Trimac Announces Improved Third Quarter Results



    CALGARY, Nov. 8 /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 third quarter ended September 30, 2007.


    
                                      Three months            Nine months
                                  ended September 30,     ended September 30,
    Partnership                     2007        2006        2007        2006
                             ------------------------------------------------
                              (millions of dollars, except per unit amounts
                                          and numbers of units)

    Revenues                        88.0        83.6       251.3       243.6
    EBITDA(1)                       12.8        11.7        31.6        31.8
    Net earnings                     5.7         5.9        15.1        13.9


                                      Three months            Nine months
                                  ended September 30,    ended September 30,
     The Fund                       2007        2006        2007        2006
                             ------------------------------------------------

    Distributable cash per
     unit(1)(2)                  $0.4186     $0.3884     $0.8540     $0.8048
    Distributions declared
     per unit                    $0.2313     $0.2313     $0.6939     $0.6855
    Basic and diluted
     earnings per unit           $0.1858     $0.1460     $0.4114     $0.3020
    Weighted average number
     of units used in
     computing basic
     earnings per unit        12,530,408  12,528,515  12,530,408  12,528,515
    Weighted average number
     of units outstanding
     used in computing
     diluted earnings per
     unit                     23,761,472  23,138,033  23,761,472  23,138,033

    (1) EBITDA and distributable cash 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 as 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 achieved strong results for the third quarter with a 5 percent
increase in revenue to $88.0 million and a 9 percent improvement in EBITDA to
$12.8 million. Strong revenue growth in the British Columbia and Prairie
Provinces operations, and a short-term contract positively influenced revenues
in the quarter. These improved revenues were partially offset by reduced
volumes in the woodchip and central Canadian operations.

    Divisional highlights in the third quarter were as follows:

      -   Western division experienced strong revenue growth in
          British Columbia and the Prairie Provinces, which grew by
          16.2 percent. Partially offsetting this growth was a 26.0 percent
          decline in woodchip revenue. In the current quarter total revenues
          were $52.6 million, an increase of approximately 9 percent over the
          prior year's quarter.

      -   Eastern division experienced a modest decline in revenue to
          $28.9 million in the quarter that was predominantly the result of
          business losses due to highly competitive market conditions and
          lower revenue with existing customers in central Canada.

      -   Bulk Plus Logistics (BPL) experienced strong revenue growth of
          approximately 55 percent to $6.5 million, as a result of increased
          volumes from a short-term contract in the freight brokerage
          business.
    

    On November 7, 2007 the Partnership successfully concluded the
acquisition of the petroleum hauling business and related assets of
Fergusson Fuels Ltd. based in eastern Ontario. The business has annual
revenues of approximately $5.6 million with a fleet of 17 tractors and
trailers.
    In commenting on the results for the third quarter, Terry Owen, President
& CEO of Trimac, said:
    "In the quarter, the Partnership recorded improved profitability in the
western division and BPL, while the eastern division's profitability
deteriorated due to difficult economic conditions in central Canada. Overall,
our strategy of diversification by product, customer, industry and geography
enabled us to deliver improvements in revenue and EBITDA over the same time
period in the prior year.
    Operationally, our western division profitability benefited from
increased petroleum revenue; the second quarter 2007 acquisition of Ken Angeli
Trucking Ltd. (KAT) and the purchase of certain assets of Logistics Express
Inc. (Logex); and a short-term contract. Partially offsetting the improved
profitability was continued erosion in the division's woodchip revenue. As we
have indicated in previous quarters, the forestry industry continues to
struggle with the strengthening Canadian dollar and other adverse industry
conditions, resulting in further mill closures in Ontario and B.C. and weaker
demand for transportation throughout our woodchip operations.
    The eastern division's profitability was negatively impacted by business
losses and lower volumes with existing customers in the petroleum, cement, and
chemical product lines; general economic weakness in central Canada; and a
strengthening Canadian dollar. Our logistics business experienced improved
profitability due to increases in freight management revenue as a result of a
short-term contract and a product spill that occurred in the third quarter of
2006."
    In commenting on the future activities and outlook for the business,
Terry Owen noted:
    "As management looks ahead to the remainder of 2007, we expect a
continuation of favourable economic conditions in B.C. and the Prairie
Provinces, although there are some recent signs which would suggest a lower
rate of growth in the near term in the otherwise robust Alberta economy. Our
woodchips operation is expected to remain weak due to the ongoing challenges
in the Canadian forestry sector. In the eastern division, a strong Canadian
dollar, chemical and auto manufacturing plant cutbacks and closures in central
Canada, and a weak housing market in the U.S. will continue to create a
competitive pricing environment. Our expansive geographic footprint, diverse
product line capabilities, and access to available capacity within regions
with lower economic activity allow Trimac to capitalize on short-term contract
opportunities from capacity within our trucking and logistics brokerage
business. Trimac's management team has the track record and experience needed
to succeed in varying economic conditions and management is confident that our
strategy of diversification within the bulk trucking sector will continue to
provide the framework for our success in the future."


    
                            Financial Highlights

                                      Three months            Nine months
                                  ended September 30,     ended September 30,
                             ------------------------------------------------
    (millions of dollars)           2007        2006        2007        2006
                             ------------------------------------------------

    Revenues
    Western                         52.6        48.4       145.2       137.8
    Eastern                         28.9        31.0        89.0        92.6
                             ------------------------------------------------
    Canadian trucking               81.5        79.4       234.2       230.4
    Bulk Plus Logistics              6.5         4.2        17.1        13.2
                             ------------------------------------------------
                                    88.0        83.6       251.3       243.6
    Direct costs                    63.3        60.6       184.8       178.7
    Selling and
     administrative                 11.9        11.3        34.9        33.1
                             ------------------------------------------------

    EBITDA(1)                       12.8        11.7        31.6        31.8
    Depreciation net of gains
     on disposal of capital
     assets(2)                       5.8         4.5        14.3        14.6
                             ------------------------------------------------

    Operating earnings               7.0         7.2        17.3        17.2
    Interest expense (net)           1.1         1.0         3.6         3.0
                             ------------------------------------------------

    Earnings before taxes            5.9         6.2        13.7        14.2
    Income tax expense
     (recovery)(3)                   0.2         0.3        (1.4)        0.3
                             ------------------------------------------------

    Net earnings                     5.7         5.9        15.1        13.9
                             ------------------------------------------------
                             ------------------------------------------------

    As a percentage of revenue
    --------------------------
    Direct costs                   71.9%       72.5%       73.5%       73.4%
    Selling and
     administrative                13.5%       13.5%       13.9%       13.6%
    EBITDA(1)                      14.4%       14.0%       12.6%       13.1%
    Depreciation(2)                 6.6%        5.4%        5.7%        6.0%
    Operating earnings              8.0%        8.6%        6.9%        7.1%


                                   As at       As at
                               September    December
    (millions of dollars)       30, 2007    31, 2006
                             ------------------------

    Total assets                   161.0       157.9
    Total long-term
     liabilities(4)                 39.9        61.6

    (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 measure of cash available for
        distribution before debt service expense, capital expenditures, and
        income taxes which indicates the ability of the Partnership to meet
        its capital and financing commitments.
    (2) Includes a $2.9 million gain on the disposal of a non-strategic
        facility during the second quarter of 2007. Results for the third
        quarter of 2006 include a $0.9 million gain on the disposal of excess
        land.
    (3) Includes a $1.9 million reversal of a previously recorded future tax
        liability due to a corporate reorganization in the 2nd quarter of
        2007.
    (4) Decrease from December 2006 due to a reclassification of
        $18.7 million of long-term debt to a current liability and the
        reversal of a previously recorded future tax liability.

    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            Nine months
     certain percentages          ended September 30,     ended September 30,
     and numbers of units)          2007        2006        2007        2006
    -------------------------------------------------------------------------

    Net cash provided by
     operations                     15.0        11.0        29.4        26.9
    Net change in non-cash
     working capital(1)             (3.6)       (0.2)       (1.8)        1.9
                              ----------------------- -----------------------
    Cash provided by
     operations                     11.4        10.8        27.6        28.8
    Less adjustment for:
      net sustaining capital
       expenditures (net of
       proceeds)(2)(3)              (1.0)       (1.2)       (1.4)       (8.7)
      provision for
       sustaining capital
       commitments(4)                0.1           -        (3.9)          -
      provision for long-term
       unfunded contractual
       operational
       obligations(5)               (0.1)          -        (0.3)          -
                              ----------------------- -----------------------
    Total estimated cash
     available for
     distribution (before
     public expenses)               10.4         9.6        22.0        20.1
    Percentage of available
     cash distributable to
     unitholders(6)                  53%         54%         53%         54%
                              ----------------------- -----------------------
    Cash available for
     distribution to
     unitholders (before
     public expenses)                5.4         5.2        11.6        10.9
    Public expenses(7)              (0.2)       (0.3)       (0.9)       (0.8)
                              ----------------------- -----------------------
    Distributable cash from
     operations(2)(8)                5.2         4.9        10.7        10.1
    Distributions declared
     and payable                     2.9         2.9         8.7         8.6

    Distributable cash per
     unit(2)(8)                   0.4186      0.3884      0.8540      0.8048
    Distributions declared per
     unit                         0.2313      0.2313      0.6939      0.6855
    Payout ratio(2)(8)             55.3%       59.6%       81.2%       85.2%

    Weighted average number
     of units outstanding     12,530,408  12,528,515  12,530,408  12,528,515

    Net capital expenditures
      Sustaining capital
       expenditures(2)               1.4         2.8         8.9        12.2
      Proceeds on disposal of
       capital assets(4)            (0.4)       (1.6)       (7.5)       (3.5)
                              ----------------------- -----------------------
      Net sustaining capital
       expenditures(2)(3)            1.0         1.2         1.4         8.7
      Growth capital
       expenditures(2)(9)            1.6         7.4         3.5        12.7
                              ----------------------- -----------------------
                                     2.6         8.6         4.9        21.4
                              ----------------------- -----------------------
                              ----------------------- -----------------------

    (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.
    (4) Represents the completion of a reversal of a $1.1 million reserve
        established in the fourth quarter of 2006 for a facility capital
        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.
    (5) Represents a provision for cash requirements relating to a long-term
        incentive plan and an executive pension liability.
    (6) Percentage is equal to the weighted average number of units
        outstanding of 12,530,408 divided by fully diluted units of
        23,761,472.
    (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, cash
        and existing lines of credit.
    

    Distributable cash from operations was $5.2 million in the three-month
period ended September 30, 2007 (the "current period"), an increase of
$0.3 million over the three-month period ended September 30, 2006 (the "prior
period"). This was due to an increase in cash from operations and to a lesser
extent, a decrease in net sustaining capital expenditures, and reduced public
expenses. In the nine-month period ended September 30, 2007 distributable cash
from operations was $10.7 million, an increase of $0.6 million compared to the
same period in 2006. The increase was due primarily to reduced net sustaining
capital expenditures, which were partially offset by decreased cash provided
by operations, a provision in 2007 for long-term incentive and pension
obligations, and increased public expenses.
    Distributions in the current period and on a year-to-date basis were
funded from 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 to 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
non-cash working capital, and reduced by net 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

    Trimac's total revenues in the current period were $88.0 million, an
increase of $4.4 million or 5.3 percent from $83.6 million recorded in the
prior period. EBITDA grew to $12.8 million in the current period as compared
to $11.7 million in the prior period, a gain of $1.1 million or 9.4 percent.
On a year-to-date basis, revenue increased by $7.7 million or 3.2 percent to
$251.3 million compared to $243.6 million in the prior nine-month period.
EBITDA for the current nine-month period was $31.6 million, slightly less than
the prior year's nine-month period.

    Bulk Trucking Operations

    The western division generated $52.6 million in revenue in the current
period, an increase of $4.2 million or 8.7 percent from $48.4 million recorded
in the prior period. The division achieved strong revenue growth of
approximately 16.2 percent in its British Columbia and Prairie Province
operations. Driving this revenue growth was increased petroleum revenue due to
contracts secured in 2006; the acquisition of KAT on April 30, 2007; the
June 1, 2007 acquisition of certain assets of Logex; and a short-term contract
that contributed approximately $1.0 million in the current quarter. Partially
offsetting the revenue gains was a 26.0 percent reduction in revenues from the
division's woodchip operations. 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. Higher revenues and improved operating costs as a
percentage of revenue resulted in EBITDA of $9.2 in million in the current
period, a $0.9 million or 10.8 percent increase over the prior period.
    On a year-to-date basis, the western division's revenue increased to
$145.2 million from $137.8 million in 2006, an increase of $7.4 million or
5.4 percent. Operations in British Columbia and the Prairie Provinces
experienced year-over-year growth of 14.8 percent. This revenue growth was
partially offset by a 28.1 percent decline in the woodchip product line. The
division generated EBITDA of $22.0 million, a $1.1 million increase from the
prior year's nine-month period. The increase was the result of higher revenue
and improved operating costs as a percentage of revenue.
    The eastern division's revenue decreased from $31.0 million in the prior
period to $28.9 million in the current period, a decrease of $2.1 million or
6.8 percent. Revenue gains from the acquisition of Jeff Brett Group of
Companies (JBE) on October 1, 2006 and new business awards in the compressed
gas product lines were more than offset by reduced revenue in the petroleum,
chemical, cement, and edible product lines that resulted from business losses
and lower volumes as a result of weak economic conditions in central Canada.
EBITDA decreased by $0.9 million to $2.9 million in the current period. The
decrease was a result of lower revenue; increased driver wages, repairs,
accident costs; a strengthening Canadian dollar; and higher operating costs
associated with current revenues due to competitive renewals and business
losses.
    For the nine-month period ended September 30, 2007, the eastern
division's revenue decreased to $89.0 million, compared to $92.6 million in
the prior year, a decrease of $3.6 million or 3.9 percent. Revenue gains from
the acquisition of JBE were more than offset by business losses and reduced
volumes with existing customers in the cement, dry bulk, plastics, and liquid
chemical product lines. EBITDA was reduced to $8.1 million as compared to
$9.2 million in the prior nine-month period, a decrease of $1.1 million or
12.0 percent below the prior year. Lower revenue; severance costs associated
with both business losses and the closure and sale of a non-strategic
facility; a strengthening Canadian dollar; and downward customer rate pressure
due to weak economic conditions in central Canada were the main factors
contributing to the decrease in EBITDA.

    Logistics Operations

    BPL's current period revenue was $6.5 million, an increase of
$2.3 million or 54.8 percent over the prior period. BPL's Canadian freight
brokerage revenue gains more than offset reduced transload revenue. Increased
freight brokerage revenue was primarily due to a short-term contract that
contributed $2.1 million in the quarter. U.S. freight brokerage and
third-party logistics management experienced a slight increase in revenue when
compared to the prior period. In the current period, BPL recorded EBITDA of
$1.0 million, an increase of $1.0 million over the prior period. The increase
in EBITDA was primarily due to increased revenue and the elimination of
clean-up costs of $0.6 million associated with a product spill at a customer
transload facility in Canada that occurred in the prior period.
    On a year-to-date basis, BPL's revenue was $17.1 million compared to
$13.2 million in the prior year, an increase of $3.9 million or 29.6 percent.
Increased volumes were achieved in freight brokerage, partially offset by
lower transload revenue and the translation impact from U.S. dollars to
Canadian dollars for the U.S. operations due to the strengthening of the
Canadian dollar. BPL's EBITDA for the first nine months of 2007 was
$1.9 million, an increase of $0.4 million or 26.6 percent from the same period
last year. The increased EBITDA was primarily due to increased revenue and the
elimination of aforementioned clean-up costs incurred in the prior year.

