Transcontinental Ends Fiscal 2013 with a Steady Performance

In the fourth quarter, adjusted operating income decreased by 10.7 percent, 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 favorable 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 percent, 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 percent, or $9 million, during the fourth quarter mostly due to the soft local advertising market.