Torstar Corporation (TSX:TS.B) today reported financial results for the fourth
quarter ended December 31, 2013.
Highlights for the fourth quarter:
-- Segmented revenue was $366.5 million in the fourth quarter of 2013, down
$29.2 million (7.4%) from the fourth quarter of 2012.
-- Segmented EBITDA (see "non-IFRS measures") was $63.2 million in the
fourth quarter of 2013, up $0.1 million from $63.1 million in the fourth
quarter of 2012.
-- Net income attributable to equity shareholders was $20.6 million ($0.26
per share) in the fourth quarter of 2013 down $0.5 million from $21.1
million ($0.26 per share) in the fourth quarter of 2012.
-- Adjusted earnings per share (see "non-IFRS measures") was $0.48 in the
fourth quarter of 2013, down $0.01 from $0.49 in the fourth quarter of
2012.
-- Net debt (see "non-IFRS measures") was $158.5 million at December 31,
2013, down $16.0 million from $174.5 million at September 30, 2013.
-- At December 31, 2013, Torstar's net asset related to its defined benefit
pension plans was $31.0 million, an increase of $55.7 million from a net
obligation of $24.7 million at September 30, 2013 and reflecting a
combination of asset returns, increased long-term interest rates and
contributions.
Highlights for the year:
-- Segmented Revenue was $1,381.8 million down $104.0 million or 7.0%, from
2012. Excluding the impact of a decrease at TMGTV primarily from lower
product sales, revenue was down $86.4 million (5.9%) in 2013.
-- Segmented EBITDA was $173.5 million in 2013, down $28.4 million from
$201.9 million in 2012.
-- Net loss attributable to equity shareholders was $28.0 million or $0.35
per share in 2013 down $110.3 million or $1.38 per share from net income
attributable to equity shareholders of $82.3 million or $1.03 per share
in 2012 and reflects a $94.9 million increase in impairment of assets
and restructuring and other charges over 2012.
-- Net debt was $158.5 million at December 31, 2013, down $4.5 million from
$163.0 million at December 31, 2012.
-- In 2013, Torstar's net benefit obligation related to its defined benefit
pension and post retirement benefit plans decreased by $217.3 million
primarily as a result of asset returns, increased long-term interest
rates and contributions.
-- At December 31, 2013, Torstar's net asset related to its defined benefit
pension plans was $31.0 million, an increase of $212.4 million from a
net obligation of $181.4 million at December 31, 2012 and reflecting a
combination of asset returns, increased long-term interest rates and
contributions.
"The year finished on a positive note as results in the quarter were stable with
EBITDA up by $0.1 million to $63.2 million," said David Holland, President and
CEO of Torstar Corporation. "A strong finish in the media operations, up $5.4
million, was offset by a decline at Harlequin. The fourth quarter earnings
growth in the media operations was attributable to Star Media Group, with
contributions from both the Toronto Star and Metro. At the Toronto Star, a
combination of improved revenue performance relative to earlier quarters and
efforts on costs yielded growth in earnings. Metro also had a strong fourth
quarter growing both its revenue and earnings. Lower revenues were the primary
challenge at Harlequin as the operation continues to adjust to the more digital
environment."
"The pension situation improved significantly in 2013. Funding into the plans
will be lower in 2014 and we would anticipate further reduction in funding
within the next few years. We continue to enjoy the benefits of modest leverage
with our net debt declining to $158.5 million in 2013."
"Looking forward, Harlequin continues to make the adjustments necessary to
succeed in the more digital environment. Including the year over year benefit of
the depreciation of the Canadian dollar on foreign earnings, we anticipate
Harlequin results to be relatively stable year over year. In the media
operations, we anticipate continued pressure on print advertising revenues,
although we were pleased to experience some relative improvement in the print
advertising trend in the fourth quarter. Multi-platform subscriber revenues are
expected to be relatively stable and we anticipate modest growth in distribution
revenues. Ongoing restructuring efforts will help to mitigate the earnings
impact of the anticipated advertising revenue pressure. As we resize the cost
base, we remain disciplined and committed to ensuring that we continue to invest
in those areas of greatest value to our customers as we adapt to the evolving
media environment."
The following table provides a continuity of earnings per share from 2012 to 2013:
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Fourth Quarter Full Year
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Net income attributable to equity
shareholders per share 2012 $0.26 $1.03
Changes
- Operations 0.00 (0.28)
- Interest and financing costs 0.00 0.02
- Income (loss) of associated
businesses (0.01) 0.07
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Change in adjusted earnings per share
2013(i) (0.01) (0.19)
- Restructuring and other charges (0.09) (0.19)
- Impairment of assets 0.14 (0.92)
- Non-cash foreign exchange (0.01) (0.02)
- Adjustment to contingent
consideration 0.00 0.02
- Gain on sale of assets (2012) (0.03) (0.07)
- Investment write-down and loss 0.00 (0.01)
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Net income (loss) attributable to equity
shareholders per share 2013 $0.26 ($0.35)
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(i) Adjusted earnings per share is a non-IFRS measure, see "non-IFRS
Measures".
OPERATING RESULTS - FOURTH QUARTER 2013
The following tables sets out, in $000's the segmented results for the three
months ended December 31, 2013 and 2012.
