Canadian printing and media company Transcontinental Inc. said Wednesday its net earnings were unchanged at $27.9 million in the first quarter despite a 4% increase in revenues.
The Montreal-based company earned 32 cents per share for the period ended Jan. 31, the same as a year ago when it absorbed a two cents per share loss from discontinued operations.
Transcontinental paid $1.7 million in dividends on preferred shares in the first quarter of 2011, reducing its net income applicable to participating shares to $26.2 million.
Excluding impairment of assets and restructuring costs, adjusted net income increased by 10% to $29.9 million from $27.1 million a year earlier.
Adjusted operating income increased 5% to $49.8 million, from $47.3 million as revenues, representing the seventh consecutive quarter of year over year growth.
Transcontinental said its revenues increased 4% to $530.1 million due to new printing contracts, including The Globe and Mail.
Organic revenue grew by 3% excluding factors such as acquisitions, closures, the exchange rate and newsprint costs.
Chief executive Francois Olivier said the organic revenue growth reflected Transcontinental’s strategy of strengthening its existing assets and developing new digital products and services.
Free cash flow from operations increased 9% to $70.2 million and capital expenditures decreased to $20.7 million from $62.7 million.
Transcontinental is the largest printer in Canada and Mexico, and fourth-largest in North America. It also publishes daily and community newspapers, magazines and offers content through more than 250 websites.
It has 10,500 employees in Canada, the United States and Mexico, and reported revenues of $2.1 billion in 2010.
