continue to deliver improved year to year results while at the same time
managing the largest merger in the history of the commercial printing industry,"
said Charles G. Cavell, President and Chief Executive Officer of Quebecor World.
"Earnings targets are meeting and in some cases exceeding our expectations in
spite of the unfavorable impact of foreign exchange translation on our European
income."
The Company's revenues for the nine months ended September 30, 2000, reached
US$4.8 billion, a 55% increase over the same period last year. Operating income
increased 89%, reaching US$508 million for the first three quarters of 2000. Net
income improved 54% to US$189 million, or US$1.23 per share, from US$123
million, or US$0.97 per share, last year. Net income on a cash basis reached
US$1.56 per share, from US$1.11 per share for the corresponding period of 1999,
a 41% increase.
"We have now completed our first full year since the World Color acquisition. We
are significantly ahead of schedule with respect to the integration of
operations, which is approximately 80% complete. The synergies and cost savings
are close to double what we built into our business plan. We have kept every
promise we made at the time of merger, and fully expect that we will be able to
continue improving results, on all levels," stated Mr. Cavell.
<PAGE>
FOR IMMEDIATE RELEASE Page 2 of 3
Also during the quarter the Company announced its expansion into Brazil with the
signing of a contract with Abril S.A., the country's leading publisher of
consumer magazines.
"Our position in Latin America was reinforced by a new 10-year, US$170
million contract, allowing us to build our first printing facility in Recife,
Brazil," said Mr. Cavell. "We strongly believe there are significant growth
opportunities in Latin America. During the quarter we added management expertise
in the region to be better able to take advantage of opportunities as we move
forward."
The results of our European operations improved during the quarter, excluding
the unfavorable effect of the Euro devaluation, driven in part by our newly
strengthened management team combined with restructuring initiatives during the
first half of 2000.
Quebecor World continues to be focused on paying down and refinancing
acquisition bank debt. During the quarter the Company refinanced some of its'
long term debt to extend maturities. In September, the Company issued Senior
Notes of US$121 million, maturing in 2015 and 2020. This follows a placement of
US$250 million in July maturing in 2010 and 2012. Total proceeds have been used
to repay bank indebtedness incurred as a result of the World Color acquisition.
One of the results of these efforts is that Dominion Bond Rating Service removed
the negative outlook it had temporarily placed on Quebecor World and confirmed
the quality of its ratings.
As of September 30, the Company repurchased for cancellation under its Normal
Course Issuer Bid a total of 1,382,608 Subordinate Voting Shares for a total of
approximately CDN$46 million. The average cost per share was CDN$33.54. 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 $0.10 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 December 1st, 2000 to shareholders of record at the close of business on
November 16, 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 43,000 employees working in more than 160 printing and related
facilities in the United States, Canada, France, the United Kingdom, Spain,
Switzerland, Austria, Sweden, Finland, Chile, Argentina, Peru, Colombia, Mexico
and India.
<PAGE>
FOR IMMEDIATE RELEASE Page 3 of 3
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:
Jeremy Roberts Tony Ross
Director, Corporate Finance and Director, Corporate Communications
Investor Relations Quebecor World Inc.
Quebecor World Inc. (514) 877-5317
(514) 877-5118 (800) 567-7070
(800) 567-7070
QUEBECOR WORLD TO WEBCAST INVESTOR CONFERENCE CALL ON OCTOBER 27, 2000
Quebecor World Inc. (NYSE:TSE:IQW) will hold its quarterly investor
conference call to review third quarter and year-to-date financial results
Friday, October 27, 2000, at 8:30 a.m. EDT.
The live webcast is accessible via the Quebecor World website at
http://www.quebecorworld.com/htmen/20_0/20_1inv_1.htm and
http://www.ir-live.com/e/shows/2000.10.27.que
The call will last approximately one hour.
Prior to the call please make sure you have the appropriate software. The
Quebecor World Web address listed above has instructions and a direct link to
download the necessary software free of charge.
Anyone unable to attend this conference call may listen to a replay of the tape
by phoning (416) 695-5800 or (800) 308-3053 password 576100.
(Available from October 27 to November 10, 2000)
<PAGE>
QUEBECOR WORLD INC.
FINANCIAL HIGHLIGHTS
Periods ended September 30
(In millions of US dollars, except per share data)
<TABLE>
<CAPTION>
Three months Nine months
-------------------------------------------------------------------------------------------------------------------------
2000 1999 Change 2000 1999 Change
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CONSOLIDATED RESULTS
Revenues 1,633.8 1,257.1 30 % 4,813.3 3,111.9 55 %
Operating income before amortization 286.7 199.4 44 % 774.3 458.4 69 %
Operating income 202.4 126.8 60 % 508.3 269.1 89 %
Net income 88.7 54.7 62 % 189.1 123.1 54 %
Cash provided from operating activities 17.5 202.9 (91)% 307.0 436.3 (30)%
Free cash flow from operations* 0.1 180.2 206.0 343.9
Operating margin before amortization 17.5% 15.9% 16.1% 14.7%
Operating margin 12.4% 10.1% 10.6% 8.6%
-------------------------------------------------------------------------------------------------------------------------
SEGMENTED INFORMATION
REVENUES
United States 1,148.3 769.6 49 % 3,324.9 1,695.0 96 %
Canada 252.3 228.6 10 % 760.6 692.7 10 %
Europe 208.9 238.0 (12)% 654.1 660.3 (1)%
Latin America 26.7 21.7 23 % 78.4 66.2 18 %
OPERATING INCOME
United States 148.5 87.3 70 % 364.3 150.7 142 %
Canada 27.4 23.9 15 % 76.6 67.5 13 %
Europe 13.9 14.7 (5)% 42.2 42.2 - %
Latin America 0.7 0.8 - % 3.6 5.2 (31)%
OPERATING MARGINS
United States 12.9% 11.4% 11.0% 8.9%
Canada 10.9% 10.5% 10.1% 9.7%
Europe 6.7% 6.2% 6.5% 6.4%
Latin America 2.5% 3.4% 4.6% 7.8%
-------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Cash earnings** $ 0.70 $ 0.49 43 % $ 1.56 $ 1.11 41 %
Net income $ 0.58 $ 0.43 35 % $ 1.23 $ 0.97 27 %
Dividends $ 0.08 $ 0.07 $ 0.23 $ 0.21
Book value $ 14.73 $ 6.53
-------------------------------------------------------------------------------------------------------------------------
FINANCIAL POSITION
Working capital 306.7 328.3
Total assets 6,628.0 6,603.3
Long-term debt 2,670.0 2,929.2
Shareholders' equity 2,370.3 1,786.6
Debt-to-equity ratio 53:47 62:38
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Cash provided from operating activities, less capital expenditures net of
proceeds from disposals, and preferred share dividends.
** Earnings per share before goodwill amortization.
<PAGE>
This page is intentionally left blank.
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
SUPPLEMENTAL DISCLOSURE
FOR THE THIRD QUARTER
ENDED SEPTEMBER 30, 2000
QUEBECOR WORLD INC.
FOR RELEASE ON OCTOBER 26, 2000
www.quebecorworld.com/htmen/20_0/20_1inv_5.htm
-------------------------------------------------------------------------------
QUEBECOR WORLD
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TABLE OF CONTENTS PAGES
-------------------------------------------------------------------------------
<S> <C> <C>
1. Highlights 3
2. Recent Developments 5
3. Progress Report - Integration of Operations and Capital Spending 7
4. Management Appointments 9
5. Corporate Finance 11
6. Consolidated Results of Operations 14
7. Segmented Results of Operations 16
8. Breakdown of Revenues 21
9. Earnings Momentum 23
10. EPS Momentum 24
11. Margin Momentum 25
12. Financial Condition 27
</TABLE>
Certain information included in this document is forward-looking and is subject
to important risk and uncertainties. The results or events predicted in these
statements may differ materially from actual results or events. Factors which
could cause results or events to differ from current expectations include, among
other things: the impact of price and product competition; the impact of
technological and market change; the ability of Quebecor World Inc. to integrate
the operations of acquired businesses in an effective manner; general industry
and market conditions and growth rates, including interest rate and currency
exchange fluctuations; and the impact of consolidation in the printing industry.
ALL DOLLAR AMOUNTS IN THIS REVIEW OF OPERATIONS ARE IN US DOLLARS UNLESS
OTHERWISE STATED.
-------------------------------------------------------------------------------
QUEBECOR WORLD
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
1. HIGHLIGHTS
Revenues for the third quarter ended September 30, 2000 increased 30% to reach
$1.6 billion, compared with $1.3 billion for the corresponding period in 1999.
Net income amounted to $89 million, compared with $55 million last year, an
improvement of 62% over 1999.
EBITA for the third quarter of fiscal 2000 amounted to $287 million, compared
with $199 million for the third quarter of fiscal 1999. Operating income
increased by 60% to reach $202 million, compared with $127 million for the
corresponding period last year. The operating income margin for the quarter
improved from 10.1% in 1999 to 12.4% in 2000.
For the three-month period ended September 30, 2000, earnings per share amounted
to $0.58, an increase of 35% from $0.43 in 1999. On a cash basis, earnings per
share improved 43% to reach $0.70 in 2000, from $0.49 in 1999.
-------------------------------------------------------------------------------
QUEBECOR WORLD 3
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
---------------------------------------------------------------------------
1. HIGHLIGHTS (CONT'D)
For the nine months ended September 30, 2000, revenues amounted to $4.8 billion,
a 55% increase over $3.1 billion in 1999. Net income increased 54% to reach $189
million, from $123 million in 1999.
EBITA for the nine month period reached $774 million, a 69% increase over $458
million for 1999. Operating income for the period improved 89% to reach $508
million, compared with $269 million in 1999. The operating income margin
year-to-date has increased to 10.6% compared with 8.6% in 1999.
Earnings per share for the first nine months of 2000 were $1.23, a 27% increase
over $0.97 for 1999. Cash earnings per share totalled $1.56, compared with $1.11
for the corresponding period of 1999, an improvement of 41%.
Free cash flow from operations reached $206 million for the first nine months of
2000, compared with $344 million for the corresponding period in 1999: the lower
level of free cash flow reflects restructuring cash costs as expected, and the
settlement of acquisition related liabilities. In addition, approximately $93
million was invested during the third quarter in inventories in preparation for
the fourth quarter. As well, there was an increase in accounts receivable of
approximately $150 million due to seasonality. Management's focus remains to pay
down debt arising from the acquisition of World Color. The debt to equity ratio
remained at 53:47 at the end of September 30, 2000 and June 30, 2000 compared to
55:45 at December 31, 1999 and 59:41 at September 30, 1999.
