Algoma Central Corporation Announces Operating Results for the Three and Six Months Ended June 30, 2016

(TSX : ALC)

ST. CATHARINES, ON, Aug. 5, 2016 /CNW/ - Algoma Central Corporation ("Algoma" – www.algonet.com) today announced results for the three and six months ended June 30, 2016.

The Company is reporting 2016 second quarter revenues of $96,202 compared to $125,336 for the same period in 2015  The decrease in revenue occurred mainly in  Domestic Dry-Bulk and was due to reduced customer demand in all major commodities and the impact of fuel costs that are passed on directly to customers as part of the freight rate. Revenues in the Product Tanker segment decreased due primarily to diminished volumes on the East Coast and lower fuel prices. Partially offsetting these decreases was an improvement in the Ocean Shipping segment revenue due to more revenue days resulting from the addition of two vessels to the fleet in early January.

Revenues for the six months ended June 30, 2016 of $136,679 were $32,566 lower than revenues for the same period in the prior year. Domestic Dry-Bulk revenues decreased by $38,592, Product Tanker segment experienced a decrease of $13,602 and the Ocean Shipping segment had an increase of $19,628.

Segment operating earnings after income taxes for the 2015 second quarter includes a gain on cancelled shipbuilding contracts in the amount of $10,212. Excluding this item from the segment results, the earnings for the second quarter of 2015 would have been $12,748. Despite the significant drop in revenues, earnings for the 2016 second quarter of $12,069 were only $679 lower than last year. Improvements in earnings were realized in the Domestic Dry-Bulk, Ocean Shipping and the Global Short Sea Shipping segments. The Product Tanker segment had a decrease in segment earnings.  

The segment operating earnings after income taxes for both the 2016 and 2015 six - month periods include gains on shipbuilding contracts in the amount of $16,196 and $10,212, respectively. Excluding these items from the segment results, the loss for the six- months ended 2016 would have been $12,639 which compares to a loss for the 2015 six-month period of $11,609.

Net earnings and basic earnings per share from continuing operations for the 2016 second quarter were $11,981 and $0.31, respectively, compared to $22,379 and $0.58, respectively, for the same period last year. Net earnings and basic earnings per share from continuing operations for the 2016 six-months were $4,022 and $0.10, respectively, compared to a loss of $1,397 and $0.04 for 2015.


 Three Months 

 Six Months 


 Ended June 30

 Ended June 30

Revenues

2016

2015

2016

2015






Domestic Dry-Bulk

$

64,112

$

95,440

$

75,771

$

114,363

Product Tankers

16,041

19,513

24,556

38,158

Ocean Shipping

16,049

10,383

36,352

16,724







$

96,202

$

125,336

$

136,679

$

169,245







 Three Months

 Six Months


Ended June 30

Ended June 30

Net Earnings (Loss) from Continuing Operations

2016

2015

2016

2015






Operating (loss) earnings net of income tax










Domestic Dry-Bulk

$

7,984

$

6,071

$

(19,731)

$

(18,021)

Gain on shipbuilding contracts

-

10,212

16,196

10,212


7,984

16,283

(3,535)

(7,809)

Product Tankers

1,636

3,246

128

6,965

Ocean Shipping

3,762

6,077

11,030

7,297

Global Short Sea Shipping

902

1,392

Corporate

(2,215)

(2,646)

(5,458)

(5,277)







12,069

22,960

3,557

1,176

Not specifically identifiable to segments





Net (loss) gain on foreign currency translation

2,468

1,707

2,443

2,039

Interest expense

(3,023)

(2,597)

(5,959)

(5,226)

Interest income

434

310

921

744

Income tax recovery

33

(1)

3,060

(130)







$

11,981

$

22,379

$

4,022

$

(1,397)

 

About Algoma Central Corporation

Algoma Central Corporation operates the largest Canadian flag fleet of dry and liquid bulk carriers on the Great Lakes - St. Lawrence Waterway, including 13 self-unloading dry-bulk carriers, six gearless dry bulk carriers and six product tankers. The Company has announced contracts for seven new Equinox Class domestic dry-bulk vessels as part of its on-going fleet renewal program. Algoma also owns four ocean dry-bulk vessels operating in international markets and has a 50% in two other ocean dry-bulk vessels. 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 2016, Algoma announced a new strategic initiative to grow into attractive global niche markets, beginning with a fifty percent interest in a pneumatic cement carrier business.

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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