    Capital Expenditures

    Net capital expenditures of the Partnership were $2.6 million in the
current period compared to $8.6 million in the prior period. The $6.0 million
reduction in net capital expenditures from the prior period was made up of a
$1.4 million decrease in sustaining capital and $5.8 million less growth
capital, partially offset by a decrease of $1.2 million in proceeds on
disposal of assets. Included in prior period disposal proceeds was
$1.5 million relating to the sale of excess land in Edmonton, Alberta. The
decrease in sustaining capital expenditures over the prior period was
primarily the result of the purchase of substantially all of the Partnership's
tractor requirements in the 1st quarter of 2007 and the pending delivery of
additional trailers expected in the 4th quarter of 2007. Trailer purchases and
the completion of an expansion of the Edmonton facility accounted for the
majority of the $1.4 million of gross sustaining capital expenditures in the
current period. Growth capital spending decreased by $5.8 million to
$1.6 million in the current period. Trailer purchases accounted for the
majority of growth capital expenditures in the current period. The high level
of growth capital in the prior period was due to the purchase of tractors and
trailers required for new business secured during 2006.
    For the nine-month period ended September 30, 2007, net capital
expenditures totalled $4.9 million compared to $21.4 million for the prior
year. The $16.5 million difference in net capital expenditures from the prior
year was made up of an increase of $4.0 million in proceeds on disposal of
assets, a $3.3 million decrease in gross sustaining capital, and $9.2 million
less growth capital. During the second quarter of 2007 the disposal of a
non-strategic facility in Oakville, Ontario resulted in $5.9 million of
proceeds while the aforementioned sale of excess land in Edmonton realized
$1.5 million during the third quarter of 2006. Sustaining capital purchases
decreased when compared to the prior year due to a reduction in the number of
power units purchased. The $9.2 million decrease in current year growth
capital spending was due to tractor and trailer purchases in the prior year
for new business secured. Growth capital expenditures 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. Estimated net ongoing
sustaining capital expenditure requirements for 2007, after including
adjustment for 2006 & 2007 reserves, are expected to be in the range of
$9.0 million to $10.0 million.

    
                                                Low Estimate   High Estimate
                                                -------------  --------------
    Gross sustaining capital YTD Sept./07                8.9             8.9
    Q4 2007 Sustaining purchases                         3.7             4.7
                                                -------------  --------------
                                                        12.6            13.6

    2007 Normalized proceeds(1)                         (2.5)           (2.5)
    2006 Facility reserve                               (1.1)           (1.1)
                                                -------------  --------------
    Net sustaining capital                               9.0            10.0
                                                -------------  --------------
                                                -------------  --------------

    (1) Proceeds exclude $5.0 million reserved for replacement facilities.
    


    Sustaining capital purchases are funded from the Partnership's net cash
provided by operations in the year, cash available from distributions on
non-cash exchangeable shares, and thereafter, to the extent required,
available credit facilities.

    Fuel Costs

    Fuel costs fluctuated during the current period with average daily posted
rack prices for diesel fuel at refineries across Canada ranging from $0.79 per
litre to $0.86 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 10.9 percent of base
trucking revenue during the current period and 10.5 percent on a year-to-date
basis.

    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 from those prevailing in the third 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 2007; 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 experience greater than anticipated accident costs; 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
        it 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;
    -   Accident Costs - Financial results may be impacted by large accident
        claims.
    -   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 or to refinance existing
        debt.
    

    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 Friday, November 9, 2007. 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 12:30 p.m. Eastern
Time on Friday, November 9, 2007 until midnight November 16, 2007. To hear the
playback dial 1-800-695-1018 or for international participants, please dial
++1-402-220-1753 and give the conference ID number: 22421887.


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

                                                       As at           As at
                                                September 30,    December 31,
                                                        2007            2006
                                              -------------------------------
                                                           $               $
    Assets

    Current assets
    Cash                                                 186             223
    Interest receivable                                  230             237
    Distributions receivable                             842             949
    Prepaid expenses                                      86              75
                                              -------------------------------

                                                       1,344           1,484

    Investment in Trimac Transportation
     Services Limited Partnership                     74,910          78,431
    Other investment                                     141               -
    Note receivable from Trimac
     Transportation Services Inc.                     35,000          35,000
                                              -------------------------------

                                                     111,395         114,915
                                              -------------------------------
                                              -------------------------------

    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities             123             236
    Due to associated companies and
     partnerships                                        418             310
    Distributions payable                                967             966
                                              -------------------------------

                                                       1,508           1,512

    Unitholders' equity                              109,887         113,403
                                              -------------------------------

