Trimac Announces Fourth Quarter, Year-End Results

CALGARY, March 11 /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, 2009.

    
                                   Three months ended          Year ended
                                       December 31,            December 31,
    Partnership                     2009        2008        2009        2008
                              -----------------------------------------------
    (millions of dollars)

    Transportation revenue          60.0        66.8       241.9       273.7
    Fuel surcharges                  4.9        11.3        18.0        53.0
                              -----------------------------------------------
    Total revenue                   64.9        78.1       259.9       326.7

    EBITDA(1)                        8.3         9.8        30.1        40.6
    Net earnings                     1.2         3.0         5.4        13.8


                                   Three months ended          Year ended
                                       December 31,            December 31,
    The Fund                        2009        2008        2009        2008
                              -----------------------------------------------
    (millions of dollars,
     except per unit amounts
     and numbers of units)

    Distributable cash per
     unit(1)(2)                  $0.1888     $0.2525     $0.6657     $1.0733
    Distributions per unit(1)    $0.1200     $0.2313     $0.4800     $0.9252
    Basic earnings per unit      $0.0236     $0.1088     $0.1404     $0.4690
    Fully diluted earnings per
     unit                        $0.0227     $0.1088     $0.1389     $0.4690
    Weighted average number of
     units used in computing
     basic earnings per unit  12,584,679  12,574,520  12,584,679  12,574,520
    Number of units
     outstanding used in
     computing diluted
     earnings per unit        25,916,731  24,980,735  25,916,731  24,980,735

    (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, including fuel surcharges, for the year ended December 31, 2009 ("current year") decreased by $66.8 million or 20.4 percent as compared to December 31, 2008 ("prior year"). This decrease was primarily the result of a $35 million reduction in fuel surcharge revenue, business losses, price erosion and lower volumes with existing customers due to the severe economic downturn in 2009. EBITDA decreased by $10.5 million or 25.9 percent from the prior year. As a percentage of revenue EBITDA was 11.6 percent, a slight decrease of 0.8 percent from the prior year. Trimac's revenue, including fuel surcharges, for the three-month period ended December 31, 2009 ("current period") decreased by $13.2 million or 16.9 percent from the three-month period ended December 31, 2008 ("prior period"). Contributing to this decrease was a $6.4 million reduction in revenue from fuel surcharges. In addition, revenue continued to be affected by the continuation of recessionary conditions. EBITDA decreased by $1.5 million or 15.3 percent from the prior period. Expressed as a percent of revenue, EBITDA for the current period was 12.8 percent, a slight increase from the prior period percentage of 12.5. Trimac implemented various cost reduction programs during the current year to maintain EBITDA, expressed as a percentage of revenue, comparable to the prior period.

In commenting on the results for the fourth quarter, Jeffrey J. McCaig, Chairman and CEO of Trimac, said:

"Despite a challenging environment in the fourth quarter of 2009, Trimac was able to maintain a strong balance sheet and finished the year with lower debt and expanded credit facilities to take advantage of growth opportunities that may arise when the economy improves.

Trimac's distributable cash payout ratio was 72.1 percent representing a yield of 15.3 percent based on the annual weighted average share price in 2009. This allowed us to invest $8.0 million in growth capital for future earnings and at the same time maintain leverage ratios at acceptable levels."

For comments regarding management's outlook for 2010 please see Trimac's Management's Discussion and Analysis for the year ended December 31, 2009. With respect to the changes to income tax rules that become effective January 1, 2011 that will result in the taxation of distributions from most income trusts, the Fund is considering available alternatives.

Financial Highlights for the Partnership

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

    Revenues
      Transportation revenue        60.0        66.8       241.9       273.7
      Fuel surcharges                4.9        11.3        18.0        53.0
                              -----------------------------------------------
                                    64.9        78.1       259.9       326.7

      Direct costs                  46.9        57.8       188.8       240.8
      Selling and
       administrative                9.7        10.5        41.0        45.3
                              -----------------------------------------------

    EBITDA(1)                        8.3         9.8        30.1        40.6
      Depreciation net of
       gains on disposal of
       capital assets                5.6         5.4        20.8        21.1
                              -----------------------------------------------

    Operating earnings               2.7         4.4         9.3        19.5
      Interest expense (net)         1.2         1.2         4.1         4.9
                              -----------------------------------------------