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Fourth Quarter 2013
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Book
(in $000's) Media(i) Publishing(i) Corporate
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Operating revenue $271,449 $95,026
Salaries and benefits (98,070) (23,616) ($2,643)
Other operating costs (118,387) (59,866) (673)
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EBITDA(ii) 54,992 11,544 (3,316)
Amortization &
depreciation (8,862) (1,211) (10)
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Operating earnings(ii) 46,130 10,333 (3,326)
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Restructuring and other
charges (16,512) (77)
Impairment of assets (266)
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Operating profit
(loss)(ii) $29,352 $10,256 ($3,326)
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Fourth Quarter 2013
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Adjustments
& Total Per
Eliminations Consolidated
Total for Joint Statement of
(in $000's) Segmented(i) Ventures Income
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Operating revenue $366,475 ($18,100) $348,375
Salaries and benefits (124,329) 5,851 (118,478)
Other operating costs (178,926) 8,897 (170,029)
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EBITDA(ii) 63,220 (3,352) 59,868
Amortization &
depreciation (10,083) 767 (9,316)
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Operating earnings(ii) 53,137 (2,585) 50,552
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Restructuring and other
charges (16,589) 403 (16,186)
Impairment of assets (266) (266)
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Operating profit
(loss)(ii) $36,282 ($2,182) $34,100
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Fourth Quarter 2012
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Book
(in $000's) Media(i) Publishing(i) Corporate
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Operating revenue $290,757 $104,989
Salaries and benefits (107,816) (23,665) ($2,498)
Other operating costs (133,376) (64,490) (786)
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EBITDA(ii) 49,565 16,834 (3,284)
Amortization &
depreciation (8,910) (1,080) (16)
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Operating earnings(ii) 40,655 15,754 (3,300)
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Restructuring and other
charges (5,706) (944)
Impairment of assets (11,734)
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Operating profit
(loss)(ii) $23,215 $14,810 ($3,300)
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Fourth Quarter 2012
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Adjustments
& Total Per
Eliminations Consolidated
Total for Joint Statement of
(in $000's) Segmented(i) Ventures Income
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Operating revenue $395,746 ($17,854) $377,892
Salaries and benefits (133,979) 6,460 (127,519)
Other operating costs (198,652) 8,839 (189,813)
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EBITDA(ii) 63,115 (2,555) 60,560
Amortization &
depreciation (10,006) 717 (9,289)
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Operating earnings(ii) 53,109 (1,838) 51,271
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Restructuring and other
charges (6,650) 389 (6,261)
Impairment of assets (11,734) 11,000 (734)
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Operating profit
(loss)(ii) $34,725 $9,551 $44,276
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(i) Includes proportionately consolidated share of joint venture operations
(ii) These are non-IFRS or additional IFRS measures, see "non-IFRS
measures".
Revenue
Segmented Revenue was down $29.2 million or 7.4% in the fourth quarter of 2013.
Media Segment revenues were down $19.3 million or 6.6% in the fourth quarter.
The fourth quarter Media Segment revenues reflect print advertising revenue
declines but also include the impact of having five fewer publishing days at the
Metroland Media Group daily newspapers and at least one fewer publishing day at
the weekly newspapers in the fourth quarter of 2013 compared to the fourth
quarter of 2012. This was the result of variations in the calendar and is the
reversal of additional publishing days included in the first quarter of 2013.
Media Segment revenues also reflect a $2.4 million decrease in revenue at
Metroland Media Group's TMGTV primarily resulting from lower product sales.
While print advertising revenues declined during the fourth quarter of 2013, the
rate of decline slowed compared to the year to date trend experienced to the end
of the third quarter largely the result of improved trends in the Star Media
Group.
Digital revenues in the Media Segment were down slightly by 0.8% in the fourth
quarter of 2013 representing an improvement in the year to date trend
experienced to the end of the third quarter. This decline was primarily the
result of lower revenues at WagJag and Workopolis largely offset by growth in
other digital properties including eyeReturn Marketing, Olive Media and
thestar.com. Digital revenues were 12.2% of total Media Segment revenues in the
fourth quarter of 2013 up from 11.5% in the fourth quarter of 2012.
Book Publishing Segment revenues were down $10.0 million in the fourth quarter
including a $3.2 million increase from the impact of foreign exchange with
revenues down in both North America and Overseas. The decrease in North America
was the result of revenue declines in all channels with digital revenues in
North America believed to be negatively affected by increased discounts being
offered on digital sales of other publishers' bestselling titles. Overseas,
growth in digital revenue was insufficient to offset print declines and revenues
continued to be affected by challenging economic conditions, particularly in
Europe.
Salaries and benefits
Total segmented salaries and benefits expense was down $9.7 million or 7.2% in
the fourth quarter as savings from restructuring initiatives of $7.9 million in
the Media Segment and $0.9 million in the Book Publishing Segment were offset by
the impact of regular wage increases and additional pension costs.
Other operating costs
Total segmented other operating costs were down $19.7 million or 9.9% in the
fourth quarter of 2013. Media Segment other operating costs were down $15.0
million or 11.2% in the fourth quarter resulting from: (i) variable cost
reductions resulting from revenue declines; (ii) the impact of having fewer
publishing days at Metroland Media Group (discussed above); (iii) a decrease in
costs at TMGTV resulting from lower product sales; and (iv) the impact of cost
reduction initiatives. In the Book Publishing Segment, other operating costs
were down $4.6 million or 7.2% in the fourth quarter resulting from variable
cost reductions due to revenue declines and reduced advertising and promotional
spending.
EBITDA
Segmented EBITDA was $63.2 million in the fourth quarter of 2013, up $0.1
million from the fourth quarter of 2012. Media Segment EBITDA was up $5.4
million or 10.9% as cost reductions more than offset revenue declines. Book
Publishing Segment EBITDA was down $5.3 million reflecting declines in revenue
partially offset by lower advertising and promotional spending and $0.9 million
of savings from restructuring initiatives.
Amortization and depreciation
Segmented amortization and depreciation expense was $10.1 million in the fourth
quarter of 2013, a $0.1 million increase over the fourth quarter of 2012.
Operating earnings
Segmented operating earnings were $53.1 million in the fourth quarter of 2013,
consistent with the fourth quarter of 2012.
Restructuring and other charges
Total segmented restructuring and other charges of $16.6 million and $6.7
million were recorded in the fourth quarter of 2013 and 2012 respectively.
Fourth quarter 2013 restructuring provisions primarily related to the Media
Segment and are expected to result in annual net savings of $12.6 million and a
reduction of approximately 190 positions with $1.2 million of the savings having
been realized in the fourth quarter of 2013.
Impairment of assets
On a segmented basis during the fourth quarter of 2013, Torstar incurred charges
related to asset impairment totaling $0.3 million in respect of certain
equipment and intangible assets associated with restructuring activities in the
Media Segment.
On a segmented basis during the fourth quarter of 2012, Torstar incurred charges
related to asset impairment totaling $11.7 million related to certain equipment,
intangible assets and joint venture investments in the Media Segment. In
connection with restructuring activities, in the fourth quarter of 2012 Torstar
incurred charges related to asset impairment totaling $0.4 million related to
certain equipment in the Metroland Media Group of CGUs and $0.3 million related
to certain equipment and finite life intangible assets in the Star Media Group
of CGUs. Additionally, during the fourth quarter of 2012, Torstar performed its
annual impairment test on the value of intangible assets with a finite useful
life, intangible assets with an indefinite useful life and goodwill. An
impairment charge of $11.0 million was recorded in respect of the Workopolis
joint venture as a result of increased competition in the online recruitment and
job search markets and prevailing economic conditions.
Operating profit
Operating profit was $36.3 million in the fourth quarter of 2013, up $1.6
million from $34.7 million in the fourth quarter of 2012.
