Business
TransForce Inc. Announces 2009 Fourth Quarter and Annual Results
TransForce Inc. Announces 2009 Fourth Quarter and Annual Results
About this update from Tfi International Inc.
[{"type":"text","content":"\n\n\n\nFeb. 25, 2010 (Canada NewsWire Group) -- MONTREAL, Feb. 25 /CNW Telbec/ -- TransForce Inc. (\"TransForce\" or \"the Company\") (TSX: TFI - T), the leader in the Canadian transportation and logistics industry, today announced its results for the fourth quarter and full year, ended December 31, 2009.\"Continuing weak economic activity affected revenues in the fourth quarter. Our success in reducing costs maintained EBITDA margin at 12.3%,\" said Alain Bédard, Chairman, President and Chief Executive Officer of TransForce Inc. \"We began our cost-reduction effort in 2007 in anticipation of the general economic slowdown and have remained focused on our controls since then. The economy is now expected to recover over the coming months and TransForce is well-positioned to turn higher activity into enhanced results for our shareholders.\"Fourth Quarter ResultsFor the three months ended December 31, 2009, TransForce reported total revenues of $488.6 million, a 10.3% decrease from $544.5 million in the same period of 2008. Revenue excluding fuel surcharge decreased 6.8% to $452.4 million. The year-over-year decrease in revenue is mainly the result of the continuing low economic activity and its effect on volume of shipments.TransForce's continued focus on efficiency reduced operating expenses and fixed costs, general and administrative expenses by 9.1% to $427.7 million in the quarter from $470.7 million a year earlier.In the fourth quarter, EBITDA (earnings before interest, taxes, depreciation and amortization and equivalent to operating income on TransForce's financial statements) decreased 18.4% to $60.3 million from $73.8 million in the same quarter of 2008. EBITDA as a percentage of revenue (\"EBITDA margin\") was 12.3% in the quarter, down somewhat from 13.6% in the fourth quarter of 2008 but consistent with previous quarters in 2009.Interest expense decreased to $7.8 million from $11.3 million a year earlier, primarily as a result of TransForce's continuing significant reduction of debt as well as lower interest rates.At December 31, 2009, the Company recognized a goodwill impairment of $45.0 million, or $0.47 per share, (\"non-recurring charge\") in the oilfield services group of the Specialized Services segment. A write-down of goodwill is a non-cash charge on the consolidated statement of income and has no effect on...