Vitran Reports 2011 Second Quarter Results


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                                   REMINDER:
  Vitran management will conduct a conference call and webcast today: July 21,
                                at 5:00 p.m. ET,
              to discuss the Company's 2011 second quarter results
     Conference call dial-in: 1-888-575-5159 or 416-764-8671 (International)
           Live Webcast: www.vitran.com (select "Investor Relations")


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TORONTO, July 21, 2011 (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 2011 and the six-month period ended June 30, 2011 (all figures reported in $US).

Vitran reported a 23.1% increase in revenue to $208.9 million, for the quarter ended June 30, 2011 compared to $169.7 million for second quarter of 2010. Adjusting for the impact of foreign exchange on Vitran's Canadian operations, consolidated revenue increased 20.5% in the comparable second quarters. Vitran recorded a net loss from continuing operations of $2.3 million, or $0.14 per share for the second quarter of 2011 compared to net income from continuing operations of $1.6 million or $0.10 per diluted shares.

Vitran reported a 20.6% increase in revenue to $394.3 million, for the six months ended June 30, 2011 compared to $326.9 million for the same period in 2010. Adjusting for the impact of foreign exchange on Vitran's Canadian operations, consolidated revenue increased 18.4% in the comparable six-month periods. Vitran recorded a net loss from continuing operations of $2.5 million, or $0.15 per share for the six-month period ended June 30, 2011 compared to net income from continuing operations of $0.3 million or $0.02 per diluted shares.

On a non-GAAP basis that would include adjusting for a tax recovery on Vitran's U.S. operations, the Company recorded an adjusted loss from continuing operations of $0.03 per share for the second quarter of 2011 and $0.01 per share for the six-month period ended June 30, 2011. At the end of the fourth quarter of 2010, in accordance with FASB ASC 740-10, Vitran temporarily discontinued recording an income tax recovery and deferred tax asset for its U.S. operations

"We are disappointed with our consolidated second quarter results, however our Canadian LTL operation posted strong results and our Supply Chain Operation had another record quarter. Our U.S. LTL operation had a significant challenge working out of the first quarter weather issues that were compounded by the acquisition of Milan on February 19th, which at close had approximately 2.5 days of freight backlogged. We managed the freight current, and improved our U.S. LTL operation as the quarter evolved, but results were impacted in the front half of the second quarter most significantly. Our U.S. LTL operation's tonnage grew 15.8% but was offset by higher than expected labour, maintenance and workers compensation expenses.

We are very pleased with the performance of the Canadian LTL operation and Supply Chain Operation and our principal focus will be to raise our U.S. LTL operations to this same level of excellence," stated Vitran President and Chief Executive Officer Rick Gaetz.

"I am also pleased to announce that our Supply Chain Operation has secured a contract with a major retailer to commence a dedicated distribution center in Sacramento, California at the end of September 2011," concluded Mr. Gaetz.

Segmented Results

The LTL (less-than-truckload) segment revenue improvement of 19.9% to $178.4 million for the second quarter of 2011 compared to revenue of $148.8 million in the second quarter of 2010. Loss from operations for the 2011 second quarter was $1.2 million, compared to income from operations of $3.9 million in the comparable period a year ago. In the comparable second quarters, shipments and tonnage improved 9.9% and 10.6% respectively in the LTL segment.

The Supply Chain Operation posted 46.1% revenue improvement, record income from operation of $2.3 million and an OR of 92.3% in the second quarter of 2011 compared to income from operations of $1.4 million and OR of 93.3% in the second quarter of 2010.

About Vitran Corporation Inc.

Vitran Corporation Inc. is a North American group of transportation companies offering less-than-truckload and supply chain 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.

                             (tables follow)



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

                                June 30,     December
                                  2011       31, 2010
                               (unaudited)   (audited)
  Assets
  Current assets:
     Accounts receivable          $ 94,084    $ 72,212
     Inventory, deposits and
      prepaid expenses               9,861       9,761
     Current assets of
      discontinued operations         ----       1,683

     Deferred income taxes             114         110
                               -----------  ----------
                                   104,059      83,766

  Property and equipment           141,383     138,847
  Intangible assets                  7,037       8,268

  Goodwill                          14,650      14,453
                               -----------  ----------

