Transcontinental Inc. second quarter: revenues increase 6% and renews multi-year agreements valued at over $1.5 billion in revenues
____________________________________________________________________ |(in millions of dollars, | | | | YTD | YTD | | |except per share data) | Q2-12 |Q2-11 | % | Q2-12 | Q2-11 | % | |_________________________|_______|______|____|________|________|____| |Revenues | $529.4|$498.7| 6%|$1,025.3|$1,013.5| 1%| |_________________________|_______|______|____|________|________|____| |Adjusted operating income| | | | | | | |(1) | 55.8| 60.2|(7%)| 98.8| 108.9|(9%)| |_________________________|_______|______|____|________|________|____| |Adjusted net income | | | | | | | |applicable to | | | | | | | |participating shares(2) | 35.4| 39.1|(9%)| 62.5| 67.9|(8%)| |_________________________|_______|______|____|________|________|____| |Per share | 0.44| 0.48|(8%)| 0.77| 0.84|(8%)| |_________________________|_______|______|____|________|________|____| |Net income applicable to |(106.2)| 32.7| ---| (139.5)| 58.4| ---| |participating shares | | | | | | | |_________________________|_______|______|____|________|________|____| |Per share | (1.31)| 0.40| ---| (1.72)| 0.72| ---| |_________________________|_______|______|____|________|________|____|
Notes 1 and 2 please refer to the table “Reconciliation of Non-IFRS
financial measures” in this press release.
-- Renewed and expanded six multi-year agreements valued at over $1.5 billion in revenues with major Canadian retail customers. -- Closed the transaction for the indirect acquisition of the shares of Quad/Graphics Canada, Inc. and rapidly announced the reorganization of its print operations across Canada. The integration is on track to deliver more than $40 million in synergies as expected. -- Continued to develop its digital and interactive business by expanding its digital advertising representation deals and acquiring a majority stake in Redux Media, a leading online advertising network. -- Launched a television production house.
MONTREAL, June 7, 2012 /CNW Telbec/ – Transcontinental Inc. (TSX: TCL.A
TCL.B TCL.PR.D) increased its revenues by 6% in the second quarter,
from $498.7 million to $529.4 million, driven primarily by the
acquisition of Quad/Graphics Canada, Inc. as well as numerous
acquisitions and launches of community newspapers in Quebec, and new
contracts such as Canadian Tire. This growth was mitigated primarily by
the sale of its black and white book printing business, destined for
U.S. exports, to Quad/Graphics last September and by lower volume from
the non-recurring revenue from the printing contract for the Canadian
Census last year. Excluding acquisitions, divestitures and closures,
the impact of the exchange rate and the paper component variance,
organic revenue growth was essentially flat.
For this same period, adjusted operating income decreased 7%, from $60.2
million to $55.8 million, driven primarily by a new provincial
legislation in Quebec under Bill 88 that imposes greater recycling fees
on publishers, lower volume from the non-recurring revenue from the
printing contract for the Canadian Census last year and lower volume
from its educational book publishing group due to the end of the school
reform in Quebec. This decrease was partially offset by synergies from
the use of its most productive assets. Net income applicable to
participating shares decreased from $32.7 million, or $0.40 per share,
to a loss of $106.2 million, or $1.31 per share. This decrease is
mainly due to an impairment of assets of $180.0 million, in the
newspaper and magazine activities of the Media sector, which is
non-cash and non-operational. Excluding unusual items and discontinued
operations, adjusted net income applicable to participating shares
decreased 9%, from $39.1 million, or $0.48 per share, to $35.4 million,
or $0.44 per share.
“Our second quarter results are in line with our strategy to strengthen
our existing assets and develop our new media and marketing services.
We are in the process of integrating our Quad/Graphics Canada, Inc.
acquisition and we are on track to generate more than $40 million in
synergies and therefore become even more efficient. We also secured a
large part of our cash flow for the coming years by renewing six
multi-year agreements valued at over $1.5 billion in revenues with
major Canadian retail customers for both existing and new services.
