Transcontinental Reports Gains for Fiscal Year Despite Q4 Loss

Net income declined from $120.6 million in 2007 to $7.9 million in 2008. This is mainly due to the restructuring charge related to the consolidation of direct mail activities in the United States, close to two thirds of which had no impact on cash, and to the write-off of goodwill related to these activities, which represents a non-cash charge that has no effect on liquidity or cash flow from the Corporation’s operating activities. Net of applicable income taxes, these unusual items totalled $141.8 million in the fourth quarter of 2008, or $1.74 per share. On a per-share basis, net earnings decreased from $1.42 to $0.10.