Transcontinental posts loss on tax provision
(Reuters) - Transcontinental Inc (TCLa.TO: Quote) posted a first-quarter loss on a tax provision, but Canada's biggest commercial printer raised its quarterly dividend by 7 percent.
The company said net loss applicable to participating shares was C$33.3 million ($33.52 million), or 41 Canadian cents a share, compared with a net income applicable to participating shares of C$25.7 million, or 32 Canadian cents a share, a year ago.
On an adjusted basis, the company earned 33 Canadian cents a share.
Revenue fell 4 percent to C$495.9 million, hurt mainly by the sale of its black and white book printing business.
The fall in net income was mainly due to a tax provision of C$58 million related to notices of reassessment, the company said in a statement.
Transcontinental also increased its quarterly dividend by 7 percent to 14.5 Canadian cents per class A subordinate voting shares and class B shares.
The company, which also publishes magazines, community newspapers and French-language educational resources, has been hit by a broader slump in Canadian advertising spending.
The company also swapped assets with Quad/Graphics Inc (QUAD.N: Quote) last year, getting rid of Mexican printing presses and bolstering its Canadian capabilities.
Transcontinental inked a four-year deal to double its marketing for Canadian Tire Corp (CTC.TO: Quote) starting in January, and has printed the Globe and Mail newspaper since late 2010.
Shares of Montreal, Quebec-based Transcontinental closed at C$12.88 on Monday on the Toronto Stock Exchange. ($1 = 0.9935 Canadian dollars) (Reporting by Alastair Sharp in Toronto and Shounak Dasgupta in Bangalore; Editing by Sriraj Kalluvila)
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