Trimac Announces Fourth Quarter, Year-End Results



    CALGARY, March 7 /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 fourth quarter and for the fiscal year ended December 31, 2007.

    
                                    Three months                  Year
                                 ended December 31,        ended December 31,
    Partnership                  2007         2006         2007         2006
                         ----------------------------------------------------
    (millions of
     dollars)

    Revenues                     79.3         79.8        330.6        323.4
    EBITDA(1)                     9.3         10.6         40.9         42.4
    Net earnings                  2.2          3.1         17.4         17.0


                                    Three months                  Year
                                 ended December 31,        ended December 31,
    The Fund                     2007         2006         2007         2006
                         ----------------------------------------------------
    (millions of
     dollars, except
     per unit amounts
     and numbers
     of units)

    Distributable cash
     per unit(1)(2)           $0.2492      $0.2322      $1.1033      $1.0370
    Distributions
     per unit(1)              $0.2313      $0.2313      $0.9252      $0.9168
    Basic and diluted
     earnings per unit        $0.0875      $0.0785      $0.4989      $0.3805
    Weighted average
     number of units
     used in computing
     basic earnings
     per unit              12,534,193   12,528,515   12,534,193   12,528,515
    Weighted average
     number of units
     outstanding used
     in computing
     diluted earnings
     per unit              23,928,479   23,306,366   23,928,479   23,306,366

    (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 and income taxes and
        interest paid. See "Distributable Cash" for additional commentary.

    Trimac's results for the year reflect the Canadian economic environment,
with strong results in western Canada largely offset by reduced volumes in the
woodchip operations and a slowing central Canadian economy. Revenue increased
by 2.2 percent over 2006 while EBITDA declined by $1.5 million or 3.5 percent.
Distributable cash per unit in 2007 increased by 6.4 percent over 2006, and
distributions made resulted in a payout ratio(3) of 83.9 percent.

    -   In 2007, Trimac completed three acquisitions including the purchase
        of Ken Angeli Trucking Ltd. (KAT) on April 30, 2007, the purchase of
        certain Canadian assets of Logistics Express, Inc. ("Logex") on
        June 1, 2007, and the purchase of the petroleum hauling business and
        related assets of Stan Fergusson Fuels Ltd. ("Fergusson") on
        November 7, 2007.

    -   Results for the fourth quarter of 2007 were impacted by reduced
        activity in the Alberta and B.C. oil and natural gas sector, winter
        weather conditions, continued volatility in woodchip volumes, and
        weak economic conditions in central Canada.

    (3) Payout ratio is equal to cash distributions declared expressed as a
        percent of distributable cash. Management believes the payout ratio
        indicates the ability of the Fund to meet its capital and financing
        commitments.

    Divisional highlights in the fourth quarter were as follows:

    -   The western division achieved a 7.4 percent increase in revenue over
        the fourth quarter of 2006, however, EBITDA decreased by $0.8 million
        or 11 percent from the fourth quarter of 2006;

    -   Eastern division revenue declined by $3.5 million or 11.3 percent
        from the prior year's fourth quarter and EBITDA decreased to
        $1.9 million in the fourth quarter of 2007, which was a $2.0 million
        or 51.3 percent reduction from the fourth quarter of 2006; and

    -   Bulk Plus Logistics Inc. (BPL) experienced a decrease of $0.4 million
        in revenue during the fourth quarter; however, EBITDA improved by
        $0.2 million or 66.6 percent over the prior year's fourth quarter.
    

    In commenting on the results for the fourth quarter and the year ended
December 31, 2007, Jeffrey J. McCaig, Chairman, President and CEO of Trimac,
said:
    "As we look back at 2007, the Canadian economy experienced both a
slowdown in eastern Canada and relatively buoyant performance in western
Canada. Despite the challenges brought on by the changing economy our
operations weathered the changes reasonably well.
    "In the first quarter, revenue and profitability were adversely impacted
by continued volatility in our woodchip operations, severe weather across
western Canada, and lower natural gas drilling activity. In the second and
third quarters of 2007, the western division and BPL operations achieved
improved results over the prior year, due to strong economic activity in
western Canada and a short-term campaign movement in BPL. A weakening central
Canadian economy and continued woodchip volatility slightly offset these
otherwise improved results. While the western division revenue for B.C. and
the Prairie Provinces remained strong in the fourth quarter, profitability was
negatively impacted by higher operating costs during the quarter and a
significant decline in revenues related to oil and natural gas drilling
activity in the latter part of the fourth quarter. In addition, the eastern
division experienced revenue declines and pricing pressure from a weak central
Canadian economy, and higher operating costs that resulted in a decline in
profitability for the fourth quarter."
    In commenting on the future activities and outlook for the business, Mr.
McCaig noted:
    "Looking ahead to 2008, management sees a continuation of current
economic conditions in the western division, although oil and natural
gas-related activity is expected to be lower than in 2007. Management expects
continued volatility in its woodchips volumes due to further restructuring and
consolidation in the forestry industry. In the eastern division, management
believes the reduced level of manufacturing activity that central Canada
experienced in 2007 may not change materially, resulting in a similar
operating environment in 2008."