                                                     111,395         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
    (unaudited)
    -------------------------------------------------------------------------
    (thousands of dollars, except for numbers of units)

                                   Three       Three        Nine        Nine
                                  months      months      months      months
                                   ended       ended       ended       ended
                               September   September   September   September
                                30, 2007    30, 2006    30, 2007    30, 2006
                              ----------------------- -----------------------
                                       $           $           $           $
    Share of earnings of
     Trimac Transportation
     Services Limited
     Partnership(1)                1,813       1,468       3,902       2,491
    Interest income                  707         706       2,099       2,096
    Administrative costs            (192)       (345)       (846)       (804)
                              ----------------------- -----------------------

    Net earnings                   2,328       1,829       5,155       3,783

    Other comprehensive loss -
     share of Partnership
     other comprehensive loss        (35)          -         (83)          -
                              ----------------------- -----------------------

    Comprehensive income           2,293       1,829       5,072       3,783

    Opening unitholders'
     equity                      110,352     116,386     113,403     120,122
    Adoption of new
     accounting standard               -           -         (35)          -
    Issue of additional units        141           -         141           -
    Distributions                 (2,899)     (2,898)     (8,694)     (8,588)
                              ----------------------- -----------------------

    Closing unitholders'
     equity                      109,887     115,317     109,887     115,317
                              ----------------------- -----------------------
                              ----------------------- -----------------------

    Basic and diluted
     earnings per unit(2)       $ 0.1858    $ 0.1460    $ 0.4114    $ 0.3020

    Weighted average number
     of units outstanding
     used in computing basic
     earnings per unit        12,530,408  12,528,515  12,530,408  12,528,515

    Weighted average number
     of units outstanding
     used in computing
     diluted earnings per
     unit(2)                  23,761,472  23,138,033  23,761,472  23,138,033


    (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       Three        Nine        Nine
                                  months      months      months      months
                                   ended       ended       ended       ended
                                 Sept 30,    Sept 30,    Sept 30,    Sept 30,
                                    2007        2006        2007        2006
                               ----------------------------------------------
                                       $           $           $           $
    Net earnings of the
     Partnership                   5,724       5,886      15,154      13,845

      Add: Interest expense
       on TTSI debt included
       in Partnership earnings     1,030       1,030       3,056       3,056
                               ----------------------------------------------

    Adjusted Partnership
     earnings                      6,754       6,916      18,210      16,901
      Less: Purchase price
       allocation adjustments:
        Increase in
         amortization of
         capital assets and
         loss on disposal of
         capital assets             (591)       (532)     (4,124)     (1,598)
        Amortization of
         intangible assets        (1,011)     (2,393)     (3,029)     (8,562)
                                ---------------------------------------------
    Partnership earnings after
     purchase price
     adjustments                   5,152       3,991      11,057       6,741
                                ---------------------------------------------
    Share of Partnership
     earnings                      1,813       1,468       3,902       2,491
                                ---------------------------------------------
                                ---------------------------------------------

    (2) Pursuant to an investor liquidity agreement, holders of TTSI
        Exchangeable Shares have the right to effectively liquidate their
        9,896,602 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 liquidation for the
        period ended September 30, 2007 has not been disclosed, as it is
        anti-dilutive.


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

                                   Three       Three        Nine        Nine
                                  months      months      months      months
                                   ended       ended       ended       ended
                               September   September   September   September
                                30, 2007    30, 2006    30, 2007    30, 2006
                              ----------------------- -----------------------
                                       $           $           $           $

    Cash provided (used)

    Operations
    Net earnings                   2,328       1,829     5,155         3,783
    (Deduct) add items not
     affecting cash:
      Share of earnings from
       Trimac Transportation
       Services Limited
       Partnership                (1,813)     (1,468)   (3,902)       (2,491)
      Distributions from Trimac
       Transportation Services
       Limited Partnership         1,813       1,468     3,902         2,491
                              ----------------------- -----------------------

    Cash provided by
     operations                    2,328       1,829     5,155         3,783
    Net change in non-cash
     working capital                  81         158        (9)          298
                              ----------------------- -----------------------

    Net cash provided by
     operations                    2,409       1,987     5,146         4,081
                              ----------------------- -----------------------