These agreements are a testament to the strength of our customer
relationships and the confidence they have in our ability to execute
their integrated marketing communication programs, to the quality of
our state-of-the-art national printing platform and of our flyer
distribution network, the reach of our national media properties and
the success of our strategy to expand our product and service offering
into new marketing and communication services. In addition, we
continued to develop our offering of products and services by expanding
our digital advertising representation house, with the acquisition of a
majority stake in Redux Media, and by launching a television production
Financially speaking, we continue to generate strong cash flow and have
a solid financial position with a net debt to EBITDA ratio at 1.43x at
the end of the quarter. For the balance of the year, we expect our
results to ramp up, especially in the fourth quarter, as the previously
announced synergies start to benefit our results in a more meaningful
way. Therefore, we are very well positioned to continue to transform TC
Transcontinental to meet our customers’ evolving marketing needs,” said
FranÃ§ois Olivier, President and Chief Executive Officer.
Financial Highlights of the Quarter
-- As at April 30, 2012, the adjusted net indebtedness ratio was 1.43x, as compared to 1.42x as at January 31, 2012. -- Transcontinental Inc. put in place a new $400 million five-year Unsecured Revolving Credit Facility that expires in February 2017. The current credit facility will remain in place until its expiry in September 2012 but has been reduced to $200 million. -- Transcontinental Inc. put in place a normal course issuer bid. It has been authorized to purchase for cancellation on the open market, between April 13, 2012 and April 12, 2013 up to 5% of its Class A Subordinate Voting Shares and Class B Shares. The program was not used as at April 30, 2012.
For more detailed financial information, please see Management’s Discussion and Analysis for the second quarter ended April
30, 2012 and the complete financial statements on our website at www.tc.tc, under “Investors.”
Operating Highlights of the Quarter
-- Renewed and expanded, since January 2012, six multi-year agreements valued at over $1.5 billion in revenues with major Canadian retail customers in the food, hardware, general merchandise and pharmaceutical verticals. These agreements have been extended for periods varying from three to six years and besides printing, include flyer distribution through Publisac in Quebec and often include many other products and services from the Corporation's new marketing and media services, such as digital advertising representation, e-flyers, email marketing, mobile solutions, database analytics, premedia and custom communications. -- Closed the transaction for the indirect acquisition of the shares of Quad/Graphics Canada, Inc. and rapidly announced the reorganization of its print operations across Canada. About half of the Quad/Graphics' Canada, Inc. facilities have been closed so far. The integration is on track to deliver more than $40 million in synergies as expected. -- Recent management changes: On February 16th, Remi Marcoux stepped down as Executive Chairman of the Board and Isabelle Marcoux was elected Chair of the Board; on February 2nd, Alain Gignac was appointed Chief Marketing Activation Officer, a new senior management position with responsibility for the integration of print product and services, print and digital media, and interactive marketing solutions for major accounts; on May 9th, Natalie LariviÃ¨re resigned as President of TC Media, effective end of June. -- Expanded its digital advertising representation by signing numerous deals and partnerships with Cinoche.com, PoolExpert®, Hearst Digital Media and Homes Publishing Group as well as acquiring a majority stake in Redux Media, a leading online advertising network. TC Transcontinental now reaches over 18.7 million unique monthly visitors per month in Canada or two thirds of all online Canadians, through more than 3,500 websites. -- Launched a television production house to create content for all communication platforms, from TV channels for general consumption to new Internet and mobile media for on-demand delivery. Also launched FRESH JUICE, a new healthy living media brand in collaboration with Loblaw Companies Limited. -- Broadened its extensive community newspaper network in Quebec by acquiring Ã‰dition Beauce and Courrier Frontenac and strengthened its position as the leader in the supplemental educational publishing market in Quebec by the acquisition of the shares of Les Ã‰ditions CaractÃ¨re. -- Launched its third Sustainability Report, based on the Global Reporting Initiative (GRI), an international standard for sustainability methodology. The Report meets Application Level B of the GRI standard. The full web report, a downloadable pdf as well as a highlights brochure are all available at www.tctranscontinental-ecodev.com.
Highlights for the Six-month Period
For the first six-month period of fiscal 2012, Transcontinental’s
revenues increased 1%, from $1,013.5 million to $1,025.3 million. This
increase was driven primarily by the acquisition of Quad/Graphics
Canada, Inc. and numerous acquisitions and launches of community
newspapers in Quebec. This growth was mitigated primarily by the sale
of its black and white book printing business, destined for U.S.
exports, to Quad/Graphics last September and lower volume from the
non-recurring revenue from the printing contract for the Canadian
Census last year. Adjusted operating income decreased 9%, from $108.9
million to $98.8 million. This decrease was primarily due to the
non-recurrence of the Canadian Census contract, margin erosion from
competitive pressures in the local solutions marketplace and new
provincial legislation in Quebec under Bill 88 that imposes greater
recycling fees on publishers. Net income applicable to participating
shares decreased from $58.4 million, or $0.72 per share, to a loss of
$139.5 million, or $1.72 per share. This decrease is mainly due to an
impairment of assets of $180.8 million, which is non-cash and
non-operational and to notices of re-assessment received from the
federal and provincial tax authorities last February, totaling $58
million, for which the Corporation is currently contesting. Excluding
unusual items and discontinued operations, adjusted net income
applicable to participating shares decreased 8%, from $67.9 million, or
$0.84 per share, to $62.5 million, or $0.77 per share.
