Transcontinental Posts Income Declines on Revenues Increase

• For the first six-month period of fiscal 2012, Transcontinental’s revenues increased 1 percent, from $1,013.5 million to $1,025.3 million.
• Adjusted operating income decreased 9 percent, from $108.9 million to $98.8 million. This decrease was primarily due to the non-recurrence of the Canadian Census contract, margin erosion from competitive pressures in the local solutions marketplace and new provincial legislation in Quebec under Bill 88 that imposes greater recycling fees on publishers.
• Net income applicable to participating shares decreased from $58.4 million to a loss of $139.5 million. This decrease is mainly due to an impairment of assets of $180.8 million, which is non-cash and non-operational and to notices of re-assessment received from the federal and provincial tax authorities last February, totaling $58 million, for which the Corporation is currently contesting. Excluding unusual items and discontinued operations, adjusted net income applicable to participating shares decreased 8 percent, from $67.9 million.

About TC
TC Transcontinental creates marketing products and services that allow businesses to attract, reach and retain their target customers. The corporation is the largest printer in Canada and the fourth-largest in North America.