Transcontinental Inc. Ends Fiscal 2013 with a Steady Performance
MONTREAL, QUEBEC--(Marketwired - Dec 5, 2013) - Transcontinental
Inc. (TSX:TCL.A)(TSX:TCL.B)(TSX:TCL.PR.D)
(in millions of dollars, except per share data) |
Q4-13 |
|
Q4-12 |
|
% |
|
2013 |
|
2012 |
|
% |
|
Revenues |
566.3 |
|
585.1 |
|
(3.2 |
) |
2,110.1 |
|
2,112.1 |
|
(0.1 |
) |
Adjusted operating income before amortization (1)(Adjusted
EBITDA) |
112.6 |
|
123.8 |
|
(9.0 |
) |
349.1 |
|
357.6 |
|
(2.4 |
) |
Adjusted operating income (1)(Adjusted EBIT) |
86.1 |
|
96.4 |
|
(10.7 |
) |
243.8 |
|
245.2 |
|
(0.6 |
) |
Adjusted net income applicable to participating shares (1) |
58.2 |
|
61.9 |
|
(6.0 |
) |
157.2 |
|
149.4 |
|
5.2 |
|
Per share |
0.75 |
|
0.77 |
|
(2.6 |
) |
2.02 |
|
1.85 |
|
9.2 |
|
Net income (loss) applicable to participating shares |
(92.2 |
) |
(51.9 |
) |
- |
|
(14.5 |
) |
(183.3 |
) |
- |
|
Per share |
(1.19 |
) |
(0.65 |
) |
- |
|
(0.19 |
) |
(2.27 |
) |
- |
|
Note 1: Please refer to the table "Reconciliation of Non-IFRS
financial measures" in this press release.
Highlights of Fiscal 2013
- Adjusted net income applicable to participating shares grew
5.2%, from $149.4 million to $157.2 million; on a per share basis,
it rose from $1.85 to $2.02.
- Excellent Printing Sector performance, including $30 million in
realized synergies from the acquisition of Quad/Graphics Canada,
Inc. in 2013 and $40 million since the acquisition in March
2012.
- Recorded an asset impairment charge (including goodwill) of
$170 million mainly due to difficult market conditions in the Media
Sector.
- Successfully launched in-store marketing printing services for
Canadian retailers, which generated annualized revenues of $25
million in 2013.
- Received an amount of US$200 million from the renegotiation of
an agreement with Hearst Corporation.
- Declared a special dividend of $1.00 per participating share,
or approximately $78 million, in addition to the regular
dividend.
- Maintained a solid financial position with a net indebtedness
ratio of 0.91x.
- Entered into a definitive agreement pursuant to which the
Corporation will acquire all Quebec community newspapers and
associated web properties from Sun Media Corporation, a subsidiary
of Quebecor Media, for a total purchase price of $75 million, as
well as an agreement with Quebecor Media for the printing of some
of its magazines and direct marketing material.
Transcontinental Inc.'s (TSX:TCL.A)(TSX:TCL.B)(TSX:TCL.PR.D)
revenues for fiscal 2013 remained stable at $2.1 billion. This
performance is mainly related to the contribution from
acquisitions, in particular the acquisition of Quad/Graphics
Canada, Inc., which was however offset by the end of the contract
to print and distribute Zellers flyers, a decrease in volume in our
book and magazine printing operations, a difficult advertising
environment and the incentives granted for the renewal of certain
contracts in 2012.
Adjusted operating income declined slightly, or 0.6%, from
$245.2 million to $243.8 million. This slight decrease is primarily
due to the share-price variance in fiscal 2013, compared to fiscal
2012 (a 62% rise in share price), which increased the stock-based
compensation expense, as well as the reasons mentioned above. This
decrease in adjusted operating income was partially offset,
however, by synergies derived from the acquisition of Quad/Graphics
Canada, Inc. and the optimization of our company-wide cost
structure. Net income applicable to participating shares improved
from a loss of $183.3 million, or $2.27 per share, to a loss of
$14.5 million, or $0.19 per share. This improvement is mainly due
to unusual income tax adjustments of $115.2 million recorded in
2012, including financial expenses, and to a lower asset impairment
charge in 2013. Adjusted net income applicable to participating
shares grew 5.2%, from $149.4 million, or $1.85 per share, to
$157.2 million, or $2.02 per share.
