Torstar Corporation (TSX:TS.B) today reported financial results for the third
quarter and nine months ended September 30, 2009.
Highlights for the quarter:
- Revenue of $343.7 million was down $27.6 million or 7.4% from $371.3
million including a positive $3.9 million from the year over year impact
of foreign exchange.
- EBITDA (operating profit before charges for interest, taxes,
depreciation and amortization of intangible assets, and restructuring
and other charges - see "non-GAAP measures") was down $6.5 million in
the quarter from $49.3 million to $42.8 million.
- Net income was $4.0 million or $0.05 per share compared with a loss of
$0.7 million or $0.01 per share in the same period last year.
- Net income from continuing operations was $4.0 million or $0.05 per
share, down $12.6 million or $0.16 per share from $16.6 million or $0.21
per share in the same period last year.
- Net debt was $553.3 million at September 30, 2009 down $74.0 million
from $627.3 million at December 31, 2008.
"Results, again this quarter, are mixed as the decline in Newspapers and Digital
more than offset continued growth at Harlequin and lower corporate costs," said
David Holland, Interim President and Chief Executive Officer of Torstar
Corporation. "The challenging economic environment continues to have a negative
impact on revenue in the Newspapers and Digital Division, particularly in those
categories most vulnerable to the cycle including employment and real estate.
Efforts on the cost side are ongoing; the restructuring efforts to date are
mitigating in part, the impact of the revenue decline. Harlequin had another
good quarter despite the challenging economic environment. We are also pleased
with our progress in reducing net borrowings by $74 million so far this year."
"Looking forward, we continue to anticipate Newspapers and Digital revenue to be
soft for the balance of 2009. The restructuring activities and a favourable
newsprint pricing environment will help to offset in part the anticipated
revenue challenges. At Harlequin, we anticipate stable results in the fourth
quarter including the benefits of foreign exchange."
The following chart provides a continuity of earnings per share from 2008 to
2009:
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Third Quarter Year to Date
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Net income (loss) per share 2008 ($0.01) $0.41
Changes
- Operations (0.06) (0.21)
- Restructuring and other charges 0.02 (0.02)
- Loss from associated businesses (0.14) (0.62)
- Non-cash foreign exchange 0.02 (0.01)
- Gain on sale of land (2008) (0.09)
- Investment write-down (2008) 0.03
- One-time tax expense adjustment (2008) (0.02)
- Discontinued operations (2008) 0.22 0.26
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Net income (loss) per share 2009 $0.05 ($0.27)
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OPERATING RESULTS - Third quarter and year to date 2009
Overall Performance
Total revenue was $343.7 million in the third quarter of 2009, down $27.6
million or 7.4% from $371.3 million in the third quarter of 2008. Newspapers and
Digital revenue was $221.2 million in the quarter, down $32.0 million or 12.6%
from $253.2 million in 2008 with lower advertising revenue in most categories
particularly those that are more subject to the impact of the economy such as
employment and real estate. Book Publishing revenue was $122.5 million in the
third quarter of 2009, up $4.4 million or 3.7% from $118.1 million in the third
quarter of 2008 including a $3.9 million increase from the weaker Canadian
dollar relative to a year ago. Underlying revenues grew $0.5 million as growth
in North America Direct-To-Consumer and Overseas revenues more than offset
declines in North America Retail.
Year to date total revenue was $1,056.5 million, down $64.9 million or 5.8% from
$1,121.4 million in the first nine months of 2008. Newspapers and Digital
revenue was $685.4 million year to date, down $89.3 million or 11.5% from $774.7
million in the same period last year. Book Publishing revenue was $371.1 million
year to date, up $24.4 million or 7.0% from $346.7 million in the same period
last year including a $23.1 million increase from the weaker Canadian dollar.
