Transcontinental Ends Fiscal 2013 with a Steady Performance
The new agreements announced with Quebecor Media Inc. for the printing of some of its magazines and direct marketing materials should begin to progressively have a positive impact as of February 2014. We also entered into a definitive agreement with Sun Media Corporation, a subsidiary of Quebecor Media, subject to regulatory approval, to acquire all of its Quebec community newspapers. Following the closure of this transaction, we expect these items to have an annualized impact of around $20 million on operating income before amortization.
We will continue to generate significant cash flows in the short-term, and our excellent financial position should permit us to continue applying our three-pronged capital management approach, which allows us to reduce our debt, pay dividends and invest in our transformation focusing on our core competencies, such as manufacturing. We will also keep on developing internal projects and evaluating strategic acquisitions to maintain our position as Canadian leader in marketing activation, while developing new niches to ensure the long-term growth and profitability of the business.
Reconciliation of Non-IFRS Financial Measures
Financial data have been prepared in conformity with IFRS. However, certain measures used in this press release do not have any standardized meaning under IFRS and could be calculated differently by other companies. We believe that many readers analyze our results based on certain non-IFRS financial measures because such measures are normalized for evaluating the Corporation's operating performance. Management uses such non-IFRS financial information to evaluate the performance of its operations and managers. These measures should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS.
The following table reconciles IFRS financial measures to non-IFRS financial measures.
Dividend on Participating Shares
The Corporation's Board of Directors declared a quarterly dividend of $0.145 per share on Class A Subordinate Voting Shares and Class B Shares. This dividend is payable on January 20, 2014 to shareholders of record at the close of business on January 3, 2014.