"In fiscal 2013, considering the profound transformation that is
ongoing in our industry, we have delivered strong results that
reflect the excellence of our manufacturing know-how and our new
product and service development efforts," said François Olivier,
President and Chief Executive Officer. "I am especially proud of
the solid performance delivered by our Printing Sector which
increased its adjusted operating income by 12%, or $23 million,
making 2013 a record year for this operating segment. These results
are due in large part to the successful integration of
Quad/Graphics Canada, Inc.'s operations into our print network,
which generated significant synergies and enabled greater
optimization of our platform. In addition, despite the ongoing
challenge of a soft advertising market, I would highlight that the
launch of new digital media products in 2013, as well as
investments in non-advertising related businesses, such as
educational publishing, contributed to maintaining our
revenues.
As a result of our excellent financial position and our ability
to generate significant cash flows, we were able to both
significantly reduce our debt and pay a special dividend to our
participating shareholders in addition to paying the regular
dividend. Our strong balance sheet gives us the financial
flexibility we need to strategically pursue our transformation in
conjunction with our employees, our communities, our shareholders
and our customers."
Other Highlights for Fiscal 2013
Printing Sector
In fiscal year 2013, our Printing Sector recorded a significant
increase in adjusted operating income of 12%, or $23 million, to
reach $223 million. The integration of Quad/Graphics Canada, Inc.'s
operations generated $30 million in synergies in 2013 and $40
million since the acquisition in March 2012. During fiscal 2013, we
concluded several multi-year agreements valued at over $40 million
per year, including an agreement with Safeway U.S. to print flyers
at our plant in Fremont, California; a five-year agreement to print
the Calgary Herald and the Vancouver Sun, both owned by Postmedia
Network Inc.; and an agreement with Shoppers Drug Mart/Pharmaprix
for in-store marketing, a promising new niche.
Media Sector
Ted Markle was appointed President of the Media Sector.
Following his appointment, he revised the sector's organizational
structure with the aim of reducing costs and increasing return on
investment. We formed a strategic alliance with Zone3, further to
which the latter will handle television production for TC Media's
brands and which also provides for the merger of all our television
production operations with those of Zone3. We successfully launched
Véro, an inspiring women magazine, and four TC Media
flagship brands on iPad: Coup de pouce, Canadian
Living, ELLE Québec and Elle Canada. We
successfully re-launched high-potential titles: Coup de
pouce, Canadian Living and Western Living.
In order to diversify our operations by capturing non
advertising-related revenue streams, we acquired Groupe Modulo, a
publisher of French-language educational materials. We launched the
TC Media Incubator, a laboratory for the creation, development and
incubation of new digital products. In addition, we introduced
AutoGo.com and JobGO.ca, two new and innovative media platforms. In
light of ongoing analysis in the Media Sector, we made the
difficult decision to close More and Vita, which
were no longer achieving expected results.
Financial Highlights
Fiscal 2013 was characterized by debt reduction, due to our
significant cash flows and the amount of US$200 million received
from the renegotiation of an agreement with Hearst Corporation. Our
adjusted net indebtedness ratio improved from 1.32x as at October
31, 2012 to 0.91x as at October 31, 2013. During fiscal 2013, TC
Transcontinental continued a multi-pronged approach to capital
allocation. The Corporation focused on future growth by investing
$74 million in property, plant and equipment and intangible assets
as well as $25 million in strategic acquisitions. It also
distributed cash to its shareholders through the payment of
quarterly dividends of $52 million to holders of participating and
preferred shares, the payment of a special dividend of $78 million
to holders of participating shares and the repurchase of
participating shares for a total amount of $12 million.
Asset Impairment
In the fiscal year ended October 31, 2013, the Corporation
recorded an asset impairment charge of $170 million, of which $160
million is related to goodwill, mainly as a result of the difficult
market conditions in the Media Sector that continue to adversely
affect the advertising revenues of certain business groups.