Operating profit before restructuring and other charges was $30.1 million in the
third quarter of 2009, down $6.0 million from $36.1 million in the third quarter
of 2008. Including the $1.1 million of restructuring and other charges, an
operating profit of $29.0 million was reported in the third quarter of 2009,
down $3.7 million from an operating profit of $32.7 million in 2008 (which
included $3.4 million of restructuring and other charges). Year to date,
operating profit before restructuring and other charges was $83.2 million, down
$28.6 million from $111.8 million in the first nine months of 2008. Including
the $30.8 million of restructuring and other charges, an operating profit of
$52.5 million was reported year to date, down $30.7 million from an operating
profit of $83.2 million in the same period last year (which included $28.6
million of restructuring and other charges).
Newspapers and Digital Segment operating profit was $10.6 million in the third
quarter of 2009, down $11.3 million from $21.9 million in the third quarter last
year. Year to date, Newspapers and Digital Segment operating profit was $31.0
million, down $40.7 million from $71.7 million in the same period last year.
Labour cost savings from restructuring initiatives, reduced newsprint
consumption and general cost containment efforts helped to offset the lower
revenue and higher pension costs in the third quarter and year to date. Pension
costs were up $5.4 million in the quarter and $16.3 million year to date.
Newsprint pricing was lower in the third quarter year over year but still
slightly higher year to date.
Book Publishing operating profit was $22.9 million in the third quarter of 2009,
up $4.2 million from $18.7 million in the third quarter of 2008, including $2.0
million from the impact of foreign exchange. Year to date, Book Publishing
operating profit was $63.1 million, up $9.9 million from $53.2 million in the
first nine months of 2008, including $5.1 million from the favourable impact of
foreign exchange. Underlying results were up in North America Direct-To-Consumer
and down in North America Retail for both the third quarter and year to date.
Overseas was down in the quarter but up year to date.
Corporate costs were $3.4 million in the third quarter, down $1.0 million from
$4.4 million in the third quarter last year. Year to date, corporate costs were
$10.9 million, down $2.2 million from $13.1 million in the first nine months of
2008. The lower corporate costs primarily reflected lower compensation expense.
EBITDA(1), excluding restructuring and other charges, was $42.8 million in the
third quarter of 2009, down $6.5 million from $49.3 million in 2008. Year to
date, EBITDA was $122.2 million, down $29.6 million from $151.8 million in 2008.
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Third Quarter Year to Date
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(in $000's) 2009 2008(2) 2009 2008(2)
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Newspapers and Digital $22,302 $33,818 $66,542 $108,040
Book Publishing 23,924 19,891 66,486 56,891
Corporate (3,403) (4,389) (10,832) (13,086)
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EBITDA, excluding restructuring and
other charges $42,823 $49,320 $122,196 $151,845
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Restructuring and other charges
Restructuring and other charges of $1.1 million were recorded in the third
quarter of 2009 compared with $3.4 million in the third quarter of 2008. In both
years, the amount related to restructuring provisions in the Newspapers and
Digital Segment. Year to date, restructuring and other charges were $30.8
million in 2009 and $28.6 million in 2008. The 2009 year to date amount included
$12.8 million related to the transition in leadership at Torstar Corporate,
$16.6 million for restructuring provisions in the Newspapers and Digital Segment
and $1.4 million related to the closure of a distribution centre in Harlequin's
U.K. operation. In the first nine months of 2008, the restructuring charges were
all related to the Newspapers and Digital Segment.
The restructuring charges in the Newspapers and Digital segment reflect the
ongoing focus on reducing operating costs in both Metroland Media Group and Star
Media Group in response to the revenue declines being realized. Total annual
savings from the third quarter 2009 restructuring activities are expected to be
approximately $1.2 million (with approximately $0.3 million realized during the
fourth quarter of 2009) and a reduction of approximately 18 positions. In
addition, savings of $7.9 million are expected in the fourth quarter of 2009
related to restructuring efforts that were undertaken in 2008 and the first six
months of 2009.
Late in the first quarter of 2009, Harlequin announced the decision to close its
direct-to-consumer distribution centre in the U.K. and to outsource that
function. This will result in annual savings of $0.6 million and a reduction of
approximately 16 positions. Approximately $0.2 million of these savings will be
realized in the fourth quarter of 2009.