                                  $267,129   $ 245,334
                               ===========  ==========
  Liabilities and
   Shareholders' Equity
  Current liabilities:
     Bank overdraft                  $ 511     $ 3,906
     Accounts payable and
      accrued liabilities           86,858      68,955
     Income and other taxes
      payable                          519         154
     Current liabilities of
      discontinued operations          201       2,410
     Current portion of
      long-term debt                13,111      19,545
                               -----------  ----------
                                   101,200      94,970
  Long-term debt                    66,362      49,838
  Other                                182         519
  Deferred income taxes              1,470       1,160

  Shareholders' equity:
     Common shares                  99,743      99,658
     Additional paid-in
      capital                        5,094       4,838
     Accumulated deficit          (13,422)    (10,901)
     Accumulated other
      comprehensive income           6,500       5,252
                               -----------  ----------

                                    97,915      98,847
                               -----------  ----------

                                 $ 267,129   $ 245,334
                               ===========  ==========

       (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                Six months
                                              ended June 30,             ended June 30,


                                             2011        2010           2011        2010
                                          ----------  ----------     ----------  ----------
  Revenue                                   $208,881    $169,713       $394,269    $326,856
  Operating expenses                         205,082     161,126        384,606     313,793

  Depreciation and amortization expense        4,040       4,629          8,397       9,395
                                          ----------  ----------     ----------  ----------
                                             209,122     165,755        393,003     323,188

  Income (loss) from continuing
   operations before undernoted                (241)       3,958          1,266       3,668

  Interest expense, net                        1,311       1,920          2,653       4,023

  Income (loss) from continuing
   operations before income taxes            (1,552)       2,038        (1,387)       (355)


  Income taxes (recovery)                        745         471          1,134       (645)
                                          ----------  ----------     ----------  ----------

  Net income (loss) from continuing
   operations                                (2,297)       1,567        (2,521)         290
                                          ----------  ----------     ----------  ----------


  Discontinued operations, net of tax             --         161             --         509
                                          ----------  ----------     ----------  ----------


  Net income (loss)                          (2,297)       1,728        (2,521)         799
                                          ==========  ==========     ==========  ==========

  Basic and Diluted income (loss) per
   share
    Net loss from continuing operations     $ (0.14)       $0.10       $ (0.15)       $0.02
    Discontinued operations                     $ --       $0.01           $ --       $0.03
    Net loss                                $ (0.14)       $0.11       $ (0.15)       $0.05


  Weighted average number of shares:
    Basic                                 16,330,041  16,266,441     16,322,748  16,266,441
    Diluted                               16,330,041  16,365,410     16,322,748  16,359,079


                             (Statements of Cash Flows follows)



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

                                                   Three months                 Six months
                                                  ended June 30,              ended June 30,


                                                 2011        2010           2011         2010
                                              ----------  ----------     -----------  ----------
  Cash provided by (used in):

  Operations:
    Net income (loss)                          $ (2,297)      $1,728       $ (2,521)        $799
    Items not involving cash from
     operations:
      Depreciation and amortization expense        4,040       4,629           8,397       9,395
      Deferred income taxes                           64         115              59       (382)
      Share-based compensation expense               119         143             261         296
      Gain on sale of property and equipment        (67)         (1)           (105)       (145)
      Income from discontinued operations             --       (161)              --       (509)
    Change in non-cash working capital
     components                                    2,270     (2,413)         (3,704)     (6,071)
                                              ----------  ----------     -----------  ----------
    Continuing operations                          4,129       4,040           2,387       3,383

    Discontinued operations                      (1,342)         267           (526)         873
                                              ----------  ----------     -----------  ----------
                                                   2,787       4,307           1,861       4,256
  Investments:
    Purchase of property and equipment           (4,268)     (1,116)         (6,608)     (3,981)
    Proceeds on sale of property and
     equipment                                       265         116             329         826

    Acquisition of business assets                    --          --         (1,737)          --
                                              ----------  ----------     -----------  ----------
                                                 (4,003)     (1,000)         (8,016)     (3,155)
  Financing:
    Revolving credit facility and bank
     overdraft                                     5,438         837          14,615       8,659
    Repayment of long-term debt                  (3,000)     (3,447)         (6,000)     (7,355)
    Repayment of capital leases                    (939)     (1,124)         (1,910)     (2,397)
    Issue of Common Shares upon exercise of
     stock options                                    --          --              80          --
                                              ----------  ----------     -----------  ----------
                                                   1,499     (3,734)           6,785     (1,093)


  Effect of translation adjustment on cash         (283)         427           (630)         (8)
                                              ----------  ----------     -----------  ----------

