Torstar Corporation
TSX : TS.B

Torstar Corporation

November 04, 2009 06:30 ET

Torstar Corporation Reports Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Nov. 4, 2009) - 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:

 Third QuarterYear to Date
Net income (loss) per share 2008 ($0.01) $0.41
Changes    
 • Operations(0.06) (0.21) 
 • Restructuring and other charges0.02 (0.02) 
 • Loss from associated businesses(0.14) (0.62) 
 • Non-cash foreign exchange0.02 (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 
Net income (loss) per share 2009 $0.05 ($0.27)

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.

 Third QuarterYear to Date
(in $000's)20092008(2)20092008(2)
Newspapers and Digital$22,302$33,818$66,542$108,040
Book Publishing23,92419,89166,48656,891
Corporate(3,403)(4,389)(10,832)(13,086)
EBITDA, excluding restructuring and other charges
$42,823

$49,320

$122,196

$151,845

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 30December 31
20092008
    
Assets  
 Current:  
  Cash and cash equivalents$39,806$45,787
  Receivables222,340273,658
  Inventories33,62941,075
  Prepaid expenses58,80059,814
  Prepaid and recoverable income taxes13,40113,719
  Future income tax assets17,64225,716
    
 Total current assets385,618459,769
    
 Property, plant and equipment (net)274,420298,475
 Investment in associated businesses151,419201,571
 Intangible assets35,39334,667
 Goodwill579,099577,116
 Other assets145,802156,543
 Future income tax assets37,65850,592
    
 Total assets$1,609,409$1,778,733
    
Liabilities and Shareholders' Equity  
 Current:  
  Bank overdraft$7,227$4,425
  Accounts payable and accrued liabilities192,571238,600
  Income taxes payable18,93010,057
 Total current liabilities218,728253,082
    
 Long-term debt585,863668,700
 Other liabilities106,799119,827
 Future income tax liabilities66,74172,090
    
 Shareholders' equity:  
  Share capital391,581390,978
  Contributed surplus11,75511,018
  Retained earnings245,313288,934
  Accumulated other comprehensive loss(17,371)(25,896)
    
 Total shareholders' equity631,278665,034
    
 Total liabilities and shareholders' equity$1,609,409$1,778,733
 
 
Torstar Corporation
Consolidated Statements of  Income
(Dollars in Thousands)
(Unaudited)
Three months ended September 30 Nine months ended September 30
20092008 20092008
Operating revenue      
 Newspapers and digital $221,233$253,175 $685,396$774,691
 Book publishing 122,501118,124 371,078346,711
   $343,734$371,299 $1,056,474$1,121,402
Operating profit      
 Newspapers and digital $10,626$21,869 $30,952$71,710
 Book publishing 22,86318,659 63,14453,194
 Corporate (3,419)(4,405) (10,880)(13,135)
 Restructuring and other charges (1,056)(3,375) (30,761)(28,600)
   29,01432,748 52,45583,169
 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) 2399,170
 Investment loss and write-down  21  (2,398)
 Income (loss) before taxes 10,83722,466 (11,510)69,046
 Income and other taxes (6,800)(5,900) (10,200)(16,100)
 Income (loss) from continuing operations 4,03716,566 (21,710)52,946
 Discontinued operations  (17,314)  (20,533)
Net income (loss) $4,037($748) ($21,710)$32,413
        
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
  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.

Contact Information

  • Torstar Corporation
    D. Holland
    Interim President and Chief Executive Officer
    (416) 869-4776