Montreal, February 20, 2008 – As announced
last September, François Olivier today officially became
president and chief executive officer of Transcontinental
at its annual shareholders’ meeting. He is taking over
from Luc Desjardins, who is leaving the company after eight
years of loyal and productive service.
Rémi Marcoux, founder and executive chairman of the
board, thanked Luc Desjardins for his contribution: “Luc
successfully guided Transcontinental through an important
stage in its growth. Since 2000, Transcontinental’s
performance has been a remarkable achievement, and I wish
to personally thank him today, as well as on behalf of the
board of directors.”
François Olivier joined Transcontinental in 1993
and rose through the ranks, exceeding expectations every step
of the way. He has become particularly known in recent years
for developing the newspaper outsourcing model for North America,
a future growth segment for Transcontinental. Mr. Olivier
was appointed following a rigorous selection process headed
by the independent members of the board, under the guidance
of senior director J.V. Raymond Cyr.
“François has an impressive track record with
Transcontinental,” Mr. Marcoux said. “He is an
entrepreneur and innovator who puts growth front and centre
and he has excellent credibility throughout the organization.
Because we have a strong management team, we were able to
identify an internal successor, in this instance a member
of my family, which guarantees the continuity and stability
that are so crucial in today’s economy.”
Growth-focused annual meeting
Corporation spokespeople told the some 400 shareholders,
business partners and executives present at the meeting just
how well positioned Transcontinental is to keep growing.
First, Rémi Marcoux pointed out that Transcontinental
has the strategy, solid financial base and leadership to continue
to grow and to win in the printing and media industries. He
touched on the company’s niche-based strategy, which
means “not being the biggest but being the best in each
of our niches,” its disciplined financial management,
which makes it possible for it to play an active role in the
current consolidation of the printing industry, as well as
a mobilizing business project that “shows that at Transcontinental,
it’s the people who make the difference.”
He added: “Transcontinental earns more than a quarter
of its revenues and slightly more than 40% of its profits
from its Media sector. Our strong brands in both magazines
and newspapers have brought us exceptional awareness in the
communities we serve and are an excellent lever for the development
of our digital offering.”
Luc Desjardins, for his part, delivered a personal message
to the guests present: “I have just finished eight fine
years at the head of Transcontinental and I am leaving with
a feeling of accomplishment. I am very confident that we will
achieve the financial objectives of Evolution 2010.
We have a business project, a technologically advanced company,
a solid financial foundation and the teams we need to keep
growing. The company is in good hands.”
François Olivier reviewed the main highlights of
2007 that he considers promising for the company’s future
growth. In addition to the launch of The Race Towards
Excellence, a mobilizing tool designed to impart the
corporation’s vision and strategy to its 15,000 employees,
he reviewed the four issues of Evolution 2010: talent,
sales growth, efficiency and digital.
In his words, the “Race Towards Excellence
is like a training program aimed at getting each Transcontinental
business unit to strive for continuous improvement. By measuring
ourselves against the best in each area of activity, we will
create the conditions that will lead us to excellence.”
Among the year’s highlights, he mentioned the acquisition
of PLM Group, a Canadian leader in direct marketing; winning
the contracts to print Rogers’ magazines and the San
Francisco Chronicle; the launch of More magazine;
the launch (lebelage.ca)
or revamping of websites tied to Transcontinental’s’
magazines (lesaffaires.com,
canadianliving.com
and thehockeynews.com);
the planned investment of $60 million to make Transcontinental
Transmag one of the most modern newspaper printing plants
in the world; and the renewal of Transcontinental’s
commitment to protect the environment.
Mr. Olivier continued, saying “our growth in the years
ahead will be based in part on our ability to integrate and
develop new, non-print related growth platforms that will
help our existing customers optimize their marketing dollar.
At the same time, we will be active participants in the consolidation
of the printing and publishing industries. The keystone will
continue to be our close proximity to our customers, our business
credibility and our reputation.”
Lastly, Benoît Huard, vice president and chief financial
officer, put Transcontinental’s financial results into
perspective, showing that Transcontinental did well in 2007
and is in a good position to keep growing. He noted the following:
organic growth of revenue reached 4.4 % in the fourth quarter;
excluding the impact of the exchange rate, adjusted net earnings
per share increased 11%, slightly more than the Evolution
2010 target; the cumulative impact of the exchange rate
over the past five years, which reduced net earnings by $51 million,
or $0.57 per share; the Corporation’s enviable financial
position, generating $240 million in cash flow from operations
in 2007 and a net funded debt to total capitalization ratio
of 29%.
Mr. Huard concluded by noting that “this solid financial
position allowed us to invest $130 million in fixed assets
and more than $130 million in acquisitions, including
PLM Group. In addition, we increased our dividend for the
fifth consecutive year and bought back 2.5 million shares,
worth $53 million dollars. Our disciplined financial
management and ability to generate cash flow from operations
gives us the means to pursue our growth.”
About Transcontinental
The largest printer in Canada and sixth-largest
in North America, Transcontinental is also the country’s
leading publisher of consumer magazines and French-language
educational resources, and its second-largest community newspaper
publisher. Transcontinental distinguishes itself by creating
strategic partnerships that integrate the company into its
customers’ value chain, notably through its unique newspaper
printing outsourcing model and its value-added services. From
mass to highly personalized marketing, the company offers
its clients integrated solutions which include a continent-leading
direct marketing offering, a diverse digital platform and
a door-to-door advertising material distribution network.
Transcontinental is a company whose values, including respect,
innovation and integrity, are central to its operation.
Transcontinental (TSX: TCL.A, TCL.B) has approximately 15,000
employees in Canada, the United States and Mexico, and reported
revenues of C$2.3 billion in 2007.
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For information:
Media
Nessa Prendergast
Director, Media Relations
Transcontinental Inc.
Telephone: (514) 954 2809
nessa.prendergast@transcontinental.ca
Financial Community
Jennifer F. McCaughey
Director, Investor Relations
Transcontinental Inc.
Telephone: (514) 954 2821
jennifer.mccaughey@transcontinental.ca |