-------------------------------------------------------------------------------
QUEBECOR WORLD 4
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
2. RECENT DEVELOPMENTS
SALE OF CD-ROM REPLICATION BUSINESS
During the third quarter, Quebecor World closed the sale of its North American
CD replicating and fufillment facilities in Fife, Washington and Westborough,
Massachusetts to Vancouver-based Q-Media for a total consideration of $63
million. The sale is comprised of $42 million received in cash, $5 million of
Common shares of Q-Media and $16 million of Preferred shares.
This divestiture completes our program initiated during 1998 to exit non-core
operations. The cash component of the sale price will be used for general
corporate purposes, including, but not limited to, the purchase of shares under
the company's normal course issuer bid announced in April.
-------------------------------------------------------------------------------
QUEBECOR WORLD 5
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
---------------------------------------------------------------------------
2. RECENT DEVELOPMENT (CONT'D)
RECIFE, BRAZIL
Quebecor World announced in September 2000 the signing of a 10-year agreement
with Editorial Abril S.A. to print 80 million magazines per year. The total
value of the contract over ten years exceeds $170 million, excluding the cost of
paper.
To produce this work, Quebecor World Latin America is constructing a new
facility in an industrial park near Recife, Brazil's fourth largest city.
Approximately 250 people will be employed in a plant of 173,000-sq ft. Digital
content will be transmitted via satellite from Sao Paolo to Recife and then
output on state of the art computer to plate equipment. Total planned capital
spending of approximately $16.5 million will include three modern heatset
offset presses, four stitchers with selectivity and ink jet personalization, and
other finishing and packaging equipment. It is expected that the plant will be
operational during the first quarter of 2001.
FRANCE RESTRUCTURING PLAN
During the quarter, the company successfully completed the transfer and
reinstallation of presses from its Bondoufle plant, shutdown at the end of the
second quarter.
The negotiation and ultimate shutdown of Bondoufle took place at the same time
the company successfully negotiated an agreement with employee groups to
implement the 35 hours/week in its French plants, reorganizing working schedules
with minimal impact on its overall results.
-------------------------------------------------------------------------------
QUEBECOR WORLD 6
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
3. PROGRESS REPORT - INTEGRATION OF OPERATIONS AND CAPITAL SPENDING
As of September 30, Quebecor World has completed restructuring initiatives that
are providing annualized cost savings and synergies in excess of $80 million.
Further initiatives to be completed in 2000 (such as the integration of certain
activities from Dresden to Buffalo) or planned for 2001, are expected to bring
total annualized savings to a level consistent with management's earlier
projections of $100 millions by 2002.
<TABLE>
<CAPTION>
KEY PROJECTS STATUS
------------------------------ -------------------------------------------------------------
<S> <C>
Corporate services integration Completed.
Sales' force integration Completed.
Digital services Completed.
San Jose Closed in December 1999 and equipment transfer underway.
Sherwood Production transferred effective January 31, 2000.
Houston Closed effective January 31, 2000.
Nashville Closed effective March 31, 2000.
St-Paul Closed effective April 10, 2000.
Vermont Closed effective July 31, 2000.
Dresden Closure to be completed by December 31, including integration
of certain activities from Dresden into Buffalo.
Pawtucket Integration of three plants underway.
</TABLE>
-------------------------------------------------------------------------------
QUEBECOR WORLD 7
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
3. PROGRESS REPORT - INTEGRATION OF OPERATIONS AND CAPITAL SPENDING (CONT'D)
CASH RESTRUCTURING COSTS
As a result of the restructuring plan adopted in 1999, the Company has incurred
to date $54 million of cash restructuring costs and expects to spend $18 million
in the fourth quarter of 2000.
CAPITAL INVESTMENT
As of September 30, 2000, the Company had invested $160 million in capital
spending and is still targeting a total of $250 million for the year 2000.
Capital investments related to the restructuring plan are expected to be close
to $65 million while expenditures related to maintenance and environmental
compliance will amount to approximately $55 million. The balance of the
investment plan of approximately $130 million represents growth capital to
support customer requirements and to grow the business through incremental
manufacturing capacity.
-------------------------------------------------------------------------------
QUEBECOR WORLD 8
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
4. MANAGEMENT APPOINTMENTS
Key management appointments made during the third quarter of 2000 are discussed
below.
QUEBECOR WORLD - EUROPE
Vincent Bastien, a new addition to the company with extensive experience in
general management and senior marketing positions, was appointed to the position
of Chief Operating Officer Europe. As an interim step, Mr. Bastien will operate
as President and General Manager, France, allowing him to transition into his
new role and to improve the company's position in it's largest European market.
John Dickin, currently Managing Director U.K., will oversee the rest of Quebecor
World Europe in the newly created position of Executive Vice President for
Operations, reponsible for business units in Spain, Norden, the U.K. and
Austria, and will continue reporting to John Bertuccini, President, Quebecor
World Europe.
QUEBECOR WORLD - LATIN AMERICA
Sean Twomey, previously Vice President, Business Development for Quebecor World,
was appointed Senior Vice President, Latin America. Sean's appointment, given
his significant experience in acquisitions for the past 10 years and management
experience prior to that in the directory market segment, reflects the company's
focus to further develop its market position in Latin America. He also bring
more depth to the management team that recent undertook a greenfield project in
Recife, Brazil. Because of the importance of this greenfield plant, this will be
his initial priority.