Fourth Quarter
TC Transcontinental's revenues for the fourth quarter declined
from $585.1 million in 2012 to $566.3 million in 2013, mainly as a
result of the difficult market conditions that affected our
magazine and book printing operations. This decrease is also
attributable to the soft advertising market that continued to
impact our Media Sector, mostly in local markets, and to the end of
the contract to print and distribute Zellers flyers after its store
closures. The decrease was partially offset by new contracts in the
Printing Sector.
In the fourth quarter, adjusted operating income decreased by
10.7%, from $96.4 million to $86.1 million. The main reason for
this decline is the share-price variance in the fourth quarter of
2013, which increased the stock-based compensation expense, as well
as the favourable non-recurring items recorded in the fourth
quarter of 2012. The combined results of the two operating sectors
were relatively stable. The Printing Sector delivered an increase
of 12%, or $7 million, in adjusted operating income as a result of
synergies generated from the integration of Quad/Graphics Canada,
Inc.'s operations as well as a decrease in our costs arising from
the optimization of our platform. Adjusted operating income in our
Media Sector declined by 28%, or $9 million, during the fourth
quarter mostly due to the soft local advertising market.
Net income applicable to participating shares decreased from a
loss of $51.9 million, or $0.65 per share, to a loss of $92.2
million, or $1.19 per share, mainly due to an increase in the asset
impairment charge, partially offset by the favourable effect of the
write-down of tax assets recorded in the fourth quarter of 2012.
Adjusted net income applicable to participating shares was down
6.0%, from $61.9 million to $58.2 million, mostly as a result of
the decrease in our results explained above, partially offset by a
decrease in income taxes and financial expenses. On a per share
basis, it declined from $0.77 to $0.75.
For more detailed financial information, please see
Management's Discussion and Analysis for the
fiscal year ended October 31, 2013 as well
as the financial statements in the "Investors" section of our
website at www.tc.tc
Subsequent Event
Announcement of a definitive agreement to acquire all Quebec
community newspapers from Sun Media Corporation
On December 5th, 2013, the Corporation announced that it has
entered into a definitive agreement pursuant to which it will
acquire all Quebec community newspapers and associated web
properties from Sun Media Corporation, a subsidiary of Quebecor
Media, for a total purchase price of $75 million. This agreement
has been approved by the Boards of Directors of both
Transcontinental Inc. and Quebecor Media Inc., and the transaction
is subject to obtaining regulatory clearances under the Canadian
Competition Act.
Outlook
The Printing Sector generated synergies reaching approximately
$40 million, as expected at the time of the acquisition of
Quad/Graphics Canada, Inc., and should generate a few million
dollars in additional synergies during fiscal 2014. In addition,
since the start of fiscal 2013, we have signed new agreements to
print newspapers, flyers, and marketing products whose contribution
should be noted more significantly in fiscal 2014. We will continue
to develop our offering to retailers, more specifically with
respect to in-store marketing, and pursue our efforts to integrate
other Canadian newspaper publishers into our efficient printing
network. However, these items should be offset by an anticipated
decrease in volume within our existing magazine and book printing
operations.
In the Media Sector, the difficult market conditions with
respect to advertising spending in our local and national markets
are likely to persist. As a result, we will continue to optimize
our cost structure to limit the potential impact on profit margins.
Furthermore, we will keep on investing in the development of new
products and services, mostly digital and interactive.
The new agreements announced with Quebecor Media Inc. for the
printing of some of its magazines and direct marketing materials
should begin to progressively have a positive impact as of February
2014. We also entered into a definitive agreement with Sun Media
Corporation, a subsidiary of Quebecor Media, subject to regulatory
approval, to acquire all of its Quebec community newspapers.
Following the closure of this transaction, we expect these items to
have an annualized impact of around $20 million on operating income
before amortization.