    
                             Financial Highlights

    Partnership                Three months ended            Year ended
                                  December 31,              December 31,
                         ----------------------------------------------------
    (millions of
     dollars)                    2007       2006(5)        2007       2006(5)
                         ----------------------------------------------------
    Revenues
    Western                      48.1         44.8        193.3        182.6
    Eastern                      27.4         30.9        116.4        123.5
                         ----------------------------------------------------
    Canadian trucking            75.5         75.7        309.7        306.1
    BPL                           3.7          4.1         20.8         17.3
    Other                         0.1            -          0.1            -
                         ----------------------------------------------------
                                 79.3         79.8        330.6        323.4
    Direct costs                 58.6         57.0        243.4        235.7
    Selling and
     administrative              11.4         12.2         46.3         45.3
                         ----------------------------------------------------

    EBITDA(1)                     9.3         10.6         40.9         42.4
    Depreciation net of
     gains on disposal
     of capital
     assets(2)                    5.7          5.9         20.0         20.5
                         ----------------------------------------------------

    Operating earnings            3.6          4.7         20.9         21.9
    Interest
     expense (net)                1.1          1.0          4.7          4.0
                         ----------------------------------------------------

    Earnings before
     taxes                        2.5          3.7         16.2         17.9
    Income tax expense
     (recovery)(3)                0.3          0.6         (1.2)         0.9
                         ----------------------------------------------------

    Net earnings                  2.2          3.1         17.4         17.0
                         ----------------------------------------------------
                         ----------------------------------------------------

    As a percentage
     of revenue
    ----------------
    Direct costs                73.9%        71.4%        73.6%        72.9%
    Selling and
     administrative             14.4%        15.3%        14.0%        14.0%
    EBITDA(1)                   11.6%        13.3%        12.4%        13.1%
    Depreciation(2)              7.2%         7.4%         6.0%         6.3%
    Operating earnings           4.5%         5.9%         6.3%         6.8%


    (millions                    As at December 31,
     of dollars)                 2007         2006
                         --------------------------

    Total assets                154.3        157.9
    Total long-term
     liabilities(4)              44.7         61.7

    (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) Includes a $2.9 million gain on the disposal of a non-strategic
        facility during the second quarter of 2007. Results for 2006 include
        a $0.9 million gain on the disposal of excess land.
    (3) Includes a $1.7 million reversal of a previously recorded future tax
        liability due to a corporate reorganization in the second quarter of
        2007.
    (4) Decrease from December 2006 is due to a reclassification of
        $18.7 million of long-term debt to a current liability and to the
        reversal of a previously recorded future tax liability.
    (5) The 2006 comparative revenues have been restated from those
        previously reported due to an internal reorganization during 2007.
        Total revenue remains unchanged.

    Distributable Cash

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


    (millions of dollars
     except unit amounts,       Three months ended            Year ended
     certain percentages            December 31,              December 31,
     and number of units)        2007         2006         2007         2006
    ----------------------------------------------- -------------------------

    Net cash provided by
     operations                   3.3         14.2         32.7         41.1
    Net change in
     non-cash working
     capital(1)                   5.1         (4.7)         3.3         (2.8)
                          ------------------------- -------------------------
    Cash provided by
     operations                   8.4          9.5         36.0         38.3
    Less adjustment for:
      Net sustaining
       capital
       expenditures
       (net of
       proceeds)(2)(3)           (1.6)        (1.8)        (3.0)       (10.5)
      Provision for
       sustaining capital
       commitments(4)               -         (1.1)        (3.9)        (1.1)
      Provision for
       long-term unfunded
       contractual
       operational
       obligations(5)            (0.2)        (0.3)        (0.5)        (0.3)
                          ------------------------- -------------------------
    Total estimated cash
     available for
     distribution
     (before public
     expenses)                    6.6          6.3         28.6         26.4
    Percentage of
     available cash
     distributable to
     unitholders(6)               52%          54%          52%          54%
    Cash available for
     distribution to
     unitholders (before
     public expenses)             3.3          3.3         14.9         14.2
    Public expenses(7)           (0.2)        (0.4)        (1.1)        (1.2)
                          ------------------------- -------------------------
    Distributable cash
     from operations(2)(8)        3.1          2.9         13.8         13.0
    Distributions declared
     and payable                  2.9          2.9         11.6         11.5