Interest and financing costs
Interest and financing costs decreased $0.5 million in the fourth quarter of
2013 relative to the fourth quarter of 2012 primarily reflecting lower financing
costs related to employee benefit plans in the fourth quarter of 2013. Net debt
was $158.5 million at December 31, 2013, down $16.0 million from $174.5 million
at September 30, 2013. Torstar's effective interest rate on long-term debt was
4.2% in the fourth quarter of 2013, up slightly from 4.0% in the same period
last year.
Foreign exchange
Torstar reported a non-cash foreign exchange loss of $1.0 million in the fourth
quarter of 2013 and a loss of $0.1 million in the same period last year. The
loss in the fourth quarter of 2013 was the result of the Canadian dollar being
weaker at the end of the quarter relative to the beginning of the quarter and
with Torstar's Canadian operations being in a net liability position in U.S.
dollars for the quarter.
Income (loss) from joint ventures
Income from joint ventures was $1.8 million in the fourth quarter of 2013
compared to a loss of $9.8 million in the fourth quarter of 2012. This reflects
a combination of lower revenues included in the discussion of Segmented Revenue
as well as impairment charges of $11.0 million recorded in the fourth quarter of
2012 related to Torstar's joint venture investment in Workopolis.
Income (loss) of associated businesses
Loss from associated businesses was $0.6 million in the fourth quarter of 2013
compared to income of $0.2 million in the fourth quarter of 2012. The fourth
quarter of 2013 included income of $1.3 million from Black Press and income of
$0.4 million from Tuango, offset by a loss of $1.5 million from Shop.ca, a loss
of $0.4 million from Canadian Press, a loss of $0.2 million from Blue Ant and a
loss of $0.2 million related to other investments.
The income of $0.2 million in the fourth quarter of 2012 included income of $0.6
million from Blue Ant and income of $0.3 million from Tuango, partially offset
by Torstar's share of losses of $0.2 million from Shop.ca and a loss of $0.5
million from Canadian Press.
Gain on sale of assets
In the fourth quarter of 2012, Torstar recorded a gain of $2.7 million in
connection with the sale of the assets of Insurance Hotline.
Income and other taxes
Torstar's effective tax rate was 29.9% in the fourth quarter of 2013 compared to
25.6% in the fourth quarter of 2012, excluding the impact of impairment charges.
The effective tax rate was higher in 2013 as compared to 2012 as Torstar
recognized a higher proportion of fourth quarter 2013 earnings in foreign
jurisdictions which are subject to higher rates of tax.
Net income attributable to equity shareholders
Torstar reported net income attributable to equity shareholders of $20.6 million
($0.26 per share) in the fourth quarter of 2013, down $0.5 million from $21.1
million ($0.26 per share) in the fourth quarter of 2012.
OPERATING RESULTS - YEAR ENDED DECEMBER 31, 2013
The following tables sets out, in $000's the segmented results for the
years ended December 31, 2013 and 2012.
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2013
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Book
(in $000's) Media(i) Publishing(i) Corporate
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Operating revenue $984,047 $397,719
Salaries and benefits (398,298) (96,570) ($10,743)
Other operating costs (454,972) (244,834) (2,860)
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EBITDA 130,777 56,315 (13,603)
Amortization &
depreciation (34,924) (4,288) (40)
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Operating earnings 95,853 52,027 (13,643)
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Restructuring and other
charges (33,829) (4,095)
Impairment of assets (86,094)
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Operating profit (loss) ($24,070) $47,932 ($13,643)
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The following tables sets out, in $000's the segmented results for the years
ended December 31, 2013 and 2012.
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2013
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Adjustments
& Total Per
Eliminations Consolidated
Total for Joint Statement of
(in $000's) Segmented(i) Ventures Income
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Operating revenue $1,381,766 ($72,975) $1,308,791
Salaries and benefits (505,611) 25,314 (480,297)
Other operating costs (702,666) 36,072 (666,594)
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EBITDA 173,489 (11,589) 161,900
Amortization &
depreciation (39,252) 2,986 (36,266)
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Operating earnings 134,237 (8,603) 125,634
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Restructuring and other
charges (37,924) 705 (37,219)
Impairment of assets (86,094) 9,000 (77,094)
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Operating profit (loss) $10,219 $1,102 $11,321
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2012
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Book
(in $000's) Media(i) Publishing(i) Corporate
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Operating revenue $1,059,261 $426,483
Salaries and benefits (420,441) (95,674) ($10,528)
Other operating costs (500,417) (253,550) (3,210)
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EBITDA 138,403 77,259 (13,738)
Amortization &
depreciation (34,027) (4,107) (48)
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Operating earnings 104,376 73,152 (13,786)
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Restructuring and other
charges (16,498) (1,280)
Impairment of assets (13,003)
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Operating profit (loss) $74,875 $71,872 ($13,786)
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2012
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Adjustments
& Total Per
Eliminations Consolidated
Total for Joint Statement of
(in $000's) Segmented(i) Ventures Income
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Operating revenue $1,485,744 ($78,976) $1,406,768
Salaries and benefits (526,643) 27,158 (499,485)
Other operating costs (757,177) 35,636 (721,541)
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EBITDA 201,924 (16,182) 185,742
Amortization &
depreciation (38,182) 2,909 (35,273)
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Operating earnings 163,742 (13,273) 150,469
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Restructuring and other
charges (17,778) 389 (17,389)
Impairment of assets (13,003) 11,000 (2,003)
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Operating profit (loss) $132,961 ($1,884) $131,077
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(i) Includes proportionately consolidated share of joint venture operations
Revenue
Segmented revenue was $1,381.8 million down $104.0 million or 7.0% in 2013
inclusive of a $17.6 million decrease in revenue at Metroland Media Group's
TMGTV primarily resulting from lower product sales. The decline in product sale
revenues in TMGTV operations is consistent with expected product life cycles in
this business.
Media Segment revenues were down $75.2 million or 7.1% in 2013, inclusive of the
$17.6 million decrease in revenue at Metroland Media Group's TMGTV. This
decrease was largely due to print advertising declines at the newspapers
partially offset by growth in distribution revenue. The 2013 Media Segment
revenues were generated as follows: $628.8 million (64.0%) from print and
digital advertising, $149.0 million (15.1%) from flyer distribution, $138.2
million (14.0%) from subscribers and $68.0 million (6.9%) from other activities
including printing.
