Despite Difficult Economy, Transcontinental Improves Profitability
* The new Marketing Communications Sector has allowed Transcontinental increase its offer to existing customers by providing products and services that are ideally suited to their new needs and to new consumer behaviours. The finest achievements in this area include additional business with major names such as Shoppers Drug Mart-Pharmaprix, Zellers and Purolator. Recent strategic acquisitions have greatly contributed to the increase in sales, namely Conversys (e-flyer), ThinData (permission-based email marketing), Redwood Custom Communications (custom communications) and Rastar (data-driven direct marketing solutions and variable-data digital printing).
* Excluding the effects of the rationalization of direct mail operations in the United States, revenues in the Printing sector were down slightly and profitability was basically stable. The third quarter was marked by the startup of printing of the San Francisco Chronicle, which took place as scheduled. The new printing plant in Fremont, California where the daily paper is being printed is one of the first in North America to be built to the standards of Leadership in Energy and Environmental Design (LEED). We also gained customers in the flyer and newspaper printing operations, including two leading groups of weekly papers in the Quebec City area: Le Canada français and L’Avantage.
Reconciliation of Non-GAAP Financial Measures
Financial data have been prepared in conformity with Canadian Generally Accepted Accounting Principles (GAAP). However, certain measures used in this press release do not have any standardized meaning under GAAP and could be calculated differently by other companies. The Corporation believes that certain non-GAAP financial measures, when presented in conjunction with comparable GAAP financial measures, are useful to investors and other readers because that information is an appropriate measure for evaluating the Corporation's operating performance. Internally, the Corporation uses this non-GAAP financial information as an indicator of business performance, and evaluates management's effectiveness with specific reference to these indicators. These measures should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP.