EX-99.1 2 o33437exv99w1.htm EX-99.1 exv99w1
 

(VITRAN LOGO)   News Announcement

REMINDER:
Vitran management will conduct a conference call and webcast today, October 19, at 11:00 a.m. (ET), to discuss the Company’s 2006 third quarter results.
Conference call dial-in: 800/708-7127
Live Webcast: www.vitran.com (select “Investor Relations”)
     
CONTACT:
    
Richard Gaetz, President/CEO
  Robert Rinderman
Sean Washchuk, VP Finance/CFO
  Steven Hecht
Vitran Corporation Inc.
  Jaffoni & Collins Incorporated
416/596-7664
  212/835-8500 or VTNC@jcir.com
FOR IMMEDIATE RELEASE
VITRAN REPORTS 2006 THIRD QUARTER RESULTS
TORONTO, ONTARIO (October 19, 2006) — Vitran Corporation Inc. (NASDAQ: VTNC, TSX: VTN), a North American transportation and logistics firm, today announced financial results for the 2006 third quarter ended September 30, 2006 (all figures reported in $U.S.).
Vitran achieved net income of $4.9 million, or 0.38 per diluted share, on revenue of $121.5 million for the three-month period ended September 30, 2006. In the comparable 2005 period, Vitran recorded net income of $5.4 million, or $0.42 per diluted share, on revenue of $116.2 million.
“As we stated in our update of Vitran’s annual earnings guidance on September 27, the entire organization is committed to improving upon our financial results,” stated Vitran President and Chief Executive Officer Rick Gaetz. “Higher than anticipated healthcare and workers’ compensation expenses combined with a slowing economy in Vitran’s North American operating regions negatively impacted third quarter results.
“We are very pleased with the recent acquisition of PJAX Freight System, which further extends Vitran’s LTL network coverage, adding six key Atlantic Coast states to our growing U.S. geography. We are in the final stages of completing the information technology integration of the Vitran Express West region, which we acquired in early January, and anticipate realizing inter-regional sales opportunities going forward. Lastly, with the addition of PJAX, all of the Company’s Canadian and U.S. LTL operations are expected to benefit from the Company’s new, expanded footprint.”
(more)

 

 

Vitran Q3 2006, 10/19/06   page 2 of 6
During the nine months ended September 30, 2006, Vitran achieved net income of $14.4 million, or $1.11 per diluted share, on revenue of $360.3 million. In the comparable 2005 period, the Company reported net income of $12.9 million, or $1.01 per diluted share, on revenue of $315.2 million.
Segmented Results
Income from operations at Vitran’s LTL (less-than-truckload) segment was $6.6 million in the 2006 third quarter, and the LTL segment’s OR (operating ratio) was 93.6 for the three-month period. In the prior year quarter, the LTL segment recorded income from operations of $7.7 million, and an OR of 92.0. LTL segment revenue per shipment increased 7.4 percent and revenue per hundred-weight improved by 6.3 percent. Tonnage rose 0.1 percent, and the number of shipments declined 0.1 percent during the quarter, indicative of the slowing economy and the residual impact of the now finalized integration of Vitran’s Southwest region operations.
The Logistics segment achieved strong comparisons versus the 2005 third quarter, with income from operations increasing 68.6 percent during the 2006 three month period to $929,000, and OR improving significantly to 91.1, versus 94.8 in the year-earlier quarter. The Truckload segment recorded income from operations of $354,000, with an OR of 95.7 for the quarter, compared to operating income of $441,000 and a 95.1 OR for the same period a year ago.
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. (NASDAQ:VTNC, TSX:VTN), visit the website at www.vitran.com.
This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Forward-looking statements may be generally identifiable by use of the words “believe”, “anticipate”, “intend”, “estimate”, “expect”, “project”, “may”, “plans”, “continue”, “will”, “focus should” “endeavor” or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on current expectations and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially from those expressed or implied by such forward-looking statements.
Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Vitran’s actual results, performance or achievements to differ materially from those projected in the forward-looking statements. Factors that may cause such differences include, but are not limited to, technological change, increases in fuel costs, regulatory changes, the general health of the economy, seasonal fluctuations, unanticipated changes in railroad capacities, exposure to credit risks, changes in labour relations and competitive factors. More detailed information about these and other factors is included in the annual MD&A on Form 10K under the heading “General Risks and Uncertainties.” Many of these factors are beyond the Company’s control; therefore, future events may vary substantially from what the Company currently foresees. You should not place undue reliance on such forward-looking statements. Vitran Corporation Inc. does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
(tables follow)