Interest
Interest expense was $5.1 million in the third quarter of 2009, down $1.7
million from $6.8 million in the third quarter of 2008. The lower expense
reflects lower effective interest rates and lower debt levels. The average net
debt (long-term debt and bank overdraft net of cash and cash equivalents) was
$588.4 million in the third quarter of 2009, down $40.5 million from $628.9
million in the same period last year. Torstar's effective interest rate was 3.5%
in the third quarter of 2009 and 4.3% in the third quarter of 2008.
Year to date, interest expense was $15.9 million, down $5.8 million from $21.7
million in the same period last year. The lower expense reflects lower effective
interest rates and lower debt levels. Year to date, the average net debt
(long-term debt and bank overdraft net of cash and cash equivalents) was $605.8
million, down $23.5 million from $629.3 million in the same period last year.
Year to date Torstar's effective interest rate was 3.5% compared with 4.6% in
the first nine months of 2008.
Net debt was $553.3 million at September 30, 2009, down $74.0 million from
$627.3 million at December 31, 2008.
Foreign Exchange
Torstar reported a non-cash foreign exchange gain of $0.3 million in the third
quarter of 2009. This gain arose from the translation of foreign-currency
(primarily U.S. dollars) denominated assets and liabilities into Canadian
dollars. The amount of the gain or loss in any year will vary depending on the
movement in relative value of the Canadian dollar and on whether Torstar has a
net asset or net liability position in the foreign currency. In the third
quarter of 2008, Torstar reported a non-cash foreign exchange loss of $0.6
million.
Loss from associated businesses
The loss from associated businesses was $13.6 million in the third quarter of
2009 compared with a loss of $2.9 million in the third quarter of 2008. Year to
date, the loss from associated businesses was $48.3 million compared with income
of $0.8 million in the same period last year.
Torstar's share of CTVgm's net loss was $13.6 million in the third quarter of
2009 compared with a loss of $2.8 million in the third quarter of 2008.
Non-operating items account for approximately $4.8 million of the decline in the
quarter. The remaining year over year decline primarily reflects higher interest
expense and a higher effective income tax rate in the quarter. For CTVgm the
economy has continued to have a negative impact on revenues, but these declines
were virtually offset by lower operating costs in the quarter. The non-operating
items include an impairment loss on intangible assets, a recovery related to
Canadian Radio-televisions and Telecommunications Commission ("CRTC") Part II
licence fees and the non-recurrence of gains related to the sale of investments
in the third quarter of 2008. The impairment loss is related to certain of
CTVgm's television and radio intangible assets and arose through CTVgm's annual
impairment testing of its intangible assets and goodwill. The issue of the
legality of the Part II fees has been on-going for several years. In April 2008,
the Federal Court of Appeal reversed a prior decision of the Federal Court and
found that the fees were a valid regulatory charge. In the second quarter of
2008, CTVgm provided for the Part II licence fees for fiscal 2007 and year to
date fiscal 2008. In December 2008, the Supreme Court of Canada granted the
Canadian Association of Broadcasters ("CAB") leave to appeal the Part II licence
fee case and in January 2009 the CAB's notice of appeal was filed. During this
period CTVgm continued to accrue Part II fees and the CRTC had issued a notice
indicating that they would not collect any Part II fees until the matter was
resolved. During the summer of 2009, preliminary discussions were held between
the CAB and the Federal Government regarding a negotiated settlement to the
case. In early October 2009, the Canadian Federal Government announced that they
had reached an agreement with the CAB regarding the Part II licence fees. Under
the settlement, past amounts owing by the broadcasters for fiscal 2007, 2008 and
2009 will be forgiven, a new, forward-looking fee regime will be developed and
the CAB agreed to discontinue its court action. As a result of the settlement,
CTVgm has reversed all its accruals related to Part II fees.
