Transcontinental Reports Improved Profitability in Fourth Quarter

For the 12-month period ended October 31, 2009, this strong fourth quarter largely offset the decline in the first two quarters during the middle of the recession. Consolidated revenues were down 6%, from $2.43 billion to $2.29 billion, while adjusted operating income before amortization decreased 3%, from $361.5 million to $349.3 million. The positive impact of the exchange rate between the Canadian dollar and its U.S. and Mexican counterparts added $63.2 million to revenues and $16.6 million to adjusted operating income before amortization. The decline in direct mail activities in the United States accounts for 43% of the decrease in the Corporation’s consolidated revenues compared to fiscal 2008, the remainder mainly stems from the disposal of printing and publishing assets, and lower advertising and marketing spending.