Trimac Announces Second Quarter Results




    CALGARY, Aug. 12 /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 second quarter ended June 30, 2008.

    
                                    Three months               Six months
                                   ended June 30,            ended June 30,
    Partnership                  2008         2007         2008         2007
                             ------------------------------------------------
    (millions of dollars)

    Revenues                     83.0         84.2        159.8        163.3
    EBITDA(1)                     9.4         10.5         16.4         18.8
    Net earnings                  2.6          7.9          3.2          9.4


                                    Three months               Six months
                                   ended June 30,            ended June 30,
    The Fund                     2008         2007         2008         2007
                             ------------------------------------------------
    (millions of dollars,
     except per unit amounts
     and numbers of units)

    Distributable cash
     per unit(1)(2)           $0.2499      $0.3864      $0.3626      $0.4355
    Distributions per
     unit(1)                  $0.2313      $0.2313      $0.4626      $0.4626
    Basic earnings per unit   $0.0914      $0.1744      $0.1297      $0.2256
    Fully diluted earnings
     per unit                 $0.0914      $0.1744      $0.1224      $0.2256
    Weighted average number
     of units used in
     computing basic
     earnings per unit     12,564,362   12,528,515   12,564,362   12,528,515
    Weighted average
     number of units
     outstanding used in
     computing diluted
     earnings per unit     24,294,701   23,609,506   24,294,701   23,609,506

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

    Trimac's revenue in the quarter ended June 30, 2008 ("current period")
decreased by $1.2 million or 1.4 percent as compared to the second quarter
ended June 30, 2007 ("prior period") while EBITDA declined by $1.1 million or
10.5 percent. Distributable cash per unit in the current period decreased by
13.6 cents as compared to the prior period. The operating environment and
economic conditions were similar to the 1st quarter of 2008 with the exception
of fuel price increases, which impacted reported results for revenue, fuel
surcharges, and direct expenses. Total loads hauled in the current period
decreased when compared to the prior period due to reduced demand in certain
regions and product lines. This reduction was mostly offset by higher revenue
from fuel surcharges. The western division's economic activity remained strong
in the current period, however, demand in the petroleum, chemical, and
industrial mineral product lines are slightly down from the prior period.
Continued economic weakness in central Canada resulted in the erosion of the
revenue base and profitability for the eastern division. Bulk Plus Logistics
("BPL") experienced a substantial improvement in profitability in the current
period as EBITDA increased despite reduced revenue of $1.9 million due to the
non-recurrence of a short-term freight brokerage contract in the prior period.
    The following one-time items occurred in the prior years results:

    
    -   Both BPL and the eastern division benefited from a short-term
        contract that contributed $3.5 million in revenue in the prior
        period and $7.7 million in the first six months of 2007,

    -   The Partnership successfully concluded the sale of a non-strategic
        facility in June 2007 for $5.9 million (net of disposal costs). This
        sale generated a gain on disposal of $2.9 million in the prior
        period,

    -   The Partnership recorded higher net earnings in the prior period due
        to a one-time future tax recovery of $1.7 million resulting from a
        corporate reorganization.
    

    In commenting on the results for the current period, Jeffrey J. McCaig,
Chairman, President and CEO of Trimac, said:
    "The bulk trucking operations experienced some reduction in customer
demand translating into reduced loads hauled and lower profitability. Fuel
surcharges in the current period increased by $5.1 million or 55% over the
prior period. This increase in revenue is primarily a cost recovery.
    When prior period one-time events (described above) are considered,
consolidated net earnings are very similar to 2007 for the current period."
    In commenting on the future activities and outlook for the business,
Mr. McCaig noted:
    "As Trimac's management look ahead to the second half of 2008, it
foresees the continuation of the current operating environment."