Reconciliation of Non-IFRS Financial Measures
Financial data have been prepared in conformity with IFRS. However,
certain measures used in this press release do not have any
standardized meaning under IFRS and could be calculated differently by
other companies. We believe that many readers analyze our results based
on certain non-IFRS financial measures because such measures are more
appropriate for evaluating the Corporation’s operating performance.
Internally, Management uses such non-IFRS financial information as an
indicator of business performance, and evaluates management’s
effectiveness with specific reference to these indicators. These
measures should be considered in addition to, not as a substitute for
or superior to, measures of financial performance prepared in
accordance with IFRS.
The following table reconciles IFRS financial measures to non-IFRS
Reconciliation of Non-IFRS financial measures
Three months ended April 30 Six months ended April 30 (in millions of dollars, except per share amounts) 2012 2011 2012 2011 Net income (loss) applicable to participating shares $ (106.2) $ 32.7 $ (139.5) $ 58.4 Dividends on preferred shares 1.7 1.7 3.4 3.4 Net loss (income) related to discontinued operations (after tax) 1.3 (0.7) 1.3 (1.3) Non-controlling interest 0.2 0.5 0.2 0.8 Unusual adjustments to income taxes - - 42.0 - Income tax expenses (10.0) 7.4 (4.4) 13.1 Expenses related to long-term debt prepayment - 5.8 - 5.8 Financial expenses related to unusual adjustments to income taxes - - 16.0 - Financial expenses 6.1 8.7 13.8 19.5 Gain on business acquisition (31.7) - (31.7) - Impairment of assets 180.0 - 180.8 3.5 Restructuring and integration expenses and acquisition costs 14.4 4.1 16.9 5.7 Adjusted operating income $ 55.8 $ 60.2 $ 98.8 $ 108.9 Amortization 28.3 30.0 57.2 61.0 Adjusted operating income before amortization $ 84.1 $ 90.2 $ 156.0 $ 169.9 Net income (loss) applicable to participating shares $ (106.2) $ 32.7 $ (139.5) $ 58.4 Net loss (income) from discontinued operations (after tax) 1.3 (0.7) 1.3 (1.3) Unusual adjustments to income taxes (after tax) - - 42.0 - Expenses related to long-term debt prepayment (after tax) - 4.2 - 4.2 Financial expenses related to unusual adjustments to income taxes (after tax) - - 16.0 - Gain on business acquisition (after tax) (31.7) - (31.7) - Impairment of assets (after tax) 162.1 - 162.7 2.5 Restructuring and integration expenses and acquisition costs (after tax) 9.9 2.9 11.7 4.1 Adjusted net income applicable to participating shares $ 35.4 $ 39.1 $ 62.5 $ 67.9 Average number of participating shares outstanding 81.1 81.0 81.0 81.0 Adjusted net income applicable to participating shares per share $ 0.44 $ 0.48 $ 0.77 $ 0.84 As at As at April30, October 31, 2012 2011 Long-term debt $ 210.4 $ 292.5 Current portion of long-term debt 325.1 271.9 Cash and cash equivalents (22.2) (75.0) Net indebtedness $ 513.3 $ 489.4 Amount to be paid to Quad/Graphics following the closing of the transaction to acquire the shares of Quad/Graphics Canada - 50.0 Adjusted net indebtedness $ 513.3 $ 539.4 Adjusted operating income before amortization (last 12 months) $ 359.5 $ 373.4 Net indebtedness ratio 1.43x 1.31x Adjusted net indebtedness ratio 1.43x 1.44x
At its June 7, 2012 meeting, the Corporation’s Board of Directors
declared a quarterly dividend of $0.145 per Class A Subordinate Voting
Shares and Class B Shares. This dividend is payable on July 20, 2012 to
participating shareholders of record at the close of business on July
3, 2012. On an annual basis, this represents a dividend of $0.58 per
share. Furthermore, at the same meeting, the Board also declared a
quarterly dividend of $0.4196 per share on cumulative 5-year rate reset
first preferred shares, series D. This dividend is payable on July 16,
2012. On an annual basis, this represents a dividend of $1.6875 per
Upon releasing its second quarter results, Transcontinental Inc. will
hold a conference call for the financial community today at 4:15 p.m.
