Torstar Corporation Reports Fourth Quarter Results

TORONTO, Feb. 26, 2020 /CNW/ - Torstar Corporation (TSX:TS.B) today reported financial results for the fourth quarter ended December 31, 2019.

Highlights for the fourth quarter:

• We continued to make progress on the transformation of our business including digital subscription offerings, ending the year with almost 80,000 subscribers with digital access including almost 28,000 digital only subscribers to our Daily Brands news sites. We also have more than 200,000 registered users in our Daily Brands news sites.
  
  
• We now have over 280,000 registered users in the Community news sites and continue to evaluate potential subscription models in the Community Brands segment. In one test market, we have fully rolled out paid subscriptions and subscribers now represent approximately 18% of the homes where we deliver.
  
  
• In December 2019, we completed the transfer of assets from the eight Torstar defined benefit pension plans (the "Torstar Plans") into the Colleges of Applied Arts and Technology Pension Plan (the "CAAT Plan") following receipt of consent from the Financial Services Regulatory Authority of Ontario ("FSRA") for the merger. The transfer of assets was the final stage in completing the merger. The liabilities for all past benefits under the Torstar Plans have now been transferred and the CAAT Plan has assumed responsibility for all pension benefit payments under the Torstar Plans. We recorded a gain of $24.6 million on the transfer of our defined benefit pension plans to the CAAT Plan.
  
  
• Effective December 20, 2019 we ceased publication of the printed editions of the StarMetro free daily newspaper in Toronto, Vancouver, Calgary, Edmonton and Halifax in order to both reduce costs and transition to a digital-only news service outside of Ontario.
  
  
• In the fourth quarter of 2019, we recorded a gain on sale of assets of $3.5 million primarily related to the sale of two real estate properties in Ontario for total cash proceeds of $5.7 million.
  
  
• Subsequent to the end of the quarter, we announced an agreement to sell the land and building used by the Hamilton Spectator, for a purchase price of $25.5 million. The agreement is subject to customary closing conditions and adjustments and the Company anticipates that the sale will be completed in the first quarter of 2020.
  
  
• Our operating revenue was $124.0 million in the fourth quarter of 2019, down $20.8 million or 14% relative to the fourth quarter of 2018.
  
  
• Our net income attributable to equity shareholders was $14.1 million ($0.17 per share) in the fourth quarter of 2019. This compares to a net loss attributable to equity shareholders of $3.1 million ($0.04 per share) in the fourth quarter of 2018.
  
  
• Adjusted earnings per share (see "non-IFRS measures") was $0.11 in the fourth quarter of 2019. This compares to adjusted earnings per share of $0.15 in the fourth quarter of 2018.
  
  
• Our Adjusted EBITDA including joint ventures and VerticalScope (see "non-IFRS measures") was $23.4 million in the fourth quarter of 2019, down $6.4 million from the fourth quarter of 2018 and included the benefit of $9.4 million of tax credits (2018 - $7.8 million). Excluding the impact of digital media and journalism tax credits and a change in accounting for leases, adjusted EBITDA including joint ventures and VerticalScope was $14.0 million in the fourth quarter of 2019, down $9.0 million relative to the fourth quarter of 2018. Our proportionate share of adjusted EBITDA at VerticalScope was $6.1 million in the fourth quarter of 2019, down $1.1 million or 15% relative to the fourth quarter of 2018 (16% in U.S. dollars).

Highlights for the year:

• In the third quarter of 2019, we sold our portfolio investments in Kensington Venture Fund, L.P. and 1760335 Ontario Inc. (Canadastays.com) and received total cash proceeds of $4.9 million.
  
  
• During the third quarter, we closed our Hamilton printing and mailroom operations used by the Hamilton Spectator which is expected to result in annualized net savings in the range of approximately $5 to $6 million. Printing work performed at the Hamilton facility was transitioned to TC Transcontinental Printing and other external printers as well as Torstar-owned facilities. In connection with this decision we also extended our printing arrangements with Transcontinental to 2024.
  
  
• During the first quarter of 2019, we entered into an agreement with Apple to provide Toronto Star content on Apple News+, Apple's new paid subscription service that launched in Canada and the United States on March 25, 2019. Under this agreement, we receive a share of Apple News+ subscriber revenue and can also sell advertising against our content on the Apple News+ platform.
  
  
• Ended 2019 with $42.2 million of cash and cash equivalents and $8.2 million of restricted cash; Torstar has no bank indebtedness.
  
  
• Our operating revenue was $479.0 million in 2019, down $64.4 million or 12% relative to 2018.
  
  
• Our net loss from continuing operations was $51.9 million ($0.64 per share) in 2019. This compares to a net loss from continuing operations of $38.0 million ($0.47 per share) in 2018. Our net loss in 2019 included $28.1 million of non-cash amortization and depreciation, $35.5 million of restructuring and other charges and $29.7 million of non-cash impairment charges, partially offset by a gain of $24.6 million on the transfer of our defined benefit pension plans to the CAAT Plan. Our net loss in 2018 included $26.9 million of non-cash amortization and depreciation, $17.5 million of restructuring and other charges and $8.0 million of non-cash impairment charges related to our investment in joint ventures.
  
  
• Adjusted loss per share (see "non-IFRS measures") was $0.18 in 2019 compared to an adjusted loss per share of $0.11 in 2018. Adjusted loss per share in 2019 included a $0.35 per share effect of amortization and depreciation.
  
  
• Our Adjusted EBITDA including joint ventures and VerticalScope (see "non-IFRS measures") was $50.3 million in 2019 and included the benefit of $36.9 million of digital media and journalism tax credits (2018 - $23.9 million). Excluding the tax credits and the impact of a change in accounting for leases, adjusted EBITDA including joint ventures and VerticalScope was down $27.8 million in 2019, with the Daily Brands down $11.0 million and Community Brands down $13.6 million. These declines primarily reflected lower print advertising and flyer distribution revenues which were only partially offset by the benefits of savings from restructuring and other cost reduction initiatives. Our proportionate share of VerticalScope's Adjusted EBITDA was $20.5 million, down $3.4 million compared to 2018, resulting from lower operating revenues associated with year over year declines in search related traffic and the transition to a new technology platform which were only partially offset by lower salaries and benefits and other cost reductions.

