Worldcolor Sees Income Jump on Lower Revenues for Third Quarter
MONTRÉAL—11/12/2009—Worldcolor (TSX: WC, WC.U) reported increased combined consolidated adjusted earnings before interest, tax, depreciation and amortization (adjusted EBITDA) in the third quarter of 2009 compared to the same period in the prior year, highlighting the company’s efforts to improve efficiencies and to align its cost structure with the current challenging economic environment.
In the third quarter of 2009, Worldcolor generated combined consolidated revenues from continuing operations of $769.9 million compared to $993.6 million in the third quarter of 2008.
Combined consolidated operating income in the third quarter of 2009 before impairment of assets, restructuring and other charges was $51.5 million compared to $33.7 million in the third quarter of 2008.
Combined consolidated adjusted EBITDA was $103.4 million in the third quarter of 2009 compared to $94.2 million in the third quarter of 2008. The higher adjusted EBITDA in the quarter resulted from increased operational efficiencies and ongoing cost-containment initiatives. In the third quarter of 2009 cost of sales decreased by 26% compared to the third quarter of 2008 while revenues in the third quarter 2009 decreased by 23% compared to the same period last year.
For the third quarter ended September 30, 2009, Worldcolor reported a combined consolidated net income of $13.3 million, compared to a net loss from continuing operations of $63.6 million for the same period in 2008. These results incorporated impairment of assets, restructuring and other charges (IAROC), net of income taxes, of $8.9 million compared with $5.1 million for the same period in 2008, as well as reorganization items of $13.0 million which, net of income taxes, compared to $24.0 million in the third quarter of 2008. In addition to the improvement in operating income, the Company benefited from reduced financial expense mainly due to gains on foreign exchange and lower interest expenses post emergence from creditor protection in July, 2009.