Transcontinental Inc. Completes Two Acquisitions and Increases its
Profitability in the Second Quarter
MONTREAL, QUEBEC--(Marketwired - Jun 5, 2014) -
(TSX:TCL.A)(TSX:TCL.B)(TSX:TCL.PR.D)
|
(in millions of dollars, except per share data) |
Q2-14 |
Q2-13(1) |
% |
|
YTD 2014 |
YTD 2013(1) |
% |
|
|
Revenues |
498.2 |
517.8 |
(3.8 |
) |
997.5 |
1,043.4 |
(4.4 |
) |
|
Adjusted operating earnings before amortization (Adjusted
EBITDA) |
82.8 |
80.4 |
3.0 |
|
151.4 |
149.8 |
1.1 |
|
|
Adjusted operating earnings (Adjusted EBIT) |
58.5 |
54.2 |
7.9 |
|
102.0 |
97.7 |
4.4 |
|
|
Adjusted net earnings applicable to participating shares |
36.8 |
32.6 |
12.9 |
|
63.2 |
59.0 |
7.1 |
|
|
Per share |
0.47 |
0.42 |
11.9 |
|
0.81 |
0.76 |
6.6 |
|
|
Net earnings applicable to participating shares |
34.7 |
25.3 |
37.2 |
|
51.9 |
41.0 |
26.6 |
|
|
Per share |
0.45 |
0.32 |
40.6 |
|
0.67 |
0.52 |
28.8 |
|
| Please refer to the table "Reconciliation of Non-IFRS
financial measures" in this press release. |
|
(1) |
2013
figures have been restated to take into account the effects of
amended IAS 19 - Employee Benefits, IFRS 11 - Joint Arrangements
and other elements. |
Highlights
- Revenues decreased 3.8%, primarily due to the soft advertising
market.
- Adjusted net earnings applicable to participating shares grew
12.9%, from $32.6 million to $36.8 million. On a per share basis,
they rose from $0.42 to $0.47.
- Completed the acquisition of the assets of Capri Packaging, a
producer of flexible packaging.
- Completed the acquisition of the weekly newspapers owned by Sun
Media Corporation in Quebec and their related Web properties. Under
the terms of the agreement with the Competition Bureau, the
Corporation must put some weekly newspapers up for sale.
- Closed a private financing agreement of $250 million in senior
unsecured notes.
- Signed a multi-year agreement with Postmedia Network Inc. to
print The Gazette newspaper.
Transcontinental
Inc.'s (TSX:TCL.A)(TSX:TCL.B)(TSX:TCL.PR.D) revenues decreased by
3.8% in the second quarter, from $517.8 million to $498.2 million,
primarily due to the soft advertising market, which continues to
influence our marketing products printing as well as our newspaper
and magazine publishing operations. This decrease was partially
offset by the sustained performance of our flyer printing
operations and by new contracts in both operating sectors.
Adjusted operating
earnings rose from $54.2 million to $58.5 million. This performance
is due to the company-wide optimization of our cost structure and
our highly efficient printing platform. It was partially offset by
the soft advertising market as mentioned above. Net earnings
applicable to participating shares increased from $25.3 million, or
$0.32 per share, to $34.7 million, or $0.45 per share. This
improvement is due to lower restructuring and other costs, an
increase in adjusted operating earnings and lower financial
expenses, partially offset by an increase in income taxes. Adjusted
net earnings applicable to participating shares grew 12.9%, from
$32.6 million, or $0.42 per share, to $36.8 million, or $0.47 per
share.
"We are proud to
have completed two major transactions that position TC
Transcontinental strategically for the future. With the acquisition
of the Capri Packaging assets, we have taken a first step into the
flexible packaging market, which is a new promising growth area for
the Corporation. In addition, the acquisition of the Sun Media
weekly newspapers in Quebec strengthens our assets in this market,
while ensuring our ability to evolve our local solutions offering
in Quebec. Furthermore, our second quarter results were
satisfactory. Despite the pressure we are experiencing in the
advertising market, the increase in our profitability demonstrates
the effectiveness of our strategy, namely strengthening existing
assets and developing new revenue sources," said François Olivier,
President and Chief Executive Officer.
"For coming
quarters, our excellent financial position combined with our
ability to generate significant cash flows gives us the flexibility
we need to integrate our recent acquisitions, continue our
transformation and invest in the future of the Corporation," Mr.
