Acquisitions Boost Transcontinental’s Revenues; Agreement with Hearst Renegotiated
MONTREAL—Dec. 6, 2012—Transcontinental Inc. ended fiscal 2012 on a very good note, with revenues up 12.2 percent (from $521.6 million to $585.1 million ) in the fourth quarter. This increase is mainly due to the acquisition of Quad/Graphics Canada and acquisitions in the Media Sector, namely Redux Media. Excluding acquisitions and closures, and the impact of fluctuations in the exchange rate and paper, organic revenue growth was $0.8 million, or 0.2 percent.
Fourth-quarter adjusted operating income rose 20.5 percent, from $80.0 million to $96.4 million. This increase stems mainly from the synergies from the integration of Quad/Graphics Canada, the optimization of the operational structure of digital operations and a higher volume from educational book publishing activities.
Adjusted net income applicable to participating shares, which excludes unusual items and discontinued operations, rose 13.6 percent, from $54.5 million to $61.9 million, or $0.77 per share.
Net income applicable to participating shares declined, from $30.8 million to a loss of $51.9 million. This decrease stems mainly from a $57.2 million impairment charge of the carrying value of our U.S. deferred tax asset related to a decrease of activities in this country.
“I am especially pleased with how we have ended fiscal 2012, said François Olivier, president and CEO. “As expected, despite the volatile advertising market, revenues and profitability in the fourth quarter grew due to the contribution from the integration of Quad/Graphics Canada, Inc. and the good performance of the Media Sector.
“In 2012, thanks to the strategic acquisition of Quad/Graphics Canada, Inc., we confirmed our position as Canada’s largest printer. In the midst of this transaction, we integrated a certain number of the acquired plants into our state-of-the-art printing network in order to maximize the utilization of our most efficient equipment. Furthermore, we sold operations which we considered less strategic for the corporation over the longer term,” Olivier continued.