Transcontinental Reports Positive Trend in Q3 Financial Indicators
MONTREAL—September 8, 2010—For the fifth quarter in a row, Transcontinental improved its operating income, excluding unusual items, over the previous fiscal year. Management said the results stem primarily from the corporation’s diversified customer base of retailers, advertisers and publishers; its leading position in each of its niches; the success of its unique service offering which combines new digital and print platforms; the rationalization measures implemented in 2009; and the important contributions from print contracts signed in recent years.
• For a second consecutive quarter, positive organic growth in revenues, up 3.2% over 2009. Slight 0.8% decrease in consolidated revenues, mainly due to asset disposals.
• Adjusted operating income before amortization grew 9.2%, from $82.6 million in 2009 to $90.2 million in 2010, and operating income margin rose from 16.4% to 18.0%.
“I am very satisfied with the return to organic revenue growth for our second quarter in a row and the fact that all financial indicators were up in the third quarter of 2010 over the third quarter of 2009, which was, itself, higher than that of 2008,” said François Olivier, President and CEO of Transcontinental. “It is encouraging to see that all three sectors contributed to the organic growth in revenues, even as we continued to develop our offering to accompany our customers in their new marketing needs. I’d like to thank our employees for their commitment to always serving our customers better and for their daily efforts to improve efficiency.
“I am optimistic about the coming quarters, even though the economic context is still unstable,” said Olivier. “Our already enviable financial position should continue to improve given the dual impact of our higher operating income and, with the end of the major investments in print infrastructures, the decrease in our capital expenditures. We will thus be in an excellent position to make targeted strategic acquisitions in new media and digital technology. We will also continue to develop our offering to meet the growing demand from our customers for custom marketing programs tied in with one-to-one advertising and mobile technology. We will also continue to identify possibilities for synergies across the Corporation, notably by integrating our service offering and getting the most out of our top-performing equipment.”