- Acquires Roland Thibault Inc.
- Increases Ownership of Lafleche Environmental Complex
- Reaffirms 2008 Year-End EBITDA Guidance of $275 to $280 Million
MONTREAL, Oct. 21 /CNW Telbec/ - TransForce Inc. (TSX: TFI) the leader in the Canadian transportation and logistics industry, today announced it has completed two transactions designed to increase the strength of Matrec, the Company's waste management division.
TransForce has today completed the acquisition of Roland Thibault Inc., based in Granby region, Quebec. The Company specializes in the collection, transportation and disposal of non-hazardous solid waste and has recently completed the permitting process, with the Quebec Ministry of the Environment, for the construction of a 6.8 million cubic meter expansion of its site. This expansion will conform to new Ministry landfill regulations and will be constructed using the latest technology. At current annual volumes, the landfill site will satisfy local business and municipal waste disposal needs for at least 40 years. The Company also plans to institute a number of recycling initiatives that will divert waste from landfills and further contribute to meeting the local municipalities' diversion goals as set out in their waste management master plan (Plan de Gestion des Matieres Residuelles du Quebec).
TransForce also announced that it has increased its ownership position in Lafleche Environmental Inc.'s landfill and environmental complex, located in Moose Creek, Ontario, from 37.5% to 50%. Over recent years, TransForce has worked closely with its partner at Lafleche to promote a number of recycling activities including the treatment of contaminated soils, generation of electricity from refuse-derived fuel and, most recently, the construction of a composting facility. Landfilling of waste is progressively becoming a means of last resort at the multi-faceted Moose Creek environmental facility, and it will serve as a model for other operations, including the landfill site owned by Thibault.
These investments and others, including the current $7 million retooling of Matrec's St. Hubert, Quebec recycling plant, are part of a process that commenced three years ago to modernize Matrec's equipment and infrastructure. The installation of leading edge technology at St Hubert will solidify Matrec's competitive position in the Montreal marketplace for single stream processing of household and business recyclables.
"Our Matrec division has made increasingly significant contributions to TransForce. It is focused on controlling costs associated with the disposal of its waste which, in the past, have represented approximately 50% of Matrec's operating expenses," said Alain Bedard, TransForce's Chairman and CEO. "We believe the addition of the Thibault landfill and management team, in addition to the increased ownership stake in Lafleche, will greatly enhance Matrec's cost-control efforts and make it an even stronger competitor in its market."
Year End Guidance
Because the 2008 results will be the first annual results to be reported since the conversion of TransForce from an income fund to a corporation in May of this year, TransForce is providing investors with guidance on its anticipated EBITDA (earnings before interest, taxes, depreciation and amortization and equivalent to operating income on TransForce's financial statements). TransForce reaffirms its 2008 year-end EBITDA guidance of $275 million to $280 million as disclosed on March 27, 2008. The Company will issue its financial results for the third quarter, ended September 30, 2008, via news release on October 30, 2008.
Profile
TransForce Inc. (www.transforce.ca) is the leader in Canada's transportation and logistics industry. Headquartered in Montreal, Quebec, TransForce creates value for shareholders through managing and investing in a growing network of wholly-owned operating subsidiaries. TransForce provides a comprehensive and unique combination of capabilities, resources and geographical coverage in both domestic and trans-border markets. Its companies currently operate in five well-defined business segments:
- Less-Than-Truckload; - Package and Courier; - Specialized Services, which includes its ancillary transportation services such as logistics, warehousing & dedicated services, fleet management & personnel services; oilfield & oilsand services, and waste management; - Specialized Truckload, and; - Truckload.
TransForce's shares (TFI-T) are listed on the Toronto Stock Exchange.
Forward-Looking Statements
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of TransForce. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for TransForce's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
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