Montreal-based Transcontinental has announced its fourth quarter results, which the company describes as the best operating performance in its history. The result brings the company to six consecutive quarters of growing operating income, excluding unusual items.
“I am very proud of our results for the fourth quarter and all of fiscal 2010, as they clearly show that we have the strategy, the disciplined management, the financial foundation and the people we need to continue our growth,” said François Olivier, President and Chief Executive Officer of Transcontinental. “In the past year we have strengthened our core business and invested in new services that meet the emerging needs of our customers, while also improving synergies and generating greater profitability.”
The company’s revenues for the fourth quarter remained stable at $570 million between the same period in 2009, but the company saw its adjusted operating income grow to $88.2 million from $85.0 million in 2009.
In 2010, Transcontinental has continued to diversify from its printing roots, investing in Internet media companies such as Vortex Mobile while divesting in direct-mail operations, chiefly in the United States. The company also helped The Globe and Mail in its dramatic redesign, stemming from its new printing plant, part of three major capital projects costing $700 million since 2007.
The company’s ratio of net debt to adjusted operating income has also improved over 2009, which saw it fall from 2.59 to 1.85. The company’s management says it aims to reduce the ratio to about 1.50.