    Distributable cash
     per unit(8)               0.2492       0.2322       1.1033       1.0370
    Distributions
     declared per unit         0.2313       0.2313       0.9252       0.9168
    Payout ratio(2)(8)          92.8%        99.6%        83.9%        88.4%

    Weighted average
     number of units
     outstanding           12,534,193   12,528,515   12,534,193   12,528,515

    Net capital
     expenditures
      Sustaining capital
       expenditures(2)            2.3          2.3         11.2         14.5
      Proceeds on
       disposal of
       capital assets            (0.7)        (0.5)        (8.2)        (4.0)
                          ------------------------- -------------------------
      Net sustaining
       capital
       expenditures(2)(3)         1.6          1.8          3.0         10.5
      Growth capital
       expenditures(2)(9)         1.3          3.0          4.8         15.7
                          ------------------------- -------------------------
                                  2.9          4.8          7.8         26.2
                          ------------------------- -------------------------
                          ------------------------- -------------------------

    (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 meanings prescribed by GAAP and may not be comparable to
        similarly named measures presented by other issuers. Management
        believes that they are important and useful measures for readers to
        evaluate the performance of the Fund.
    (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".
    (4) Represents the completion of a reversal of a $1.1 million reserve
        established in the fourth quarter of 2006 for a facility expansion.
        In addition, the Partnership has reserved $5.0 million of proceeds on
        the disposal of a non-strategic facility in the second quarter of
        2007 to be used to acquire replacement facilities.
    (5) Represents a provision for cash requirements relating to a long-term
        incentive plan and an executive pension liability.
    (6) Percentage is equal to weighted average number of units outstanding
        of 12,534,193 divided by fully diluted units of 23,928,479.
    (7) Represents expenses associated with the Fund's status as a reporting
        issuer.
    (8) 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.
    (9) 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 line of credit.
    

    During the year, distributable cash was positively impacted by the
Partnership's reduced net sustaining capital expenditures (including reserves)
of $4.7 million, partially offset by a $2.3 million decrease in cash provided
by operations. The Fund's distributable cash was $13.8 million in 2007, an
increase of $0.8 million over the prior year resulting from its share of the
aforementioned Partnership changes in sustaining capital and cash from
operations. Distributions in the current year were paid using cash generated
from operations. 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 amounts required for debt service obligations,
sustaining capital expenditures, cash taxes, other expense amounts and
reserves (including amounts for capital expenditures and working capital) and
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, from cash as well as from 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, reserves for
funding long-term liabilities, reserves 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 income trusts.

    Operating Results

    In the three-month period ended December 31, 2007 (the "current period")
Trimac's total revenues were $79.3 million, a decrease of $0.5 million or
0.6 percent from the three-month period ended December 31, 2006 (the "prior
period"). Acquisitions contributed $3.5 million of revenue in the current
period. EBITDA fell from $10.6 million in the prior period to $9.3 million in
the current period, a decrease of $1.3 million or 12.3 percent.
    Trimac's revenue in the year ended December 31, 2007 (the "current year")
was $330.6 million, an increase of $7.2 million or 2.2 percent from the
$323.4 million recorded in the year ended December 31, 2006 (the "prior
year"). Acquisitions contributed $13.8 million of revenue in the current year.
EBITDA fell from $42.4 million in the prior year to $40.9 million in the
current year, a decrease of $1.5 million or 3.5 percent.

    Bulk Trucking Operations

    Fourth Quarter

    The western division generated $48.1 million in revenue in the current
period, an increase of $3.3 million or 7.4 percent from the prior period. The
increase in revenue for the current period included $2.7 million relating to
acquisitions acquired during the year. The division achieved strong revenue
growth of approximately $4.8 million or 13.4 percent in its British Columbia
and Prairie Provinces operations. The increase in revenue resulted from
increased petroleum revenue due to contracts secured in 2006; the acquisition
of KAT on April 30, 2007; and the June 1, 2007 acquisition of certain assets
of Logex. Partially offsetting these revenue gains was a $1.2 million or
16.4 percent reduction in revenues from the division's woodchip operation and
some softening of cement and chemical volumes. The woodchip revenue decline
was primarily the result of business losses and the closure of sawmills and
pulp mills in 2006 and the current year. Lower woodchip revenue; winter
weather conditions, which resulted in higher operating costs and lower
productivity; increased accident claim costs; and lower equipment utilization
due to a slowdown in drilling activity in the oil and natural gas industry
were the main factors that resulted in a reduction of $0.8 million in EBITDA
to $6.5 million in the current period.
    The eastern division's revenue totalled $27.4 million in the current
period, $3.5 million or 11.3 percent lower than in the prior period. Revenue
gains of $0.8 million from the acquisition of Fergusson in the current quarter
were more than offset by business losses and reduced volumes with existing
customers in the cement, dry bulk, plastics, and liquid chemical product
lines. Business losses and reduced volumes were primarily the result of weak
economic conditions in central Canada. EBITDA decreased by $2.0 million to
$1.9 million in the current period due to lower revenue, increased driver
wages and repairs, increased accident claim costs, and higher operating costs
due to competitive business renewals.

