TORONTO, July 22, 2010 (GLOBE NEWSWIRE) -- Vitran Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), a North American transportation and supply chain firm, today announced financial results for the second quarter of 2010 and the six-month period ended June 30, 2010 (all figures reported in $U.S.).
Vitran reported a 293% increase in net income to $1.7 million, or $0.11 per diluted share, on revenues of $179.0 million for the quarter ended June 30, 2010. In the comparable 2009 three-month period, the Company achieved net income of $0.4 million, or $0.03 per diluted share on revenue of $158.7 million. The majority of the consolidated increases in revenue and profitability were driven by significant improvements in the LTL segment.
"We continue to be pleased with the improvement in the LTL segment's results and strong performance in the Supply Chain Operation. Our LTL tonnage increased 10% for the quarter, but most importantly our yield grew sequentially each month from February 2010. Our LTL yield improved 2.1% from the beginning of the quarter to the end of the 2010 second quarter. We believe we can continue to increase yield through the third quarter," stated Vitran President and Chief Executive Officer Rick Gaetz.
"I am also pleased to announce that our Supply Chain Operation has secured contracts with major U.S. retailers to commence operations in two Western United States markets during the third quarter of 2010."
"Lastly, for the third consecutive quarter, Vitran was able to reduce its consolidated leverage ratio resulting in another 50 basis point reduction on our syndicated debt margins starting in the third quarter of 2010," concluded Mr. Gaetz. Revolving and term debt margin reductions have accumulated to 150 basis points over the past three quarters.
Segmented Results
The LTL (less-than-truckload) segment posted income from operations for the 2010 second quarter of $3.9 million, with an OR (operating ratio) of 97.4% compared to income from operations of $1.2 million and an OR of 99.1% in the comparable period a year ago. In the comparable second quarters, shipments and tonnage improved 6.1% and 9.7% respectively in the LTL segment.
The Supply Chain Operation posted income from operations of $1.4 million and an OR of 93.3% in the second quarter of 2010 compared to income from operations of $1.4 million and OR of 92.3% in the second quarter of 2009. The Truckload segment achieved income from operations during the three-month period ended June 30, 2010 of $184,000, compared to $256,000 in 2009, and the Truckload OR was 98.0%, compared to an OR of 97.0% in the prior year second quarter.
About Vitran Corporation Inc.
Vitran Corporation Inc. is a North American group of transportation companies offering less-than-truckload, supply chain, truckload, and freight brokerage services. To find out more about Vitran Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), visit the website at www.vitran.com.
The Vitran Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7302
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.
REMINDER: |
Vitran management will conduct a conference call and webcast today: July 22, at 11:30 a.m. ET, |
to discuss the Company's 2010 second quarter results |
Conference call dial-in: 1-888-575-5160 or 416-764-8633 (International) |
Live Webcast: www.vitran.com (select "Investor Relations") |
Vitran Corporation Inc. | ||
Consolidated Balance Sheets | ||
(in thousands of United States dollars, US GAAP) | ||
June 30, 2010 | Dec. 31, 2009 | |
(unaudited) | (audited) | |
Assets | ||
Current assets: | ||
Accounts receivable | $80,796 | $69,591 |
Inventory, deposits and prepaid expenses | 10,224 | 11,539 |
Income and other taxes receivable | 2,770 | 683 |
Deferred income taxes | 3,465 | 3,495 |
97,255 | 85,308 | |
Property and equipment | 140,055 | 145,792 |
Intangible assets | 9,511 | 10,766 |
Goodwill | 18,801 | 18,878 |
Deferred income taxes | 33,857 | 33,594 |
$299,479 | $294,338 | |
Liabilities and Shareholders' Equity | ||
Current liabilities: | ||
Bank overdraft | $1,124 | $105 |
Accounts payable and accrued liabilities | 71,465 | 65,446 |
Current portion of long-term debt | 15,927 | 17,125 |
88,516 | 82,676 | |
Long-term debt | 72,043 | 72,956 |
Other | 2,227 | 2,919 |
Shareholders' equity: | ||
Common shares | 99,584 | 99,584 |
Additional paid-in capital | 4,560 | 4,264 |
Retained earnings | 30,080 | 29,281 |
Accumulated other comprehensive income | 2,469 | 2,658 |
136,693 | 135,787 | |
$299,479 | $294,338 |