"While results in the quarter continued to reflect ongoing challenges in the print advertising market, we were pleased with progress in a number of important areas. We ended the year with almost 80,000 subscribers with digital access including almost 28,000 digital only subscribers to our Daily Brands news sites as well as over 280,000 registered users across all our Community news sites as part of our broader data strategy to add value to our audiences and advertisers. On the digital advertising front, after a year of hard work, we are now beginning the rollout of new products and initiatives which will better leverage data to support our efforts to grow this area of our business," said John Boynton, President and CEO of Torstar. "Adjusted EBITDA including joint ventures and VerticalScope was $23.4 million in the quarter. The quarter benefited from $9.4 million of tax credits as well as continued efforts on costs which helped to offset continued pressure on print advertising revenues as print advertising revenue trends continued to be difficult. On a positive note, our subscriber revenue, which is a large and more resilient part of our business, continued to be stable for the fifth consecutive quarter. Earnings in the quarter included $6.1 million from VerticalScope."

"Looking forward, we begin the year from a continued solid financial position, having finished 2019 with $42.2 million in unrestricted cash and no bank debt. Very importantly, with the completion of the merger of the Torstar defined benefit pension plans with the CAAT Plan, all liabilities for past benefits under the Torstar Plans have now been transferred to CAAT. In 2020, we expect continued growth in digital subscribers will contribute to relative stability in overall subscriber revenues. Ongoing efforts to reduce costs are anticipated to help mitigate continued pressures on print advertising revenues while progress in our transformation is expected to help drive stronger digital advertising performance."

The following chart provides a continuity of earnings per share from the fourth quarter and twelve months ended December 31, 2018 to the fourth quarter and twelve months ended December 31, 2019:

		Three Months Ended December 31, 2019		Year Ended December 31, 2019
		Earnings (Loss) Per Share	Adjusted Earnings (Loss) Per Share**	Earnings (Loss) Per Share	Adjusted Earnings (Loss) Per Share**
Earnings (Loss) per share from continuing operations attributable to equity shareholders in 2018		($0.04)	$0.15	($0.47)	($0.11)
Changes
•	Adjusted EBITDA*	(0.06)	(0.06)	(0.07)	(0.07)
•	Amortization and depreciation	(0.01)	(0.01)	(0.01)	(0.01)
•	Restructuring and other charges	(0.12)		(0.22)
•	Impairment of assets	(0.10)		(0.37)
•	Interest and financing costs	(0.01)	(0.01)
•	Non-cash foreign exchange	0.02		0.03
•	Income (Loss) from joint ventures and associated businesses	0.14	0.04	0.12
•	Other income	0.35		0.34
•	Other			0.01	0.01
Earnings (Loss) per share from continuing operations attributable to equity shareholders in 2019		$0.17	$0.11	($0.64)	($0.18)

*Refer to discussion of "non-IFRS measures" including definition of Adjusted EBITDA.

** Refer to discussion of "non-IFRS measures" including definition of adjusted earnings (loss) per share.

OPERATING RESULTS – FOURTH QUARTER 2019
The following tables set out, in $000's, the results for the three months ended December 31, 2019 and 2018.

Fourth Quarter 2019
(in $000's)	Communities	Dailies	Corporate and Other	Total Per Consolidated Statement of Loss
Operating revenue	$57,829	$63,046	$3,168	$124,043
Salaries and benefits^1	(20,906)	(16,985)	(1,241)	(39,132)
Share based compensation	69	26	(1,005)	(910)
Other operating costs	(24,528)	(39,513)	(2,564)	(66,605)
Adjusted EBITDA*	12,464	6,574	(1,642)	17,396
Amortization & depreciation	(2,740)	(3,365)	(1,702)	(7,807)
Share based compensation	(69)	(26)	1,005	910
Restructuring and other charges	(2,567)	(12,815)		(15,382)
Impairment of assets		(8,187)		(8,187)
Operating profit (loss)*	$7,088	($17,819)	($2,339)	($13,070)

Fourth Quarter 2018
(in $000's)	Communities	Dailies	Corporate and Other	Total Per Consolidated Statement of Loss
Operating revenue	$68,719	$71,736	$4,405	$144,860
Salaries and benefits ^2	(29,042)	(19,335)	(2,517)	(50,894)
Share based compensation	147	49	(645)	(449)
Other operating costs	(27,094)	(40,706)	(3,584)	(71,384)
Adjusted EBITDA*	12,730	11,744	(2,341)	22,133
Amortization & depreciation	(2,883)	(3,316)	(714)	(6,913)
Share based compensation	(147)	(49)	645	449
Restructuring and other charges	(3,883)	(1,994)	1	(5,876)
Operating profit (loss)*	$5,817	$6,385	($2,409)	$9,793

¹Salaries and benefits in the three months ended December 31, 2019 included the recovery of $7.1 million and $2.3 million of digital media and journalism tax credits respectively ($3.9 million and $1.0 million respectively in the Communities segment and $3.2 million and $1.3 million respectively in the Dailies segment)

²Salaries and benefits in the three months ended December 31, 2018 included the recovery of $7.9 million of digital media tax credits, $7.4 million in the Dailies segment and $0.5 million in the Communities segment.

*These are non-IFRS or additional IFRS measures, see "non-IFRS measures"

Operating Revenue
Operating revenue was $124.0 million down, $20.8 million or 14% in the fourth quarter of 2019. Subscriber revenues were comparable to prior year in the fourth quarter reflecting growth in digital subscription revenues offset by modest declines in print subscriber revenues. Print advertising revenues were down 24% and flyer distribution revenues were down 16% respectively from prior year.

Digital revenue decreased 7% in the fourth quarter of 2019, reflecting continued solid growth in local digital advertising within the community news sites and growth in other digital revenue streams at the Star offset by declines at eyeReturn Marketing and other digital properties. Digital revenues were 14% of total operating revenues in the fourth quarter of 2019 compared to 13% in the fourth quarter of 2018.

Salaries and benefits
Our salaries and benefits costs were $39.1 million in the fourth quarter of 2019 and included the benefit of $7.1 million of digital media tax credits (2018 - $7.8 million) and $2.3 million in respect of a refundable labour tax credit for qualifying journalism organizations (2018 - $nil). The digital media tax credits represent recoveries of previously incurred salary and benefit costs and are related to claims made in respect of prior years for a program for which we were no longer eligible after April 2015. The tax credit for qualifying journalism organizations is a new refundable labour tax credit for qualifying journalism organizations that was approved as part of the federal budget on June 21, 2019.

Excluding the tax credits, salaries and benefit costs in 2019 were down $10.2 million or 17% largely reflecting $7.0 million of lower costs associated with the benefit of savings from restructuring initiatives including the closure of the Hamilton printing plant.

