TORONTO, May 24, 2019 /CNW/ - Torstar Corporation today announced it will close its Hamilton printing and mailroom operations at 44 Frid Street on or about August 24, 2019. The printing work currently performed at the Hamilton facility will be transferred to TC Transcontinental Printing and other Torstar-owned facilities as well as other external printers. In connection with this decision Torstar has also extended its printing arrangements with TC Transcontinental Printing to 2024.

This decision will affect approximately 73 full-time and 105 part-time staff. The move is expected to result in savings of approximately $4 million to $6 million annually once fully implemented. Torstar expects to record a restructuring charge in the range of approximately $6 million in connection with the closure.  

In connection with this decision, Torstar will commence exploration of the sale of the Hamilton property. If the property is sold, Torstar anticipates that The Hamilton Spectator will continue to operate a head office in a new location in the Hamilton area

Delivery of The Hamilton Spectator and other publications currently printed at the Hamilton facility will continue under their current arrangements.

"This was a difficult but necessary decision in order to operate more efficiently," John Boynton, President and CEO of Torstar Corporation, said.  "This is in no way a reflection of the print and mailroom quality at the Hamilton facility, but rather a decision based on aging presses and more cost-effective alternatives."

"The Spectator is a strong news brand with a great history and future and we are committed to remaining in Hamilton and fully supporting the community," Boynton added.

"The move is expected to generate significant cost-savings, which will give us the opportunity to focus more of our efforts on creating great editorial content and engaging customers in both our print and digital news outlets," Boynton said. "Unfortunately, though, it also means saying goodbye to our Hamilton production facility employees."

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: StarMetro newspapers in several Canadian cities; and more than 80 weekly community newspapers in Ontario; flyer distribution services: and digital properties including thestar.com, 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.

Forward-looking statements:
This press release contains forward-looking statements related to the closure of Torstar's Hamilton printing and mailroom operations and the transfer of its Hamilton printing work including, among others, forward looking statements that reflect management's expectations regarding the date of closure of the affected operations; the transfer of printing work to third parties and other Torstar-owned facilities; associated restructuring charges and cost savings; the potential sale of the Hamilton property and Torstar's future presence in Hamilton. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "will", "believe", "expect", "anticipate" and similar expressions. 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 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. Torstar cautions 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 the risk that the closure of the printing and mailroom operations and commencement of the corresponding transferred work may be delayed, of unanticipated costs associated with the transferred work or the closure of the Hamilton printing plant, of labour disruption and reliance on Transcontinental Printing and other third parties' printing operations. In addition, a number of assumptions were applied in making the forward-looking statements set forth in this press release. Some of the key assumptions include, without limitation, assumptions regarding expected future liabilities, costs and savings. There is a risk that some or all of these assumptions may prove to be incorrect.

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 2018 Management's Discussion & Analysis included in Torstar's 2018 Annual Report, and Torstar's Management's Discussion & Analysis for the three months ended March 31, 2019, which have been filed on www.sedar.com and are available on Torstar's corporate website www.torstar.com.

SOURCE Torstar Corporation

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