    Investments
    Distributions from Trimac
     Transportation Services
     Limited Partnership             604         917     3,510         4,411
                              ----------------------- -----------------------

    Cash provided by
     investing activities            604         917     3,510         4,411
                              ----------------------- -----------------------

    Financing
    Distributions paid            (2,898)     (2,899)   (8,693)       (8,536)
                              ----------------------- -----------------------

    Cash used in financing
     activities                   (2,898)     (2,899)   (8,693)       (8,536)
                              ----------------------- -----------------------

    Increase (decrease) in
     cash                            115           5       (37)          (44)
    Cash, beginning of period         71          88       223           137
                              ----------------------- -----------------------

    Cash, end of period              186          93       186            93
                              ----------------------- -----------------------
                              ----------------------- -----------------------

    Supplemental information
    Cash received from
     interest                        707         706     2,106         2,104


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



    Trimac Transportation Services Limited Partnership
    Consolidated Balance Sheet
    (unaudited)
    -------------------------------------------------------------------------
    (thousands of dollars)
                                                       As at           As at
                                                September 30,    December 31,
                                                        2007            2006
                                                                  (restated-
                                                                     note 11)
                                              -------------------------------
                                                           $               $

    Assets

    Current assets
    Cash and term deposits                             3,720               -
    Accounts receivable                               36,110          32,671
    Materials and supplies                             1,984           1,823
    Due from related parties                           2,827           1,399
    Prepaid expenses                                  10,155           9,978
                                               ------------------------------
                                                      54,796          45,871

    Capital assets                                    98,063         105,163
    Intangible assets                                  1,842           1,093
    Goodwill                                           4,854           4,471
    Other                                              1,469           1,287
                                               ------------------------------

                                                     161,024         157,885
                                               ------------------------------
                                               ------------------------------

    Liabilities

    Current liabilities
    Bank indebtedness                                      -             699
    Accounts payable and accrued liabilities          34,468          29,681
    Distributions payable                              4,729           5,099
    Income taxes payable                                 351             540
    Due to related parties                             5,001           3,138
    Current maturities of long-term debt              18,666               -
                                               ------------------------------

                                                      63,215          39,157

    Long-term debt                                    38,000          58,260
    Future income taxes                                  185           1,830
    Other long-term liabilities                        1,776           1,574
                                               ------------------------------

                                                     103,176         100,821

    Partnership equity                                57,848          57,064
                                               ------------------------------
                                                     161,024         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 Equity
    (unaudited)
    -------------------------------------------------------------------------
    (thousands of dollars)



                                   Three       Three        Nine        Nine
                                  months      months      months      months
                                   ended       ended       ended       ended
                               September   September   September   September
                                30, 2007    30, 2006    30, 2007    30, 2006
                                          (restated-              (restated-
                                             note 11)                note 11)
                              ----------------------- -----------------------
                                       $           $           $           $


    Transportation revenue        78,467      74,057     224,851     218,452
    Fuel surcharges                9,554       9,565      26,492      25,195
                              ----------------------- -----------------------
    Total revenues                88,021      83,622     251,343     243,647
                              ----------------------- -----------------------

    Operating costs and
     expenses
    Direct                        63,238      60,586     184,831     178,685
    Selling and administrative    11,940      11,280      34,928      33,145
    Depreciation and
     amortization                  5,759       5,470      17,550      16,033
    Loss (gain) on sale of
     assets (net)                     17        (935)     (3,313)     (1,427)
                              ----------------------- -----------------------

    Operating expense             80,954      76,401     233,996       6,436
                              ----------------------- -----------------------

    Operating earnings             7,067       7,221      17,347      17,211

    Interest on long-term debt     1,125       1,045       3,530       3,168
    Other interest expense
     (income)                          2         (33)         34        (174)
                              ----------------------- -----------------------
                                   1,127       1,012       3,564       2,994
                              ----------------------- -----------------------

    Earnings before income
     taxes                         5,940       6,209    13,783        14,217

    Income tax expense
     (recovery)
    Current                          222         127       545           270
    Future                            (6)        196    (1,916)          102
                              ----------------------- -----------------------
                                     216         323    (1,371)          372
                              ----------------------- -----------------------

