EX-99.1.1 2 exhibit1.htm EX-99.1.1 EX-99.1.1

News Announcement

REMINDER:
Vitran management will conduct a conference call and webcast tomorrow, April 21 at 10:00 a.m. (Eastern), to discuss the Company’s 2005 first quarter results.
Conference call dial-in: 800/266-1764
Live Webcast: www.vitran.com (select “Investor Relations”)

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

VITRAN DELIVERS NET INCOME GROWTH OF 67%,
HIGHLIGHTING 14
TH CONSECUTIVE QUARTER OF NET INCOME GROWTH

TORONTO, ONTARIO (April 20, 2005) – Vitran Corporation Inc. (NASDAQ: VTNC, TSX: VTN), a North American transportation and logistics firm, today announced financial results for the 2005 first quarter ended March 31, 2005 at its Annual and Special Meeting of Shareholders held at the Toronto Stock Exchange (all figures reported in $U.S.).

For the 2005 first quarter, the Company achieved net income of $2.8 million, or 0.22 per diluted share, on revenue of $93.9 million. In the comparable 2004 quarter, Vitran recorded net income of $1.6 million, or $0.13 per diluted share on revenue of $87.1 million. The prior year’s first quarter results were adversely impacted by a CN Railway strike.

“The first quarter of 2005 marked Vitran’s 14th straight quarter of year-over-year earnings growth, and we are pleased with the consistently improving results we have achieved over the past 3 1/2 years,” stated Vitran President and Chief Executive Officer Rick Gaetz. “In addition to the 67% net income growth Vitran has delivered, we remain focused on making acquisitions that will further expand our U.S. footprint beyond the Central States.”

At March 31, 2005, Vitran had $35.3 million of cash and marketable securities. In addition, the Company had $30.6 million of unused credit facilities.

First quarter per share results are based on 12.8 million and 12.7 million diluted weighted average shares outstanding during the 2005 and 2004 three-month periods, respectively.

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Segmented Results
Income from operations at Vitran’s LTL (less-than-truckload) segment rose 61 percent during the 2005 first quarter to $3.3 million, with revenue growing at both the Canadian and U.S. business units. This resulted in a 140 basis point improvement in the segment’s consolidated OR (operating ratio), compared to the 2004 first quarter. The U.S. LTL operation increased shipments and revenue per hundred-weight in the current quarter. The Canadian LTL operation, which was impacted by the CN Railway strike in the prior year, recorded improvements in revenue and income from operations compared to the 2004 first quarter. The Canadian LTL operation recorded double-digit growth in both revenue per shipment and revenue per hundred-weight during the three-month period.

Vitran’s Truckload segment grew income from operations by 66 percent during the quarter, and lowered its OR to 91.7. The Logistics segment achieved nine percent higher revenue, and an eight percent increase in operating income on a flat, 95.9 OR during the first quarter. The Logistics segment continues to make progress towards filling the capacity at its new distribution facility.

Guidance Update
Management maintains its 2005 diluted earnings per share guidance for the year of $1.23 to $1.35.

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.

Statements in the press release regarding management’s future expectation, beliefs, goals, plans, or prospects constitute forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. For this purpose, any statements that are contained herein that are not statements or historical fact may be deemed to be forward-looking statements made pursuant to the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Without limiting the foregoing, the words “believes”, “anticipates”, “plans” “intends”, “will”, “should”, ”expects”, “projects”, and similar expressions are intended to identify forward-looking statements. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual result, future circumstances or events to differ materially from those projected in the forward-looking statements. These risks include, but are 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, government regulation changes, environmental hazards and other risks detailed from time-to-time in the Company’s public disclosure documents or other

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filing with the Canadian and United States securities commissions or other securities regulatory
bodies. The forward-looking statements are made as of the date hereof, and the Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

(tables follow)

Vitran Corporation Inc.
Consolidated Balance Sheets

(in thousands of United States dollars)

March 31, 2005 Dec. 31, 2004

                 
Assets                
Current assets:
               
Cash
  $ 3,765     $ 7,375  
Marketable securities
    31,539       33,087  
Accounts receivable
    43,485       40,124  
Inventory, deposits & prepaid expenses
    5,600       5,924  
Future income tax assets
    3,477       3,667  
 
               
 
    87,866       90,177  
Capital assets
    42,343       37,563  
Goodwill
    45,266       45,304  
 
               
 
  $ 175,475     $ 173,044  
 
               
Liabilities and Shareholders’ Equity Current liabilities:
               
Accounts payable & accrued liabilities $34,926 $33,377
       
Income and other taxes payable
    1,638       2,399  
Current portion of long-term debt
    3,781       3,030  
 
               
 
    40,345       38,806  
Long-term debt
    10,187       11,507  
Future income tax liabilities
    3,930       3,546  
Shareholders’ equity:
               
