Business
TransForce Inc. Announces Third Quarter Results
TransForce Inc. Announces Third Quarter Results
About this update from Tfi International Inc.
[{"type":"text","content":"\n\n\n\nOct. 23, 2009 (Canada NewsWire Group) -- MONTREAL, Oct. 23 /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 third quarter, ended September 30, 2009.\"By focusing on cost containment and operating efficiency, we were able to maintain our EBITDA margin, despite lower revenues resulting from current weak economic conditions; EBITDA as a percentage of revenue was 13.7%, virtually unchanged from the third quarter of 2008,\" said Alain Bédard, Chairman, President and Chief Executive Officer of TransForce Inc. \"We are carefully managing those parts of our business that we can control. We reduced fixed costs and administrative expenses by $13.8 million in the quarter which kept them to 16% of revenue. Our efficiency continues to serve shareholders during this difficult period and positions us strongly for the eventual economic recovery.\"Third Quarter ResultsFor the three months ended September 30, 2009, TransForce reported total revenues of $451.4 million, a 24% decrease from $595.5 million in the same period of 2008. Revenue excluding fuel surcharge decreased 18% to $418.9 million. The year-over-year decrease in revenue is mainly the result of the continuing low economic activity.EBITDA (earnings before interest, taxes, depreciation and amortization and equivalent to operating income on TransForce's financial statements) decreased 25% to $62.0 million in the third quarter from $82.3 million in the third quarter of 2008. EBITDA margin (EBITDA as a percentage of revenue) was 13.7% in the quarter, consistent with 13.8% in the same period of 2008.Cash flow from operations, before net changes in non-cash working capital balances related to operations, was $51.9 million compared with $66.9 million in the third quarter of 2008.TransForce's earnings before income taxes were $25.2 million, compared with $38.4 million in the third quarter of 2008.Interest expense decreased to $8.2 million from $12.3 million in the same period of 2008, primarily as a result of the Company's actions to reduce debt, as well as lower interest rates.Net income was $17.0 million, or $0.19 per share, compared with $26.5 million, or $0.31 per share, in the third quarter of 2008.During the quarter, TransForce paid out a d...