10-K/A 1 o39416e10vkza.htm 10-K/A e10vkza
 

 
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-K/A
(Amendment No. 1)
 
(Mark One)
     
þ
  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2007
OR
     
o
  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________ to _____________.
Commission file number 0-19791
 
VITRAN CORPORATION INC.
(Exact name of registrant as specified in its charter)
 
     
Ontario, Canada
   
(State or other jurisdiction of incorporation or organization)
  (I.R.S. Employer
Identification No.)
185 The West Mall, Suite 701, Toronto, Ontario, Canada, M9C 5L5
(Address of principal executive offices) (Zip Code)
(Registrant’s telephone number, including area code)
(416) 596-7664
Securities registered pursuant to Section 12(b) of the Act:
     
Title of each class   Name of each exchange on which registered
Common Shares
   Toronto Stock Exchange — TSX®
 
   NASDAQ — National Market
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.   o Yes     þ No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.   o Yes     þ No
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   þ Yes     o No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein and will not be contained, to the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to the Form 10-K.   o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer (as defined in Rule 12b-2 of the Act).
         
Large accelerated filer o
  Accelerated filer þ   Non-accelerated filer o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).   o Yes     þ No
The number of shares of common stock outstanding at February 07, 2008 was 13,448,159. The aggregate market value of the voting stock of the registrant, excluding directors, officers and registered holders of 10% as of February 07, 2008 was approximately $158,000,000.
 
 
DOCUMENTS INCORPORATED BY REFERENCE
1)   Definitive Proxy statement to be filed within 120 days of December 31, 2007 (Only those portions referenced herein are incorporated in this Annual Report on Form 10-K/A).

 

 

Explanatory Note
This Form 10K/A (Amendment No. 1) to Vitran Corporation Inc.’s Annual Report on Form 10-K for the year ended December 31, 2007, initially filed with the Securities and Exchange Commission (the”SEC”) on February 11, 2008, is being filed to correct Note 18 (a), “United States and Canadian accounting policy differences”, to the financial statements to appropriately reflect the shareholders’ equity under United States Generally Accepted Accounting Principles (“GAAP”) for 2007 in the table that reconciles shareholders’ equity to Canadian GAAP. Item 6 — Selected Financial data has also been updated to reflect the correct amount for 2007.
The revisions have no effect on the Company’s consolidated statements of income, statements of cash flows or balance sheets.
This Amendment No. 1 is limited in scope to the portion of the 2007 Form 10-K set forth above and does not amend, update or change any other items or disclosures contained in the original 2007 Form 10-K.

 

 

ITEM 6—SELECTED FINANCIAL DATA
     The following selected financial data should be read in conjunction with the Consolidated Financial Statements and Notes under Item 8 of this Annual Report on Form 10-K. For a summary of quarterly financial data for fiscal 2007 and 2006 please see the Supplemental Schedule of Quarterly Financial Information included in the Consolidated Financial Statements. For a summary of measurement and disclosure differences between United States and Canadian accounting policies please see Note 18 to the Consolidated Financial Statements.
Selected Financial Data (Thousands of dollars, except per share amounts)
                                         
Year   2007     2006     2005     2004     2003  
 
United States GAAP
                                        
Statements of Income
                                        
Revenue
   $ 670,517     $ 514,059     $ 428,192     $ 374,595     $ 331,826  
Income from continuing operations before depreciation and amortization expense(1)
     43,769       40,530       32,392       24,183       20,044  
Income from continuing operations
     22,999       28,040       25,427       18,977       14,550  
Net income from continuing operations
     13,710       19,258       17,938       14,943       10,336  
 
                              
Cumulative effect of change in accounting principle
     —       141       —       —       —  
 
                              
Net income
   $ 13,710     $ 19,399     $ 17,938     $ 14,943     $ 10,336  
 
                              
Earnings per share basic:
                                        
