Postmedia Reports Fourth Quarter Results

Company Website: https://www.postmedia.com/ TORONTO -- (Business Wire) Postmedia Network Canada Corp. (“Postmedia” or the “Company”) today released financial information for the three and year ended August 31, 2025. “Postmedia’s fourth quarter results mark the conclusion of a year that has seen growth and strategic progress in spite continued challenges in Canada’s domestic media sector,”said Andrew MacLeod, Postmedia President and Chief Executive Officer.“Gains across advertising, circulation and parcel delivery demonstrate our strategy is working, but the accelerated disruptions in digital audience due to Google’s roll out of A.I reinforce the criticality of continued transformation.” “We connect communities and serve Canadians through trusted journalism and essential services,”said MacLeod.“We’re entering the next fiscal year with a clear focus on building a business model that will ensure Postmedia’s long-term sustainability allowing us to continue serving millions of Canadians trusted news and information from coast to coast.” Fourth Quarter Operating Results Revenue for the quarter was $101.2 million as compared to $93.2 million in the same period in the prior year, representing an increase of $8.0 million (8.7%). The revenue increase was primarily due to increases in advertising revenue of $3.2 million (7.5%), circulation revenue of $1.9 million (5.8%) and parcel revenue of $3.6 million (29.4%), partially offset by decreases in other revenue of $0.6 million (10.4%). Total operating expenses excluding depreciation, amortization, impairment and restructuring and other increased $15.6 million, or 19.3%, for the quarter ended August 31, 2025, relative to the same period in the prior year. The increase relates to increases in compensation, distribution and production expense, partially offset by a decrease in newsprint expense. Excluding the impact of the Saltwire asset acquisition, total operating expenses excluding depreciation, amortization, impairment and restructuring increased $5.6 million or 7.0%. Operating income before depreciation, amortization and restructuring and other in the quarter was $4.6 million, a decrease of $7.6 million relative to the same period in the prior year. The decrease in operating income before depreciation, amortization, impairment and restructuring and other is due to an increase in operating expenses excluding depreciation, amortization, impairment and restructuring and other, partially offset by an increase in total revenue. Excluding the impact of the Saltwire asset acquisition, operating income before depreciation, amortization, impairment and restructuring in the quarter was $1.6 million. Net loss in the quarter ended August 31, 2025 was $44.7 million, as compared to a net loss of $3.1 million in the same period in the prior year. The increase in net loss was primarily the result of a decrease operating income before depreciation, amortization, impairment and restructuring and other, an increase in impairment expense, restructuring expense and a decrease in foreign currency exchange gains, partially offset by an increase in gains on derivative financial instruments. Year to Date Operating Results Revenue for the year ended August 31, 2025 was $431.5 million as compared to $395.9 million in the same period in the prior year, representing an increase of $35.6 million (9.0%). The revenue increase was primarily due to increases in advertising revenue of $22.7 million (12.3%), circulation revenue of $10.6 million (8.1%), parcel revenue of $4.4 million (8.6%), partially offset by decreases in other revenue of $2.1 million (7.0%). Excluding the impact of the Saltwire asset acquisition, advertising revenue for the year ended August 31, 2025 increased by 2.7%. Total operating expenses excluding depreciation, amortization, impairment and restructuring and other increased $25.2 million, or 6.6%, for the year ended August 31, 2025, relative to the same period in the prior year. The increase relates to increases in compensation, distribution, production and other operating expenses, partially offset by a decrease in newsprint expenses. Excluding the impact of the Saltwire asset acquisition, total operating expenses excluding depreciation, amortization, impairment and restructuring decreased $17.1 million or 4.5%. Operating income before depreciation, amortization, impairment and restructuring and other for the year ended August 31, 2025 was $25.2 million, an increase of $10.4 million relative to the same period in the prior year. The increase in operating income before depreciation, amortization, impairment and restructuring and other is due to an increase in total revenues, partially offset by an increase in operating expenses excluding depreciation, amortization, impairment and restructuring and other. Excluding the impact of the Saltwire asset acquisition, operating income before depreciation, amortization, impairment and restructuring in the year ended August 31, 2025 was $16.6 million. Net loss in the year ended August 31, 2025 was $77.3 million, as compared to a net loss of $49.7 million in the same period in the prior year. The decrease in net loss was primarily the result of an increase in operating income before depreciation, amortization, impairment, and restructuring and other, an increase in gains on disposal of assets held for sale, partially offset by an