Stock Name: TCL.A
Amount: CAD 0.145
Announcement Date: 13/03/2012
Record Date: 04/04/2012
Dividend Detail:
Highlights
Note: Our 2012 results are now reported under the International
Financial Reporting Standards (IFRS) and the previous year has been
restated to take this into account.
(in millions of dollars, except per share data) | Q1-12 | Q1-11 | % |
Revenues | 495.9 | 514.8 | (4%) |
Adjusted operating income (1) | 43.0 | 48.7 | (12%) |
Adjusted net income applicable to participating shares (2) | 27.1 | 28.8 | (6%) |
Per share | 0.33 | 0.36 | (8%) |
Unusual items, net of income taxes (3) | 60.4 | 3.7 | - |
Net income applicable to participating shares | (33.3) | 25.7 | - |
Per share | (0.41) | 0.32 | - |
Notes 1 and 2 please refer to the table "Reconciliation of Non-IFRS
financial measures" in this press release.
Note 3: these unusual items are mainly related to notices of tax
re-assessment estimated at $58 million in 2012.
Closed the indirect acquisition of all the shares of Quad/Graphics
Canada, Inc. It is expected to add about $230 million to revenues and
should generate at least $40 million in net incremental EBITDA over the
coming 12 to 24 months.
Increased dividends on participating shares by 7%. It now stands at
$0.58 per share on an annual basis.
Net income applicable to participating shares decreased from $25.7
million to a loss of $33.3 million mainly due to a tax provision
related to notices of re-assessment estimated to be $58.0 million,
including applicable interest and penalties for its fiscal years 2006
to 2010. Excluding unusual items, adjusted net income applicable to
participating shares decreased 6%, from $28.8 million to $27.1 million.
��
MONTREAL, March 13, 2012 /CNW Telbec/ - Transcontinental's Inc. (TSX:
TCL.A, TCL.B, TCL.PR.D) revenues decreased by 4% in the first quarter,
from $514.8 million to $495.9 million, driven primarily by the sale of
its black and white book printing business, destined for U.S. exports,
completed last September, which was part of the asset swap transaction
in which it acquired Quad/Graphics Canada on March 1st. Revenues were also impacted by lower volume from the non-recurring
revenue from the printing contract for the Canadian Census last year
and to a lesser extent, the printing of magazines and books. This first
quarter decrease was mitigated by the Media sector, most notably from
the growth of its digital media and community newspaper businesses, as
a result of recent investments. Consolidated revenues are expected to
return on a growth path over the next year given the contribution from
the Quad/Graphics Canada acquisition as well as other contracts such as
Canadian Tire.
For this same period, adjusted operating income decreased 12%, from
$48.7 million to $43.0 million, driven primarily by the Media sector
due to a softer advertising environment coupled with continued
competitive pressures in the local solutions marketplace and to a
lesser extent by lower first quarter volume in the Printing sector. Net
income applicable to participating shares decreased from $25.7 million,
or $0.32 per share, to a loss of $33.3 million, or $0.41 per share.
This decrease is mainly due to a tax provision of $58.0 million related
to notices of re-assessment, which the Corporation intends to contest,
pertaining to deductions on investments in capital assets made by the
Corporation, as well as interprovincial allocation of income. Excluding
unusual items, adjusted net income applicable to participating shares
decreased 6%, from $28.8 million, or $0.36 per share, to $27.1 million,
or $0.33 per share.
"The acquisition of the Canadian assets of Quad/Graphics is an important
milestone in our development, said Fran��ois Olivier, President and
Chief Executive Officer of TC Transcontinental. It strengthens our
print business going forward given the industry dynamics and it allows
us to extend our integrated marketing activation offering to many new
customers. In fact, our transformation continues to ramp up with the
growth of our digital and interactive revenues again this quarter.
We continue to maintain a strong financial position with a solid balance
sheet and an ability to generate significant cash flow. If the
advertising markets remain stable, we expect to improve our performance
in the balance of the year given the lift from the Quad/Graphics Canada
acquisition, the full impact from new contracts and the benefits
related to the integration of our Media and Interactive sectors. We are
confident in our strategy and future prospects and as such have
increased our dividends on participating shares by 7%."
