EX-99.1 2 t14408exv99w1.htm EX-99.1 exv99w1
 

News Announcement

REMINDER:
Vitran management will conduct a conference call today, October 21st at 1:00 p.m. (Eastern), to discuss the Company’s 2004 third quarter results. Conference call dial-in: 800/731-1402 Live Webcast: http://www.vcall.com/CEPage.asp?ID=89400

     
CONTACT:
    
Richard Gaetz, President/CEO
   Robert Rinderman
Sean Washchuk, VP Finance/CFO
   Purdy Tran
Vitran Corporation Inc.
   Jaffoni & Collins Incorporated
416/596-7664
   212/835-8500 or VVN@jcir.com

FOR IMMEDIATE RELEASE

VITRAN ACHIEVES RECORD QUARTERLY PERFORMANCE ON
49 PERCENT NET INCOME INCREASE IN 2004 THIRD QUARTER

- Reports Diluted EPS of $0.36 on Revenues of $97.0 Million -

TORONTO, ONTARIO (October 21, 2004) — Vitran Corporation Inc. (AMX: VVN, TSX: VTN), a North American transportation and logistics firm, today announced record financial results for the 2004 third quarter ended September 30, 2004, the Company’s twelfth consecutive quarter of net income improvement. During the period, Vitran achieved a 49 percent increase in net income to $4.5 million, or 0.36 per diluted share on revenues of $97.0 million. In the corresponding 2003 three-month period, Vitran had net income of $3.0 million, or $0.30 per diluted share on revenues of $84.9 million (all figures reported in $U.S.).

Vitran’s 2004 third quarter per share results are based on 12.8 million diluted and 10.2 million diluted weighted average shares outstanding during the 2004 and 2003 three-month periods, respectively. Vitran’s equity offering, completed in December 2003, accounts for the year-over-year increase in weighted average shares.

For the nine-months ended September 30, 2004, Vitran’s net income grew 47 percent to $10.6 million, or $0.83 per diluted share on revenues of $278.1 million. In the nine-month period ended September 30, 2003, the Company recorded net income of $7.2 million, or $0.72 per diluted share on $246.5 million in revenues. Per share results for the 2004 nine-month period are based on 12.7 million diluted and 10.0 million diluted weighted average shares outstanding, respectively.

-more-

 

 

“Vitran achieved positive comparisons across LTL operating metrics in the U.S. and Canadian operations during the 2004 third quarter,” stated President and Chief Executive Officer Rick Gaetz. “Importantly, we reduced our operating ratio (OR) for the LTL division to 92.5, compared to 93.4 in the year-ago period. We continue to be pleased with our consistent progress across all of our business segments, and a strong, Company-wide team effort led to a 49 percent net income increase, as we grew our top line by 14 percent in the third quarter.”

Segmented Results

Income from operations at Vitran’s LTL (less-than-truckload) segment rose 29 percent during the 2004 third quarter to $5.9 million, led by 13 percent revenue growth in the U.S. division, and a 9 percent rise at the Company’s Canadian LTL segment. All other key LTL metrics also showed year-over-year improvement during the 2004 three-month period.

     Vitran’s Truckload segment increased revenue by 12 percent to $9.3 million and posted income from operations of $0.6 million in the 2004 third quarter. The OR improved to 94.0 from 97.5, reflecting a stable Midwestern U.S. pricing environment.

     Vitran’s Logistics segment improved revenue and income from operations 22 percent and 6 percent, respectively in the 2004 third quarter, compared to the prior year period. The Company opened a new logistics facility in Toronto at the end of Q2’04, causing an increase in the third quarter OR to 95.9, as the Supply Chain unit works to fill the added capacity.

Guidance Update

Based on the 2004 financial performance to date and favorable current market conditions, Vitran management is increasing its 2004 full year EPS guidance range to $1.08 — $1.15 per diluted share, from a range of 1.05 to $1.12 per diluted share.

About Vitran Corporation Inc.

Vitran Corporation Inc. is a North American group of transportation companies offering less-than-truckload, logistics, truckload, and freight brokerage services. To find out more about Vitran Corporation Inc. (AMX:VVN, TSX:VTN), visit the website at www.vitran.com.