Other operating costs
Other operating costs primarily consist of circulation and flyer distribution costs, newsprint costs and other production costs which represented 43%, 10% and 13% respectively of other operating costs in the fourth quarter of 2019.

Our other operating costs were down $4.8 million or 7% in the fourth quarter of 2019. Of these decreases, $1.1 million were due to the change in accounting for leases as part of the adoption of IFRS 16 Leases effective January 1, 2019. The remaining decrease in other operating costs was the result of lower print volumes and the impact of other cost reductions partially offset by increased costs associated with outsourced printing of the Hamilton Spectator and certain other publications.

Adjusted EBITDA
Our Adjusted EBITDA was $17.4 million in the fourth quarter of 2019, and included the benefit of $9.4 million of tax credits (fourth quarter of 2018 - $7.8 million). Excluding the impact of the tax credits and change in accounting for leases, Adjusted EBITDA in the fourth quarter of 2019 was $8.0 million, down $7.4 million relative to the fourth quarter of 2018 with the Daily Brands down $2.6 million, Community Brands down $5.4 million, and Corporate and Other improved $0.6 million. These declines reflect lower operating revenues partially offset by cost savings from restructuring initiatives and other cost reduction initiatives.

Adjusted EBITDA including joint ventures and VerticalScope
The following table provides a summary of our Adjusted EBITDA which includes our proportionately consolidated share of Adjusted EBITDA for our joint venture operations and 56% interest in VerticalScope.

Adjusted EBITDA*
	Three months ended December 31
	2019	2018
Adjusted EBITDA*	$17,396	$22,133
Joint ventures - Adjusted EBITDA*	(125)	392
VerticalScope - Adjusted EBITDA* (56%)	6,133	7,250
Adjusted EBITDA including joint ventures and VerticalScope*	$23,404	$29,775

*These are non-IFRS measures, see "non-IFRS measures"

Our Adjusted EBITDA including joint ventures and VerticalScope was $23.4 million in the fourth quarter of 2019, down $6.4 million from the fourth quarter of 2018 and included the benefit of $9.4 million of tax credits noted above. Excluding the impact of tax credits and the change in accounting for leases, Adjusted EBITDA including joint ventures and VerticalScope was $14.0 million in the fourth quarter of 2019, down $9.0 million relative to the fourth quarter of 2018. Our proportionate share of Adjusted EBITDA at VerticalScope was $6.1 million in the  fourth quarter of 2019, down $1.1 million or 15% relative to the fourth quarter of 2018 (16% in U.S. dollars) resulting from lower operating revenues associated with year over year declines in search related traffic and the transition to a new technology platform which were only partially offset by lower salaries and benefits and other cost reductions.

Restructuring and other charges
Restructuring and other charges were $15.4 million in the fourth quarter of 2019 and $5.9 million in the fourth quarter of 2018. Restructuring initiatives undertaken in the fourth quarter of 2019 are expected to result in annualized net savings of $21.4 million, $0.3 million of which was realized in the fourth quarter of 2019, and have resulted in the reduction of approximately 250 positions.

Impairment of assets
During the fourth quarter of 2019, we incurred non-cash impairment charges of $8.2 million in the Daily Brands segment. These charges have no impact on cash flows. As a result of the challenges presented by the continued structural changes in the advertising industry, including uncertainty in the print advertising market and dominance of the rapidly evolving digital market by global technology giants, we performed impairment tests on the carrying value of property, plant and equipment and intangible assets in the Daily Brands and Community Brands segment. As a result of this testing, we determined that the carrying value of intangible assets in the Daily Brands segment exceeded its recoverable amount, and accordingly, we recorded a non-cash impairment charge of $8.0 million in the Daily Brands segment.

Operating profit (loss)
In the fourth quarter of 2019 our operating loss was $13.1 million compared to operating profit of $9.8 million in the fourth quarter of 2018, reflecting the changes to Adjusted EBITDA discussed above as well as higher non-cash impairment charges and restructuring and other charges.

Loss from joint ventures
Loss from joint ventures was $0.4 million in the fourth quarter of 2019 compared to a loss of $7.9 million in the fourth quarter of 2018. The loss in the fourth quarter of 2018 included a non-cash impairment charge of $8.0 million related to our joint venture investment in Sing Tao.

Loss from associated businesses
Loss from associated businesses was $1.4 million in the fourth quarter of 2019 compared to a loss of $5.0 million in the fourth quarter of 2018. The loss in the fourth quarter of 2019 included income of $0.3 million from Black Press, income of $0.8 million from Blue Ant and a loss of $2.1 million from VerticalScope. The loss from VerticalScope in the fourth quarter of 2019 included $7.8 million of non-cash amortization and depreciation expense.

The loss in the fourth quarter of 2018 included income of $1.1 million from Black Press, a loss of $0.8 million from Blue Ant and a loss of $5.1 million from VerticalScope. The loss from VerticalScope in the fourth quarter of 2018 included $8.6 million of non-cash amortization and depreciation expense and $2.3 million of acquisitions related expense resulting from adjustments to contingent considerations and interest accretion costs.

Other income
Other income was $28.9 million in the fourth quarter of 2019 and $nil in the fourth quarter of 2018 and included a gain of $24.6 million related to the transfer of the pension assets and liabilities for all past benefits under the Torstar Plans to the CAAT Plan as well as a gain of $3.5 million related to the sale of two real estate properties in Ontario.

Income and other taxes
We recorded an income tax recovery of $0.4 million in the fourth quarter of 2019 and income tax expense of $nil in the fourth quarter of 2018. We have not recognized the benefit of net deferred income tax assets on the consolidated statement of financial position.

Net income attributable to equity shareholders
Our net income attributable to equity shareholders was $14.1 million ($0.17 per share) in the fourth quarter of 2019. This compares to a net loss attributable to equity shareholders of $3.1 million ($0.04 per share) in the fourth quarter of 2018.

