- $452.4 million in revenues - EBITDA of $44.5 million - EPS of $0.04 per share
MONTREAL, April 24 /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 first quarter, ended March 31, 2009.
"While our revenues decreased, we have always been focused on efficiency and this has helped to maintain margins near historical levels. We have taken action to further reduce equipment and staffing costs in the face of an economic downturn that was deeper and more sudden than expected. The slowdown affected three of TransForce segments in the first quarter, but Package and Courier performed well, holding revenues even with a year earlier," said Alain Bedard, President and Chief Executive Officer of TransForce Inc. "We are managing through this period and are working to remain as profitable as possible and to position our businesses to participate fully in the inevitable recovery."
First Quarter Results
For the three months ended March 31, 2009 revenues were $452.4 million compared with $526.3 million in the same period of 2008, a decrease of 14%. Revenues excluding fuel surcharges were $422.2 million compared with $469.5 million in the same period of 2008, a decrease of 10%.
EBITDA (earnings before interest, taxes, depreciation and amortization and equivalent to operating income on TransForce's financial statements) was $44.5 million in the quarter, compared with $56.9 million in the first quarter of 2008, when a favourable class-action settlement increased EBITDA by $4.5 million. Excluding the one-time $4.5 million increase in the first quarter of 2008, first quarter 2009 EBITDA decreased by 15%. Year over year EBITDA margin remained steady.
Cash flow from operations, before net changes to non-cash working capital balances related to operations, was $33.0 million compared with $45.7 million in the first quarter of 2008.
TransForce's earnings before income taxes were $4.3 million compared with $17.4 million in the first quarter of 2008.
Earnings per share were $0.04 per share compared with $0.22 per share in the same period of 2008.
During the quarter, TransForce paid out a dividend of $0.10 per share.
"Our immediate focus continues to be operating efficiency, increasing productivity, and adjusting to demand, .Although year-over-year revenues have declined, we have lowered costs in the past several quarters and I expect that we will see further results from these efforts as 2009 progresses," said Mr. Bedard. "Debt reduction is a priority, but we will continue to monitor the marketplace for opportunities to make smaller, tuck-in acquisitions as part of our longer-term strategy."
Annual and Special Meeting of Shareholders
TransForce reminds investors that it will host its Annual and Special Meeting of Shareholders later today, Friday, April 24, 2009.
TransForce invites shareholders, analysts and portfolio managers to attend. At the meeting, Alain Bedard, Chairman, President and Chief Executive Officer of TransForce will discuss the 2008 results and the outlook for 2009.
Details of Annual and Special Meeting of Shareholders:
Date: Friday, April 24, 2009
Time: 1:30 pm. ET
Location: TSX Gallery, 130 King Street West, Toronto, ON
First Quarter Management Conference Call
TransForce will host a conference call for investors to discuss the results of the first quarter of 2009 on Monday, April 27, 2009, at 9:00 Eastern Time. Participating from the Company will be Alain Bedard, Chairman, President and Chief Executive Officer, and Salvatore Vitale, Chief Financial Officer.
To participate in the conference call, investors are invited to call 1-800-954-1053. A recording of the call will be available until 12:00 a.m., May 4, 2009, by dialing 1-800-558-5253 or 416-626-4100 and entering passcode 21422220.
Financial Statements
The financial statements for the periods ended March 31, 2009 and 2008 included below are an integral part of this news release.
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 four 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; - Truckload, which includes specialized truckload services.
TransForce Inc. shares are listed on the Toronto Stock Exchange under the symbol TFI.
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.
For further details, please see the Financial Statements below. The Financial Statements and Management's Discussion and Analysis can also be found on SEDAR at www.sedar.com and on the Company's website www.transforce.ca.