Net income from continuing operations
   $ 1.02     $ 1.49     $ 1.43     $ 1.22     $ 1.07  
Net income (loss)
   $ 1.02     $ 1.50     $ 1.43     $ 1.22     $ 1.07  
Weighted average number of shares
     13,458,786       12,887,401       12,516,265       12,285,400       9,684,901  
Earnings per share diluted:
                                        
Net income from continuing operations
   $ 1.00     $ 1.47     $ 1.40     $ 1.17     $ 1.01  
Net income (loss)
   $ 1.00     $ 1.48     $ 1.40     $ 1.17     $ 1.01  
Weighted average number of shares
     13,651,799       13,124,865       12,848,360       12,740,477       10,263,211  
 
                                        
Canadian GAAP(2)
                                        
Statements of Income
                                        
Revenue
   $ 670,517     $ 514,059     $ 428,192     $ 374,595     $ 331,826  
Income from continuing operations before depreciation and amortization expense(1)
     41,551       40,530       32,392       24,183       20,308  
Income from continuing operations
     20,781       28,040       25,427       18,977       14,814  
Net income from continuing operations
     11,492       19,258       17,938       14,943       10,336  
 
                              
Net income (loss)
   $ 11,492     $ 19,258     $ 17,938     $ 14,943     $ 10,336  
 
                              

 

 

Selected Financial Data (continued) (Thousands of dollars, except per share amounts)
                                         
Year   2007     2006     2005     2004     2003  
 
Earnings per share basic:
                                        
Net income from continuing operations continuing operations
   $ 0.85     $ 1.49     $ 1.43     $ 1.22     $ 1.07  
Net income (loss)
   $ 0.85     $ 1.49     $ 1.43     $ 1.22     $ 1.07  
Weighted average number of shares
     13,458,786       12,887,401       12,516,265       12,285,400       9,684,901  
 
                                        
Earnings per share diluted:
                                        
Net income from continuing operations
   $ 0.84     $ 1.47     $ 1.40     $ 1.17     $ 1.01  
Net income (loss)
   $ 0.84     $ 1.47     $ 1.40     $ 1.17     $ 1.01  
Weighted average number of shares
     13,651,799       13,124,865       12,848,360       12,740,477       10,263,211  
 
                                        
Dividends per share $US
   Nil   Nil   Nil   Nil   Nil
Dividends per share $CAD
   Nil   Nil   Nil   Nil   Nil
                                         
Year   2007     2006     2005     2004     2003  
 
Balance Sheets
(United States GAAP)
                                        
Assets:
                                        
Current assets
   $ 95,548     $ 83,775     $ 71,017     $ 90,177     $ 85,046  
Property and equipment, net
     169,052       145,129       66,807       37,563       35,102  
Intangible assets
     13,645       15,888       2,456       —       —  
Goodwill, net
     124,375       117,146       61,448       45,304       44,865  
Other assets
     —       150       —       6       —  
 
                              
Total assets
   $ 402,630     $ 362,088     $ 201,728     $ 173,050     $ 165,013  
 
                              
 
                                        
Liabilities and Stockholders’ Equity:
                                        
Current liabilities
   $ 91,133     $ 88,669     $ 48,331     $ 38,806     $ 46,412  
Long-term debt
     109,831       93,139       8,588       11,507       17,931  
Other non-current liabilities
     11,322       6,983       5,007       3,546       2,715  
 
                                        
Total stockholders’ equity
   $ 190,344     $ 173,297     $ 139,802     $ 119,191     $ 97,955  
 
                                        
Balance Sheets
(Canadian GAAP)(2)
                                        
Assets:
                                        
Current assets
   $ 95,548     $ 83,775     $ 71,017     $ 90,177     $ 85,046  
Property and equipment, net
     169,052       145,129       66,807       37,563       35,102  
Intangible assets
     13,645       15,888       2,456       —       —  
Goodwill, net
     124,375       117,146       61,448       45,304       44,865  
Other assets
     —       —       —       —       —  
 
                              
Total assets
   $ 402,630     $ 361,938     $ 201,728     $ 173,044     $ 165,013  
 
                              
 
                                        
Liabilities and Stockholders’ Equity:
                                        
