Highlights for the Nine-month Period
In the first nine months of fiscal 2011, Transcontinental's revenues increased 2%, from $1,471.9 million to $1,506.1 million. Excluding acquisitions, divestitures and closures, the impact of the exchange rates and the paper component variance, organic revenue growth was 2%, with all three sectors contributing. Similarly, adjusted operating income increased 3%, from $161.0 million to $166.4 million, while the adjusted operating income margin increased slightly from 10.9% to 11.0%. Net income applicable to participating shares went from $122.1 million, or $1.51 per share, to $69.8 million, or $0.86 per share. Excluding unusual items and discontinued operations, adjusted net income applicable to participating shares increased 9%, from $93.2 million to $101.5 million. On a per share basis it increased 9%, from $1.15 to $1.25.
Reconciliation of Non-GAAP Financial Measures
Financial data have been prepared in conformity with Canadian Generally Accepted Accounting Principles (GAAP). However, certain measures used in this press release do not have any standardized meaning under GAAP and could be calculated differently by other companies. The Corporation believes that certain non-GAAP financial measures, when presented in conjunction with comparable GAAP financial measures, are useful to investors and other readers because that information is an appropriate measure for evaluating the Corporation's operating performance. Internally, the Corporation uses this non-GAAP financial information as an indicator of business performance, and evaluates management's effectiveness with specific reference to these indicators. These measures should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP.
The following table reconciles GAAP financial measures to non-GAAP financial measures.
Reconciliation of Non-GAAP financial measures
At its September 7, 2011 meeting, the Corporation's Board of Directors declared a quarterly dividend of $0.135 per Class A Subordinate Voting Shares and Class B shares. This dividend is payable on October 21, 2011 to participating shareholders of record at the close of business on October 3, 2011. On an annual basis, this represents a dividend of $0.54 per share. Furthermore, at the same meeting, the Board also declared a quarterly dividend of $0.4253 per share on cumulative 5-year rate reset first preferred shares, series D. This dividend is payable on October 15, 2011. On an annual basis, this represents a dividend of $1.6875 per preferred share.
Upon releasing its quarterly results, Transcontinental will hold a conference call for the financial community today at 4:15 p.m. Media may hear the call in listen-only mode or tune in to the simultaneous audio broadcast on the Corporation's Web site, which will then be archived for 30 days. For media requests for information or interviews, please contact Nancy Bouffard, Director, Internal and External Communications of Transcontinental, at 514 954-2809.
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 Mexico, and fourth-largest in North America. It is also one of Canada's top media groups as the leading publisher of consumer magazines and French-language educational resources, and of community newspapers in Quebec and the Atlantic provinces. Transcontinental is also the leading door-to-door distributor of advertising material in Canada through its celebrated Publisac network in Quebec and Targeo in the rest of Canada. Thanks to a wide digital network of more than 1000 websites, the company reaches over 11.3 million unique visitors per month in Canada. Transcontinental also offers interactive marketing products and services that use new communication platforms supported by marketing strategy and planning services, database analytics, premedia, e-flyers, email marketing, custom communications and mobile solutions.