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Note: All dollar amounts are expressed in Canadian dollars unless otherwise specified.
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About Postmedia Network Canada Corp.
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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.
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Forward-Looking Information
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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.
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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.
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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 nine months ended | ||
May 31, 2026 | May 31, 2025 | May 31, 2026 | May 31, 2025 | |
Revenues | ||||
Advertising | 48,596 | 54,962 | 150,252 | 161,478 |
Circulation | 34,121 | 35,826 | 100,375 | 106,812 |
Parcel services | 14,863 | 12,764 | 48,814 | 39,669 |
Product distribution | 41,194 | – | 41,194 | – |
Other | 7,896 | 5,610 | 27,862 | 22,293 |
Total revenues | 146,670 | 109,162 | 368,497 | 330,252 |
Expenses | ||||
Product cost of sales | 33,612 | – | 33,612 | – |
Compensation | 39,961 | 35,052 | 108,419 | 104,848 |
Newsprint | 2,099 | 2,769 | 7,000 | 8,153 |
Distribution | 39,898 | 36,179 | 116,910 | 110,696 |
Production | 10,106 | 13,089 | 31,700 | 34,121 |
Other operating | 18,437 | 16,754 | 52,495 | 51,857 |
Operating income before depreciation, amortization, impairment and restructuring and other | 2,557 | 5,319 | 18,361 | 20,577 |
Depreciation | 10,868 | 3,163 | 17,118 | 9,803 |
Amortization | 853 | 577 | 1,983 | 1,687 |
Impairment | – | – | 1,755 | 1,501 |
Restructuring and other | 9,950 | 1,016 | 12,280 | 4,517 |
Operating (loss) income | (19,114) | 563 | (14,775) | 3,069 |
Interest expense | 11,617 | 10,703 | 34,231 | 31,930 |
Foreign currency exchange losses (gains) | 4,206 | (18,191) | 1,679 | 5,716 |
Net financing expense relating to employee benefit plans | 262 | 289 | 787 | 866 |
Loss (gain) on disposal of right of use assets and assets held for sale | – | 119 | 23 | (2,707) |
Loss (gain) on derivative financial instruments and financial assets at fair value through profit and loss | 156 | (262) | 766 | (169) |
Net (loss) income after income taxes | (35,355) | 7,905 | (52,261) | (32,567) |
(Loss) earnings per share | ||||
Basic and diluted | ($0.36) | $0.08 | $(0.53) | $(0.33) |
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Postmedia Network Canada Corp. Consolidated Statements of Financial Position (UNAUDITED) | ||
(In thousands of Canadian dollars) | As at May 31, 2026 | As at August 31, 2025 |
Assets | ||
Current Assets | ||
Cash | 7,465 | 3,278 |
Trade and other receivables | 59,226 | 59,169 |
Assets held-for-sale | 4,263 | – |
Inventory | 49,156 | 1,615 |
Prepaid expenses and other assets | 7,211 | 6,449 |
Total current assets | 127,321 | 70,511 |
Non-Current Assets | ||
Property and equipment | 6,789 | 22,986 |
Intangible assets | 20,164 | 15,313 |
Right of use assets | 18,324 | 14,543 |
Derivative financial instruments and other assets | 4,892 | 4,672 |
Total assets | 177,490 | 128,025 |
Liabilities and Deficiency | ||
Current Liabilities | ||
Accounts payable and accrued liabilities | 116,904 | 53,312 |
Provisions | 10,576 | 1,253 |
Contract liabilities | 19,843 | 16,127 |
Current portion of lease obligations | 10,335 | 7,742 |
Total current liabilities | 157,658 | 78,434 |
Non-Current Liabilities | ||
Long-term debt | 408,785 | 388,964 |
Employee benefit obligations | 28,186 | 30,084 |
Lease obligations | 13,659 | 12,775 |
Other long-term liabilities | 18,191 | 16,753 |
Total liabilities | 626,479 | 527,010 |
Deficiency | ||
Capital stock | 820,357 | 820,357 |
Contributed surplus | 22,488 | 19,960 |
Deficit | (1,291,834) | (1,239,302) |
Total deficiency | (448,989) | (398,985) |
Total liabilities and deficiency | 177,490 | 128,025 |
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Postmedia Network Canada Corp. Consolidated Statements of Cash Flows (UNAUDITED) | ||||
(In thousands of Canadian dollars) | For the three months ended | For the year ended | ||
May 31, 2026 | May 31, 2025 | May 31, 2026 | May 31, 2025 | |
Cash Generated (Utilized) by: | ||||
Operating Activities | ||||
Net (loss) income after income taxes | (35,355) | 7,905 | (52,261) | (32,567) |
Items not affecting cash: | ||||
Depreciation | 10,868 | 2,037 | 17,118 | 6,358 |
Amortization | 853 | 1,703 | 1,983 | 5,132 |
Impairment | – | – | 1,755 | 1,501 |
Loss (gain) on derivative financial instruments and financial assets at fair value through profit and loss | 156 | (262) | 766 | (169) |
Non-cash interest | 10,740 | 9,970 | 31,640 | 29,736 |
Loss (gain) on disposal of right of use assets and assets held for sale | – | 119 | 23 | (2,707) |
Non-cash foreign currency exchange losses (gains) | 4,140 | (17,744) | 1,473 | 6,363 |
Share-based compensation plans | 172 | 162 | 602 | 412 |
Net financing expense relating to employee benefit plans | 262 | 289 | 787 | 866 |
Employee benefit plan funding in excess of compensation expense | (771) | (904) | (2,132) | (2,461) |
Net change in non-cash operating accounts | 19,259 | (738) | 20,987 | 2,468 |
Cash flows from operating activities | 10,324 | 2,537 | 22,741 | 14,932 |
Investing Activities | ||||
Net proceeds from the sale of assets held-for-sale and other assets | – | 2,900 | – | 8,530 |
Purchases of property and equipment | (734) | (170) | (1,292) | (517) |
Purchases of intangible assets | (1,594) | (43) | (3,876) | (1,165) |
Purchases of other assets | (250) | – | (250) | – |
Acquisition, net of cash acquired | (1,233) | – | (1,233) | – |
Cash flows (used in) from investing activities | (3,811) | 2,687 | (6,651) | 6,848 |
Financing activities | ||||
Advances from asset-based lending facility | 6,000 | 1,665 | 12,432 | 5,406 |
Repayment of asset-based lending facility | (7,000) | (4,783) | (15,313) | (7,935) |
Repayment of short term promissory note | – | – | – | (5,000) |
Repayment of first lien senior secured notes | – | (2,804) | – | (7,734) |
Repayment of contingent consideration | (859) | (371) | (3,479) | (1,043) |
Lease payments | (2,243) | (1,539) | (5,543) | (4,668) |
Cash flow used in financing activities | (4,102) | (7,832) | (11,903) | (20,974) |
Net change in cash for the period | 2,411 | (2,608) | 4,187 | 806 |
Cash at beginning of period | 5,054 | 5,868 | 3,278 | 2,454 |
Cash at end of period | 7,465 | 3,260 | 7,465 | 3,260 |
Supplemental disclosure of operating cash flows | ||||
Interest paid | 877 | 733 | 2,591 | 2,194 |
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