    
    Financial Highlights

                                Three months ended         Six months ended
                                      June 30,                  June 30,
                          ---------------------------------------------------
    (millions of dollars)        2008         2007         2008         2007
                          ---------------------------------------------------

    Revenues

    Western                      49.0         48.5         94.7         92.6
    Eastern                      29.5         30.2         56.6         60.1
                          ---------------------------------------------------
    Canadian trucking            78.5         78.7        151.3        152.7
    BPL                           4.6          5.5          8.5         10.6
    Other                        (0.1)           -            -            -
                          ---------------------------------------------------
                                 83.0         84.2        159.8        163.3
    Direct costs                 61.8         61.7        120.1        121.5
    Selling and
     administrative              11.8         12.0         23.3         23.0
                          ---------------------------------------------------

    EBITDA(1)                     9.4         10.5         16.4         18.8

    Depreciation net of
     gains on disposal
     of capital assets(2)         5.3          2.8         10.4          8.5
                          ---------------------------------------------------

    Operating earnings            4.1          7.7          6.0         10.3
    Interest expense (net)        1.3          1.3          2.5          2.5
                          ---------------------------------------------------

    Earnings before taxes         2.8          6.4          3.5          7.8
    Income tax expense
     (recovery)(3)                0.2         (1.5)         0.3         (1.6)
                          ---------------------------------------------------

    Net earnings                  2.6          7.9          3.2          9.4
                          ---------------------------------------------------
                          ---------------------------------------------------

    As a percentage of revenue
    --------------------------
    Direct costs                74.5%        73.3%        75.2%        74.4%
    Selling and administrative  14.2%        14.3%        14.6%        14.1%
    EBITDA(1)                   11.2%        12.4%        10.3%        11.5%
    Depreciation(2)              6.4%         3.3%         6.5%         5.2%
    Operating earnings           4.9%         9.1%         3.8%         6.3%

                                As at        As at
                               June 30,   December 31,
    (millions of dollars)        2008         2007
                          ----------------------------

    Total assets                160.5        154.3
    Total long-term
     liabilities                 51.0         44.7

    The above selected financial and operating information has been derived
from, and should be read in conjunction with, the unaudited interim
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) Results in 2007 include a $2.9 million gain on the disposal of a
        non strategic facility.
    (3) June 2007 results include a $1.7 million reversal of a previously
        recorded future tax liability resulting from a corporate
        reorganization.


    Distributable Cash

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


    (millions of dollars
     except unit amounts,       Three months ended         Six months ended
     certain percentages              June 30,                  June 30,
     and number of units)        2008         2007         2008         2007
    -------------------------------------------------------------------------

    Net cash provided by
     operations                   5.0          8.4         13.5         14.4

    Net change in non-cash
     working capital(1)           2.8          0.7         (0.1)         1.8
                           --------------------------------------------------
    Cash provided by
     operations                   7.8          9.1         13.4         16.2
    Less adjustment for:
      Net sustaining capital
       expenditures
       (net of proceeds)(2)(3)   (1.3)         5.3         (3.8)        (0.4)
      Provision for sustaining
       capital commitments(4)       -         (4.7)           -         (4.0)
      Provision for long-term
       unfunded contractual
       operational
       obligations(5)             0.1            -          0.1         (0.2)
                           --------------------------------------------------
    Total estimated cash
     available for distribution
     (before public expenses)     6.6          9.7          9.7         11.6
    Percentage of available
     cash distributable to
     unitholders(6)               52%          53%          52%          53%

                           --------------------------------------------------
    Cash available for
     distribution to
     unitholders (before
     public expenses)             3.4          5.1          5.1          6.2
    Public expenses(7)           (0.3)        (0.3)        (0.5)        (0.7)
                           --------------------------------------------------
    Distributable cash from
     operations(2)(8)             3.1          4.8          4.6          5.5
    Distributions declared
     and payable                  2.9          2.9          5.8          5.8

    Distributable cash
     per unit(2)(8)            0.2499       0.3864       0.3626       0.4355
    Distributions declared
     per unit                  0.2313       0.2313       0.4626       0.4626
    Payout ratio(2)(8)          92.6%        59.9%       127.6%       106.2%

    Weighted average
     number of units
     outstanding           12,564,362   12,528,515   12,564,362   12,528,515