    Annual

    The western division generated $193.3 million in revenue in the current
year, an increase of $10.7 million or 5.9 percent over the $182.6 million
recorded in the prior year. Incremental revenue due to acquisitions was
$7.4 million. The division achieved strong revenue growth of approximately
$20.2 million or 14.5 percent in its B.C. and Prairie Provinces operations.
Revenue increased in petroleum, chemicals, compressed gases, and industrial
minerals. The growth was aided by the acquisition of KAT on April 30, 2007 and
the June 1, 2007 acquisition of certain assets of Logex. Partially offsetting
the division's revenue growth was a $8.9 million or 25.7 percent decline in
the woodchip product line, resulting from temporary and permanent closures of
sawmills and pulp mills. The division generated EBITDA of $28.5 million in the
current year, an increase of $0.2 million over the prior year. The improved
EBITDA resulted from business awards, partially offset by higher accident
claim costs, winter weather, reduced drilling activity in the oil and gas
industry, lower revenues from woodchip operations, and less commercial shop
and washrack activity due to labour shortages.
    The eastern division's revenue was $116.4 million in the current year, a
decrease of $7.1 million or 5.7 percent from $123.5 million in the prior year.
Revenue gains of $6.4 million from the acquisition of Jeffbrett Group of
Companies ("JBE") on October 1, 2006 and the November 6, 2007 acquisition of
Fergusson were more than offset by business losses and reduced volumes with
existing customers in the cement, dry bulk, plastics, and liquid chemical
product lines. Business losses and reduced volumes were primarily the result
of weak economic conditions in central Canada. EBITDA for the eastern division
was reduced to $10.0 million in the current year from $13.0 million in the
prior year, a decrease of $3.0 million or 23.1 percent. The lower EBITDA was
partially offset by lower operating expenses in Atlantic Canada operations,
reducing operating lease expenses, and lower fixed costs due to the sale of
the Oakville facility. These savings were more than offset by reduced revenue;
higher operating costs, expressed as a percentage of revenue, due to
competitive renewals and business losses; the strengthening Canadian dollar;
higher repair expenses; and increased accident claim costs.

    Logistics Operations

    Fourth Quarter

    BPL's revenue was $3.7 million in the current period, a $0.4 million or
9.7 percent decrease from the prior period. The Canadian operation's revenue
decreased by $0.3 million from the prior period due to lower freight brokerage
volumes. BPL's U.S. operations achieved an increase in revenue of 10.3 percent
in U.S. dollars, with third-party logistics more than offsetting reduced
transload and freight brokerage revenues. The strengthening Canadian dollar
impacted the translation of U.S. revenue into Canadian dollars, resulting in a
5.1 percent decrease. Improved results from the logistics and transload
operations resulted in EBITDA of $0.5 million in the current period, an
increase of $0.2 million or 66.6 percent from the prior period.

    Annual

    BPL's revenue was $20.8 million in the current year, an increase of
$3.5 million or 20.2 percent over the prior year. BPL's Canadian freight
brokerage volume gains more than offset reduced transload revenue. Increased
freight brokerage revenue was primarily due to a short-term contract that
contributed $5.6 million during the first nine months of 2007. In the U.S.,
modest gains in freight brokerage and third-party logistics management volumes
were offset by a reduction in transload revenue and the currency translation
impact due to a stronger Canadian dollar. In the current year, BPL's EBITDA
was $2.4 million, an increase of $0.7 million or 41.2 percent from the prior
year. The increased EBITDA was the result of higher freight brokerage revenue
and the non-recurrence of a large product claim in 2006.

    Capital Expenditures

    The Partnership's net capital expenditures, including growth and
sustaining capital, totalled $7.8 million in the current year, compared to
$26.2 million in the prior year, a reduction of $18.4 million. The reduction
from the prior year was made up of reduced gross sustaining capital purchases
of $3.3 million, lower growth capital of $10.9 million and increased proceeds
on the disposal of capital assets of $4.2 million.
    Decreased growth capital spending of $10.9 million in the current year
was due to significant growth capital purchases in the prior year due to new
business awards. Tractors and trailers accounted for approximately 80 percent
of growth capital expenditures with the remaining growth capital being spent
on the construction of a transload facility and software to support new
logistics business. 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 sustaining capital purchases were $7.5 million lower in the current
year, due primarily to a $2.8 million reduction in tractor spending and a
$4.2 million increase in disposal proceeds in the current year. The lower
replacement tractor purchases in the current year were as a result of a
significant purchase of tractors in 2006, resulting in lower replacement needs
in 2007. Proceeds on disposal increased in the current year due to higher
equipment sales of $0.2 million, and a $5.9 million disposal of a
non-strategic facility in Oakville, Ontario in the current year, compared to
proceeds of $1.5 million on the sale of excess land in Edmonton, Alberta and
$0.5 million on the sale of a terminal in Moose Jaw, Saskatchewan in the prior
year.
    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. Estimated net ongoing
sustaining capital expenditure requirements for 2008 are expected to be in the
range of $10.0 million to $12.0 million. 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.