OPERATING RESULTS – YEAR ENDED DECEMBER 31, 2019
The following tables set out, in $000's, the segmented results for the years ended December 31, 2019 and 2018

2019
(in $000's)	Communities	Dailies	Corporate and Other	Total Per Consolidated Statement of Loss
Operating revenue	$225,538	$243,262	$10,175	$478,975
Salaries and benefits^1	(93,679)	(75,676)	(10,252)	(179,607)
Share based compensation	304	97	(275)	126
Other operating costs	(101,894)	(158,418)	(9,908)	(270,220)
Adjusted EBITDA*	30,269	9,265	(10,260)	29,274
Amortization & depreciation	(14,205)	(10,182)	(3,743)	(28,130)
Share based compensation	(304)	(97)	275	(126)
Restructuring and other charges	(10,261)	(25,244)	(18)	(35,523)
Impairment of assets	(21,540)	(8,187)		(29,727)
Operating profit (loss)*	($16,041)	($34,445)	($13,746)	($64,232)

2018
(in $000's)	Communities	Dailies	Corporate and Other	Total Per Consolidated Statement of Loss
Operating revenue	$257,015	$271,628	$14,748	$543,391
Salaries and benefits^2	(123,138)	(83,811)	(12,347)	(219,296)
Share based compensation	391	63	(259)	195
Other operating costs	(111,078)	(164,211)	(14,208)	(289,497)
Adjusted EBITDA*	23,190	23,669	(12,066)	34,793
Amortization & depreciation	(11,662)	(12,402)	(2,885)	(26,949)
Share based compensation	(391)	(63)	259	(195)
Restructuring and other charges	(9,610)	(7,752)	(163)	(17,525)
Operating profit (loss)*	$1,527	$3,452	($14,855)	($9,876)

¹Salaries and benefits in 2019 included the recovery of $30.1 million and $6.8 million of digital media and journalism tax credits respectively ($15.9 million and $2.3 million in the Communities segment, respectively and $14.2 million and $4.5 million in the Dailies segment respectively.)

²Salaries and benefits in 2018 included the recovery of $23.9 million of digital media tax credits ($0.5 million in the Communities segment and $23.4 million in the Dailies segment.

*These are non-IFRS or additional IFRS measures, see "non-IFRS measures"

Operating revenue
Operating revenue was down $64.4 million or 12% in 2019. Subscriber revenues increased 1%, reflecting growth in digital subscription revenues offset by modest declines in print subscriber revenues. Print advertising revenues were down 21% and flyer distribution revenues were down 12% from prior year.

Digital advertising revenue decreased 8% in 2019, reflecting continued solid growth in local digital advertising within the community websites and growth in other digital revenue streams at the Star offset by declines at eyeReturn marketing and other digital properties. Digital advertising revenues were 13% of total operating revenues in 2019 and 12% of total operating revenues in 2018.

The following charts provide a breakdown of operating revenue for 2019 and 2018 (in $000's):

Year ended December 31, 2019	Communities		Dailies		Corporate and Other		Total Consolidated
	$	%	$	%	$	%	$	%
Print advertising	$80,964	36%	$74,100	30%			$155,064	32%
Digital advertising	24,949	11%	25,199	10%	$10,175	100%	60,323	13%
Flyer distribution	84,406	37%	19,174	8%			103,580	22%
Print and digital subscriber	434		119,243	49%			119,677	25%
Other	34,785	16%	5,546	3%			40,331	8%
Total	$225,538	100%	$243,262	100%	$10,175	100%	$478,975	100%

Year ended December 31, 2018	Communities		Dailies		Corporate and Other		Total Consolidated
	$	%	$	%	$	%	$	%
Print advertising	$99,375	39%	$97,671	36%			$197,046	36%
Digital advertising	25,084	10%	25,848	10%	$14,748	100%	65,679	12%
Flyer distribution	95,531	37%	21,573	8%			117,104	22%
Print and digital subscriber	460		118,004	43%			118,465	22%
Other	36,565	14%	8,532	3%			45,097	8%
Total	$257,015	100%	$271,628	100%	$14,748	100%	$543,391	100%

Salaries and benefits
Salaries and benefits costs were $179.6 million in 2019 and included the benefit of $30.1 million of digital media tax credits (2018 - $23.9 million) and $6.8 million in respect of a refundable labour tax credit for qualifying journalism organizations (2018 - $nil). Excluding the digital media and journalism tax credits (together referred to as "tax credits"), salaries and benefit costs in 2019 were down $26.7 million or 11% largely reflecting $20.7 million of lower costs associated with the benefit of savings from restructuring initiatives as well as $4.3 million of lower pension expense.

Other operating costs
Other operating costs primarily consist of circulation/flyer distribution costs, newsprint costs and other production costs which represented 43%, 11% and 13% respectively of other operating costs in 2019.

Other operating costs were down $19.3 million or 7% in 2019. Of these decreases, $4.4 million were due to the change in accounting for leases as part of the adoption of IFRS 16 Leases effective January 1, 2019. The remaining decrease in other operating costs was the result of lower print volumes and the impact of other cost reductions.

Adjusted EBITDA
Our Adjusted EBITDA was $29.3 million in 2019, down $5.5 million relative to the prior year and included the benefit of $36.9 million of tax credits (2018 - $23.9 million). Excluding the impact of the tax credits as well as the change in accounting for leases, our Adjusted EBITDA loss was $7.6 million in 2019 compared to Adjusted EBITDA of $15.3 million in 2018, with the Daily Brands down $11.0 million, Community Brands down $13.6 million, and Corporate and Other improved by $1.7 million. These declines primarily reflected lower print advertising and flyer distribution revenues which were only partially offset by the benefits of savings from restructuring and other cost reduction initiatives.

Adjusted EBITDA including joint ventures and VerticalScope
The following table provides a summary of Adjusted EBITDA including our proportionately consolidated share of Adjusted EBITDA for our joint venture operations and 56% interest in VerticalScope.

Adjusted EBITDA*
	Twelve months ended December 31
	2019	2018
Adjusted EBITDA*	$29,274	$34,793
Joint ventures - Adjusted EBITDA*	514	2,057
VerticalScope - Adjusted EBITDA* (56%)	20,507	23,915
Adjusted EBITDA including joint ventures and VerticalScope*	$50,295	$60,765

*These are non-IFRS measures, see "non-IFRS measures".

As indicated Note 3 of the Consolidated Financial Statements, we manage the performance of our operating segments including our proportionately consolidated share of joint ventures and VerticalScope. Our Adjusted EBITDA including joint ventures and VerticalScope was $50.3 million in 2019, down $10.5 million relative to the prior year and included the benefit of $36.9 million of tax credits (2018 - $23.9 million). Excluding the benefit of these tax credits and the impact of the change in accounting for leases, Adjusted EBITDA including joint ventures and VerticalScope was $13.4 million in 2019, down $27.8 million relative to 2018. Our proportionate share of Adjusted EBITDA at VerticalScope was $20.5 million in 2019, representing a decrease of $3.4 million or 14% compared to 2018 (16% in U.S. dollars) resulting from lower operating revenues associated with year over year declines in search related traffic and the transition to a new technology platform which were only partially offset by lower salaries and benefits and other cost reductions.