We will continue to generate significant cash flows in the
short-term, and our excellent financial position should permit us
to continue applying our three-pronged capital management approach,
which allows us to reduce our debt, pay dividends and invest in our
transformation focusing on our core competencies, such as
manufacturing. We will also keep on developing internal projects
and evaluating strategic acquisitions to maintain our position as
Canadian leader in marketing activation, while developing new
niches to ensure the long-term growth 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 normalized for evaluating the
Corporation's operating performance. Management uses such non-IFRS
financial information to evaluate the performance of its operations
and managers. 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 October 31 |
|
Years ended October 31 |
|
(in millions of dollars, except per share amounts) |
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
Net
income (loss) applicable to participating shares |
$ |
(92.2 |
) |
$ |
(51.9 |
) |
$ |
(14.5 |
) |
$ |
(183.3 |
) |
Dividends on preferred shares |
|
1.7 |
|
|
1.7 |
|
|
6.8 |
|
|
6.8 |
|
Net
loss (income) related to discontinued operations (after tax) |
|
- |
|
|
0.3 |
|
|
- |
|
|
7.4 |
|
Non-controlling interests |
|
0.3 |
|
|
0.6 |
|
|
0.4 |
|
|
0.6 |
|
Unusual adjustments to income taxes |
|
- |
|
|
57.2 |
|
|
- |
|
|
99.2 |
|
Income tax expenses |
|
2.0 |
|
|
6.6 |
|
|
27.6 |
|
|
13.1 |
|
Financial expenses related to unusual adjustments to income
taxes |
|
- |
|
|
- |
|
|
- |
|
|
16.0 |
|
Financial expenses |
|
5.7 |
|
|
7.8 |
|
|
25.5 |
|
|
30.5 |
|
Gain
on business acquisition |
|
- |
|
|
(0.4 |
) |
|
- |
|
|
(32.1 |
) |
Impairment of assets |
|
165.3 |
|
|
51.2 |
|
|
170.0 |
|
|
232.0 |
|
Restructuring and other costs |
|
3.3 |
|
|
23.3 |
|
|
28.0 |
|
|
55.0 |
|
Adjusted operating income |
$ |
86.1 |
|
$ |
96.4 |
|
$ |
243.8 |
|
$ |
245.2 |
|
Amortization |
|
26.5 |
|
|
27.4 |
|
|
105.3 |
|
|
112.4 |
|
Adjusted operating income before amortization |
$ |
112.6 |
|
$ |
123.8 |
|
$ |
349.1 |
|
$ |
357.6 |
|
Net
income (loss) applicable to participating shares |
$ |
(92.2 |
) |
$ |
(51.9 |
) |
$ |
(14.5 |
) |
$ |
(183.3 |
) |
Net
loss (income) from discontinued operations (after tax) |
|
- |
|
|
0.3 |
|
|
- |
|
|
7.4 |
|
Unusual adjustments to income taxes |
|
- |
|
|
57.2 |
|
|
- |
|
|
99.2 |
|
Net
financial expenses related to unusual adjustments to income taxes
(after tax) |
|
- |
|
|
- |
|
|
- |
|
|
16.0 |
|
Gain
on business acquisition (after tax) |
|
- |
|
|
(0.4 |
) |
|
- |
|
|
(32.1 |
) |
Impairment of assets (after tax) |
|
147.9 |
|
|
39.9 |
|
|
151.3 |
|
|
202.6 |
|
Restructuring and other costs (after tax) |
|
2.5 |
|
|
16.8 |
|
|
20.4 |
|
|
39.6 |
|
Adjusted net income applicable to participating shares |
$ |
58.2 |
|
$ |
61.9 |
|
$ |
157.2 |
|
$ |
149.4 |
|
Average number of participating shares outstanding |
|
77.9 |
|
|
80.0 |
|
|
78.0 |
|
|
80.7 |
|
Adjusted net income applicable to participating shares per
share |
$ |
0.75 |
|
$ |
0.77 |
|
$ |
2.02 |
|
$ |
1.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at October 31, 2013 |
|
|
As at October 31, 2012 |
|
Long-term debt |
$ |
128.9 |
|
$ |
204.1 |
|
Current portion of long-term debt |
|
218.3 |
|
|
283.5 |
|
Cash |
|
(30.3 |
) |
|
(16.8 |
) |
Net indebtedness |
$ |
316.9 |
|
$ |
470.8 |
|
Adjusted operating income before amortization (last 12 months) |
$ |
349.1 |
|
$ |
357.6 |
|
Net indebtedness ratio |
|
0.91x |
|
|
1.32x |
|
Dividends
Dividend on Participating Shares
The Corporation's Board of Directors declared a quarterly
dividend of $0.145 per share on Class A Subordinate Voting Shares
and Class B Shares. This dividend is payable on January 20, 2014 to
shareholders of record at the close of business on January 3,
2014.