    Fuel Costs

    Fuel costs fluctuated during the current quarter with average
daily-posted rack prices for ultra-low-sulphur diesel fuel at refineries
across Canada ranging from $0.73 per litre to $0.95 per litre. Trimac has fuel
surcharge programs in place with substantially all of its customers and the
effect of changes in fuel prices has generally been neutral to its results in
past years.
    The bulk trucking industry and its customers have generally agreed to
monthly fuel surcharges, a practice which tends to create a shortfall in fuel
recoveries in periods of rising fuel prices and an over-recovery when fuel
prices decline. Fuel surcharges averaged approximately 11.5 percent of base
trucking revenue during the current year. The Partnership believes its fuel
surcharge program is effective in recovering fuel cost increases over time;
however, there is a lag in fuel price recovery during periods of escalating
prices that may result in quarterly shortfalls or surpluses depending on the
price trend in any given period.

    Forward-Looking Statements

    This news release contains statements concerning the outlook for Trimac's
business and estimates for sustaining capital or other expectations, plans,
goals, objectives, assumptions, information or statements about future events,
conditions, results of operations or performance that may constitute
forward-looking statements or information under applicable securities
legislation. Words such as "may", "will", "should", "expect", "plan",
"anticipate", "believe", "estimate", "predict", and words and expressions of
similar import are intended to identify these forward-looking statements. Such
forward-looking statements or information are based on a number of
assumptions, which may prove to be incorrect. In addition to any other
assumptions identified in this news release, certain assumptions have been
made concerning the forward-looking information contained herein including,
among other things: Trimac will be successful in maintaining its customer
relationships and such customers will not materially reduce the volume of
business provided to Trimac; general economic conditions will not be
materially different in 2008 from those prevailing in the fourth quarter of
2007; Trimac will continue to attract and retain a sufficient number of
qualified drivers and mechanics; Trimac will continue to be successful in
recovering fuel price increases from its customers; adverse weather will not
unduly impact Trimac's operations; the Canadian dollar will not materially
strengthen against the United States dollar; distributions payable by Trimac
to its unitholders will not be subject to tax in 2008; there will be no
material changes to the laws and regulations applicable to Trimac or its
businesses; the seasonality of Trimac's business will be consistent with
historical trends; no irreparable damage will be done to Trimac's operating
systems and databases or information contained thereon; Trimac will maintain
or improve upon its competitive position within the bulk trucking sector;
adequate financing will be available to Trimac to fund capital expenditures,
working capital and distributions on terms and conditions favourable to
Trimac; Trimac will not have any judgment entered against it in a court of law
which would have a material adverse effect on Trimac or its businesses; Trimac
will continue to have all material licences and permits required by law to
conduct its businesses as presently conducted; there will not be a material
increase in the price of equipment required in the business of Trimac; and the
estimated useful life of equipment and the proceeds received on the
disposition thereof will be consistent with historical trends at Trimac.
    Although the Fund believes that the expectations reflected in such
forward-looking statements or information are reasonable, undue reliance
should not be placed on forward-looking statements because the Fund can give
no assurance that such expectations will prove to be correct. Forward-looking
statements or information are based on current expectations, estimates and
projections that involve a number of risks and uncertainties which could cause
actual results to differ materially from those anticipated by the Fund and
described in the forward-looking statements or information. These risks and
uncertainties include but are not limited to:

    
    -   General economic conditions - Certain product lines of Trimac are
        dependent on the general economic conditions of the regions in which
        Trimac operates and cash flows may be negatively impacted by economic
        downturns in any particular region;
    -   Labour - Trimac's cash flow and growth are dependent on its ability
        to hire and retain quality drivers and mechanics;
    -   Fuel - Rising fuel prices and the ability of Trimac to recover cost
        increases in the marketplace may impact cash flow;
    -   Weather - Adverse weather may impact Trimac's transportation of goods
        and increase operating costs;
    -   Foreign currency exchange - The strengthening Canadian dollar may
        impact Trimac's customers' cost competitiveness and negatively impact
        the volume of goods transported;
    -   Tax structure - Changes in government regulation may negatively
        impact Trimac's distributable cash;
    -   Environmental considerations - Changes in environmental law may
        impact operating costs;
    -   Seasonality of business - Financial results may be impacted by the
        seasonality of the business;
    -   Information technology - Cash flow could be adversely affected by an
        event that caused irreparable damage to Trimac's operating systems
        and databases or information contained in the databases;
    -   Competitive conditions - There can be no assurance that Trimac will
        be able to compete successfully against its current or future
        competitors or that competition will not have a material adverse
        affect on its results of operations and financial condition; and
    -   Financing - No assurances can be made that financing will be
        available when required by business needs.
    