CONSOLIDATED STATEMENTS OF INCOME Three months Three months
(unaudited) ended ended
(In thousands of dollars, except March 31, March 31,
per unit amounts) 2009 2008
Revenues 422,249 469,510
Fuel surcharge revenues 30,131 56,748
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Total revenues 452,380 526,258
Expenses
Operating expenses 322,553 386,687
Fixed costs, general and administrative
expenses 85,320 81,245
Incentive plan expense - 1,447
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Operating income before the following: 44,507 56,879
Depreciation of fixed assets 26,554 25,053
Amortization of intangible assets 4,368 4,021
Interest on long-term debt 9,888 11,440
Unrealized gain on interest rate swap
contracts (295) -
Gain on disposal of fixed assets (271) (1,051)
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Income before provision for income taxes 4,263 17,416
Provision for income taxes
Current 2,076 1,810
Future (924) (3,488)
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1,152 (1,678)
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Net income 3,111 19,094
Earnings per share
Basic 0.04 0.22
Diluted 0.04 0.22
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Outstanding weighted average number of
Shares 86,790,097 -
Units - 72,178,418
Tracking shares - 13,765,716
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Total 86,790,097 85,944,134
Shares outstanding
Number of Shares 86,790,097 -
Number of Trust units of the Fund - 73,024,381
Number of Tracking shares - 13,765,716
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Total 86,790,097 86,790,097
CONSOLIDATED BALANCE SHEETS As at As at
(in thousands of dollars) March 31, December 31,
2009 2008
(unaudited) (audited)
ASSETS
Current assets
Accounts receivable 267,341 302,801
Inventories 10,656 11,296
Prepaid expenses 20,554 14,285
Income tax receivable 1,872 519
Future income taxes 1,473 1,666
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301,896 330,567
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Fixed assets 704,984 718,713
Goodwill 438,602 435,851
Intangible assets 125,099 128,672
Other assets 6,154 6,258
Future income taxes 915 1,846
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1,577,650 1,621,907
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank indebtedness 12,959 12,517
Accounts payable and accrued liabilities 209,203 218,763
Dividends payable on Tracking Share Units
of TFI Holdings Inc. 571 571
Dividends payable 8,679 8,679
Current portion of long-term debt 64,122 69,028
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295,534 309,558
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Long-term debt 713,723 738,986
Asset retirement obligations 10,490 8,204
Future income taxes 53,621 55,309
Shareholders' equity
Share capital 519,404 -
Capital contributions and Tracking
Share Units - 519,404
Deficit (15,122) (9,554)
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504,282 509,850
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1,577,650 1,621,907
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CONSOLIDATED STATEMENTS OF RETAINED
EARNINGS (DEFICIT) Three months Three months
(unaudited) ended ended
(in thousands of dollars) March 31, March 31,
2009 2008
Retained earnings (Deficit), beginning of period (9,554) (15,146)
Net income for the period 3,111 19,094
Distributions to unitholders - (29,027)
Dividends on Tracking Share Units of
TFI Holdings Inc. - (3,721)
Dividends (8,679) -
Incentive plan contribution - (445)
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Retained earnings (Deficit), end of period (15,122) (29,245)
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CONSOLIDATED STATEMENTS OF CASH FLOWS Three months Three months
(unaudited) ended ended
(in thousands of dollars) March 31, March 31,
2009 2008
CASH FLOW FROM OPERATING ACTIVITIES
Net income for the period 3,111 19,094
Non-cash items:
Depreciation of fixed assets 26,554 25,053
Amortization of intangible assets 4,368 4,021
Incentive plan expense - 1,447
Deferred financing charges 390 234
Future income taxes (924) (3,488)
Unrealized gain on interest rate
swap contracts (295) -
Gain on disposal of fixed assets (271) (1,051)
Other 112 439
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33,045 45,749
Net change in non-cash working capital
balances related to operations 20,452 (36,256)
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53,497 9,493
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CASH FLOW FROM FINANCING ACTIVITIES
Increase in bank advances and overdraft 442 6,106
Repayment of long-term debt (13,061) (25,346)
Increase (decrease) in long term
revolver facility (18,794) 91,849
Cash distributions paid to unitholders - (29,027)
Dividends paid (8,679) -
Dividends paid on Tracking Share Units - (4,403)
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(40,092) 39,179
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CASH FLOW FROM INVESTING ACTIVITIES
Additions to fixed assets (11,255) (13,130)
Proceeds from disposal of fixed assets 3,487 7,480
Business acquisitions (including bank
advances net of cash) (5,741) (43,149)
Other assets, net 104 127
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(13,405) (48,672)
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Net change in cash and cash equivalent
during the period - -
Cash and cash equivalent, beginning of the
period - -
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Cash and cash equivalent, end of the period - -
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Supplemental cash flow information:
Cash paid during the period for:
Interest 9,468 11,444
Income taxes 3,428 4,022
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%SEDAR: 00026947EF