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Press release from CNW Group

Transcontinental Inc. increases its revenues by 12% and adjusted operating income by 21% in the 4th quarter

Thursday, December 06, 2012

Transcontinental Inc. increases its revenues by 12% and adjusted operating income by 21% in the 4th quarter12:14 EST Thursday, December 06, 2012Highlights of the Fourth Quarter (in millions of dollars, except per share data)Q4-12Q4-11%    Revenues$585.1$521.612.2%Adjusted operating income before amortization (1) (Adjusted EBITDA)123.8110.012.5%Adjusted operating income (1) (Adjusted EBIT)96.480.020.5%Adjusted net income applicable to participating shares (1)61.954.513.6%Per share0.770.6813.2%Net income applicable to participating shares(51.9)30.8---Per share(0.65)0.38---Note 1: Please refer to the table " Reconciliation of Non-IFRS financial measures" in this press release.Increase of 12.2% in revenues and 20.5% in adjusted operating income.Increase of 12.5% in adjusted operating income before amortization.Decrease in net income applicable to participating shares due to unusual items totaling $113.5 million.Reached an agreement in principle with Hearst Corporation for new terms and conditions to print the San Francisco Chronicle.Continued integration of Quad/Graphics Canada, Inc., which was acquired on March 1, 2012.Start of TC Media's television production activity.Maintained a solid financial position with a net indebtedness ratio of 1.32x. MONTREAL, Dec. 6, 2012 /CNW Telbec/ - Transcontinental Inc. (TSX: TCL.A TCL.B TCL.PR.D) ended fiscal 2012 on a very good note with revenues up 12.2% in the fourth quarter from $521.6 million to $585.1 million. This increase is mainly due to the acquisition of Quad/Graphics Canada, Inc. and acquisitions in the Media Sector, namely Redux Media. Excluding acquisitions and closures, and the impact of fluctuations in the exchange rate and paper, organic revenue growth was $0.8 million, or 0.2%.Fourth quarter adjusted operating income rose 20.5%, from $80.0 million to $96.4 million. This increase stems mainly from the synergies from the integration of Quad/Graphics Canada, Inc., the optimization of the operational structure of digital operations and a higher volume from educational book publishing activities. Adjusted net income applicable to participating shares, which excludes unusual items and discontinued operations, rose 13.6%, from $54.5 million, or $0.68 per share, to $61.9 million, or $0.77 per share. Net income applicable to participating shares declined, from $30.8 million, or $0.38 per share, to a loss of $51.9 million, or $0.65 per share. This decrease stems mainly from a $57.2 million impairment charge of the carrying value of our U.S. deferred tax asset related to a decrease of activities in this country."I am especially pleased with how we have ended fiscal 2012, said François Olivier, President and Chief Executive Officer. As expected, despite the volatile advertising market, revenues and profitability in the fourth quarter grew due to the contribution from the integration of Quad/Graphics Canada, Inc. and the good performance of the Media Sector.In 2012, thanks to the strategic acquisition of Quad/Graphics Canada, Inc., we confirmed our position as Canada's largest printer. In the midst of this transaction, we integrated a certain number of the acquired plants into our state-of-the-art printing network in order to maximize the utilization of our most efficient equipment. Furthermore, we sold operations which we considered less strategic for the Corporation over the longer term. We renewed several multi-year printing and distribution agreements and we launched and acquired titles to expand the scope of our newspaper network. In addition, because of our excellent financial position and our ability to generate significant cash flows, we maintained the necessary flexibility to continue to develop TC Transcontinental. We continued to enhance our new services by entering the television production space, by investing in our flagship brands, by expanding the scope of our digital advertising representation and by continuing to rollout mobile apps for our clients and our own brands. I am certain that our achievements in the past year put us in an excellent position to pursue our transformation."Highlights of Fiscal 2012(in millions of dollars, except per share data)20122011%    Revenues$2,112.1$1,989.36.2%Adjusted operating income before amortization (1) (Adjusted EBITDA)357.6365.4(2.1%)Adjusted operating income (1) (Adjusted EBIT)245.2246.6(0.6%)Adjusted net income applicable to participating shares (1)149.4155.3(3.8%)Per share1.851.92(3.6%)Net income applicable to participating