Trimac Announces First Quarter Results



    CALGARY, May 15 /CNW/ - Trimac Income Fund (TSX Symbol TMA.UN) (the
"Fund") today released the financial results of the Fund and Trimac
Transportation Services Limited Partnership ("Trimac" or the "Partnership")
for the first quarter ended March 31, 2009.

    
                                                             Three months
    Partnership                                             ended March 31
    (millions of dollars)                                  2009         2008
                                                    -------------------------

    Revenues                                               64.1         76.8
    EBITDA(1)                                               5.5          7.0
    Net (loss) earnings                                    (0.7)         0.6

                                                             Three months
                                                            ended March 31
    Fund                                                   2009         2008
                                                    -------------------------

    Distributable cash per unit(1)(2)                   $0.1106      $0.1127
    Distributions per unit(1)                           $0.1200      $0.2313
    Basic (loss) earnings per unit                     $(0.0050)     $0.0382
    Fully diluted (loss) earnings per unit             $(0.0449)     $0.0200
    Weighted average number of units outstanding
     used in computing basic (loss) earnings per
     unit                                            12,584,679   12,551,319

    Number of units outstanding used in computing
     diluted (loss) earnings per unit                25,304,697   24,107,340

    (1) EBITDA, distributable cash per unit and distributions per unit are
        not recognized measures under generally accepted accounting
        principles (GAAP) and do not have a standardized meaning prescribed
        by GAAP. Therefore, these amounts may not be comparable to similar
        measures presented by other issuers. Management considers EBITDA and
        distributable cash to be key measures that indicate the ability of
        the Fund to meet its capital and financing commitments.
    (2) Distributable cash available will fluctuate on a monthly basis due to
        seasonal cash flows, sustaining capital incurred, income taxes, and
        interest paid. See "Distributable Cash" for additional commentary.
    

    Trimac's revenue in the three-month period ended March 31, 2009 ("current
period") decreased by $12.7 million or 16.5 percent from the three-month
period ended March 31, 2008 ("prior period"). Contributing to this decrease
was a $5.5 million reduction in revenue from fuel surcharges. As previously
reported by Trimac, the impact of changes in fuel prices on profitability has
generally been neutral. In addition, revenue was affected by competitive
pressures and reduced levels of activity in the construction, drilling,
mining, automotive, and forestry industries. EBITDA decreased by $1.5 million
or 21.4 percent from the prior period. Expressed as a percent of revenue,
EBITDA was 8.6 percent in the current period suffering only a moderate decline
from the 9.1 percent recorded in the prior period as various cost reduction
programs were implemented to mitigate lower volumes.
    Divisional highlights in the first quarter were as follows:

    
    -   Western division revenue declined by $7.7 million or 16.8 percent and
        EBITDA decreased by $1.3 million or 25.0 percent over the prior
        period.

    -   Eastern division revenue decreased by $4.2 million or 15.5 percent
        and EBITDA declined by $0.3 million or 25.0 percent over the prior
        period.

    -   Bulk Plus Logistics experienced improved profitability as EBITDA
        increased by $0.6 million on lower revenue than the prior period.
        This increase was primarily due to the non-recurrence of one time
        costs in the prior period.
    

    In commenting on the results for the first quarter, Jeffrey J. McCaig,
Chairman and CEO of Trimac, said:
    "Despite the challenging operating environment in Canada, Trimac was able
to maintain a relatively stable EBITDA margin when compared to the first
quarter of 2008 as a result of proactive cost management. Trimac's management
is continuing to implement cost controls and pursuing additional profitable
business in an attempt to mitigate the impact of the current recession."
    For comments regarding management's outlook for the remainder of 2009
please see Trimac's Management's Discussion and Analysis for the three-month
period ended March 31, 2009.