    Earnings before taxes            1.5         3.2         5.2        14.6
      Income tax expense
       (recovery)(3)                 0.3         0.2        (0.2)        0.8
                              -----------------------------------------------

    Net earnings                     1.2         3.0         5.4        13.8
                              -----------------------------------------------
                              -----------------------------------------------

    As a percentage of
     revenue(2)
    --------------------------
      Direct costs                 72.3%       74.0%       72.6%       73.7%
      Selling and
       administrative              14.9%       13.4%       15.8%       13.9%
      EBITDA(1)                    12.8%       12.5%       11.6%       12.4%
      Depreciation                  8.6%        6.9%        8.0%        6.5%
      Operating earnings            4.2%        5.6%        3.6%        6.0%

                                   As at December 31
      (millions of dollars)         2009        2008
                              -----------------------

      Total assets                 140.1       152.7
      Total long-term
       liabilities                  45.3        47.2
    

The above selected financial and operating information has been derived from, and should be read in conjunction with, the consolidated financial statements of the Partnership.

    
    (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 and
        the prior and current year. For additional commentary regarding these
        expenses please see Trimac's Management's Discussion and Analysis for
        the year ended December 31, 2009.
    (3) Results in 2009 include a $0.7 million reversal of a previously
        recorded future tax liability resulting from a corporate
        reorganization in the third quarter.
    

Distributable Cash for the Partnership

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

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

    Net cash provided by
     operations                      4.7        11.9        26.7        36.7
    Net change in non-cash
     working capital(1)              2.3        (3.7)       (1.0)       (2.4)
                              -----------------------------------------------
    Cash provided by
     operations                      7.0         8.2        25.7        34.3
    Less adjustments for:
      Net sustaining capital
       expenditures (net of
       proceeds)(2)(3)              (2.0)       (1.3)       (6.7)       (6.2)
      Provision for long-term
       unfunded contractual
       operational
       obligations(4)                0.4           -        (0.1)        0.3
                              -----------------------------------------------
    Total estimated cash
     available for
     distribution (before
     public expenses)                5.4         6.9        18.9        28.4
    Percentage of available
     cash distributable to
     unitholders(5)                  49%         50%         49%         50%
                              -----------------------------------------------

    Cash available for
     distribution to
     unitholders (before
     public expenses)                2.6         3.3         9.2        14.3
    Public expenses(6)              (0.2)       (0.1)       (0.8)       (0.8)
                              -----------------------------------------------
    Distributable cash
     from operations(2)(7)           2.4         3.2         8.4        13.5
    Distributions declared
     and payable                     1.5         2.9         6.1        11.6

    Distributable cash per
     unit(2)(7)                   0.1888      0.2525      0.6657      1.0733
    Distributions declared
     per unit(9)                  0.1200      0.2313      0.4800      0.9252
    Payout ratio(2)(7)             63.6%       91.6%       72.1%       86.2%

    Weighted average number
     of units outstanding     12,584,679  12,574,520  12,584,679  12,574,520

    Net capital expenditures
      Sustaining capital
       expenditures(2)               2.3         2.1         8.4         9.4
      Proceeds on disposal of
       replaced assets              (0.3)       (0.8)       (1.7)       (3.2)
                              -----------------------------------------------
      Net sustaining capital
       expenditures(2)(3)            2.0         1.3         6.7         6.2
      Growth capital
       expenditures(2)(8)            2.3         0.9         8.0         6.5
                              -----------------------------------------------
                                     4.3         2.2        14.7        12.7
                              -----------------------------------------------
                              -----------------------------------------------
    (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.
    (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 "Liquidity and Capital
        Resources - Capital Expenditures".
    (4) Represents a provision for cash requirements relating to a long-term
        incentive plan and an executive pension liability.
    (5) Percentage is equal to weighted average number of units outstanding
        of 12,584,679 divided by fully diluted units of 25,916,731.
    (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 year the Partnership's cash provided by operations decreased by $8.6 million, net sustaining capital expenditures increased by $0.5 million and the provision for long-term unfunded executive compensation plans increased by $0.4 million. The Fund's distributable cash from operations of $8.4 million in the current year was less than that recorded in the prior year by $5.1 million. This was as a result of its share of the aforementioned Partnership changes in cash provided by operations, sustaining capital expenditures and provisions for executive compensation plans. During the current period distributable cash from operations was $2.4 million, a $0.8 million decrease compared to the prior period. The decrease was mostly due to decreased cash provided by operations and a higher level of net sustaining capital expenditures.