Amortization and depreciation
Amortization and depreciation expense increased by $1.2 million in 2019 to $28.1 million reflecting $5.6 million of higher amortization as a result of the change in accounting for leases partially offset by lower amortization and depreciation at the Daily and Community Brands.

Restructuring and other charges
Restructuring and other charges were $35.5 million in 2019 and are expected to result in annualized net savings of $41.3 million ($9.6 million of which were realized in 2019). This has resulted in the reduction of approximately 640 positions. Total restructuring and other charges of $17.5 million were recorded in 2018.

We have undertaken several restructuring initiatives for a number of years in order to reduce our ongoing operating costs. At December 31, 2019, our liability for payments in respect of these restructuring initiatives was $30.1 million (2018 - $18.0 million). The following chart provides a year-over-year summary of the realized and expected net savings by year:

(in $000's)	Year of Initiative			Total
	2017	2018	2019
Realized net savings in:
2017	$12,100			$12,100
2018	9,900	$8,700		18,600
2019		11,100	$9,600	20,700
Expected net savings in:
2020		100	31,700	31,800
Annualized net savings	$22,000	$19,900	$41,300	$83,200

Impairment of assets
In 2019, we incurred non-cash impairment charges of $21.5 million in the Community Brands segment and $8.2 million in the Daily Brands segment. These charges have no impact on cash flows.

As a result of the challenges presented by the continued structural changes in the advertising industry, including uncertainty in the print advertising market and dominance of the rapidly evolving digital market by global technology giants, we performed impairment tests on the carrying value of property, plant and equipment and intangible assets in the Daily Brands and Community Brands segment. As a result of this testing, we determined that the carrying value of the property, plant and equipment and intangible assets in the Community Brands segment exceeded its recoverable amount and accordingly, we recorded a non-cash impairment charge of $13.1 million in the Community Brands segment in respect of property, plant and equipment and $8.4 million in respect of intangible assets. In addition, we determined that the carrying value of intangible assets in the Daily Brands segment exceeded its recoverable amount, and accordingly, we recorded a non-cash impairment charge of $8.0 million in the Daily Brands segment.

Operating profit (loss)
The higher operating loss in 2019 was primarily the result of the above noted changes in Adjusted EBITDA combined with higher non-cash impairment charges and higher restructuring and other charges.

Loss from joint ventures
Loss from joint ventures was $0.2 million in 2019 and $5.4 million in 2018. The loss from joint ventures in 2018 included non-cash impairment charges of $8.0 million related to our joint venture investment in Sing Tao. The loss from joint ventures in 2018 also included a $3.7 million gain on the sale of Workopolis.com and related assets that were sold in April 2018 as well as $1.8 million of restructuring charges related to the closure of the remaining Workopolis business following the sale.

During the fourth quarter of 2018, we concluded that there were indicators of impairment for our joint venture investment in Sing Tao Daily resulting from lower forecasted operating revenues that reflect challenges in the print advertising market. In carrying out the impairment test, we determined that the carrying amount of the joint venture investment in Sing Tao Daily exceeded its value in use ("VIU") and accordingly, we recorded an impairment charge of $8.0 million. These charges did not have any impact on cash flows.

Loss from associated businesses
Loss from associated businesses was $16.2 million in 2019 compared to a loss of $20.4 million in 2018. The loss from associated businesses was heavily influenced by VerticalScope's amortization and depreciation policy related to acquisitions.

The 2019 loss included income of $1.0 million from Black Press offset by a loss of $1.6 million from Blue Ant and a loss of $15.0 million from VerticalScope. The 2019 loss from VerticalScope included $33.1 million of non-cash amortization and depreciation expense. The 2018 loss included income of $2.3 million from Black Press offset by a loss of $1.3 million from Blue Ant and a loss of $20.7 million from VerticalScope. The 2018 loss from VerticalScope included $38.9 million of non-cash amortization and depreciation expense and $2.3 million of acquisitions related expense.

Our share of Black Press' net income was $1.0 million in 2019 (income of $2.3 million in 2018), representing Black Press' results through November 30, 2019. Black Press has a February fiscal year end and therefore does not have a coterminous year-end with us.

Our share of Blue Ant's net loss was $1.6 million in 2019 (loss of $1.3 million in 2018) representing Blue Ant's results through November 30, 2019 which included dilution gains of $0.3 million ($0.4 million in 2018). Our equity interest in Blue Ant was 15% at the end of 2019 comparable with our equity interest at the end of 2018. Blue Ant has an August fiscal year end and therefore does not have coterminous year-end with us.

We did not record any income or loss during 2019 or 2018 in respect of our investment in Canadian Press as the carrying value had previously been reduced to $nil. We will begin to report our share of Canadian Press' results once the unrecognized losses, including Other Comprehensive Income ("OCI") losses ($0.6 million as of December 31, 2019) have been offset by net income or OCI. For the year ended December 31, 2019, we would have reported a net income of $3.5 million, which included a gain on transfer of their employee benefits obligations to CAAT, and other comprehensive income of $1.8 million from Canadian Press (2018 – loss of $0.1 million and other comprehensive loss of $0.5 million).

Other income
Other income was $28.6 million in 2019 compared to $0.3 million in 2018. Other income in 2019 included a gain of $24.6 million related to the transfer of the Torstar Plans' pension assets and liabilities for all past benefits to the CAAT Plan as well as a gain of $3.5 million related to the sale two real estate properties in Ontario. Other income in 2018 also related to a gain on the sale of a real estate property.

Net loss from continuing operations
Our net loss from continuing operations was $51.9 million ($0.64 per share) in 2019. This compares to a net loss from continuing operations of $38.0 million ($0.47 per share) in 2018. Our net loss in 2019 included $28.1 million of non-cash amortization and depreciation, $35.5 million of restructuring and other charges and $29.7 million of non-cash impairment charges, partially offset by a gain of $24.6 million on the transfer of our defined benefit pension plans to CAAT. Our net loss in 2018 included $26.9 million of non-cash amortization and depreciation, $17.5 million of restructuring and other charges and $8.0 million of non-cash impairment charges related to our investment in joint ventures.

OUTLOOK
The Community Brands and the Daily Brands continued to face a very challenging print advertising market in 2019 resulting from ongoing shifts in spending by advertisers. Similar trends have continued early into 2020 and it is difficult to predict if these trends will improve or worsen in the balance of the year. Flyer distribution revenues declined 12% in 2019 and we expect this trend to be slightly better in 2020 including the benefit of an additional week of publication in the Communities segment in the fourth quarter of 2020. Subscriber revenues grew modestly in 2019, benefiting from new digital subscription revenues offset by modest declines in print subscription revenue. We expect this trend to continue in 2020 and that total subscriber revenues in 2020 will be comparable to 2019 levels.

