Revenues for the third quarter of 2015 went from $483.0 million to $481.9 million. The increase in volume in the packaging division, the printing contracts signed in 2014 and the appreciation of the US dollar against the Canadian dollar had a favourable impact on revenues. These contributions were however offset mainly by the impact of the transformation of the advertising market on the results of certain of the Corporation's niches, in particular on the operations of the Media Sector, which saw a decline in revenues from local and national advertisers. In addition, the loss of certain customers early in the fiscal year continues to have a negative impact on the flyer printing operations. Adjusted operating earnings went from $58.0 million to $71.6 million in the third quarter of 2015, an increase of 23.4%. This performance is attributable to the increase in volume in the packaging division, the optimization of the cost structure across the Corporation, the favourable impact of the exchange rate and the impact of the decrease in the stock price on the stock-based compensation.
Transcontinental Inc. (TSX: TCL.A TCL.B) announced today it is divesting of its assets in the province of Saskatchewan. The transaction includes the sale of its 13 local newspapers and associated web properties, as well as some commercial printing equipment and related book of business in Saskatchewan, to Star News Publishing Inc., a local newspaper publisher and printer with interests in Saskatchewan and Alberta. The sale of the local newspapers is effective immediately, while the printing plant, located at 838 – 56th Street East in Saskatoon, will remain in operation for a transition period, after which it will close.
“Given challenging market conditions and limited synergies with the rest of our assets, primarily in Quebec and Eastern Canada, we have made the decision to divest of our newspaper publications, located throughout Saskatchewan, and today are announcing the sale of these publications to Star News Publishing Inc.,” said Julia Kamula, Senior Vice-President, TC Media Local Solutions. “From a geographic perspective, the reality of operating a small number of newspapers in Western Canada was simply not efficient for TC Media. The new owner’s portfolio of assets is much more aligned with these publications, better enabling their growth and continued evolution. This transaction is a very positive development for both our employees and these operations moving forward.”
The newspapers involved in this transaction are:
• Moose Jaw – The Moose Jaw Times Herald (Daily) and unCut (Weekly)
• Prince Albert – The Prince Albert Daily Herald (Daily), Rural Roots (Weekly) and SHOP P.A. (Periodical)
• Swift Current – The Southwest Booster (Weekly)
• Coronach – The Triangle News (Weekly)
• Grenfell – The Grenfell Sun (Weekly)
• Broadview – The Broadview Express (Weekly)
• Oxbow – The Oxbow Herald (Weekly)
• Radville – The Radville Star (Weekly) and Deep South Star (Weekly)
• Southern Life (Monthly)
“In light of the current print market, we must continuously adapt and review our equipment utilization to maximize our printing platform,” said Jacques Grégoire, President of TC Transcontinental Printing. “Given the sale of our local newspapers and the remaining commercial printing volume in the plant, we made the decision to dispose of our printing assets in Saskatchewan. We are certain that customers will continue to be well served by the new owner and we thank them for their support over the past several years.”
Roger W. Holmes, owner of Star News Publishing Inc. added: “With our long-standing and innovative printing and publishing roots in Saskatchewan and Alberta, we feel we are well positioned to take the TC Transcontinental publications and print operations to the next level. The values that TC Transcontinental upholds are well aligned with our mission ‘to serve our readers with news and advertising of high integrity’ and we welcome this opportunity.”
Unfortunately, the closure of the Saskatoon printing plant will result in the loss of approximately 30 full time positions when the transition period is complete. Transcontinental Inc. thanks these employees for their dedicated contribution to the company.
See more at: http://tctranscontinental.com/en/-/transcontinental-inc-divesting-assets-in-saskatchewan#sthash.id83NCyy.dpuf