Dividend on Preferred Shares
The Board declared a quarterly dividend of $0.4253 per share on
cumulative 5-year rate reset first preferred shares, series D. This
dividend is payable on January 15, 2014. On an annual basis, this
represents a dividend of $1.6875 per preferred share.
Additional Information
Conference Call
Upon releasing its fiscal 2013 results, the Corporation will
hold a conference call for the financial community today at 4:15
p.m. The dial-in numbers are 514 940-2795 or 1 416 644-3418 or 1
800-814-4861 and the access code is 4651012. Media may hear the
call in listen-only mode or tune in to the simultaneous audio
broadcast on the Corporation's Web site, which will then be
archived for 30 days. For media requests for information or
interviews, please contact Nathalie St-Jean, Senior Advisor,
Corporate Communications of TC Transcontinental, at 514
954-3581.
Profile
Largest printer and 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, and door-to-door distribution.
Transcontinental Inc. (TSX:TCL.A)(TSX:TCL.B)(TSX:TCL.PR.D),
including TC Transcontinental, TC Media and TC Transcontinental
Printing, 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,
as well as the Corporation's capacity to engage in strategic
transactions and integrate acquisitions into its activities. 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 and in the latest Annual
Information Form.
Unless otherwise indicated by the Corporation, forward-looking
statements do not take into account the potential impact of
non-recurring or other unusual items, nor of divestitures, business
combinations, mergers or acquisitions which may be announced after
the date of December 5, 2013.
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 December 5,
2013. 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 INCOME (LOSS) |
Years ended October 31, 2013 and 2012 |
(in
millions of Canadian dollars, except per share data) |
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
2012 |
|
|
|
|
|
|
|
|
Revenues |
$ |
2,110.1 |
|
$ |
2,112.1 |
|
Operating expenses |
|
1,761.0 |
|
|
1,754.5 |
|
Restructuring and other costs |
|
28.0 |
|
|
55.0 |
|
Impairment of assets |
|
170.0 |
|
|
232.0 |
|
Gain on business acquisition |
|
- |
|
|
(32.1 |
) |
|
|
|
|
|
|
|
Operating income before amortization |
|
151.1 |
|
|
102.7 |
|
Amortization |
|
105.3 |
|
|
112.4 |
|
|
|
|
|
|
|
|
Operating income (loss) |
|
45.8 |
|
|
(9.7 |
) |
Net financial expenses |
|
25.5 |
|
|
46.5 |
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
20.3 |
|
|
(56.2 |
) |
Income taxes |
|
27.6 |
|
|
112.3 |
|
|
|
|
|
|
|
|
Net loss from continuing operations |
|
(7.3 |
) |
|
(168.5 |
) |
Net loss from discontinued operations |
|
- |
|
|
(7.4 |
) |
|
|
|
|
|
|
|
Net loss |
|
(7.3 |
) |
|
(175.9 |
) |
Non-controlling interests |
|
0.4 |
|
|
0.6 |
|
Net loss attributable to shareholders of the
Corporation |
|
(7.7 |
) |
|
(176.5 |
) |
Dividends on preferred shares, net of related
taxes |
|
6.8 |
|
|
6.8 |
|
Net loss attributable to participating shares |
$ |
(14.5 |
) |
$ |
(183.3 |
) |
|
|
|
|
|
|
|
Net loss per participating share - basic and
