Torstar Corporation : Reports First Quarter 2020 Results

TORONTO, May 6, 2020 /CNW/ - Torstar Corporation (TSX:TS.B) today reported financial results for the first quarter ended March 31, 2020.

Highlights for the first quarter:

• The emergence of the COVID-19 pandemic and the resulting government measures for social distancing and the closure of non-essential businesses began to have a significant impact on advertising revenues late in the quarter. These trends have continued into April and have created significant pressure on advertising and flyer distribution revenues. In response to the continued impact of the COVID-19 pandemic on advertising revenues, we have undertaken a number of cost reduction initiatives which are further discussed in our MD&A for the three months ended March 31, 2020.
  
  
• We continued to make progress on the transformation of our business including digital subscription offerings, ending the first quarter with almost 90,000 subscribers with digital access including over 32,000 digital-only subscribers to our Daily Brands news sites, up from almost 80,000 subscribers and almost 28,000 digital-only subscribers at December 31, 2019. In addition, at the end of the first quarter we had over 7,700 subscribers to the e-editions of our Daily Brands newspapers.
  
  
• We now have over 370,000 registered users in the Community news sites, up from over 280,000 at December 31, 2019. During the quarter we announced an exclusive agreement with Innocode and launched a scalable digital platform in our first test market, North Bay, Ontario, as part of an innovative new project aimed at revitalizing local media in communities across Canada.
  
  
• Subsequent to the end of the first quarter, we expanded our suite of digital marketing products and services, through an exclusive agreement with Madwire, LLC in Canada. We now offer approximately ten additional digital advertising and marketing services to small and medium sized businesses in Canada, including to our roster of approximately 30,000 small and medium sized clients.
  
  
• During the first quarter of 2020, we sold the Hamilton property and received net cash proceeds of $24.7 million.
  
  
• We ended the first quarter of 2020 with $69.5 million of cash and cash equivalents and $9.1 million of restricted cash; Torstar has no bank indebtedness.
  
  
• Our operating revenue was $92.5 million in the first quarter of 2020, down $23.5 million or 20% relative to the first quarter of 2019. Excluding the impact of the closure of StarMetro print editions in late December 2019, first quarter operating revenues were down 17%. Our first quarter advertising revenues were impacted by the social distancing measures and the closure of non-essential businesses introduced in mid-March as a result of the COVID-19 pandemic.
  
  
• Our net loss attributable to equity shareholders was $23.5 million ($0.29 per share) in the first quarter of 2020. This compares to a net loss of $7.4 million ($0.09 per share) in the first quarter of 2019.
  
  
• Adjusted loss per share (see "non-IFRS measures") was $0.13 in the first quarter of 2020. This compares to an adjusted loss per share of $0.06 in the first quarter of 2019.
  
  
• Adjusted EBITDA (see "non-IFRS measures") was $2.6 million in the first quarter of 2020, down from $7.1 million in the first quarter of 2019 and included the benefit of $11.9 million of tax credits ($18.0 million in the first quarter of 2019). Excluding the tax credits, Adjusted EBITDA loss improved by $1.7 million, with the Daily Brands up $3.8 million, the Community Brands down $2.4 million and Corporate and Other up $0.3 million.

"In the first quarter, we continued to make good progress in our transformation.  We remain encouraged with the results of our focus on total subscriber revenue and in particular with the growth of our digital-only subscriber base and associated revenue. We were also pleased to have closed the sale of our Hamilton property for proceeds of almost $25 million. Subsequent to the end of the quarter, we took a step forward in expanding our suite of digital marketing products and services, through an exclusive agreement with Madwire, LLC, we now offer approximately ten additional digital advertising and marketing services to small and medium sized clients in Canada," said John Boynton, President and CEO of Torstar. "Adjusted EBITDA was $2.6 million in the quarter, with results in the quarter including the benefit of $11.9 million in digital media and journalism tax credits. Results in the quarter continued to reflect ongoing challenges in the print advertising market and towards the end of the quarter, the emergence of the COVID-19 pandemic and the resulting government measures for social distancing and the closure of non-essential businesses began to have a negative impact on advertising revenue. These trends have continued into April and have created significant pressure on advertising and flyer distribution revenues.  At the same time, digital traffic to our news sites has increased significantly,  and overall subscriber revenues have remained resilient. We have undertaken a number of cost reduction initiatives in response to these pressures on advertising revenues. We are monitoring our financial outlook closely and are developing plans to implement additional labour and other cost reductions depending on the length and severity of potential revenue declines."