-------------------------------------------------------------------------------
QUEBECOR WORLD 9
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
4. MANAGEMENT APPOINTMENTS (CONT'D)
QUEBECOR WORLD
Claire Lanctot, with significant experience in the Mergers and Acquisitions area
and as Senior Finance Executive, was appointed to the position of Vice
President, Business Development for Quebecor World. Prior to this appointment,
Ms. Lanctot worked with Quebecor World on a number of key projects, including
the industry exchange, other industry initiatives and the recent divestiture of
the CD-ROM Replication Business.
-------------------------------------------------------------------------------
QUEBECOR WORLD 10
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
5. CORPORATE FINANCE
DEBT TO EQUITY RATIO
[GRAPHIC]
<TABLE>
<S> <C> <C>
Q2' 99 Share Issue Acquisition Pre-Funding (June 4) 37%
Q3' 99 Step I Cash tender offer (August 20) 62%
Q4' 99 Step II Merger (October 8) 57%
Q4' 99 1999 Year-end 55%
Q1' 00 2000 Quarter 1 54%
Q2' 00 2000 Quarter 2 53%
Q3' 00 2000 Quarter 3 53%
Dec. 00 2000 Year-end Target 50%
</TABLE>
PRIVATE PLACEMENT OF LONG TERM DEBT
During the third quarter 2000, Quebecor World raised $371 million through the
issuance of Senior Notes in the US debt capital markets. Proceeds from these
offerings were applied to the reduction of acquisition bank debt incurred as a
result of the Merger with World Color.
The main objectives pursued by these financings were to diversify funding
sources and extend debt maturities.
-------------------------------------------------------------------------------
QUEBECOR WORLD 11
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
5. CORPORATE FINANCE (CONT'D)
BANK BORROWINGS
WORLD COLOR ACQUISITION FACILITY
[GRAPHIC]
Initial limit 1,250 M
<TABLE>
<S> <C> <C>
Aug-99 900 M World Color Acquisition
Sep-99 900 M
Dec-99 925 M
Mar-00 680 M
Jun-00 665 M
Sep-00 405 M US $371 Private Placement of Senior Notes
</TABLE>
-------------------------------------------------------------------------------
QUEBECOR WORLD 12
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
5. CORPORATE FINANCE (CONT'D)
NORMAL COURSE ISSUER BID
As of September 30, 2000, Quebecor World had repurchased for cancellation a
total of 1,382,608 shares under its Normal Course Issuer Bid, announced April 4,
2000. The total cash cost of approximately $46 million CDN ($32 million US)
represents an average cost per share of $33.54 CDN ($22.79 US). The issuer bid
is being funded with cash proceeds from the sale of non-core business and other
assets made redundant as a result of the restructuring of the manufacturing
platform in the US.
<TABLE>
<CAPTION>
SOURCES OF FUNDING FOR
NORMAL COURSE ISSUER BID
(IN MILLION OF US DOLLARS)
<S> <C>
Proceed from sales of non-core business and other assets to date $68,478
Premium on puts sold 1,201
-------
Total funding to date 69,679
-------
-------
Shares repurchased to date $31,512
-------
-------
</TABLE>
In addition, the Corporation has committed to purchase for cancellation 775,000
shares at an average price per share of approximately $35.67 CDN for settlement
from January to April 2001.
-------------------------------------------------------------------------------
QUEBECOR WORLD 13
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
6. CONSOLIDATED RESULTS OF OPERATIONS
<TABLE>
<CAPTION>
SELECTED CONSOLIDATED FINANCIAL INFORMATION
FOR THE THIRD QUARTERS ENDED SEPTEMBER 30
2000 Change 1999
(IN $ MILLIONS EXCEPT MARGINS AND PER SHARE DATA) ACTUAL vs. 99 Actual
-------- ------ --------
<S> <C> <C> <C>
Revenues $1,633.8 +30% $1,257.1
EBITA 286.7 +44% 199.4
Operating income 202.3 +60% 126.8
Net income - cash basis 104.4 +69% 61.9
Net income 88.7 +62% 54.7
Earnings per share $ 0.58 +35% $ 0.43
Earnings per share - cash basis 0.70 +43% 0.49
EBITA margin 17.5% 15.9%
Operating margin 12.4% 10.1%
</TABLE>
-------------------------------------------------------------------------------
QUEBECOR WORLD 14
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
6. CONSOLIDATED RESULTS OF OPERATIONS (CONT'D)
<TABLE>
<CAPTION>
SELECTED CONSOLIDATED FINANCIAL INFORMATION
FOR THE NINE MONTHS ENDED SEPTEMBER 30
2000 Change 1999
(IN $ MILLIONS EXCEPT MARGINS AND PER SHARE DATA) ACTUAL vs. 99 Actual
-------- ------ --------
<S> <C> <C> <C>
Revenues $4,813.3 +55% $3,112.0
EBITA 774.3 +69% 458.4
Operating income 508.3 +89% 269.1
Net income - cash basis 237.1 +71% 138.8
Net income 189.1 +54% 123.1
Earnings per share $ 1.23 +27% $ 0.97
Earnings per share - cash basis 1.56 +41% 1.11
EBITA margin 16.1% 14.7%
Operating margin 10.6% 8.6%
</TABLE>
-------------------------------------------------------------------------------
QUEBECOR WORLD 15
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
7. SEGMENTED RESULTS OF OPERATIONS
<TABLE>
<CAPTION>
SELECTED PERFORMANCE INDICATORS - UNITED STATES
FOR THE THIRD QUARTERS ENDED SEPTEMBER 30