increase in interest expense, foreign currency exchange losses and a decrease in gain on derivative financial instruments. Additional Information Additional information, including financial statements and management’s discussion and analysis can be found on the Company’s website at www.postmedia.com or on SEDAR+ at www.sedarplus.ca. Note: All dollar amounts are expressed in Canadian dollars unless otherwise specified. About Postmedia Network Canada Corp. Postmedia Network Canada Corp. (TSX:PNC.A, PNC.B) is the holding company that owns Postmedia Network Inc., a Canadian newsmedia company representing more than 130 brands across multiple print and digital platforms. Award-winning journalists and innovative product development teams bring engaging content to millions of people every week whenever and wherever they want it. This exceptional content, reach and scope offers advertisers and marketers compelling solutions to effectively reach target audiences. Our expertise in home delivery and expanding distribution network powers Postmedia Parcel Services. For more information, visit www.postmedia.com, www.postmediasolutions.com and www.postmediaparcelservices.com. Forward-Looking Information This news release may include information that is “forward-looking information” under applicable Canadian securities laws. The Company has tried, where possible, to identify such information and statements by using words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “may,” “will,” “could,” “would,” “should” and similar expressions and derivations thereof in connection with any discussion of future events, trends or prospects or future operating or financial performance. Forward-looking statements in this news release include statements with respect the implementation and results of the Company’s transformation initiatives, continued benefits of historical results into future periods, the realization of anticipated cost savings, the identification and undertaking of ongoing cost savings initiatives. By their nature, forward-looking information and statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks and uncertainties include, among others: competition from digital and other forms of media; the effect of economic conditions on advertising revenue; the ability of the Company to build out its digital media and online businesses; the failure to maintain current print and online newspaper readership and circulation levels; the realization of anticipated cost savings; possible damage to the reputation of the Company’s brands or trademarks; possible labour disruptions; possible environmental liabilities, litigation and pension plan obligations; fluctuations in foreign exchange rates and the prices of newsprint and other commodities. For a complete list of our risk factors please refer to the section entitled “Risk Factors” contained in our annual management’s discussion and analysis for the years ended August 31, 2025 and 2024. Although the Company bases such information and statements on assumptions believed to be reasonable when made, they are not guarantees of future performance and actual results of operations, financial condition and liquidity, and developments in the industry in which the Company operates, may differ materially from any such information and statements in this press release. Given these risks and uncertainties, undue reliance should not be placed on any forward-looking information or forward-looking statements, which speak only as of the date of such information or statements. Other than as required by law, the Company does not undertake, and specifically declines, any obligation to update such information or statements or to publicly announce the results of any revisions to any such information or statements. Postmedia Network Canada Corp. Consolidated Statements of Operations (UNAUDITED)   (In thousands of Canadian dollars, except per share amounts) For the three months ended For the year ended   August 31, 2025 August 31, 2024 August 31, 2025 August 31, 2024           Revenues         Advertising   46,363     43,115     207,841     185,134   Circulation   33,939     32,079     140,751     130,183   Parcel services   15,711     12,146     55,380     51,016   Other   5,211     5,817     27,504     29,588   Total revenues   101,224     93,157     431,476     395,921   Expenses         Compensation   29,212     19,734     134,060     124,780   Newsprint   2,428     2,825     10,581     11,597   Distribution   38,034     34,214     148,730     137,922   Production   10,286     8,881     44,407     40,405   Other operating   16,618     15,288     68,475     66,398   Operating income before depreciation, amortization, impairment and restructuring and other   4,646     12,215     25,223     14,819   Depreciation   3,127     3,772     12,930     16,272   Amortization   561     517     2,248     2,240   Impairment   14,996     -     16,497     -   Restructuring and other   19,738     3,843     24,255     9,144   Operating (loss) income   (33,776 )   4,083     (30,707 )   (12,837 ) Interest expense   10,509     9,965     42,439     37,179   Foreign currency exchange losses (gains)   332     (3,589 )   6,048     (1,177 ) Net financing expense relating to employee benefit plans   288     343     1,154     1,376   Loss (gain) on disposal of assets held for sale, property plant and equipment, right of use assets, and other assets   140     