OPERATING RESULTS – FIRST QUARTER 2020

The following chart provides a continuity of earnings (loss) per share from the first quarter of 2019 to the first quarter of 2020:

The following tables set out, in $000's, the results for the three months ended March 31, 2020 and 2019:

Operating revenue
Operating revenue was $92.5 million in the first quarter of 2020, down $23.5 million or 20%. Excluding the impact of the closure of StarMetro print editions in late December 2019, first quarter operating revenues were down 17%.  Subscriber revenues decreased 4% in the first quarter while flyer distribution revenues decreased 15% and digital advertising revenues were down 12%. On a same store basis, print advertising revenues were down 29% in the first quarter.

Our first quarter print and digital advertising revenues were impacted by the emergence of the COVID-19 pandemic and the resulting government measures for social distancing and the closure of non-essential businesses, which began in mid-March and continued into the second quarter.  Although overall print advertising revenue declines in the first quarter were 29% on a same store basis, the decline in the latter half of March was 58%. On the positive side, we have seen a significant increase in digital traffic to our news sites since the pandemic began.  We have also experienced a notable acceleration of digital-only and e-edition subscriptions since the middle of March, while our print subscriptions continue to be relatively resilient.

In response to the continued impact of the COVID-19 pandemic on advertising revenues, subsequent to the end of the quarter we have undertaken a number of cost reduction initiatives.  In addition, based on our revenue declines in March, we believe we will qualify for the first 2 periods (8 weeks) of the Canada Emergency Wage Subsidy program ("CEWS") and expect to receive approximately $12 million related to employee costs during those periods.  We also expect that we will qualify for the third period (4 weeks) of the wage subsidy which we expect to result in an additional subsidy of approximately $6 million.

The following charts provide a breakdown of operating revenue:

Salaries and benefits
Salaries and benefits costs were $31.7 million in the first quarter of 2020 and included the benefit of $10.4 million of digital media tax credits ($18.0 million in the first quarter of 2019) and $1.5 million in respect of a refundable labour tax credit for qualifying journalism organizations.  The digital media tax credits represent recoveries of previously incurred salary and benefit costs and relate to claims made in respect of prior years and not current year operations.

Excluding the digital media and journalism tax credits (together referred to as "tax credits"), salaries and benefit costs were down $14.9 million (26%) in the first quarter of 2020 reflecting the benefit of $10.3 million of savings from restructuring initiatives, including the outsourcing of printing of The Hamilton Spectator and other publications as well as the closure of StarMetro print editions in late December 2019.

Other operating costs
Other operating costs primarily include circulation/flyer distribution costs, newsprint costs, and other production costs, which represented 42%, 8%, and 10%, respectively, of other operating costs for the first quarter of 2020.  Other operating costs were down $10.7 million (16%) in the first quarter as a result of the lower costs associated with the closure of StarMetro print editions in late December 2019 as well as lower print volumes and the impact of other cost reductions.  These declines were partially offset by new costs associated with the outsourced printing of The Hamilton Spectator and other publications.

Adjusted EBITDA
Adjusted EBITDA was $2.6 million in the first quarter of 2020 compared to $7.1 million in the first quarter of 2019 and included the benefit of $11.9 million of tax credits ($18.0 million in the first quarter of 2019).  Excluding the tax credits, Adjusted EBITDA loss improved by $1.7 million, with the Daily Brands up $3.8 million, the Community Brands down $2.4 million and Corporate and Other up $0.3 million.

Amortization and depreciation
Total amortization and depreciation decreased $2.9 million in the first quarter of 2020 reflecting the impact of the reductions in the value of property, plant and equipment and intangible assets.

Restructuring and other charges
Total restructuring and other charges were $3.7 million in the first quarter of 2020 resulting from ongoing efforts to reduce costs.

Restructuring initiatives undertaken in the first three months of 2020 are expected to result in annualized net savings of $3.4 million associated with the reduction of approximately 85 positions.  A total of $2.3 million of savings are expected to be realized in 2020, with $0.1 million realized in the first three months.

Impairment of assets
In the first quarter of 2020, we incurred non-cash impairment charges of $19.2 million in the Community Brands segment, $4.4 million in the Daily Brands segment and $1.9 million related to eyeReturn in Corporate and Other. These charges have no impact on cash flows. 