Current liabilities
   $ 91,133     $ 88,669     $ 48,331     $ 38,806     $ 46,412  
Long-term debt
     109,831       93,139       8,588       11,507       17,931  
Other non-current liabilities
     11,322       6,983       5,007       3,546       2,715  
 
                                        
Total stockholders’ equity
   $ 190,203     $ 173,156     $ 139,802     $ 119,185     $ 97,955  
 
                                        
Total commitments under operating leases
   $ 58,639     $ 38,827     $ 40,239     $ 46,564     $ 48,580  

 

 

Selected Financial Data (continued) (Thousands of dollars, except per share amounts)
                                         
Year   2007     2006     2005     2004     2003  
 
Operating Ratios(3)
                                        
Total company
     96.6 %     94.5 %     94.1 %     94.9 %     95.5 %
Less-than-truckload
     96.0 %     93.7 %     93.1 %     94.2 %     94.3 %
Logistics
     93.8 %     93.3 %     94.7 %     95.3 %     96.2 %
Truckload
     94.9 %     94.7 %     93.5 %     94.5 %     98.2 %
 
Notes:  
 
(1)   Income from continuing operations before depreciation and amortization expense (“EBITDA”) is a non-GAAP financial measure which does not have any standardized meaning prescribed by GAAP. EBITDA represents net income, minus cumulative change in accounting policy, plus (minus) income tax expense (benefit), plus net interest expense, and plus depreciation and amortization. The Company uses EBITDA in evaluating its operating performance compared to that of other companies in its industry, as the calculation of EBITDA eliminates the effects of financing, income taxes and the accounting effects of capital spending, which items may vary for different companies for reasons unrelated to overall operating performance. When analyzing its operating performance, however, investors should use EBITDA in addition to, not as an alternative for, income from operations and net income, as those items are defined by GAAP. Investors should also note that the Company’s presentation of EBITDA may not be comparable to similarly titled measures used by other companies. EBITDA is reconciled to net income as follows:
                                         
    Year ended December 31,
    2007     2006     2005     2004     2003  
 
Net income
   $ 13,710     $ 19,399     $ 17,938     $ 14,943     $ 10,336  
Cumulative change in accounting principle
     —       (141 )     —       —       —  
Income tax expense
     863       6,122       7,191       3,983       3,158  
Interest expense, net
     8,426       2,660       298       51       1,320  
Depreciation and amortization
     20,770       12,490       6,965       5,206       5,494  
 
                              
EBITDA
   $ 43,769     $ 40,530     $ 32,392     $ 24,183     $ 20,308  
 
                              
(2)   Please see Note 18 to the Consolidated Financial Statements for differences between United States and Canadian GAAP.
 
(3)   Operating ratio (“OR”) is a non-GAAP financial measure which does not have any standardized meaning prescribed by GAAP. OR is the sum of operating expenses, selling, general and administrative expenses, other expenses (income), and depreciation and amortization expense, divided by revenue. OR allows management to measure the Company and its various segments’ operating efficiency. OR is a widely recognized measure in the transportation industry which provides a comparable benchmark for evaluating the Company’s performance compared to its competitors’. Investors should also note that the Company’s presentation of OR may not be comparable to similarly titled measures by other companies. OR is calculated as follows:
                                         
    Year ended December 31,
    2007     2006     2005     2004     2003  
 
Operating expenses
   $ 565,094     $ 426,515     $ 357,960     $ 319,295     $ 282,016  
Selling, general and administrative expenses
     62,086       47,448       37,881       31,263       29,366  
Other expenses (income)
     (432 )     (434 )     (41 )     (146 )     136  
Depreciation and amortization expense
     20,770       12,490       6,965       5,206       5,494  
 
                              
 
   $ 647,518     $ 486,019     $ 402,765     $ 355,618     $ 317,012  
 
                              
Revenue
   $ 670,517     $ 514,059     $ 428,192     $ 374,595     $ 331,826  
 
                              
Operating ratio (“OR”)
     96.6 %     94.5 %     94.1 %     94.9 %     95.5 %
 
                              