shares(183.3)120.7---Per share(2.27)1.49---Note 1: Please refer to the table " Reconciliation of Non-IFRS financial measures" in this press release.In 2012, TC Transcontinental's revenues increased 6.2%, from $1,989.3 million to $2,112.1 million. This increase stems mainly from the acquisitions of Quad/Graphics Canada, Inc. and Redux Media. It was, however, mitigated by the incentives granted at the renewal of certain printing contracts and by non-recurring revenue from the printing contract for the Canadian Census in 2011. Adjusted operating income remained relatively stable, from $246.6 million to $245.2 million. The slight decrease of 0.6% derives primarily from the Media Sector, due to the end of the school reform in Quebec, which impacted educational book publishing revenues, as well as a soft national advertising market. The decrease was mitigated by new printing contracts, the synergies from the integration of Quad/Graphics Canada, Inc., and the optimization of the operational structure of our digital operations.Net income applicable to participating shares declined, from $120.7 million, or $1.49 per share, to a loss of $183.3 million, or $2.27 per share. The decrease stems mainly from a $232.0 million asset impairment related to the Media Sector, which was non-cash. The decrease also stems from a $58.0 million provision for notices of re-assessment from tax authorities, which the Corporation is currently contesting, a $57.2 million impairment charge of the carrying value of our U.S. deferred tax asset, and $55.0 million in restructuring and other costs mostly related to the integration of Quad/Graphics Canada, Inc. These items were, however, partially offset by a gain on acquisition of $32.1 million. Excluding unusual items and discontinued operations, adjusted net income applicable to participating shares decreased 3.8%, from $155.3 million, or $1.92 per share, to $149.4 million, or $1.85 per share.For more detailed financial information, please see Management's Discussion and Analysis for the fiscal year ended October 31st, 2012 as well as the financial statements in the "Investors" section of our website at www.tc.tc Subsequent event: Transcontinental Inc. and Hearst Corporation have reached an agreement in principle for new terms and conditions to print the San Francisco Chronicle Transcontinental Inc. and Hearst Corporation today reached an agreement in principle to amend the terms and conditions of the 15-year contract started July 2009 to print the San Francisco Chronicle. Under the new agreement, which will be effective January 1st, 2013, TC Transcontinental will receive a one-time cash payment of US$200 million from Hearst Corporation to compensate for price reductions on future services. TC Transcontinental will continue to print the Chronicle over the term of the agreement, receive payment for services and maintain ownership of the printing plant and equipment.Given the new market reality in the San Francisco Area, the Chronicle will only require the use of up to two-thirds of the printing equipment under the original contract. As a result, the Chronicle will benefit from price reductions of approximately US$30 million per year from TC Transcontinental, over the remaining term of the agreement, to account for the upfront payment and the reduction in the use of the printing equipment.The impact on the profitability of TC Transcontinental's Fremont, California plant will not be significant as the US$200 million upfront payment will be deferred and transferred to revenues over the remaining life of the contract and the Corporation will be able to reduce its cost base to compensate for the reduction in the use of the required printing equipment. Furthermore, TC Transcontinental will focus on using the available capacity for other potential customers."We are pleased to continue to foster our growing relationship with Hearst Corporation, not only in printing, but also in magazine publishing, with our Elle brand partnership in Canada, and in digital solutions with our advertising representation partnership," said François Olivier, president and CEO of Transcontinental Inc.Other Highlights of Fiscal 2012Strengthening core operationsFor the Printing Sector, the acquisition of Quad/Graphics Canada, Inc., which was completed on March 1, 2012, should generate close to $200 million in annual revenues and a net increase in adjusted operating income before amortization of more than $40 million by the end of 2014, of which $11.4 million was realized in 2012. In the midst of this transaction, the Corporation began reorganizing its printing operations in Canada by ensuring the use of its most productive equipment. Moreover, black