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, current expenses and provisions) and reserves to stabilize the monthly amount of distributions to unitholders as may be considered appropriate by the Board of Directors. 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 for the Partnership

Revenue - Full Year

    
    -------------------------------------------------------------------------
                                      Year ended December 31
    -------------------------------------------------------------------------
    (millions of
     dollars)                   2009                          2008
    -------------------------------------------------------------------------
                               Fuel  Net Trans-              Fuel  Net Trans-
                    Total      Sur-   portation   Total      Sur-   portation
                   Revenue   charges   Revenue   Revenue   charges   Revenue
    -------------------------------------------------------------------------

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

    Western
     division        149.3      10.6     138.7     197.8      35.3     162.5
    Eastern
     division         98.2       7.4      90.8     112.9      17.7      95.2
    -------------------------------------------------------------------------

    Total bulk
     trucking        247.5      18.0     229.5     310.7      53.0     257.7
    -------------------------------------------------------------------------

    Bulk Plus
     Logistics        12.4         -      12.4      15.9         -      15.9
    -------------------------------------------------------------------------

    Total
     revenue         259.9      18.0     241.9     326.7      53.0     273.7
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -----------------------------------------------------
                          Year ended December 31
    -----------------------------------------------------
    (millions of
     dollars)         Gross Revenue        Net Revenue
    -----------------------------------------------------


                  Variance         %  Variance         %
    -----------------------------------------------------

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

    Western
     division        (48.5)   -24.5%     (23.8)   -14.6%
    Eastern
     division        (14.7)   -13.0%      (4.4)    -4.6%
    -----------------------------------------------------

    Total bulk
     trucking        (63.2)   -20.3%     (28.2)   -10.9%
    -----------------------------------------------------

    Bulk Plus
     Logistics        (3.5)   -22.0%      (3.5)   -22.0%
    -----------------------------------------------------

    Total
     revenue         (66.8)   -20.4%     (31.8)   -11.6%
    -----------------------------------------------------
    -----------------------------------------------------
    

For the current year, total revenue decreased by $66.8 million or 20.4 percent from the prior year. Fuel surcharges as a percentage of bulk trucking revenue totalled approximately 7.3 percent in comparison to 17.1 percent in the prior year, resulting in a decrease of $35 million. Revenue net of fuel surcharges decreased by $31.8 million or 11.6 percent from the prior year, primarily as a result of business losses, price erosion, and lower volumes with existing customers.

The western division's revenue decreased by $48.5 million or 24.5 percent. Fuel surcharge revenue was $24.7 million lower than the prior year. Revenue net of fuel surcharges decreased by $23.8 million or 14.6 percent compared to the prior year. Incremental revenue of $7.3 million from the December 5, 2008 acquisition of Canamera Carriers Inc. (Canamera) was more than offset by net business losses and reduced volumes with existing customers. This reduction in volumes was primarily due to the economic recession.

The eastern division's revenue decreased by $14.7 million or 13 percent. Fuel surcharge revenue was $10.3 million lower than the prior year. Revenue net of fuel surcharges decreased by $4.4 million or 4.6 percent compared to the prior year. Increased revenue from the edible product line was offset by net business losses and decreased volumes with existing customers in the remaining product lines. These decreased volumes were primarily the result of continued economic weakness in central Canada, predominantly in the petroleum and chemical product lines.

For the current year, BPL's revenue decreased by $3.5 million or 22 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.

Revenue - Q4

    
    -------------------------------------------------------------------------
                                  Three months ended December 31
    -------------------------------------------------------------------------
    (millions of
     dollars)                   2009                          2008
    -------------------------------------------------------------------------
                               Fuel  Net Trans-              Fuel  Net Trans-
                    Total      Sur-   portation   Total      Sur-   portation
                   Revenue   charges   Revenue   Revenue   charges   Revenue
    -------------------------------------------------------------------------

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

    Western
     division         36.9       2.9      34.0      47.9       8.0      39.9
    Eastern
     division         25.1       2.0      23.1      26.4       3.3      23.1
    -------------------------------------------------------------------------