 

 

Vitran Q3 2006, 10/19/06   page 3 of 6
Vitran Corporation Inc.
Consolidated Balance Sheets
(Unaudited)
(in thousands of United States dollars, US GAAP)
                 
    Sept. 30, 2006     Dec. 31, 2005  
Assets
                
Current assets:
                
Cash and cash equivalents
   $ 102,207     $ 14,592  
Accounts receivable
     54,660       46,587  
Inventory, deposits and prepaid expenses
     9,277       8,396  
Future income taxes
     2,593       1,442  
 
            
 
     168,737       71,017  
 
                
Capital assets
     82,133       66,807  
Intangible assets
     2,749       2,456  
Goodwill
     62,906       61,448  
 
            
 
   $ 316,525     $ 201,728  
 
            
 
                
Liabilities and Shareholders’ Equity
                
Current liabilities:
                
Accounts payable and accrued liabilities
   $ 52,413     $ 41,362  
Income and other taxes payable
     1,717       1,124  
Current portion of long-term debt
     8,053       5,845  
 
            
 
     62,183       48,331  
 
                
Long-term debt
     90,015       8,588  
Future income tax liabilities
     7,749       5,007  
 
                
Shareholders’ equity:
                
Common shares
     64,130       63,604  
Additional paid-in capital
     1,395       956  
Retained earnings
     85,978       71,553  
Accumulated other comprehensive income
     5,075       3,689  
 
            
 
     156,578       139,802  
 
            
 
   $ 316,525     $ 201,728  
 
            
(Consolidated Statements of Income follows)

 

 

Vitran Q3 2006, 10/19/06   page 4 of 6
Vitran Corporation Inc.
Consolidated Statements Of Income
(Unaudited)
(in thousands of United States dollars except per share amounts, US GAAP)
                                 
    Three Months     Nine Months  
    Ended September 30,     Ended September 30,  
    2006     2005     2006     2005  
Revenues
   $ 121,512     $ 116,226     $ 360,280     $ 315,217  
Operating expenses
     101,189       96,061       299,617       262,947  
Selling, general and administrative expenses
     11,195       10,399       33,675       29,011  
Other income
     (248 )     (6 )     (404 )     (33 )
Depreciation and amortization expense
     2,579       1,954       7,495       4,802  
 
                        
 
     114,715       108,408       340,383       296,727  
 
                                
Income from operations before undernoted
     6,797       7,818       19,897       18,490  
 
                                
Interest expense, net
     274       171       621       209  
 
                                
Income from operations before income taxes
     6,523       7,647       19,276       18,281  
 
                                
Income taxes
     1,638       2,271       4,992       5,355  
 
                        
 
                                
Net income from continuing operations
   $ 4,885     $ 5,376     $ 14,284     $ 12,926  
 
                        
 
                                
Cumulative effect of a change in accounting principle
   $ —     $ —     $ 141     $ —  
Net income
   $ 4,885     $ 5,376     $ 14,425     $ 12,926  
 
                        
 
                                
Income per share:
                                
 
                                
Basic
                                
Net income from continuing operations
   $ 0.38     $ 0.43     $ 1.12     $ 1.04  
 
                        
Cumulative effect of a change in accounting principle
   $ —     $ —     $ 0.01     $ —  
 
                        
Net income
   $ 0.38     $ 0.43     $ 1.13     $ 1.04  
 
                        
 
                                
Diluted
                                
Net income from continuing operations
   $ 0.38     $ 0.42     $ 1.10     $ 1.01  
 
                        
Cumulative effect of a change in accounting principle
   $ —     $ —     $ 0.01     $ —  
 
                        
Net income
   $ 0.38     $ 0.42     $ 1.11     $ 1.01  
 
                        
 
                                
Weighted average number of shares
                                
Basic
     12,744,936       12,584,358       12,710,225       12,481,840  
 
                        
Diluted
     12,966,835       12,921,695       12,956,661       12,819,872  
 
                        
(Consolidated Statements of Cash Flows follows)

 

 

Vitran Q3 2006, 10/19/06   page 5 of 6
Vitran Corporation Inc.
Consolidated Statements Of Cash Flows
(Unaudited)
(In thousands of United States dollars, US GAAP)
                                 