Olivier added.
Supplementary
Information
- On April 10, 2014, the Corporation announced the renewal of its
normal course issuer bid from April 15, 2014 to April 14,
2015.
- On May 3, 2014, the Corporation completed the acquisition of
the assets of Capri Packaging, a producer of flexible packaging,
operating two facilities located in Clinton, Missouri. The
acquisition will add about US$72 million to TC Transcontinental's
revenues. As part of the transaction, the seller, Schreiber Foods,
Inc. has signed a 10-year agreement to secure Capri Packaging as a
strategic supplier of flexible packaging, which represents about
75% of Capri's total revenues.
- On May 5, 2014, TC Transcontinental Printing signed a
multi-year agreement with Postmedia Network Inc. to print The
Gazette, published primarily for the Montreal market. This
agreement builds on our recent announcement to print the
Vancouver Sun and the Calgary Herald. The
contract with Postmedia Network will take effect in August
2014.
- On May 8, 2014, the Corporation completed a private financing
agreement for an amount of $250 million of 3.897% senior unsecured
notes due in 2019. Transcontinental Inc. intends to use the net
proceeds to repay outstanding indebtedness under its revolving
credit facility and for general corporate purposes.
- On June 1, 2014, Transcontinental Inc. completed the
acquisition of the weekly newspapers owned by Sun Media Corporation
in Quebec and their related Web properties. Under the terms of the
agreement with the Competition Bureau, the Corporation must put
some weekly newspapers up for sale. Despite this requirement, the
transaction will add about $20 million to the operating earnings
before amortization of Transcontinental Inc. and further advance
the local multiplatform offering for businesses and
communities.
Highlights of the
First Half
In the first half of
2014, TC Transcontinental's revenues decreased 4.4%, from $1,043.4
million to $997.5 million. This decrease stems primarily from the
soft advertising market in our two operating sectors. Adjusted
operating earnings grew 4.4%, from $97.7 million to $102.0 million,
due to the optimization of our cost structure. This increase was
partially offset by the factors mentioned above. Net earnings
applicable to participating shares rose from $41.0 million, or
$0.52 per share, to $51.9 million, or $0.67 per share. This
improvement is due to lower financial expenses, a decrease in
restructuring and other costs, as well as an increase in adjusted
operating earnings, partially offset by an increase in income
taxes. Excluding unusual items, adjusted net earnings applicable to
participating shares grew 7.1%, from $59.0 million, or $0.76 per
share, to $63.2 million, or $0.81 per share.
For more detailed
financial information, please see Management's Discussion and
Analysis for the second quarter ended April 30th,
2014 as well as the financial statements in the "Investors"
section of our website at www.tc.tc
Outlook
New agreements to
print magazines, newspapers and marketing products signed since the
start of the fiscal year will reduce the impact of difficult market
conditions in these niches. We believe that our printing offering
to major retail chains will remain relatively stable and we are
continuing to improve our point-of-purchase marketing services. The
Printing Sector will also continue to optimize its cost structure
and operations in order to maintain its longer-term
profitability.
The Media Sector
should continue to benefit from cost-structure optimization
initiatives and the new flyer-distribution agreements that will
help stabilize our operating margin and reduce the impact of
difficult conditions in the advertising market. We will also
continue to invest in the development and commercialization of new
digital products. The acquisition of the Sun Media Corporation
weekly papers in Quebec should also enable us to strengthen our
media assets and improve our offering in local markets.
The Corporation
completed the transaction to acquire the assets of Capri Packaging
in order to start a new growth vector in flexible packaging. We
have initiated the operational integration process, modifying our
organizational structure and creating a packaging division headed
by a team of senior executives with outstanding capabilities in
manufacturing. The long-term agreement with the seller, Schreiber
Foods, Inc., will secure most of the revenues for this division. In
the coming months we will be implementing a plan to build the
loyalty of our existing customers and attract new ones to ensure
our success in this promising niche.
We have secured
additional long-term financing to give us the financial flexibility
required to pursue our transformation and execute our growth
strategy. Given our excellent financial position, we will continue
our balanced approach to capital management, which allows us to
reduce our debt, pay dividends and invest in our transformation
focused on our core competencies. We will also keep on developing
internal projects and evaluating strategic acquisitions to maintain
our position in our niches, while developing our new packaging
growth vector to ensure the long-term success and profitability of
the business.