    The foregoing list of risks and uncertainties is not exhaustive.
Additional information on these and other factors which may affect Trimac's
operations or financial results and those of the Fund are included under the
heading "Risk Factors" in the Fund's current Annual Information Form and as
may be updated in the Fund's annual and interim Management's Discussion and
Analysis and Annual Information Form, which are or will be filed with
securities regulators. The Fund undertakes no obligation to update publicly or
otherwise revise any forward-looking statement, whether as a result of new
information, future events or otherwise.

    Trimac is Canada's largest provider of bulk trucking services, with
operations from coast to coast. In addition, through its wholly owned
subsidiary, BPL, Trimac provides third-party transportation logistics services
in Canada and the United States. Trust units of Trimac Income Fund are traded
on The Toronto Stock Exchange under the symbol TMA.UN.

    You are invited to join us on a conference call at 10:00 a.m. Eastern
Time on Monday March 10, 2008. For North American participants, please dial
1-888-300-0053 or for international participants, please dial ++1 647-427-3420
at least 10 minutes prior to the start time of the call.
    A playback of the call will be available starting at 1:00 p.m. Eastern
Time on Monday, March 10, 2008 until midnight March 17, 2008. To hear the
playback, please dial 1-800-677-8849 or for international participants, please
dial ++1 402-220-1454 and when prompted please enter the conference ID number
36690770.

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


    As at December 31,                                     2007         2006
                                                              $            $
                                                     ------------------------
    Assets

    Current assets
    Cash                                                    404          223
    Interest receivable                                     238          237
    Distributions receivable                                866          949
    Prepaid expenses                                         64           75
                                                     ------------------------

                                                          1,572        1,484

    Investment in Trimac Transportation Services
     Limited Partnership                                 72,961       78,431
    Note receivable from Trimac Transportation
     Services Inc.                                       35,141       35,000
                                                     ------------------------

                                                        109,674      114,915
                                                     ------------------------
                                                     ------------------------

    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities                189          236
    Due to associated companies and partnerships            439          310
    Distributions payable                                   967          966
                                                     ------------------------

                                                          1,595        1,512

    Unitholders' equity                                 108,079      113,403
                                                     ------------------------

                                                        109,674      114,915
                                                     ------------------------
                                                     ------------------------
    

    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
    -------------------------------------------------------------------------
    (thousands of dollars, except for numbers of units)

                         Three months Three months
                                ended        ended   Year ended   Year ended
                          December 31, December 31, December 31, December 31,
                                 2007         2006         2007         2006
                                    $            $            $            $
                           ------------------------  ------------------------

    Share of earnings of
     Trimac Transportation
     Services Limited
     Partnership(1)               597          659        4,499        3,150
    Interest income               708          707        2,807        2,803
    Administrative costs         (207)        (382)      (1,053)      (1,186)
                           ------------------------  ------------------------

    Net earnings                1,098          984        6,253        4,767

    Other comprehensive
     loss - share of
     Partnership other
     comprehensive loss            (5)           -          (88)           -
                           ------------------------  ------------------------

    Comprehensive income        1,093          984        6,165        4,767

    Opening unitholders'
     equity                   109,887      115,317      113,403      120,122
    Adoption of new
     accounting standard            -            -          (35)           -
    Issue of additional
     units                          -            -          141            -
    Distributions              (2,901)      (2,898)     (11,595)     (11,486)
                           ------------------------  ------------------------

    Closing unitholders'
     equity                   108,079      113,403      108,079      113,403
                           ------------------------  ------------------------
                           ------------------------  ------------------------
    Basic and diluted
     earnings per
     unit (2)             $    0.0875  $    0.0785  $    0.4989  $    0.3805
    Weighted average
     number of units
     outstanding used
     in computing basic
     earnings per unit     12,534,193   12,528,515   12,534,193   12,528,515
    Weighted average
     number of units
     outstanding used
     in computing
     diluted earnings
     per unit (2)          23,928,479   23,306,366   23,928,479   23,306,366

    (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 Three months
                                ended        ended   Year ended   Year ended
                          December 31, December 31, December 31, December 31,
                                 2007         2006         2007         2006
                           ------------------------  ------------------------
                                    $            $            $            $

    Net earnings of the
     Partnership                2,288        3,156       17,442       17,001
      Add: Interest
       expense on TTSI
       debt included in
       Partnership
       earnings                 1,029        1,029        4,085        4,085
                           ------------------------  ------------------------