    Financial Highlights

    
                                                          Three months ended
                                                                March 31
                                                    -------------------------
    (millions of dollars)                                  2009         2008
    -------------------------------------------------------------------------

    Revenues                                               64.1         76.8

      Direct costs                                         48.0         58.3
      Selling and administrative                           10.6         11.5
                                                    -------------------------

    EBITDA(1)                                               5.5          7.0
      Depreciation net of gains on disposal of
       capital assets                                       5.0          5.1
                                                    -------------------------

    Operating earnings                                      0.5          1.9
      Interest expense (net)                                1.0          1.2
                                                    -------------------------

    (Loss) earnings before taxes                           (0.5)         0.7
      Income tax expense                                    0.2          0.1
                                                    -------------------------

    Net (loss) earnings                                    (0.7)         0.6
                                                    -------------------------
                                                    -------------------------

    As a percentage of revenue(2)
    ------------------------------------------------
      Direct costs                                        74.9%        75.9%
      Selling and administrative                          16.5%        15.0%
      EBITDA(1)                                            8.6%         9.1%
      Depreciation                                         7.8%         6.6%
      Operating earnings                                   0.8%         2.5%



                                                          As at        As at
                                                       March 31, December 31,
    (millions of dollars)                                  2009         2008
                                                    -------------------------
    Total assets                                          147.2        152.7
    Total long-term liabilities                            48.7         47.2

    (1) EBITDA (earnings before interest, taxes, depreciation and
        amortization) is not a recognized measure under GAAP, does not have a
        standardized meaning prescribed by GAAP and, therefore, may not be
        comparable to similar measures presented by other issuers. Management
        believes that EBITDA is a useful complementary measure of cash
        available for distribution before debt servicing expense, capital
        expenditures and income taxes.
    (2) Direct costs, selling and administrative and depreciation, expressed
        as a percentage of revenue, were impacted by significant fluctuations
        in fuel surcharge revenue between the prior and current period. For
        additional commentary regarding these expenses please see page 7 and
        8 of Trimac's Management's Discussion and Analysis for the
        three-month period ended March 31, 2009.



                             Distributable Cash

    The table below illustrates distributable cash to unitholders beginning
with net cash provided by the Partnership's operations.


                                                          Three months ended
                                                                March 31
    (millions of dollars except unit amounts,       -------------------------
     certain percentages and number of units)              2009         2008
    -------------------------------------------------------------------------

    Net cash provided by operations                         5.0          8.5
    Net change in non-cash working capital(1)              (0.7)        (2.9)
                                                    -------------------------
    Cash provided by operations                             4.3          5.6
    Less adjustments for:
      Net sustaining capital expenditures (net of
       proceeds)(2)(3)                                     (1.2)        (2.5)
      Provision for long-term unfunded
       contractual operational
       obligations(4)                                       0.1            -
                                                    -------------------------
    Total estimated cash available for
     distribution (before public
     expenses)                                              3.2          3.1
    Percentage of available cash distributable to
     unitholders(5)                                         50%          52%
                                                    -------------------------

    Cash available for distribution to
     unitholders (before public
     expenses)                                              1.6          1.6
    Public expenses(6)                                     (0.2)        (0.2)
                                                    -------------------------
    Distributable cash from operations(2)(7)                1.4          1.4
    Distributions declared and payable                      1.5          2.9

    Distributable cash per unit(2)(7)                    0.1106       0.1127
    Distributions declared per unit(9)                   0.1200       0.2313
    Payout ratio(2)(7)                                   108.5%       205.2%

    Weighted average number of units outstanding     12,584,679   12,551,319

    Net capital expenditures
      Sustaining capital expenditures(2)                    2.1          3.4
      Proceeds on disposal of replaced assets              (0.9)        (0.9)
                                                    -------------------------
      Net sustaining capital expenditures(2)(3)             1.2          2.5
      Growth capital expenditures(2)(8)                     0.7          2.5
                                                    -------------------------
                                                            1.9          5.0
                                                    -------------------------
                                                    -------------------------