Information in this news announcement relating to projected growth, improvements in productivity and future results constitutes forward-looking statements. Actual results in future periods may differ materially from the forward-looking statements because of a number of risks and uncertainties, including but not limited to economic factors, demand for the Company’s services, fuel price fluctuations, the availability of employee drivers and independent contractors, risks associated with geographic expansion, capital requirements, claims exposure and insurance costs, competition and environmental hazards. Additional information about these and other factors that could affect the Company’s business is set forth in the Company’s Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.

(tables follow)

 

 

Vitran Corporation Inc.
Consolidated Balance Sheets
(in thousands of United States dollars)

                 
    Sept. 30, 2004
   Dec. 31, 2003
    (unaudited)        
Assets
                
Current assets:
                
Cash
   $ 12,496     $ 12,417  
Marketable securities
     28,196       26,996  
Accounts receivable
     44,864       35,685  
Inventory, deposits and prepaids
     6,240       5,847  
Future income tax assets
     3,763       4,101  
 
    
 		      
 		  
 
     95,559       85,046  
Capital assets
     35,687       35,102  
Goodwill
     45,019       44,865  
 
    
 		      
 		  
 
   $ 176,265     $ 165,013  
 
    
 		      
 		  
Liabilities and Shareholders’ Equity
                
Current liabilities:
                
Account payable and accrued liabilities
   $ 37,521     $ 34,092  
Income and other taxes payable
     2,929       4,007  
Current portion of long-term debt
     8,675       8,313  
 
    
 		      
 		  
 
     49,125       46,412  
Long-term debt
     11,427       17,931  
Future income tax liabilities
     3,882       2,715  
Shareholders’ equity:
                
Capital stock
     60,760       59,358  
Contributed surplus
     177       —  
Retained earnings
     50,607       40,029  
Cumulative translation adjustment
     287       (1,432 )
 
    
 		      
 		  
 
     111,831       97,955  
 
    
 		      
 		  
 
   $ 176,265     $ 165,013  
 
    
 		      
 		  

(Statements of Income follows)

 

 

Vitran Corporation Inc.
Statements of Income
(unaudited)
(in thousands of United States dollars except for share and per share amounts)

                                 
    Three Months   Nine Months
    Ended Sept. 30,
   Ended Sept. 30,
    2004
   2003
   2004
   2003
Revenues
   $ 96,995     $ 84,889     $ 278,072     $ 246,493  
Operating expenses
     82,269       71,453       236,508       209,193  
Selling, general and administrative expenses
     7,267       7,577       23,631       22,552  
 
    
 		      
 		      
 		      
 		  
 
     89,536       79,030       260,139       231,745  
 
    
 		      
 		      
 		      
 		  
Income from operations before depreciation
     7,459       5,859       17,933       14,748  
Depreciation expense
     1,295       1,360       3,835       4,093  
 
    
 		      
 		      
 		      
 		  
Income from operations before undernoted
     6,164       4,499       14,098       10,655  
Interest expense, net
     (7 )     (310 )     (87 )     (1,117 )
Gain (loss) on sale of capital assets
     29       (37 )     142       (137 )
 
    
 		      
 		      
 		      
 		  
 
     22       (347 )     55       (1,254 )
Income from operations before income taxes
     6,186       4,152       14,153       9,401  
Income taxes
     1,644       1,107       3,575       2,215  
 
    
 		      
 		      
 		      
 		  
Net income
   $ 4,542     $ 3,045     $ 10,578     $ 7,186  
 
    
 		      
 		      
 		      
 		  
Earnings per share:
                                
Basic
   $ 0.37     $ 0.32     $ 0.86     $ 0.75  
 
    
 		      
 		      
 		      
 		  
Diluted
   $ 0.36     $ 0.30     $ 0.83     $ 0.72  
 
    
 		      
 		      
 		      
 		  
Weighted average number of shares
                                
Basic
     12,339,956       9,557,681       12,241,013       9,541,452  
 
    
 		      
 		      
 		      
 		  
Diluted
     12,774,744       10,157,160       12,730,065       10,038,335  
 
    
 		      
 		      
 		      
 		  

(additional financial information follows)

 

 

