EX-99.1 2 ex991.htm NEWS RELEASE DATED OCTOBER 27, 2009 ex991.htm
Exhibit 99.1
News release via Canada NewsWire, Toronto 416-863-9350

	    Attention Business/Financial Editors:
	    Vitran reports 2009 third quarter results

	    <<
	    -------------------------------------------------------------------------
	                                  REMINDER:
	     Vitran management will conduct a conference call and webcast today:
	                        October 27, at 11:00 a.m. ET,
	             to discuss the Company's 2009 third quarter results
	    Conference call dial-in: 1-866-250-4892 or 416-644-3422 (International)
	         Live Webcast: www.vitran.com (select "Investor Relations")
	    -------------------------------------------------------------------------
	    >>

	    TORONTO, Oct. 27 /CNW/ - Vitran Corporation Inc. (NASDAQ: VTNC, TSX: VTN)
("Vitran" or the "Company), a North American transportation and supply chain
management firm, today announced financial results for the third quarter of
2009 and the nine-month period ended September 30, 2009 (all figures reported
in $U.S.).
	    Vitran reported net income of $0.3 million, or $0.02 per diluted share,
on revenues of $165.9 million for the quarter ended September 30, 2009. In the
comparable 2008 three-month period, the Company achieved net income of $2.1
million, or $0.15 per diluted share on revenue of $198.6 million. The
fluctuation in fuel surcharge and foreign exchange on Vitran's Canadian
operations accounted for $19.4 million of the revenue decline for the third
quarter of 2009 compared to the third quarter of 2008. Therefore consolidated
revenue declined 6.7% adjusting for the change in fuel surcharge and foreign
exchange rates on Canadian dollar denominated revenue.
	    In addition the Company completed a private placement of approximately
2.7 million shares of common stock at the price of $8.50 per share, for net
proceeds of approximately $21.3 million. The net proceeds of the offering were
used to reduce outstanding debt, bolstering the balance sheet, increasing the
unused debt capacity and giving the Company added flexibility to execute its
operating and capital initiatives.
	    "Our third quarter accomplishments are meaningful in a very challenging
environment, particularly from a pricing and financial perspective, allowing
Vitran to continue to take positive steps forward. Our daily U.S. LTL
(less-than-truckload) shipment count for the third quarter exceeded the second
quarter, our logistics business set a quarterly record for profitability and
most importantly we garnered the support of new and existing shareholders with
our equity offering," stated Vitran President and Chief Executive Officer,
Rick Gaetz.
	    "In the short-term we posted our second successive quarter of
consolidated net income but more importantly positioned the Company to
financially weather the economic downturn over the long-run."
	    "Our retail focused supply chain business executed very well in the
quarter, in fact, posted its all-time best profitability despite continued
downward pressures on the North American retail economy. I look forward to
continued commercial success in our supply chain business going forward."

	    Segmented Results

	    The LTL (less-than-truckload) segment posted income from operations for
the 2009 third quarter of $1.5 million, with an OR (operating ratio) of 98.9%
compared to income from operations of $3.0 million and an OR of 98.2% in the
comparable period a year ago. In the comparable third quarters, shipments and
tonnage declined 4.9% and 8.7% respectively in the LTL segment. On a
sequential quarterly basis our daily shipment count and daily tonnage measures
improved 1.7% and 2.2% respectively in the third quarter of 2009 compared to
the second quarter of 2009.
	    Vitran Logistics posted income from operations of $1.7 million and an OR
of 91.4% in the third quarter of 2009 compared to income from operations of
$1.5 million and OR of 93.8% in the third quarter of 2008. The Truckload
("TL") segment achieved income from operations during the three-month period
ended September 30, 2009 of $175,000, compared to $308,000 in 2008, and the TL
OR was 98.0%, compared to an OR of 96.6% in the prior year third quarter.

	    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 Corporation Inc.
	                         Consolidated Balance Sheets
	               (in thousands of United States dollars, US GAAP)

	                                               Sept. 30, 2009  Dec. 31, 2008
	                                                 (unaudited)     (audited)
	    Assets
	    Current assets:
	      Accounts receivable                        $     77,608   $     65,741
	      Inventory, deposits and prepaid expenses         11,764         12,063
	      Income and other taxes receivable                 1,923            792
	      Deferred income taxes                             4,073          1,877
	                                                -------------- --------------
	                                                       95,368         80,473

	    Property and equipment                            148,851        152,602
	    Intangible assets                                  11,386         13,279
	    Goodwill                                           17,768         17,057
	    Deferred income taxes                              30,691         30,181
	                                                -------------- --------------
	                                                 $    304,064   $    293,592
	                                                -------------- --------------
	                                                -------------- --------------