The outbreak of COVID-19 presents significant measurement uncertainties associated with the length and severity of the pandemic on our operating results. This is in addition to ongoing revenue challenges in an industry which is being affected by continued structural changes, including uncertainty in the print advertising market and the dominance of the rapidly evolving digital advertising market by large global giants.  As a result of these uncertainties, we performed impairment tests on the carrying value of property, plant and equipment and intangible assets with a finite useful life for the Dailies, Communities and eyeReturn CGUs at March 31, 2020.  Based on this testing, we recorded an impairment charge of $13.2 million in respect of property, plant and equipment and $6.0 million in respect of intangible assets in the Community Brands segment.  In addition, we recorded a non-cash impairment charge of $4.4 million in respect of intangible assets in the Daily Brands segment and $1.9 million in respect of intangible assets in eyeReturn.

Operating loss
Operating loss was $30.5 million in the first quarter of 2020 compared to an operating loss of $3.6 million in the first quarter of 2019 with the decline primarily reflecting the above noted non-cash impairment charges.

Loss from associated businesses
Our loss from associated businesses was $10.4 million in the first quarter of 2020, compared to a loss of $5.7 million in the first quarter of 2019.

The loss in the first quarter of 2020 included losses of $7.2 million from VerticalScope (including $8.2 million of non-cash amortization and depreciation expense), $0.6 million from Blue Ant and $2.4 million from Black Press. The loss in the first quarter of 2020 includes a non-cash impairment charge of $2.0 million related to our investment in Black Press.  The loss in the first quarter of 2019 included losses of $5.1 million from VerticalScope (including $9.5 million of amortization and depreciation expense), $0.2 million from Black Press and $0.1 million from Blue Ant.

Other Income
During the first quarter of 2020, we recorded other income of $18.8 million primarily related to a gain on sale of the Hamilton property for net cash proceeds of $24.7 million.

OUTLOOK

We continued to experience a challenging print advertising market in the first quarter of 2020 resulting from ongoing shifts in spending by advertisers.  In addition, the emergence of the COVID-19 pandemic and the resulting government measures for social distancing and the closure of non-essential businesses began to have a significant negative impact on print and digital advertising revenues, late in the quarter. These trends have continued into April and in addition, flyer distribution revenues also began to experience similar declines.

Although overall print advertising revenue declines in the entire first quarter of 2020 were 29% on a same store basis, the decline in the latter half of March was 58%. Similar trends have continued into April. Flyer distribution revenues declined 27% in the latter half of March and this trend has deteriorated significantly in April with declines appearing to be more in line with our experience in print advertising.

Digital advertising revenue was down 12% through the end of the first quarter of 2020.  Digital advertising revenue declines have also accelerated into April although not to the same extent that we have experienced in print advertising and flyer distribution.  At the same time, we experienced a strong increase in digital traffic to our news sites beginning in March and continuing into April as users seek out credible COVID-19 related news and information, much of which we have made available outside of the paywall.

We believe the advertising revenue impact associated with COVID-19 will persist so long as the current government imposed business and social distancing restrictions remain in place and that trends will begin to improve with the easing of these closures and restrictions. However, it is difficult to predict for how long such conditions may persist and the extent of their impact on advertising revenues.

A positive development which began in April was an increase in print and digital advertising related to COVID-19 public service announcement spending by government agencies and some other advertisers.  This has helped to partially mitigate the impact of broad declines in advertising revenues but again, it is difficult to predict how long we may continue to benefit from these additional advertising campaigns.

Subscriber revenues declined modestly in the first quarter, with the benefit of growing digital-only subscription revenues being offset by modest declines in print subscription revenue. Print subscription revenue has not, thus far, been significantly impacted by the COVID-19 pandemic while digital-only subscription growth accelerated near the end of the quarter and has continued into April.  In the balance of 2020, we anticipate that modest declines in print subscription will continue and that these will be partially offset by growing digital-only subscription revenue resulting in modest declines in overall subscription revenue.

We expect the cost base in 2020 to benefit from $34.1 million of full year savings related to restructuring initiatives undertaken through the end of the first quarter of 2020 ($8.0 million in the Community Brands segment and $26.1 million in the Daily Brands segment), with $10.3 million of this benefit realized in the first quarter of 2020.  We also expect to benefit from $6.0 million of refundable tax credits for qualifying journalism organizations in 2020 ($1.6 million in the Community Brands segment and $4.4 million in the Daily Brands segment), with $1.5 million recognized in the first quarter.

In addition, in April we have taken a number of actions on costs in order to mitigate the impact of the COVID-19 pandemic on our business.  These include a permanent restructuring of approximately 85 positions in early April, which is expected to result in annualized savings of approximately $7.0 million (with an expected restructuring expense in the range of $5 million) as well as adjusting staffing levels in our distribution centres and printing plants, where necessary. We have also frozen discretionary spending which we anticipate will be approximately $5 million lower in 2020 than we previously expected. In addition, based on our revenue declines in March, we expect to receive approximately $12 million for the first 8 weeks of the wage subsidy under CEWS.  We also anticipate we will qualify for the remaining 4 weeks of the wage subsidy, with an additional estimated benefit of approximately $6 million.