    (1) Changes in non-cash operating assets and liabilities are not included
        in the calculation of distributable cash. Working capital investments
        are funded through a combination of cash flow not distributed and the
        use of credit facilities available to the Partnership.
    (2) Distributable cash from operations, sustaining capital expenditures,
        net sustaining capital expenditures, payout ratio, and growth capital
        expenditures are not measures recognized by GAAP, do not have
        standardized definitions prescribed by GAAP and may not be comparable
        to similarly named measures presented by other issuers.
    (3) Net sustaining capital expenditures refers to capital expenditures,
        net of proceeds on disposal of assets replaced, which are necessary
        to sustain current revenue levels. See "Capital Expenditures" on
        page 8 of this press release.
    (4) Represents a provision for cash requirements relating to a long-term
        incentive plan and an executive pension liability. During the current
        period, a partial reversal of $0.1 million previously provided for
        was recorded.
    (5) Percentage is equal to weighted average number of units outstanding
        of 12,584,679 divided by fully diluted units of 25,304,697.
    (6) Represents expenses associated with the Fund's status as a reporting
        issuer.
    (7) Distributable cash available will fluctuate on a monthly basis due to
        seasonal cash flows, sustaining capital expenditures incurred, income
        taxes paid and interest costs on outstanding debt.
    (8) Cash used to fund growth capital expenditures does not affect
        distributable cash to unitholders where financing is available for
        these purposes. The Partnership funds growth capital from
        undistributed cash from operations, cash available from distributions
        on non-cash exchangeable shares and, to the extent available,
        existing lines of credit.
    (9) Effective January 2009 the monthly distribution per unit was reduced
        from $0.0771 to $0.04.
    

    During the current period the Partnership's cash provided by operations
decreased by $1.3 million. This was offset by a reduction in net sustaining
capital expenditures of $1.3 million and a decrease in the provision for
unfunded long-term executive compensation plans of $0.1 million. The Fund's
distributable cash was $1.4 million in the current period, a similar amount to
that recorded in the prior period.
    Distributions in the current period were paid using cash generated from
operations including cash retained in the business relating to non-cash
exchangeable shares. Due to the seasonal nature of the Partnership's business
and the timing of sustaining capital purchases, the amount of distributable
cash may vary from quarter to quarter. Trimac's Board of Directors approves
the level of monthly distributions based upon estimated cash flow on an annual
basis, less estimated cash required for debt service, cash taxes, other
amounts (including sustaining capital expenditures, working capital and
provisions) to stabilize the monthly amount of distributions to unitholders.
Growth capital expenditures are funded from undistributed cash from
operations, cash available from notional distributions on non-cash
exchangeable shares, and, to the extent available, cash and existing lines of
credit.
    Distributable cash from operations is not a defined term under GAAP but
is determined by the Partnership as net cash provided by operations for the
period, adjusted to remove specific non-cash items, including changes in
working capital, and reduced by sustaining capital expenditures, provisions
for funding long- term liabilities, provisions for committed capital purchases
in progress and public costs.
    Management believes that distributable cash from operations is a useful
supplemental measure of performance as it provides investors with an
indication of the amount of cash available for distribution to unitholders.
Investors are cautioned, however, that distributable cash from operations
should not be construed as an alternative to using net income as a measure of
profitability or as an alternative to the statement of cash flows. In
addition, the Fund's method of calculating distributable cash from operations
may not be comparable to calculations used by other issuers.

    
                              Operating Results

    Revenue
    -------------------------------------------------------------------------
                         Three months ended March 31
    -------------------------------------------------------------------------
    (millions of
     dollars)        2009              2008       Gross Revenue   Net Revenue
    -------------------------------------------------------------------------
                          Tran-             Tran-
                          spor-             spor-
                     Fuel   ta-        Fuel   ta-
              Total  Sur-  tion Total  Sur-  tion
                Re- char-   Re-   Re- char-   Re-   Var-          Var-
              venue   ges venue venue   ges venue  iance      %  iance      %
    -------------------------------------------------------------------------