	    Liabilities and Shareholders' Equity
	    Current liabilities:
	      Bank overdraft                             $      4,427   $      3,912
	      Accounts payable and accrued liabilities         67,314         63,495
	      Current portion of long-term debt                17,724         16,925
	                                                -------------- --------------
	                                                       89,465         84,332

	    Long-term debt                                     74,069         93,477
	    Other                                               3,501          4,540

	    Shareholders' equity:
	      Common shares                                    99,648         77,500
	      Additional paid-in capital                        4,128          3,525
	      Retained earnings                                31,618         33,253
	      Accumulated other comprehensive income (loss)     1,635         (3,035)
	                                                -------------- --------------
	                                                      137,029        111,243
	                                                -------------- --------------
	                                                 $    304,064   $    293,592
	                                                -------------- --------------
	                                                -------------- --------------

	                 (Consolidated Statements of Income follows)



	                           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 Sept. 30,         ended Sept. 30,

	                                    2009        2008        2009        2008
	                                    ----        ----        ----        ----
	    Revenue                    $ 165,916   $ 198,605   $ 464,233   $ 572,102
	    Operating expenses           158,580     189,421     447,740     542,179
	    Depreciation and
	     amortization expense          4,977       5,203      14,951      15,968
	                              ----------- ----------- ----------- -----------
	                                 163,557     194,624     462,691     558,147

	    Income (loss) from
	     operations before
	     undernoted                    2,359       3,981       1,542      13,955

	    Interest expense, net          2,582       2,158       7,292       6,410

	    Income (loss) from
	     operations before income
	     taxes                          (223)      1,823      (5,750)      7,545

	    Income (recovery) taxes         (504)       (243)     (4,115)       (232)
	                              ----------- ----------- ----------- -----------

	    Net income (loss)          $     281   $   2,066   $  (1,635)  $   7,777
	                              ----------- ----------- ----------- -----------
	                              ----------- ----------- ----------- -----------

	    Basic income (loss) per
	     share -
	      Net income (loss)        $    0.02   $    0.15   $   (0.12)  $    0.58
	    Diluted income (loss)
	     per share -
	      Net income (loss)        $    0.02   $    0.15   $   (0.12)  $    0.57
	    Weighted average number
	     of shares:
	      Basic                   13,886,286  13,493,757  13,628,956  13,480,805
	      Diluted                 14,001,903  13,647,774  13,628,956  13,632,628

	                     (Statements of Cash Flows follows)



	                           Vitran Corporation Inc.
	                    Consolidated Statements Of Cash Flows
	                                 (Unaudited)
	               (in thousands of United States dollars, US GAAP)

	                                      Three months            Nine months
	                                     ended Sept. 30,         ended Sept. 30,

	                                    2009        2008        2009        2008
	                                    ----        ----        ----        ----
	    Cash provided by (used in):

	    Operations:
	      Net income (loss)        $     281   $   2,066   $  (1,635)  $   7,777
	      Items not involving cash
	       from operations:
	        Depreciation and
	         amortization expense      4,977       5,203      14,951      15,968
	        Deferred income taxes       (868)        (21)     (4,154)         83
	        Share-based compensation
	         expense                     163         279         603         848
	        Gain on sale of property
	         and equipment                (2)       (155)       (439)       (288)
	      Change in non-cash working
	       capital components           (956)        679      (8,269)     (9,853)
	                              ----------- ----------- ----------- -----------
	                                   3,595       8,051       1,057      14,535
	    Investments:
	      Purchase of property and
	       equipment                    (506)     (1,692)     (3,955)    (10,840)
	      Proceeds on sale of
	       property and equipment         33         935       1,178       1,387
	                              ----------- ----------- ----------- -----------
	                                    (473)       (757)     (2,777)     (9,453)
	    Financing:
	      Revolving credit facility
	       and bank overdraft        (11,478)     (2,987)      1,601       8,341
	      Repayment of long-term
	       debt                      (10,768)     (2,580)    (15,304)     (7,726)
	      Repayment of capital
	       leases                     (1,309)     (2,078)     (4,521)     (6,320)
	      Financing costs               (414)          -        (414)          -
	      Issue of Common Shares
	       in private placement       21,318           -      21,318           -
	      Issue of Common Shares
	       upon exercise of stock
	       options                       333          76         333         254
	                              ----------- ----------- ----------- -----------
	                                  (2,318)     (7,569)      3,013      (5,451)

	    Effect of translation
	     adjustment on cash             (804)        275      (1,293)        369