Reconciliation of
Non-IFRS Financial Measures
Financial data have
been prepared in conformity with IFRS. However, certain measures
used in this press release do not have any standardized meaning
under IFRS and could be calculated differently by other companies.
We believe that many readers analyze our results based on certain
non-IFRS financial measures because such measures are more
appropriate for evaluating the Corporation's operating performance.
Internally, management uses such non-IFRS financial information as
an indicator of business performance, and evaluates management's
effectiveness with specific reference to these indicators. These
measures should be considered in addition to, not as a substitute
for or superior to, measures of financial performance prepared in
accordance with IFRS.
The following table
reconciles IFRS financial measures to non-IFRS financial
measures.
| Reconciliation of Non-IFRS Financial Measures |
| (unaudited) |
|
|
|
|
|
Three months ended April 30 |
|
|
Six months ended April 30 |
|
|
|
(in millions of dollars, except per share amounts) |
|
2014 |
|
|
2013 (1) |
|
|
2014 |
|
|
|
2013 (1) |
|
|
|
Net earnings applicable to participating shares |
$ |
34.7 |
|
$ |
25.3 |
|
$ |
51.9 |
|
|
$ |
41.0 |
|
|
|
Dividends on preferred shares, net of related taxes |
|
1.7 |
|
|
1.7 |
|
|
3.4 |
|
|
|
3.4 |
|
|
|
Non-controlling interests |
|
0.4 |
|
|
0.4 |
|
|
0.1 |
|
|
|
0.1 |
|
|
|
Income tax |
|
14.9 |
|
|
10.7 |
|
|
23.6 |
|
|
|
13.7 |
|
|
|
Share of earnings in interests in joint ventures, net of related
taxes |
|
(0.2 |
) |
|
(0.3 |
) |
|
(0.5 |
) |
|
|
(0.4 |
) |
|
|
Net financial expenses |
|
4.0 |
|
|
6.5 |
|
|
8.6 |
|
|
|
15.2 |
|
|
|
Impairment of assets |
|
0.1 |
|
|
0.7 |
|
|
0.5 |
|
|
|
2.8 |
|
|
|
Restructuring and other costs |
|
2.9 |
|
|
9.2 |
|
|
14.4 |
|
|
|
21.9 |
|
|
|
Adjusted operating earnings |
$ |
58.5 |
|
$ |
54.2 |
|
$ |
102.0 |
|
|
$ |
97.7 |
|
|
|
Amortization |
|
24.3 |
|
|
26.2 |
|
|
49.4 |
|
|
|
52.1 |
|
|
|
Adjusted operating earnings before amortization |
$ |
82.8 |
|
$ |
80.4 |
|
$ |
151.4 |
|
|
$ |
149.8 |
|
|
|
Net earnings applicable to participating shares |
$ |
34.7 |
|
$ |
25.3 |
|
$ |
51.9 |
|
|
$ |
41.0 |
|
|
|
Impairment of assets (after tax) |
|
0.1 |
|
|
0.6 |
|
|
0.4 |
|
|
|
2.1 |
|
|
|
Restructuring and other costs (after tax) |
|
2.0 |
|
|
6.7 |
|
|
10.9 |
|
|
|
15.9 |
|
|
|
Adjusted net earnings applicable to participating shares |
$ |
36.8 |
|
$ |
32.6 |
|
$ |
63.2 |
|
|
$ |
59.0 |
|
|
|
Weighted Average number of participating shares outstanding |
|
78.0 |
|
|
77.9 |
|
|
78.0 |
|
|
|
78.0 |
|
|
|
Adjusted net earnings applicable to participating shares per
share |
$ |
0.47 |
|
$ |
0.42 |
|
$ |
0.81 |
|
|
$ |
0.76 |
|
|
|
|
|
|
|
|
|
|
|
|
As at |
|
|
|
As at |
|
|
|
|
|
|
|
|
|
|
|
April 30, |
|
|
|
October 31, |
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
|
2013 (1) |
|
|
|
Long-term debt |
|
|
|
|
|
|
$ |
119.7 |
|
|
$ |
128.9 |
|
|
|
Current portion of long-term debt |
|
|
|
|
|
|
|
161.9 |
|
|
|
218.3 |
|
|
|
Cash |
|
|
|
|
|
|
|
(29.9 |
) |
|
|
(26.4 |
) |
|
|
Net indebtedness |
|
|
|
|
|
|
$ |
251.7 |
|
|
$ |
320.8 |
|
|
|
Adjusted operating earnings before amortization (last 12
months) |
|
|
|
|
|
|
$ |
340.2 |
|
|
$ |
338.6 |
|
|
|
Net indebtedness ratio |
|
|
|
|
|
|
|
0.74 |
|
x |
|
0.95 |
|
x |
|
(1) |
2013
figures have been restated to take into account the effects of IAS
19 amended - Employee Benefits, IFRS 11 - Joint Arrangements and
other elements. |
Dividends
Dividend on
Participating Shares
The Corporation's
Board of Directors declared a quarterly dividend of $0.16 per share
on Class A Subordinate Voting Shares and Class B Shares. This
dividend is payable on July 17, 2014 to shareholders of record at
the close of business on June 30, 2014.