The 2012 Media Segment revenues were generated as follows: $694.8 million
(65.6%) from print and digital advertising, $143.8 million (13.6%) from flyer
distribution, $139.7 million (13.2%) from subscribers and $81.0 million (7.6%)
from other activities including printing.
While digital profitability increased during 2013, digital revenues in the Media
Segment were down 5.6% in 2013. This decline was primarily the result of lower
revenues at WagJag and Workopolis partially offset by growth in other digital
properties including eyeReturn Marketing, Olive Media and local digital revenue
at thestar.com. Digital revenues were 11.7% of total Media Segment revenues in
2013 up slightly from 11.5% in 2012.
Book Publishing Segment revenues were down $28.8 million in 2013 including a
$4.1 million increase from the impact of foreign exchange. In North America,
this decrease was the result of revenue declines in the retail print and
direct-to-consumer channels. Overseas, growth in digital was insufficient to
offset print declines and revenues continued to be affected by challenging
economic conditions, particularly in Europe.
Salaries and benefits
Total segmented salaries and benefits expense decreased $21.0 million or 4.0% in
2013 as savings of $27.3 million from restructuring initiatives in the Media
Segment and $3.1 million in the Book Publishing Segment, reduced the impact of
regular wage increases and additional pension costs.
Other operating costs
Total segmented other operating costs were down $54.5 million or 7.2% in 2013.
Media Segment other operating costs were down $45.4 million or 9.1% attributable
to: (i) variable cost reductions resulting from revenue declines; (ii) a
decrease in costs at TMGTV from lower product sales; and (iii) the impact of
cost reduction initiatives. In the Book Publishing Segment other operating costs
were down $8.7 million or 3.4% resulting from variable cost reductions due to
revenue declines and reduced advertising and promotional spending in 2013.
EBITDA
Segmented EBITDA was $173.5 million in 2013, down $28.4 million or 14.1% from
$201.9 million in 2012. Media Segment EBITDA was down $7.6 million or 5.5%
primarily due to print advertising revenue declines, general wage increases as
well as higher pension costs partially offset by cost reduction initiatives.
Book Publishing Segment EBITDA was down $20.9 million primarily due to lower
sales of print books, higher author royalties for digital sales and lower
favourable adjustments to prior year returns provisions. This was partially
offset by higher digital sales, lower advertising and promotional spending and
savings from restructuring initiatives.
Amortization and depreciation
Total segmented amortization and depreciation increased $1.1 million or 2.8% in
2013.
Operating earnings
Segmented operating earnings were $134.2 million in 2013, down $29.5 million or
18.0% from $163.7 million in 2012.
Restructuring and other charges
Total segmented restructuring and other charges of $37.9 million were recorded
in 2013. This included $33.2 million for restructuring initiatives and $0.6
million for other charges in the Media Segment and $3.1 million for
restructuring initiatives and $1.0 million for other charges in the Book
Publishing Segment. The 2013 restructuring initiatives in the Media Segment are
expected to result in annualized net labour savings of approximately $36.6
million and a reduction of approximately 510 positions. The 2013 restructuring
initiatives in the Book Publishing Segment are expected to result in annualized
savings of approximately $3.3 million and a reduction of 31 positions. $15.8
million of the savings were realized in 2013.
Total segmented restructuring and other charges of $17.8 million were recorded
in 2012. This included $16.5 million for restructuring initiatives in the Media
Segment and $0.9 million for restructuring initiatives and $0.4 million for
other charges in the Book Publishing Segment.
Impairment of assets
During 2013, Torstar incurred charges related to asset impairment on a segmented
basis totaling $86.1 million related to certain intangible assets and goodwill
in the Media Segment. These charges did not impact cash flows.
During the third quarter of 2013, Torstar conducted an impairment test on the
carrying value of intangible assets with a finite useful life, intangible assets
with an indefinite useful life and goodwill. In carrying out this testing, it
was determined that the carrying amount of certain intangible assets within the
Metroland Media Group of CGUs and the carrying value of the Star Media Group of
CGUs exceeded the value in use. Accordingly, Torstar recorded impairment of
$12.5 million for intangible assets in the Metroland Media Group and $64.0
million for goodwill in the Star Media Group of CGUs. These impairments were the
result of lower forecasted revenues reflecting shifts in spending by
advertisers. Certain of the impairment charges related to intangible assets
within the Metroland Media Group of CGUs were also the result of internal
reorganization, realignment and integration of certain digital businesses within
the Media Segment which occurred during the third quarter of 2013. As a result
of this and factors noted above, Torstar also recorded a $9.0 million impairment
charge in respect of its Sing Tao Daily joint venture investment.
Other impairment charges totalling $0.6 million were also recorded in 2013 in
respect of certain equipment and intangible assets associated with restructuring
activities in the Media Segment.
In 2012, Torstar incurred charges related to asset impairment on a segmented
basis totalling $13.0 million related to certain equipment, intangible assets
and joint venture investments in the Media Segment. As a result of restructuring
initiatives, which included the consolidation of some facilities, during the
year ended December 31, 2012, Torstar recorded impairment losses of $0.4 million
with respect to equipment in the Metroland Media Group of CGUs and $0.2 million
with respect to equipment and $1.4 million of finite-life intangible assets in
the Star Media Group of CGUs. During the fourth quarter of 2012, Torstar
performed its annual impairment test on the value of intangible assets with a
finite useful life, intangible assets with an indefinite useful life and
goodwill. An impairment charge of $11.0 million was recorded in the Workopolis
joint venture as a result of increased competition in the online recruitment and
job search markets and prevailing economic conditions.
Operating profit
Segmented operating profit was $10.2 million in 2013, down $122.8 million from
$133.0 million in 2012 and reflects a $93.2 million increase in impairment of
assets and restructuring and other charges.
Interest and financing costs
Interest and financing costs were down $2.4 million in 2013. The lower costs
primarily reflect lower financing costs related to employee benefit plans. Net
debt was $158.5 million at December 31, 2013, down $4.5 million from $163.0
million at December 31, 2012. Torstar's effective interest rate on long-term
debt was 4.2% in 2013, up slightly from 4.1% in 2012.
Foreign exchange
The non-cash foreign exchange gain or loss reported in the consolidated
statement of income primarily relates to the translation of U.S. dollar
denominated assets and liabilities held by Torstar's Canadian operations into
Canadian dollars. It does not include the translation of foreign currency
(including U.S. dollars) denominated assets and liabilities of Torstar's foreign
operations or the translation of U.S. dollar debt that has been designated as a
hedge against those net U.S. dollar denominated assets. The foreign exchange on
the translation of those foreign currency denominated assets and liabilities and
the related hedge-designated debt into Canadian dollars is reported through
other comprehensive income ("OCI"). The amount of the non-cash foreign exchange
gain or loss in any year will vary depending on the movement in the relative
value of the Canadian dollar and on whether Torstar's Canadian operations have a
net asset or net liability position in U.S. dollars.