Year to date, Torstar's share of CTVgm's net loss was $48.1 million compared
with a net income of $3.6 million in the same period last year. Non-operating
items accounted for approximately $6.4 million of the decline year to date,
while a second quarter 2009 valuation allowance that was provided against
certain of CTVgm's future income tax assets accounted for $29.9 million. Year to
date, the non-operating items include the impact of the Part II fee reversal, as
well as the first quarter write-down of several "A" conventional television
licences (on the decision to not renew them), and the first quarter gain on the
sale of one-half of CTVgm's interest in Maple Leaf Sports and Entertainment Ltd.
Excluding the non-operating items and the valuation allowance, Torstar's share
of CTVgm's net loss was $11.8 million. The decline in the year to date earnings
reflected lower revenues and higher interest expense as operating expenses were
relatively flat.
During the fourth quarter, Torstar will complete its annual impairment testing
for the CTVgm intangible assets including broadcast licenses, masthead and
customer relationships, that were identified on the investment by Torstar.
Torstar will also complete an assessment of the value of its investment in CTVgm
to determine if there has been an "other than temporary" decline in the value
relative to its carrying value. Any impairment losses resulting from this
analysis will be recorded in Torstar's fourth quarter results.
Torstar is not currently recording its share of Black Press's results. Torstar's
carrying value in Black Press was reduced to nil in the fourth quarter of 2008
as a result of impairment losses related to Black Press's U.S. newspaper
operations. While under Canadian accounting rules a negative carrying value is
not recorded, the deficit must be recovered prior to the reporting of any
further results. Torstar's share of Black Press's income would have been $1.0
million in the third quarter of 2009, compared with a loss of $0.2 million last
year. The improvement included lower interest expense and a gain on the sale of
a real estate property. Year to date, Torstar's share of Black Press's net
income would have been $1.6 million, compared with a loss of $3.1 million (which
included a $2.1 million write down related to future tax assets) in the same
period last year.
Gain on sale of land
Torstar recognized a gain of $0.2 million in the third quarter related to the
sale of a small property in Cambridge. In the second quarter of 2008, Torstar
recognized a gain of $9.2 million on the disposition of excess land.
Investment write-down
In the second quarter of 2008, Torstar recorded a write-down of $2.4 million on
its portfolio investment in U.S. based LiveDeal Inc. to fair value.
Income and other taxes
Torstar recorded a third quarter tax provision of $6.8 million on income before
taxes of $10.8 million. Torstar's effective tax rate was 27.8% in the third
quarter of 2009, excluding the impact of the $13.6 million loss from associated
businesses which was not tax affected. During the third quarter of 2008
Torstar's effective tax rate was 26.3%.
Year to date, Torstar recorded a tax provision of $10.2 million on a loss before
taxes of $11.5 million. Torstar's effective tax rate was 27.7% year to date,
excluding the impact of the $48.3 million loss from associated businesses which
was not tax affected. During the first nine months of 2008, Torstar's effective
tax rate was 25.2% excluding a one-time adjustment of $1.3 million for a
recovery of prior period taxes.
The effective tax rates in both periods in 2009 were slightly higher than in the
prior year due to the mix of income year over year including items in 2008 that
were tax affected at a capital gains rate.
Income (loss) from continuing operations
Torstar reported income from continuing operations of $4.0 million in the third
quarter of 2009 down $12.6 million from $16.6 million in the third quarter of
2008. Year to date, Torstar reported a loss from continuing operations of $21.7
million compared with income of $52.9 million in the same period last year.
Discontinued operations
Transit TV ceased operations in early 2009 and the two Transit TV subsidiaries
filed a voluntary petition for relief under Chapter 7 of the United States
Bankruptcy Code. Accordingly, the Transit TV results for 2008 have been restated
to be shown as discontinued operations.
Net income (loss)
Torstar reported net income of $4.0 million or $0.05 per share in the third
quarter of 2009. In the third quarter of 2008 Torstar reported a net loss of
$0.7 million or $0.01 per share. Year to date, Torstar reported a net loss of
$21.7 million or $0.27 per share. In the first nine months of 2008 Torstar
reported net income of $32.4 million or $0.41 per share.
