| 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)
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(additional financial information follows)
Supplementary Segmented Financial Information
(in thousands of United States dollars) (Unaudited)
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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 $2,764 93.3
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LTL SEGMENT -- Statistical Information
(Unaudited)
For the quarter ended
June 30, 2011
------------------------------------------
Q. over
($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)
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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 |