Vitran Corporation Inc.
Consolidated Statements of Cash Flows
(unaudited)
(In thousands of United States dollars)

                                 
    Three months   Three months   Nine months   Nine months
    Ended   Ended   Ended   Ended
    Sept. 30, 2004
   Sept. 30, 2003
   Sept. 30, 2004
   Sept. 30, 2003
Cash provided by (used in):
                                
Operations:
                                
Net income
   $ 4,542     $ 3,045     $ 10,578     $ 7,186  
Items not involving cash from operations
                                
Depreciation and amortization
     1,295       1,360       3,835       4,093  
Future income taxes
     1,726       516       1,557       236  
Stock based compensation expense
     119       —       177       —  
Loss (gain) on sale of capital assets
     (29 )     37       (142 )     137  
 
    
 		      
 		      
 		      
 		  
 
     7,653       4,958       16,005       11,652  
Change in non-cash working capital components
     (480 )     (1,719 )     (7,221 )     (5,726 )
 
    
 		      
 		      
 		      
 		  
 
     7,173       3,239       8,784       5,926  
Investments:
                                
Purchase of capital assets
     (915 )     (792 )     (3,993 )     (2,384 )
Proceeds on sale of capital assets
     28       39       242       330  
Purchase of marketable securities
     (148 )     —       (439 )     —  
 
    
 		      
 		      
 		      
 		  
 
     (1,035 )     (753 )     (4,190 )     (2,054 )
Financing:
                                
Repayment of long-term debt
     (2,169 )     (1,815 )     (6,146 )     (5,364 )
Issue of Common shares upon exercise of stock options
     503       660       1,402       830  
Repurchase of Common shares
     —       —       —       (644 )
 
    
 		      
 		      
 		      
 		  
 
     (1,666 )     (1,155 )     (4,744 )     (5,178 )
Effect of translation adjustment on cash
     63       168       229       (535 )
 
    
 		      
 		      
 		      
 		  
Increase (decrease) in cash position
     4,535       1,499       79       (1,841 )
Cash position, beginning of period
     7,961       4,662       12,417       8,002  
 
    
 		      
 		      
 		      
 		  
Cash position, end of period
   $ 12,496     $ 6,161     $ 12,496     $ 6,161  
 
    
 		      
 		      
 		      
 		  
Change in non-cash working capital components:
                                
Accounts receivable
   $ (2,343 )   $ (1,985 )   $ (9,179 )   $ (9,079 )
Inventory, deposits and prepaid expenses
     (1,077 )     (946 )     (393 )     108  
Income and other taxes recoverable/payable
     (1,019 )     139       (1,078 )     669  
Accounts payable and accrued liabilities
     3,959       1,073       3,429       2,576  
 
    
 		      
 		      
 		      
 		  
 
   $ (480 )   $ (1,719 )   $ (7,221 )   $ (5,726 )
 
    
 		      
 		      
 		      
 		  

(additional financial information follows)

 

 

LTL Statistical Information — U.S. and CDN Divisions

For the quarter ended
September 30, 2004

                                     
    U.S. LTL   Q. over Q.       CDN LTL   Q. over Q.
($U.S.)
   Division
   % Change
   ($CDN)
   Division
   % Change
Revenue (000’s)
   $ 44,866       12.5     Revenue (000's)   $ 44,023       8.8  
No. of Shipments
     391,437       7.2     No. of Shipments     236,644       3.0  
Weight (000’s lbs)
     557,544       9.1     Weight (000's lbs)     442,382       2.3  
Revenue per shipment
   $ 114.62       4.9     Revenue per shipment   $ 186.03       5.6  
Revenue per CWT
   $ 8.05       3.1     Revenue per CWT   $ 9.95       6.3  

Supplementary Segmented Financial Information
(000’s of $US)

     
For the quarter ended
   For the quarter ended
September 30, 2004
   September 30, 2003
                                                     
            Inc. from                       Inc. from    
    Revenue
   Operations
   OR%
       Revenue
   Operations
   OR%
LTL
     78,727       5,872       92.5     LTL     69,228       4,565       93.4  
LOG
     8,936       367       95.9     LOG     7,347       345       95.3  
TL
     9,332       562       94.0     TL     8,314       205       97.5  

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