Outstanding shares
The average number of Class A and Class B non-voting shares outstanding was 79.0
million in both the third quarter and year to date. In 2008, 78.9 million were
outstanding in the third quarter and 78.8 million during the first nine months.
OUTLOOK
The continued weakness in the Ontario economy has resulted in revenue challenges
for the Newspapers and Digital segment during the first nine months of 2009.
Torstar expects that advertising revenue will continue to be soft through the
fourth quarter. The segment will continue to face higher pension costs. In
contrast, if newsprint pricing stays at current levels, the fourth quarter of
2009 will benefit from year over year savings. In response to these challenges,
the Newspapers and Digital segment has continued with the restructuring efforts
to reduce costs. The restructuring initiatives have resulted in savings of $26.2
million in the first nine months of 2009 and are expected to generate savings of
$8.2 million in the fourth quarter.
Harlequin has had a very solid first nine months of the year and is expected to
report full year growth excluding the impact of foreign exchange. Results in the
fourth quarter are expected to be stable. As noted earlier, the benefit of the
SoftBank digital sales in Japan began in the second quarter of 2008 and
therefore will have a lower year over year benefit during the fourth quarter.
Harlequin continues to face risk from the global and, in particular, the U.S.
economic situation including potential disruptions to the U.S. retail
distribution system and potential further reductions in consumer spending.
As a result of the accounting policy change related to customer acquisition
costs, which was also noted earlier, Harlequin's restated fourth quarter 2008
operating profit is $14.3 million compared with $17.2 million as originally
reported. This change reflects the high level of spending that is incurred in
the fourth quarter in Harlequin's direct-to-consumer businesses.
Despite the recent strengthening of the Canadian dollar, Harlequin's 2009
results will benefit from a year over year weaker Canadian dollar relative to
the U.S. dollar. In 2008, including the impact of the U.S. dollar contracts,
Harlequin's U.S. dollar earnings were translated at a rate of approximately
$1.07. For 2009, Torstar has U.S. dollar contracts for $50.1 million U.S. at an
average exchange rate of $1.12. The balance of Harlequin's U.S. earnings in 2009
will be translated at the average exchange rates realized during the year. Year
to date, Harlequin has benefited by $5.1 million from foreign exchange. If the
Canadian dollar remains at its current levels relative to the U.S. dollar and
overseas currencies, we are anticipating a positive foreign exchange impact in
the fourth quarter of approximately $0.5 million.
Torstar is currently negotiating a 364-day extension of its $310 million
revolving operating loan. Based on current market conditions and interest rate
spreads, it is anticipated that Torstar's costs of borrowing will increase in
2010.
OTHER
Torstar is pleased to announce that the Board of Directors has approved Phyllis
Yaffe to the new position of lead director.
On November 3, 2009, Torstar declared a quarterly dividend of 9.25 cents per
share on its Class A shares and Class B non-voting shares, payable on December
31, 2009, to shareholders of record at the close of business on December 11,
2009. Torstar advises that, for the purposes of the Income Tax Act, Canada and
for any relevant provincial tax legislation, this dividend is designated as an
eligible dividend.
ADDITIONAL INFORMATION
For additional information, please refer to Torstar's consolidated financial
statements and interim Management's Discussion and Analysis ("MD&A") for the
period ended September 30, 2009. Both documents will be filed today with SEDAR
and are available on Torstar's corporate website www.torstar.com.
CONFERENCE CALL
Torstar has scheduled a conference call for November 4, 2009 at 8:15 a.m. to
discuss its third quarter results. The dial-in number is 1-800-769-8320. A live
broadcast of the conference call will be available over the Internet on the
Investor Relations (Conference Calls) page on Torstar's website www.torstar.com.
