TransForce Announces Steady First Quarter Growth



    
    - Increased quarterly revenues by 7% to $464.8 million
    - Increased EBITDA by 7% to $52.7 million
    - Generated $45 million in cash flow from operating activities, an
      increase of 10% from the same period in 2006
    - Completed previously announced acquisition of Westfreight Systems Inc.
      and Westfreight Holdings (U.S.A.) Inc.
    

    MONTREAL, April 24 /CNW Telbec/ - TransForce Income Fund (TSX: TIF.UN),
the leader in the Canadian transportation and logistics industry, today
announced continued growth in its financial results for the first quarter
ended March 31, 2007.
    The Fund increased quarterly revenues by 7% to $464.8 million compared
with $433.8 million in the same period a year earlier. EBITDA (earnings before
interest, taxes, depreciation and amortization and equivalent to operating
income on TransForce's financial statements) was $52.7 million for the
quarter, an increase of 7% from the $49.1 million reported for the first
quarter of fiscal 2006.
    Cash flow from operating activities, before net change in non-cash
working capital balances, was $45 million in the first quarter, compared with
$41 million in the first quarter of 2006.
    Although the Fund's sustaining capital expenditures for 2007 overall are
expected to be similar to 2006, they are more heavily weighted towards the
first two quarters. In the first quarter of 2007, net capital expenditures
were $13.1 million, compared with $4.6 million a year earlier. As a result,
total distributable cash was $31.1 million compared with $33.2 million a year
ago.
    TransForce increased its regular monthly distributions during the first
quarter to $0.1325 per unit.
    The Fund's normal distribution payout ratio, or cash distributed as a
percent of cash available for distribution, was 102.2% for the first quarter
of 2007, compared with 87.8% for the same period last year.
    "The first quarter is traditionally slower than the balance of the year
and I am pleased that we were able to improve our year-over-year results in
key areas in the latest quarter," said Alain Bédard Chairman, President and
CEO of TransForce Income Fund. We were pleased to be able to increase our
distributions in the quarter and remain confident that the capital investments
we are making now will generate further increased value for our unitholders in
the future."
    During the first quarter of 2007, TransForce completed the previously
announced acquisition of Westfreight Systems Inc. and Westfreight Holdings
(U.S.A.) Inc.
    Westfreight specializes in over-dimensional and heavy haul transportation
services as well as being a less-than-truckload and truckload van and flatbed
service provider. With a focus on serving the oil and gas industry, its
primary service lanes are between Alberta and the Texas and Oklahoma regions.
Last year, the Company generated revenues of approximately $47 million.
    This acquisition strengthens TransForce's existing capabilities, offered
through UTL Transportation Services, in the heavy-haul and full-load segment
of the energy sector and complements the cross-border less-than-truckload
service provided to the energy sector by Canadian Freightways.

    Management Conference Call

    TransForce will host a conference call for investors to discuss the
results for the first quarter of 2007 on April 25 at 9:30 am Eastern Time.
Participating from the Fund will be Alain Bédard, Chairman, President and
Chief Executive Officer, and Salvatore Vitale Chief Financial Officer.
    To participate in the teleconference, investors are invited to call     
1-877-690-6763. A recording of the call will be available until midnight
May 2, 2007 by dialing 1-800-558-5253 or 416-626-4100 and entering passcode
21336826. Media are invited to participate in listen-only mode and to use the
media contact listed below for further information.

    Financial Statements

    The included financial statements for the quarters ended March 31, 2007
and 2006 and are an integral part of this news release.

    Profile

    TransForce Income Fund (www.transforce.ca) is the leader in Canada's
transportation and logistics industry. Headquartered in Montreal, Quebec, the
Fund's objective is to create value for unitholders through managing and
investing in a growing network of independent operating subsidiaries.
TransForce provides a comprehensive and unique combination of capabilities,
resources and geographical coverage in both domestic and trans-border markets.
Its companies operate in four well-defined business segments:

    
    - Less Than Truckload and Parcel Delivery;
    - Specialized Services which includes its ancillary transportation
      services business;
    - Specialized Truckload;
    - Truckload.