2000 Change 1999
(IN $ MILLIONS EXCEPT MARGINS) ACTUAL vs. 99 Actual
------- ------ --------
<S> <C> <C> <C>
Revenues $1,148.2 +49% $ 769.6
EBITA 207.1 +56% 132.6
Operating income 148.5 +70% 87.4
EBITA margin 18.0% 17.2%
Operating margin 12.9% 11.4%
FOR THE NINE MONTHS ENDED SEPTEMBER 30
Revenues $3,324.9 +96% $1,695.0
EBITA 551.1 +111% 261.2
Operating income 364.4 +142% 150.7
EBITA margin 16.6% 15.4%
Operating margin 11.0% 8.9%
</TABLE>
-------------------------------------------------------------------------------
QUEBECOR WORLD 16
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
7. SEGMENTED RESULTS OF OPERATIONS (CONT'D)
<TABLE>
<CAPTION>
SELECTED PERFORMANCE INDICATORS - CANADA
FOR THE THIRD QUARTERS ENDED SEPTEMBER 30
2000 Change 1999
(IN $ MILLIONS EXCEPT MARGINS) ACTUAL vs. 99 Actual
------ ------ ------
<S> <C> <C> <C>
Revenues $252.3 +10% $228.6
EBITA 39.4 +12% 35.3
Operating income 27.4 +14% 23.9
EBITA margin 15.6% 15.4%
Operating margin 10.9% 10.5%
FOR THE NINE MONTHS ENDED SEPTEMBER 30
Revenues $760.6 +10% $692.7
EBITA 112.8 +11% 101.4
Operating income 76.6 +13% 67.5
EBITA margin 14.8% 14.6%
Operating margin 10.1% 9.7%
</TABLE>
-------------------------------------------------------------------------------
QUEBECOR WORLD 17
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
7. SEGMENTED RESULTS OF OPERATIONS (CONT'D)
<TABLE>
<CAPTION>
SELECTED PERFORMANCE INDICATORS - EUROPE (US$)
FOR THE THIRD QUARTERS ENDED SEPTEMBER 30
2000 Change 1999
(IN $ MILLIONS EXCEPT MARGINS) ACTUAL vs. 99 Actual
------ ------ ------
<S> <C> <C> <C>
Revenues $208.9 -12% $238.0
EBITA 25.9 -10% 28.8
Operating income 13.9 -5% 14.7
EBITA margin 12.4% 12.1%
Operating margin 6.7% 6.2%
FOR THE NINE MONTHS ENDED SEPTEMBER 30
Revenues $654.1 -1% $660.3
EBITA 79.4 -3% 81.8
Operating income 42.2 - 42.2
EBITA margin 12.1% 12.4%
Operating margin 6.5% 6.4%
</TABLE>
-------------------------------------------------------------------------------
QUEBECOR WORLD 18
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
7. SEGMENTED RESULTS OF OPERATIONS (CONT'D)
<TABLE>
<CAPTION>
SELECTED PERFORMANCE INDICATORS - EUROPE ([EURO])
FOR THE THIRD QUARTERS ENDED SEPTEMBER 30
2000 Change 1999
(IN MILLIONS OF EURO EXCEPT MARGINS) ACTUAL vs. 99 Actual
------ ------ ------
<S> <C> <C> <C>
Revenues [EURO]231.3 +2% [EURO]226.8
EBITA 28.9 +5% 27.4
Operating income 15.5 +11% 13.9
EBITA margin 12.5% 12.1%
Operating margin 6.7% 6.1%
FOR THE NINE MONTHS ENDED SEPTEMBER 30
Revenues [EURO]695.2 +13% [EURO]614.9
EBITA 85.0 +11% 76.4
Operating income 45.2 +15% 39.5
EBITA margin 12.2% 12.4%
Operating margin 6.5% 6.4%
</TABLE>
-------------------------------------------------------------------------------
QUEBECOR WORLD 19
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
7. SEGMENTED RESULTS OF OPERATIONS (CONT'D)
<TABLE>
<CAPTION>
SELECTED PERFORMANCE INDICATORS - LATIN AMERICA
FOR THE THIRD QUARTERS ENDED SEPTEMBER 30
2000 Change 1999
(IN $ MILLIONS EXCEPT MARGINS) ACTUAL vs. 99 Actual
------ ------ ------
<S> <C> <C> <C>
Revenues $26.7 +23% $21.8
EBITA 2.1 -8% 2.3
Operating income 0.7 - 0.7
EBITA margin 7.8% 10.5%
Operating margin 2.5% 3.4%
FOR THE NINE MONTHS ENDED SEPTEMBER 30
Revenues $78.4 +18% $66.2
EBITA 8.2 -13% 9.4
Operating income 3.6 -13% 5.2
EBITA margin 10.5% 14.3%
Operating margin 4.6% 7.8%
</TABLE>
-------------------------------------------------------------------------------
QUEBECOR WORLD 20
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
8. BREAKDOWN OF REVENUES
<TABLE>
<CAPTION>
BREAKDOWN OF REVENUES - CONSOLIDATED
FOR THE THIRD QUARTER ENDED SEPTEMBER 30
2000 Change 1999
(IN $ MILLIONS) ACTUAL vs. 99 Actual
-------- ------ --------
<S> <C> <C> <C>
Magazines $ 448.2 +18% $ 381.3
Retail inserts 288.2 +1% 286.4
Catalogs 291.1 +45% 201.4
Specialty printing and direct mail 220.1 +118% 100.9
Books 196.2 +19% 164.8
Directories 85.4 +53% 55.7
Pre-media, logistics and other value added services 104.6 +57% 66.6
Total $1,633.8 +30% $1,257.1
</TABLE>
-------------------------------------------------------------------------------
QUEBECOR WORLD 21
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
8. BREAKDOWN OF REVENUES (CONT'D)
<TABLE>
<CAPTION>
BREAKDOWN OF REVENUES - CONSOLIDATED
FOR THE NINE MONTHS ENDED SEPTEMBER 30
2000 Change 1999
(IN $ MILLIONS) ACTUAL vs. 99 Actual
-------- ------ --------
<S> <C> <C> <C>
Magazines $1,351.4 +43% $ 947.4
Retail inserts 829.8 +24% 667.4
Catalogs 785.6 +68% 468.0
Specialty printing and direct mail 697.9 +150% 279.1
Books 596.5 +41% 422.4
Directories 260.4 +77% 147.2
Pre-media, logistics and other value added services 291.7 +62% 180.5
Total $4,813.3 +55% $3,112.0
</TABLE>
-------------------------------------------------------------------------------
QUEBECOR WORLD 22
<PAGE>
Third Quarter 2000 - Supplemental Disclosure
-------------------------------------------------------------------------------
9. EARNINGS MOMENTUM