    Bulk
     trucking
    ----------

    Western
     division  38.0   3.0  35.0  45.7   6.6  39.1  (7.7) -16.8%  (4.1) -10.5%
    Eastern
     division  22.9   1.7  21.2  27.1   3.6  23.5  (4.2) -15.5%  (2.3)  -9.8%
    -------------------------------------------------------------------------

    Total bulk
     trucking  60.9   4.7  56.2  72.8  10.2  62.6 (11.9) -16.3%  (6.4) -10.2%
    -------------------------------------------------------------------------

    Bulk Plus
     Logistics  3.2     -   3.2   3.9     -   3.9  (0.7) -17.9%  (0.7) -17.9%
    -------------------------------------------------------------------------

    Other         -     -     -   0.1     -   0.1  (0.1)         (0.1)
    -------------------------------------------------------------------------

    Total
     revenue   64.1   4.7  59.4  76.8  10.2  66.6 (12.7) -16.5%  (7.2) -10.8%
    -------------------------------------------------------------------------
    

    For the current period, total revenue decreased by $12.7 million or 16.5
percent from the prior period. Fuel surcharges as a percentage of bulk
trucking revenue totalled approximately 7.7 percent in comparison to 14
percent in the prior period, resulting in a decrease of $5.5 million. Trimac
has fuel surcharge programs in place with substantially all of its customers
and the impact of changes in fuel prices on profitability has generally been
neutral. Revenue net of fuel surcharges decreased by $7.2 million or 10.8
percent from the prior period primarily as a result of business losses and
lower volumes with existing customers.
    The western division's revenue decreased by $7.7 million or 16.8 percent.
Fuel surcharge revenue was $3.6 million lower than the prior period. Revenue
net of fuel surcharges decreased by $4.1 million or 10.5 percent compared to
the prior period. Incremental revenue of $1.4 million from the December 5,
2008 acquisition of Canamera Carriers Inc. (Canamera) and increased revenue in
the edible product line was offset by net business losses and reduced volumes
with existing customers. This reduction in volumes was primarily in response
to a slowdown in the construction, oilfield drilling, mining, and forestry
industries.
    The eastern division's revenue decreased by $4.2 million or 15.5 percent.
Fuel surcharge revenue was $1.9 million lower than the prior period. Revenue
net of fuel surcharges decreased by $2.3 million or 9.8 percent compared to
the prior period. Increased revenue from the industrial gas product line was
offset by net business losses and decreased volumes with existing customers.
These decreased volumes were primarily the result of continued economic
weakness in central Canada, predominantly in the construction, chemical, and
automotive industries.
    For the current period, Bulk Plus Logistics's (BPL) revenue decreased by
$0.7 million or 17.9 percent. This decrease was primarily due to the exiting
of a transload management contract in May 2008 and decreased freight brokerage
volumes in Canada and the U.S. These decreases were mitigated by a $0.2
million increase in third-party logistics management revenue.

    
    EBITDA - Current period
    -------------------------------------------------------------------------
                         Three months ended March 31
    -------------------------------------------------------------------------
    (millions of                                                      % Rev.
     dollars)             2009  % Rev.   2008  % Rev. Variance    %   change
    -------------------------------------------------------------------------
    Bulk trucking
    -------------------
    Western division       3.9   10.3%    5.2   11.4%    (1.3) -25.0%   -1.1%
    Eastern division       0.9    3.9%    1.2    4.4%    (0.3) -25.0%   -0.5%
    -------------------------------------------------------------------------
    Total bulk trucking    4.8    7.9%    6.4    8.8%    (1.6) -25.0%   -0.9%
    -------------------------------------------------------------------------
    Bulk Plus Logistics    0.8   25.0%    0.2    5.1%     0.6  300.0%   19.9%
    -------------------------------------------------------------------------
    Other                 (0.1)           0.4            (0.5)
    -------------------------------------------------------------------------
    Total EBITDA           5.5    8.6%    7.0    9.1%    (1.5) -21.4%   -0.5%
    -------------------------------------------------------------------------
    

    EBITDA for the current period totaled $5.5 million, a $1.5 million or
21.4 percent decrease from the prior period. The western division experienced
a $1.3 million or 25 percent decrease in the current period, while the eastern
division experienced a $0.3 million or 25 percent decrease. These decreases
were primarily the result of lower revenue and increased accident claims which
were mitigated by lower direct costs, primarily due to various cost reduction
programs implemented to reflect lower volumes. BPL's EBITDA was $0.6 million
higher than in the prior period as lower revenue was offset by improved
profitability. Improved profitability resulted from one time costs in the
prior period and a shift in product mix from lower margin revenue to higher
margin third-party logistics revenue.