Vitran Corporation Inc. | ||||
Consolidated Statements Of Income | ||||
(Unaudited) | ||||
(in thousands of United States dollars except per share amounts, US GAAP) | ||||
Three months ended June 30, |
Six months ended June 30, |
|||
2010 | 2009 | 2010 | 2009 | |
Revenue | $ 179,007 | $ 158,682 | $ 344,938 | $ 298,317 |
Operating expenses | 170,076 | 151,698 | 330,874 | 289,160 |
Depreciation and amortization expense | 4,789 | 4,947 | 9,724 | 9,974 |
174,865 | 156,645 | 340,598 | 299,134 | |
Income (loss) from operations before undernoted | 4,142 | 2,037 | 4,340 | (817) |
Interest expense, net | 1,920 | 2,514 | 4,023 | 4,710 |
Income (loss) from operations before income taxes | 2,222 | (477) | 317 | (5,527) |
Income (recovery) taxes | 494 | (917) | (482) | (3,611) |
Net income (loss) | $ 1,728 | $ 440 | $ 799 | $ (1,916) |
Basic and Diluted income (loss) per share -- | ||||
Net income (loss) | $ 0.11 | $ 0.03 | $ 0.05 | $ (0.14) |
Weighted average number of shares: | ||||
Basic | 16,266,441 | 13,498,159 | 16,266,441 | 13,498,159 |
Diluted | 16,365,410 | 13,592,162 | 16,359,079 | 13,498,159 |
Vitran Corporation Inc. | ||||
Consolidated Statements Of Cash Flows | ||||
(Unaudited) | ||||
(in thousands of United States dollars, US GAAP) | ||||
Three months ended June 30, |
Six months ended June 30, |
|||
2010 | 2009 | 2010 | 2009 | |
Cash provided by (used in): | ||||
Operations: | ||||
Net income (loss) | $ 1,728 | $ 440 | $ 799 | $ (1,916) |
Items not involving cash from operations: | ||||
Depreciation and amortization expense | 4,789 | 4,947 | 9,724 | 9,974 |
Deferred income taxes | 138 | (966) | (219) | (3,286) |
Share-based compensation expense | 143 | 206 | 296 | 440 |
Gain on sale of property and equipment | (20) | (8) | (164) | (437) |
Change in non-cash working capital components | (2,471) | (6,817) | (6,180) | (7,313) |
4,307 | (2,198) | 4,256 | (2,538) | |
Investments: | ||||
Purchase of property and equipment | (1,116) | (1,822) | (3,981) | (3,449) |
Proceeds on sale of property and equipment | 116 | 98 | 826 | 1,145 |
(1,000) | (1,724) | (3,155) | (2,304) | |
Financing: | ||||
Revolving credit facility and bank overdraft | 837 | 8,453 | 8,659 | 13,079 |
Repayment of long-term debt | (3,447) | (2,268) | (7,355) | (4,536) |
Repayment of capital leases | (1,124) | (1,392) | (2,397) | (3,212) |
Issue of Common Shares upon exercise of stock options | -- | -- | -- | -- |
(3,734) | 4,793 | (1,093) | 5,331 | |
Effect of translation adjustment on cash | 427 | (871) | (8) | (489) |
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 | $ 1,257 | $ (6,422) | $ (11,205) | $ (6,489) |
Inventory, deposits and prepaid expenses | 1,687 | (1,130) | 1,315 | (818) |
Income and other taxes recoverable/payable | (1,105) | (414) | (2,309) | (1,137) |
Accounts payable and accrued liabilities | (4,310) | 1,149 | 6,019 | 1,131 |
$ (2,471) | $ (6,817) | $ (6,180) | $ (7,313) |
Supplementary Segmented Financial Information | ||||||||
(in thousands of United States dollars) (Unaudited) | ||||||||
For the quarter ended June 30, 2010 |
For the quarter ended June 30, 2009 |
|||||||
Revenue |
Inc. from Operations |
OR% |
Revenue |
Inc. from Operations |
OR% |
|||
LTL | $ 148,826 | $ 3,856 | 97.4 | LTL | $ 131,667 | $ 1,157 | 99.1 | |
LOG | $ 20,887 | $ 1,401 | 93.3 | LOG | $ 18,569 | $ 1,433 | 92.3 | |
TL | $ 9,294 | $ 184 | 98.0 | TL | $ 8,446 | $ 256 | 97.0 | |
For the six months ended June 30, 2010 |
For the six months ended June 30, 2009 |
|||||||
Revenue |
Inc. from Operations |
OR% |
Revenue |
Inc. from Operations |
OR% |
|||
LTL | $ 285,844 | $ 3,233 | 98.9 | LTL | $ 247,030 | $ (1,527) | 100.6 | |
LOG | $ 41,012 | $ 2,764 | 93.3 | LOG | $ 34,831 | $ 1,854 | 94.7 | |
TL | $ 18,082 | $ 672 | 96.3 | TL | $ 16,456 | $ 448 | 97.3 |
LTL SEGMENT – Statistical Information | ||
(Unaudited) | ||
For the quarter ended June 30, 2010 |
||
($U.S.) |
LTL Division |
Q. over Q. % Change |
Revenue (000's) | $ 148,826 | * 10.0% |
No. of Shipments | 1,013,792 | 6.1% |
Weight (000's lbs) | 1,522,355 | 9.7% |
Revenue per shipment | $ 146.80 | * 3.7% |
Revenue per CWT | $ 9.78 | * 0.2% |
For the six-months ended June 30, 2010 |
||
($U.S.) |
LTL Division |
Q. over Q. % Change |
Revenue (000's) | $ 285,844 | * 11.1% |
No. of Shipments | 1,960,111 | 8.3% |
Weight (000's lbs) | 2,953,951 | 10.9% |
Revenue per shipment | $ 145.83 | * 2.6% |
Revenue per CWT | $ 9.68 | * 0.2% |
* All % changes have been normalized for the impact of foreign exchange fluctuation, period over period