TransForce Inc. Announces First Quarter Results



    
    - $452.4 million in revenues
    - EBITDA of $44.5 million
    - EPS of $0.04 per share
    

    MONTREAL, April 24 /CNW Telbec/ - TransForce Inc. ("TransForce" or "the
Company") (TSX: TFI - T), the leader in the Canadian transportation and
logistics industry, today announced its results for the first quarter, ended
March 31, 2009.
    "While our revenues decreased, we have always been focused on efficiency
and this has helped to maintain margins near historical levels. We have taken
action to further reduce equipment and staffing costs in the face of an
economic downturn that was deeper and more sudden than expected. The slowdown
affected three of TransForce segments in the first quarter, but Package and
Courier performed well, holding revenues even with a year earlier," said Alain
Bédard, President and Chief Executive Officer of TransForce Inc. "We are
managing through this period and are working to remain as profitable as
possible and to position our businesses to participate fully in the inevitable
recovery."

    First Quarter Results

    For the three months ended March 31, 2009 revenues were $452.4 million
compared with $526.3 million in the same period of 2008, a decrease of 14%.
Revenues excluding fuel surcharges were $422.2 million compared with $469.5
million in the same period of 2008, a decrease of 10%.
    EBITDA (earnings before interest, taxes, depreciation and amortization
and equivalent to operating income on TransForce's financial statements) was
$44.5 million in the quarter, compared with $56.9 million in the first quarter
of 2008, when a favourable class-action settlement increased EBITDA by $4.5
million. Excluding the one-time $4.5 million increase in the first quarter of
2008, first quarter 2009 EBITDA decreased by 15%. Year over year EBITDA margin
remained steady.
    Cash flow from operations, before net changes to non-cash working capital
balances related to operations, was $33.0 million compared with $45.7 million
in the first quarter of 2008.
    TransForce's earnings before income taxes were $4.3 million compared with
$17.4 million in the first quarter of 2008.
    Earnings per share were $0.04 per share compared with $0.22 per share in
the same period of 2008.
    During the quarter, TransForce paid out a dividend of $0.10 per share.
    "Our immediate focus continues to be operating efficiency, increasing
productivity, and adjusting to demand, .Although year-over-year revenues have
declined, we have lowered costs in the past several quarters and I expect that
we will see further results from these efforts as 2009 progresses," said Mr.
Bédard. "Debt reduction is a priority, but we will continue to monitor the
marketplace for opportunities to make smaller, tuck-in acquisitions as part of
our longer-term strategy."

    Annual and Special Meeting of Shareholders

    TransForce reminds investors that it will host its Annual and Special
Meeting of Shareholders later today, Friday, April 24, 2009.
    TransForce invites shareholders, analysts and portfolio managers to
attend. At the meeting, Alain Bédard, Chairman, President and Chief Executive
Officer of TransForce will discuss the 2008 results and the outlook for 2009.

    
        Details of Annual and Special Meeting of Shareholders:

        Date: Friday, April 24, 2009
        Time: 1:30 pm. ET
        Location: TSX Gallery, 130 King Street West, Toronto, ON
    

    First Quarter Management Conference Call

    TransForce will host a conference call for investors to discuss the
results of the first quarter of 2009 on Monday, April 27, 2009, at 9:00
Eastern Time. Participating from the Company will be Alain Bédard, Chairman,
President and Chief Executive Officer, and Salvatore Vitale, Chief Financial
Officer.
    To participate in the conference call, investors are invited to call
1-800-954-1053. A recording of the call will be available until 12:00 a.m.,
May 4, 2009, by dialing 1-800-558-5253 or 416-626-4100 and entering passcode
21422220.

    Financial Statements

    The financial statements for the periods ended March 31, 2009 and 2008
included below are an integral part of this news release.

    Profile

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

    
    - Less-Than-Truckload;
    - Package and Courier;
    - Specialized Services, which includes its ancillary transportation
      services such as logistics, warehousing & dedicated services, fleet
      management & personnel services; oilfield & oilsand services, and;
      waste management;
    - Truckload, which includes specialized truckload services.
    

    TransForce Inc. shares are listed on the Toronto Stock Exchange under the
symbol TFI.

    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 Company's website
www.transforce.ca.

    
    CONSOLIDATED STATEMENTS OF INCOME             Three months  Three months
    (unaudited)                                          ended         ended
    (In thousands of dollars, except                  March 31,     March 31,
     per unit amounts)                                    2009          2008

    Revenues                                           422,249       469,510
    Fuel surcharge revenues                             30,131        56,748
    -------------------------------------------------------------------------
    Total revenues                                     452,380       526,258

    Expenses
    Operating expenses                                 322,553       386,687
    Fixed costs, general and administrative
     expenses                                           85,320        81,245
    Incentive plan expense                                   -         1,447
    -------------------------------------------------------------------------
    Operating income before the following:              44,507        56,879
      Depreciation of fixed assets                      26,554        25,053
      Amortization of intangible assets                  4,368         4,021
      Interest on long-term debt                         9,888        11,440
      Unrealized gain on interest rate swap
       contracts                                          (295)            -
      Gain on disposal of fixed assets                    (271)       (1,051)
    -------------------------------------------------------------------------
    Income before provision for income taxes             4,263        17,416
    Provision for income taxes
    Current                                              2,076         1,810
    Future                                                (924)       (3,488)
    -------------------------------------------------------------------------
                                                         1,152        (1,678)