In 2013, Torstar reported a non-cash foreign exchange loss of $1.5 million as a
result of the Canadian dollar being weaker at the end of the year compared with
the beginning and with Torstar's Canadian operations being in a net liability
position in U.S. dollars for most of the year. In 2012, Torstar reported a
non-cash foreign exchange loss of $0.2 million.
Adjustment to contingent consideration
Adjustments to contingent consideration estimates resulted in income of $1.0
million in 2013 and additional costs of $0.3 million in 2012. Estimates of the
fair value of contingent consideration are recorded on the date of the related
acquisition and are revised in future periods as changes in the estimated
payments occur.
Income (loss) from joint ventures
Loss from joint ventures was $2.6 million in 2013 compared to income of $2.2
million in 2012. This reflects a combination of lower revenues included in the
discussion of Segmented Revenue as well as impairment charges of $9.0 million
recorded in 2013 related to Torstar's joint venture investment in Sing Tao Daily
and $11.0 million recorded in 2012 related to Torstar's joint venture investment
in Workopolis.
Income (loss) of associated businesses
Income of associated businesses was $2.3 million in 2013 compared to a loss of
$2.8 million in 2012.
2013 included income of $5.5 million from Black Press and income of $0.7 million
from Tuango, partially offset by a loss of $3.1 million from Shop.ca, a loss of
$0.4 million related to Canadian Press, a loss of $0.2 million from Blue Ant and
a loss of $0.2 million from other investments.
Torstar's share of Black Press's net income was $5.5 million in 2013,
representing Black Press's results through November 30, 2013. Black Press has a
February fiscal year end and therefore does not have coterminous quarter-ends
with Torstar. Torstar did not record its share of Black Press's results in 2012
as Torstar's carrying value in Black Press was previously reduced to nil.
Torstar's share of Black Press's net income would have been $3.9 million in
2012. Torstar began to report its share of Black Press's results in 2013 when
the unrecognized losses ($0.7 million as of December 31, 2012) had been offset
by net income or OCI.
Torstar's share of Tuango's net income was $0.7 million in 2013 compared to
income of $0.9 million for the period from February 29, 2012 to December 31,
2012.
Torstar's share of the Shop.ca net loss was $3.1 million in 2013 compared to
$0.7 million in 2012. Torstar made its initial investment in Shop.ca on June 15,
2012 and the Shop.ca website was launched late in the second quarter of 2012.
Torstar recorded a loss of $0.4 million in 2013 ($0.8 million in 2012) in
Canadian Press in respect of its additional investment commitment as the
carrying value had previously been reduced to nil. Torstar will begin to report
its share of Canadian Press's results once the unrecognized losses (nil as of
December 31, 2013 and $6.4 million as of December 31, 2012) have been offset by
net income, OCI or as additional investments are made. In 2013, Torstar's share
of Canadian Press's net income would have been $0.5 million ($0.3 million loss
in 2012).
During 2013, Torstar made investments in other associated businesses totaling
$0.5 million for which a loss of $0.2 million was recorded in the year.
Gain on sale of assets
During 2013, the Book Publishing Segment sold its 50% joint venture interest in
its book publishing business in Greece for nominal consideration incurring a
loss of $0.2 million. This was partially offset by a gain of $0.1 million from
the sale of an available-for-sale equity investment for which Torstar received
proceeds of $0.3 million.
During 2012, Torstar recognized a gain on sale of assets of $6.1 million. In the
first quarter of 2012, Torstar sold a portion of its 50% joint venture interest
in Tuango for proceeds of $3.9 million and recorded a gain on sale of assets of
$3.4 million. Torstar retained a 38.2% interest in Tuango. In the fourth quarter
of 2012, Torstar recorded a gain of $2.7 million in connection with the sale of
the assets of Insurance Hotline. Net proceeds were $7.0 million comprised of
$2.0 million in cash and a 12.6% interest in Kanetix Ltd. (an online Canadian
insurance marketplace) valued at $5.0 million.
Investment write-down and loss
Investment write-down and loss was $0.6 million in 2013 and $0.1 million in
2012. During 2013, Torstar management determined that there had been an other
than temporary decline in the value of two portfolio investments. Accordingly a
$0.6 million write-down was recorded during the third quarter reducing the
carrying value to nil.
Income and other taxes
With the exception of impairment charges in respect of certain intangible
assets, impairment charges incurred during 2013 and 2012 were not deductible for
tax purposes. Excluding the impact of the impairment charges in both 2013 and
2012, Torstar's effective tax rate was 27.8% in 2013 compared to 26.0% in 2012.
The effective tax rate was higher in 2013 as compared to 2012 as there were
several items in 2012 income which were capital in nature and taxed at a lower
rate. In addition, Torstar recorded $0.8 million in 2012 as a tax benefit from
the recognition of tax losses that had previously not been recognized.
Torstar's effective tax rate is higher than the Canadian statutory tax rates due
to the large portion of its income that is taxed in foreign jurisdictions with
higher tax rates as well as the impact of expenses that are not deductible for
income tax purposes.
Net income (loss) attributable to equity shareholders
Torstar reported net loss attributable to equity shareholders of $28.0 million
or $0.35 per share in 2013 down $110.3 million or $1.38 per share from net
income attributable to equity shareholders of $82.3 million or $1.03 per share
in 2012 and reflects a $94.9 million increase in impairment of assets and
restructuring and other charges over 2012.
OUTLOOK
In 2013, the Media Segment continued to face challenges as a result of shifts in
spending by advertisers combined with economic uncertainty. The rate of decline
of print advertising revenues slowed in the fourth quarter of 2013, relative to
earlier in the year. While indications are that the revenue trends experienced
in early 2014 are showing an improvement relative to full year 2013, print
advertising revenues are likely to continue to be under pressure. However,
digital revenue and distribution revenue are expected to grow. Across Torstar,
restructuring and operating cost reduction has been and is expected to remain an
important area of focus. The Media Segment is anticipated to realize $21.1
million of savings in 2014 from restructuring initiatives undertaken through the
end of 2013. The Media Segment will also benefit from lower defined benefit
pension expense, which is expected to be approximately $14 million lower in
2014, with $6 million reflected in salaries and benefit expenses and $8 million
in interest and financing costs. In addition, pricing arrangements with the
suppliers of a majority of Torstar's newsprint requirements are expected to
result in lower newsprint costs in 2014. Net investment spending associated with
growth initiatives in 2014 is currently expected to be consistent with 2013
levels.