    Adjusted Partnership
     earnings                   3,317        4,185       21,527       21,086
      Less: Purchase price
       allocation
       adjustments:
        Increase in
         amortization
         of capital assets       (593)      (1,468)      (4,717)      (3,066)

        Amortization of
         intangible assets     (1,010)      (1,010)      (4,039)      (9,572)
                           ------------------------  ------------------------

    Partnership earnings
     after purchase
     price adjustments          1,714        1,707       12,771        8,448
                           ------------------------  ------------------------
    Share of Partnership
     earnings                     597          659        4,499        3,150
                           ------------------------  ------------------------

    (2) Pursuant to an investor liquidity agreement, holders of TTSI
        Exchangeable Shares have the right to effectively liquidate their
        10,086,595 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. The impact of the exchange has not been
        disclosed, as it is anti-dilutive.


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

                         Three months Three months
                                ended        ended   Year ended   Year ended
                          December 31, December 31, December 31, December 31,
                                 2007         2006         2007         2006
                                    $            $            $            $
                           ------------------------  ------------------------
    Cash provided (used)

    Operations
    Net earnings                1,098          984        6,253        4,767
    (Deduct) add items
     not affecting cash:
      Share of earnings
       from Trimac
       Transportation
       Services Limited
       Partnership               (597)        (659)      (4,499)      (3,150)
      Distributions from
       Trimac
       Transportation
       Services Limited
       Partnership                597          659        4,499        3,150
                           ------------------------  ------------------------

    Cash provided by
     operations                 1,098          984        6,253        4,767
    Net change in non-cash
     working capital              101           49           92          347
                           ------------------------  ------------------------
    Net cash provided by
     operations                 1,199        1,033        6,345        5,114
                           ------------------------  ------------------------

    Investments
    Distributions from
     Trimac Transportation
     Services Limited
     Partnership                1,920        1,994        5,430        6,405
                           ------------------------  ------------------------
    Cash provided by
     investing activities       1,920        1,994        5,430        6,405

    Financing
    Distributions paid         (2,901)      (2,897)     (11,594)     (11,433)
                           ------------------------  ------------------------
    Cash used in financing
     activities                (2,901)      (2,897)     (11,594)     (11,433)
                           ------------------------  ------------------------
    Increase in cash              218          130          181           86
    Cash, beginning of year       186           93          223          137
                           ------------------------  ------------------------
    Cash, end of year             404          223          404          223
                           ------------------------  ------------------------
                           ------------------------  ------------------------

    Supplemental
     information
    Cash received from
     interest                     700          700        2,806        2,804

    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
    -------------------------------------------------------------------------
    (thousands of dollars)

    As at December 31,                                     2007         2006
                                                              $            $
                                                     ------------------------
    Assets

    Current assets
    Accounts receivable                                  32,816       32,671
    Materials and supplies                                1,777        1,823
    Due from related parties                              2,685        1,399
    Income taxes recoverable                                 61            -
    Prepaid expenses                                      9,637        9,978
                                                     ------------------------

                                                         46,976       45,871

    Capital assets                                       97,467      105,163
    Intangible assets                                     2,387        1,093
    Goodwill                                              6,052        4,471
    Other                                                 1,398        1,287
                                                     ------------------------

                                                        154,280      157,885
                                                     ------------------------
                                                     ------------------------

    Liabilities

    Current liabilities
    Bank indebtedness                                       238          699
    Accounts payable and accrued liabilities             28,559       29,681
    Distributions payable                                 4,765        5,099
    Income taxes payable                                      -          540
    Due to related parties                                2,173        3,138
    Current maturities of long-term debt                 18,666            -
                                                     ------------------------

                                                         54,401       39,157

    Long-term debt                                       42,338       58,260
    Future income taxes                                     435        1,830
    Other long-term liabilities                           1,920        1,574
                                                     ------------------------

                                                         99,094      100,821

    Partnership equity                                   55,186       57,064
                                                     ------------------------

                                                        154,280      157,885
                                                     ------------------------
                                                     ------------------------

    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
    -------------------------------------------------------------------------
    (thousands of dollars)

                         Three months Three months
                                ended        ended   Year ended   Year ended
                          December 31, December 31, December 31, December 31,
                                 2007         2006         2007         2006
                                    $            $            $            $
                           ------------------------  ------------------------

    Transportation revenue     70,084       72,395      294,935      290,847
    Fuel surcharges             9,173        7,368       35,665       32,563
                           ------------------------  ------------------------
    Total revenues             79,257       79,763      330,600      323,410
                           ------------------------  ------------------------

