Transcontinental Posts ‘Best Operating Performance in Its History’
Net income applicable to participating shares rose from $43.1 million in 2009 to $44.5 million in 2010. Adjusted net income applicable to participating shares, which excludes unusual items, was up 20 percent, from $52.4 million to $62.9 million.
For the 12-month period ended Oct. 31, 2010, the corporation reported organic growth in revenues of 1.2 percent. This growth stems from new printing contracts and a recovery in advertising spending in its newspapers and magazines. Consolidated revenues were down 3.6 percent, from $2.2 billion to $2.1 billion, mainly due to divestitures or closures of plants and publications, the impact of the exchange rate and the paper effect.
Adjusted operating income was up 16.3 percent, from $217.1 million to $252.5 million. This increase is mainly due to strict controls on costs and the asset portfolio as well as greater efficiency, which largely offset the corporation’s strategic investments; those investments had an immediate impact on earnings, notably in the digital services developed by the Media Sector. Organic growth in adjusted operating income was 14.9 percent.
Net income applicable to participating shares rose $248.9 million, from a loss of $82.3 million in 2009 to income of $166.6 million in 2010. This remarkable growth stems mainly from a significant increase in operating income and a gain related to the discontinuance of direct mail operations in the United States. Adjusted net income applicable to participating shares, which excludes unusual items, rose 18.7 percent, from $133.5 million to $158.5 million.
For more detailed financial information, please see Management’s Discussion and Analysis for the fiscal year ended Oct. 31, 2010 and the complete financial statements on our website at www.transcontinental.com, in the Investors section.
In 2010, Transcontinental continued to implement its unique growth strategy based on two intertwined components: build the new and strengthen traditional core activities. This strategy reflects its mission to help businesses and advertisers identify, reach and retain their target consumers. Transcontinental is defining itself as a provider of custom marketing solutions on both digital and print communication platforms.