12.09.16
Transcontinental Inc. announced its results for fiscal 2016, which ended Oct. 31, 2016.
Revenues for the fourth quarter of 2016 went from $540.1 million to $555.6 million, an increase of 2.9%. The contribution from acquisitions in the packaging division and the appreciation of the US dollar against the Canadian dollar more than offset the loss of revenues related to disposals and closures in the Media Sector and the decrease in revenues from existing operations.
In the printing division, flyer printing volume remained stable and proved once again that this marketing tool is considered essential by retailers to drive traffic to the store. In the packaging division, revenues from existing operations increased slightly compared to the fourth quarter of 2015. In the Media Sector, the decline in advertising revenues continued to have a negative effect on the results of local newspapers.
“I am very proud of our 2016 results,” said François Olivier, president and CEO of TC Transcontinental. “We successfully continued the transformation of TC Transcontinental while recording the highest adjusted net earnings attributable to shareholders of the corporation in the organization’s 40 years of history.
“The printing division had another excellent year,” Olivier added. “The start of printing of the Toronto Star demonstrates the renewed interest in our unique newspaper printing outsourcing model. In addition, we continued to expand our business relationships with retailers and implement measures to enable the optimal use of our network. In the Media Sector, the difficult market realities that are still prevailing led us to significantly reduce our cost structure. Furthermore, we disposed of certain assets that were no longer in line with our priorities.
“As for the packaging division, I am pleased with the sustained pace of our progress. On an annualized basis, this division’s revenues more than doubled and now stand at about 15% of consolidated revenues. The acquisitions of Robbie Manufacturing and Flexstar Packaging were carefully carried out according to our strategic criteria. We are convinced that the initiatives deployed in the packaging division to strengthen our sales force will contribute to the realization of several business opportunities with our already well-established sales funnel. Lastly, with our solid financial position and our significant cash flow, we are well positioned to achieve our growth ambitions in the flexible packaging industry,” he concluded.
Adjusted operating earnings went from $87.8 million to $107.4 million in the fourth quarter of 2016, an increase of 22.3%. The acquisitions, the favorable exchange rate effect and higher organic growth offset the above-mentioned decline in revenues from existing operations.
Adjusted net earnings attributable to shareholders of the corporation increased 26.4%, from $60.6 million, or $0.78 per share, to $76.6 million, or $0.99 per share.
In 2016, TC Transcontinental’s revenues grew 0.9%, from $2,002.2 million to $2,019.5 million. The contribution from acquisitions in the packaging division and the appreciation of the US dollar against the Canadian dollar more than offset the loss of revenues related to disposals and closures in the Media Sector and the decrease in revenues from existing operations.
In the printing division, aside from the loss of a U.S. customer in 2015, flyer printing volume remained stable and proved once again that this marketing tool is considered essential by retailers to drive traffic to the store. Previously announced new contracts, in particular the contract to print the Toronto Star, which started in July 2016, and the contract to print Canada’s census form, which ended in the second quarter of 2016, partially offset the negative impact of the decline in advertising spending in several segments.
In the packaging division, the decrease is due to an adjustment to the demand from Transcontinental Capri’s main customer and the loss of a customer as a result of its sale. In the Media Sector, the decline in advertising revenues continued to have a negative effect on the results of local newspapers.
Adjusted operating earnings went from $276.7 million to $283.4 million, an increase of 2.4%. The acquisitions and the favourable exchange rate effect more than offset the decrease in adjusted operating earnings from existing operations. Adjusted net earnings attributable to shareholders of the corporation increased 5.1%, from $186.7 million, or $2.39 per share, to $196.3 million, or $2.53 per share.
Revenues for the fourth quarter of 2016 went from $540.1 million to $555.6 million, an increase of 2.9%. The contribution from acquisitions in the packaging division and the appreciation of the US dollar against the Canadian dollar more than offset the loss of revenues related to disposals and closures in the Media Sector and the decrease in revenues from existing operations.
In the printing division, flyer printing volume remained stable and proved once again that this marketing tool is considered essential by retailers to drive traffic to the store. In the packaging division, revenues from existing operations increased slightly compared to the fourth quarter of 2015. In the Media Sector, the decline in advertising revenues continued to have a negative effect on the results of local newspapers.
“I am very proud of our 2016 results,” said François Olivier, president and CEO of TC Transcontinental. “We successfully continued the transformation of TC Transcontinental while recording the highest adjusted net earnings attributable to shareholders of the corporation in the organization’s 40 years of history.
“The printing division had another excellent year,” Olivier added. “The start of printing of the Toronto Star demonstrates the renewed interest in our unique newspaper printing outsourcing model. In addition, we continued to expand our business relationships with retailers and implement measures to enable the optimal use of our network. In the Media Sector, the difficult market realities that are still prevailing led us to significantly reduce our cost structure. Furthermore, we disposed of certain assets that were no longer in line with our priorities.
“As for the packaging division, I am pleased with the sustained pace of our progress. On an annualized basis, this division’s revenues more than doubled and now stand at about 15% of consolidated revenues. The acquisitions of Robbie Manufacturing and Flexstar Packaging were carefully carried out according to our strategic criteria. We are convinced that the initiatives deployed in the packaging division to strengthen our sales force will contribute to the realization of several business opportunities with our already well-established sales funnel. Lastly, with our solid financial position and our significant cash flow, we are well positioned to achieve our growth ambitions in the flexible packaging industry,” he concluded.
Adjusted operating earnings went from $87.8 million to $107.4 million in the fourth quarter of 2016, an increase of 22.3%. The acquisitions, the favorable exchange rate effect and higher organic growth offset the above-mentioned decline in revenues from existing operations.
Adjusted net earnings attributable to shareholders of the corporation increased 26.4%, from $60.6 million, or $0.78 per share, to $76.6 million, or $0.99 per share.
In 2016, TC Transcontinental’s revenues grew 0.9%, from $2,002.2 million to $2,019.5 million. The contribution from acquisitions in the packaging division and the appreciation of the US dollar against the Canadian dollar more than offset the loss of revenues related to disposals and closures in the Media Sector and the decrease in revenues from existing operations.
In the printing division, aside from the loss of a U.S. customer in 2015, flyer printing volume remained stable and proved once again that this marketing tool is considered essential by retailers to drive traffic to the store. Previously announced new contracts, in particular the contract to print the Toronto Star, which started in July 2016, and the contract to print Canada’s census form, which ended in the second quarter of 2016, partially offset the negative impact of the decline in advertising spending in several segments.
In the packaging division, the decrease is due to an adjustment to the demand from Transcontinental Capri’s main customer and the loss of a customer as a result of its sale. In the Media Sector, the decline in advertising revenues continued to have a negative effect on the results of local newspapers.
Adjusted operating earnings went from $276.7 million to $283.4 million, an increase of 2.4%. The acquisitions and the favourable exchange rate effect more than offset the decrease in adjusted operating earnings from existing operations. Adjusted net earnings attributable to shareholders of the corporation increased 5.1%, from $186.7 million, or $2.39 per share, to $196.3 million, or $2.53 per share.