TORONTO, ONTARIO -- (Marketwire) -- 01/31/13 -- Gateway Newstands, the largest operator of newstands in North America, today reiterated the superiority of its agreement to harmonize and extend its lease agreements for newstands, lotteries, cafes and bakeries with the Toronto Transit Commission (TTC) over a late, unsolicited bid from International News.
"Our deal is better in every way - and provides greater revenue to the TTC," said Michael Aychental, CEO of Gateway Newstands.
Aychental pointed out that the Gateway agreement actually amounts to $48.1-million, when an additional $6.4-million in cleaning costs, arranged by Gateway and paid by its suppliers directly to the TTC, is factored into the comparison.
The International bid in fact amounts to $42.87-million, when lost rental revenue to the TTC - due to transitional and construction costs that International would have to incur - is taken into account.
"In every respect," said Aychental, "the Gateway bid is far superior."
Aychental referred to a chart, which categorizes the major elements of the agreement, and compares Gateway's proven credibility with International's promises.
"The proof is there," said Aychental, "in black and white."
Gateway Newstands is the largest operator of newstands in North America, with more than 500 stores in transit - including subways, bus stations, train stations, other transit venues, office towers, shopping centres, hospitals, and other institutional venues. Where we are located, we pride ourselves on being a trusted and reliable partner.
GATEWAY REFUTES TRUE VALUE OF INTERNATIONAL OFFER
----------------------------------------------------------------------------CATEGORY GATEWAY INTERNATIONAL----------------------------------------------------------------------------Newstand Revenue $48.1 Million $46.2 Million ------------------------------------------------------------Breakdown Rent: $39.2 Million Unknown Signing Bonus: $1.5 Million Capital Improvements: $1.0 Million Contribution to Cleaning: $6.4 Million----------------------------------------------------------------------------Lost Revenue No Lost Revenue $1.3 Million-Loss of 2013/2014 Rent Revenue Increase $2.0 Million TTC Staff Estimate for conversion ------------------------------ $3.3 Million Lost Revenue----------------------------------------------------------------------------TOTAL REVENUE $48.1 Million $42.9 Million----------------------------------------------------------------------------For TTC Continued service-No Minimum two years for Customers inconvenience permitting, design, approval and construction - plenty of inconvenience----------------------------------------------------------------------------Experience 30 year old company with more 4 newstands in Vancouver Sky than 100 stores in the TTC, Train System; 2 in Chicago Go Transit, OC Transpo, VIA Transit Authority Rail and Chicago Transit Authority--more than 500 stores throughout North America----------------------------------------------------------------------------Continued Guarantees that all 65 No such Program Service outlets in the TTC will remain open, supported through volume rebate program----------------------------------------------------------------------------
Contacts:
Media Contact:
Noah Aychental
416-571-1253