diluted |
|
|
|
|
|
|
|
Continuing operations |
$ |
(0.19 |
) |
$ |
(2.18 |
) |
|
Discontinued operations |
|
- |
|
|
(0.09 |
) |
|
$ |
(0.19 |
) |
$ |
(2.27 |
) |
|
|
|
|
|
|
|
Weighted average number of participating shares - basic
and diluted (in millions) |
|
78.0 |
|
|
80.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) |
Years ended October 31, 2013 and 2012 |
(in
millions of Canadian dollars) |
|
|
|
|
|
|
2013 |
|
|
2012 |
|
|
|
|
|
|
|
|
Net loss |
$ |
(7.3 |
) |
$ |
(175.9 |
) |
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will be reclassified to net income
(loss): |
|
|
|
|
|
|
|
Net change related to cash flow hedges |
|
|
|
|
|
|
|
|
Net
change in the fair value of derivatives designated as cash flow
hedges |
|
2.8 |
|
|
(0.6 |
) |
|
|
Reclassification of the net change in the fair value of derivatives
designated as cash flow hedges in prior periods, recognized in net
income (loss) during the period |
|
(2.8 |
) |
|
3.9 |
|
|
|
Related income taxes |
|
(0.2 |
) |
|
0.9 |
|
|
|
0.2 |
|
|
2.4 |
|
|
|
|
|
|
|
|
|
Cumulative translation differences |
|
|
|
|
|
|
|
|
Unrealized exchange net gains on the translation of the financial
statements of foreign operations |
|
1.0 |
|
|
0.7 |
|
|
|
Unrealized exchange losses on the translation of a debt designated
as a hedge of a net investment in foreign operations |
|
(1.6 |
) |
|
- |
|
|
|
Related income taxes |
|
(0.2 |
) |
|
- |
|
|
|
(0.4 |
) |
|
0.7 |
|
|
|
|
|
|
|
|
Items that will not be reclassified to net income
(loss): |
|
|
|
|
|
|
|
Changes in actuarial gains and losses in respect of
defined benefit plans |
|
|
|
|
|
|
|
|
Actuarial gains (losses) in respect of defined benefit plans |
|
85.2 |
|
|
(81.9 |
) |
|
|
Related income taxes |
|
22.7 |
|
|
(22.5 |
) |
|
|
62.5 |
|
|
(59.4 |
) |
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
62.3 |
|
|
(56.3 |
) |
Comprehensive income (loss) |
$ |
55.0 |
|
$ |
(232.2 |
) |
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
Shareholders of the Corporation |
$ |
54.6 |
|
$ |
(232.8 |
) |
|
Non-controlling interests |
|
0.4 |
|
|
0.6 |
|
|
$ |
55.0 |
|
$ |
(232.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY |
Years ended October 31, 2013 and 2012 |
(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 November 1, 2012 |
$ |
467.7 |
|
$ |
2.5 |
|
$ |
514.2 |
|
$ |
(84.4 |
) |
$ |
900.0 |
|
$ |
1.4 |
|
$ |
901.4 |
|
Net income (loss) |
|
- |
|
|
- |
|
|
(7.7 |
) |
|
- |
|
|
(7.7 |
) |
|
0.4 |
|
|
(7.3 |
) |
Other comprehensive income |
|
- |
|
|
- |
|
|
- |
|
|
62.3 |
|
|
62.3 |
|
|
- |
|
|
62.3 |
|
Shareholders' contributions and distributions to
shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Participating share redemptions |
|
(6.4 |
) |
|
- |
|
|
(5.2 |
) |
|
- |
|
|
(11.6 |
) |
|
- |
|
|
(11.6 |
) |
|
Exercice of stock options |
|
1.5 |
|
|
(0.3 |
) |
|
- |
|
|
- |
|
|
1.2 |
|
|
- |
|
|
1.2 |
|
|
Dividends |
|
- |
|
|
- |
|
|
(129.9 |
) |
|
- |
|
|
(129.9 |
) |
|
(1.4 |
) |
|
(131.3 |
) |
|
Stock-option based compensation |
|
- |
|
|
0.7 |
|
|
- |
|
|
- |
|
|
0.7 |
|
|
- |
|
|
0.7 |
|
Balance as at October 31, 2013 |