Other Highlights of the Quarter
On February 16, 2012, Isabelle Marcoux was elected Chair of the Board.
Capital expenditures decreased, from $21 million to $8 million. Capital
expenditures are expected to be $75 million at the most for fiscal
2012.
Transcontinental Inc. put in place a new $400 million five-year
Unsecured Revolving Credit Facility that expires in February 2017. The
current credit facility will remain in place until its expiry in
September 2012 but has been reduced to $200 million.
As at January 31, 2012, the adjusted net indebtedness ratio was 1.42x,
as compared to 1.44x as at October 31, 2011.
In February 2012, the federal and provincial tax authorities informed
the Corporation that it would receive notices of re-assessment
estimated to be $58.0 million, including applicable interest and
penalties for its fiscal years 2006 to 2010. The notices of
re-assessments relate to deductions on investments in capital assets
made by the Corporation, as well as the interprovincial allocation of
income. The Corporation recorded a provision of $58.0 million with
respect to these matters, of which $16.0 million was included in
financial expenses and $42.0 million in income taxes, although it
intends to contest these re-assessments. Therefore, the outcome of this
dispute could favorably influence the amounts recognized in the
consolidated financial statements of the Corporation.
Continued to grow our newspaper publishing operations in Quebec by
acquiring the print and Internet publishing assets of Courrier Frontenac as well as acquiring the assets of Tout Magazine. We also launched a new community newspaper, the Valleyfield Express.ca. In addition, we are now the sole shareholder of R��seau S��lect, the largest advertising network for the French-language weekly press
in Canada.
Acquired the shares of Les ��ditions Caract��re, the leader in the supplemental educational publishing market in Quebec
and publisher of bestsellers in the trade market.
For more detailed financial information, please see Management's Discussion and Analysis for the first quarter ended January
31, 2012 and the complete financial statements on our website at www.tc.tc, under "Investors."
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 more
appropriate for evaluating the Corporation's operating performance.
Internally, Management uses such non-IFRS 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 IFRS.
The following table reconciles IFRS financial measures to non-IFRS
financial measures.
Reconciliation of Non-IFRS financial measures | |||||
(unaudited) | |||||
�� | �� | �� | �� | �� | �� |
�� | For the first quarter ended January 31 | ||||
(in millions of dollars, except per share amounts) | �� | 2012 | �� | �� | 2011 |
Net income applicable to participating shares | $ | (33.3) | �� | $ | 25.7 |
Dividends on preferred shares | �� | 1.7 | �� | �� | 1.7 |
Net loss (income) related to discontinued operations (after tax) | �� | - | �� | �� | (0.6) |
Non-controlling interest | �� | - | �� | �� | 0.3 |
Income tax expenses | �� | 47.6 | �� | �� | 5.7 |
Financial expenses | �� | 23.7 | �� | �� | 10.8 |
Restructuring and integration expenses and acquisition costs | �� | 2.5 | �� | �� | 1.6 |
Impairment of assets | �� | 0.8 | �� | �� | 3.5 |
Adjusted operating income | $ | 43.0 | �� | $ | 48.7 |
Amortization | �� | 28.9 | �� | �� | 31.0 |
Adjusted operating income before amortization | $ | 71.9 | �� | $ | 79.7 |
Net income applicable to participating shares | $ | (33.3) | �� | $ | 25.7 |
Net loss (income) from discontinued operations (after tax) | �� | - | �� | �� | (0.6) |
Unusual adjustments to income taxes | �� | 42.0 | �� | �� | - |
Restructuring and integration expenses and acquisition costs (after tax) | �� | 1.8 | �� | �� | 1.2 |
Impairment of assets (after tax) | �� | 0.6 | �� | �� | 2.5 |
Financial expenses related to unusual adjustments to income taxes (after tax) | �� | 16.0 | �� | �� | - |
Adjusted net income applicable to participating shares | $ | 27.1 | �� | $ | 28.8 |
Average number of participating shares outstanding | �� | 81.0 | �� | �� | 81.0 |
Adjusted net income applicable to participating shares per share | $ | 0.33 | �� | $ | 0.36 |
�� | �� | �� | �� | �� | �� |
�� | �� As at January 31, 2012 | �� | As at October 31, 2011 | ||
Long-term debt | $ | 211.9 | �� | $ | 292.5 |