    Capital Expenditures

    
                                                          Three months ended
                                                                March 31
                                                    -------------------------
    (millions of dollars)                                  2009         2008
    -------------------------------------------------------------------------
    Gross sustaining capital expenditures                   2.1          3.4
    Less: proceeds on disposal of capital assets           (0.9)        (0.9)
                                                    -------------------------
    Net sustaining capital expenditures                     1.2          2.5
    Growth capital expenditures                             0.7          2.5
                                                    -------------------------
    Net capital expenditures                                1.9          5.0
                                                    -------------------------
                                                    -------------------------
    

    The Partnership's net capital expenditures, including growth and
sustaining capital, totalled $1.9 million in the current period compared to
$5.0 million in the prior period. The decrease of $3.1 million over the prior
period was due to decreased sustaining capital expenditures of $1.3 million
and reduced growth expenditures of $1.8 million.
    Gross sustaining capital purchases of $2.1 million were made up primarily
of replacement tractors and trailers, accounting for approximately 89 percent
of the total, with the balance applicable to other operating assets. Net
sustaining capital expenditures were $1.3 million lower than in the prior
period due to reduced trailer purchases. Proceeds on the disposal of capital
assets were similar to that recorded in the prior period.
    Reduced growth capital spending of $1.8 million was due to lower current
period tractor and trailer purchases and the completion of a transload
facility in the prior period. Growth capital expenditures of $0.7 million in
the current period consisted of tractor and trailer purchases of approximately
80% with the majority of the remainder being used for a transload facility
upgrade. Growth capital purchases are funded from undistributed cash from
operations, cash available from notional distributions on non-cash
exchangeable shares and, to the extent required, available cash and existing
lines of credit.
    Net annual capital expenditures relating to sustaining capital
requirements will vary from year to year based on: the economic life of the
capital assets; historical purchase dates; the mix of life cycles expiring in
a given year; other factors affecting equipment cost; disposal proceeds of
replaced assets; and, annual equipment utilization. Sustaining capital
purchases are funded from the Partnership's net cash provided by operations in
the year, cash available from notional distributions on non-cash exchangeable
shares and, thereafter, to the extent required, available credit facilities.
    You are invited to join management of the Partnership on a conference
call at 2:30 p.m. Eastern Time on Friday, May 15, 2009. North American
participants, please dial 1-888-300-0053; international participants, please
dial ++1 647-427-3420, at least 10 minutes prior to the indicated time.
    A playback of the call will be available from 5:30 p.m. Eastern Time on
Friday, May 15, 2009 until midnight May 22, 2009. To hear the playback, please
dial 1-888-562-2823 (international participants, please dial ++1 402-220-7738)
and when prompted please enter the conference ID number 98435332.

    
    Trimac Income Fund
    Consolidated Balance Sheet
    (unaudited)
    -------------------------------------------------------------------------
    (thousands of dollars)

                                                          As at        As at
                                                       March 31, December 31,
                                                           2009         2008
                                                              $            $
                                                    -------------------------
    Assets

    Current assets
    Cash                                                    125          970
    Interest receivable                                     241          241
    Distributions receivable                                337          719
    Prepaid expenses                                         73          105
                                                    -------------------------

                                                            776        2,035

    Investment in Trimac Transportation Services
     Limited Partnership                                 65,841       67,412
    Note receivable from Trimac Transportation
     Services Inc.                                       35,438       35,438
                                                    -------------------------