A recording of the conference call will be available for 9 days by calling
416-695-5800 or 1-800-408-3053 and entering reservation number 8106778. An
online archive of the broadcast will be available shortly after the completion
of the call and will be accessible by visiting the Investor Relations
(Conference Calls) page on Torstar's website www.torstar.com.
About Torstar Corporation
Torstar Corporation is a broadly based media company listed on the Toronto Stock
Exchange (TS.B). Its businesses include the Star Media Group led by the Toronto
Star, Canada's largest daily newspaper and digital properties including
thestar.com, toronto.com, Workopolis, Olive Media, and eyeReturn; Metroland
Media Group, publishers of community and daily newspapers in Ontario; and
Harlequin Enterprises, a leading global publisher of books for women.
Non-GAAP Measures
Management uses both operating profit, as presented in the consolidated
statements of income, and EBITDA as measures to assess the performance of the
reporting units and business segments. EBITDA is a measure that is also used by
many of Torstar's shareholders, creditors, other stakeholders and analysts as a
proxy for the amount of cash generated by Torstar's operations or by a reporting
unit or segment. EBITDA is not the actual cash provided by operating activities
and is not a recognized measure of financial performance under GAAP. Torstar
calculates EBITDA as the consolidated, segment or reporting unit operating
profit before charges for interest, taxes, depreciation and amortization of
intangible assets. Torstar also excludes restructuring and other charges from
its calculation of EBITDA. Torstar's method of calculating EBITDA may differ
from other companies and accordingly may not be comparable to measures used by
other companies.
Forward-looking statements
Certain statements in this press release and in the Company's oral and written
public communications may constitute forward-looking statements that reflect
management's expectations regarding the Company's future growth, results of
operations, performance and business prospects and opportunities as of the date
of this report. Generally, these forward-looking statements can be identified by
the use of forward-looking terminology such as "anticipate", "believe", "plan",
"forecast", "expect", "intend", "would", "could", "if", "may" and similar
expressions. All such statements are made pursuant to the "safe harbour"
provisions of applicable Canadian securities legislation. These statements
reflect current expectations of management regarding future events and operating
performance, and speak only as of the date of this report. The Company does not
intend, and disclaims any obligation to, update any forward-looking statements,
whether written or oral, or whether as a result of new information or otherwise,
except as may be required by law.
By their very nature, forward-looking statements require management to make
assumptions and are subject to inherent risks and uncertainties. There is a
significant risk that predictions, forecasts, conclusions or projections will
not prove to be accurate, that management's assumptions may not be accurate and
that actual results, performance or achievements may differ significantly from
such predictions, forecasts, conclusions or projections expressed or implied by
such forward-looking statements. We caution readers to not place undue reliance
on the forward-looking statements in this press release as a number of factors
could cause actual future results, conditions, actions or events to differ
materially from the targets, outlooks, expectations, goals, estimates or
intentions expressed in the forward-looking statements. In addition,
forward-looking statements are provided for the purpose of providing information
about management's current expectations and plans relating to the future.
Readers are cautioned that reliance on such information may not be appropriate
for other purposes.
These factors include, but are not limited to: general economic conditions in
the principal markets in which the Company operates, the Company's ability to
operate in highly competitive industries, the Company's ability to compete with
other forms of media, the Company's ability to attract advertisers, cyclical and
seasonal variations in the Company's revenues, labour disruptions, newsprint
costs, foreign exchange fluctuations, investments, restrictions imposed by
existing credit facilities and availability of capital, pension fund
obligations, reliance on its printing operations, reliance on technology and
information systems, interest rates, availability of insurance, litigation,
environmental regulations, dependence on key personnel, control of Torstar by
the voting trust, loss of reputation, intellectual property rights and
uncertainties associated with critical accounting estimates.
We caution that the foregoing list is not exhaustive of all possible factors, as
other factors could adversely affect our results. For more information, please
see the discussion of risks affecting Torstar and its businesses in Torstar's
2008 Management's Discussion & Analysis which is available at www.sedar.com and
on Torstar's corporate website www.torstar.com.