    -------------------------------------------------------------------------
    Net income                                           3,111        19,094

    Earnings per share
      Basic                                               0.04          0.22
      Diluted                                             0.04          0.22
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Outstanding weighted average number of
      Shares                                        86,790,097             -
      Units                                                  -    72,178,418
      Tracking shares                                        -    13,765,716
    -------------------------------------------------------------------------
      Total                                         86,790,097    85,944,134

    Shares outstanding
    Number of Shares                                86,790,097             -
    Number of Trust units of the Fund                        -    73,024,381
    Number of Tracking shares                                -    13,765,716
    -------------------------------------------------------------------------
    Total                                           86,790,097    86,790,097


    CONSOLIDATED BALANCE SHEETS                          As at         As at
    (in thousands of dollars)                         March 31,  December 31,
                                                          2009          2008
                                                    (unaudited)     (audited)
    ASSETS
    Current assets
    Accounts receivable                                267,341       302,801
    Inventories                                         10,656        11,296
    Prepaid expenses                                    20,554        14,285
    Income tax receivable                                1,872           519
    Future income taxes                                  1,473         1,666
    -------------------------------------------------------------------------
                                                       301,896       330,567
    -------------------------------------------------------------------------
    Fixed assets                                       704,984       718,713
    Goodwill                                           438,602       435,851
    Intangible assets                                  125,099       128,672
    Other assets                                         6,154         6,258
    Future income taxes                                    915         1,846
    -------------------------------------------------------------------------
                                                     1,577,650     1,621,907
    -------------------------------------------------------------------------
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities
    Bank indebtedness                                   12,959        12,517
    Accounts payable and accrued liabilities           209,203       218,763
    Dividends payable on Tracking Share Units
     of TFI Holdings Inc.                                  571           571
    Dividends payable                                    8,679         8,679
    Current portion of long-term debt                   64,122        69,028
    -------------------------------------------------------------------------
                                                       295,534       309,558
    -------------------------------------------------------------------------
    Long-term debt                                     713,723       738,986
    Asset retirement obligations                        10,490         8,204
    Future income taxes                                 53,621        55,309

    Shareholders' equity
    Share capital                                      519,404             -
    Capital contributions and Tracking
     Share Units                                             -       519,404
    Deficit                                            (15,122)       (9,554)
    -------------------------------------------------------------------------
                                                       504,282       509,850
    -------------------------------------------------------------------------
                                                     1,577,650     1,621,907
    -------------------------------------------------------------------------


    CONSOLIDATED STATEMENTS OF RETAINED
     EARNINGS (DEFICIT)                           Three months  Three months
    (unaudited)                                          ended         ended
    (in thousands of dollars)                         March 31,     March 31,
                                                          2009          2008

    Retained earnings (Deficit), beginning of period    (9,554)      (15,146)
    Net income for the period                            3,111        19,094
    Distributions to unitholders                             -       (29,027)
    Dividends on Tracking Share Units of
     TFI Holdings Inc.                                       -        (3,721)
    Dividends                                           (8,679)            -
    Incentive plan contribution                              -          (445)
    -------------------------------------------------------------------------
    Retained earnings (Deficit), end of period         (15,122)      (29,245)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CONSOLIDATED STATEMENTS OF CASH FLOWS         Three months  Three months
    (unaudited)                                          ended         ended
    (in thousands of dollars)                         March 31,     March 31,
                                                          2009          2008

    CASH FLOW FROM OPERATING ACTIVITIES
    Net income for the period                            3,111        19,094
    Non-cash items:
      Depreciation of fixed assets                      26,554        25,053
      Amortization of intangible assets                  4,368         4,021
      Incentive plan expense                                 -         1,447
      Deferred financing charges                           390           234
      Future income taxes                                 (924)       (3,488)
      Unrealized gain on interest rate
       swap contracts                                     (295)            -
      Gain on disposal of fixed assets                    (271)       (1,051)
      Other                                                112           439
    -------------------------------------------------------------------------
                                                        33,045        45,749
      Net change in non-cash working capital
       balances related to operations                   20,452       (36,256)
    -------------------------------------------------------------------------
                                                        53,497         9,493
    -------------------------------------------------------------------------

    CASH FLOW FROM FINANCING ACTIVITIES
    Increase in bank advances and overdraft                442         6,106
    Repayment of long-term debt                        (13,061)      (25,346)
    Increase (decrease) in long term
     revolver facility                                 (18,794)       91,849
    Cash distributions paid to unitholders                   -       (29,027)
    Dividends paid                                      (8,679)            -
    Dividends paid on Tracking Share Units                   -        (4,403)
    -------------------------------------------------------------------------
                                                       (40,092)       39,179
    -------------------------------------------------------------------------

    CASH FLOW FROM INVESTING ACTIVITIES
    Additions to fixed assets                          (11,255)      (13,130)
    Proceeds from disposal of fixed assets               3,487         7,480
    Business acquisitions (including bank
     advances net of cash)                              (5,741)      (43,149)
    Other assets, net                                      104           127
    -------------------------------------------------------------------------
                                                       (13,405)      (48,672)
    -------------------------------------------------------------------------

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

    Supplemental cash flow information:
      Cash paid during the period for:
      Interest                                           9,468        11,444
      Income taxes                                       3,428         4,022
    -------------------------------------------------------------------------
    
    %SEDAR: 00026947EF




For further information:

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

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