                                                        102,055      104,885
                                                    -------------------------
                                                    -------------------------
    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities                 43           74
    Due to associated companies and partnerships            178          967
    Distributions payable                                   503          970
                                                    -------------------------

                                                            724        2,011

    Deferred compensation plan                               56           50
                                                    -------------------------

                                                            780        2,061

    Unitholders' equity                                 101,275      102,824
                                                    -------------------------

                                                        102,055      104,885
                                                    -------------------------
                                                    -------------------------
    

    The Fund commenced business operations on February 25, 2005 and earnings
of the Fund's investment in Trimac have been accounted for using the equity
method of accounting since commencement. Under this method, the Fund's share
of earnings of Trimac, adjusted for the amortization of certain tangible and
intangible assets arising from the use of purchase accounting is reflected in
the statement of earnings of the Fund as "Share of earnings of Trimac
Transportation Services Limited Partnership". The results of operations of the
Fund are predominately dependent on the performance of the Partnership.

    
    Trimac Income Fund
    Consolidated Statement of Earnings, Comprehensive Income and Unitholders'
    Equity
    (unaudited)
    -------------------------------------------------------------------------
    (thousands of dollars, except for per unit amounts and number of units)

                                                   Three months Three months
                                                          ended        ended
                                                       March 31,    March 31,
                                                           2009         2008
                                                              $            $
                                                    -------------------------

    Share of loss of Trimac Transportation
     Services Limited Partnership(1)                       (562)         (28)
      Interest income                                       682          710
      Administrative costs                                 (183)        (202)
                                                    -------------------------

    Net (loss) earnings                                     (63)         480

    Other comprehensive income - share of
     Partnership other comprehensive income                  25           24
                                                    -------------------------

    Comprehensive (loss) income                             (38)         504

    Opening unitholders' equity                         102,824      108,079
    Issue of additional units                                 -          125
    Distributions declared                               (1,511)      (2,902)
                                                    -------------------------

    Closing unitholders' equity                         101,275      105,806
                                                    -------------------------
                                                    -------------------------

    Basic (loss) earnings per unit(2)                $  (0.0050)  $   0.0382

    Fully diluted (loss) earnings per unit (2)       $  (0.0449)  $   0.0200

    Weighted average number of units outstanding
     used in computing basic (loss) earnings per
     unit                                            12,584,679   12,551,319

    Number of units outstanding used in computing
     diluted (loss) earnings per unit                25,304,697   24,107,340

    (1) The net earnings of the Partnership are allocated between TTSI and
        the Fund based on the terms of the partnership agreement. The
        following is a reconciliation of net earnings recorded in the
        consolidated financial statements of the Partnership to the amount
        recorded by the Fund.



                                                          Three months ended
                                                                March 31,
                                                           2009         2008
                                                              $            $
                                                    -------------------------

    Net (loss) earnings of the partnership                 (683)         594

      Add: Interest expense on TTSI debt included in
       Partnership earnings                                 671        1,018
    -------------------------------------------------------------------------

    Adjusted Partnership (loss) earnings                    (12)       1,612

      Less: Purchase price allocation adjustments:

      Increase in amortization of capital assets and
       loss on disposal of capital assets                  (612)        (629)

      Amortization of intangible assets                  (1,010)      (1,011)
    -------------------------------------------------------------------------

    Partnership earnings after purchase price
     adjustments                                         (1,634)         (28)
    -------------------------------------------------------------------------

    Share of Partnership loss                              (562)         (28)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (2) Pursuant to an investor liquidity agreement, holders of TTSI
        Exchangeable Shares have the right to effectively liquidate their
        10,060,405 shares of TTSI and receive units in the Fund. Following
        the full exercise of such liquidation rights, the Fund would own
        100 percent of the Partnership. The number of units used in the
        calculation of diluted earnings per unit assumes full liquidation at
        the beginning of the period.