Dividend on
Preferred shares
The Corporation's
Board of Directors declared a quarterly dividend of $0.4207 per
share on Cumulative 5-Year Rate Reset First Preferred Shares,
Series D. This dividend is payable on July 15, 2014. On an annual
basis, this represents a dividend of $1.6875 per preferred
share.
Additional
Information
Conference
Call
Upon releasing its
second quarter 2014 results, the Corporation will hold a conference
call for the financial community today at 4:15 p.m. The dial-in
numbers are 1 647-788-4922 or 1 877-223-4471. Media may hear the
call in listen-in only mode or tune in to the simultaneous audio
broadcast on the Corporation's website, which will then be archived
for 30 days. For media requests or interviews, please contact
Nathalie St-Jean, Senior Advisor, Corporation Communications of TC
Transcontinental, at 514-954-3581.
Profile
Largest printer and
a leading provider of media and marketing activation solutions in
Canada, TC Transcontinental creates products and services that
allow businesses to attract, reach and retain their target
customers. The Corporation specializes in print and digital media,
the production of magazines, newspapers, books and custom content,
mass and personalized marketing, interactive and mobile
applications, door-to-door distribution, and also manufactures a
range of flexible packaging products in the United States.
Transcontinental
Inc. (TSX:TCL.A)(TSX:TCL.B)(TSX:TCL.PR.D), including TC
Transcontinental, TC Media, TC Transcontinental Printing and TC
Transcontinental Packaging, has over 9,000 employees in Canada and
the United States, and revenues of C$2.1 billion in 2013. Website
www.tc.tc.
Forward-looking
Statements
Our public
communications often contain oral or written forward-looking
statements which are based on the expectations of management and
inherently subject to a certain number of risks and uncertainties,
known and unknown. By their very nature, forward-looking statements
are derived from both general and specific assumptions. The
Corporation cautions against undue reliance on such statements
since actual results or events may differ materially from the
expectations expressed or implied in them. Forward-looking
statements may include observations concerning the Corporation's
objectives, strategy, anticipated financial results and business
outlook. The Corporation's future performance may also be affected
by a number of factors, many of which are beyond the Corporation's
will or control. These factors include, but are not limited to, the
economic situation in the world and particularly in Canada and the
United States, structural changes in the industries in which the
Corporation operates, the exchange rate, availability of capital,
energy costs, competition, the Corporation's capacity to engage in
strategic transactions and integrate acquisitions into its
activities, the regulatory environment, the safety of our packaging
products used in the food industry, innovation of our offering and
concentration of our sales in certain segments. The main risks,
uncertainties and factors that could influence actual results are
described in Management's Discussion and Analysis (MD&A)
for the fiscal year ended on October 31st,
2013, in the latest Annual Information Form and have
been updated in the MD&A for the second quarter ended April
30th, 2014.
Unless otherwise
indicated by the Corporation, forward-looking statements do not
take into account the potential impact of nonrecurring or other
unusual items, nor of divestitures, business combinations, mergers
or acquisitions which may be announced after the date of June 5,
2014.
The forward-looking
statements in this press release are made pursuant to the "safe
harbour" provisions of applicable Canadian securities
legislation.
