Algoma Central Corporation - Announces 2015 Results for the Three and Nine Months Ended September 30

(TSX : ALC)

ST. CATHARINES, ON, Nov. 4, 2015 /CNW/ - Algoma Central Corporation ("Algoma" – www.algonet.com) is reporting third quarter revenues of $133,831 compared to $163,950 for the same period in 2014. The decrease in revenue was mainly in the Domestic Dry-Bulk and Product Tankers segments reflecting the impact of lower fuel prices and reduced customer shipments.  The revenues in the Real Estate segment were higher in 2015 when compared to 2014 due to higher occupancy and the revenues in the Ocean Shipping segment were slightly higher due to currency changes.

Revenues for the nine months ended September 30, 2015 of $318,268 were $35,753 or 10% lower than the revenues for the same period in the prior year. Decreases in revenue in the Domestic Dry-Bulk and the Product Tankers segments were due manly to the impact of lower fuel prices and reduced customer shipments. The Ocean Shipping segment experienced a decrease in revenues in 2015 due to a reduction in operating days from the regulatory dry-docking on one of its vessels. Real estate segment revenues were up reflecting higher occupancy in most properties.

The segment earnings after income taxes of $18,024 for the 2015 third quarter, and the segment earnings after income taxes excluding the impact of the after-tax gain on the contract cancellation of $10,067 for the 2015 nine month period  were lower when compared to similar periods in 2014 due primarily to lower earnings in the Domestic Dry-Bulk segment.

Net earnings for the 2015 nine months reflect a gain on the cancellation of shipbuilding contracts of $10,067. Excluding this gain from the 2015 results, net earnings for the nine month period ended September 30, 2015 would have been $5,114 compared to net earnings of $17,448 for the for the same period in the prior year.

The results from operations are as follows: 


Three Months

Ended September 30

Nine Months

Ended September 30

Revenues

2015

2014

2015

2014






Domestic Dry-Bulk

$

93,108

$

120,705

$

207,471

$

230,676

Product Tankers


20,751


25,168


58,909


69,931

Ocean Shipping


14,456


13,658


42,214


46,983

Real Estate


8,963


8,127


24,565


22,781











$

137,278


167,658

$

333,159

$

370,371

Revenues of the joint ventures      


(3,447)


(3,708)


(14,891)


(16,350)










$

133,831

$

163,950

$

318,268

$

354,021










 


Three Months

Ended September 30

Nine Months

Ended September 30

Net Earnings

2015

2014

2015

2014






Operating income (loss) net of income tax











Domestic Dry-Bulk

$

11,003

$

19,835

$

(9,778)

$

3,877


Impairment on parts and spares


-


(2,940)


-


(2,940)


(Loss) gain on cancellation of shipbuilding contracts


(145)


-


10,067


-



10,858


16,895


289


937


Product Tankers


3,766


4,940


9,397


9,238


Ocean Shipping


2,346


3,084


8,533


10,327


Real Estate


1,054


960


2,068


1,707












18,024


25,879


20,287


22,209

Not specifically identifiable to segments










Net gain (loss) on translation of foreign-denominated monetary assets and liabilities


1,192


(792)


3,231


913


Interest expense


(4,289)


(2,390)


(9,515)


(7,571)


Interest income


202


147


946


47


Income tax (expense) recovery


(287)


1,523


232


1,850











$

14,842

$

24,367

$

15,181

$

17,448









 

Additional details on the results can be found in the Company's Management Discussion and Analysis for the three and nine months ended September 30, 2015 and 2014.

Cash Dividends

The Board of Directors has authorized payment of a quarterly cash dividend to shareholders of $0.07 per common share.  The cash dividend is payable on December 1, 2015 to shareholders of record on November 17, 2015. 

About Algoma Central Corporation

Algoma Central Corporation operates the largest Canadian flag fleet of dry and liquid bulk carriers operating on the Great Lakes - St. Lawrence Waterway, including 18 self-unloading dry-bulk carriers, seven gearless dry bulk carriers and seven product tankers. Algoma also has interests in ocean dry-bulk and product tanker vessels operating in international markets. Algoma provides ship management services for other ship owners and owns a diversified ship repair and steel fabricating facility active in the Great Lakes and St. Lawrence regions of Canada. In addition, Algoma owns and manages commercial real estate properties in Sault Ste. Marie, St. Catharines and Waterloo, Ontario.

Cautionary Statements

This press release may include forward-looking information within the meaning of applicable securities laws including information concerning the business and future results of Algoma. Forward-looking statements in this press release include statements about the purchase of vessels by Algoma. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by this information. The statements in this press release are made as of the date of this release and are based on current expectations. Algoma undertakes no obligation to update forward-looking information, other than as required by law, or to comment on analyses, expectations, or statements made by third-parties in respect of Algoma, its financial or operating results or its securities. Algoma cautions that all forward-looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward-looking information, and that actual future results could be affected by a number of factors, many of which are beyond Algoma's control, including economic circumstances, technological changes, weather conditions and the material risks and uncertainties identified by Algoma and discussed on pages 12 to 16 of Algoma's Annual Information Form for the year ended December 31, 2014, which is available on SEDAR at www.sedar.com.

SOURCE Algoma Central Corporation

For further information: Ken Bloch Soerensen, President and CEO, 905-687-7885; Peter D. Winkley, CPA, CA, Vice President, Finance and CFO, 905-687-7897

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