Transcontinental Inc. Announces Results for the Second Quarter of Fiscal 2022

Highlights
*Revenue growth of 21% for the Packaging Sector and 9% for the Printing Sector.
*Revenues of $715.5 million for the quarter ended May 1, 2022; operating earnings of $46.1 million; and net earnings attributable to shareholders of the Corporation of $28.3 million ($0.33 per share).
*Adjusted operating earnings before depreciation and amortization(1) of $103.6 million for the quarter ended May 1, 2022; adjusted operating earnings(1) of $64.1 million; and adjusted net earnings attributable to shareholders of the Corporation(1) of $41.7 million ($0.48 per share).
*Acquired Scolab Inc., a leader in the development of digital educational products, in March 2022, to enhance digital educational offering.

Transcontinental Inc. (TSX: TCL.A TCL.B) announces its results for the second quarter of fiscal 2022, which ended May 1, 2022.

“I am proud of our coworkers and their work to overcome supply chain challenges and inflationary pressures,” said Peter Brues, President and Chief Executive Officer of TC Transcontinental. “We are starting to see the benefit of the actions we have taken, and I am encouraged by their impact on our second quarter results.

“In our Packaging Sector, we recorded significant volume growth during the quarter. Focused on supporting customer growth, we continued to prioritize the security of supply and invest to grow our sustainable packaging portfolio. Volume growth and significant work to offset cost increases due to inflation drove the improvement in the sector’s adjusted operating earnings before depreciation and amortization.

“Our Printing Sector produced organic growth in revenues for the fifth consecutive quarter. This growth was primarily generated by our in-store marketing and book printing activities, two rapidly growing segments.

“The team continues to take action to improve our performance, the benefits of which will continue to be felt in the second half of our fiscal year.”

Revenues increased by $92.2 million, or 14.8%, from $623.3 million in the second quarter of 2021 to $715.5 million in the corresponding period of 2022. This increase is mainly attributable to the impact of the contractual transfer of the rise in the price of raw materials and other increases to counter inflationary pressures, the acquisition of H.S. Crocker Company, Inc. and higher volume on the results of the Packaging Sector, as well as the impact of higher volume in our in-store marketing and book printing activities and the acquisition of BGI Retail Inc. on the results of the Printing Sector.

Operating earnings before depreciation and amortization decreased by $6.1 million, or 5.6%, from $108.9 million in the second quarter of 2021 to $102.8 million in the second quarter of 2022. Adjusted operating earnings before depreciation and amortization decreased by $5.8 million, or 5.3%, from $109.4 million in the second quarter of 2021 to $103.6 million in the second quarter of 2022. The decrease in operating earnings before depreciation and amortization and adjusted operating earnings before depreciation and amortization is mainly due to the end of the Canada Emergency Wage Subsidy which the Corporation received in the previous year, lags in passing through cost increases related to the inflationary environment to customers in the Printing Sector and additional costs related to the start-up period for new contracts in our in-store marketing activities. These items were partially offset by higher volume in the two main sectors, the decrease in the stock-based compensation expense related to the share price, acquisitions, as well as the contractual transfer of the rise in the price of raw materials and other increases to counter inflationary pressures in the Packaging Sector.

Net earnings attributable to shareholders of the Corporation decreased by $7.3 million, from $35.6 million in the second quarter of 2021 to $28.3 million in the second quarter of 2022. This decline is mainly due to lower operating earnings, partially offset by the decrease in income taxes. On a per share basis, net earnings attributable to shareholders of the Corporation went from $0.41 to $0.33, respectively.
details at: https://tctranscontinental.com/en-us/company-overview/news-room/press-releases/transcontinental-inc-announces-results-for-the-second

Related Posts

Direct Marketing Industry Veteran Jim Andersen Is Named Interim CEO of SG360° (piworld.com)

SG360°, an industry-leading provider of performance-driven direct marketing solutions, announced that effective immediately, James (Jim) Andersen has been appointed Interim CEO of SG360° in the wake of the death of the previous CEO, John A. Wallace, Jr. on January 4, 2022. Mr. Andersen has extensive and successful decades of direct marketing experience and has been a member of the SG360° Board of Directors since October of 2021. “We are fortunate to have Jim on our board and that he’s in a position to step in to fill this crucial, temporary role while we search for a permanent successor to John,” said Willie Woods, President of ICV Partners, LLC. “Jim’s close working relationship with John over the last three months will serve the company well as we focus on continuing the execution of the innovation-driven growth strategy that John had begun.”

Sun Chemical Launches New Sheetfed Offset Ink Technologies

Sun Chemical has launched its new groundbreaking ‘Pace’ technology platform for sheetfed offset inks. SunPak FSP, Sun Chemical’s flagship sheetfed offset low migration ink for food packaging, will be the first ink to transition to the new technology with the launch of SunPak FSP EcoPace. The inks are designed to support optimal productivity on high-speed modern printing machines and have strong sustainability credentials. In an era marked by faster machines, lower-quality papers, cost pressures, and sustainability goals, printers are encountering more challenges than ever before. Sun Chemical recognises these challenges and, as a result, is introducing this revolutionary ink based on innovative binder technology providing higher body and lower tack. The benefit of the new technology has been proven through rigorous long-term testing to deliver the highest levels of productivity, the lowest applied cost, and the best overall sustainability benefits. Sun Chemical’s dedication to compliance and certifications also ensures that Sun Chemical’s products not only meet but exceed current regulatory requirements. Pace technology delivers Sun Chemical’s most sustainable offerings yet. This is achieved through a dual approach of selecting vegetable oil based formulations in which PTFE wax is not used. These formulations deliver the highest bio-renewable content (BRC) supplemented by exceptional performance on press that ensures minimal wastage of paper/board and subsequently reduced usage of energy and solvent wash through fewer stoppages.

LSC Communications Awarded Multi-Year Print Agreement with Bauer Media Group USA

LSC Communications has signed a multi-year agreement with Bauer Media Group USA, the number one seller of magazines at retail in the country. Beginning in January 2018, LSC will print 17 of Bauer’s popular print titles including Woman’s World, First for Women, In Touch Weekly, Life & Style Weekly, Closer Weekly and J-14, among others. According to Thomas J. Quinlan III, Chairman and CEO of LSC Communications, “With Bauer as one of the most successful magazine publishers in the world, LSC is honored to have been selected for our optimal print production and mailing solutions. We look forward to continuing to support Bauer’s vision for many years.” Click Read More below for additional information.
Back To Top
×Close search
Search