Harlequin finished 2013 with operating earnings down compared to the prior year
reflecting lower revenues, higher author royalties for digital sales and lower
favourable adjustments to prior year returns provisions. With revenues weaker
than anticipated in 2013 and some Overseas markets continuing to face economic
challenges, Harlequin's 2014 results are expected to be relatively stable
compared to 2013, including the benefit of foreign exchange. However, earnings
are expected to be lower in the first quarter as a result of stronger results
posted in the first quarter of 2013 relative to the balance of the year. If the
Canadian dollar remains at its current levels relative to the U.S. dollar and
overseas currencies, Harlequin anticipates a year over year positive foreign
currency impact of approximately $5.0 million including the impact of U.S.
dollar hedges currently in place.
From a cash flow perspective, in 2014, Torstar anticipates spending
approximately $40.0 million for the funding of registered defined benefit
pension plans based on September 1, 2013 actuarial valuations. Torstar also
anticipates spending approximately $27.0 million for additions to property,
plant, equipment and intangible assets; inclusive of Torstar's proportionate
share of additions to property, plant, equipment and intangible assets of its
joint ventures. The 2014 capital expenditures are anticipated to include
continued investment in technology and software in the Media Segment in addition
to general capital maintenance spending.
DIVIDEND
On March 4, 2014, Torstar declared a quarterly dividend of 13.125 cents per
share on its Class A shares and Class B non-voting shares, payable on March 31,
2014, to shareholders of record at the close of business on March 14, 2014.
Torstar advises that, for the purposes of the Income Tax Act, Canada and for any
relevant provincial tax legislation, this dividend is designated as an eligible
dividend.
ADDITIONAL INFORMATION
For additional information, please refer to Torstar's audited consolidated
financial statements for the year ended December 31, 2013 and the 2013
Management's Discussion and Analysis ("MD&A"). Both documents will be filed
today on SEDAR and are available on Torstar's corporate website www.torstar.com.
CONFERENCE CALL
Torstar has scheduled a conference call for March 5, 2014 at 8:15 a.m. to
discuss its fourth quarter results. The dial-in number is (416) 340-8527 or
1-800-766-6630. A live broadcast of the conference call will be available over
the internet on the Presentations, Events and Conference Calls page (Investor
Relations) on Torstar's website www.torstar.com. A recording of the conference
call will be available for 9 days at (905) 694-9451 or 1-800-408- 3053
reservation number 5628301. An online archive of the broadcast will be available
shortly after the completion of the call and will be accessible by visiting the
Presentations, Events and Conference Calls (Investor Relations) page on
Torstar's website www.torstar.com.
About Torstar Corporation
Torstar Corporation is a broadly based media and book publishing company listed
on the Toronto Stock Exchange (TS.B). Its businesses include the Star Media
Group led by the Toronto Star, Canada's largest daily newspaper, Free Daily News
Group Inc., which publishes the English-language Metro newspapers in several
Canadian cities, Metroland Media Group, publisher of community and daily
newspapers in Ontario; and also include digital properties including
thestar.com, Workopolis, wagjag.com, toronto.com, save.ca, Olive Media, and
eyeReturn Marketing; and Harlequin, a leading global publisher of books for
women.
Non-IFRS measures
In addition to operating profit, an additional IFRS measure, as presented in the
consolidated statement of income, management uses EBITDA (and where applicable
Segmented EBITDA) operating earnings (and where applicable Segmented operating
earnings) and Adjusted earnings per share as measures to assess the consolidated
performance and the performance of the reporting units and business segments.
Torstar also reports net debt, which is also a non-IFRS measure. Please refer to
Section 13 of Torstar's 2013 MD&A for a reconciliation of EBITDA and Operating
earnings (and Segmented EBITDA/Segmented Operating earnings - as applicable)
with Operating profit (Segmented Operating profit - as applicable), Adjusted
earnings per share to earnings per share and Net debt to Long-term debt.
Earnings before Interest, Taxes, Depreciation and Amortization
("EBITDA")/Segmented EBITDA
EBITDA (earnings before interest, taxes, depreciation and amortization) is a
measure that is also used by many of Torstar's shareholders, creditors, other
stakeholders and analysts as a proxy for the amount of cash generated by
Torstar's operations or by a reporting unit or business segment. EBITDA is not
the actual cash provided by operating activities and is not a recognized measure
of financial performance under IFRS. Torstar calculates EBITDA as operating
revenue less salaries and benefits and other operating costs as presented on the
consolidated statement of income. EBITDA excludes restructuring and other
charges and impairment of assets. Torstar's method of calculating EBITDA may
differ from other companies and accordingly may not be comparable to measures
used by other companies. Segmented EBITDA is calculated in the same manner
described above, except that it is calculated using total segment results prior
to the elimination of proportionately consolidated results for joint ventures.
Operating earnings/Segmented operating earnings
Operating earnings is used by management to represent the results of ongoing
operations and is not a recognized measure of financial performance under IFRS.
Torstar calculates operating earnings as operating revenue less salaries and
benefits and other operating costs and amortization and depreciation. Operating
earnings excludes restructuring and other charges and impairment of assets.
Torstar's method of calculating operating earnings may differ from other
companies and accordingly may not be comparable to measures used by other
companies. Segmented operating earnings is calculated in the same manner
described above, except that it is calculated using total segment results prior
to the elimination of proportionately consolidated results for joint ventures.
Adjusted earnings per share
Adjusted earnings per share is used by management to represent the per share
earnings of results of ongoing operations and is not a recognized measure of
financial performance under IFRS. Torstar calculates adjusted earnings per share
as earnings per share less the per share effect of impairment of assets,
restructuring and other charges, non-cash foreign exchange, adjustments to
contingent consideration, gain (loss) on sale of assets and investment
write-down and loss. Torstar's method of calculating adjusted earnings per share
may differ from other companies and accordingly may not be comparable to
measures used by other companies.
Net debt
Net debt is used by management to represent the amount of borrowings outstanding
and is calculated as the sum of Long-term debt, Current portion of long-term
debt and Bank overdraft less Cash and cash equivalents.
Operating profit
Operating profit is an additional IFRS measure used by management to represent
the results of operations inclusive of impairments and restructuring and other
charges and appears in Torstar's consolidated statement of income.