DISCUSSION OF CONSENSUS EARNINGS: 1998 - 2001
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE (1)
----------------------------------------------------------------------------------------------------------------
FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER FULL YEAR
EPS % EPS % EPS % EPS % EPS %
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1998 $0.16 +7% $0.31 +15% $0.38 +27% $0.44 +10% $1.29 +15%
1999 $0.18 +13% $0.36 +16% $0.43 +13% $0.58 +32% $1.55 +20%
2000 $0.24 +33% $0.41 +14% $0.58 +35% $0.70(2) +21% $1.93(3) +25%
2001(4) $0.28 +17% $0.48 +17% $0.67 +16% $0.82 +17% $2.25 +17%
----------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
CASH EARNINGS PER SHARE (1)
----------------------------------------------------------------------------------------------------------------
FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER FULL YEAR
EPS % EPS % EPS % EPS % EPS %
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1998 $0.19 +12% $0.33 +14% $0.43 +30% $0.49 +14% $1.44 +18%
1999 $0.21 +11% $0.41 +24% $0.49 +14% $0.69 +41% $1.80 +25%
2000 $0.35 +67% $0.51 +24% $0.70 +43% $0.81(2) +17% $2.37(3) +32%
2001(4) $0.39 +11% $0.58 +14% $0.78 +11% $0.93 +15% $2.68 +13%
----------------------------------------------------------------------------------------------------------------
</TABLE>
1 PRIOR YEAR RESULTS HAVE BEEN RESTATED TO REFLECT CHANGES IN ACCOUNTING
POLICIES RELATING TO FUTURE INCOME TAXES AND EMPLOYEE FUTURE BENEFITS.
2 CONSENSUS ACCORDING TO FIRST CALL, A THOMSON FINANCIAL COMPANY, AS OF OCTOBER
25, 2000.
3 FULL YEAR ESTIMATE BASED ON NINE MONTHS ACTUAL AND FOURTH QUARTER CONSENSUS
EARNINGS ACCORDING TO FIRST CALL, A THOMSON FINANCIAL COMPANY, AS OF OCTOBER
25, 2000.
4 QUARTERLY INTERPOLATION OF FIRST CALL 2001 ANNUAL CONSENSUS AS OF OCTOBER 25,
2000.
-------------------------------------------------------------------------------
QUEBECOR WORLD 23
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
10. EPS MOMENTUM
EARNINGS PER SHARE
<TABLE>
<CAPTION>
QUARTER 1 QUARTER 2
<C> <C> <C> <C> <C> <C> <C> <C>
0.14 0.16 0.18 0.24 0.27 0.31 0.36 0.41
1997 1998 1999 2000 1997 1998 1999 2000
</TABLE>
<TABLE>
<CAPTION>
QUARTER 3 QUARTER 4
<C> <C> <C> <C> <C> <C> <C> <C>
0.30 0.38 0.43 0.58 0.40 0.44 0.58 0.70
1997 1998 1999 2000 1997 1998 1999 2000*
</TABLE>
* Estimate at consensus
-------------------------------------------------------------------------------
QUEBECOR WORLD 24
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
11. MARGIN MOMENTUM
EBITA MARGINS
<TABLE>
<CAPTION>
QUARTER 1 QUARTER 2
<C> <C> <C> <C> <C> <C> <C> <C>
12.0% 11.7% 12.5% 14.2% 14.0% 14.4% 15.4% 16.5%
1997 1998 1999 2000 1997 1998 1999 2000
</TABLE>
<TABLE>
<CAPTION>
QUARTER 3 QUARTER 4
<C> <C> <C> <C> <C> <C> <C> <C>
14.5% 15.4% 15.9% 17.5% 14.3% 15.0% 16.3%
1997 1998 1999 2000 1997 1998 1999 2000
</TABLE>
-------------------------------------------------------------------------------
QUEBECOR WORLD 25
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
11. MARGIN MOMENTUM (CONT'D)
EBIT MARGINS
<TABLE>
<CAPTION>
QUARTER 1 QUARTER 2
<C> <C> <C> <C> <C> <C> <C> <C>
5.7% 5.7% 6.2% 8.5% 8.0% 8.3% 9.1% 10.8%
1997 1998 1999 2000 1997 1998 1999 2000
</TABLE>
<TABLE>
<CAPTION>
QUARTER 3 QUARTER 4
<C> <C> <C> <C> <C> <C> <C> <C>
8.7% 9.4% 10.1% 12.4% 9.2% 9.5% 11.0%
1997 1998 1999 2000 1997 1998 1999 2000
</TABLE>
-------------------------------------------------------------------------------
QUEBECOR WORLD 26
<PAGE>
Third Quarter 2000 - Supplemental Disclosure
-------------------------------------------------------------------------------
12. FINANCIAL CONDITION
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(IN $ MILLIONS EXCEPT FINANCIAL RATIOS) SEPTEMBER 30, 2000 December 31, 1999 September 30, 1999
------------------ ----------------- ------------------
<S> <C> <C> <C>
Non-cash working capital $ 345.3 $ 151.8 $ 369.5
Net fixed assets 2,671.6 2,895.3 3,080.6
Total assets 6,628.0 6,873.1 6,603.3
Shareholders' equity 2,370.3 2,318.4 1,786.6
Long-term debt 2,518.8 2,660.2 2,724.4
Convertible debentures 151.2 179.8 204.7
Debt:Equity 53:47 55:45 62:38
EBITA Coverage ratio * 4.6 6.2 7.8
EBIT Coverage Ratio * 3.0 3.9 4.7
</TABLE>
* TRAILING 12 MONTHS
-------------------------------------------------------------------------------
QUEBECOR WORLD 27
<PAGE>
THIRD QUARTER 2000 - SUPPLEMENTAL DISCLOSURE
-------------------------------------------------------------------------------
12. FINANCIAL CONDITION (CONT'D)
<TABLE>
<CAPTION>
SUMMARY CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30
(IN $ MILLIONS) 2000 Change 1999
ACTUAL vs. 99 Actual
------- ------ -------
<S> <C> <C> <C>
Net income $ 189.1 +54% $ 123.1
Items not involving cash 367.0 +56% 234.5
Change in non-cash balances related to operations
Restructuring activities and related items (73.9) -
Inventories (84.2) (10.3)
Other (91.0) 89.1
------- ------ -------
Cash provided by operations 307.0 436.4