$ |
462.8 |
|
$ |
2.9 |
|
$ |
371.4 |
|
$ |
(22.1 |
) |
$ |
815.0 |
|
$ |
0.4 |
|
$ |
815.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at November 1, 2011 |
$ |
478.1 |
|
$ |
1.8 |
|
$ |
750.3 |
|
$ |
(28.1 |
) |
$ |
1,202.1 |
|
$ |
0.8 |
|
$ |
1,202.9 |
|
Net income (loss) |
|
- |
|
|
- |
|
|
(176.5 |
) |
|
- |
|
|
(176.5 |
) |
|
0.6 |
|
|
(175.9 |
) |
Other comprehensive loss |
|
- |
|
|
- |
|
|
- |
|
|
(56.3 |
) |
|
(56.3 |
) |
|
- |
|
|
(56.3 |
) |
Shareholders' contributions and distributions to
shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Participating share redemptions |
|
(11.0 |
) |
|
- |
|
|
(6.8 |
) |
|
- |
|
|
(17.8 |
) |
|
- |
|
|
(17.8 |
) |
|
Exercise of stock options |
|
0.6 |
|
|
(0.1 |
) |
|
- |
|
|
- |
|
|
0.5 |
|
|
- |
|
|
0.5 |
|
|
Dividends |
|
- |
|
|
- |
|
|
(52.8 |
) |
|
- |
|
|
(52.8 |
) |
|
- |
|
|
(52.8 |
) |
|
Stock-option based compensation |
|
- |
|
|
0.8 |
|
|
- |
|
|
- |
|
|
0.8 |
|
|
- |
|
|
0.8 |
|
Balance as at October 31, 2012 |
$ |
467.7 |
|
$ |
2.5 |
|
$ |
514.2 |
|
$ |
(84.4 |
) |
$ |
900.0 |
|
$ |
1.4 |
|
$ |
901.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
Years ended October 31, 2013 and 2012 |
(in
millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
As at October 31, 2013 |
|
|
As at October 31, 2012 |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Cash |
$ |
30.3 |
|
$ |
16.8 |
|
|
Accounts receivable |
|
421.2 |
|
|
449.8 |
|
|
Income taxes receivable |
|
12.5 |
|
|
38.9 |
|
|
Inventories |
|
82.0 |
|
|
82.5 |
|
|
Prepaid expenses and other current assets |
|
14.1 |
|
|
14.7 |
|
|
|
560.1 |
|
|
602.7 |
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
596.6 |
|
|
651.2 |
|
Intangible assets |
|
194.2 |
|
|
171.5 |
|
Goodwill |
|
325.7 |
|
|
487.0 |
|
Deferred income taxes |
|
148.0 |
|
|
192.6 |
|
Other assets |
|
34.7 |
|
|
31.2 |
|
|
$ |
1,859.3 |
|
$ |
2,136.2 |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
275.8 |
|
$ |
336.8 |
|
|
Provisions |
|
10.3 |
|
|
15.5 |
|
|
Income taxes payable |
|
6.4 |
|
|
50.3 |
|
|
Deferred revenues and deposits |
|
61.1 |
|
|
39.3 |
|
|
Current portion of long-term debt |
|
218.3 |
|
|
283.5 |
|
|
|
571.9 |
|
|
725.4 |
|
|
|
|
|
|
|
|
Long-term debt |
|
128.9 |
|
|
204.1 |
|
Deferred income taxes |
|
67.1 |
|
|
68.4 |
|
Provisions |
|
40.2 |
|
|
45.3 |
|
Other liabilities |
|
235.8 |
|
|
191.6 |
|
|
|
1,043.9 |
|
|
1,234.8 |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
Share
capital |
|
462.8 |
|
|
467.7 |
|
|
Contributed surplus |
|
2.9 |
|
|
2.5 |
|
|
Retained earnings |
|
371.4 |
|
|
514.2 |
|
|
Accumulated other comprehensive loss |
|
(22.1 |
) |
|
(84.4 |
) |
|
Attributable to shareholders of the Corporation |
|
815.0 |
|
|
900.0 |
|
|
Non-controlling interests |
|
0.4 |
|
|
1.4 |
|
|
|
815.4 |
|
|
901.4 |
|
|
$ |
1,859.3 |
|
$ |
2,136.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
Years ended October 31, 2013 and 2012 |
(in
millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
2012 |
|
|
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
|
Net
loss |
$ |
(7.3 |
) |
$ |
(175.9 |
) |
|
Less: Net loss from discontinued operations |