In addition, a number of assumptions, including those assumptions specifically
identified throughout this press release, were applied in making the
forward-looking statements set forth in this press release. Some of the key
assumptions include, without limitation, assumptions regarding the performance
of the North American economy; tax laws in the countries in which we operate;
continued availability of printing operations; continued availability of
financing on appropriate terms; exchange rates; market competition; and
successful development of new products. There is a risk that some or all of
these assumptions may prove to be incorrect.
Torstar's new releases are available on the Internet at www.torstar.com.
Torstar Corporation
Consolidated Balance Sheets
(Dollars in Thousands)
(Unaudited)
September 30 December 31
2009 2008
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Assets
Current:
Cash and cash equivalents $39,806 $45,787
Receivables 222,340 273,658
Inventories 33,629 41,075
Prepaid expenses 58,800 59,814
Prepaid and recoverable income taxes 13,401 13,719
Future income tax assets 17,642 25,716
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Total current assets 385,618 459,769
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Property, plant and equipment (net) 274,420 298,475
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Investment in associated businesses 151,419 201,571
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Intangible assets 35,393 34,667
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Goodwill 579,099 577,116
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Other assets 145,802 156,543
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Future income tax assets 37,658 50,592
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Total assets $1,609,409 $1,778,733
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Liabilities and Shareholders' Equity
Current:
Bank overdraft $7,227 $4,425
Accounts payable and accrued liabilities 192,571 238,600
Income taxes payable 18,930 10,057
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Total current liabilities 218,728 253,082
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Long-term debt 585,863 668,700
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Other liabilities 106,799 119,827
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Future income tax liabilities 66,741 72,090
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Shareholders' equity:
Share capital 391,581 390,978
Contributed surplus 11,755 11,018
Retained earnings 245,313 288,934
Accumulated other comprehensive loss (17,371) (25,896)
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Total shareholders' equity 631,278 665,034
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Total liabilities and shareholders' equity $1,609,409 $1,778,733
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Torstar Corporation
Consolidated Statements of Income
(Dollars in Thousands)
(Unaudited)
Three months ended Nine months ended
September 30 September 30
2009 2008 2009 2008
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Operating revenue
Newspapers and digital $221,233 $253,175 $685,396 $774,691
Book publishing 122,501 118,124 371,078 346,711
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$343,734 $371,299 $1,056,474 $1,121,402
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Operating profit
Newspapers and digital $10,626 $21,869 $30,952 $71,710
Book publishing 22,863 18,659 63,144 53,194
Corporate (3,419) (4,405) (10,880) (13,135)
Restructuring and other charges (1,056) (3,375) (30,761) (28,600)
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29,014 32,748 52,455 83,169
Interest (5,122) (6,774) (15,936) (21,653)
Foreign exchange 296 (598) 35 (38)
Income (loss) of associated
businesses (13,590) (2,901) (48,303) 796
Gain on sale of land 239 (30) 239 9,170
Investment loss and write-down 21 (2,398)
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Income (loss) before taxes 10,837 22,466 (11,510) 69,046
Income and other taxes (6,800) (5,900) (10,200) (16,100)
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Income (loss) from continuing
operations 4,037 16,566 (21,710) 52,946
Discontinued operations (17,314) (20,533)
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Net income (loss) $4,037 ($748) ($21,710) $32,413
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Earnings (loss) per Class A and
Class B share:
Net income (loss) from continuing
operations - Basic and Diluted $0.05 $0.21 ($0.27) $0.67
Net income (loss) - Basic and
Diluted $0.05 ($0.01) ($0.27) $0.41
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1. EBITDA is calculated as operating profit before interest, taxes,
depreciation and amortization of intangible assets. It also excludes
restructuring and other charges. See "non-gaap measures".
2. The Newspapers and Digital 2008 EBITDA has been restated to reflect
Transit TV as a discontinued operation and the Book Publishing 2008
EBITDA has been restated for the retrospective adoption of CICA Handbook
Section 3064.
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