    TransForce's trust units (TIF.UN) are listed on the Toronto Stock Exchange
and are included in the S&P/TSX Composite Index.

    Forward-Looking Statements

    Except for historical information provided herein, this press release may
contain information and statements of a forward-looking nature concerning the
future performance of TransForce. These statements are based on suppositions
and uncertainties as well as on management's best possible evaluation of
future events. Such factors may include, without excluding other
considerations, fluctuations in quarterly results, evolution in customer
demand for TransForce's products and services, the impact of price pressures
exerted by competitors, and general market trends or economic changes. As a
result, readers are advised that actual results may differ from expected
results.
    For further details, please see the Financial Statements below. The
Financial Statements and Management's Discussion and Analysis can also be
found on Sedar at www.sedar.com and on the Fund's website www.transforce.ca.


    CONSOLIDATED STATEMENTS OF INCOME             Three months  Three months
    (unaudited)                                          ended         ended
    (In thousands of dollars, except per unit         March 31,     March 31,
     amounts)                                             2007          2006

    Revenues                                           426,997       395,186
    Fuel surcharge revenues                             37,761        38,566
    -------------------------------------------------------------------------
    Total revenues                                     464,758       433,752

    Expenses
    Operating expenses                                 332,821       313,966
    Fixed costs, general and administrative expenses    76,753        69,554
    Incentive plan                                       2,496         1,101
    -------------------------------------------------------------------------
    Operating income from continuing operations
     before the following:                              52,688        49,131
      Depreciation of fixed assets                      22,813        19,623
      Amortization of intangible assets                  2,618         1,551
      Interest on long-term debt                         7,082         4,646
      Other interest                                         0         2,188
      Gain on disposal of fixed assets                    (568)       (1,067)
    -------------------------------------------------------------------------
    Income from continuing operations before
     provision for income taxes                         20,743        22,190
    Provision for income taxes
    Current                                              2,520         1,618
    Future                                              (2,640)       (1,252)
    -------------------------------------------------------------------------
                                                          (120)          366

    -------------------------------------------------------------------------
    Net income from continuing operations               20,863        21,824
    Earnings from discontinued operations                    0           253
    -------------------------------------------------------------------------
    Net income                                          20,863        22,077

    Earnings per unit
    From continuing operations
      Basic                                               0.24          0.27
      Diluted                                             0.24          0.27
    Net earnings
      Basic                                               0.24          0.27
      Diluted                                             0.24          0.27
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Outstanding weighted average number of
      Units                                         72,328,760    66,766,890
      Tracking shares                               13,766,316    13,795,716
    -------------------------------------------------------------------------
      Total                                         86,095,076    80,562,606

    Units outstanding
    Number of Trust units of the Fund               73,023,781    73,020,781
    Number of Tracking shares                       13,766,316    13,769,316
    -------------------------------------------------------------------------
    Total                                           86,790,097    86,790,097


    CONSOLIDATED BALANCE SHEETS                          As at         As at
    (in thousands of dollars)                         March 31,  December 31,
                                                          2007          2006
                                                    (unaudited)     (audited)