    Total bulk
     trucking         62.0       4.9      57.1      74.3      11.3      63.0
    -------------------------------------------------------------------------

    Bulk Plus
     Logistics         2.9         -       2.9       3.7         -       3.7
    -------------------------------------------------------------------------

    Total
     revenue          64.9       4.9      60.0      78.1      11.3      66.8
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -----------------------------------------------------
                  Three months ended December 31
    -----------------------------------------------------
    (millions of
     dollars)         Gross Revenue        Net Revenue
    -----------------------------------------------------


                  Variance         %  Variance         %
    -----------------------------------------------------

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

    Western
     division        (11.0)   -23.0%      (5.9)   -14.8%
    Eastern
     division         (1.3)    -4.9%         -      0.0%
    -----------------------------------------------------

    Total bulk
     trucking        (12.3)   -16.6%      (5.9)    -9.4%
    -----------------------------------------------------

    Bulk Plus
     Logistics        (0.8)   -21.6%      (0.8)   -21.6%
    -----------------------------------------------------

    Total
     revenue         (13.2)   -16.9%      (6.8)   -10.2%
    -----------------------------------------------------
    -----------------------------------------------------
    

For the current period, total revenue decreased by $13.2 million or 16.9 percent from the prior period. Fuel surcharges as a percentage of bulk trucking revenue totalled approximately 7.9 percent in comparison to 15.2 percent in the prior period, resulting in a decrease of $6.4 million. Trimac has fuel surcharge programs in place with substantially all of its customers. Revenue net of fuel surcharges decreased by $6.8 million or 10.2 percent from the prior period primarily due to business losses, price erosion, and lower volumes with existing customers.

The western division's revenue decreased by $11 million or 23 percent. Fuel surcharge revenue was $5.1 million lower than the prior period. Revenue net of fuel surcharges decreased by $5.9 million or 14.8 percent compared to the prior period. Incremental revenue of $2.4 million from the December 5, 2008 acquisition of Canamera was offset by net business losses and reduced volumes with existing customers. This reduction in volumes impacted the majority of the western division's product lines and was due to continued recessionary conditions in the economy.

The eastern division's revenue decreased by $1.3 million or 4.9 percent. Fuel surcharge revenue was $1.3 million lower than the prior period. Revenue net of fuel surcharges were unchanged as compared to the prior period. Revenue in the petroleum, chemical and industrial gas product lines decreased during the current period while the edibles product line increased to offset the decrease in the other product lines.

For the current period, BPL's revenue decreased by $0.8 million or 21.6 percent. This decrease was primarily due to lower freight brokerage volumes in Canada and the U.S., in addition to decreased revenue generated by the Canadian and U.S. consulting operations.

EBITDA - Full Year

    
    -------------------------------------------------------------------------
                           Year ended December 31
    -------------------------------------------------------------------------
    (millions of                                                      % Rev.
     dollars)             2009  % Rev.   2008  % Rev. Variance    %   change
    -------------------------------------------------------------------------

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

    Western division      20.5   13.7%   29.5   14.9%    (9.0) -30.5%  -1.2%
    Eastern division       7.7    7.8%    8.9    7.9%    (1.2) -13.5%   0.0%
    -------------------------------------------------------------------------

    Total bulk trucking   28.2   11.4%   38.4   12.4%   (10.2) -26.6%  -1.0%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Bulk Plus Logistics    2.3   18.5%    2.7   17.0%    (0.4) -14.8%   1.6%
    -------------------------------------------------------------------------

    Other                 (0.4)          (0.5)            0.1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Total EBITDA          30.1   11.6%   40.6   12.4%   (10.5) -25.9%  -0.8%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

EBITDA for the current year totaled $30.1 million, a $10.5 million or 25.9 percent decrease from the prior year. The western division experienced a $9.0 million or 30.5 percent decrease in the current year. This decrease was primarily the result of lower revenue volumes which were mitigated by lower direct costs, primarily due to various cost reduction programs implemented to reflect lower volumes. The eastern division had reduced EBITDA of $1.2 million or 13.5 percent as lower revenue was mitigated by a reduction in direct costs, which were also due to various cost reduction programs. BPL's EBITDA was $0.4 million lower than in the prior year primarily due to the exiting of a transload management contract in May, 2008 and decreased freight brokerage volumes in Canada and the U.S.