 

 

ITEM 8—FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
18.   United States and Canadian accounting policy differences:
  (a)   Consolidated reconciliation of net income and shareholders’ equity:
                                                 
 
    Net income     Shareholders' equity  
    2007     2006     2005     2007     2006     2005  
 
Balance, December 31, based on United States GAAP
   $ 13,710     $ 19,399     $ 17,938     $ 190,344     $ 173,297     $ 139,802  
Effect of change in accounting principle (i)
     —       (141 )     —       (141 )     (141 )     —  
Foreign exchange adjustment (ii)
     (2,218 )     —       —       (1,360 )     858       858  
Unrealized foreign exchange loss on derivative instrument
     —       —       —       (101 )     (101 )     (101 )
Accumulated other comprehensive income adjustment (ii)
     —       —       —       1,461       (757 )     (757 )
 
Balance, December 31, based on Canadian GAAP
   $ 11,492     $ 19,258     $ 17,938     $ 190,203     $ 173,156     $ 139,802  
 
  (i)   The adoption of SFAS 123(R), Share-Based Payments, as described in note 1(l) only applies to United States GAAP. Therefore, the effect of a change in accounting principle does not impact Canadian GAAP net income or shareholders’ equity.
 
  (ii)   The Company had foreign exchange losses of $2.2 million that did not represent a substantially complete liquidation of a foreign operation. In previous years, the Company had foreign exchange gains of $0.9 million that did not represent a substantially complete liquidation of a foreign operation. Under Canadian GAAP, these gains were recognized upon the transfer into income of the related cumulative translation adjustment. Under United States GAAP, there is no reduction of the cumulative translation adjustment account. Retained earnings under Canadian GAAP on a cumulative basis is decreased by $1.4 million (2006 — increased $0.9 million) with a corresponding increase (2006 — decrease) to the cumulative translation adjustment included in accumulated other comprehensive income.

 

 

18.   United States and Canadian accounting policy differences (continued):
                           
   
(iii)
     2007     2006     2005  
   
 
Income per share under Canadian GAAP:
                        
 
Basic — net income
   $ 0.85     $ 1.49     $ 1.43  
 
Diluted — net income
     0.84       1.47       1.40  
   
 
Weighted average number of shares:
                        
 
Weighted average number of shares outstanding
     13,458,786       12,887,401       12,516,265  
 
Potential exercise of stock options
     193,013       237,464       332,095  
   
 
Diluted shares
     13,651,799       13,124,865       12,848,360  
   

 

 

ITEM 15—EXHIBITS
Exhibit Index
     
Exhibit No.   Document
31.1
  Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1
  Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
* Previously filed
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Toronto, Province of Ontario, on the 15th day of February, 2008.
         
   
 
Vitran Corporation Inc.

 		  
  By:   /s/  SEAN P. WASHCHUK    
    Sean P. Washchuk   
    Vice President Finance and
Chief Financial Officer 		  

 

 

         
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
         
Signatures   Title   Date
/s/ RICHARD D. McGRAW
 
Richard D. McGraw		   Chairman of the Board   February 15, 2008
/s/ RICHARD E. GAETZ
 
Richard E. Gaetz		   President and Chief Executive Officer, Director   February 15, 2008
/s/ GEORGES L. HÉBERT
 
Georges L. Hébert		   Director   February 15, 2008
/s/ WILLIAM S. DELUCE
 
William S. Deluce		   Director   February 15, 2008
/s/ ANTHONY F. GRIFFITHS
 
Anthony F. Griffiths		   Director   February 15, 2008
/s/ JOHN R. GOSSLING
 
John R. Gossling		   Director   February 15, 2008
/s/ SEAN P. WASHCHUK
 
Sean P. Washchuk		   Vice President Finance and Chief Financial Officer
(Principal Financial Officer) 		  February 15, 2008
/s/ FAYAZ D. SULEMAN
 
Fayaz D. Suleman		   Corporate Controller
(Principal Accounting Officer) 		  February 15, 2008