  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                        $ (5,057)      $1,493      $ (21,872)   $(10,503)
    Inventory, deposits and prepaid expenses       1,791       1,629           (100)       1,246
    Income and other taxes
     recoverable/payable                             659     (1,105)             365     (2,309)

    Accounts payable and accrued liabilities       4,877     (4,430)          17,903       5,495
                                              ----------  ----------     -----------  ----------

                                                  $2,270   $ (2,413)       $ (3,704)   $ (6,071)
                                              ==========  ==========     ===========  ==========

                            (additional financial information follows)



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



  ---------------------------------------------------------------------------------------------

     For the
  quarter ended                                   For the quarter
                                                        ended
  June 30, 2011                                     June 30, 2010
  -------------  --------  ----------  -----     ------------------  --------  ----------  ----

                            Inc. from                                           Inc. from
                  Revenue  Operations   OR%                           Revenue  Operations   OR%
  -------------  --------  ----------  -----     ------------------  --------  ----------  ----

       LTL       $178,362   $ (1,182)  100.7            LTL          $148,826      $3,856  97.4
  -------------  --------  ----------  -----     ------------------  --------  ----------  ----

       SCO        $30,519      $2,337   92.3            SCO           $20,887      $1,401  93.3
  -------------  --------  ----------  -----     ------------------  --------  ----------  ----



  -------------  --------  ----------  -----     ------------------  --------  ----------  ----

   For the six                                   For the six months
   months ended                                         ended
  June 30, 2011                                     June 30, 2010
  -------------  --------  ----------  -----     ------------------  --------  ----------  ----

                            Inc. from                                           Inc. from
                  Revenue  Operations   OR%                           Revenue  Operations   OR%
  -------------  --------  ----------  -----     ------------------  --------  ----------  ----

       LTL       $337,351     $ (256)  100.1            LTL          $285,844      $3,233  98.9
  -------------  --------  ----------  -----     ------------------  --------  ----------  ----
       SCO        $56,918      $4,427   92.2            SCO           $41,012      $2,764  93.3


  ---------------------------------------------------------------------------------------------



    LTL SEGMENT -- Statistical Information
                 (Unaudited)


             For the quarter ended
                 June 30, 2011
  ------------------------------------------


                                     Q. over
  ($U.S.)                   LTL       Q. %
                          Division   Change
  ---------------------  ---------  --------

  Revenue (000's)         $178,362   * 17.0%
  ---------------------  ---------  --------

  No. of Shipments       1,114,263     9.90%
  ---------------------  ---------  --------

  Weight (000's lbs)     1,684,381    10.60%
  ---------------------  ---------  --------

  Revenue per shipment     $160.07    * 6.4%
  ---------------------  ---------  --------

  Revenue per CWT           $10.59    * 5.8%
  ---------------------  ---------  --------





           For the six months ended
                 June 30, 2011
  ------------------------------------------


                                     Q. over
  ($U.S.)                   LTL       Q. %
                          Division   Change
  ---------------------  ---------  --------

  Revenue (000's)         $337,351   * 15.5%
  ---------------------  ---------  --------

  No. of Shipments       2,126,784     8.50%
  ---------------------  ---------  --------

  Weight (000's lbs)     3,210,920     8.70%
  ---------------------  ---------  --------

  Revenue per shipment     $158.62    * 6.5%
  ---------------------  ---------  --------

  Revenue per CWT           $10.51    * 6.3%
  ---------------------  ---------  --------


   * All % changes have been normalized for
        the impact of foreign exchange
        fluctuation, period over period



                           Non-GAAP Measures


                                               Three       Six months
                                              months
                                            ended June     ended June
                                               30,            30,


                                               2011           2011
                                            ----------     ----------
  Net loss from continuing operations        $ (2,297)      $ (2,521)

  Tax recovery from US operations                1,795          2,387
                                            ----------     ----------

  Adjusted net loss from continuing
   operations                                    (502)          (134)
                                            ==========     ==========

  Weighted average shares outstanding:
  Basic                                     16,330,041     16,322,748
  Diluted                                   16,330,041     16,322,748

  Adjusted basic and diluted loss per
   share from continuing operations             (0.03)         (0.01)
                                            ==========     ==========

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Vitran Corporation

CONTACT: Richard Gaetz, President/CEO
Sean Washchuk, VP Finance/CFO
Vitran Corporation Inc.
416/596-7664