	    Increase in cash and
	     cash equivalents                  -           -           -           -
	    Cash and cash equivalent
	     position, beginning of
	     period                            -           -           -           -
	                              ----------- ----------- ----------- -----------
	    Cash and cash equivalent
	     position, end of period   $       -   $       -   $       -   $       -
	                              ----------- ----------- ----------- -----------
	                              ----------- ----------- ----------- -----------

	    Change in non-cash
	     working capital
	     components:
	      Accounts receivable      $  (5,378)  $     587   $ (11,867)  $ (18,989)
	      Inventory, deposits
	       and prepaid expenses        1,531       1,083         713         170
	      Income and other taxes
	       recoverable/payable           203        (651)       (934)        317
	      Accounts payable and
	       accrued liabilities         2,688        (340)      3,819       8,649
	                              ----------- ----------- ----------- -----------
	                               $    (956)  $     679   $  (8,269)  $  (9,853)
	                              ----------- ----------- ----------- -----------
	                              ----------- ----------- ----------- -----------

	                 (additional financial information follows)



	                Supplementary Segmented Financial Information
	             (in thousands of United States dollars) (Unaudited)

	    -----------------------------------  ------------------------------------
	    For the quarter ended                For the quarter ended
	    Sept. 30, 2009                       Sept. 30, 2008
	    -----------------------------------  ------------------------------------
	                        Inc. from                            Inc. from
	               Revenue Operations   OR%             Revenue Operations   OR%
	    -----------------------------------  ------------------------------------
	    LTL      $ 137,479   $ 1,502   98.9  LTL      $ 166,227   $ 3,043   98.2
	    -----------------------------------  ------------------------------------
	    LOG      $  19,810   $ 1,698   91.4  LOG      $  23,375   $ 1,451   93.8
	    -----------------------------------  ------------------------------------
	    TL       $   8,627   $   175   98.0  TL       $   9,003   $   308   96.6
	    -----------------------------------  ------------------------------------

	    -----------------------------------  ------------------------------------
	    For the nine months ended            For the nine months ended
	    Sept. 30, 2009                       Sept. 30, 2008
	    -----------------------------------  ------------------------------------
	                        Inc. from                            Inc. from
	               Revenue Operations   OR%             Revenue Operations   OR%
	    -----------------------------------  ------------------------------------
	    LTL      $ 384,509   $   (25) 100.0  LTL      $ 483,803  $ 13,721   97.2
	    -----------------------------------  ------------------------------------
	    LOG      $  54,641   $ 3,552   93.5  LOG      $  62,449  $  3,002   95.2
	    -----------------------------------  ------------------------------------
	    TL       $  25,083   $   623   97.5  TL       $  25,850  $  1,008   96.1
	    -----------------------------------  ------------------------------------

	                    LTL SEGMENT - Statistical Information
	                                 (Unaudited)

	                ---------------------------------------------
	                            For the quarter ended
	                               Sept. 30, 2009
	                               --------------
	                ---------------------------------------------
	                ($U.S.)                     LTL    Q. over Q.
	                                         Division   % Change
	                ---------------------------------------------
	                Revenue (000's)         $ 137,479  (x)(16.6%)
	                ---------------------------------------------
	                No. of Shipments          979,404      (4.9%)
	                ---------------------------------------------
	                Weight (000's lbs)      1,429,041      (8.7%)
	                ---------------------------------------------
	                Revenue per shipment    $  140.37  (x)(12.3%)
	                ---------------------------------------------
	                Revenue per CWT         $    9.62   (x)(8.7%)
	                ---------------------------------------------


	                ---------------------------------------------
	                          For the nine months ended
	                               Sept. 30, 2009
	                               --------------
	                ---------------------------------------------
	                ($U.S.)                     LTL    Q. over Q.
	                                         Division   % Change
	                ---------------------------------------------
	                Revenue (000's)         $ 384,509  (x)(17.6%)
	                ---------------------------------------------
	                No. of Shipments        2,788,780      (8.4%)
	                ---------------------------------------------
	                Weight (000's lbs)      4,093,058     (11.8%)
	                ---------------------------------------------
	                Revenue per shipment    $  137.88  (x)(10.0%)
	                ---------------------------------------------
	                Revenue per CWT         $    9.39   (x)(6.6%)
	                ---------------------------------------------
	    (x) All % changes have been normalized for the impact of foreign exchange
	        fluctuation, period over period
	    >>

	    %CIK: 0000946823

	    /For further information: Richard Gaetz, President/CEO; Sean Washchuk, VP
Finance/CFO, Vitran Corporation Inc., (416) 596-7664/
	    (VTNC VTN.)

CO:  Vitran Corporation Inc.

CNW 09:10e 27-OCT-09