Forward-looking statements
Certain statements in this press release and in the Company's oral and written
public communications may constitute forward-looking statements that reflect
management's expectations regarding the Company's future growth, financial
performance and business prospects and opportunities as of the date of this
press release. Generally, these forward-looking statements can be identified by
the use of forward-looking terminology such as "anticipate", "believe", "plan",
"forecast", "expect", "intend", "would", "could", "if", "may" and similar
expressions.
This press release includes, among others, forward-looking statements regarding
the Company's expected net savings from restructuring initiatives, anticipated
pension funding requirements and the outlook for 2014. All such statements are
made pursuant to the "safe harbour" provisions of applicable Canadian securities
legislation. These statements reflect current expectations of management
regarding future events and operating performance, and speak only as of the date
of this release. In addition, forward-looking statements are provided for the
purpose of providing information about management's current expectations and
plans relating to the future. Readers are cautioned that reliance on such
information may not be appropriate for other purposes.
By their very nature, forward-looking statements require management to make
assumptions and are subject to inherent risks and uncertainties. There is a
significant risk that predictions, forecasts, conclusions or projections will
not prove to be accurate, that management's assumptions may not be accurate and
that actual results, performance or achievements may differ significantly from
such predictions, forecasts, conclusions or projections expressed or implied by
such forward-looking statements. We caution readers not to place undue reliance
on the forward-looking statements in this press release as a number of factors
could cause actual future results, conditions, actions or events to differ
materially from the targets, outlooks, expectations, goals, estimates or
intentions expressed in the forward-looking statements.
These factors include, but are not limited to: the Company's ability to operate
in highly competitive industries; the Company's ability to compete with other
newspapers and other forms of media and media platforms; the Company's ability
to attract and retain advertisers; the Company's ability to maintain adequate
circulation/subscription levels; the Company's ability to attract and retain
readers; the Company's ability to retain and grow its digital audience and
profitably develop its digital businesses; general economic conditions in the
principal markets in which the Company operates; the Company's ability to
compete with book publishers, self-publishing and other providers of
entertainment; the trend towards digital books and the Company's ability to
distribute its books through the changing distribution landscape; the popularity
of its authors and its ability to retain popular authors; the contraction and
concentration of the wholesale and retail print channels; the Company's ability
to accurately estimate the rate of book returns through the wholesale and retail
channels; the decline of the Company's direct-to-consumer book publishing
operations; labour disruptions; the Company's ability to reduce costs; loss of
reputation; newsprint costs; foreign operations and foreign exchange
fluctuations; credit risk; restrictions imposed by existing credit facilities,
debt financing and availability of capital; changes in pension fund obligations;
reliance on its printing operations; reliance on technology and information
systems; interest rates; availability of insurance; litigation; environmental,
privacy, anti-spam, communications and e-commerce laws and regulations
applicable generally to the Company's businesses; dependence on key personnel;
dependence on third party suppliers and service providers; intellectual property
rights; results of impairment tests; risks related to business development and
acquisition integration; product revenue and product liability; control of
Torstar by the Voting Trust; and uncertainties associated with critical
accounting estimates.
We caution that the foregoing list is not exhaustive of all possible factors, as
other factors could adversely affect our results.
In addition, a number of assumptions, including those assumptions specifically
identified throughout this press release, were applied in making the
forward-looking statements set forth in this press release. Some of the key
assumptions include, without limitation, assumptions regarding the performance
of the North American and global economies; tax laws in the countries in which
we operate; continued availability of printing operations; continued
availability of financing on appropriate terms; exchange rates; market
competition; rates of return and discount rates relating to pension expense and
pension plan obligations; royalty rates, expected future revenues, expected
future cash flows and discount rates relating to valuation of goodwill and
intangible assets; and successful development of new products. There is a risk
that some or all of these assumptions may prove to be incorrect.
When relying on our forward-looking statements to make decisions with respect to
the Company and its securities, investors and others should carefully consider
the foregoing factors and other uncertainties and potential events. The Company
does not intend, and disclaims any obligation to, update any forward-looking
statements, whether written or oral, or whether as a result of new information
or otherwise, except as may be required by law.
For more information, please see the discussion of risks affecting Torstar and
its businesses in Torstar's 2013 Management's Discussion & Analysis which has
been filed on www.sedar.com and is available on Torstar's corporate website
www.torstar.com.
Torstar's news releases are available on the Internet at www.torstar.com.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Torstar Corporation
Consolidated Statement of Financial Position
(Thousands of Canadian Dollars)
As at As at
As at December 31 January 1
December 31 2012 2012
2013 Restated(i) Restated(i)
----------------------------------------------------------------------------
Assets
Current:
Cash and cash equivalents $19,151 $24,827 $36,450
Receivables 261,485 263,606 265,655
Inventories 29,368 31,637 34,600
Derivative financial
instruments 1,272 367
Prepaid expenses and other
current assets 47,872 43,254 46,269
Prepaid and recoverable
income taxes 3,765 10,775 1,929
----------------------------------------------------------------------------
Total current assets 361,641 375,371 385,270
----------------------------------------------------------------------------
Investments in joint
ventures 80,901 91,258 107,512
----------------------------------------------------------------------------
Investments in associated
businesses 40,215 32,921 16,935
----------------------------------------------------------------------------
Property, plant and
equipment 150,665 161,872 170,454
----------------------------------------------------------------------------
Intangible assets 73,942 87,475 85,865
----------------------------------------------------------------------------
Goodwill 533,982 596,703 598,603
----------------------------------------------------------------------------
Other assets 11,465 8,323 1,798
----------------------------------------------------------------------------
Employee benefits assets 44,532
----------------------------------------------------------------------------
Deferred income tax assets 51,369 89,965 100,246
----------------------------------------------------------------------------
Total assets $1,348,712 $1,443,888 $1,466,683