    ASSETS
    Current assets
    Accounts receivable                                297,736       270,683
    Inventories                                         10,092         9,623
    Prepaid expenses                                    20,705        14,998
    -------------------------------------------------------------------------
                                                       328,533       295,304
    -------------------------------------------------------------------------
    Fixed assets                                       579,902       533,054
    Goodwill                                           342,935       320,716
    Intangible assets                                   57,748        52,642
    Other assets                                         8,083         8,688
    Future income taxes                                  5,345         5,315
    -------------------------------------------------------------------------
                                                     1,322,546     1,215,719
    -------------------------------------------------------------------------
    LIABILITIES AND UNITHOLDERS' EQUITY
    Current liabilities
    Bank indebtedness                                   20,674        20,223
    Accounts payable and accrued liabilities           204,942       177,846
    Cash distributions payable to unitholders            9,675         9,310
    Dividends payable on Tracking Share Units of
     TFI Holdings Inc.                                   1,387         2,134
    Income taxes payable                                 2,273         4,765
    Current portion of long-term debt                   39,761        35,758
    -------------------------------------------------------------------------
                                                       278,712       250,036
    -------------------------------------------------------------------------
    Long-term debt                                     445,481       358,624
    Non-controlling interest                             2,036         2,002
    Asset retirement obligations                         3,679         3,660
    Future income taxes                                 22,540        22,147

    Unitholders' equity
    Capital contributions and Tracking Share Units     519,404       519,404
    Contributed surplus                                    622           336
    Units held by the fund for long-term incentive
     plan                                               (9,605)      (11,136)
    Retained earnings                                   59,677        70,646
    -------------------------------------------------------------------------
                                                       570,098       579,250
    -------------------------------------------------------------------------
                                                     1,322,546     1,215,719
    -------------------------------------------------------------------------


    CONSOLIDATED STATEMENTS OF RETAINED           Three months  Three months
     EARNINGS                                            ended         ended
    (unaudited)                                       March 31,     March 31,
    (in thousands of dollars)                             2007          2006

    Retained earnings, beginning of period              70,646        57,963
    Net income for the period                           20,863        22,077
    Distributions to unitholders                       (28,297)      (25,356)
    Dividends on Tracking Share Units of
     TFI Holdings Inc.                                  (3,535)       (3,344)
    -------------------------------------------------------------------------
    Retained earnings, end of period                    59,677        51,340
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CONSOLIDATED STATEMENTS OF CASH FLOWS         Three months  Three months
    (unaudited)                                          ended         ended
    (in thousands of dollars)                         March 31,     March 31,
                                                          2007          2006

    CASH FLOW FROM OPERATING ACTIVITIES
    Net income for the period                           20,863        22,077
    Non-cash items:
      Depreciation of fixed assets                      22,813        20,278
      Amortization of intangible assets                  2,618         1,551
      Incentive plan expense                             2,496         1,101
      Purchase of units held by the fund for the
       Incentive plan                                     (679)       (1,938)
      Deferred financing charges                           150             -
      Future income taxes                               (2,640)       (1,132)
      (Gain) Loss on disposal of fixed assets             (568)       (1,067)
      Other                                                 80           178
    -------------------------------------------------------------------------
                                                        45,133        41,048

      Net change in non-cash working capital balances
       related to operations                           (10,200)       (4,478)
    -------------------------------------------------------------------------
                                                        34,933        36,570
    -------------------------------------------------------------------------

    CASH FLOW FROM FINANCING ACTIVITIES
    Increase in (repayment of) bank advances and
     overdraft                                             451        30,636
    Increase in long-term debt                             556             0
    Repayment of long-term debt                         (8,803)      (34,392)
    Increase (decrease) in new long term revolver
     facility                                           90,500             0
    Cash distributions paid to unitholders             (27,932)      (28,893)
    Dividends paid on Tracking Share Units              (4,282)       (4,627)
    Issuance of trust units                                  0       143,760
    -------------------------------------------------------------------------
                                                        50,490       106,484
    -------------------------------------------------------------------------

    CASH FLOW FROM INVESTING ACTIVITIES
    Additions to fixed assets                          (60,075)      (11,444)
    Proceeds from disposal of fixed assets               4,924         5,960
    Business acquisitions (including bank advances
     net of cash)                                      (30,926)     (138,481)
    Other assets, net                                      654           911
    -------------------------------------------------------------------------
                                                       (85,423)     (143,054)
    -------------------------------------------------------------------------