Current portion of long-term debt | �� | 312.9 | �� | �� | 271.9 |
Cash and cash equivalents | �� | (56.8) | �� | �� | (75.0) |
Net indebtedness | $ | 468.0 | �� | $ | 489.4 |
Amount to be paid to Quad/Graphics following the closing of the transaction to acquire the shares of Quad/Graphics Canada | �� | 50.0 | �� | �� | 50.0 |
Adjusted net indebtedness | $ | 518.0 | �� | $ | 539.4 |
Adjusted operating income before amortization (last 12 months) | $ | 365.6 | �� | $ | 373.4 |
Net indebtedness ratio | �� | 1.28x | �� | �� | 1.31x |
Adjusted net indebtedness ratio | �� | 1.42x | �� | �� | 1.44x |
Dividend
At its March 12, 2012 meeting, the Corporation's Board of Directors
declared a quarterly dividend of $0.145 per Class A Subordinate Voting
Shares and Class B Shares. This dividend is payable on April 26, 2012
to participating shareholders of record at the close of business on
April 6, 2012. The Corporation thus increased the dividend per
participating share by 7%, or $0.04 per share, raising the new annual
dividend to $0.58 per share, from $0.54 per share. This increase is a
reflection of Transcontinental's strong cash flow position.
Furthermore, at the same meeting, the Board also declared a quarterly
dividend of $0.4196 per share on cumulative 5-year rate reset first
preferred shares, series D. This dividend is payable on April 16, 2012.
On an annual basis, this represents a dividend of $1.6875 per preferred
share.
Additional Information
Upon releasing its first quarter 2012 results, Transcontinental will
hold a conference call for the financial community today at 10:00 a.m.
Media may hear the call in listen-only mode or tune in to the
simultaneous audio broadcast on the Corporation's Web site, which will
then be archived for 30��days. For media requests for information or
interviews, please contact Nancy Bouffard, Director, Internal and
External Communications of TC Transcontinental, at 514 954-2809.
Profile
TC Transcontinental creates marketing products and services that allow
businesses to attract, reach and retain their target customers. The
Corporation is the largest printer in Canada and the fourth-largest in
North America. As the leading publisher of consumer magazines and
French-language educational resources, and of community newspapers in
Quebec and the Atlantic provinces, it is also one of Canada's top media
groups. TC Transcontinental is also the leading door-to-door
distributor of advertising material in Canada through its Publisac
network in Quebec and Targeo in the rest of Canada. Thanks to a wide
digital network of more than 1,000 websites, the Corporation reaches
over 13.7��million unique visitors per month in Canada.
TC��Transcontinental also offers interactive marketing products and
services that use new communication platforms supported by marketing
strategy and planning services, database analytics, premedia, e-flyers,
email marketing, custom communications and mobile solutions.
Transcontinental Inc. (TSX: TCL.A, TCL.B, TCL.PR.D), known by the brands
TC Transcontinental, TC Media and TC Transcontinental Printing, has
approximately 11,000 employees in Canada and the United States, and
reported revenues of C$2.0 billion in 2011. For more information about
the corporation, please visit www.tc.tc
Forward-looking Statements
This press release contains certain forward-looking statements
concerning the future performance of the Corporation. Such statements,
based on the current expectations of management, inherently involve
numerous risks and uncertainties, known and unknown. We caution that
all forward-looking information is inherently uncertain and actual
results may differ materially from the assumptions, estimates or
expectations reflected or contained in the forward-looking information,
and that actual future performance will be affected by a number of
factors, many of which are beyond the Corporation's control, including,
but not limited to, the economic situation, structural changes in its
industries, exchange rate, availability of capital, energy costs,
increased competition, as well as the Corporation's capacity to engage
in strategic transactions and integrate acquisitions into its
activities. The risks, uncertainties and other factors that could
influence actual results are described in the Management's Discussion and Analysis and Annual Information Form.
