In This Article:
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Revenue: $749.3 million for Q4, a 3.9% decrease year-over-year.
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Adjusted EBITDA: $142.2 million for Q4; $469.4 million for the full fiscal year, a 5.1% increase from the previous year.
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Adjusted Earnings Per Share (EPS): $0.79 for Q4; $2.34 for the full fiscal year, a 15.3% increase from fiscal 2023.
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Packaging Sector Revenue: $415.7 million for Q4, a 1.2% decrease year-over-year.
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Packaging Sector Adjusted EBITDA: $65.7 million for Q4, a 6.5% increase year-over-year; $262.2 million for the full fiscal year, a 14.2% increase from fiscal 2023.
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Retail Services and Printing Sector Revenue: $288.3 million for Q4, a 7.4% decrease year-over-year.
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Retail Services and Printing Sector Adjusted EBITDA: $63.6 million for Q4, a 4.1% increase year-over-year; $201 million for the full fiscal year.
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Cash Flow from Operating Activities: $185 million for Q4.
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Capital Expenditures (CapEx): $24.2 million for Q4; $121.5 million for the full fiscal year.
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Net Debt Ratio: Improved to 1.71 times at the end of the fiscal quarter.
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Sale of Industrial Packaging Operations: $95 million transaction announced, subject to working capital adjustment.
Release Date: December 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Transcontinental Inc (TCLAF) achieved a record adjusted EBITDA of $262 million in the packaging sector, marking a 14.2% increase over the previous year.
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The company successfully reduced costs and improved profitability, contributing to a 5.1% growth in adjusted EBITDA for the fiscal year 2024.
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The startup of the new BOP line in Spartanburg, South Carolina, went well, enhancing the company's recyclable packaging capabilities.
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Transcontinental Inc (TCLAF) achieved a 9% reduction in workplace accidents, improving their safety frequency rate to 1.0.
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The company generated over $30 million in recurring savings from its two-year profit improvement program, nearing its $40 million target.
Negative Points
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Revenues for the fourth quarter decreased by 3.9% to $749.3 million, primarily due to lower volumes in the main sectors.
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The Canada Post strike negatively impacted the distribution of printed flyers, resulting in an estimated $7 million profit impact.
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The packaging sector experienced a 1.2% revenue decrease in Q4, mainly due to continued weakness in the medical market.
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Pricing pressures are expected to offset volume growth in the packaging sector for fiscal 2025.
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The sale of industrial packaging operations, while strategic, resulted in a loss of a business segment that previously contributed to the company's revenue.