The forward-looking
statements in this release are based on current expectations and
information available as at June 5, 2014. Such forward-looking
information may also be found in other documents filed with
Canadian securities regulators or in other communications. The
Corporation's management disclaims any intention or obligation to
update or revise these statements unless otherwise required by the
securities authorities.
|
|
| CONSOLIDATED STATEMENTS OF EARNINGS |
| Unaudited |
|
|
Three months ended |
Six months ended |
|
|
April 30 |
April 30 |
|
(in millions of Canadian dollars, except per share data) |
|
2014 |
|
2013 Restated |
|
2014 |
|
2013 Restated |
|
|
Revenues |
$ |
498.2 |
$ |
517.8 |
$ |
997.5 |
$ |
1,043.4 |
|
Operating expenses |
|
415.4 |
|
437.4 |
|
846.1 |
|
893.6 |
|
Restructuring and other costs |
|
2.9 |
|
9.2 |
|
14.4 |
|
21.9 |
|
Impairment of assets |
|
0.1 |
|
0.7 |
|
0.5 |
|
2.8 |
|
|
Operating earnings before amortization |
|
79.8 |
|
70.5 |
|
136.5 |
|
125.1 |
|
Amortization |
|
24.3 |
|
26.2 |
|
49.4 |
|
52.1 |
|
|
Operating earnings |
|
55.5 |
|
44.3 |
|
87.1 |
|
73.0 |
|
Net financial expenses |
|
4.0 |
|
6.5 |
|
8.6 |
|
15.2 |
|
|
Earnings before share of net earnings in interests in joint
ventures and income taxes |
|
51.5 |
|
37.8 |
|
78.5 |
|
57.8 |
|
Share of net earnings in interests in joint ventures, net of
related taxes |
|
0.2 |
|
0.3 |
|
0.5 |
|
0.4 |
|
Income taxes |
|
14.9 |
|
10.7 |
|
23.6 |
|
13.7 |
|
|
Net earnings |
|
36.8 |
|
27.4 |
|
55.4 |
|
44.5 |
|
Non-controlling interests |
|
0.4 |
|
0.4 |
|
0.1 |
|
0.1 |
|
Net earnings attributable to shareholders of the Corporation |
|
36.4 |
|
27.0 |
|
55.3 |
|
44.4 |
|
Dividends on preferred shares, net of related taxes |
|
1.7 |
|
1.7 |
|
3.4 |
|
3.4 |
|
Net earnings attributable to participating shares |
$ |
34.7 |
$ |
25.3 |
$ |
51.9 |
$ |
41.0 |
|
|
Net earnings per participating share - basic |
$ |
0.45 |
$ |
0.32 |
$ |
0.67 |
$ |
0.52 |
|
|
Net earnings per participating share - diluted |
$ |
0.44 |
$ |
0.32 |
$ |
0.66 |
$ |
0.52 |
|
|
Weighted average number of participating shares outstanding - basic
(in millions) |
|
78.0 |
|
77.9 |
|
78.0 |
|
78.0 |
|
|
Weighted average number of participating shares - diluted (in
millions) |
|
78.2 |
|
77.9 |
|
78.2 |
|
78.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|
| Unaudited |
|
|
Three months ended |
|
Six months ended |
|
|
April 30 |
|
April 30 |
|
| (in millions of Canadian dollars) |
|
2014 |
|
|
2013 Restated |
|
|
2014 |
|
|
2013 Restated |
|
|
|
| Net earnings |
$ |
36.8 |
|
$ |
27.4 |
|
$ |
55.4 |
|
$ |
44.5 |
|
|
|
| Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Items that will be reclassified to net earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change related to cash flow hedges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in the fair value of derivatives designated as cash flow
hedges |
|
0.8 |
|
|
(1.1 |
) |
|
0.2 |
|
|
1.0 |
|
|
|