The forward-looking information in this release is based on current
expectations and information available as at March 13, 2012. The
Corporation's management disclaims any intention or obligation to
update or revise any forward-looking statements unless otherwise
required by the Securities Authorities.
CONSOLIDATED STATEMENTS OF INCOME | �� | �� | �� | �� | �� | ||||
Unaudited | �� | �� | �� | �� | �� | ||||
�� | �� | �� | �� | �� | �� | ||||
�� | Three months ended | ||||||||
�� | January 31 | ||||||||
(in millions of Canadian dollars, except per share data) | 2012 | �� | 2011 | ||||||
�� | �� | �� | �� | �� | �� | ||||
Revenues | $ | 495.9 | �� | $ | 514.8 | ||||
Operating expenses | �� | 424.0 | �� | �� | 435.1 | ||||
Restructuring, integration and acquisition costs | �� | 2.5 | �� | �� | 1.6 | ||||
Impairment of assets | �� | 0.8 | �� | �� | 3.5 | ||||
�� | �� | �� | �� | �� | �� | ||||
Operating income before amortization | �� | 68.6 | �� | �� | 74.6 | ||||
Amortization | �� | 28.9 | �� | �� | 31.0 | ||||
�� | �� | �� | �� | �� | �� | ||||
Operating income | �� | 39.7 | �� | �� | 43.6 | ||||
Financial expenses | �� | 23.7 | �� | �� | 10.8 | ||||
�� | �� | �� | �� | �� | �� | ||||
Income before income taxes | �� | 16.0 | �� | �� | 32.8 | ||||
Income taxes | �� | 47.6 | �� | �� | 5.7 | ||||
�� | �� | �� | �� | �� | �� | ||||
Net income (loss) from continuing operations | �� | (31.6) | �� | �� | 27.1 | ||||
Net income from discontinued operations | �� | - | �� | �� | 0.6 | ||||
�� | �� | �� | �� | �� | �� | ||||
Net income (loss) | �� | (31.6) | �� | �� | 27.7 | ||||
Non-controlling interests | �� | - | �� | �� | 0.3 | ||||
Net income (loss) attributable to shareholders of the Corporation | �� | (31.6) | �� | �� | 27.4 | ||||
Dividends on preferred shares, net of related taxes | �� | 1.7 | �� | �� | 1.7 | ||||
Net income (loss) attributable to participating shares | $ | (33.3) | �� | $ | 25.7 | ||||
�� | �� | �� | �� | �� | �� | ||||
Net income (loss) per participating share - basic and diluted | �� | �� | �� | �� | �� | ||||
�� | Continuing operations | $ | (0.41) | �� | $ | 0.31 | |||
�� | Discontinued operations | - | �� | �� | �� | 0.01 | |||
�� | $ | (0.41) | �� | $ | 0.32 | ||||
�� | �� | �� | �� | �� | �� | ||||
Weighted average number of shares outstanding - basic (in millions) | �� | 81.0 | �� | �� | 81.0 | ||||
�� | �� | �� | �� | �� | �� | ||||
Weighted average number of shares outstanding - diluted (in millions) | �� | 81.0 | �� | �� | 81.1 | ||||
�� | �� | �� | �� | �� | �� | ||||
�� | �� | �� | �� | �� | �� | ||||
The notes are an integral part of these consolidated financial statements. | �� | �� | �� | �� | �� | ||||
�� | �� | �� | �� | �� | �� | ||||
�� | �� | �� | �� | �� | �� | ||||
�� | �� | �� | �� | �� | �� | ||||
�� | �� | �� | �� | �� | �� | ||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | �� | �� | �� | �� | �� | ||||
Unaudited | �� | �� | �� | �� | �� | ||||
�� | �� | �� | �� | �� | �� | ||||
�� | Three months ended | ||||||||
�� | January 31 | ||||||||
(in millions of Canadian dollars) | 2012 | �� | 2011 | ||||||
�� | �� | �� | �� | �� | �� | ||||
Net income (loss) | $ | (31.6) | �� | $ | 27.7 | ||||
�� | �� | �� | �� | �� | �� | ||||
Other comprehensive income (loss) | �� | �� | �� | �� | �� | ||||