EBITDA - Q4

    
    -------------------------------------------------------------------------
                       Three months ended December 31
    -------------------------------------------------------------------------
    (millions of                                                      % Rev.
     dollars)             2009  % Rev.   2008  % Rev. Variance    %   change
    -------------------------------------------------------------------------

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

    Western division       5.6   15.2%    6.8   14.2%    (1.2) -17.6%   1.0%
    Eastern division       2.7   10.8%    2.9   11.0%    (0.2)  -6.9%  -0.2%
    -------------------------------------------------------------------------

    Total bulk trucking    8.3   13.4%    9.7   13.1%    (1.4) -14.4%   0.3%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Bulk Plus Logistics    0.4   13.8%    0.7   18.9%    (0.3) -42.9%  -5.1%
    -------------------------------------------------------------------------
    Other                 (0.4)          (0.6)            0.2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total EBITDA           8.3   12.8%    9.8   12.5%    (1.5) -15.3%   0.3%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

EBITDA for the current period totaled $8.3 million, a $1.5 million or 15.3 percent decrease from the prior period. The western division experienced a $1.2 million or 17.6 percent decrease in the period, and the eastern division was lower than prior by $0.2 million or 6.9 percent. These decreases were primarily the result of lower revenue which was mitigated by lower direct costs, primarily due to various cost reduction programs implemented to address lower volumes. BPL's EBITDA was $0.3 million or 42.9 percent less than in the prior period as lower revenue was mitigated by a reduction in direct costs. The reduction in direct costs in the current period was the result of lower product claim costs as compared to the prior period.

Capital Expenditures

    
                                   Three months ended          Year ended
                                       December 31             December 31
                              -----------------------------------------------
    (millions of dollars)           2009        2008        2009        2008
    -------------------------------------------------------------------------
    Gross sustaining capital
     expenditures                    2.3         2.1         8.4         9.4
    Less: proceeds on disposal
     of capital assets              (0.3)       (0.8)       (1.7)       (3.2)
                              -----------------------------------------------
    Net sustaining capital
     expenditures                    2.0         1.3         6.7         6.2
    Growth capital
     expenditures                    2.3         0.9         8.0         6.5
                              -----------------------------------------------

    Net capital expenditures         4.3         2.2        14.7        12.7
                              -----------------------------------------------
                              -----------------------------------------------
    

The Partnership's net capital expenditures, including growth and sustaining capital, totalled $14.7 million in the current year as compared to $12.7 million in the prior year. The increase of $2.0 million over the prior year was due to increased net sustaining capital expenditures of $0.5 million and higher growth capital expenditures of $1.5 million.

Gross sustaining capital purchases of $8.4 million included replacement tractors and trailers, which accounted for approximately 61 percent of the total gross sustaining capital purchases, with the balance applicable to facility upgrades, and other operating assets. Net sustaining capital expenditures were $0.5 million higher than in the prior year due to lower proceeds on disposal of capital assets. Proceeds on the disposal of capital assets were $1.5 million less than that recorded in the prior year due primarily to fewer equipment and building sales and lower selling prices in the current year.

Growth capital expenditures of $8.0 million in the current year consisted of trailer purchases that accounted for approximately 56 percent of growth capital expenditures, tractor purchases that accounted for approximately 8 percent of expenditures, a land purchase that accounted for approximately 19 percent of expenditures and the remainder for other operating assets. The trailer purchases consisted predominantly of chemical, grain and edible trailers to support future business in their product lines. 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 us on a conference call at 10:00 a.m. Eastern Time on Friday, March 12, 2010. 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 Friday, March 12, 2010 until midnight March 19, 2010. To hear the playback dial 1-800-642-1687 or for international participants, please dial ++1-706-645-9291 and give the conference ID number: 56682401.