    Net earnings                   5,724       5,886    15,154        13,845
    Other comprehensive
     (loss) income - net
     change in cumulative
     translation adjustments         (98)          5      (234)          (30)
                              ----------------------- -----------------------

    Comprehensive income           5,626       5,891    14,920        13,815

    Opening equity                56,801      58,248    57,064        59,650
    Adoption of new
     accounting standard               -           -       (81)            -
    Distributions declared        (4,579)     (4,887)  (14,055)      (14,213)
                              ----------------------- -----------------------

    Closing partnership
     equity                       57,848      59,252    57,848        59,252
                              ----------------------- -----------------------
                              ----------------------- -----------------------



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


                                   Three       Three        Nine        Nine
                                  months      months      months      months
                                   ended       ended       ended       ended
                               September   September   September   September
                                30, 2007    30, 2006    30, 2007    30, 2006
                              ----------------------- -----------------------
                                       $           $           $           $

    Cash provided (used)

    Operations
    Net earnings                   5,724       5,886      15,154      13,845
    Add back (deduct) items
     not affecting cash:
      Depreciation and
       amortization                5,759       5,470      17,550      16,033
      Loss (gain) on sale of
       assets (net)                   17        (935)     (3,313)     (1,427)
      Future income tax
       (recovery) expense             (6)        196      (1,916)        102
      Other non-cash items           (25)        125         138         245
                              ----------------------- -----------------------

    Cash provided by
     operations                   11,469      10,742      27,613      28,798

    Net change in non-cash
     working capital               3,568         200       1,770      (1,933)
                              ----------------------- -----------------------

    Net cash provided by
     operations                   15,037      10,942      29,383      26,865
                              ----------------------- -----------------------

    Investments
    Purchases of capital
     assets                       (3,039)    (10,223)    (12,438)    (24,930)
    Proceeds on sale of
     capital assets                  429       1,618       7,535       3,499
    Acquisition of
     transportation assets             -           -      (3,264)          -
    (Decrease) increase in
     accounts payable and
     accrued liabilities
     relating to investing
     activities                     (304)        498        (501)        864
    Decrease (increase) in
     accounts receivable
     relating to investing
     activities                       61      (1,477)         64      (1,477)
    Other                           (253)        (97)       (340)       (119)
                              ----------------------- -----------------------

    Cash used in investing
     activities                   (3,106)     (9,681)     (8,944)    (22,163)
                              ----------------------- -----------------------

    Financing
    Increase in long-term
     debt                              -           -       7,618           -
    Repayments of long-term
     debt                         (3,334)          -      (9,212)          -
    Distributions paid            (5,015)     (4,782)    (14,426)    (12,705)
                              ----------------------- -----------------------

    Cash used in financing
     activities                   (8,349)     (4,782)    (16,020)    (12,705)
                              ----------------------- -----------------------

    Increase (decrease) in
     cash and term deposits        3,582      (3,521)      4,419      (8,003)

    Cash and term deposits
     (bank indebtedness),
     beginning of period             138       2,265        (699)      6,747
                              ----------------------- -----------------------

    Cash and term deposits
     (bank indebtedness),
     end of period                 3,720      (1,256)      3,720      (1,256)
                              ----------------------- -----------------------
                              ----------------------- -----------------------

    Supplemental Information
    Income taxes paid                229         146         836         207
    Interest paid                  2,151       2,035       4,594       4,045

    Cash consists of the
     following:
      Cash and term deposits                               3,720           -
      Bank indebtedness                                        -      (1,256)
                                                      -----------------------
                                                           3,720      (1,256)
                                                      -----------------------
                                                      -----------------------
    

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





For further information:

For further information: Terry J. Owen, President & Chief Executive
Officer, Trimac Transportation Services Inc., Telephone: (403) 298-5101,
Facsimile: (403) 298-5355, Investor Relations: investors@trimac.com; Edward V.
Malysa, Vice President & Chief Financial Officer, Trimac Transportation
Services Inc., Telephone: (403) 298-5176, Facsimile: (403) 298-5146

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Trimac Transportation Ltd.

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