�� | �� | �� | �� | �� | �� | ||||
Items that will be reclassified to net income (loss): | �� | �� | �� | �� | �� | ||||
�� | Net change related to cash flow hedges | �� | �� | �� | �� | �� | |||
�� | �� | Net change in the fair value of derivatives designated as cash flow hedges | �� | (1.2) | �� | �� | 0.4 | ||
�� | �� | Reclassification of the net change in the fair value of derivatives designated as cash flow | �� | �� | �� | �� | �� | ||
�� | �� | hedges in prior periods, recognized in net income (loss) during the period | �� | 2.6 | �� | �� | 1.5 | ||
�� | �� | Related income taxes | �� | 1.6 | �� | �� | 0.7 | ||
�� | �� | (0.2) | �� | �� | 1.2 | ||||
�� | �� | �� | �� | �� | �� | ||||
�� | Cumulative translation differences | �� | �� | �� | �� | �� | |||
�� | �� | Net gains (losses) on the translation of the financial statements of self-sustaining foreign operations | �� | 0.5 | �� | �� | (1.7) | ||
�� | �� | �� | �� | �� | �� | ||||
Items that will not be reclassified to net income (loss): | �� | �� | �� | �� | �� | ||||
�� | Changes in actuarial gains and losses in respect of defined benefit pension plans | �� | �� | �� | �� | �� | |||
�� | �� | Actuarial gains and losses in respect of defined benefit pension plans | �� | (15.6) | �� | �� | 22.5 | ||
�� | �� | Related income taxes | �� | (4.9) | �� | �� | 6.0 | ||
�� | �� | (10.7) | �� | �� | 16.5 | ||||
�� | �� | �� | �� | �� | �� | ||||
Other comprehensive income (loss) | �� | (10.4) | �� | �� | 16.0 | ||||
Comprehensive income (loss) | $ | (42.0) | �� | $ | 43.7 | ||||
�� | �� | �� | �� | �� | �� | ||||
Attributable to: | �� | �� | �� | �� | �� | ||||
�� | Shareholders of the Corporation | $ | (42.0) | �� | $ | 43.4 | |||
�� | Non-controlling interests | - | �� | �� | �� | 0.3 | |||
�� | $ | (42.0) | �� | $ | 43.7 | ||||
�� | �� | �� | �� | �� | �� | ||||
�� | �� | �� | �� | �� | �� | ||||
The notes are an integral part of these consolidated financial statements. | �� | �� | �� | �� | �� | ||||
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||||||
Unaudited | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
(in millions of Canadian dollars) | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | Attributable to shareholders of the Corporation | �� | �� | �� | �� | �� | �� | ||||||||||||||
�� | �� | Share capital | �� | �� | Contributed surplus | �� | �� | Retained earnings | �� | �� | Accumulated other comprehensive income (loss) | �� | �� | Total | �� | �� | Non- controlling interests | �� | �� | Total equity | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
Balance as at October 31, 2011 | $ | 478.1 | �� | $ | 1.8 | �� | $ | 754.1 | �� | $ | ��(28.1) | �� | $ | 1,205.9 | �� | $ | 0.8 | �� | $ | 1,206.7 | |
Net income (loss) | �� | - | �� | �� | - | �� | �� | (31.6) | �� | �� | -�� | �� | �� | (31.6) | �� | �� | - | �� | �� | (31.6) | |
Other comprehensive loss | �� | - | �� | �� | - | �� | �� | - | �� | �� | (10.4) | �� | �� | (10.4) | �� | �� | - | �� | �� | (10.4) | |
Shareholders' contributions and | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
distributions to shareholders | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | Exercise of stock options | �� | 0.1 | �� | �� | - | �� | - | �� | �� | �� | -�� | �� | �� | 0.1 | �� | �� | - | �� | �� | 0.1 |