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

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

    Current assets
    Cash                                                   180           970
    Interest receivable                                    241           241
    Distributions receivable                               172           719
    Prepaid expenses                                        85           105
                                                  ---------------------------

                                                           678         2,035

    Investment in Trimac Transportation Services
     Limited Partnership                                63,136        67,412
    Note receivable from Trimac Transportation
     Services Inc.                                      35,438        35,438
                                                  ---------------------------

                                                        99,252       104,885
                                                  ---------------------------
                                                  ---------------------------

    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities                60            74
    Due to associated companies and partnerships           107           967
    Distributions payable                                  504           970
                                                  ---------------------------

                                                           671         2,011

    Deferred compensation plan                             144            50
                                                  ---------------------------

                                                           815         2,061

    Unitholders' equity                                 98,437       102,824
                                                  ---------------------------

                                                        99,252       104,885
                                                  ---------------------------
                                                  ---------------------------
    

The Fund commenced business operations on February 25, 2005 and earnings of the Fund's investment in Trimac Transportation Services Limited Partnership ("Partnership") have been accounted for using the equity method of accounting since commencement. Under this method, the Fund's share of earnings of the Partnership, 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 adjusted (loss) income of the 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 per unit amounts and number of units)

                                   Three       Three
                                  months      months        Year        Year
                                   ended       ended       ended       ended
                                December    December    December    December
                                31, 2009    31, 2008    31, 2009    31, 2008
                              ----------------------- -----------------------
                                       $           $           $           $
    Share of adjusted (loss)
     income of the
     Partnership(1)                 (177)        721        (235)      3,806
    Interest income                  714         725       2,819       2,848
    Administrative costs            (240)        (76)       (817)       (756)
                              ----------------------- -----------------------

    Net earnings                     297       1,370       1,767       5,898

    Other comprehensive
     (loss) income - share
     of Partnership other
     comprehensive (loss)
     income                           (5)        149        (112)        182
                              ----------------------- -----------------------

    Comprehensive income             292       1,519       1,655       6,080

    Opening unitholders'
     equity                       99,656     104,215     102,824     108,079
    Issue of additional units          -           -           -         297
    Distributions declared        (1,511)     (2,910)     (6,042)    (11,632)
                              ----------------------- -----------------------

    Closing unitholders'
     equity                       98,437     102,824      98,437     102,824
                              ----------------------- -----------------------
                              ----------------------- -----------------------

    Basic earnings per
     unit(2)                   $  0.0236   $  0.1088   $  0.1404   $  0.4690

    Fully diluted earnings
     per unit(2)               $  0.0227   $  0.1088   $  0.1389   $  0.4690

    Weighted average number
     of units outstanding
     used in computing basic
     earnings per unit        12,584,679  12,574,520  12,584,679  12,574,520

    Number of units
     outstanding used in
     computing diluted
     earnings per unit        25,916,731  24,980,735  25,916,731  24,980,735

    (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          Year ended
                                       December 31,            December 31,
                                    2009        2008        2009        2008
                                       $           $           $           $
                              -----------------------------------------------

    Net earnings of the
     Partnership                   1,290       2,961       5,448      13,736
      Add: Interest expense
       on TTSI debt included
       in Partnership
       earnings                      344         686       2,227       3,600
    -------------------------------------------------------------------------
    Adjusted Partnership
     earnings                      1,634       3,647       7,675      17,336

      Less: Purchase price
       allocation adjustments:

      Increase in amortization
       of capital assets and
       loss on disposal of
       capital assets               (489)       (575)     (2,036)     (2,318)
      Amortization of
       intangible assets          (1,009)     (1,006)     (4,042)     (4,039)
    -------------------------------------------------------------------------


    Adjusted Partnership
     earnings after purchase
     price adjustments               136       2,066       1,597      10,979
                              -----------------------------------------------
                              -----------------------------------------------

    Share of adjusted
     Partnership (loss)
     earnings                       (177)        721        (235)      3,806
                              -----------------------------------------------
                              -----------------------------------------------
    (2) Pursuant to an investor liquidity agreement, holders of TTSI
        Exchangeable Shares have the right to effectively liquidate their
        10,230,538 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 calculated amount of fully diluted
        earnings per unit for the three month periods ended December 31, 2008
        and for the year ended December 31, 2008 have not been reported as
        they would have an anti-dilutive effect. The amount disclosed for
        these periods as fully diluted earnings per unit is therefore equal
        to the amount disclosed for basic earnings per unit.