and white book printing operations were sold in 2012. A number of multi-year agreements with retail customers and with Rogers, valued at more than $1.75 billion, were renewed and expanded.In fiscal 2012, the Media Sector expanded its content offering by acquiring or launching several community newspapers and purchasing, from its partners, all outstanding shares of the Métro Montréal newspaper. The introduction of the brand Fresh Juice, which offers food-related content on a number of different platforms, and the addition of Éditions Caractère to the portfolio of educational books for the general public, enhanced the catalogue of titles published by the Corporation. However, in the process of reviewing its brand portfolio and to channel its efforts toward the development of its leading multiplatform brands, the Corporation decided to stop publishing the More and Vita brands.Development of new servicesIn 2012, TC Transcontinental added television production to its service offering. Several mobile apps were also developed for its own properties and those of its partners, namely On the Table and P$ Mobile Service for Stationnement de Montréal. The job search site JobGo.ca was also launched. In addition, the Corporation expanded its digital offering by signing numerous advertising representation agreements and partnerships and by acquiring Redux Media, a leading online advertising network. Through its innovation program, the Corporation introduced Panoramax, the largest promotional insert in Canada printed on high-volume presses.Financial highlightsThe adjusted net indebtedness ratio improved from 1.48x as at October 31, 2011 to 1.32x as at October 31, 2012. Under its share purchase program, as at October 31, 2012, the Corporation bought back 2,011,600 of its Class A Subordinate Voting Shares at a weighted average price of $8.86, for a total consideration of $17.8 million. Transcontinental Inc. also put in place a new five-year unsecured term-credit facility of $400 million which matures in February 2017. An amount of $194.9 million was drawn on this facility as at October 31, 2012.Changes in the Board of DirectorsOn February 16, 2012, Rémi Marcoux stepped down as Chair of the Board of Transcontinental Inc., and was replaced by Isabelle Marcoux. Mr. Marcoux remains on the Board as a director. In September 2012, Alain Tascan, President and CEO of Sava Transmedia, which publishes and develops social games on mobile and online platforms, joined the Board. Ms. Marcoux was also recognized in early December 2012 for her strategic vision and leadership when she received the prestigious Canada's Most Powerful Women: Top 100TM Award.OutlookIn fiscal 2013, the acceleration of synergies from the integration of the operations of Quad/Graphics Canada, Inc., optimization of the Media Sector structure and continuation of the marketing activation strategy which has enabled the Corporation to renew and expand contracts with key accounts in 2012, should enable it to improve its profitability in a fast-changing industry. These elements should offset the loss of Zellers, a major client who announced in 2012 that it will be closing all its stores by March 2013. The Corporation is also starting fiscal 2013 in an excellent financial position with a net indebtedness ratio of 1.32x. Also, given its planned investment of about $70 million in property, plant and equipment, it should also be generating considerable net cash flows, which will allow it to further reduce its indebtedness, invest in the development of new marketing services and strategic acquisitions, and return funds to its shareholders.Reconciliation of Non-IFRS Financial MeasuresFinancial data have been prepared in conformity with IFRS. However, certain measures used in this press release do not have any standardized meaning under IFRS and could be calculated differently by other companies. We believe that many readers analyze our results based on certain non-IFRS financial measures because such measures are more appropriate for evaluating the Corporation's operating performance. Internally, Management uses such non-IFRS financial information as an indicator of business performance, and evaluates management's effectiveness with specific reference to these indicators. These measures should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS.The following table reconciles IFRS financial measures to non-IFRS financial measures.Reconciliation of Non-IFRS financial measures(unaudited)             Three months ended October 31 For fiscal years ended October 31(in millions of dollars, except per share amounts) 2012  2011  2012  2011Net income (loss) applicable to participating shares$(51.9) $30.8 $(183.3) $120.7Dividends on preferred shares 1.7  1.7  6.8  6.8Net loss (income) related to discontinued operations (after tax) 0.3  (27.6)  7.4  (28.6)Non-controlling interests 0.6  0.1  0.6  0.9Unusual adjustments to income taxes 57.2  -  99.2  -Income tax expenses 6.6  5.2  13.1  31.5Expenses related to long-term debt repayments -  -  -  5.8Financial expenses related to unusual adjustments to income taxes -  -  16.0  -Financial expenses 7.8  9.9  30.5  39.2Gain on business acquisition (0.4)  -  (32.1)  -Impairment of assets 51.2  51.3  232.0  55.2Restructuring and other costs 23.3  8.6  55.0  15.1Adjusted operating income$96.4 $80.0 $245.2 $246.6Amortization 27.4  30.0  112.4  118.8Adjusted operating income before amortization$123.8 $110.0 $357.6 $365.4Net income (loss) applicable to participating shares$(51.9) $30.8 $(183.3) $120.7Net loss (income) from discontinued operations (after tax) 0.3  (27.6)  7.4  (28.6)Unusual adjustments to income taxes (after tax) 57.2  -  99.2  -Expenses related to long-term debt repayments (after tax) -  -  -  4.2Financial expenses related to unusual adjustments to income taxes (after tax) -  -  16.0  -Gain on business acquisition (after tax) (0.4)  -  (32.1)  -Impairment of assets (after tax) 39.9  44.4  202.6  47.3Restructuring and other costs (after tax) 16.8  6.9  39.6  11.7Adjusted net income applicable to participating shares$61.9 $54.5 $149.4 $155.3Average number of participating shares outstanding 80.0  81.0  80.7  81.0Adjusted net income applicable to participating shares per share$0.77 $0.68 $1.85 $1.92                    As at October 31, 2012  As at October 31,2011Long-term debt      $204.1 $292.5Current portion of long-term debt       283.5  271.9Cash       (16.8)  (75.0)Net indebtedness      $470.8 $489.4Amount to be paid to Quad/Graphics following the closing of the transaction toacquire the shares of Quad/Graphics Canada       -  50.0Adjusted net indebtedness      $470.8 $539.4Adjusted operating income before amortization (last 12 months)      $357.6 $365.4Net indebtedness ratio       1.32x  1.34xAdjusted net indebtedness ratio       1.32x  1.48x DividendsAt its December 6, 2012 meeting, the Corporation's Board of Directors declared a quarterly dividend of $0.145 per Class A Subordinate Voting Shares and Class B Shares. This dividend is payable on January 18, 2013 to participating shareholders of record at the close of business on December 31, 2012. On an annual basis, this represents a dividend of $0.58 per share. Furthermore, at the same meeting, the Board also declared a quarterly dividend of $0.4253 per share on cumulative 5-year rate reset first preferred shares, series D. This dividend is payable on January 15, 2013. On an annual basis, this represents a dividend of $1.6875 per preferred share.Additional InformationUpon releasing its fiscal 2012 results, Transcontinental Inc. will hold a conference call for the financial community today at 4:15 p.m. The dial-in numbers are (514) 807-9895 or (647) 427-7450 or 1-888-231-8191 and the access code is: 86820766. Media may hear the call in listen-only mode or tune in to the simultaneous audio broadcast on the Corporation's Web site, which will then be archived for 30 days. For media requests for information or interviews, please contact Nathalie St-Jean, Senior Advisor, Corporate External Communications of TC Transcontinental, at (514) 954-3581.ProfileLargest printer and leading provider of media and marketing activation solutions in Canada, TC Transcontinental creates products and services that allow businesses to attract, reach and retain their target customers.  The Corporation specializes in print and digital media, the production of magazines, newspaper, books and custom content, mass and personalized marketing, interactive and mobile applications, TV production and door-to-door distribution.Transcontinental Inc. (TSX: TCL.A, TCL.B, TCL.PR.D), known by the brands TC Transcontinental, TC Media and TC Transcontinental Printing, has approximately 9,500 employees in Canada and the United States, and reported revenues of C$2.1 billion in 2012. Website www.tc.tc.Forward-looking StatementsThis press release contains certain forward-looking statements concerning the future performance of the Corporation. Such statements, based on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown. We caution that all forward-looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward-looking information, and that actual future performance will be affected by a number of factors, many of which are beyond the Corporation's control, including, but not limited to, the economic situation, structural changes in its industries, exchange rate, availability