    Net change in cash and cash equivalent during
     the period                                              0             0
    Cash and cash equivalent, beginning of the period        0             0
    -------------------------------------------------------------------------
    Cash and cash equivalent, end of the period              0             0
    -------------------------------------------------------------------------

    Supplemental cash flow information:
      Cash paid during the period for:
      Interest                                           7,055         6,535
      Income taxes                                       3,392         1,846
    -------------------------------------------------------------------------


    Distributable cash
    (in thousands of dollars, except per unit amounts)

                                                  Three months  Three months
                                                         ended         ended
                                                   December 31,  December 31,
                                                          2006          2005

    OPERATING ACTIVITIES
    Cash flow from operating activities                 34,933        36,570
    Add (deduct):
      Purchase of units held by the fund for
       long-term incentive plan                            679         1,938
      Deferred financing charges                          (150)            -
      Net change in non-cash working capital            10,200         4,478
      Other                                                (80)         (178)
    -------------------------------------------------------------------------
    Distributable cash from operating activities        45,582        42,808
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
    Sustaining capital expenditures (note 1)           (17,993)      (10,581)
    Proceeds from disposal of fixed assets               4,924         5,960
    -------------------------------------------------------------------------
    Distributable cash from investing activities       (13,069)       (4,621)
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
    Scheduled debt repayment (note 2)                   (1,451)       (4,961)
    -------------------------------------------------------------------------
    Distributable cash from financing activities        (1,451)       (4,961)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Total distributable cash                            31,062        33,226

    Total distribution declared (note 3)
    Distribution declared to Tracking shareholders       3,267         3,091
    Distribution declared to Unitholders                28,297        25,356
    -------------------------------------------------------------------------
    Total distribution declared                         31,564        28,447
    -------------------------------------------------------------------------
    Distributable cash surplus                            (502)        4,779
    -------------------------------------------------------------------------

    Total distribution declared per unit
    Distribution declared to Tracking shareholders      0.2373        0.2242
    Distribution declared to Unitholders                0.3875        0.3675
    -------------------------------------------------------------------------

    Distributable cash earned per unit
    Tracking shareholders                               0.2478        0.2761
    Unitholders                                         0.3792        0.4184
    -------------------------------------------------------------------------

    Payout ratio - regular distribution                  102.2%         87.8%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Note 1: Sustaining capex

      On July 1, 2005, the Fund concluded the sale of its Calgary terminal.
      The Fund will relocate this terminal to a new facility in Calgary.
      As part of this relocation, the Fund has invested $3,6 million for the
      period ended March 31, 2007 in the new Calgary facility ($0,5 million -
      2006).
      This investment has been excluded from distributable cash.
      Also the Fund invested $38,5 million as part of a lease buyout for two
      terminals. ($0,4 million - 2006)
      This has also been excluded from distributable cash.

    Note 2: Scheduled debt repayment excludes:

      1) Debt payments made on debt acquired as part of business
      acquisitions.
      This totals $7,4 million for the period ended March 31, 2007
      ($29,4 million - 2006),
      2) Term loan due on September 30, 2013 of $160 million, the revolving
      term loan due on September 30, 2010 of $212 million and single payment
      due on July 15, 2009 of $27.9 million to CIT Financial Ltd for its
      5 year term loan

      The total scheduled debt payable as at March 31, 2007 totals
      $27,5 million ($71,2 million - 2006)

    Note 3: Tracking shareholders dividend

      Dividend declared to Tracking shareholders net of income taxes excludes
      a holdback portion which is due and payable to Tracking shareholders no
      later than March 31 of the following fiscal year in which the dividend
      was declared.
    
    %SEDAR: 00018303EF




For further information:

For further information: Investors: Alain Bédard, Chairman, President
and CEO, TransForce Income Fund, (514) 331-4200; Media: John Lute, Lute &
Company, (416) 929-5883, jlute@luteco.com

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TRANSFORCE INCOME FUND

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