Despite Difficult Economy, Transcontinental Improves Profitability
In the first nine months of fiscal 2009, consolidated revenue amounted to $1.701 billion, down 4% from $1.776 billion in 2008. Adjusted operating income before amortization decreased 11%, from $253.2 million to $225 million. Net income went from $100.9 million in 2008 to a loss of $125.4 million in 2009, largely due to impairment of intangible assets and the write-off of goodwill related primarily to marketing product printing activities, and to the restructuring costs related to the rationalization program. On a per-share basis, net income went from $1.23 to a loss of $1.55.
Adjusted net income, which excludes impairment of assets, restructuring costs and unusual adjustments to income taxes, decreased 17%, from $92.4 million to $76.5 million; on a per-share basis, it was down 16%, from $1.13 to $0.95.
It is important to note that adjusted earnings per share grew steadily during fiscal 2009, from $0.19 in the first quarter to $0.37 in the second and $0.39 in the third. This measurement is a good indicator of operating performance in the first nine months of fiscal 2009.
For more detailed financial information, please see Management’s Discussion and Analysis for the Third Quarter Ended July 31, 2009, at www.transcontinental.com, under “Investors.”
The main operating highlights for the third quarter of 2009 illustrate Transcontinental’s strategy to build the new and strengthen its promising traditional operations.
* Despite the impact of the decrease in advertising revenues on its magazines and newspapers, results in the Media sector were stable compared to the third quarter of 2008. Door-to-door distribution activities and educational book publishing contributed to this stability by generating higher revenues than in 2008. While its brands continue to reap awards and recognition for both their print and Internet versions, Media continued to implement its digital strategy. This included the launch of a new interactive and user-friendly website for magazine Coup de pouce, as well as introducing mobile applications for the financial and business news of Les Affaires, Finances et Investissement, and Investment Executive. Since the start of fiscal 2009, the Corporation has invested about six million dollars on developing the Media sector, mainly its digital platforms. The sector’s network of more than 120 sites receives more than six million unique visitors per month.