    Net capital expenditures
      Sustaining capital
       expenditures(2)            2.3          1.5          5.7          7.5
      Proceeds on disposal
       of capital assets         (1.0)        (6.8)        (1.9)        (7.1)
                           --------------------------------------------------
      Net sustaining capital
       expenditures(2)(3)         1.3         (5.3)         3.8          0.4
      Growth capital
       expenditures(2)(9)         2.3          0.6          4.8          1.9
                           --------------------------------------------------
                                  3.6         (4.7)         8.6          2.3
                           --------------------------------------------------
                           --------------------------------------------------

    (1) Changes in non-cash operating assets and liabilities are not included
        in the calculation of distributable cash. Working capital investments
        are funded through a combination of cash flow not distributed and the
        use of credit facilities available to the Partnership.
    (2) Distributable cash from operations, sustaining capital expenditures,
        net sustaining capital expenditures, payout ratio, and growth capital
        expenditures are not measures recognized by GAAP, do not have
        standardized meanings prescribed by GAAP and may not be comparable to
        similarly named measures presented by other issuers. Management
        believes that they are important and useful measures for readers to
        evaluate the performance of the Fund.
    (3) Net sustaining capital expenditures refers to capital expenditures,
        net of proceeds on disposal of assets replaced, which are necessary
        to sustain current revenue levels. See "Liquidity and Capital
        Resources - Capital Expenditures".
    (4) During the second quarter of 2007, this represented the partial
        reversal of $0.3 million in the quarter ($1.0 million year to date)
        of a cash reserve in the three month period ($1.0 million for the
        full year) accrued in the fourth quarter of 2006 for a facility
        capital expansion that commenced in 2006. In addition, the
        Partnership had reserved $5.0 million of proceeds on the disposal of
        a non-strategic facility in June 2007 to be used to acquire
        replacement facilities in a subsequent period.
    (5) Represents a provision for cash requirements relating to a long-term
        incentive plan and an executive pension liability.
    (6) Percentage is equal to weighted average number of units outstanding
        of 12,564,362 divided by fully diluted units of 24,294,701.
    (7) Represents expenses associated with the Fund's status as a reporting
        issuer.
    (8) Distributable cash available will fluctuate on a monthly basis due to
        seasonal cash flows, sustaining capital expenditures incurred, income
        taxes paid and interest costs on outstanding debt.
    (9) Cash used to fund growth capital expenditures does not affect
        distributable cash to unitholders where financing is available for
        these purposes. The Partnership funds Growth capital from
        undistributed cash from operations, cash available from distributions
        on non-cash exchangeable shares and, to the extent available,
        existing lines of credit.
    

    During the current quarter the Partnership's cash provided by operations
decreased by $1.3 million and net sustaining capital expenditures increased by
$1.9 million (including provisions for sustaining capital commitments). The
Fund's distributable cash was $3.1 million in the current period, a decrease
of $1.7 million from the prior period resulting from its share of the
aforementioned Partnership changes in cash provided by operations and
sustaining capital. On a year-to-date basis, distributable cash from
operations was $4.6 million, a $0.9 million decrease from the prior year. The
decrease was due to decreased cash provided by operations, partially offset by
a reduced 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, working capital and
provisions) to stabilize the monthly amount of distributions to unitholders.
Growth capital expenditures are funded from undistributed cash from
operations; cash available from notional distributions on non-cash
exchangeable shares; and, to the extent available, cash and existing lines of
credit.
    Distributable cash from operations is not a defined term under GAAP but
is determined by the Partnership as net cash provided by operations for the
period, adjusted to remove specific non-cash items, including changes in
working capital, and reduced by sustaining capital expenditures, provisions
for funding long-term liabilities, provisions for committed capital purchases
in progress and public costs.
    Management believes that distributable cash from operations is a useful
supplemental measure of performance as it provides investors with an
indication of the amount of cash available for distribution to unitholders.
Investors are cautioned, however, that distributable cash from operations
should not be construed as an alternative to using net income as a measure of
profitability or as an alternative to the statement of cash flows. In
addition, the Fund's method of calculating distributable cash from operations
may not be comparable to calculations used by other issuers.

