Highlights
•Revenues increased by $36.0 million, or 7.2%, from $498.7 million to $534.7 million. Adjusted revenues, which exclude an amount of $62.3 million for the accelerated recognition of deferred revenues related to the agreement signed with Hearst in December 2017, decreased by $26.3 million, or 5.3%, to $472.4 million. This decrease is mainly due to the sale of our media assets in Atlantic Canada and of local and regional newspapers in Québec.
•Operating earnings increased by $31.2 million, or 46.0%, from $67.8 million to $99.0 million. Adjusted operating earnings, which exclude an amount of $46.6 million for the accelerated recognition of deferred revenues net of accelerated depreciation related to the agreement signed with Hearst in December 2017, as well as restructuring and other costs (gains) and impairment of assets, increased by $2.0 million, or 3.1%, from $63.7 million to $65.7 million.
•Net earnings increased by $22.5 million, or 48.5%, from $46.4 million to $68.9 million. Adjusted net earnings, which exclude the accelerated recognition of deferred revenues, accelerated depreciation, restructuring and other costs (gains) and impairment of assets, net of related income taxes, increased by $2.6 million, or 6.1%, from $42.5 million to $45.1 million.
•Acquired Multifilm Packaging Corporation, a flexible packaging supplier located in Elgin, Illinois.
•Sold 33 publications, including 32 local newspapers, of which those sold on June 6, 2018, and the Métro Montréal daily newspaper, as well as their related web properties.
•Completed the acquisition of Coveris Americas on May 1, 2018. TC Transcontinental becomes a North American leader in flexible packaging. The Corporation acquired 21 production facilities located in the United States, Canada, Ecuador, Guatemala, Mexico, the United Kingdom, New Zealand and China for US$1.32 billion (C$1.697 billion) and welcomed 3,100 employees. For its fiscal year ended December 31, 2017, Coveris Americas generated US$966 million in revenues (about C$1.26 billion).
•Ranked by Corporate Knights as one of the Best 50 Corporate Citizens in Canada.
Transcontinental Inc. (TSX: TCL.A TCL.B) announces its results for the second quarter of fiscal 2018, which ended April 29, 2018.
“Our good performance in the second quarter demonstrates that our strategic decisions in our three business lines contributed to the strong results for our entire portfolio, said François Olivier, President and Chief Executive Officer of TC Transcontinental. We are therefore in an excellent position to begin a new phase of our growth plan with enthusiasm and conviction.
“During the quarter, we positioned ourselves as a North American leader in flexible packaging with the transformational acquisition of Coveris Americas. This is a pivotal point in our evolution as our packaging division is now the largest division in terms of our pro forma revenues. This transaction is in addition to the acquisition of Multifilm Packaging, in Illinois, which was completed in March.
“The printing division experienced a stable quarter, and certain initiatives implemented to optimize our platform continued to bear fruit. In our Media Sector, we are very pleased with the results of the sale process of local publications. All titles in Québec are now owned by local players, and the vast majority of jobs were maintained. We only have one local newspaper remaining to be sold in Ontario.
“Supported by these results and our solid financial position, we begin the integration of Coveris Americas with confidence. We expect to continue generating significant cash flows, which should enable us to reduce our net indebtedness, while pursuing our growth strategy in packaging.”
2018 Second Quarter Results
Revenues increased by $36.0 million, or 7.2%, from $498.7 million in the second quarter of 2017 to $534.7 million in the corresponding period in 2018. Excluding the $62.3 million favourable effect of the accelerated recognition of deferred revenues related to the agreement signed with Hearst in December 2017, adjusted revenues went from $498.7 million in the second quarter of 2017 to $472.4 million in the corresponding period in 2018, a decrease of 5.3%. However, excluding the unfavourable impact of the sale of newspapers and other media assets in 2017 related to the Corporation’s strategy, as well as the unfavourable exchange rate effect, adjusted revenues increased by $7.1 million, or 1.5%. This increase is mostly attributable to the contribution from the acquisitions of Les Industries Flexipak and Multifilm Packaging as well as the organic growth in revenues in the packaging division due to the increase in volume in all our plants. In the printing division, revenues from our service offering to Canadian retailers slowed down slightly. The decline in revenues from the other printing division verticals continued as a result of the same trends in the advertising market as well as the end of the printing of The Globe and Mail in the Maritimes, of La Presse and of the San Francisco Chronicle as of April 1, partially offset by additional volume in the marketing products vertical.
Operating earnings increased by $31.2 million, or 46.0%, from $67.8 million in the second quarter of 2017 to $99.0 million in the second quarter of 2018. This increase in mostly attributable to the favourable effect of the accelerated recognition of deferred revenues and the decrease in operating expenses resulting from the sale of media assets and cost reduction initiatives. This increase was partially offset, mainly, by the increase in restructuring and other costs (gains) and the effect of accelerated depreciation. Adjusted operating earnings increased by $2.0 million, or 3.1%, from $63.7 million in the second quarter of 2017 to $65.7 million in the second quarter of 2018.
more detail at: https://tctranscontinental.com/company-overview/news-room/press-releases/transcontinental-inc-announces-its-financial-results-7