    Three months     Three months     Nine months     Nine months  
    Ended     Ended     Ended     Ended  
    Sept. 30, 2006     Sept. 30, 2005     Sept. 30, 2006     Sept. 30, 2005  
Cash provided by (used in):
                                
Operations:
                                
Net income
   $ 4,885     $ 5,376     $ 14,425     $ 12,926  
Items not involving cash from operations Depreciation and amortization expense
     2,579       1,954       7,495       4,802  
Future income taxes
     1,019       2,030       1,591       2,677  
Stock based compensation expense
     218       181       627       474  
Gain on sale of capital assets
     (248 )     (6 )     (404 )     (33 )
Cumulative effect of a change in accounting principle
     —       —       (141 )     —  
Change in non-cash working capital components
     551       (3,961 )     997       (6,658 )
 
                        
 
     9,004       5,574       24,590       14,188  
Investments:
                                
Purchase of capital assets
     (9,216 )     (10,806 )     (20,745 )     (17,651 )
Proceeds on sale of capital assets
     509       50       2,063       88  
Acquisition of subsidiary
     —       (1,693 )     (2,251 )     (28,192 )
Marketable securities
     —       3,193       —       31,974  
 
                        
 
     (8,707 )     (9,256 )     (20,993 )     (13,781 )
Financing:
                                
Revolving credit facility
     18,015       5,074       15,030       5,074  
Proceeds from long-term debt
             70,500       —       70,500  
Repayment of long-term debt
     (9 )     (570 )     (1,961 )     (1,710 )
Issue of Common Shares upon exercise of stock options
     —       18       479       60  
Repurchase of Common Shares
     —       (65 )     —       (921 )
 
                        
 
     88,506       4,457       84,048       2,503  
Effect of translation adjustment on cash
     87       498       (90 )     524  
 
                        
Increase (decrease) in cash position
     88,890       1,273       87,615       3,434  
Cash position, beginning of period
     13,317       9,536       14,592       7,375  
 
                        
Cash position, end of period
   $ 102,207     $ 10,809     $ 102,207     $ 10,809  
 
                        
Change in non-cash working capital components:
                                
Accounts receivable
   $ (240 )   $ (5,886 )   $ (6,669 )   $ (9,717 )
Inventory, deposits and prepaid expenses
     (2,129 )     534       (503 )     (921 )
Income and other taxes recoverable/payable
     495       (1,565 )     593       (1,649 )
Accounts payable and accrued liabilities
     2,425       2,956       7,576       5,629  
 
                        
 
   $ 551     $ (3,961 )   $ 997     $ (6,658 )
 
                        
(additional financial information follows)

 

 

Vitran Q3 2006, 10/19/06   page 6 of 6
Supplementary Segmented Financial Information
(000’s of $U.S.)
                             
For the quarter ended               For the quarter ended            
Sept. 30, 2006               Sept. 30, 2005            
    Revenue   Inc. from   OR%       Revenue   Inc. from   OR%
        Operations               Operations    
 
LTL
   102,858   6,585   93.6   LTL   96,658   7,734   92.0
LOG
   10,419   929   91.1   LOG   10,652   551   94.8
TL
   8,235   354   95.7   TL   8,916   441   95.1
                             
For the nine months               For the nine months            
ended Sept. 30, 2006               ended Sept. 30, 2005            
    Revenue   Inc. from   OR%       Revenue   Inc. from   OR%
        Operations           Operations    
 
LTL
   305,494   19,692   93.6   LTL   259,191   17,620   93.2
LOG
   30,082   2,081   93.1   LOG   29,144   1,531   94.7
TL
   24,704   1,294   94.8   TL   26,882   1,901   92.9
LTL SEGMENT — Statistical Information
(Unaudited)
                                 
    For the quarter ended     For the nine months ended  
    September 30, 2006     September 30, 2006  
    LTL     Q. over Q.     LTL     Yr. Over Yr.  
($U.S.)   Division     % Change     Division     % Change  
 
Revenue (000’s)
   $ 102,858       6.4     $ 305,494       17.9  
No. of Shipments
     659,602       (0.1 )     2,011,252       8.1  
Weight (000’s lbs)
     1,054,058       0.1       3,198,160       8.9  
Revenue per shipment
   $ 155.94       7.4     $ 151.89       9.0  
Revenue per CWT
   $ 9.76       6.3     $ 9.55       8.3  
# # #