of capital, energy costs, increased competition, as well as the Corporation's capacity to engage in strategic transactions and integrate acquisitions into its activities. The risks, uncertainties and other factors that could influence actual results are described in the Management's Discussion and Analysis (MD&A) for the fiscal year ended on October 31st, 2012.The forward-looking information in this release is based on current expectations and information available as at December 6, 2012. The Corporation's management disclaims any intention or obligation to update or revise any forward-looking statements unless otherwise required by the Securities Authorities. CONSOLIDATED STATEMENTS OF INCOME (LOSS)Years ended October 31, 2012 and 2011    (in millions of Canadian dollars, except per share data)           2012 2011     Revenues$2,112.1$1,989.3Operating expenses 1,754.5 1,623.9Restructuring and other costs 55.0 15.1Impairment of assets 232.0 55.2Gain on business acquisition (32.1) -      Operating income before amortization 102.7 295.1Amortization 112.4 118.8     Operating income (loss) (9.7) 176.3Net financial expenses 46.5 45.0     Income (loss) before income taxes (56.2) 131.3Income taxes 112.3 31.5     Net income (loss) from continuing operations (168.5) 99.8Net income (loss) from discontinued operations (7.4) 28.6     Net income (loss) (175.9) 128.4Non-controlling interests 0.6 0.9Net income (loss) attributable to shareholders of the Corporation (176.5) 127.5Dividends on preferred shares, net of related taxes 6.8 6.8Net income (loss) attributable to participating shares $(183.3)$120.7     Net income (loss) per participating share - basic and diluted     Continuing operations$(2.18)$1.14 Discontinued operations (0.09) 0.35 $(2.27)$1.49     Weighted average number of participating shares outstanding - basic (in millions) 80.7 81.0     Weighted average number of participating shares - diluted (in millions) 80.7 81.1 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)Years ended October 31, 2012 and 2011     (in millions of Canadian dollars)          2012  2011      Net income (loss) $(175.9) $128.4      Other comprehensive loss           Items that will be reclassified to net income (loss):       Net change related to cash flow hedges       Net change in the fair value of derivatives designated as cash flow hedges (0.6)  5.3  Reclassification of the net change in the fair value of derivatives designated as cash flow hedges inprior periods, recognized in net income (loss) during the period 3.9  (7.6)  Related income taxes 0.9  (0.5)  2.4  (1.8)       Cumulative translation differences       Net gains (losses) on the translation of the financial statements of foreign operations 0.7  (1.9)      Items that will not be reclassified to net income (loss):      Changes in actuarial gains and losses in respect of defined benefit pension plans       Actuarial losses in respect of defined benefit pension plans (81.9)  (26.4)  Related income taxes (22.5)  (6.5)  (59.4)  (19.9)      Other comprehensive loss (56.3)  (23.6)Comprehensive income (loss)$(232.2) $104.8      Attributable to:      Shareholders of the Corporation$(232.8) $103.9 Non-controlling interests 0.6  0.9 $(232.2) $104.8CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Years ended October 31, 2012 and 2011(in millions of Canadian dollars)                       Attributable to shareholders of the Corporation       Share capital  Contributedsurplus  Retainedearnings  Accumulatedothercomprehensiveloss  Total  Non-controllinginterests  Total equity                     Balance as at November 1, 2011$478.1 $1.8 $750.3 $(28.1) $1,202.1 $0.8 $1,202.9Net income (loss) -  -  (176.5)  -  (176.5)  0.6  (175.9)Other comprehensive loss -  -  -  (56.3)  (56.3)  -  (56.3)Shareholders' contributions and distributions to shareholders                     Participating share redemptions (11.0)  -  (6.8)  -  (17.8)  -  (17.8) Exercise of stock options 0.6  (0.1)  -  -  0.5  -  0.5 Dividends -  -  (52.8)  -  (52.8)  -  (52.8) Stock-option based compensation -  0.8  -  -  0.8  -  0.8Balance as at October 31, 2012$467.7 $2.5 $514.2 $(84.4) $900.0 $1.4 $901.4                     Balance as at November 1, 2010$477.9 $1.1 $669.3 $(4.5) $1,143.8 $0.8 $1,144.6Net income -  -  127.5  -  127.5  0.9  128.4Other comprehensive loss -  -  -  (23.6)  (23.6)  -  (23.6)Shareholders' contributions and distributions to shareholders                     Exercise of stock options 0.2  -  -  -  0.2  -  0.2 Dividends -  -  (46.5)  -  (46.5)  (0.9)  (47.4) Stock-option based compensation -  0.7  -  -  0.7  -  0.7Balance as at October 31, 2011$478.1 $1.8 $750.3 $(28.1) $1,202.1 $0.8 $1,202.9  CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONYears ended October 31, 2012 and 2011        and opening balances as at November 1, 2010        (in millions of Canadian dollars)                   As atOctober 31,2012  As atOctober 31,2011  As atNovember 1,2010         Current assets         Cash$16.8 $75.0 $31.9 Accounts receivable 449.8  425.5  428.8 Income taxes receivable 38.9  14.7  19.5 Inventories 82.5  77.2  74.2 Prepaid expenses and other current assets 14.7  18.1  19.1 Current assets related to discontinued operations -  14.0  41.8  602.7  624.5  615.3         Property, plant and equipment 651.2  680.4  760.0Intangible assets 171.5  149.6  179.1Goodwill 487.0  679.2  674.8Deferred income taxes 192.6  192.6  189.9Other assets 31.2  20.2  32.3Non-current assets related to discontinued operations -  13.5  65.1 $2,136.2 $2,360.0 $2,516.5         Current liabilities         Accounts payable and accrued liabilities$336.8 $287.1 $324.3 Provisions 15.5  8.6  15.6 Income taxes payable 50.3  33.5  29.0 Deferred subscription revenues and deposits 39.3  32.5  38.4 Current portion of long-term debt 283.5  271.9  293.8 Current liabilities related to discontinued operations -  7.6  18.2  725.4  641.2  719.3         Long-term debt  204.1  292.5  436.9Deferred income taxes  68.4  120.7  119.0Provisions 45.3  13.9  15.8Other liabilities  191.6  88.8  80.2Non-current liabilities related to discontinued operations  -  -  0.7  1,234.8  1,157.1  1,371.9         Equity         Share capital 467.7  478.1  477.9 Contributed surplus 2.5  1.8  1.1 Retained earnings 514.2  750.3  669.3 Accumulated other comprehensive loss (84.4)  (28.1)  (4.5) Attributable to shareholders of the Corporation 900.0  1,202.1  1,143.8 Non-controlling interests 1.4  0.8  0.8  901.4  1,202.9  1,144.6 $2,136.2 $2,360.0 $2,516.5  CONSOLIDATED STATEMENTS OF CASH FLOWS     Years ended October 31, 2012 and 2011     (in millions of Canadian dollars)             2012  2011      Operating activities      Net income (loss)$(175.9) $128.4 Less: Net income (loss) from discontinued operations (7.4)  28.6 Net income (loss) from continuing operations (168.5)  99.8       Adjustments to reconcile net income (loss) from continuing operations andcash flows from operating activities:       Amortization 132.9  144.6  Impairment of assets 232.0  55.2  Gain on business acquisition (32.1)  -  Financial expenses on long-term debt 27.0  34.6  Interest on tax contingencies 16.0  -  Expenses related to long-term debt prepayment -  5.8  Net loss (gain) on disposal of assets (1.2)  1.2  Income taxes 112.3  31.5  Stock-option based compensation 0.8  0.7  Other 1.6  (0.4) Cash flows generated by operating activities before changes in non-cash operatingitems and income tax paid 320.8      373.0 Changes in non-cash operating items (43.8)  (21.7) Income tax paid (48.0)  (19.5) Cash flows from continuing operations 229.0  331.8 Cash flows from discontinued operations 0.9  7.2    229.9  339.0      Investing activities      Business acquisitions (60.4)  (35.8) Acquisitions of property, plant and equipment (37.3)  (47.2) Disposals of property, plant and equipment 3.6  2.6 Increase in intangible assets (22.0)  (17.5) Cash flows from investments in continuing operations (116.1)  (97.9) Cash flows from investments in discontinued operations 10.0  48.8  (106.1)  (49.1)      Financing activities      Reimbursement of long-term debt (89.8)  (168.7) Net increase in revolving term credit facility 11.4  4.4 Financial expenses on long-term debt (26.1)  (30.5) Expenses related to long-term debt prepayment -  (4.4) Interest on tax contingencies paid (8.1)  - Dividends on participating shares (46.0)  (39.7) Dividends on preferred shares (6.8)  (6.8) Issuance of participating shares 0.5  0.2 Participating share redemptions (17.3)  - Bond forward contract -  (6.0) Cash flows from the financing of continuing operations (182.2)  (251.5)      Effect of exchange rate changes on cash denominated in foreign currencies 0.2  0.3      Net change in cash (58.2)  38.7Cash at beginning of year 75.0  36.3Cash at end of year$16.8 $75.0      Non-cash investing and financing activities      Net change in capital asset acquisitions financed by accounts payable$2.7 $(14.2)Cash includes an amount from discontinued operations of $4.4 million as at November 1, 2010.     SOURCE: TRANSCONTINENTAL INC.For further information: Media Nathalie St-Jean Senior Advisor, Corporate External Communications TC Transcontinental Telephone : 514 954-3581 nathalie.st-jean@tc.tc www.tc.tc Financial Community Jennifer F. McCaughey Senior Director, Investor Relations and Financial Communications TC Transcontinental Telephone : 514 954-2821 jennifer.mccaughey@tc.tc www.tc.tc