From a cash flow perspective, we have reduced our planned capital spending for 2020 by approximately $7.5 million, down to approximately $6 million for the full year. In addition, at March 31, 2020 we had net receivables related to digital media tax credits totaling $22.9 million, approximately $15 million of which we anticipate receiving in the latter part of 2020, however the amount and timing of any cash realized is dependent upon the final review and approval by the Canada Revenue Agency.  We are also working closely with our vendors and landlords in an effort to obtain some relief from both prevailing cost arrangements as well as extending existing payment terms as we work to make similar accommodations for some of our advertising clients.

We are monitoring our financial outlook closely and are developing plans to implement additional labour and other cost reductions depending on the length and severity of potential revenue declines associated with the COVID-19 pandemic.

At VerticalScope, we also expect revenues will be negatively affected by the impact of the COVID-19 pandemic on advertising markets but it is difficult to predict for how long and by how much revenues will be affected.  VerticalScope has converted approximately 540 sites to the new technology platform as at the end of the first quarter representing approximately 45% of total traffic.  VerticalScope expects to convert the vast majority of the remaining sites by the end of the year and we are encouraged by the traffic and user engagement improvements experienced on sites converted to-date.  In response to the continued impact of the COVID-19 pandemic into the second quarter, management has undertaken a series of cost reduction initiatives which include layoffs and application for CEWS. We believe VerticalScope will qualify for at least the first two periods (8 weeks) of support. While EBITDA margins and cash flow from operations are expected to be negatively impacted by the current conditions, VerticalScope benefits from starting from a strong position prior to the disruption caused by the pandemic.

ADDITIONAL INFORMATION
For additional information, please refer to Torstar's condensed consolidated financial statements for the period ended March 31, 2020 (the "Condensed Consolidated Financial Statements") and the Interim 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 May 6, 2020 at 8:15 a.m. to discuss its first quarter results.  The dial-in number is 647-427-7450 or 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.

ANNUAL GENERAL MEETING
Torstar will be holding its Annual General Meeting at 10:00 a.m. on May 6, 2020.  The Annual General Meeting will be webcast live on the Presentations, Events and Conference Calls page (Investor Relations) at www.torstar.com. 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 page (Investor Relations) on the www.torstar.com website.

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, and more than 70 weekly community newspapers in Ontario; flyer distribution services: and digital properties including thestar.com (with local editions in Toronto, Vancouver, Calgary, Edmonton, Winnipeg, Ottawa and Halifax), wheels.ca, toronto.com, save.ca, a number of regional online sites and eyeReturn Marketing. It 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 10 of Torstar's MD&A for three months ended March 31, 2020 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 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). 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 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 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, 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 expectations regarding our transformation efforts, including our efforts to stabilize our core business, develop a more balanced mix of revenue streams, obtain and grow digital subscription and advertising revenue, add value to our audiences and collect and use data, reduce costs and identify efficiencies to offset key future expenditures, recognize value in investments and assets outside of our core business and increase shareholder value, deepen our digital relationship and engagement with consumers, and better serve our advertising clients, expectations relating to the potential impact of COVID-19 including the length and severity of the impact and our ability to implement additional labour and other cost savings, expectations relating to anticipated eligibility and subsidies related to the Canada Emergency Wage Subsidy program, expected savings including savings from restructuring initiatives and other cost reductions, estimates and expectations relating to impairment of assets, Torstar's outlook for 2020, including anticipated revenue trends, shifts in advertiser spending, digital traffic trends, subscription trends, anticipated capital and operating expenditures and potential cost reductions and savings, as well as anticipated technological changes, revenue, traffic and user engagement trends, EBITDA margins and cash flow, expectations regarding the impact of COVID-19 and eligibility for the Canada Emergency Wage Subsidy program and expectations regarding cost reductions at VerticalScope, expectations relating to anticipated eligibility and benefits related to refundable tax credits for qualifying journalism organizations and the anticipated timing and amount of digital media tax credits.  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: force majeure events; 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 used by search, social media and other technology companies; 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; and control of Torstar by the Voting Trust.

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; and successful development and launch of strategic initiatives and new products. 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, and the Management's Discussion & Analysis for the three months ended March 31, 2020, which have been filed on www.sedar.com and are available on Torstar's corporate website www.torstar.com.

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

SOURCE Torstar Corporation

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