Highlights:
*Continued improvement in profitability in the Packaging Sector and maintained rigorous cost control in the Printing Sector.
*Revenues of $655.7 million for the quarter ended October 25, 2020; operating earnings of $81.2 million; and net earnings attributable to shareholders of the Corporation of $51.3 million ($0.59 per share).
*Adjusted operating earnings before depreciation and amortization(1) of $146.8 million for the quarter ended October 25, 2020; adjusted operating earnings(1) of $110.1 million; and adjusted net earnings attributable to shareholders of the Corporation(1) of $72.4 million ($0.83 per share).
*Solid financial position with liquidities of $241.0 million and access to unused lines of credit of $432.8 million, for total available liquidities of $673.8 million.
*Improved net indebtedness ratio(1) to 1.9x as a result of the decrease in long-term debt of $363.0 million and the increase in adjusted operating earnings before depreciation and amortization(1) during the fiscal year.
*Launched new packaging made of 30% post-consumer recycled plastic for the case wrap of AHA® Sparkling Water, a brand of The Coca-Cola Company.
*Appointed Eric Morisset as Chief Development Officer to lead the Corporation’s growth by acquisitions strategy.
Transcontinental Inc. (TSX: TCL.A TCL.B) announces its results for the fourth quarter and fiscal 2020, which ended October 25, 2020.
“We had another excellent quarter to end fiscal 2020 on a strong note, said François Olivier, President and Chief Executive Officer of TC Transcontinental. These results, an indication of our growth potential, reflect the resilience of our business model as well as the responsible management of our operations as a whole. Faced with the challenges of a year marked by COVID-19, we were able to provide our employees with a safe work environment and focus on our objectives to deliver a solid performance. I thank our employees for their dedication and exceptional work in these circumstances.
“Our Packaging Sector, our main engine of growth, posted a significant improvement in profitability compared to last year thanks to operational efficiency gains and better than expected synergies. In addition, the sustained demand from our customers for food and consumer product packaging helped to offset the impact of the pandemic in certain markets. We continued to invest significantly in research and development and are well positioned to take advantage of future opportunities, as our customers are increasingly turning to packaging that is aligned with our vision for the circular economy for plastic.
“In our Printing Sector, a resilient sector that had a good year despite the pandemic, business recovery continues and we were able to further optimize our platform by implementing cost reduction measures. Demonstrating our ability to adjust to a decrease in volume, we once again recorded an excellent operating earnings margin before depreciation and amortization in the fourth quarter, as well as strong cash flows.
“Our Media Sector also had an excellent quarter, well above our expectations, adapting its offering with innovation in the context of the pandemic. Its profitability increased considerably compared to last year, despite the sale of the specialty media assets and event planning activities towards the end of fiscal 2019, which represented a significant portion of its portfolio.
“To conclude, our solid financial position gives us the confidence needed to navigate with stability through this period and well beyond it. We continued to generate significant cash flows, which enabled us to significantly reduce the indebtedness level as per our plan. With the success of our recent quarters, we begin the new year with optimism by pursuing our strategy focused on organic growth and acquisitions.”
Revenues decreased by $135.2 million, or 17.1%, from $790.9 million in the fourth quarter of 2019 to $655.7 million in the corresponding period of 2020. This decrease is largely attributable to lower volume in the Printing Sector, mostly due to the impact of the COVID-19 pandemic, and to the disposal of the paper packaging operations, which occurred at the end of the first quarter of 2020. These items were partially offset by acquisitions in the Printing Sector and organic growth in the Media Sector.
Operating earnings decreased by $75.0 million, or 48.0%, from $156.2 million in the fourth quarter of 2019 to $81.2 million in the fourth quarter of 2020. The decrease in operating earnings is mostly explained by the gain on the disposal of assets resulting from the sale to Hearst of the Fremont, California building in the fourth quarter of 2019.
Net earnings attributable to shareholders of the Corporation decreased by $61.0 million, from $112.3 million in the fourth quarter of 2019 to $51.3 million in the fourth quarter of 2020. This change is due to lower operating earnings, mainly as a result of the gain on the disposal of assets resulting from the sale to Hearst of the Fremont, California building in the fourth quarter of 2019, mitigated by a decrease in financial expenses and income taxes. On a per share basis, net earnings attributable to shareholders of the Corporation went from $1.28 to $0.59.
more detail at: https://tctranscontinental.com/en-ca/company-overview/news-room/press-releases/transcontinental-inc-announces-its-results-fourth-quarter