Common shares
    60,595       60,798  
Contributed surplus
    452       323  
Retained earnings
    57,274       54,972  
Cumulative translation adjustment
    2,692       3,092  
 
               
 
    121,013       119,185  
 
               
 
  $ 175,475     $ 173,044  
 
               

(Statements of Income follows)

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VITRAN CORPORATION INC.
Consolidated Statements Of Income

(unaudited) (in thousands of $U.S., except share and per share amounts)

                 
    Three months   Three months
    Ended   ended
    Mar. 31, 2005   Mar. 31, 2004
Revenue
  $ 93,941   $ 87,146
Operating expenses
  80,144   75,574
Selling, general and administrative expenses
  8,817   8,163
Other expense (income)
  (10 )   (76 )
 
               
 
  88,951   83,661
Income from operations before depreciation
  4,990   3,485
Depreciation expense
  1,331   1,308
 
               
Income from operations before undernoted
  3,659   2,177
Interest expense (income), net
  (48 )   43
Income from operations before income taxes
  3,707   2,134
Income taxes
  953   485
 
               
Net Income
  $ 2,754   $ 1,649
 
               
Earnings per share:
               
Basic – Net Income
  $ 0.22   $ 0.14
Diluted – Net Income
  $ 0.22   $ 0.13
 
               
Weighted average number of shares:
               
Basic
  12,411,968   12,115,292
 
               
Diluted
  12,754,930   12,697,994
 
               

(Statements of Cash Flows follows)

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VITRAN CORPORATION INC.
Consolidated Statements Of Cash Flows

(unaudited) (in thousands of $U.S.)

                 
    Three months   Three months
    ended   ended
    Mar. 31, 2005   Mar. 31, 2004
Cash provided by (used in):
               
Operations:
               
Net income
  $ 2,754     $ 1,649  
Items not involving cash from operations:
               
Depreciation expense
    1,331       1,308  
Future income taxes
    565       296  
Stock based compensation expense
    129        
Loss (gain) on sale of fixed assets
    (10 )     (76 )
 
               
 
    4,769       3,177  
Change in non-cash working capital components
    (2,249 )     (10,189 )
 
               
 
    2,520       (7,012 )
Investments:
               
Purchase of capital assets
    (6,222 )     (1,635 )
Proceeds on sale of capital assets
    14       135  
Marketable securities
    1,369       (145 )
 
               
 
    (4,839 )     (1,645 )
Financing:
               
Repayment of long-term debt
    (570 )     (1,809 )
Issue of Common Shares upon exercise of stock options
    17       351  
Repurchase of Common Shares
    (692 )      
 
               
 
    (1,245 )     (1,458 )
Effect of translation adjustment on cash
    (46 )     58  
 
               
Increase (decrease) in cash position
    (3,610 )     (10,057 )
Cash position, beginning of period
    7,375       12,417  
 
               
Cash position, end of period
  $ 3,765     $ 2,360  
Change in non-cash working capital components:
               
Accounts receivable
  $ (3,361 )   $ (5,004 )
Inventory, deposits and prepaid expenses
    324       (6 )
Income and other taxes recoverable/payable
    (761 )     (1,285 )
Accounts payable and accrued liabilities
    1,549       (3,894 )
 
               
 
  $ (2,249 )   $ (10,189 )

(additional financial information follows)

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LTL Statistical Information — U.S. and CDN Divisions

                                         
For the quarter ended March 31, 2005
                                       
 
          Q. overQ.                   Q. over Q.
($U.S.)
  U.S. LTL   % Change   ($CDN)   CDN LTL   % Change
 
                                       
Revenue (000’s)
  $ 42,619       5.4     Revenue (000's)
  $ 41,088       4.1  
 
                                       
No. of Shipments
    370,426       3.9     No. of Shipments
    201,566       (8.0 )
 
                                       
Weight (000’s lbs)
    513,968       (1.5 )   Weight (000's lbs)
    387,468       (8.7 )
 
                                       
Revenue per shipment
  $ 115.05       1.5     Revenue per shipment
  $ 203.84       13.1  
 
                                       
Revenue per CWT
  $ 8.29       7     Revenue per CWT
  $ 10.60       14  
 
                                       

Supplementary Segmented Financial Information
(000’s of $U.S.)

                                                         
For the quarter                           For the quarter                        
ended March 31,                           ended March 31,                        
2005                           2004                        
 
  Revenue   Inc. from   OR%           Revenue   Inc. from   OR%
 
        Operations                       Operations      
 
                                               
LTL
    76,105       3,263       95.7     LTL     70,259       2,031       97.1  
 
                                                       
LOG
    8,876       364       95.9     LOG     8,167       337       95.9  
 
                                                       
TL
    8,960       742       91.7     TL     8,720       446       94.9  
 
                                                       

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