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TORONTO, ONTARIO -- (Marketwire) -- 03/06/13 -- Torstar Corporation (TSX: TS.B) today reported financial results for the fourth quarter ended December 31, 2012.
Highlights for the quarter:
-- Revenue was $395.7 million in the fourth quarter of 2012, down $29.6 million from $425.3 million in the fourth quarter of 2011. Excluding the impact of acquisitions and a decrease at TMGTV resulting from lower product sales, revenue was down $23.0 million (5.4%) in the fourth quarter.-- EBITDA (see "non-IFRS measures") was $64.6 million in the fourth quarter of 2012, down $16.6 million from $81.2 million in the fourth quarter of 2011. Media Segment EBITDA was down $12.5 million including the benefit of acquisitions. Book Publishing Segment EBITDA was down $4.4 million including a decline of $1.1 million from the impact of foreign exchange. Corporate expenses were $3.3 million, down $0.3 million from $3.6 million in 2011.-- Net income attributable to equity shareholders was $24.1 million ($0.30 per share) in the fourth quarter, down $40.2 million ($0.51 per share) from $64.3 million ($0.81 per share) last year.-- Adjusted earnings per share for the fourth quarter of 2012 (excluding restructuring and other charges, impairment of assets, non-cash foreign exchange, other income and gain on sale of assets) was $0.49 in the fourth quarter of 2012, down $0.21 from $0.70 in the fourth quarter of 2011.-- Net debt was $149.0 million at December 31, 2012, down $10.5 million from $159.5 million at September 30, 2012.Highlights for the year:-- Revenue was $1,485.7 million in 2012, down $63.1 million from $1,548.8 million in 2011. Excluding the impact of acquisitions and a decrease at TMGTV resulting from lower product sales, revenue was down $64.9 million (4.2%) in 2012.-- EBITDA was $207.7 million in 2012, down $34.5 million from $242.2 million in 2011. Media Segment EBITDA was down $27.0 million primarily as a result of lower print advertising revenues. Book Publishing Segment EBITDA was down $9.2 million including a decline of $1.7 million from the impact of foreign exchange. Corporate expenses were down $1.6 million in 2012 as a result of lower compensation costs and a mark-to- market adjustment of a share-based compensation hedging instrument.-- Net income attributable to equity shareholders was $103.2 million or $1.30 per share in 2012 down $114.5 million or $1.44 per share from $217.7 million or $2.74 per share in 2011. Excluding the impact of CTV Inc. in 2011, Torstar would have reported net income attributable to equity shareholders of $143.1 million or $1.80 per share in 2011.-- Net debt was $149.0 million at December 31, 2012, down $4.3 million from $153.3 million at December 31, 2011.
"Results in the quarter continue to be affected by industry challenges in our media operations and the current economic environment," said David Holland, President and CEO of Torstar Corporation. "EBITDA was down $16.6 million to $64.6 million with the Media and Book Publishing Segments both down in the quarter."
"In the Media operations, the softening of the print advertising environment which emerged in September continued through the fourth quarter and had a more significant impact on Star Media Group results. Revenue and earnings declines experienced in the quarter were more moderate at Metroland Media's community operations. A combination of weaker revenues, higher digital royalty rates and negative foreign exchange impact contributed to the decline in Harlequin results. An encouraging sign is that the quarter-to-quarter stability in the print and digital book publishing markets continued through the fourth quarter."