|
- |
|
|
(7.4 |
) |
Net loss from continuing operations |
|
(7.3 |
) |
|
(168.5 |
) |
|
|
|
|
|
|
|
Adjustments to reconcile net loss from continuing
operations and cash flows from operating activities: |
|
|
|
|
|
|
|
Amortization |
|
131.2 |
|
|
132.9 |
|
|
Impairment of assets |
|
170.0 |
|
|
232.0 |
|
|
Gain
on business acquisition |
|
- |
|
|
(32.1 |
) |
|
Financial expenses on long-term debt |
|
20.1 |
|
|
27.0 |
|
|
Interest on tax reassessment |
|
- |
|
|
16.0 |
|
|
Net
loss (gain) on disposal of assets |
|
0.2 |
|
|
(1.2 |
) |
|
Income taxes |
|
27.6 |
|
|
112.3 |
|
|
Stock-option based compensation |
|
0.7 |
|
|
0.8 |
|
|
Other |
|
(1.9 |
) |
|
1.6 |
|
Cash flows generated by operating activities before
changes in non-cash operating items and income tax paid |
|
340.6 |
|
|
320.8 |
|
Changes in non-cash operating items |
|
88.2 |
|
|
(43.8 |
) |
Income tax paid |
|
(12.6 |
) |
|
(48.0 |
) |
Cash flows from continuing operations |
|
416.2 |
|
|
229.0 |
|
Cash flows from discontinued operations |
|
- |
|
|
0.9 |
|
|
|
416.2 |
|
|
229.9 |
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
Business combinations |
|
(24.5 |
) |
|
(60.4 |
) |
|
Acquisitions of property, plant and equipment |
|
(47.4 |
) |
|
(37.3 |
) |
|
Disposals of property, plant and equipment |
|
5.1 |
|
|
3.6 |
|
|
Increase in intangible assets |
|
(26.8 |
) |
|
(22.0 |
) |
|
Cash flows from investments in continuing operations |
|
(93.6 |
) |
|
(116.1 |
) |
|
Cash flows from investments in discontinued operations |
|
- |
|
|
10.0 |
|
|
|
(93.6 |
) |
|
(106.1 |
) |
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
Reimbursement of long-term debt |
|
(88.8 |
) |
|
(89.8 |
) |
|
Net
increase (decrease) in revolving term credit facility |
|
(57.6 |
) |
|
11.4 |
|
|
Financial expenses on long-term debt |
|
(20.5 |
) |
|
(26.1 |
) |
|
Interest on tax reassessment |
|
- |
|
|
(8.1 |
) |
|
Dividends on participating shares |
|
(123.1 |
) |
|
(46.0 |
) |
|
Dividends on preferred shares |
|
(6.8 |
) |
|
(6.8 |
) |
|
Dividends on non-controlling interests |
|
(1.4 |
) |
|
- |
|
|
Issuance of participating shares |
|
1.2 |
|
|
0.5 |
|
|
Participating share redemptions |
|
(12.1 |
) |
|
(17.3 |
) |
|
Cash flows from the financing of continuing operations |
|
(309.1 |
) |
|
(182.2 |
) |
|
|
|
|
|
|
|
Effect of exchange rate changes on cash denominated in
foreign currencies |
|
- |
|
|
0.2 |
|
|
|
|
|
|
|
|
Net change in cash |
|
13.5 |
|
|
(58.2 |
) |
Cash at beginning of year |
|
16.8 |
|
|
75.0 |
|
Cash at end of year |
$ |
30.3 |
|
$ |
16.8 |
|
Non-cash investing and financing activities |
|
|
|
|
|
|
|
Net change in capital asset acquisitions financed by accounts
payable |
$ |
(3.8 |
) |
$ |
2.7 |
|
Media: Nathalie St-JeanSenior Advisor, Corporate
CommunicationsTC TranscontinentalTelephone : 514
954-3581nathalie.st-jean@tc.tcwww.tc.tcFinancial Community:
Jennifer F. McCaugheySenior Director, Investor Relationsand
External Corporate CommunicationsTC TranscontinentalTelephone : 514
954-2821jennifer.mccaughey@tc.tc / www.tc.tc
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