----------------------------------------------------------------------------
Liabilities and Equity
Current:
Bank overdraft $1,741 $9,767 $7,413
Current portion of long-
term debt 196,191
Accounts payable and
accrued liabilities 202,888 195,822 194,237
Derivative financial
instruments 911
Provisions 20,807 15,649 22,057
Income taxes payable 9,810 11,016 17,118
----------------------------------------------------------------------------
Total current liabilities 236,157 232,254 437,016
----------------------------------------------------------------------------
Long-term debt 175,898 178,027
----------------------------------------------------------------------------
Derivative financial
instruments 4,125 7,018 8,761
----------------------------------------------------------------------------
Provisions 16,251 14,520 16,906
----------------------------------------------------------------------------
Other liabilities 12,425 25,362 26,290
----------------------------------------------------------------------------
Employee benefits 82,641 255,434 264,027
----------------------------------------------------------------------------
Deferred income tax
liabilities 24,431 7,593 7,419
----------------------------------------------------------------------------
Equity:
Share capital 398,605 397,425 395,334
Contributed surplus 17,383 16,057 14,828
Retained earnings 385,589 317,033 301,863
Accumulated other
comprehensive loss (7,603) (9,699) (8,286)
----------------------------------------------------------------------------
Total equity attributable
to equity shareholders 793,974 720,816 703,739
Minority interests 2,810 2,864 2,525
----------------------------------------------------------------------------
Total equity 796,784 723,680 706,264
----------------------------------------------------------------------------
Total liabilities and equity $1,348,712 $1,443,888 $1,466,683
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(i) Certain amounts shown here do not correspond to the annual consolidated
financial statements as at December 31, 2012 and reflect adjustments made.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Torstar Corporation
Consolidated Statement of Income
(Thousands of Canadian Dollars except per share amounts)
Three months ended Year ended
December 31 December 31
2012 2012
2013 Restated(i) 2013 Restated(i)
----------------------------------------------------------------------------
Operating revenue $348,375 $377,892 $1,308,791 $1,406,768
Salaries and benefits (118,478) (127,519) (480,297) (499,485)
Other operating costs (170,029) (189,813) (666,594) (721,541)
Amortization and
depreciation (9,316) (9,289) (36,266) (35,273)
Restructuring and other
charges (16,186) (6,261) (37,219) (17,389)
Impairment of assets (266) (734) (77,094) (2,003)
----------------------------------------------------------------------------
Operating profit (loss) 34,100 44,276 11,321 131,077
Interest and financing
costs (4,306) (4,782) (17,460) (19,906)
Foreign exchange (955) (103) (1,506) (248)
Adjustment to contingent
consideration 71 (19) 979 (258)
Income from joint ventures 1,785 (9,833) (2,578) 2,183
Income (loss) of
associated businesses (569) 222 2,345 (2,802)
Gain (loss) on sale of
assets 2,663 (152) 6,080
Investment write-down and
loss (562) (93)
----------------------------------------------------------------------------
30,126 32,424 (7,613) 116,033
Income and other taxes (9,000) (11,100) (19,800) (33,100)
----------------------------------------------------------------------------
Net income (loss) $21,126 $21,324 ($27,413) $82,933
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Attributable to:
Equity shareholders $20,637 $21,079 ($27,984) $82,344
Minority interests $489 $245 $571 $589
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income (loss)
attributable to equity
shareholders per Class A
(voting) and Class
B (non-voting) share:
Basic and Diluted $0.26 $0.26 ($0.35) $1.03
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(i) Certain amounts shown here do not correspond to the annual consolidated
financial statements as at December 31, 2012 and reflect adjustments made.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Torstar Corporation
Consolidated Statement of Cash Flows
(Thousands of Canadian Dollars)
Three months ended Year ended
December 31 December 31
2012 2012
2013 Restated(i) 2013 Restated(i)
----------------------------------------------------------------------------
Cash was provided by (used
in)
Operating activities $35,958 $28,998 $80,732 $89,835
Investing activities (6,646) (7,075) (28,720) (47,140)
Financing activities (32,517) (32,407) (50,230) (56,112)
----------------------------------------------------------------------------
Increase (decrease) in
cash (3,205) (10,484) 1,782 (13,417)
Effect of exchange rate
changes 400 98 568 (560)
Cash, beginning of period 20,215 25,446 15,060 29,037
----------------------------------------------------------------------------
Cash, end of period $17,410 $15,060 $17,410 $15,060
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Operating activities:
Net income (loss) $21,126 $21,324 ($27,413) $82,933
Amortization and
depreciation 9,316 9,288 36,266 35,273
Deferred income taxes 5,100 6,400 9,400 17,700
Loss (income) from joint
ventures 7,215 9,833 2,578 (2,183)
Distributions from joint
ventures 1,000 3,360 7,934 14,408
Loss (income) of
associated businesses 569 (222) (2,345) 2,802
Dividend from associated
businesses 572 954
Impairment of assets (8,734) 734 77,094 2,003
Non-cash employee
benefit expense 8,461 8,729 33,379 33,173
Employee benefits
funding (18,142) (20,825) (67,232) (76,540)
Other 4,198 (2,667) (617) (10,747)
----------------------------------------------------------------------------
30,681 35,954 69,998 98,822
Decrease (increase) in
non-cash working
capital 5,277 (6,956) 10,734 (8,987)
----------------------------------------------------------------------------
Cash provided by operating
activities $35,958 $28,998 $80,732 $89,835
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Investing activities:
Additions to property,
plant and equipment and
intangible assets ($6,142) ($7,623) ($23,128) ($30,174)
Investment in joint
ventures (30)
Investment in associated
businesses (485) (3,485) (11,265)
Acquisitions and
investments (26) (1,410) (2,485) (11,883)
Proceeds from sale of
assets 1,957 253 6,207
Other 7 1 125 5
----------------------------------------------------------------------------
Cash used in investing
activities ($6,646) ($7,075) ($28,720) ($47,140)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Financing activities:
Issuance of bankers'
acceptances $13,428 $5,991
Repayment of bankers'
acceptances ($22,416) ($22,100) (22,416) (22,211)
Dividends paid (10,338) (10,386) (41,461) (41,054)
Exercise of share
options 413
Other 237 79 219 749
----------------------------------------------------------------------------
Cash used in financing
activities ($32,517) ($32,407) ($50,230) ($56,112)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash represented by:
Cash $16,211 $20,253 $16,211 $20,253
Cash equivalents -
short-term deposits 2,940 4,574 2,940 4,574
----------------------------------------------------------------------------
Cash and cash
equivalents 19,151 24,827 19,151 24,827
Bank overdraft (1,741) (9,767) (1,741) (9,767)
----------------------------------------------------------------------------
$17,410 $15,060 $17,410 $15,060
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(i) Certain amounts shown here do not correspond to the annual consolidated
financial statements as at December 31, 2012 and reflect adjustments made.
FOR FURTHER INFORMATION PLEASE CONTACT:
L. DeMarchi
Executive Vice-President and Chief Financial Officer
Torstar Corporation
(416) 869-4776
www.torstar.com
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