LSC Communications announced that the company was honored with six awards in the 2019 ‘Golden Cylinder’ Awards, an annual competition designed to identify the “Best of Gravure” in each segment of the printing industry and to distinguish technical innovations. Three different LSC Communications facilities produced the six print pieces that were recognized with awards, with four awards for magazines and two for catalogs. Winning pieces were selected based on various factors including image quality, overall visual impact, and technical difficulty and innovation. LSC was the top winner in the competition with the most awards including one of the event’s highest accolades, the “Best of the Best Publication” award for The New York Times Style Magazine “Women’s Fashion” August 19, 2018 issue.
•Revenues of $728.9 million, down 3.8% compared to the third quarter of 2018.
•Adjusted operating earnings before depreciation and amortization (1) of $112.9 million, down 3.0%.
•Operating earnings of $56.6 million, up 42.9%.
•Adjusted operating earnings (1) of $80.9 million, down 4.4%.
•Net earnings of $3.4 million ($0.04 per share) compared to $19.3 million ($0.22 per share) for the corresponding period in 2018.
•Adjusted net earnings (1) of $52.2 million ($0.60 per share) compared to $52.1 million ($0.59 per share) for the corresponding period in 2018.
•Cash flows from operating activities of $90.2 million, up 17.0%.
•Appointed Thomas Morin as President of the Packaging Sector.
•On September 3, 2019, announced the sale of the Fremont, California building to Hearst for US$75 million, subject to customary closing conditions.
•On September 3, 2019, announced the acquisition of a 60% participation in Industrial y Commercial Trilex C.A., a plastic packaging supplier located in Guayaquil, Ecuador.
“I am satisfied with the synergies achieved to date from the integration of Coveris Americas and their impact on our profitability in the Packaging Sector, said François Olivier, President and Chief Executive Officer of TC Transcontinental. We are building solid foundations for the future growth of the company, in particular by signing long-term contracts with major customers.
“Our Printing Sector continued to be affected by the same trends observed in recent quarters with respect to our retailer-related service offering. We are however confident that the extent of the decrease in revenues recorded this year will be lower in the coming quarters and that the efficiency measures in place will enable us to optimize our cost structure.
“In summary, we are pursuing our business plan with confidence. The sale of the Fremont building, combined with the significant cash flows we continue to generate, will allow us to accelerate the reduction of our net indebtedness.”
2019 Third Quarter Results
Revenues decreased by $29.0 million, or 3.8%, from $757.9 million in the third quarter of 2018 to $728.9 million in the corresponding period in 2019. This decrease is essentially related to a decline in Printing Sector revenues, mostly due to a decrease in revenues from our retailer-related service offering, and, to a lesser extent, a decline in Packaging Sector revenues, mostly due to lower volume in one of our segments as well as legislative changes having an unfavourable impact on our agricultural packaging product offering. This decrease was partially offset by the favourable exchange rate effect.
Operating earnings increased by $17.0 million, or 42.9%, from $39.6 million in the third quarter of 2018 to $56.6 million in the third quarter of 2019, mainly as a result of expenses related to the acquisition of Coveris Americas recorded in the third quarter of 2018, namely restructuring and other costs (gains) and the reversal of the fair value adjustment of inventory sold arising from business combinations. Adjusted operating earnings decreased by $3.7 million, or 4.4%, from $84.6 million to $80.9 million, mainly due to the decrease in revenues from our retailer-related service offering in the Printing Sector.
Net earnings decreased by $15.9 million, or 82.4%, from $19.3 million in the third quarter of 2018 to $3.4 million in the third quarter of 2019. This decrease is mainly due to an income tax expense of $30.2 million resulting from the retroactive application of a new directive as part of the U.S. tax reform, partially offset by the increase in operating earnings. On a per share basis, net earnings went from $0.22 to $0.04 due to the above-mentioned items. Adjusted net earnings increased by $0.1 million, or 0.2%, from $52.1 million in the third quarter of 2018 to $52.2 million in the third quarter of 2019, mainly as a result of lower adjusted income taxes, which were partially offset by the decrease in adjusted operating earnings and an increase in financial expenses. On a per share basis, adjusted net earnings went from $0.59 to $0.60.
2019 First Nine Months Results
Revenues increased by $453.6 million, or 25.3%, from $1,794.3 million in the first nine months of 2018 to $2,247.9 million in the corresponding period in 2019. This increase is essentially attributable to the acquisition of Coveris Americas, which contributed $624.3 million to revenues. It was mitigated by the impact of the accelerated recognition of deferred revenues of $102.1 million recorded in 2018, the effect of the sale of our California newspaper printing operations and the decline in Printing Sector revenues, which is mainly due to a decrease in printed flyer volume largely related to two major customers.
Operating earnings decreased by $108.9 million, or 41.5%, from $262.2 million in the first nine months of 2018 to $153.3 million in the corresponding period in 2019. This decrease is mainly due to the accelerated recognition of deferred revenues, net of accelerated depreciation, of $80.1 million. To a lesser extent, workforce reduction costs recorded in 2019 also contributed to the decrease in operating earnings. Adjusted operating earnings increased by $15.9 million, or 7.1%, from $225.3 million to $241.2 million. This increase is mostly attributable to the contribution from the acquisition of Coveris Americas, partially offset by the above-mentioned organic decline in the Printing Sector.
Net earnings decreased by $92.6 million, or 63.3%, from $146.4 million in the first nine months of 2018 to $53.8 million in the corresponding period in 2019. This decrease is due to the previously explained decline in operating earnings as well as higher financial expenses in the first nine months of 2019 compared to the corresponding period in 2018, partially mitigated by a decrease in income tax expense. On a per share basis, net earnings went from $1.81 to $0.62 due to the above-mentioned items, but also to the effect of the issuance of 10.8 million Class A Subordinate Voting Shares of the Corporation in May 2018.
more detail at: https://tctranscontinental.com/company-overview/news-room/press-releases/transcontinental-inc-announces-its-results-third-0