The dial-in numbers are (514) 807-9895 or (647) 427-7450 or
1-888-231-8191 and the access code is: 86629492#. Media may hear the
call in listen-only mode or tune in to the simultaneous audio broadcast
on the Corporation’s Web site, which will then be archived for 30 days.
For media requests for information or interviews, please contact Nancy
Bouffard, Director, Internal and External Communications of TC
Transcontinental, at 514 954-2809.
TC Transcontinental creates marketing products and services that allow
businesses to attract, reach and retain their target customers. The
Corporation is the largest printer in Canada and the fourth-largest in
North America. As the leading publisher of consumer magazines and
French-language educational resources, and of community newspapers in
Quebec and the Atlantic provinces, it is also one of Canada’s major
media groups. TC Transcontinental is also the leading door-to-door
distributor of advertising material in Canada through its Publisac
network in Quebec and Targeo in the rest of Canada. Thanks to a wide
digital network of more than 3,500 websites, the Corporation reaches
over 18.7 million unique visitors per month in Canada.
TC Transcontinental also offers interactive marketing products and
services that use new communication platforms supported by marketing
strategy and planning services, database analytics, premedia, e-flyers,
email marketing, custom communications and mobile solutions.
Transcontinental Inc. (TSX: TCL.A, TCL.B, TCL.PR.D), known by the brands
TC Transcontinental, TC Media and TC Transcontinental Printing, has
approximately 11,000 employees in Canada and the United States, and
reported revenues of C$2.0 billion in 2011. For more information about
the corporation, please visit www.tc.tc
This press release contains certain forward-looking statements
concerning the future performance of the Corporation. Such statements,
based on the current expectations of management, inherently involve
numerous risks and uncertainties, known and unknown. We caution that
all forward-looking information is inherently uncertain and actual
results may differ materially from the assumptions, estimates or
expectations reflected or contained in the forward-looking information,
and that actual future performance will be affected by a number of
factors, many of which are beyond the Corporation’s control, including,
but not limited to, the economic situation, structural changes in its
industries, exchange rate, availability of capital, energy costs,
increased competition, as well as the Corporation’s capacity to engage
in strategic transactions and integrate acquisitions into its
activities. The risks, uncertainties and other factors that could
influence actual results are described in the Management’s Discussion and Analysis (MD&A) for the fiscal year ended on October 31(st), 2011 and in the Annual Information Form and have been updated in the MD&A for the second quarter ended April 30(th), 2012.
The forward-looking information in this release is based on current
expectations and information available as at June 7, 2012. The
Corporation’s management disclaims any intention or obligation to
update or revise any forward-looking statements unless otherwise
required by the Securities Authorities.