Reclassification of the net change in the fair value of derivatives
designated as cash flow hedges in prior periods, recognized in net
earnings during the period |
|
0.8 |
|
|
1.4 |
|
|
- |
|
|
(0.1 |
) |
|
|
Related income taxes |
|
0.3 |
|
|
0.1 |
|
|
0.1 |
|
|
0.3 |
|
|
|
1.3 |
|
|
0.2 |
|
|
0.1 |
|
|
0.6 |
|
|
|
|
Cumulative translation differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized exchange gains (losses) on the translation of the
financial statements of foreign operations |
|
(0.1 |
) |
|
0.6 |
|
|
2.8 |
|
|
0.3 |
|
|
|
Unrealized exchange gains (losses) on the translation of a debt
designated as a hedge of a net investment in foreign
operations |
|
0.1 |
|
|
(0.2 |
) |
|
(2.4 |
) |
|
(0.6 |
) |
|
|
- |
|
|
0.4 |
|
|
0.4 |
|
|
(0.3 |
) |
|
|
| Items that will not be reclassified to net
earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in actuarial gains and losses in respect of
defined benefit plans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial gains (losses) in respect of defined benefit plans |
|
17.2 |
|
|
(8.6 |
) |
|
11.2 |
|
|
3.4 |
|
|
|
Related income taxes |
|
4.6 |
|
|
(2.2 |
) |
|
3.0 |
|
|
0.8 |
|
|
|
12.6 |
|
|
(6.4 |
) |
|
8.2 |
|
|
2.6 |
|
|
|
| Other comprehensive income (loss) |
|
13.9 |
|
|
(5.8 |
) |
|
8.7 |
|
|
2.9 |
|
| Comprehensive income |
$ |
50.7 |
|
$ |
21.6 |
|
$ |
64.1 |
|
$ |
47.4 |
|
|
|
| Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of the Corporation |
$ |
50.3 |
|
$ |
21.2 |
|
$ |
64.0 |
|
$ |
47.3 |
|
|
Non-controlling interests |
|
0.4 |
|
|
0.4 |
|
|
0.1 |
|
|
0.1 |
|
|
$ |
50.7 |
|
$ |
21.6 |
|
$ |
64.1 |
|
$ |
47.4 |
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY |
|
Unaudited |
|
|
| (in
millions of Canadian dollars) |
|
|
|
|
Attributable to shareholders of the Corporation |
|
|
|
|
|
|
|
|
|
|
|
Share capital |
|
Contributed surplus |
Retained earnings |
|
Accumulated other comprehensive loss |
|
Total |
|
Non- controlling interests |
|
Total equity |
|
|
|
| Balance as at October 31, 2013 (Restated) |
$ |
462.8 |
|
$ |
2.9 |
$ |
362.5 |
|
$ |
(13.2 |
) |
$ |
815.0 |
|
$ |
0.4 |
|
$ |
815.4 |
|
| Net earnings |
|
- |
|
|
- |
|
55.3 |
|
|
- |
|
|
55.3 |
|
|
0.1 |
|
|
55.4 |
|
| Other comprehensive income |
|
- |
|
|
- |
|
- |
|
|
8.7 |
|
|
8.7 |
|
|
- |
|
|
8.7 |
|
| Shareholders' contributions and distributions to
shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends |
|
- |
|
|
- |
|
(27.2 |
) |
|
- |
|
|
(27.2 |
) |
|
- |
|
|
(27.2 |
) |
|
Stock-option based compensation |
|
- |
|
|
0.3 |
|
- |
|
|
- |
|
|
0.3 |
|
|
- |
|
|
0.3 |
|
| Balance as at April 30, 2014 |
$ |
462.8 |
|
$ |
3.2 |
$ |
390.6 |
|
$ |
(4.5 |
) |
$ |
852.1 |
|
$ |
0.5 |
|
$ |
852.6 |
|
|
|
| Balance as at November 1, 2012 |
$ |
467.7 |
|
$ |
2.5 |
$ |
514.2 |
|
$ |
(84.4 |
) |
$ |
900.0 |
|
$ |
1.4 |
|
$ |
901.4 |
|
| Net earnings |
|
- |
|
|
- |
|
44.4 |
|
|
- |
|
|
44.4 |
|
|
0.1 |
|
|
44.5 |
|
| Other comprehensive income |
|
- |
|
|
- |
|
- |
|
|
2.9 |
|
|
2.9 |
|
|
- |
|
|
2.9 |
|
