Transcontinental Sees Strong Improvement in Profitability

Net income applicable to participating shares was up $211.3 million, from a loss of $144.3 million in second quarter 2009 to a gain of $67.0 million in 2010. This increase is primarily due to impairment of goodwill and intangible assets and impairment of assets and restructuring costs in second quarter 2009, combined with a gain on the sale of almost all the assets of the Direct Mail Group in the United States on April 1, 2010 and the increase in adjusted operating income in 2010. On a per-participating share basis, net income applicable to participating shares went from a loss of $1.79 to a gain of $0.83.