�� | Dividends | �� | - | �� | �� | - | �� | �� | (12.6) | �� | �� | -�� | �� | �� | (12.6) | �� | �� | - | �� | �� | (12.6) |
�� | Stock-option based | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
�� | compensation | �� | - | �� | �� | 0.2 | �� | �� | - | �� | �� | -�� | �� | �� | 0.2 | �� | �� | - | �� | �� | 0.2 |
Balance as at January 31, 2012 | $ | 478.2 | �� | $ | 2.0 | �� | $ | 709.9 | �� | $ | (38.5) | �� | $ | 1,151.6 | �� | $ | 0.8 | �� | $ | 1,152.4 | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
Balance as at November 1, 2010 | $ | 477.9 | �� | $ | 1.1 | �� | $ | 673.1 | �� | $ | (4.5) | �� | $ | 1,147.6 | �� | $ | 0.8 | �� | $ | 1,148.4 | |
Net income | �� | - | �� | �� | - | �� | �� | 27.4 | �� | �� | - | �� | �� | 27.4 | �� | �� | 0.3 | �� | �� | 27.7 | |
Other comprehensive income | �� | - | �� | �� | - | �� | �� | - | �� | �� | 16.0 | �� | �� | 16.0 | �� | �� | - | �� | �� | 16.0 | |
Shareholders' contributions and | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
distributions to shareholders | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | Exercise of stock options | �� | 0.1 | �� | �� | - | �� | �� | - | �� | �� | -�� | �� | �� | 0.1 | �� | �� | - | �� | �� | 0.1 |
�� | Dividends | �� | - | �� | �� | - | �� | �� | (10.6) | �� | �� | -�� | �� | �� | (10.6) | �� | �� | (0.8) | �� | �� | (11.4) |
�� | Stock-option based | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
�� | compensation | �� | - | �� | �� | 0.2 | �� | �� | - | �� | �� | -�� | �� | �� | 0.2 | �� | �� | - | �� | �� | 0.2 |
Balance as at January 31, 2011 | $ | 478.0 | �� | $ | 1.3 | �� | $ | 689.9 | �� | $ | 11.5 | �� | $ | 1,180.7 | �� | $ | 0.3 | �� | $ | 1,181.0 | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
The notes are an integral part of these consolidated financial statements. | |||||||||||||||||||||
��
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||||
Unaudited | |||||||||
�� | �� | �� | �� | �� | �� | �� | �� | �� | |
(in millions of Canadian dollars) | �� | As at January 31, 2012 | �� | �� | As at October 31, 2011 | �� | �� | As at November 1, 2010 | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | |
Current assets | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | Cash and cash equivalents | $ | 56.8 | �� | $ | 75.0 | �� | $ | 31.9 |
�� | Accounts receivable | �� | 368.1 | �� | �� | 436.3 | �� | �� | 440.6 |
�� | Income taxes receivable | �� | 7.4 | �� | �� | 14.7 | �� | �� | 19.5 |
�� | Inventories | �� | 76.2 | �� | �� | 80.2 | �� | �� | 77.6 |
�� | Prepaid expenses and other current assets | �� | 15.3 | �� | �� | 18.3 | �� | �� | 19.3 |
�� | Current assets related to discontinued operations | �� | - | �� | �� | -�� | �� | �� | 26.4 |
�� | �� | 523.8 | �� | �� | 624.5 | �� | �� | 615.3 | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | |
Property, plant and equipment | �� | 672.9 | �� | �� | 690.6 | �� | �� | 772.3 | |
Intangible assets | �� | 147.9 | �� | �� | 149.6 | �� | �� | 179.1 | |
Goodwill | �� | 682.8 | �� | �� | 682.5 | �� | �� | 678.1 | |
Deferred income taxes | �� | 199.2 | �� | �� | 197.7 | �� | �� | 193.8 | |
Other assets | �� | 28.9 | �� | �� | 20.2 | �� | �� | 32.3 | |
