Another train wreck of a Quarter Hi All,
It was appropriate to release these results on Halloween.
This 3rd quarter continues the disastrous performance of Torstar on virtually every dimension. Boynton states that every launch of their transformation initiatives has exceeded expectations. That comment goes right off the Pinocchio scale unless they had no expectations at all. The list of initiatives is neither transformative nor likely to change the trajectory of Torstar. Anyone listening to the analyst call would be left with an ominous sense of dread as this gang doesn’t have the foggiest notion of what is going on or how they are going to turn around the business.
The CFO claims he can’t break out the organic decline at VertigoScope when asked by an analyst. They know how much was contributed by the acquisitions and therefore the math isn’t all that difficult. It was down double digits last quarter, so I expect it continued that same awful trend. He made the mistake of disclosing that information in Q2 and most surely got his knuckles rapped for being a bit too transparent for the analysts who need to work with real numbers.
VS achieving 3% revenue growth in the quarter while debt net of cash has grown by $38.5 million US in the year is pitiful. They claim to be pretty happy with the VS partnership and still bullish on the business. Almost certain I would not share that same level of enthusiasm after investing nearly $200 million for 56% of a seriously declining business. Another Pinocchio moment to be sure.
If the Voting Trust isn’t apoplectic by now they should have someone check their vital signs. It is obvious that hiring a marketing guy with no media experience or CEO experience and coupling him with an unqualified CFO completely out of his depth is an incredible mistake. It may be time for a Christmas wakeup letter to the Voting Trust. I can’t imagine what the Board meetings are like, but at this stage, even the near comatose have to see the writing on the wall.
The Voting Trust should be sending a gift basket to Prem Watsa and hoping that he wasn’t listening to the Q3 call. That's their only escape from this mess.