| Shareholders' contributions and distributions to
shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Participating share redemptions |
|
(6.4 |
) |
|
- |
|
(5.2 |
) |
|
- |
|
|
(11.6 |
) |
|
- |
|
|
(11.6 |
) |
|
Dividends |
|
- |
|
|
- |
|
(103.9 |
) |
|
- |
|
|
(103.9 |
) |
|
(1.4 |
) |
|
(105.3 |
) |
|
Stock-option based compensation |
|
- |
|
|
0.4 |
|
- |
|
|
- |
|
|
0.4 |
|
|
- |
|
|
0.4 |
|
| Balance as at April 30, 2013 (Restated) |
$ |
461.3 |
|
$ |
2.9 |
$ |
449.5 |
|
$ |
(81.5 |
) |
$ |
832.2 |
|
$ |
0.1 |
|
$ |
832.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
|
|
Unaudited |
|
|
|
| (in millions of Canadian dollars) |
|
As at |
|
|
As at |
|
|
|
April 30, |
|
October 31, |
|
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
Restated |
|
|
|
| Current assets |
|
|
|
|
|
|
|
Cash |
$ |
29.9 |
|
$ |
26.4 |
|
|
Accounts receivable |
|
381.8 |
|
|
419.2 |
|
|
Income taxes receivable |
|
16.5 |
|
|
12.1 |
|
|
Inventories |
|
80.2 |
|
|
82.0 |
|
|
Prepaid expenses and other current assets |
|
15.1 |
|
|
13.9 |
|
|
|
523.5 |
|
|
553.6 |
|
|
|
| Property, plant and equipment |
|
577.2 |
|
|
596.0 |
|
| Intangible assets |
|
191.3 |
|
|
194.1 |
|
| Goodwill |
|
324.0 |
|
|
324.0 |
|
| Investments in joint ventures |
|
1.3 |
|
|
0.8 |
|
| Deferred income taxes |
|
143.6 |
|
|
147.7 |
|
| Other assets |
|
56.8 |
|
|
34.6 |
|
|
$ |
1,817.7 |
|
$ |
1,850.8 |
|
|
|
| Current liabilities |
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
237.8 |
|
$ |
272.8 |
|
|
Provisions |
|
5.6 |
|
|
10.3 |
|
|
Income taxes payable |
|
11.1 |
|
|
6.3 |
|
|
Deferred revenues and deposits |
|
61.2 |
|
|
55.9 |
|
|
Current portion of long-term debt |
|
161.9 |
|
|
218.3 |
|
|
|
477.6 |
|
|
563.6 |
|
|
|
| Long-term debt |
|
119.7 |
|
|
128.9 |
|
| Deferred income taxes |
|
83.0 |
|
|
67.1 |
|
| Provisions |
|
39.8 |
|
|
40.2 |
|
| Other liabilities |
|
245.0 |
|
|
235.6 |
|
|
|
965.1 |
|
|
1,035.4 |
|
|
|
| Equity |
|
|
|
|
|
|
|
Share capital |
|
462.8 |
|
|
462.8 |
|
|
Contributed surplus |
|
3.2 |
|
|
2.9 |
|
|
Retained earnings |
|
390.6 |
|
|
362.5 |
|
|
Accumulated other comprehensive loss |
|
(4.5 |
) |
|
(13.2 |
) |
| Attributable to shareholders of the Corporation |
|
852.1 |
|
|
815.0 |
|
| Non-controlling interests |
|
0.5 |
|
|
0.4 |
|
|
|
852.6 |
|
|
815.4 |
|
|
$ |
1,817.7 |
|
$ |
1,850.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
| Unaudited |
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
April 30 |
|
|
April 30 |
|
| (in millions of Canadian dollars) |
|
2014 |
|
|
2013 Restated |
|
|
2014 |
|
|
2013 Restated |
|
|
|
| Operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings |
$ |
36.8 |
|
$ |
27.4 |
|
$ |
55.4 |
|
$ |
44.5 |
|
| Adjustments to reconcile net earnings and cash flows
from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization |
|
31.4 |
|
|
32.1 |
|
|
63.4 |
|
|
64.3 |
|
|
Impairment of assets |
|
0.1 |
|
|
0.7 |
|
|
0.5 |
|
|
2.8 |
|
|
Financial expenses on long-term debt |
|
3.8 |
|
|
4.5 |
|