    Trimac Income Fund
    Consolidated Statement of Cash Flows
    (unaudited)
    -------------------------------------------------------------------------
    (thousands of dollars)

                                                   Three months Three months
                                                          ended        ended
                                                       March 31,    March 31,
                                                           2009         2008
                                                              $            $
                                                   --------------------------
    Cash provided (used)

    Operations
    Net (loss) earnings                                     (63)         480
    Add items not affecting cash:
      Share of loss from Trimac Transportation
       Services Limited Partnership                         562           28
      Deferred compensation costs                             6            -
                                                   --------------------------

    Cash provided by operations                             505          508
    Net change in non-cash working capital                 (788)         169
                                                   --------------------------

    Net cash (used in) provided by operations              (283)         677
                                                   --------------------------

    Investments
    Distributions from Trimac Transportation
     Services Limited Partnership                         1,416        2,468
                                                   --------------------------

    Cash provided by investing activities                 1,416        2,468
                                                   --------------------------

    Financing
    Distributions paid                                   (1,978)      (2,902)
                                                   --------------------------

    Cash used in financing activities                    (1,978)      (2,902)
                                                   --------------------------

    (Decrease) increase in cash                            (845)         243
    Cash, beginning of year                                 970          404
                                                   --------------------------

    Cash, end of year                                       125          647
                                                   --------------------------
                                                   --------------------------

    Supplemental information
      Cash received from interest (net)                     682          703


    The financial statements included in this news release do not contain the
notes to the statements. Financial statements with note disclosure are filed
with securities regulators.



    Trimac Transportation Services Limited Partnership
    Consolidated Balance Sheet
    (unaudited)
    -------------------------------------------------------------------------
    (thousands of dollars)

                                                          As at        As at
                                                       March 31, December 31,
                                                           2009         2008
                                                              $            $
                                                   --------------------------

    Assets

    Current assets
    Cash                                                  3,217        2,350
    Accounts receivable                                  27,674       31,350
    Materials and supplies                                1,538        1,626
    Due from related parties                              2,587        3,088
    Prepaid expenses                                     11,384       10,315
                                                   --------------------------

                                                         46,400       48,729

    Capital assets                                       89,791       92,708
    Intangible assets                                     3,252        3,495
    Goodwill                                              6,182        6,182
    Other                                                 1,624        1,622
                                                   --------------------------

                                                        147,249      152,736
                                                   --------------------------
                                                   --------------------------

    Liabilities

    Current liabilities
    Bank indebtedness                                         -        1,969
    Accounts payable and accrued liabilities             29,837       29,282
    Distributions payable                                 3,010        3,080
    Income taxes payable                                     66          570
    Due to related parties                                    1        1,223
    Current maturities of long-term debt                 18,666       18,666
                                                   --------------------------

                                                         51,580       54,790

    Long-term debt                                       46,280       44,723
    Future income taxes                                   1,214        1,207
    Other long-term liabilities                           1,227        1,253
                                                   --------------------------

                                                        100,301      101,973

    Partnership equity                                   46,948       50,763
                                                   --------------------------

                                                        147,249      152,736
                                                   --------------------------
                                                   --------------------------
    

    The Partnership provides bulk trucking services throughout Canada and
complementary logistics services in Canada and the United States. Effective
January 1, 2005, the Partnership purchased substantially all of the assets of
Trimac Transportation Services Inc. ("TTSI") relating to its Canadian bulk
trucking business and its North American logistics business. TTSI and certain
of its subsidiaries conducted the business operations of the Partnership prior
to January 1, 2005.