Non-current assets related to discontinued operations | �� | - | �� | �� | - | �� | �� | 49.5 | |
�� | $ | 2,255.5 | �� | $ | 2,365.1 | �� | $ | �� 2,520.4 | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | |
Current liabilities | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | Accounts payable and accrued liabilities | $ | 217.9 | �� | $ | 293.5 | �� | $ | 329.6 |
�� | Provisions | �� | 6.9 | �� | �� | 10.7 | �� | �� | 15.7 |
�� | Income taxes payable | �� | 86.4 | �� | �� | 33.5 | �� | �� | 29.0 |
�� | Deferred subscription revenues and deposits | �� | 34.0 | �� | �� | 32.5 | �� | �� | 38.4 |
�� | Current portion of long-term debt | �� | 312.9 | �� | �� | 271.9 | �� | �� | 293.8 |
�� | Current liability related to discontinued operations | �� | - | �� | �� | - | �� | �� | 12.8 |
�� | �� | 658.1 | �� | �� | 642.1 | �� | �� | 719.3 | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | |
Long-term debt | �� | 211.9 | �� | �� | 292.5 | �� | �� | 436.9 | |
Deferred income taxes | �� | 124.3 | �� | �� | 127.2 | �� | �� | 124.3 | |
Provisions | �� | 8.6 | �� | �� | 8.7 �� | �� | �� | 10.6 | |
Other liabilities | �� | 100.2 | �� | �� | 87.9 | �� | �� | 80.2 | |
Non-current liability related to discontinued operations | �� | - | �� | �� | - | �� | �� | 0.7 | |
�� | �� | 1,103.1 | �� | �� | 1,158.4 | �� | �� | 1,372.0 | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | |
Equity | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | Share capital | �� | 478.2 | �� | �� | 478.1 | �� | �� | 477.9 |
�� | Contributed surplus | �� | 2.0 | �� | �� | 1.8 | �� | �� | 1.1 |
�� | Retained earnings | �� | 709.9 | �� | �� | 754.1 | �� | �� | 673.1 |
�� | Accumulated other comprehensive loss | �� | (38.5) | �� | �� | (28.1) | �� | �� | (4.5) |
�� | Attributable to shareholders of the Corporation | �� | 1,151.6 | �� | �� | 1,205.9 | �� | �� | 1,147.6 |
�� | Non-controlling interests | �� | 0.8 | �� | �� | 0.8 | �� | �� | 0.8 |
�� | �� | 1,152.4 | �� | �� | 1,206.7 | �� | �� | 1,148.4 | |
�� | $ | 2,255.5 | �� | $ | 2,365.1 | �� | $ | 2,520.4 | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | |
The notes are an integral part of these consolidated financial statements. | |||||||||
��
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
Unaudited | |||||||
�� | |||||||
�� | Three months ended | ||||||
�� | January 31 | ||||||
(in millions of Canadian dollars) | �� | 2012 | �� | �� | 2011 | ||
�� | �� | �� | �� | �� | �� | ||
Operating activities | �� | �� | �� | �� | �� | ||
�� | Net income (loss) | $ | (31.6) | �� | $ | 27.7 | |
�� | Less: Net income from discontinued operations | �� | - | �� | �� | 0.6 | |
�� | Net income (loss) from continuing operations | �� | (31.6) | �� | �� | 27.1 | |
�� | �� | �� | �� | �� | �� | ||
�� | Adjustments to reconcile net income (loss) from continuing operations | �� | �� | �� | �� | �� | |
�� | and cash flows from operating activities: | �� | �� | �� | �� | �� | |
�� | �� | Amortization | �� | 33.8 | �� | �� | 36.8 |
�� | �� | Impairment of assets | �� | 0.8 | �� | �� | 3.5 |
�� | �� | Financial expenses on long-term debt | �� | 6.9 | �� | �� | 10.1 |
�� | �� | Interest on tax contingencies | �� | 16.0 | �� | �� | -�� |
�� | �� | Net gain on disposal of assets | �� | (0.4) | �� | �� | -�� |
