03.03.20
Transcontinental Inc. announced its results for the first quarter of fiscal 2020, which ended Jan. 26, 2020.
Revenues decreased by $45.8 million, or 6.1%, from $751.6 million in the first quarter of 2019 to $705.8 million in the corresponding period of 2020. This decrease is partially due to a decline in Transcontinental’s recently sold paper packaging operations. Excluding the paper packaging operations, the organic decline would have been $8 million, or 2%. This decline is mainly due to the decrease in raw material costs and the impact of temporary legislative changes on the agricultural packaging product offering. The decline in the Printing Sector and the sale of the specialty media assets and event planning activ-ities also contributed to the decrease in consolidated revenues.
"I am pleased with the Printing Sector's performance in the first quarter of 2020,” said François Olivier, president and CEO of TC Transcontinental. The cost reduction measures put in place in the last few quarters have delivered results. In addition, the integration of our two most recent acquisitions in the promising in-store marketing vertical is progressing.
"In our Packaging Sector, a decline in our paper packaging operations, which were sold to Hood Packaging Corporation around the end of the quarter, as well as the decrease in the price of resin led to lower revenues. However, our profit margins increased compared to last year, and we will continue to gradually improve them during the year, in particular by realizing synergies and efficiency gains.”
"To conclude, we are diligently pursuing our transformation, and the solid cash flows generated enabled us to significantly reduce our indebtedness and increase our dividend while providing us with the flexibility needed to pursue strategic and targeted acquisi-tions,” Olivier concluded.
First quarter 2020 operating earnings decreased by $12.8 million, or 23.9%, from $53.6 million in the first quarter of 2019 to $40.8 million in the first quarter of 2020. Net earn-ings attributable to shareholders of the corporation decreased by $21.7 million, or 77.2%, from $28.1 million in the first quarter of 2019 to $6.4 million in the first quarter of 2020.
In the Packaging Sector, after normalizing the impact of the sale of its paper packaging operations and the price of resin, Transcontinental expects a slight organic growth in revenues, especially in the second half of the year. Transcontinental also continues to ex-pect an increase in its profit margins as a result of operational synergies and the disposal of its paper packaging operations, which generated lower margins.
In the Printing Sector, Transcontinental expects that an organic decline will continue to affect the majority of its verticals, but that the reduction in flyer printing volume should be less significant than in 2019.
Revenues decreased by $45.8 million, or 6.1%, from $751.6 million in the first quarter of 2019 to $705.8 million in the corresponding period of 2020. This decrease is partially due to a decline in Transcontinental’s recently sold paper packaging operations. Excluding the paper packaging operations, the organic decline would have been $8 million, or 2%. This decline is mainly due to the decrease in raw material costs and the impact of temporary legislative changes on the agricultural packaging product offering. The decline in the Printing Sector and the sale of the specialty media assets and event planning activ-ities also contributed to the decrease in consolidated revenues.
"I am pleased with the Printing Sector's performance in the first quarter of 2020,” said François Olivier, president and CEO of TC Transcontinental. The cost reduction measures put in place in the last few quarters have delivered results. In addition, the integration of our two most recent acquisitions in the promising in-store marketing vertical is progressing.
"In our Packaging Sector, a decline in our paper packaging operations, which were sold to Hood Packaging Corporation around the end of the quarter, as well as the decrease in the price of resin led to lower revenues. However, our profit margins increased compared to last year, and we will continue to gradually improve them during the year, in particular by realizing synergies and efficiency gains.”
"To conclude, we are diligently pursuing our transformation, and the solid cash flows generated enabled us to significantly reduce our indebtedness and increase our dividend while providing us with the flexibility needed to pursue strategic and targeted acquisi-tions,” Olivier concluded.
First quarter 2020 operating earnings decreased by $12.8 million, or 23.9%, from $53.6 million in the first quarter of 2019 to $40.8 million in the first quarter of 2020. Net earn-ings attributable to shareholders of the corporation decreased by $21.7 million, or 77.2%, from $28.1 million in the first quarter of 2019 to $6.4 million in the first quarter of 2020.
In the Packaging Sector, after normalizing the impact of the sale of its paper packaging operations and the price of resin, Transcontinental expects a slight organic growth in revenues, especially in the second half of the year. Transcontinental also continues to ex-pect an increase in its profit margins as a result of operational synergies and the disposal of its paper packaging operations, which generated lower margins.
In the Printing Sector, Transcontinental expects that an organic decline will continue to affect the majority of its verticals, but that the reduction in flyer printing volume should be less significant than in 2019.