Additions to fixed assets, net of dispositions (149.2) (108.8)
Sale of non-core business and other assets
- CD Replication and Fullfilment activities 42.9 -
- Share of MDC Communications Corporation 12.9 -
- Banknote business - 23.9
------- ------ -------
Dividends on preferred shares (7.6) (7.6)
FREE CASH FLOW FROM OPERATIONS BEFORE INVESTMENT, BUSINESS
ACQUISITIONS AND FINANCING ACTIVITIES 206.0 343.9
------- ------ -------
------- ------ -------
</TABLE>
-------------------------------------------------------------------------------
QUEBECOR WORLD 28
<PAGE>
This page is intentionally left blank.
<PAGE>
CONSOLIDATED STATEMENTS OF INCOME
Periods ended September 30
(In thousands of US dollars, except for earnings per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS NINE MONTHS
---------------------------------------------------------------------------------------------------------------------
2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------
(Restated) (Restated)
(Note 1) (Note 1)
<S> <C> <C> <C> <C>
REVENUES $ 1,633,766 $ 1,257,143 $ 4,813,258 $ 3,111,981
Operating expenses:
Cost of sales 1,246,014 967,433 3,697,088 2,413,350
Selling, general and administrative 101,082 90,298 341,874 240,227
Amortization of fixed assets and deferred charges 84,326 72,584 266,014 189,310
----------------------------------------------------------------------------------------------------------------
1,431,422 1,130,315 4,304,976 2,842,887
---------------------------------------------------------------------------------------------------------------------
OPERATING INCOME 202,344 126,828 508,282 269,094
Financial expenses 59,507 27,574 175,066 61,247
---------------------------------------------------------------------------------------------------------------------
Income before income taxes 142,837 99,254 333,216 207,847
Income taxes:
Current 19,682 15,090 40,605 33,125
Future 18,256 13,098 53,876 25,903
---------------------------------------------------------------------------------------------------------------
37,938 28,188 94,481 59,028
---------------------------------------------------------------------------------------------------------------------
Income before non-controlling interest 104,899 71,066 238,735 148,819
Non-controlling interest 501 9,212 1,616 9,973
---------------------------------------------------------------------------------------------------------------------
NET INCOME BEFORE GOODWILL AMORTIZATION 104,398 61,854 237,119 138,846
Goodwill amortization 15,699 7,195 48,039 15,738
---------------------------------------------------------------------------------------------------------------------
NET INCOME $ 88,699 $ 54,659 $ 189,080 $ 123,108
Net income available to holders of preferred shares 2,531 2,523 7,646 7,544
---------------------------------------------------------------------------------------------------------------------
Net income available to holders of equity shares $ 86,168 $ 52,136 $ 181,434 $ 115,564
---------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE $ 0.58 $ 0.43 $ 1.23 $ 0.97
EARNINGS PER SHARE BEFORE GOODWILL AMORTIZATION $ 0.70 $ 0.48 $ 1.56 $ 1.11
---------------------------------------------------------------------------------------------------------------------
Average number of equity shares outstanding
(in thousands) 146,591 122,596 147,321 118,680
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
Periods ended September 30
(In thousands of US dollars)
(Unaudited)
<TABLE>
<CAPTION>
NINE MONTHS
---------------------------------------------------------------------------------------------------------------------
2000 1999
---------------------------------------------------------------------------------------------------------------------
(Restated)
(Note 1)
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 189,080 $ 123,108
Non-cash items in net income:
Amortization of fixed assets 249,228 181,807
Amortization of goodwill and deferred charges 64,825 23,242
Amortization of deferred financing costs 6,267 734
Future income taxes 53,876 25,903
Other (7,210) 2,762
Changes in non-cash balances related to operations:
Trade receivables (9,283) 158,367
Inventories (84,194) (10,290)
Trade payables and accrued liabilities (152,315) (93,131)
Other current assets and liabilities 839 28,128
Other non-current assets and liabilities (4,111) (4,297)
----------------------------------------------------------------------------------------------------------------
Cash provided from operating activities 307,002 436,333
FINANCING ACTIVITIES
Net change in bank indebtedness (1,616) (21,445)
Net proceeds from issuance of capital stock 1,992 159,498
Shares repurchased under a Normal Course Issuer Bid (33,228) --
Net issuance (repayments) of long-term debt (141,021) 302,510
Dividends on equity shares (33,881) (24,917)
Dividends on preferred shares (7,615) (7,615)
Dividends to non-controlling interest (36) (713)