    
    Trimac Transportation Services Limited Partnership
    Consolidated Statement of Earnings, Comprehensive Income and Partnership
    Equity
    (unaudited)
    -------------------------------------------------------------------------
    (thousands of dollars)

                                                   Three months Three months
                                                          ended        ended
                                                       March 31,    March 31,
                                                           2009         2008
                                                              $            $
                                                   --------------------------

    Revenue
    Transportation revenue                               59,449       66,587
    Fuel surcharges                                       4,683       10,164
                                                   --------------------------
                                                         64,132       76,751
                                                   --------------------------

    Operating costs and expenses
    Direct                                               47,990       58,343
    Selling and administrative                           10,621       11,483
    Depreciation and amortization                         5,218        5,416
    Gain on sale of assets (net)                           (190)        (377)
                                                   --------------------------

    Operating expense                                    63,639       74,865
                                                   --------------------------

    Operating earnings                                      493        1,886

    Interest on long-term debt                              984        1,161
    Other interest expense                                   23           11
                                                   --------------------------
                                                          1,007        1,172
                                                   --------------------------

    (Loss) earnings before income taxes                    (514)         714

    Income tax expense (recovery)
    Current                                                 161          126
    Future                                                    8           (6)
                                                   --------------------------
                                                            169          120
                                                   --------------------------

    Net (loss) earnings                                    (683)         594

    Other comprehensive income - net change in
     cumulative translation adjustments                     100           70
                                                   --------------------------

    Comprehensive (loss) income                            (583)         664

    Opening partnership equity                           50,763       55,186
    Distributions declared                               (3,232)      (4,777)
                                                   --------------------------

    Closing partnership equity                           46,948       51,073
                                                   --------------------------
                                                   --------------------------

    Accumulated other comprehensive (losses)
     income (included in partnership equity)
    ----------------------------------------------

    Opening balance                                         264         (269)
    Other comprehensive income                              100           70
                                                   --------------------------

    Closing balance                                         364         (199)
                                                   --------------------------
                                                   --------------------------



    Trimac Transportation Services Limited Partnership
    Consolidated Statement of Cash Flows
    (unaudited)
    -------------------------------------------------------------------------
    (thousands of dollars)

                                                   Three months Three months
                                                          ended        ended
                                                       March 31,    March 31,
                                                           2009         2008
                                                              $            $
                                                   --------------------------
    Cash provided (used)

    Operations
    Net (loss) earnings                                    (683)         594
    Add back (deduct) items not affecting cash:
      Depreciation and amortization                       5,218        5,416
      Gain on sale of assets (net)                         (190)        (377)
      Future income tax expense (recovery)                    8           (6)
      Other non-cash items                                   14           (4)
                                                   --------------------------

    Cash provided by operations                           4,367        5,623

    Net change in non-cash working capital                  671        2,864
                                                   --------------------------

    Net cash provided by operations                       5,038        8,487
                                                   --------------------------

    Investments
    Purchases of capital assets                          (2,830)      (5,932)
    Proceeds on sale of capital assets                      960          943
    Increase (decrease) in accounts payable and
     accrued liabilities relating to investing
     activities                                           1,345          (67)
    Decrease (increase) in accounts receivable
     relating to investing activities                      5          (37)
    Other                                                    65           39
                                                   --------------------------

    Cash used in investing activities                      (455)      (5,054)
                                                   --------------------------

    Financing
    Increase in long-term debt                            1,557        2,619
    Distributions paid                                   (3,304)      (5,557)
                                                   --------------------------

    Cash used in financing activities                    (1,747)      (2,938)
                                                   --------------------------

    Increase in cash                                      2,836          495
    Cash (bank indebtedness), beginning of year             381         (238)
                                                   --------------------------

    Cash, end of period                                   3,217          257
                                                   --------------------------
                                                   --------------------------

    Supplemental information
    Income taxes paid                                       665           21
    Interest paid                                         1,741        2,184
    

    The financial statements included in this news release do not contain the
notes to the statements. Financial statements with note disclosure are filed
with securities regulators.





For further information:

For further information: Jeffrey J. McCaig, Chairman & Chief Executive
Officer, Trimac Transportation Services Inc., Telephone: (403) 298-5100,
Facsimile: (403) 298-5258; Edward V. Malysa, Executive Vice President & Chief
Operating Officer, Trimac Transportation Services Inc., Telephone: (403)
298-5100, Facsimile: (403) 298-5146; Investor Relations: investors@trimac.com

Organization Profile

Trimac Transportation Ltd.

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