Digital advertising revenues at the Community Brands and Daily Brands segments were down 1% in 2019 and we expect to reverse this trend and achieve modest growth in digital advertising revenues in 2020 as we continue to benefit from solid growth in local digital advertising at the community news sites offset by modest declines in other digital verticals.

We expect the cost base in 2020 to benefit from $31.8 million of full year savings related to restructuring initiatives undertaken through the end of 2019 ($6.6 million in the Community Brands segment and $25.2 million in the Daily Brands segment) including those related to the closure of the StarMetro print editions in December 2019. We also expect to identify additional cost savings that we would benefit from in 2020 and which may also result in additional restructuring and other charges.

We also continue to expect to benefit from approximately $6 to $7 million of refundable labour tax credits for qualifying journalism organizations in 2020 (1/3 in the Community Brands segment and 2/3 in the Daily Brands segment).

At VerticalScope, we expect that revenue and traffic will continue to be negatively impacted by the migration of forum sites on to a new technology platform. Over 300 sites representing approximately 35% of forum traffic were migrated by the end of 2019 and the remaining sites are expected to be migrated by the end of 2020. The new platform is expected to improve the user experience and site performance and return the sites to growth over time. However traffic and revenue are likely to decline during the transition and a period of adjustment and revenue trends experienced in 2019 are expected to continue for the full year in 2020. Early indicators suggest that site performance and user engagement has improved on migrated sites. Adjusted EBITDA margins and cash flow from operations are expected to decline somewhat but remain relatively strong.

From a cash flow perspective, we expect to reduce capital expenditures in 2020 to approximately $13 million, the majority of which relates to capital spending related to technology platforms in connection with our transformation activities as well as spending on initiatives that reduce our future operating expenses. In addition, at the end of 2019 we had net receivables related to digital media tax credits totaling $31.3 million, $20.2 million of which was received subsequent to the end of 2019. The amount and timing of any further cash to be realized is dependent upon the final review and approval by the Canada Revenue Agency.

ADDITIONAL INFORMATION
For additional information, please refer to Torstar's audited consolidated financial statements for the year ended December 31, 2019 and the 2019 Management's Discussion and Analysis ("MD&A"). Both documents will be filed today on SEDAR and are available on Torstar's corporate website www.torstar.com.

CONFERENCE CALL
Torstar has scheduled a conference call for February 26, 2020 at 8:15 a.m. to discuss its fourth quarter results. The dial-in number is 1-888-231-8191. A live broadcast of the conference call will be available over the internet on the Presentations, Events and Conference Calls page (Investor Relations) on Torstar's website www.torstar.com. A recording of the conference call will be available for 9 days at 1-855-859-2056 reservation number 3454589. An online archive of the broadcast will be available shortly after the completion of the call and will be accessible by visiting the Presentations, Events and Conference Calls (Investor Relations) page on Torstar's website www.torstar.com.

About Torstar Corporation
Torstar Corporation is a broadly based media company listed on the Toronto Stock Exchange (TS.B). Its businesses include the Toronto Star, Canada's largest daily newspaper, six regional daily newspapers in Ontario including The Hamilton Spectator; more than 75 weekly community newspapers in Ontario; flyer distribution services; and digital properties including thestar.com, wheels.ca, save.ca, toronto.com, a number of regional online sites and eyeReturn Marketing. Torstar also holds a majority interest in VerticalScope, a North American vertically-focused digital media company.

Non-IFRS measures
In addition to operating profit (loss), an additional IFRS measure, as presented as a subtotal in the consolidated statement of income (loss), management uses the following non-IFRS measures: Adjusted EBITDA and adjusted earnings (loss) per share, as measures to assess the consolidated performance and the performance of the reporting units and business segments. Please refer to Section 14 of Torstar's MD&A for the year ended December 31, 2019 for a reconciliation of Adjusted EBITDA with operating profit (loss) an additional IFRS measure which appears as a subtotal in our consolidated statement of income (loss).

Adjusted EBITDA/Adjusted EBITDA including joint ventures and VerticalScope
Adjusted EBITDA is used by management as an important proxy for the amount of cash generated by our ongoing operations (or by a reporting unit or business segment) to generate liquidity to fund future capital needs and we use this metric for this purpose. Adjusted EBITDA is not the actual cash provided by operating activities and is not a recognized measure of financial performance under IFRS. We calculate Adjusted EBITDA (and calculate the Adjusted EBITDA of our joint ventures and VerticalScope) as operating revenue, less salaries and benefits and other operating costs, as presented on the consolidated statement of income (loss), and exclude share-based compensation, restructuring and other charges and impairment of assets. Share based compensation is eliminated as it is a non-cash expense that fluctuates significantly from period to period, as a result of industry compensation practices. Restructuring and other charges and impairment of assets are eliminated as these activities are not related to ongoing operations as of the end of the period. The exclusion of impairment of assets also eliminates the non-cash impact. Adjusted EBITDA is also used by investors and analysts for valuation purposes. The intent of Adjusted EBITDA is to provide additional useful information to investors, analysts and readers of our financial statements. The measure does not have any standardized meaning under IFRS and accordingly may not be comparable to measures used by other companies (including calculating EBITDA on an adjusted basis to exclude restructuring and other charges, impairment of assets and share based compensation).

Adjusted EBITDA including joint ventures and VerticalScope is calculated in the same manner as described above, except it includes proportionately consolidated results for our joint ventures and our 56% interest in VerticalScope for which management is accountable. Our adjusted EBTIDA including our proportionate share of joint ventures and VerticalScope is regularly reported to the chief operating decision maker and correspond to the definitions of Adjusted EBITDA used in our historical discussions.

Adjusted earnings (loss) per share
Adjusted earnings (loss) per share is used by management to represent the per share earnings of results of our ongoing operations (or by a reporting unit or business segment) and is not a recognized measure of financial performance under IFRS. We believe this metric is also useful for investors for this purpose. We calculate adjusted earnings (loss) per share as earnings (loss) per share from continuing operations less the per share effect of restructuring and other charges  and impairment of assets, including our proportionate share of restructuring and other charges and impairment of assets for our joint ventures and 56% interest in VerticalScope, as well as the per share effect of non-cash foreign exchange, other income (expense) and change in deferred taxes.  Restructuring and other charges and impairment of assets are eliminated as these activities are not related to ongoing operations as of the end of the period. Non-cash foreign exchange, other income (expense) and changes in deferred taxes are eliminated as these are not related to routine operating activities. The intent of presenting adjusted earnings (loss) per share is to provide additional useful information to investors, analysts and readers of our financial statements. Our method of calculating adjusted earnings (loss) per share may differ from other companies and accordingly may not be comparable to measures used by other companies. The measure does not have any standardized meaning under IFRS, is not a recognized measure of financial performance under IFRS, and accordingly may not be comparable to measures used by other companies.

