Employee Presentation Results for the Third Quarter of 2013 September 13 th, 2013.
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Transcript of Employee Presentation Results for the Third Quarter of 2013 September 13 th, 2013.
Employee Presentation
Results for the Third Quarter of 2013
September 13th, 2013
Table of Contents
• Q3 2013 Financial Results
– TC Transcontinental Financial Results
– TC Transcontinental Printing Financial Results
– TC Media Financial Results
• Stock Price and Indebtedness
• Outlook
2
FINANCIAL RESULTS
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4
Q3-2012 Q3-2013
49.955.1
Profit (in millions of dollars)
Q3-2012 Q3-2013
517 493.8
Revenues (in millions of dollars)
• Significant increase of the adjusted net income applicable to shares from $24.9 M to $35.7 M, and per share from $0.31 to $0.46.
• Achieved more than $35 million, to date, in synergies from the acquisition of Quad/Graphics Canada, Inc.
• The net indebtedness ratio decreased from 1.05x on April 30 th, 2013 to 1.02x on July 31st, 2013 (1.32x on October 31st, 2012)
• According to Corporate Knights, TC ranked within in the 50 Best Corporate Citizens in Canada.
Financial Results
Revenues decreased by $23.2 M or by 4.5%.Increase in Profit of $5.2 M or 10.4%.
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Q3-2012 Q3-2013
363.5337.6
Revenues (in millions of dollars)
Financial Results
Q3-2012 Q3-2013
42.449.2
Profit (in millions of dollars)
Revenues decreased by $25.9 M, or by 7.1%.
- Loss in volume attributable to the closure of Zellers.- Change in paper type used by some of our most important
customers.- Decrease in our magazine, book, catalogue and newspaper
printing activities.
+ New contracts signed since the beginning of the current year (in particular POP and Safeway).
Profit increased by $6.8 M or by 16.0%.
+ Synergies were generated due to the integration of Quad/Graphics Canada, Inc. by optimizing the investments made during the previous years (more than $700 M).
• Continued integration of Quad/Graphics Canada, Inc., which was acquired on March 1st, 2012.
• Ongoing set up of a new Ink-Jet Press at PLM, which would be more versatile and efficient than the “sheetfed” and digital operations currently in place. This press is intented to support the direct marketing and POP activities.
• Signature of a five-year agreement with Postmedia Network Inc. to print the Calgary Herald. The contract takes effect in November 2013.
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Benchmarking – Print SectorEBITDA margin – last 12 months
11,5%11,0%
12,2%
13,8%
19,9%
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Q3-2012 Q3-2013
173.6 173.8
Revenues (in millions of dollars)
Financial Results
Q3-2012 Q3-2013
10.2 8.6
Profit (in millions of dollars)
Increase in revenues of $0.2 M or by 0.1%.
+ Acquisitions of Redux Media and Groupe Modulo. (+ $3,7 M) + Educational book activities generated additional sales. (+ $4,0 M)
- Decrease in distribution, magazine and newspaper publishing revenues due to the decline in the national and local advertising market.
Decrease in Profit by $1.46M, or by 15.7%.
- The decline in the national and local advertising market affected the Profit and margins, principally in the above-mentioned divisions.
+ Increase of our educational book activities and contribution of our acquisitions as mentioned above.
• Important changes in the management of this sector.
• Creation of a digital product development lab.
• The new website AutoGo.ca is live since June 25 th, 2013
• Les Affaires Group earned four Exellence Awards and eight Honourable mentions at the 59 th Annual Kenneth R. Wilson Awards.
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Benchmarking – Medias sectorEBITDA % – last quarter
Torstar CorporationGlacier MediaRogers Communica-tions
TC MediaMeredith Corp. (US)
-22.7%-22.0%
-19.0%
-8.3%
3.6%
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Stock Price and Indebtedness
Appreciation in Stock
Price
Net Debt Level on the
Decline
• Increase of 35.3% since October 2012.
• Level of debt has remained stable during Q3-2013.
• The Corporation maintained a solid financial position with a net indebtedness ratio that went from 1.05x at April 30th, 2013 to 1.02x at July 31st, 2013.
0
200
400
600
800
1000
1200 Print Investments of $700 M
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Outlook
Continuation of the integration of the activities of Quad/Graphics Canada, Inc. will generate synergies.
The effect of new contracts to print flyers and marketing products will have a beneficial impact on the print sector.
• Annualized value of $30.0 M. (Flyers, POP).
The media sector will continue to be affected by difficult market conditions.
• Focus on developing new products.• Continued efforts to improve profitability.
We will continue to generate excess cash flows.
• Our level of indebtedness will continue to decrease• Investments in internal projects and/or execution of strategic acquisitions should the situation
present itself.