Excellent first quarter for Transcontinental, in spite of a tough economic environment.MONTREAL--(BUSINESS WIRE)--MARCH 5, 1996--G.T.C. Trans. Group (ME, TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : GRT GRT Great GRT Glimcher Realty Trust GRT Grand River Transit (Waterloo, Canada) GRT General Relativity Theory GRT Group Rapid Transit GRT Gruppo per le Relazioni Transculturali .A GRT.B GRT.PR.C GRT.WT) - increase in consolidated revenues - 21 percent increase in cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses - 15 percent increase in net income applicable to common shares - net income per common share goes from $0.07 to $0.08. For the quarter that ended on January 31, 1996, G.T.C. Transcontinental Group Ltd. posted consolidated revenues of $261.3 million, compared with $196.8 million for the same period last year, a 33 percent increase. The consolidated revenues of the last 12 months have thus crossed the billion dollar mark. Net income applicable to common shares reached $2.9 million, compared with $2.5 million in 1995, a 15 percent increase. Net income per common share was $0.08, compared with $0.07 in 1995. Cash flow from operations increased by 21 percent, going from $16.2 million ($0.44 per share) in 1995 to $19.5 million ($0.54 per share) in 1996. "In spite of a tough economic environment, namely in retail sales, Transcontinental had an excellent first quarter, which is usually the weakest of the fiscal year", said Mr. Luc Sicotte, Vice President, Finance and Treasurer of Transcontinental Group. "Transcontinental's strength is to be able to rely on four sectors that, although complementary, evolve in different markets, thus minimising the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. fluctuations in the Corporation's results. Even if Transcontinental customers will continue to face a difficult situation in retail sales during the next months, management remains confident that profitability goals set at the beginning of the fiscal year will be met." General comment on operations For the fifth consecutive quarter, the printing sector contributed to the improved results, with an increase in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of 70 percent, going from $5 million to $8.6 million; this sector continues to reap the benefits of the efforts made in plant specialization and the integration of newly acquired businesses. The distribution sector maintained its operating income while the publishing sector's decreased by $1 million compared to the first quarter of 1995, due to the investments made in increasing the circulation of its publications and the increase in the price of paper. Finally, in spite of a spectacular increase in CD-ROM CD-ROM: see compact disc. CD-ROM in full compact disc read-only memory Type of computer storage medium that is read optically (e.g., by a laser). sales, a rapidly growing market, the weakness of retail sales of audio CD during the quarter caused a decrease in the profitability of the technology sector, compared to the first quarter of 1995. The first quarter increase in revenues of $64.5 million in 1996, compared with the first quarter results of the previous fiscal year, was generated from three sources: the internal growth in the Corporation's activities ($12.6 million), the impact of the acquisitions ($30.9 million), and the increase in the price of paper ($21 million). Among the highlights of the quarter were the signing of a promising collective contract at the Drummondville printing plant and the awarding of ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9002 registration to Interglobe Printing, in Beauceville, the third Transcontinental printing plant, after Transmedia and Ross-Ellis Printing, to receive this registration. Finally, the Corporation's financial position has continued to improve during the first quarter. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. at January 31, 1996, was $330 million, compared with $309.6 million in 1995. Business acquisition On November 7, 1995, Transcontinental announced the acquisition, through its Americ Disc subsidiary, of all outstanding shares in Triptych CD Corp. of California. Specializing in CD-ROM manufacturing, Triptych employs one hundred people and revenues for the current fiscal year are expected to reach U.S. $20 million. This young business covers all of California, particularly Silicon Valley, and has a varied and impressive clientele. Currently located in leased premises in Stockton, near Modesto, Triptych will be integrated to the new Modesto plant during the year. With respect to AmerSig Graphics, Inc., we have initiated the option process within the terms of the Option Agreement and we are commencing discussions with the controlling shareholder regarding the transition. Declaration of dividend At its March 5, 1996 meeting, the Board of Directors declared a quarterly dividend of $0.03 per share payable to all holders of Class A Subordinate Voting Shares Voting Shares Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors. Notes: Different classes of shares, such as preferred stock, sometimes don't allow for voting rights. and Class B shares, as well as a $0.46875 dividend per share payable to all holders of Class C First Preferred Shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. . The dividends will be paid on April 16, 1996, to all shareholders on record on April 5, 1996. Profile A leader in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. communications industry communications industry, broadly defined, the business of conveying information. Although communication by means of symbols and gestures dates to the beginning of human history, the term generally refers to mass communications. , G.T.C. Transcontinental Group Ltd. is involved in the printing, distribution and publishing sectors as well as in the production of compact discs. The company also offers telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. , data base, micromarketing, electronic information and electronic publishing An umbrella term for non-paper publishing, which includes publishing online or on media such as CDs and DVDs. services. This fully integrated network A network that supports both data and voice and/or different networking protocols. See converged network and new public network. provides Transcontinental's customers with a total service. G.T.C. Transcontinental's Class A Subordinated Voting Shares, Class B Shares, and Cumulative Redeemable First Preferred Shares, Series C, as well as the Warrants for the right to purchase Class A shares, are listed on the Montr al and Toronto stock exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under their respective symbols GRT.A, GRT.B, GRT.PR.C, and GRT.WT. /T/ -0-
Highlights
unaudited
(in thousands of dollars, except per share data)
Three months ended Jan. 31 Change
1996 1995 percent
Revenues $261,283 $196,756 33
Income before depreciation,
financial expense and
income taxes
29,173 24,291 20
Operating income 14,689 13,628 8
Net earnings 3,671 3,292 12
Common shareholders' equity 289,980 269,629 8
Per common share data
Earnings before depreciation,
financial expense and income
taxes
$0.84 $0.70
Net earnings 0.08 0.07
Cash flow from operations 0.54 0.44
Dividends on common shares 0.03 0.03
Common shareholders' equity 8.31 7.71
Average number of common shares
outstanding ('000)
34,885 34,775
Common shares outstanding at
end of period ('000)
34,885 34,992
CONTACT: G.T.C. Transcontinental Group Ltd. Luc Sicotte Vice President, Finance and Treasurer (514) 954-4000 |
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