295     (2,567 )   156   (Gain) loss on derivative financial instruments and financial assets at fair value through profit and loss   (357 )   146     (526 )   (1,076 ) Loss on debt refinancing   -     -     -     367   Net loss after income taxes   (44,688 )   (3,077 )   (77,255 )   (49,662 )                     Earning (loss) per share         Basic and diluted $(0.45 ) $(0.03 ) $(0.78 ) $(0.50 )           Postmedia Network Canada Corp. Consolidated Statements of Financial Position (UNAUDITED)   (In thousands of Canadian dollars) As at August 31, 2025 As at August 31, 2024       Assets     Current Assets     Cash 3,278   2,454   Trade and other receivables 59,169   53,931   Assets held-for-sale -   2,560   Inventory 1,615   2,318   Prepaid expenses and other assets 6,449   8,522   Total current assets 70,511   69,785   Non-Current Assets     Property and equipment 22,986   35,089   Intangible assets 15,313   19,868   Right of use assets 14,543   19,783   Derivative financial instruments and other assets 4,672   4,399   Total assets 128,025   148,924         Liabilities and Deficiency     Current Liabilities     Accounts payable and accrued liabilities 53,312   38,509   Provisions 1,253   1,514   Contract Liabilities 16,127   16,716   Current portion of lease obligations 7,742   7,773   Total current liabilities 78,434   64,512   Non-Current Liabilities     Long-term debt 388,964   352,638   Employee benefit obligations and other liabilities 30,084   33,034   Lease obligations 12,775   19,345   Other long-term liabilities 16,753   1,216   Total liabilities 527,010   470,745         Deficiency     Capital stock 820,357   820,357   Contributed surplus 19,960   19,511   Deficit (1,239,302 ) (1,161,689 ) Total deficiency (398,985 ) (321,821 ) Total liabilities and deficiency 128,025   148,924   Postmedia Network Canada Corp. Consolidated Statements of Cash Flows (UNAUDITED)   (In thousands of Canadian dollars) For the three months ended   For the year ended   August 31, 2025   August 31, 2024 August 31, 2025 August 31, 2024 Cash Generated (Utilized) by:                 Operating Activities                 Net loss after income taxes (44,688 ) (3,077 ) (77,255 ) (49,662 ) Items not affecting cash:                 Depreciation 3,127   3,771   12,930   16,272   Amortization 561   518   2,248   2,240   Impairment 14,996   -   16,497   -   Loss on debt refinancing -   -   -   367   (Gain) loss on derivative financial instruments and financial assets at fair value through profit and loss (357 ) 146   (526 ) (1,076 ) Non-cash interest 9,453   9,554   39,189   34,312   Loss (Gain) on disposal of assets held for sale, property plant and equipment, right of use assets, and other assets 140   295   (2,567 ) 156   Change in fair value of contingent consideration 18,924   -   18,924   -   Non-cash foreign currency exchange losses (gains) 153   (5,996 ) 6,516   (3,028 ) Share-based compensation plans 37   214   449   814   Net financing expense relating to employee benefit plans 288   343   1,154   1,376   Employee benefit plan funding in excess of compensation expense (961 ) (777 ) (3,424 ) (3,169 ) Net change in non-cash operating accounts (4,590 ) (13,900 ) (2,121 ) (15,610 ) Cash flows (used in) from operating activities (2,918 ) (8,909 ) 12,014   (17,008 )                   Investing Activities                 Net proceeds from the sale of assets held-for-sale and other assets -   3,053   8,530   6,125   Purchases of property and equipment (253 ) (126 ) (770 ) (575 ) Purchases of intangible assets (650 ) (544 ) (1,815 ) (1,291 ) Acquisition, net of cash acquired -   (1,000 ) -   (1,000 ) Cash flows (used in) from investing activities (903 ) 1,383   5,945   3,259                     Financing activities                 Advances from asset-based lending facility 6,435   4,997   11,841   13,788   Repayment of asset-based lending facility -   -   (7,935 ) (6,347 ) Repayment of first lien senior secured notes -   -   (7,734 ) (699 ) Restricted cash -   -   -   6,968   Issuance of short-term promissory note -   5,000   -   5,000   Repayment of short term promissory note -   -   (5,000 ) -   Repayment of unsecured promissory notes -   -   -   (4,696 ) Repayment of senior secured asset-based revolving credit facility -   -   -   (14,500 ) Advances from senior secured asset-based revolving credit facility -   -   -   8,500   Repayment of senior secured notes -   -   -   (24,475 ) Issuance of first lien senior secured notes -   -   -   20,158   Issuance of asset-based lending facility -   -   -   15,393   Debt issuance costs -   111   -   (2,307 ) Repayment of contingent consideration (1,039 ) -   (2,082 ) -   Lease payments (1,557 ) (1,642 ) (6,225 ) (6,771 ) Cash flow (used in) from financing activities 3,839   8,466   (17,135 ) 10,012   Net change in cash for the period 18   940   824   (3,737 ) Cash at beginning of period 3,260   1,514   2,454   6,191   Cash at end of period 3,278   2,454   3,278   2,454   Supplemental disclosure of operating cash flows                 Interest paid 1,037   834    3,250   3,541             View source version on businesswire.com: https://www.businesswire.com/news/home/20251120419926/en/ Contacts: For more information: Media Contact Communications [email protected] Investor Contact John Bode Executive Vice President, Chief Financial Officer and Chief Transformation Officer [email protected] Source: Postmedia Network Canada Corp.