    Operating Results

    In the current period Trimac's total revenues were $83.0 million, a
decrease of $1.2 million or 1.4 percent from the prior period. Contributing to
this revenue decline in the current period was the non-recurrence of a
short-term contract that contributed $3.5 million in revenue in the prior
period. In the quarter, fuel surcharges as a percentage of base trucking
revenue totalled 17.2 percent in comparison to 10.9 percent in the prior
period. EBITDA for the quarter was $9.4 million, a decrease of $1.1 million or
10.5 percent from the prior period. On a year-to-date basis revenue decreased
by $3.5 million or 2.1 percent to $159.8 million compared to $163.3 million in
the prior year. EBITDA for the current six-month period totalled $16.4
million, a decrease of $2.4 million or 12.8 percent over the same period last
year.

    Bulk Trucking Operations

    The western division generated $49.0 million in revenue in the current
period, an increase of $0.5 million from the prior period. The division
achieved revenue growth of approximately $2.6 million or 7 percent in its B.C.
and Prairie Provinces operations. Revenue increased in the compressed gases,
edibles, and industrial minerals product lines throughout western Canada. The
April 30, 2007 acquisition of Ken Angeli Trucking Ltd (KAT) and the June 1,
2007 acquisition of certain assets of Logistics Express, Inc. ("Logex")
contributed $0.9 million of incremental revenue increase over the prior
period. The division's revenue growth was partially offset by a $1.6 million
or 24 percent decline in the woodchip product line, resulting from temporary
and permanent closures of sawmills and pulp mills primarily in 2007. Despite
increased revenue, higher fuel costs and the non-recurrence of a one-time cost
recovery in the prior period resulted in a $1.2 million or 15.5 percent
decrease in EBITDA to $6.6 million in the current period.
    On a year-to-date basis, the western division's revenue increased to
$94.7 million from $92.6 million in 2007, an increase of $2.1 million or
2.3 percent. Operations in British Columbia and the Prairie Provinces
experienced year-over-year growth of 8 percent in revenue. The April 30, 2007
acquisition of KAT and the June 1, 2007 acquisition of certain assets of Logex
contributed $3.2 million of incremental revenue over the prior year. This
revenue growth was partially offset by a $3.2 million decline in the woodchip
product line and lower demand in petroleum and chemical product lines. Despite
increased revenue and improvements in both accident and repair costs, higher
fuel costs and the non-recurrence of a one-time cost recovery in the prior
period resulted in a $1.0 million or 7.4 percent decrease in EBITDA to $11.8
million in the current year.
    The eastern division's revenue totalled $29.5 million in the current
period, which is $0.7 million or 2.3 percent lower than in the prior period.
Revenue gains of $1.1 million from the November 6, 2007 acquisition of
Stan Fergusson Fuels Ltd. (Fergusson) were more than offset by reduced demand
and a reduction in loads hauled in liquid chemical, plastics, and petroleum
product lines. In addition, the division experienced a revenue decline of
$1.6 million relating to a non-recurring short-term contract in the prior
period. EBITDA decreased by $0.8 million or 30.7 percent to $1.8 million in
the current period due to reduced demand and competitive renewals.
    On a year-to-date basis, the eastern division's revenue decreased to
$56.6 million, compared to $60.1 million in 2007, a decrease of $3.5 million
or 5.8 percent. Revenue gains of $2.3 million from the November 6, 2007
acquisition of Fergusson were more then offset by: a short-term contract that
contributed $4.2 million of revenue in the first half of 2007; reduced demand
in the cement and liquid chemical product lines; and, lower volumes with
existing customers. Increased operating costs as a percentage of revenue,
higher fuel costs, and lower revenue resulted in a $2.1 million or
40.3 percent decrease in EBITDA to $3.1 million.