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

                                   Three       Three
                                  months      months        Year        Year
                                   ended       ended       ended       ended
                                December    December    December    December
                                31, 2009    31, 2008    31, 2009    31, 2008
                              ----------------------- -----------------------
                                       $           $           $           $

    Cash provided (used)

    Operations
    Net earnings                     297       1,370       1,767       5,898
    Add items not affecting
     cash:
      Share of adjusted loss
       (income) from the
       Partnership                   177        (721)        235      (3,806)
      Distributions from the
       Partnership                     -         721           -       3,806
      Deferred compensation
       costs                          26          (2)         94          50
                              ----------------------- -----------------------

    Cash provided by
     operations                      500       1,368       2,096       5,948
    Net change in non-cash
     working capital                  66          33        (854)        369
                              ----------------------- -----------------------

    Net cash provided by
     operations                      566       1,401       1,242       6,317
                              ----------------------- -----------------------

    Investments
    Distributions from the
     Partnership                   1,025       1,683       4,476       5,878
                              ----------------------- -----------------------

    Cash provided by
     investing activities          1,025       1,683       4,476       5,878
                              ----------------------- -----------------------

    Financing
    Distributions paid            (1,510)     (2,910)     (6,508)    (11,629)
                              ----------------------- -----------------------

    Cash used in financing
     activities                   (1,510)     (2,910)     (6,508)    (11,629)
                              ----------------------- -----------------------

    Increase (decrease)
     in cash                          81         174        (790)        566
    Cash, beginning of period         99         796         970         404
                              ----------------------- -----------------------

    Cash, end of period              180         970         180         970
                              ----------------------- -----------------------
                              ----------------------- -----------------------

    Supplemental information
    Cash received from
     interest (net)                  706         717       2,819       2,845
    

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

    Assets

    Current assets
    Cash                                                   406         2,350
    Accounts receivable                                 28,217        31,350
    Materials and supplies                               1,389         1,626
    Due from related parties                             1,479         3,088
    Income taxes recoverable                                 -             -
    Prepaid expenses                                    10,352        10,315
                                                  ---------------------------

                                                        41,843        48,729

    Capital assets                                      87,482        92,708
    Intangible assets                                    2,701         3,495
    Goodwill                                             6,182         6,182
    Other                                                1,870         1,622
                                                  ---------------------------

                                                       140,078       152,736
                                                  ---------------------------
                                                  ---------------------------

    Liabilities

    Current liabilities
    Bank indebtedness                                      716         1,969
    Accounts payable and accrued liabilities            27,072        29,282
    Distributions payable                                1,953         3,080
    Income taxes payable                                    23           570
    Due to related parties                               1,095         1,223
    Current maturities of long-term debt                18,667        18,666
                                                  ---------------------------

                                                        49,526        54,790

    Long-term debt                                      43,392        44,723
    Future income taxes                                    507         1,207
    Other long-term liabilities                          1,439         1,253
                                                  ---------------------------

                                                        94,864       101,973

    Partnership equity                                  45,214        50,763
                                                  ---------------------------

                                                       140,078       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
    -------------------------------------------------------------------------
    (thousands of dollars)

                                   Three       Three
                                  months      months        Year        Year
                                   ended       ended       ended       ended
                                December    December    December    December
                                31, 2009    31, 2008    31, 2009    31, 2008
                              ----------------------- -----------------------
                                       $           $           $           $

    Revenue
    Transportation revenue        59,959      66,784     241,849     273,685
    Fuel surcharges                4,922      11,278      18,025      52,985
                              ----------------------- -----------------------
                                  64,881      78,062     259,874     326,670
                              ----------------------- -----------------------

    Operating costs and
     expenses
    Direct                        46,873      57,761     188,741     240,778
    Selling and
     administrative                9,733      10,535      41,006      45,333
    Depreciation and
     amortization                  5,537       5,442      21,018      21,880
    Loss (gain) on sale of
     assets,  net                     26         (56)       (234)       (774)
                              ----------------------- -----------------------

    Operating expense             62,169      73,682     250,531     307,217
                              ----------------------- -----------------------

    Operating earnings             2,712       4,380       9,343      19,453

    Interest on long-term
     debt                            710       1,096       3,583       4,783
    Other interest expense           483          72         537         114
                              ----------------------- -----------------------
                                   1,193       1,168       4,120       4,897
                              ----------------------- -----------------------

    Earnings before income
     taxes                         1,519       3,212       5,223      14,556

    Income tax expense
     (recovery)
    Current                           80         239         447         820
    Future                           149          12        (672)          -
                              ----------------------- -----------------------
                                     229         251        (225)        820
                              ----------------------- -----------------------