|
8.4 |
|
|
10.4 |
|
|
Net losses (gains) on disposal of assets |
|
0.2 |
|
|
0.1 |
|
|
0.1 |
|
|
(0.1 |
) |
|
Income taxes |
|
14.9 |
|
|
10.7 |
|
|
23.6 |
|
|
13.7 |
|
|
Stock-option based compensation |
|
0.1 |
|
|
0.2 |
|
|
0.3 |
|
|
0.4 |
|
|
Other |
|
(0.8 |
) |
|
(0.6 |
) |
|
0.4 |
|
|
1.5 |
|
| Cash flows generated by operating activities before
changes in non-cash operating items and income taxes paid |
|
86.5 |
|
|
75.1 |
|
|
152.1 |
|
|
137.5 |
|
| Changes in non-cash operating items |
|
(14.7 |
) |
|
(1.5 |
) |
|
(13.1 |
) |
|
156.8 |
|
| Income taxes paid |
|
(4.1 |
) |
|
(3.1 |
) |
|
(1.3 |
) |
|
(13.9 |
) |
| Cash flows from operating activities |
|
67.7 |
|
|
70.5 |
|
|
137.7 |
|
|
280.4 |
|
|
|
| Investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Business combinations |
|
- |
|
|
(1.7 |
) |
|
(1.0 |
) |
|
(25.0 |
) |
|
Disposals of subsidiaries |
|
1.5 |
|
|
- |
|
|
1.5 |
|
|
- |
|
|
Acquisitions of property, plant and equipment |
|
(9.9 |
) |
|
(9.2 |
) |
|
(18.7 |
) |
|
(20.3 |
) |
|
Disposals of property, plant and equipment |
|
0.1 |
|
|
1.9 |
|
|
0.8 |
|
|
2.2 |
|
|
Increase in intangible assets |
|
(4.9 |
) |
|
(7.8 |
) |
|
(11.2 |
) |
|
(12.0 |
) |
|
Cash flows from investing activities |
|
(13.2 |
) |
|
(16.8 |
) |
|
(28.6 |
) |
|
(55.1 |
) |
|
|
| Financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reimbursement of long-term debt |
|
(16.9 |
) |
|
(0.6 |
) |
|
(25.5 |
) |
|
(81.2 |
) |
|
Net increase (decrease) in revolving term credit facility |
|
(18.0 |
) |
|
44.0 |
|
|
(46.0 |
) |
|
(2.5 |
) |
|
Financial expenses on long-term debt |
|
(4.5 |
) |
|
(4.8 |
) |
|
(8.0 |
) |
|
(11.4 |
) |
|
Dividends on participating shares |
|
(12.5 |
) |
|
(89.2 |
) |
|
(23.8 |
) |
|
(100.5 |
) |
|
Dividends on preferred shares |
|
(1.7 |
) |
|
(1.7 |
) |
|
(3.4 |
) |
|
(3.4 |
) |
|
Dividends paid to non-controlling interests |
|
- |
|
|
- |
|
|
- |
|
|
(1.4 |
) |
|
Participating share redemptions |
|
- |
|
|
- |
|
|
- |
|
|
(12.1 |
) |
|
Cash flows from financing activities |
|
(53.6 |
) |
|
(52.3 |
) |
|
(106.7 |
) |
|
(212.5 |
) |
|
|
| Effect of exchange rate changes on cash denominated in
foreign currencies |
|
0.1 |
|
|
0.1 |
|
|
1.1 |
|
|
- |
|
|
|
| Net change in cash |
|
1.0 |
|
|
1.5 |
|
|
3.5 |
|
|
12.8 |
|
| Cash at beginning of period |
|
28.9 |
|
|
24.1 |
|
|
26.4 |
|
|
12.8 |
|
| Cash at end of period |
$ |
29.9 |
|
$ |
25.6 |
|
$ |
29.9 |
|
$ |
25.6 |
|
|
|
| Non-cash investing and financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in capital asset acquisitions financed by accounts
payable |
$ |
1.4 |
|
$ |
0.2 |
|
$ |
- |
|
$ |
(4.6 |
) |
Media: Nathalie St-JeanSenior Advisor, Corporate -
CommunicationsTC
Transcontinental514-954-3581nathalie.st-jean@tc.tcwww.tc.tcFinancial
Community: Jennifer F. McCaugheySenior Director, Investor
Relationsand External Corporate Communications - TC
Transcontinental514-954-2821jennifer.mccaughey@tc.tcwww.tc.tc
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