CONSOLIDATED STATEMENTS OF INCOME(LOSS) Unaudited Three months ended Six months ended April 30 April 30 (in millions of Canadian 2012 2011 2012 2011 dollars, except per share data) Revenues $ 529.4 $ 498.7 $ 1,025.3 $ 1,013.5 Operating expenses 445.3 408.5 869.3 843.6 Restructuring, 14.4 4.1 16.9 5.7 integration and acquisition costs Impairment of assets 180.0 - 180.8 3.5 Gain on business (31.7) - (31.7) - acquisition Operating income (loss) (78.6) 86.1 (10.0) 160.7 before amortization Amortization 28.3 30.0 57.2 61.0 Operating income (loss) (106.9) 56.1 (67.2) 99.7 Financial expenses 6.1 14.5 29.8 25.3 Income (loss) before (113.0) 41.6 (97.0) 74.4 income taxes Income taxes (recovered) (10.0) 7.4 37.6 13.1 Net income (loss) from (103.0) 34.2 (134.6) 61.3 continuing operations Net income (loss) from (1.3) 0.7 (1.3) 1.3 discontinued operations Net income (loss) (104.3) 34.9 (135.9) 62.6 Non-controlling interests 0.2 0.5 0.2 0.8 Net income (loss) (104.5) 34.4 (136.1) 61.8 attributable to shareholders of the Corporation Dividends on preferred 1.7 1.7 3.4 3.4 shares, net of related taxes Net income (loss) $ (106.2) $ 32.7 $ (139.5) $ 58.4 attributable to participating shares Net income (loss) per participating share - basic and diluted Continuing operations $ (1.29) $ 0.39 $ (1.70) $ 0.70 Discontinued operations (0.02) 0.01 (0.02) 0.02 $ (1.31) $ 0.40 $ (1.72) $ 0.72 Weighted average number of shares outstanding - 81.0 81.0 81.0 81.0 basic (in millions) Weighted average number of shares outstanding - 81.0 81.1 81.0 81.1 diluted (in millions) CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Unaudited Three months ended Six months ended April 30 April 30 (in millions of Canadian 2012 2011 2012 2011 dollars) Net income (loss) $ (104.3) $ 34.9 $ (135.9) $ 62.6 Other comprehensive income (loss) Items that will be reclassified to net income (loss): Net change related to cash flow hedges Net change in the (0.4) 4.9 (1.6) 5.3 fair value of derivatives designated as cash flow hedges Reclassification of the net change in the fair value of derivatives designated as cash flow hedges in prior periods, recognized in net income (loss) during the period 2.3 (3.1) 4.9 (1.6) Related income taxes 1.2 0.5 2.8 1.2 0.7 1.3 0.5 2.5 Cumulative translation differences Net losses on the (0.6) (3.8) (0.1) (5.5) translation of the financial statements of self-sustaining foreign operations Items that will not be reclassified to net income (loss): Changes in actuarial gains and losses of defined benefit pensionplans Actuarial gains and (14.7) (11.1) (30.3) 11.4 losses of defined benefit pension plans Related income taxes (3.9) (3.0) (8.8) 3.0 (10.8) (8.1) (21.5) 8.4 Other comprehensive (10.7) (10.6) (21.1) 5.4 income(loss) Comprehensive income $ (115.0) $ 24.3 $ (157.0) $ 68.0 (loss) Attributable to: Shareholders of the $ (115.2) $ 23.8 $ (157.2) $ 67.2 Corporation Non-controlling 0.2 0.5 0.2 0.8 interests $ (115.0) $ 24.3 $ (157.0) $ 68.0
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Unaudited (in millions of Canadian dollars) Attributable to shareholders of the Corporation Accumulated other Share Contributed Retained comprehensive Non-controlling Total capital surplus earnings income (loss) Total interests equity Balance as at $ 478.1 $ 1.8 $ 754.1 $ (28.1) $ 1,205.9 $ 0.8 $ 1,206.7 October 31, 2011 Net income - - (136.1) - (136.1) 0.2 (135.9) (loss) Other - - - (21.1) (21.1) - (21.1) comprehensive loss Shareholders' contributions anddistributions toshareholders Exercise of 0.3 - - - 0.3 - 0.3 stock options Dividends - - (26.1) - (26.1) - (26.1) Stock-option - 0.4 - - 0.4 - 0.4 based compensation Balance as at $ 478.4 $ 2.2 $ 591.9 $ (49.2) $1,023.3 $ 1.0 $ 1,024.3 April 30, 2012 Balance as at $ 477.9 $ 1.1 $ 673.1 $ (4.5) $ 1,147.6 $ 0.8 $ 1,148.4 November 1, 2010 Net income - - 61.8 - 61.8 0.8 62.6 Other - - - 5.4 5.4 - 5.4 comprehensive income Shareholders' contributions anddistributions toshareholders Exercise of 0.2 - - - 0.2 - 0.2 stock options Dividends - - (21.2) - (21.2) (0.8) (22.0) Stock-option - 0.3 - - 0.3 - 0.3 based compensation Balance as at $ 478.1 $ 1.4 $ 713.7 $ 0.9 $ 1,194.1 $ 0.8 $ 1,194.9 April 30, 2011