    Net earnings                   1,290       2,961       5,448      13,736

    Other comprehensive
     (loss) income - net
     change in cumulative
     translation adjustments         (32)        439        (450)        533
                              ----------------------- -----------------------

    Comprehensive income           1,258       3,400       4,998      14,269

    Opening partnership
     equity                       44,675      51,921      50,763      55,186
    Distributions declared          (719)     (4,558)    (10,547)    (18,692)
                              ----------------------- -----------------------

    Closing partnership
     equity                       45,214      50,763      45,214      50,763
                              ----------------------- -----------------------
                              ----------------------- -----------------------

    Accumulated other
     comprehensive (losses)
     income (included in
     partnership equity)
    -------------------------
    Opening balance                 (154)       (175)        264        (269)
    Other comprehensive
     (loss) income                   (32)        439        (450)        533
                              ----------------------- -----------------------

    Closing balance                 (186)        264        (186)        264
                              ----------------------- -----------------------
                              ----------------------- -----------------------



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

                                   Three       Three
                                  months      months        Year        Year
                                   ended       ended       ended       ended
                                December    December    December    December
                                31, 2009    31, 2008    31, 2009    31, 2008
                              ----------------------- -----------------------
                                       $           $           $           $

    Cash provided (used)

    Operations
    Net earnings                   1,290       2,961       5,448      13,736
    Add back (deduct) items
     not affecting cash:
      Depreciation and
       amortization                5,537       5,442      21,018      21,880
      Loss (gain) on sale
       of assets, net                 26         (56)       (234)       (774)
      Future income tax
       expense (recovery)            149          12        (672)          -
      Other non-cash items           (32)       (228)        108        (585)
                              ----------------------- -----------------------

    Cash provided by
     operations                    6,970       8,131      25,668      34,257

    Net change in non-cash
     working capital              (2,248)      3,661       1,039       2,397
                              ----------------------- -----------------------

    Net cash provided by
     operations                    4,722      11,792      26,707      36,654
                              ----------------------- -----------------------

    Investments
    Purchases of capital
     assets                       (4,473)     (3,038)    (16,321)    (15,912)
    Proceeds on sale of
     capital assets                  229         898       1,660       3,235
                              ----------------------- -----------------------
      Net capital
       expenditures
       delivered                  (4,244)     (2,140)    (14,661)    (12,677)
    Increase (decrease) in
     accounts payable and
     accrued liabilities
     relating to investing
     activities                      780         (36)        778        (563)
    Decrease in accounts
     receivable relating
     to investing activities           -          (1)          5           9
                              ----------------------- -----------------------
      Net cash expended on
       capital expenditures       (3,464)     (2,177)    (13,878)    (13,231)
                              ----------------------- -----------------------
    Acquisition of
     transportation
     businesses - net of cash          -      (3,218)          -      (3,218)
    Other                            (29)        154        (516)        228
                              ----------------------- -----------------------

    Cash used in investing
     activities                   (3,493)     (5,241)    (14,394)    (16,221)
                              ----------------------- -----------------------

    Financing
    Increase in long-term debt       593      (1,386)     17,337      21,052
    Repayments of long-term
     debt                              -      (1,824)    (18,667)    (20,491)
    Distributions paid            (2,834)     (4,858)    (11,674)    (20,375)
                              ----------------------- -----------------------

    Cash used in financing
     activities                   (2,241)     (8,068)    (13,004)    (19,814)
                              ----------------------- -----------------------

    (Decrease) increase in
     cash                         (1,012)     (1,517)       (691)        619
    Cash (bank indebtedness),
     beginning of period             702       1,898         381        (238)
                              ----------------------- -----------------------

    (Bank indebtedness) cash,
     end of period                  (310)        381        (310)        381
                              ----------------------- -----------------------
                              ----------------------- -----------------------

    Supplemental information
    Income taxes paid                 34          93         994         375
    Interest paid                    579         461       4,422       5,349

    (Bank indebtedness) cash
     consists of the following:
      Cash                                                   406       2,350
      Bank indebtedness                                     (716)     (1,969)
                                                      -----------------------
                                                            (310)        381
                                                      -----------------------
                                                      -----------------------
    

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.

SOURCE Trimac Transportation Ltd.

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

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Trimac Transportation Ltd.

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