Third Quarter 2018 Highlights • Revenue decreased 0.9% year-over-year. Financial Services revenue was down 6.7% compared to the prior year, while Small Business Services revenue grew 3.0%, including the results of several small tuck-in acquisitions. • Revenue from marketing solutions and other services (MOS) increased 5.0% year-over-year and grew to 42.6% of total revenue in the quarter. • Gross margin was 59.9% of revenue, compared to 61.2% in the third quarter of 2017. The impact to margin from product and service mix and increased delivery and material costs this year, as well as acquisitions, was only partially offset by previous price increases and continued improvements in manufacturing productivity. Click read more below for additional detail.
Transcontinental Inc. (TSX: TCL.A TCL.B) announced today the gradual reduction of printing activities at Transcontinental Brampton leading to the plant’s complete closure at the end of December 2019. This difficult decision was made in order to optimize the retail printing platform in Canada. Over the coming months, there will be a gradual transfer of activities from Transcontinental Brampton primarily to Transcontinental RBW Graphics and Transcontinental Vaughan in Ontario, as well as to Transcontinental Transmag in Québec. Each of the latter two plants has just installed a state-of-the-art press from TC Transcontinental Printing’s former plant in Fremont, in the United States. Utilization of this equipment will therefore be maximized.
“We are continuously working to align the capacity and costs of our printing platform to business volumes, as we have always done in order to protect the long-term financial health of our sector,” said Jacques Grégoire, President of TC Transcontinental Printing. “Following an in-depth analysis of the situation, it is with regret that we had to make the decision to close Transcontinental Brampton. We would like to sincerely thank all of the talented employees who have been highly dedicated to this plant over the years.”
The closure of Transcontinental Brampton, located at 138 East Drive, in Brampton, Ontario, will take place in two phases. Starting July 7, 2019, only one of the two presses will remain in operation, resulting in the permanent layoff of about 60 production and support employees. As for the approximately 65 production and support employees who will still be employed after this date, they will continue to work on the remaining press until the plant closure. All employees affected by this announcement will be treated fairly and with respect. Moreover, TC Transcontinental has already taken steps with other plants in its network in view of offering employment opportunities to some of the employees who would then be invited to apply, if applicable. Finally, upon closure of the plant, most of the approximately 30 office employees at Transcontinental Brampton should be transferred to Transcontinental Vaughan, where renovation work is underway.
TC Transcontinental will ensure a seamless transition for its customers and will continue to provide them with high-quality printing products in a professional and efficient manner.