Operating profit (loss)
Operating profit (loss) is an additional IFRS measure and appears as a subtotal in our Consolidated Statement of Income (Loss). Management uses operating profit (loss) to measure the results of operations inclusive of impairments and restructuring and other charges. We believe that operating profit (loss) provides additional useful information to investors, analysts and readers of our financial statements. The measure does not have any standardized meaning under IFRS and accordingly may not be comparable to measures used by other companies. Our method of calculating operating profit (loss) may differ from other companies and accordingly may not be comparable to measures used by other companies.

Forward-looking statements
Certain statements in this press release and in Torstar's oral and written public communications may constitute forward-looking statements that reflect management's expectations regarding Torstar's future growth, financial performance and business prospects and opportunities as of the date of this press release. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "anticipate", "believe", "plan", "forecast", "expect", "estimate", "predict", "intend", "would", "could", "if", "may" and similar expressions.

This press release includes, among others, forward-looking statements regarding Torstar's estimates and expectations relating to the closure of the Hamilton printing and mailroom operations (including associated restructuring charges and cost savings, and our agreement to sell the Hamilton property), expectations relating to the anticipated timing and amount of digital media tax credits, expectations relating to anticipated eligibility and benefits related to the new refundable labour tax credit for qualifying journalism organizations, expectations related to the merger of our defined benefit pension plans with the CAAT Plan (including the expected benefits of the transaction, expected funding and expenses for registered defined benefit obligations and contributions to the CAAT Plan, and expected reimbursements), estimates and expectations regarding our transformation efforts including our efforts to obtain and grow digital subscription and advertising revenue, add value to our audiences and collect and use data, expectations related to trends in print advertising and subscriber revenue, expectations regarding our ability to manage costs, expected savings including savings from restructuring initiatives and other cost reductions, estimates and expectations relating to impairment of assets, estimates and expectations relating to contingent liabilities, and Torstar's outlook for 2020, including anticipated revenue trends within the Daily and Community Brands segments, anticipated technological changes, revenue, traffic and user engagement trends, Adjusted EBITDA margins and cash flow at VerticalScope, and expected capital and operating expenditures and expectations related to our transformation efforts and costs. All such statements are made pursuant to the "safe harbour" provisions of applicable Canadian securities legislation. These statements reflect current expectations of management regarding future events and operating performance, and speak only as of the date of this press release. In addition, forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.

By their very nature, forward-looking statements require management to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that management's assumptions may not be accurate and that actual results, performance or achievements may differ significantly from such predictions, forecasts, conclusions or projections expressed or implied by such forward-looking statements. We caution readers not to place undue reliance on the forward-looking statements in this press release as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, outlooks, expectations, goals, estimates or intentions expressed in the forward-looking statements.

These factors include, but are not limited to: Torstar's ability to operate in highly competitive changing industries; Torstar's ability to compete with digital media, global technology giants, other newspapers and other forms of media; Torstar's ability to respond to the shift to digital media and the shift by advertisers to other digital platforms; Torstar's ability to meet challenges in the digital advertising market; Torstar's ability to adapt to new digital platforms and the increasing prominence of mobile; Torstar's ability to attract, grow and retain its digital audience and profitably develop its digital platforms; Torstar's ability to compete effectively for content, audience and readership; Torstar's ability to charge for news content; Torstar's ability to attract and retain advertisers and customers; Torstar's ability to attract and retain readers and traffic; Torstar's ability to build and maintain adequate subscription levels; Torstar's ability to integrate the technology associated with new digital platforms; general economic conditions and customer prospects in the principal markets in which Torstar operates; Torstar's ability to reduce costs; loss of reputation; dependence on third party suppliers and service providers; reliance on technology and information systems; cybersecurity, data protection and risks of security breaches; investments in other businesses; Torstar's ability to execute appropriate strategic growth initiatives and transformation plans (including acquisitions and dispositions); unexpected costs or liabilities related to acquisitions and dispositions; labour disruptions; reliance on printing operations; newsprint costs; distribution costs; privacy, anti-spam, communications, competition, consumer protection, advertising/marketing, distribution, e-commerce, data use and environmental laws, health and safety regulations and other laws and regulations applicable generally to Torstar's businesses, and any related regulatory proceedings; litigation; changes in employee future benefit obligations; dependence on and competition for key personnel; foreign exchange fluctuations and foreign operations; availability of insurance; income tax, other tax credits and government grants; intellectual property rights and other content risks; credit risk; availability of capital and restrictions imposed by credit facilities; controls over financial reporting, results of impairment tests and uncertainties associated with critical accounting estimates; dividend policy; thin trading and maintenance of public listing of Torstar's Class B shares; market price for Torstar's Class B shares; sales of shares by Torstar's directors or executive officers; holding company structure; control of Torstar by the Voting Trust; and the ultimate outcome of the Hamilton property sale transaction including the risks that one or more of the conditions to the closing of the transition may not be satisfied, the transaction could be modified or restructured or the transaction may not close.

Torstar cautions that the foregoing list is not exhaustive of all possible factors, as other factors could adversely affect our results.

In addition, a number of assumptions, including those assumptions specifically identified throughout this press release, were applied in making the forward-looking statements set forth in this press release. Some of the key assumptions include, without limitation, assumptions regarding the performance of the North American economies; tax laws; continued availability of printing operations; availability of financing on appropriate terms; exchange rates; market conditions and competition; rates of return and discount rates relating to pension expense and pension plan obligations; discount rates and tends in health care costs relating to post employment benefits; expected future revenues; expected future liabilities; expected future cash flows and discount rates relating to valuation of intangible assets; successful development and launch of strategic initiatives and new products; expected benefits from Torstar's sale of the land and building located in Hamilton, Ontario; and expected benefits from the transaction with CAAT. There is a risk that some or all of these assumptions may prove to be incorrect. There is no assurance  regarding the amount and timing of future dividends. When relying on our forward-looking statements to make decisions with respect to Torstar and its securities, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Torstar does not intend, and disclaims any obligation, to update any forward-looking statements, whether written or oral, or whether as a result of new information or otherwise, except as may be required by law.