    Logistics Operations

    BPL's revenue was $4.6 million in the current period, a $0.9 million
decrease from the prior period. This decrease was the result of a $1.3 million
reduction in freight brokerage revenue that was due to a short-term contract
that contributed $1.9 million of revenue in the second quarter of 2007 and
management's decision to exit a transload facility management contract on
May 23, 2008. In the U.S., revenue gains in third-party logistics management
and freight brokerage were partially offset by reduced revenue in the
transload operation and the translation impact from U.S. dollars to Canadian
dollars due to the appreciation of the Canadian dollar. For the quarter,
revenue generated by the U.S. operation increased by $0.4 million or 39.7
percent to $1.4 million. BPL achieved a $0.2 million increase in EBITDA to
$0.8 million over the prior period, despite the reduction in revenue.
    On a year-to-date basis, BPL's revenue was $8.5 million compared to
$10.6 million in 2007, a reduction of $2.1 million or 19.8 percent. Although
increased revenue was achieved in Canadian and U.S. consulting operations
these gains were offset by lower freight brokerage revenue that resulted from
the non-recurrence of a short-term contract that contributed $3.5 million of
revenue in the first half of 2007. In addition, reduced U.S. transload revenue
and the translation impact from U.S. dollars to Canadian dollars due to the
strengthening Canadian dollar added to the reduction in revenue. EBITDA for
the current year was unchanged from the prior year at $1.0 million as reduced
revenue was offset by more profitable contracts signed in the current year.

    Capital Expenditures

    The Partnership's net capital expenditures, including growth and
sustaining capital, totalled $3.6 million in the current period compared to
net proceeds of $4.7 million in the prior period. The increase of $8.3 million
from the prior period was made up of higher gross sustaining capital purchases
of $0.8 million, decreased proceeds on the disposal of capital assets of
$5.8 million and increased growth capital purchases of $1.7 million. Gross
sustaining capital purchases of $2.3 million were primarily made up of
replacement tractors and trailers accounting for approximately 90 percent of
the total.
    Net sustaining capital purchases were $6.6 million higher in the current
period, due to increased trailer spending and a $5.8 million decrease in
disposal proceeds in the current period. The higher replacement trailer
purchases were necessary to support existing business in the edible and
industrial mineral product lines. Proceeds on disposal were lower in the
current period due to the disposal of the Oakville facility in the prior
period for $5.8 million. Increased growth capital spending of $1.7 million in
the current period was primarily the result of trailer purchases to support
new business secured in the edible, industrial mineral, and petroleum product
lines. Tractors and trailers accounted for substantially all of growth capital
expenditures in the current period.
    On a year-to-date basis, net capital expenditures totalled $8.6 million
compared to $2.3 million for the prior year. The $6.3 million increase in net
capital expenditures from the prior year was made up of a $5.2 million
decrease in proceeds on the disposal of capital assets, primarily from the
2007 disposal of the aforementioned non-strategic facility, and a $2.9 million
increase in growth capital to support new business. This was partially offset
by a $1.8 million reduction in sustaining capital purchases. Sustaining
capital purchases decreased when compared to the prior year due to the timing
of 2007 tractor purchases of $4.2 million.
    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 fiscal 2008 are expected to be
in the range of $8.0 million to $9.0 million.

    Fuel Costs

    Fuel costs fluctuated during the current quarter with average
daily-posted rack prices for ultra-low-sulphur diesel fuel at refineries
across Canada ranging from $0.93 per litre to $1.08 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 the majority of 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
15.3 percent of base trucking revenue during the current year and have risen
dramatically over the past six months from an average low of $0.76 cents per
litre at the end of January 2008, for fuel picked up at the refinery, to $1.08
at the end of June 2008, an increase of 42.1 percent. Recovery of rising fuel
costs is impacted by the inherent lag in resetting surcharges due to
contractual agreements with customers; price increase thresholds set in fuel
surcharge programs; the fuel content percentage agreed on in the surcharge
mechanism; and the timing of price increases compared to agreed upon reset
periods. All of the above factors may vary from customer to customer as no
standard exists in the industry. The Partnership believes its fuel surcharge
program is effective in recovering fuel cost increases over time; however,
there is a lag in fuel price recovery that may result in quarterly shortfalls
or surpluses depending on the price trend in any given period.

