Trimac Announces Improved 2014 Results

CALGARY, March 6, 2015 /CNW/ - Trimac Transportation Ltd. (TSX: TMA) ("Trimac" or the "Company"), Canada's leader in bulk trucking, announces the release of its financial results for the year ("current year") and three months ended December 31, 2014 ("current quarter").

Highlights for the fourth quarter:

  • Revenue before fuel surcharges increased 5.3 percent, with all segments experiencing improvements.  Higher volumes with existing customers, new business awards, some campaign work and revenue earned in new shop and transload locations all contributed to the revenue improvements.
  • EBITDA increased 10.2 percent which was mainly attributable to improved operating efficiencies from our heightened focus on operational excellence where we are streamlining administrative costs and improving asset utilization.  Operating expenses as a percentage of revenue before fuel surcharges improved 60 basis points.  
  • Earnings before income tax expense increased 29.4 percent, which was primarily due to higher revenue and increased operating efficiencies.
  • Adjusted earnings per share for the quarter increased $0.07 to $0.18.
  • 2 of our professional drivers have been appointed as Road Knights for the Provincial Trucking Associations for Ontario and Alberta for the 2015/2016 year

Selected Financial Highlights













Three months ended December 31

Year  ended December 31

(in millions of dollars, except per share data)

2014

2013

Variance

2014

2013

Variance

Financial Results










Revenue:











Bulk Trucking revenue before fuel surcharges

90.3

88.7

1.8%

353.4

344.2

2.7%


National Tank Services third party revenue

5.4

3.5

54.3%

18.7

14.1

32.6%


Bulk Plus Logistics



6.5

4.9

32.7%

22.6

20.3

11.3%






102.2

97.1

5.3%

394.7

378.6

4.3%


EBITDA











Bulk Trucking



12.1

11.1

9.0%

43.1

40.9

5.4%


National Tank Services



0.8

0.8

0.0%

3.6

4.1

-12.2%


Bulk Plus Logistics



1.2

0.9

33.3%

4.1

4.0

2.5%






14.1

12.8

10.2%

50.8

49.0

3.7%


Earnings before income tax expense:









Bulk Trucking



5.1

3.9

30.8%

15.9

12.3

29.3%


National Tank Services



0.4

0.4

0.0%

1.6

2.3

-30.4%


Bulk Plus Logistics



1.1

0.8

37.5%

3.6

3.4

5.9%






6.6

5.1

29.4%

21.1

18.0

17.2%


Share Information: 










Cash dividends declared per share


0.07

0.07


0.28

0.28



Earnings per share (basic)


0.18

0.13


0.58

0.52



Earnings per share adjusted


0.18

0.11


0.59

0.49














Other Information:










Net property, plant and equipment additions

3.9

4.1


22.2

31.4


 

Outlook
Trimac will continue its relentless pursuit to be a low cost service provider by focusing on reducing its operating expenses and improving asset utilization.  Trimac hauls a wide variety of bulk materials for a broad customer base which spans numerous industries across Canada and into the United States.  A weakening Canadian dollar may benefit Trimac as exports increase to the U.S. to meet rising demand in some of the industries we serve.  Because of Trimac's diversity, it is not tied directly to the oil and gas sector however, the soft oil prices do create uncertainty and potential market declines.  Trimac's focus on operational excellence will ensure we react quickly and effectively to the changing dynamics in our markets. 

Declaration of Quarterly Dividend
The Board of Directors today declared a dividend of $0.07 per share on the Class A shares, payable on April 15, 2015 to shareholders of record at the close of business on March 31, 2015.  This dividend is designated as an eligible dividend pursuant to subsection 89(14) of the Income Tax Act (Canada) and any provincial legislation pertaining to eligible dividends.    

Forward-Looking Statements
Certain information included in this news release constitutes "forward-looking statements".  Trimac cautions that, by their nature, these forward-looking statements are based on suppositions, risks, and uncertainties as well as on management's best possible evaluation of future events. Trimac cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Such forward-looking statements are not guarantees of future performance and the actual results or performance of Trimac or the transportation industry may be materially different from the outlook or any future results or performance implied by such statements.  Please see "Forward-Looking Statements" in Trimac's MD&A for the year and three months ended December 31, 2014 for a discussion of the material factors that could cause actual results to differ from the forward-looking information contained herein and the material factors and assumptions that were applied in preparing such forward-looking information.

Non-GAAP Financial Measure
EBITDA and adjusted earnings per share are financial measures not prescribed by IFRS and may not be comparable to similar measures presented by other issuers.  Management considers these non-GAAP measures useful in evaluating the performance of Trimac's operations.  These measures should be considered in addition to, not a substitute for, the financial performance measures prepared in accordance with IFRS.

Profile
Trimac is Canada's largest provider of bulk trucking services with operations from coast to coast.  In addition, through its National Tank Services division, Trimac performs repairs, maintenance, trailer fabrication and tank-trailer cleaning services for both the Trimac fleet and for third party commercial customers. Trimac also provides third party transportation logistics services in Canada and the United States through its wholly owned subsidiary Bulk Plus Logistics.  Shares of Trimac Transportation Ltd. are traded on the Toronto Stock Exchange under the symbol TMA.

For more detailed information, please visit our website at www.trimac.com or SEDAR at www.sedar.com and review our MD&A and the audited consolidated financial statements for the Company. 

You are invited to join us on a conference call at 10:30 a.m. Eastern Time on Monday, March 9th, 2015.  To join the call, please dial 1-866-696-5910 and enter pass code 8375847 at least 10 minutes prior to the start time of the call.  An audio playback of the call will be available starting Tuesday, March 10th, 2015 on our website at http://www.trimac.com/page/eventscalendar.

SOURCE Trimac Transportation Ltd.

For further information: Edward V. Malysa, President & Chief Operating Officer, Trimac Transportation Ltd, Telephone: 403-298-5100, Facsimile: 403-298-5146; Scott D. Calver, Vice President & Chief Financial Officer, Trimac Transportation Ltd., Telephone: 403-298-5100, Facsimile: 403-298-5146

RELATED LINKS
http://www.trimac.com

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Trimac Transportation Ltd.

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