�� | �� | Income taxes | �� | 47.6 | �� | �� | �� 5.7 |
�� | �� | Stock-option based compensation | �� | 0.2 | �� | �� | 0.2 |
�� | �� | Other | �� | 0.6 | �� | �� | (1.7) |
�� | Cash flows generated by operating activities before changes | �� | �� | �� | �� | �� | |
�� | in non-cash operating items and income tax paid | �� | 73.9 | �� | �� | 81.7 | |
�� | Changes in non-cash operating items | �� | (16.3) | �� | �� | (12.7) | |
�� | Income tax paid | �� | (2.3) | �� | �� | (6.5) | |
�� | Cash flows from continuing operations | �� | 55.3 | �� | �� | 62.5 | |
�� | Cash flows from discontinued operations | �� | - | �� | �� | (0.3) | |
�� | �� | 55.3 | �� | �� | 62.2 | ||
�� | �� | �� | �� | �� | �� | ||
Investing activities | �� | �� | �� | �� | �� | ||
�� | Business acquisitions | �� | - | �� | �� | (4.8) | |
�� | Acquisitions of property, plant and equipment | �� | (8.3) | �� | �� | (20.5) | |
�� | Disposals of property, plant and equipment | �� | 0.4 | �� | �� | 0.1 | |
�� | Increase in intangible assets and other assets | �� | (4.7) | �� | �� | (4.9) | |
�� | Cash flows from investments in continuing operations | �� | (12.6) | �� | �� | (30.1) | |
�� | Cash flows from investments in discontinued operations | �� | - | �� | �� | (0.4) | |
�� | �� | (12.6) | �� | �� | (30.5) | ||
�� | �� | �� | �� | �� | �� | ||
Financing activities | �� | �� | �� | �� | �� | ||
�� | Reimbursement of long-term debt | �� | (8.1) | �� | �� | (7.3) | |
�� | Increase (decrease) in revolving term credit facility | �� | (34.1) | �� | �� | 6.5 | |
�� | Financial expenses on long-term debt | �� | (6.3) | �� | �� | (7.9) | |
�� | Dividends on participating shares | �� | (10.9) | �� | �� | (8.9) | |
�� | Dividends on preferred shares | �� | (1.7) | �� | �� | (1.7) | |
�� | Issuance of participating shares | �� | 0.1 | �� | �� | 0.1 | |
�� | Bond forward contract | �� | - | �� | �� | (6.0) | |
�� | Other | �� | - | �� | �� | - | |
�� | Cash flows from the financing of continuing operations | �� | (61.0) | �� | �� | (25.2) | |
�� | �� | �� | �� | �� | �� | ||
Effect of exchange rate changes on cash and cash equivalents | �� | �� | �� | �� | �� | ||
denominated in foreign currencies | �� | 0.1 | �� | �� | (0.3) | ||
�� | �� | �� | �� | �� | �� | ||
Increase (decrease) in cash and cash equivalents | �� | (18.2) | �� | �� | 6.2 | ||
Cash and cash equivalents at beginning of period | �� | 75.0 | �� | �� | 36.3 | ||
Cash and cash equivalents at end of period | $ | 56.8 | �� | $ | 42.5 | ||
�� | �� | �� | �� | �� | �� | ||
Non-cash investing and financing activities | �� | �� | �� | �� | �� | ||
�� | Net change in capital asset acquisitions financed by accounts payable | $ | 2.5 | �� | $ | 13.6 | |
�� | �� | �� | �� | �� | �� | ||
The notes are an integral part of these consolidated financial statements. | |||||||
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For further information:
Media��
Nancy Bouffard
Director, Internal and External Communications
TC Transcontinental
Telephone��: 514��954-2809
nancy.bouffard@tc.tc
www.tc.tc��
Financial Community��
Jennifer F. McCaughey
Senior Director, Investor Relations and Financial Communications
TC Transcontinental
Telephone��: 514��954-2821
jennifer.mccaughey@tc.tc
www.tc.tc
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