    Forward-Looking Statements

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

    
    -   General economic conditions - Certain product lines of Trimac are
        dependent on the general economic conditions of the regions in which
        Trimac operates and cash flows may be negatively impacted by economic
        downturns in any particular region;
    -   Labour - Trimac's cash flow and growth are dependent on its ability
        to hire and retain quality drivers and mechanics;
    -   Fuel - Rising fuel prices and the ability of Trimac to recover cost
        increases in the marketplace may impact cash flow;
    -   Weather - Adverse weather may impact Trimac's transportation of goods
        and increase operating costs;
    -   Foreign currency exchange - The strengthening Canadian dollar may
        impact Trimac's customers' cost competitiveness and negatively impact
        the volume of goods transported;
    -   Tax structure - Changes in government regulation may negatively
        impact Trimac's distributable cash;
    -   Environmental considerations - Changes in environmental law may
        impact operating costs;
    -   Seasonality of business - Financial results may be impacted by the
        seasonality of the business;
    -   Information technology - Cash flow could be adversely affected by an
        event that caused irreparable damage to Trimac's operating systems
        and databases or information contained in the databases;
    -   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.
    

    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 9:30 a.m. Eastern Time
on Wednesday, August 13, 2008. For North American participants, please dial
1-888-300-0053 or for international participants, please dial ++1 647-427-3420
at least 10 minutes prior to the start time of the call.
    A playback of the call will be available starting at noon Eastern Time on
Wednesday, August 13, 2008 until midnight August 20, 2008. To hear the
playback, please dial 1-800-395-0363 or for international participants, please
dial ++1 402-220-2888 and when prompted please enter the conference ID number
58361060.



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

                                                          As at        As at
                                                        June 30,    December
                                                           2008     31, 2007
                                                    -------------------------
                                                              $            $
    Assets

    Current assets
    Cash                                                    683          404
    Interest receivable                                     233          238
    Distributions receivable                                802          866
    Prepaid expenses                                         96           64
                                                    -------------------------

                                                          1,814        1,572

    Investment in Trimac Transportation Services
     Limited Partnership                                 68,812       72,961
    Note receivable from Trimac Transportation
     Services Inc.                                       35,438       35,141
                                                    -------------------------

                                                        106,064      109,674
                                                    -------------------------
                                                    -------------------------

    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities                158          189
    Due to associated companies and partnerships            696          439
    Distributions payable                                   969          967
                                                    -------------------------

                                                          1,823        1,595

    Deferred compensation plan                               26            -
                                                    -------------------------

                                                          1,849        1,595

    Unitholders' equity                                 104,215      108,079
                                                    -------------------------

                                                        106,064      109,674
                                                    -------------------------
                                                    -------------------------


    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 number of units)

                          Three months Three months  Six months   Six months
                              ended        ended        ended        ended
                             June 30,     June 30,     June 30,     June 30,
                               2008         2007         2008         2007
                          ------------------------- -------------------------
                                    $            $            $            $

    Share of earnings of
     Trimac Transportation
     Services Limited
     Partnership (note 4)         679        1,747          651        2,089
    Interest income               706          698        1,416        1,392
    Administrative costs         (236)        (260)        (438)        (654)
                          ------------------------- -------------------------

    Net earnings                1,149        2,185        1,629        2,827

    Other comprehensive
     (loss) income - share
     of Partnership other
     comprehensive (loss)
     income                        (4)         (45)          20          (48)
                          ------------------------- -------------------------

    Comprehensive income        1,145        2,140        1,649        2,779


    Opening unitholders'
     equity                   105,806      111,110      108,079      113,403
    Adoption of new
     accounting standard            -            -            -          (35)
    Issue of additional units     172            -          297            -
    Distributions              (2,908)      (2,898)      (5,810)      (5,795)
                          ------------------------- -------------------------

    Closing unitholders'
     equity                   104,215      110,352      104,215      110,352
                          ------------------------- -------------------------
                          ------------------------- -------------------------

    Basic earnings per
     unit(2)              $    0.0914  $    0.1744  $    0.1297  $    0.2256
    Fully diluted
     earnings per unit    $    0.0914  $    0.1744  $    0.1224  $    0.2256
    Weighted average
     number of units
     outstanding used in
     computing basic
     earnings per unit     12,564,362   12,528,515   12,564,362   12,528,515

    Weighted average number
     of units outstanding
     used in computing
     diluted earnings
     per unit(1)           24,294,701   23,609,506   24,294,701   23,609,506