For more information, please see the discussion of risks affecting Torstar and its businesses in Torstar's 2019 Management's Discussion & Analysis which has been filed on www.sedar.com and is available on Torstar's corporate website www.torstar.com.

Torstar's news releases are available on the Internet at www.torstar.com.

Torstar Corporation
Consolidated Statement of Financial Position
(Thousands of Canadian Dollars)
	As at December 31, 2019	As at December 31, 2018
Assets
Current:
Cash and cash equivalents	$42,177	$68,227
Restricted cash	8,225	7,175
Receivables	120,924	105,143
Inventories	2,709	3,918
Assets held for sale	6,021
Prepaid expenses	5,141	5,152
Prepaid and recoverable income taxes		332
Total current assets	185,197	189,947
Investments in joint ventures	12,248	12,692
Investments in associated businesses	108,362	131,216
Property, plant and equipment	22,248	49,205
Right-of-use assets	13,508
Intangible assets	12,598	32,592
Other assets	6,948	11,140
Total assets	$361,109	$426,792
Liabilities and Equity
Current:
Accounts payable and accrued liabilities	$58,453	$61,814
Deferred revenue	12,691	13,844
Lease liabilities	4,096
Derivative financial instruments	16	2,843
Provisions	24,253	13,247
Income tax payable	107	515
Total current liabilities	99,616	92,263
Lease liabilities	11,675
Provisions	6,491	5,343
Other liabilities	3,887	5,170
Employee benefits	53,939	94,569
Equity:
Share capital	403,630	403,437
Contributed surplus	22,336	21,928
Accumulated deficit	(241,225)	(198,384)
Other components of equity	1,202	2,657
Total equity attributable to equity shareholders	185,943	229,638
Minority interests	(442)	(191)
Total equity	185,501	229,447
Total liabilities and equity	$361,109	$426,792

Torstar Corporation
Consolidated Statement of Income (Loss)
(Thousands of Canadian Dollars except per share amounts)
	Three months ended December 31		Year ended December 31
	2019	2018	2019	2018
Operating revenue	$124,043	$144,860	$478,975	$543,391
Salaries and benefits	(39,132)	(50,894)	(179,607)	(219,296)
Other operating costs	(66,605)	(71,384)	(270,220)	(289,497)
Amortization and depreciation	(7,807)	(6,913)	(28,130)	(26,949)
Restructuring and other charges	(15,382)	(5,876)	(35,523)	(17,525)
Impairment of assets	(8,187)		(29,727)
Operating profit (loss)	(13,070)	9,793	(64,232)	(9,876)
Interest and financing costs	(77)	897	(1,385)	(1,332)
Foreign exchange	84	(1,065)	1,073	(1,414)
Loss from joint ventures	(395)	(7,853)	(194)	(5,414)
Loss from associated businesses	(1,427)	(5,011)	(16,150)	(20,394)
Other income	28,879		28,618	303
	13,994	(3,239)	(52,270)	(38,127)
Income and other taxes recovery	350	(18)	350	82
Net income (loss) from continuing operations	14,344	(3,257)	(51,920)	(38,045)
Income from discontinued operations		175		6,475
Net income (loss)	$14,344	($3,082)	($51,920)	($31,570)
Attributable to:
Equity shareholders	$14,132	($3,117)	($51,669)	($31,524)
Minority interests	$212	$35	($251)	($46)
Net income (loss) attributable to equity shareholders
per Class A (voting) and Class B (non-voting) share:
Basic and Diluted:
From continuing operations	$0.17	($0.04)	($0.64)	($0.47)
From discontinued operations				$0.08
	$0.17	($0.04)	($0.64)	($0.39)

Torstar Corporation
Consolidated Statement of Cash Flows
(Thousands of Canadian Dollars)
	Three months ended December 31		Year ended December 31
	2019	2018	2019	2018
Cash was provided by (used in)
Operating activities	($10,912)	$29,169	($9,916)	$14,444
Investing activities	2,162	(7,369)	(5,129)	(9,838)
Financing activities	(1,380)	(1,952)	(11,005)	(7,756)
Increase (decrease) in cash	(10,130)	19,848	(26,050)	(3,150)
Cash, beginning of period	52,307	48,379	68,227	71,377
Cash, end of period	$42,177	$68,227	$42,177	$68,227
Operating activities:
Net income (loss) from continuing operations	$14,344	($3,257)	($51,920)	($38,045)
Amortization and depreciation	7,807	6,913	28,130	26,949
Deferred income taxes		18		(282)
Loss from joint ventures	395	7,853	194	5,414
Distributions from joint ventures	250	4,000	250	5,314
Loss from associated businesses	1,427	5,011	16,150	20,394
Impairment of assets	8,187		29,727
Non-cash employee benefit expense	864	2,161	4,961	13,163
Employee benefits funding	(908)	(622)	(4,668)	(11,023)
Gain on transfer of employee benefits	(24,590)		(24,590)
Gain on sale of assets	(3,519)		(3,519)	(292)
Other	240	297	2,005	(207)
	4,497	22,374	(3,280)	21,385
Decrease (increase) in restricted cash	638	517	(1,050)	1,881
Decrease (increase) in non-cash working capital	(16,047)	6,278	(5,586)	(8,822)
Cash provided by (used in) operating activities	($10,912)	$29,169	($9,916)	$14,444
Investing activities:
Additions to property, plant and equipment and intangible assets	($3,588)	($6,439)	($14,640)	($14,411)
Acquisitions and portfolio investments		(1,103)	(1,125)	(2,228)
Proceeds from sale of assets	5,750	47	10,636	6,490
Other		126		311
Cash provided by (used in) investing activities	$2,162	($7,369)	($5,129)	($9,838)
Financing activities:
Lease payments	($1,380)		($5,038)
Dividends paid		($1,990)	(6,015)	($7,944)
Other		38	48	188
Cash used in financing activities	($1,380)	($1,952)	($11,005)	($7,756)
Cash represented by:
Attributed to continuing operations:
Cash	$14,188	$32,752	$14,188	$32,752
Cash equivalents – short-term deposits	27,989	35,475	27,989	35,475
Net cash, end of period	$42,177	$68,227	$42,177	$68,227

SOURCE Torstar Corporation

L. DeMarchi, Executive Vice-President and Chief Financial Officer, Torstar Corporation, [phone]

Related Links

http://www.torstar.com