---------------------------------------------------------------------------------------------------------------------
Cash used by financing activities (215,405) 407,318
INVESTING ACTIVITIES
Business acquisitions, net of cash and cash equivalents (5,344) (772,165)
Additions to fixed assets (160,985) (112,159)
Net proceeds from disposal of non-core assets and other assets 67,552 27,298
Investment in an affiliated company (16,901) --
----------------------------------------------------------------------------------------------------------------
Cash used by investing activities (115,678) (857,026)
Effect of exchange rate changes on cash and cash equivalents 23,700 16,871
---------------------------------------------------------------------------------------------------------------------
Net increase in cash and cash equivalents (381) 3,496
Cash and cash equivalents, beginning of period 3,613 309
---------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of period $ 3,232 $ 3,805
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
CONSOLIDATED BALANCE SHEETS
(In thousands of US dollars)
<TABLE>
<CAPTION>
SEPTEMBER 30 December 31 September 30
(Unaudited) (Audited) (Unaudited)
---------------------------------------------------------------------------------------------------------------------
2000 1999 1999
---------------------------------------------------------------------------------------------------------------------
(Restated) (Restated)
(Note 1) (Note 1)
<S> <C> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 3,232 $ 3,613 $ 3,805
Trade receivables 712,282 743,305 747,126
Inventories 550,186 486,228 564,922
Future income taxes 41,130 36,385 36,385
Prepaid expenses 28,580 27,831 39,882
----------------------------------------------------------------------------------------------------------------
1,335,410 1,297,362 1,392,120
Fixed assets, net of accumulated
amortization of $1,302,678, $1,180,316
and $1,166,802 respectively 2,671,640 2,895,307 3,080,643
Goodwill 2,464,778 2,526,707 1,990,509
Other assets 156,175 153,752 140,044
---------------------------------------------------------------------------------------------------------------------
$ 6,628,003 $ 6,873,128 $ 6,603,316
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities:
Bank indebtedness $ 3,723 $ 5,646 $ 4,397
Trade payables and accrued liabilities 945,858 1,103,171 997,367
Income and other taxes 40,977 38,751 21,435
Current portion of long-term debt 38,115 77,260 40,628
----------------------------------------------------------------------------------------------------------------
1,028,673 1,224,828 1,063,827
Long-term debt 2,480,708 2,582,911 2,683,814
Other liabilities 331,033 290,203 260,938
Future income taxes 246,160 255,000 328,375
Convertible debentures 151,178 179,752 204,727
Non-controlling interest 19,915 22,002 275,048
Shareholders' equity:
Capital stock 1,635,727 1,653,846 1,061,994
Contributed surplus 88,737 88,737 88,737
Other paid-in capital 14,525 20,831 --
Retained earnings 783,921 650,155 714,804
Translation adjustment (152,574) (95,137) (78,948)
----------------------------------------------------------------------------------------------------------------
2,370,336 2,318,432 1,786,587
---------------------------------------------------------------------------------------------------------------------
$ 6,628,003 $ 6,873,128 $ 6,603,316
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
</TABLE>
<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 postretirement 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 nine months ended
September 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 postretirement 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>
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
postretirement 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 nine months ended September 30, 1999. The presentation
of fixed assets, goodwill, future income taxes and other liabilities
are also affected by these changes.
<TABLE>
<CAPTION>
THREE MONTHS NINE MONTHS
---------------------------------------------------------------------------------------------------------------
EARNINGS EARNINGS RETAINED
NET INCOME PER SHARE NET INCOME PER SHARE EARNINGS
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
As previously reported $ 55,650 $ 0.44 $ 125,763 $ 1.00 $ 718,463
Effect of Section 3465 (722) (0.01) (1,849) (0.02) 6,841
Effect of Section 3461, net of taxes (269) -- (806) (0.01) (10,500)
---------------------------------------------------------------------------------------------------------------
As restated $ 54,659 $ 0.43 $ 123,108 $ 0.97 $ 714,804
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
</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 WORLD INC.
By: /s/ CARL GAUVREAU
----------------------------------------
Name: Carl Gauvreau
Title: Vice President and Corporate Controller
Date: OCTOBER 26, 2000
