Business
TransForce Announces Increased Revenues in First Quarter
- Increased revenues to $526.3 million - Increased EBITDA to $56.9 million - Announced intention ...
About this update from Tfi International Inc.
[{"type":"text","content":"\n\n\n\n- Increased revenues to $526.3 million\n\n\n- Increased EBITDA to $56.9 million\n\n\n- Announced intention to convert from an income fund to a corporation\n\n\nMONTREAL, April 30 /CNW Telbec/ - TransForce Income Fund (TSX: TIF.UN),\nthe leader in the Canadian transportation and logistics industry, today\nannounced improved results for the first quarter of 2008, ended March\n31, 2008.\n\n\nIn the first three months of 2008, TransForce delivered increased\nrevenues and EBITDA while operating in a very challenging economic\nenvironment. As customers continue to adjust to the relative strength of the\nCanadian dollar, demand has softened, decreasing volumes and putting downward\npressure on pricing in most segments. Already high fuel costs continued to\nrise throughout the quarter. In addition, weather conditions were more extreme\nthan usual during the first three months of the year, which caused delays and\nsome loss of productivity.\n\n\nDespite these challenges, the Fund increased revenues 13% to\n$526.3 million from $464.8 million in the first quarter of 2007. EBITDA\n(earnings before interest, taxes, depreciation and amortization and equivalent\nto operating income on TransForce's financial statements) also increased to\n$56.9 million from $52.7 million during the year-earlier period. Significant\nacquisitions contributed $4.9 million of EBITDA in the first quarter of 2008.\nThe Fund also reported a non-recurring $4.5 million contribution to EBITDA in\nthe quarter, resulting from a favourable class-action settlement from prior\nyears which was confirmed by the Supreme Court of Canada.\n\n\nCash flow from operating activities, before the net change in non-cash\nworking capital balances was $45.7 million, an increase from $45.1 million in\nthe first quarter of 2007.\n\n\nDistributable cash from operating activities was steady year-over-year\nwith $45.1 million in distributable cash from operating activities generated\nin the first quarter of 2008 compared with $45.6 million generated in same\nperiod of 2007. The Fund's regular distribution payout ratio, or cash\ndistributed as a percent of cash available for distribution, was 90.5%, a\ndecrease from 102.2% in the first quarter of 2007.\n\n\n"Although we are operating in the toughest economic climate in at least a\ndecade, TransForce has generated growth across most ...