TORONTO, ONTARIO--(Marketwire - Jan 31, 2013) - Gateway Newstands, the largest operator of newstands in North America, today reiterated the superiority of its agreement to harmonize and extend its lease agreements for newstands, lotteries, cafes and bakeries with the Toronto Transit Commission (TTC) over a late, unsolicited bid from International News.
"Our deal is better in every way - and provides greater revenue to the TTC," said Michael Aychental, CEO of Gateway Newstands.
Aychental pointed out that the Gateway agreement actually amounts to $48.1-million, when an additional $6.4-million in cleaning costs, arranged by Gateway and paid by its suppliers directly to the TTC, is factored into the comparison.
The International bid in fact amounts to $42.87-million, when lost rental revenue to the TTC - due to transitional and construction costs that International would have to incur - is taken into account.
"In every respect," said Aychental, "the Gateway bid is far superior."
Aychental referred to a chart, which categorizes the major elements of the agreement, and compares Gateway''s proven credibility with International''s promises.
"The proof is there," said Aychental, "in black and white."
Gateway Newstands is the largest operator of newstands in North America, with more than 500 stores in transit - including subways, bus stations, train stations, other transit venues, office towers, shopping centres, hospitals, and other institutional venues. Where we are located, we pride ourselves on being a trusted and reliable partner.
GATEWAY REFUTES TRUE VALUE OF INTERNATIONAL OFFER
|Newstand Revenue||$48.1 Million ||$46.2 Million |
|Breakdown||Rent: $39.2 Million |
Signing Bonus: $1.5 Million
Capital Improvements: $1.0 Million
Contribution to Cleaning: $6.4 Million
|Lost Revenue||No Lost Revenue ||$1.3 Million-Loss of 2013/2014 Rent Revenue Increase |
$2.0 Million TTC Staff Estimate for conversion
|$3.3 Million Lost Revenue|
|TOTAL REVENUE||$48.1 Million||$42.9 Million|
|For TTC Customers||Continued service-No inconvenience||Minimum two years for permitting, design, approval and construction - plenty of inconvenience|
|Experience||30 year old company with more than 100 stores in the TTC, Go Transit, OC Transpo, VIA Rail and Chicago Transit Authority--more than 500 stores throughout North America||4 newstands in Vancouver Sky Train System; 2 in Chicago Transit Authority|
|Continued Service||Guarantees that all 65 outlets in the TTC will remain open, supported through volume rebate program||No such Program|