    Operating costs and
     expenses
    Direct                     58,603       56,969      243,434      235,654
    Selling and
     administrative            11,328       12,178       46,256       45,323
    Depreciation and
     amortization               5,834        6,113       23,384       22,146
    Gain on sale of
     assets (net)                 (81)        (224)      (3,394)      (1,651)
                           ------------------------  ------------------------

    Operating expense          75,684       75,036      309,680      301,472
                           ------------------------  ------------------------

    Operating earnings          3,573        4,727       20,920       21,938
    Interest on long-term
     debt                       1,157        1,094        4,687        4,262
    Other interest
     income                       (44)         (71)         (10)        (245)
                           ------------------------  ------------------------
                                1,113        1,023        4,677        4,017
                           ------------------------  ------------------------

    Earnings before income
     taxes                      2,460        3,704       16,243       17,921

    Income tax expense
     (recovery)
      Current                     (76)         137          469          407
      Future                      248          411       (1,668)         513
                           ------------------------  ------------------------
                                  172          548       (1,199)         920
                           ------------------------  ------------------------

    Net earnings                2,288        3,156       17,442       17,001

    Other comprehensive
     (loss) income - net
     change in cumulative
     translation
     adjustments                  (15)          41         (249)          11
                           ------------------------  ------------------------

    Comprehensive income        2,273        3,197       17,193       17,012

    Opening partnership
     equity                    57,848       59,252       57,064       59,650
    Adoption of
     new accounting
     standard                       -            -          (81)           -
    Distributions declared     (4,935)      (5,385)     (18,990)     (19,598)
                           ------------------------  ------------------------

    Closing partnership
     equity                    55,186       57,064       55,186       57,064
                           ------------------------  ------------------------
                           ------------------------  ------------------------

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

    Opening balance as
     previously reported         (254)           -            -            -
    Adjustment on
     adoption of
     accounting policy              -          (61)         (20)         (31)
                           ------------------------  ------------------------
                                 (254)         (61)         (20)         (31)
    Other comprehensive
     (loss) income                (15)          41         (249)          11
                           ------------------------  ------------------------

    Closing balance              (269)         (20)        (269)         (20)
                           ------------------------  ------------------------
                           ------------------------  ------------------------


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

                         Three months Three months
                                ended        ended   Year ended   Year ended
                          December 31, December 31, December 31, December 31,
                                 2007         2006         2007         2006
                                    $            $            $            $
                           ------------------------  ------------------------
    Cash provided (used)

    Operations
    Net earnings                2,288        3,156       17,442       17,001
    Add back (deduct)
     items not affecting
     cash:
      Depreciation and
       amortization             5,834        6,113       23,384       22,146
      Gain on sale of
       assets (net)               (81)        (224)      (3,394)      (1,651)
      Future income tax
       (recovery) expense         248          411       (1,668)         513
      Other non-cash
       items                       49           31          187          276
                           ------------------------  ------------------------

    Cash provided by
     operations                 8,338        9,487       35,951       38,285
    Net change in non-cash
     working capital           (5,059)       4,727       (3,289)       2,794
                           ------------------------  ------------------------
    Net cash provided by
     operations                 3,279       14,214       32,662       41,079
                           ------------------------  ------------------------

    Investments
    Purchases of capital
     assets                    (3,549)      (5,314)     (15,987)     (30,244)
    Proceeds on sale of
     capital assets               652          533        8,187        4,032
    Acquisition of
     transportation assets     (4,100)      (8,171)      (7,364)      (8,171)
    (Decrease) increase in
     accounts payable and
     accrued liabilities
     relating to investing
     activities                   384          (77)        (117)         787
    Decrease (increase) in
     accounts receivable
     relating to investing
     activities                   (55)       1,413            9          (64)
    Other                          (9)          97         (349)         (22)
                           ------------------------  ------------------------

    Cash used in investing
     activities                (6,677)     (11,519)     (15,621)     (33,682)
                           ------------------------  ------------------------

    Financing
    Increase in long-term
     debt                       4,338        2,260        2,744        2,260
    Distributions paid         (4,898)      (4,398)     (19,324)     (17,103)
                           ------------------------  ------------------------

    Cash used in financing
     activities                  (560)      (2,138)     (16,580)     (14,843)
                           ------------------------  ------------------------
    Increase (decrease) in
     cash and term deposits    (3,958)         557          461       (7,446)
    (Bank indebtedness)
     cash and term
     deposits, beginning
     of year                    3,720       (1,256)        (699)       6,747
                           ------------------------  ------------------------
    Bank indebtedness, end
     of year                     (238)        (699)        (238)        (699)
                           ------------------------  ------------------------
                           ------------------------  ------------------------

    Supplemental
     Information
    Income taxes paid             234          (64)       1,070          143
    Interest paid                  95            5        4,689        4,050


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





For further information:

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

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Trimac Transportation Ltd.

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