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION Unaudited Asat As at April 30, October 31, (in millions of Canadian dollars) 2012 2011 Current assets Cash and cash equivalents $ 22.2 $ 75.0 Accounts receivable 419.1 436.3 Income taxes receivable 7.1 14.7 Inventories 85.6 80.2 Prepaid expenses and other current assets 14.7 18.3 548.7 624.5 Property, plant and equipment 688.7 690.6 Intangible assets 186.0 149.6 Goodwill 511.4 682.5 Deferred income taxes 286.8 197.7 Other assets 28.1 20.2 $ 2,249.7 $ 2,365.1 Current liabilities Accounts payable and accrued liabilities $ 266.1 $ 293.5 Provisions 20.4 10.7 Income taxes payable 88.7 33.5 Deferred subscription revenues and deposits 32.0 32.5 Current portion of long-term debt 325.1 271.9 732.3 642.1 Long-term debt 210.4 292.5 Deferred income taxes 117.9 127.2 Provisions 10.3 8.7 Other liabilities 154.5 87.9 1,225.4 1,158.4 Equity Share capital 478.4 478.1 Contributed surplus 2.2 1.8 Retained earnings 591.9 754.1 Accumulated other comprehensive loss (49.2) (28.1) Attributable to shareholders of the 1,023.3 1,205.9 Corporation Non-controlling interests 1.0 0.8 1,024.3 1,206.7 $ 2,249.7 $ 2,365.1
CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited Three months ended Six months ended April 30 April 30 (in millions of Canadian 2012 2011 2012 2011 dollars) Operating activities $ (104.3) $ 34.9 $ $ 62.6 Net income (loss) (135.9) Less: Net income (loss) (1.3) 0.7 (1.3) 1.3 from discontinued operations Net income (loss) from (103.0) 34.2 (134.6) 61.3 continuing operations Adjustments to reconcile net income (loss) from continuing operations and cash flows from operating activities: Amortization 34.4 37.1 68.2 73.9 Impairment of assets 180.0 - 180.8 3.5 Gain on business (31.7) - (31.7) - acquisition Financial expenses on 6.4 8.1 13.3 18.2 long-term debt Interest on tax - - 16.0 - contingencies Expenses related to - 5.8 - 5.8 long-term debt prepayment Net loss (gain) on 0.1 (0.3) (0.3) (0.3) disposal of assets Income taxes (10.0) 7.4 37.6 13.1 (recovered) Stock-option based 0.2 0.1 0.4 0.3 compensation Gain on pension plans (3.5) - (3.5) - curtailment Other (3.1) (0.3) (2.5) (2.0) Cash flows generated by operating activities before changes in non-cash operating items and income tax paid 69.8 92.1 143.7 173.8 Changes in non-cash (28.1) (8.4) (44.4) (21.1) operating items Income tax paid (2.1) (16.6) (4.4) (23.1) Cash flows from 39.6 67.1 94.9 129.6 continuing operations Cash flows from - 0.3 - - discontinued operations 39.6 67.4 94.9 129.6 Investing activities Business acquisitions (57.8) (0.6) (57.8) (5.4) Acquisitions of (8.6) (8.0) (16.9) (28.5) property, plant and equipment Disposals of property, 0.1 0.5 0.5 0.6 plant and equipment Increase in intangible (4.8) (3.2) (9.5) (8.1) assets and other assets Cash flows from (71.1) (11.3) (83.7) (41.4) investments in continuing operations Cash flows from - (0.4) - (0.8) investments in discontinued operations (71.1) (11.7) (83.7) (42.2) Financing activities Reimbursement of (73.1) (100.8) (81.2) (108.1) long-term debt Increase in revolving 89.9 24.5 55.8 31.0 term credit facility Financial expenses on (6.3) (8.2) (12.6) (16.1) long-term debt Expenses related to - (3.4) - (3.4) long-term debt prepayment Dividends on (11.8) (8.9) (22.7) (17.8) participating shares Dividends on preferred (1.7) (1.7) (3.4) (3.4) shares Issuance of 0.2 0.1 0.3 0.2 participating shares Bond forward contract - - - (6.0) Cash flows from the (2.8) (98.4) (63.8) (123.6) financing of continuing operations Effect of exchange rate changes on cash and cash equivalentsdenominated in foreign currencies (0.3) (0.5) (0.2) (0.8) Decrease in cash and cash (34.6) (43.2) (52.8) (37.0) equivalents Cash and cash equivalents 56.8 42.5 75.0 36.3 at beginning of period Cash and cash equivalents $ 22.2 $ (0.7) $ 22.2 $ (0.7) (bank overdraft) at end of period Non-cash investing and financing activities Net change in capital $ 0.3 $ (0.4) $ (2.2) $ (14.0) asset acquisitions financed by accounts payable
SOURCE TRANSCONTINENTAL INC.