Postmedia Reports First 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 months ended November 30, 2025. “Our first quarter performance marks a solid start as we build momentum and continue to advance our fiscal 2026 priorities,” said Andrew MacLeod, Postmedia President and Chief Executive Officer. “In a challenging operating environment, growth in parcels and other revenue highlights the importance of diversification, and the steps we are taking to build more robust revenue streams. This includes the performance of our flyer business, where investment in our distribution network enabled us to bridge the gap during the Canada Post strike, ensuring that Canadian businesses and households were not left without the service they rely on.” “Our results this quarter reflect the benefits of structural changes made over the past year and our continued focus on disciplined cost management,” MacLeod added. “As we move forward, we remain focused on strengthening our core operations, investing in new growth areas and positioning the company for long term resilience.” First Quarter Operating Results Revenue for the quarter was $111.9 million as compared to $110.3 million in the same period in the prior year, representing an increase of $1.6 million (1.5%). The revenue increase was primarily due to increases in parcel revenue of $3.6 million (27.1%) and other revenue of $0.3 million (6.4%), partially offset by decreases in circulation revenue of $2.2 million (6.2%). Total operating expenses excluding depreciation, amortization, impairment and restructuring and other increased $2.0 million, or 1.9%, for the quarter ended November 30, 2025, relative to the same period in the prior year. The increase relates to increased compensation, distribution and production expenses, partially offset by decreases in newsprint and other operating expenses. Operating income before depreciation, amortization, impairment and restructuring and other in the quarter was $5.1 million, a decrease of $0.4 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 total revenue, partially offset by an increase in operating expenses excluding depreciation, amortization, impairment and restructuring and other. Net loss in the quarter ended November 30, 2025 was $20.4 million, as compared to a net loss of $24.5 million in the same period in the prior year. The decrease in net loss was primarily the result of a decrease in amortization, restructuring and other expenses, and a decrease in foreign currency exchange losses, partially offset by an increase in interest expense, and a decrease in gains on derivative financial instruments and financial assets at fair value through profit and loss. 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     November 30, 2025   November 30, 2024           Revenues         Advertising   56,437   56,473 Circulation   33,720   35,936 Parcel services   16,706   13,149 Other   5,012   4,712 Total revenues   111,875   110,270 Expenses         Compensation   36,007   35,608 Newsprint   2,542   2,872 Distribution   39,127   37,514 Production   11,919   10,639 Other operating   17,185   18,167 Operating income before depreciation, amortization, impairment and restructuring and other   5,095   5,470 Depreciation   3,128   3,419 Amortization   560   556 Impairment   188   - Restructuring and other   1,055   2,026 Operating income (loss)   164   (531) Interest expense   11,458   10,743 Foreign currency exchange losses   8,201   12,914 Net financing expense relating to employee benefit plans   262   289 Loss on disposal of right of use assets   110   250 Loss (gain) on derivative financial instruments and financial assets at fair value through profit and loss   512   (242) Net loss after income taxes   (20,379)   (24,485)                     Loss per share         Basic and diluted   $(0.21)   $(0.25)           Postmedia Network Canada Corp. Consolidated Statements of Financial Position (UNAUDITED)   (In thousands of Canadian dollars)   As at November 30, 2025   As at August 31, 2025           Assets         Current Assets         Cash   5,330   3,278 Trade and other receivables   66,671   59,169 Inventory   1,497   1,615 Prepaid expenses and other assets   6,439   6,449 Total current assets   79,937   70,511 Non-Current Assets         Property and equipment   21,206   22,986 Intangible assets   15,101   15,313 Right of use assets   13,833   14,543 Derivative financial instruments and other assets   4,103   4,672 Total assets   134,180   128,025           Liabilities and Deficiency         Current Liabilities         Accounts payable and accrued liabilities   73,341   53,312 Provisions   1,124   1,253 Contract Liabilities   15,256   16,127 Current portion of lease obligations   7,753   7,742 Total current liabilities   97,474   78,434 Non-Current Liabilities         Long-term debt   398,470   388,964 Employee benefit obligations   29,933   30,084 Lease obligations   11,672   12,775 Other long-term liabilities   16,046   16,753 Total liabilities   553,595   527,010           Deficiency         Capital stock   820,357   820,357 Contributed surplus   20,411   19,960 Deficit   (1,260,183)   (1,239,302) Total deficiency   (419,415)   (398,985) Total liabilities and deficiency   134,180   128,025 Postmedia Network Canada Corp. Consolidated Statements of Cash Flows (UNAUDITED)   (In thousands of Canadian dollars)   For the three months ended     November 30, 2025   November 30, 2024           Cash Generated (Utilized) by:         Operating Activities         Net loss after income taxes   (20,379)   (24,485) Items not affecting cash:         Depreciation   3,128   3,419 Amortization   560   556 Impairment   188   - Loss (gain) on derivative financial instruments and financial assets at fair value through profit and loss   512   (242) Non-cash interest   10,935   9,822 Loss on disposal of right of use assets   110   250 Non-cash foreign currency exchange losses   7,758   12,951 Share-based compensation plans   451   168 Net financing expense relating to employee benefit plans   262   289 Employee benefit plan funding in excess of compensation expense   (646)   (761) Net change in non-cash operating accounts   1,599   7,523 Cash flows from operating activities   4,478   9,490           Investing Activities         Purchases of property and equipment   (242)   (127) Purchases of intangible assets   (348)   (376) Cash flows used in investing activities   (590)   (503)           Financing activities         Advances from asset-based lending facility   2,105   1,376 Repayment of asset-based lending facility   (1,422)   - Repayment of short term promissory note   -   (5,000) Repayment of contingent consideration   (920)   - Lease payments   (1,599)   (1,614) Cash flow used in financing activities   (1,836)   (5,238)           Net change in cash for the period   2,052   3,749 Cash at beginning of period   3,278   2,454 Cash at end of period   5,330   6,203 Supplemental disclosure of operating cash flows       Interest paid   523   921   View source version on businesswire.com: https://www.businesswire.com/news/home/20260112734713/en/ Contacts: 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.