Transcontinental Q2 boosted by end of contract to print San Francisco Chronicle

MONTREAL _ Transcontinental Inc. says its second-quarter profit was up nearly 50 per cent from a year-earlier, mainly as a result of accelerated revenue from a long-term printing contract that was ended prematurely by Hearst.

The Montreal-based printing and packaging company says its net income was $68.9 million, 89 cents per share and revenue was $534.7 million.

Adjusted earnings were also up year-over-year but by a less substantial 6.1 per cent, rising to $45.1 million from $42.5 million. Adjusted earnings per share were 58 cents.

Analysts had estimated earnings of 56 cents per share, according to Thomson Reutres Eikon.

The company says the quarter included an accelerated recognition of deferred revenue related to a December 2017 agreement with Hearst, which decided to bring printing of the San Francisco Chronicle back in-house.

A year earlier, Transcontinental’s net income was $46.4 million or 60 cents per share and revenue was $498.7 million.