    (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         Six months ended
                                      June 30                   June 30,
                                 2008         2007         2008         2007
                                    $            $            $            $

    Net earnings of the
     Partnership                2,615        7,922        3,209        9,430

      Add: Interest expense
       on TTSI debt included
       in Partnership earnings  1,019        1,019        2,037        2,026
                              -----------------------------------------------
    Adjusted Partnership
     earnings                   3,634        8,941        5,246       11,456

      Less: Purchase price
       allocation adjustments:

        Increase in
         amortization of
         capital assets and
         loss on disposal of
         capital assets(1)       (601)      (2,990)      (1,230)      (3,533)

        Amortization of
         intangible assets(2)  (1,011)      (1,010)      (2,022)      (2,020)
                              -----------------------------------------------
    Partnership earnings
     after purchase price
     adjustments                2,022        4,941        1,994        5,903
                              -----------------------------------------------

    Share of Partnership
     earnings                     679        1,747          651        2,089
                              -----------------------------------------------
                              -----------------------------------------------


    (2) Pursuant to an investor liquidity agreement, holders of TTSI
        Exchangeable Shares have the right to effectively liquidate their
        10,045,266 shares of TTSI and receive units in the Fund. Following
        the full exercise of such liquidation rights, the Fund would own
        100 percent of the Partnership. The number of units used in the
        calculation of diluted earnings per unit assumes full liquidation at
        the beginning of the period.



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

                          Three months Three months  Six months   Six months
                              ended        ended        ended        ended
                             June 30,     June 30,     June 30,     June 30,
                               2008         2007         2008         2007
                          ------------------------- -------------------------
                                    $            $            $            $
    Cash provided (used)

    Operations
    Net earnings                1,149        2,185        1,629        2,827
    Add (deduct) items
     not affecting cash:
      Share of earnings
       from Trimac
       Transportation
       Services Limited
       Partnership               (679)      (1,747)        (651)      (2,089)
      Distributions from
       Trimac Transportation
       Services Limited
       Partnership                651        1,747          651        2,089
      Deferred compensation
       costs                       26            -           26            -
                          ------------------------- -------------------------

    Cash provided by
     operations                 1,147        2,185        1,655        2,827
    Net change in non-cash
     working capital               30          100          199          (90)
                          ------------------------- -------------------------

    Net cash provided by
     operations                 1,177        2,285        1,854        2,737
                          ------------------------- -------------------------

    Investments
    Distributions from
     Trimac Transportation
     Services Limited
     Partnership                1,765          670        4,233        2,906
                          ------------------------- -------------------------

    Cash provided by
     investing activities       1,765          670        4,233        2,906
                          ------------------------- -------------------------

    Financing
    Distributions paid         (2,906)      (2,898)      (5,808)      (5,795)
                          ------------------------- -------------------------

    Cash used in financing
     activities                (2,906)      (2,898)      (5,808)      (5,795)
                          ------------------------- -------------------------

    Increase in cash               36           57          279         (152)
    Cash, beginning of year       647           14          404          223
                          ------------------------- -------------------------

    Cash, end of year             683           71          683           71
                          ------------------------- -------------------------
                          ------------------------- -------------------------

    Supplemental information
    Cash received from
     interest                     718          706        1,421        1,399


    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
                                                        June 30,    December
                                                           2008     31, 2007
                                                    -------------------------
                                                              $            $
    Assets

    Current assets
    Cash and term deposits                                  597            -
    Accounts receivable                                  39,543       32,816
    Materials and supplies                                1,800        1,777
    Due from related parties                              2,657        2,685
    Income taxes recoverable                                  -           61
    Prepaid expenses                                     10,392        9,637
                                                    -------------------------

                                                         54,989       46,976

    Capital assets                                       96,009       97,467
    Intangible assets                                     2,054        2,387
    Goodwill                                              6,052        6,052
    Other                                                 1,420        1,398
                                                    -------------------------

                                                        160,524      154,280
                                                    -------------------------
                                                    -------------------------

    Liabilities

    Current liabilities
    Bank indebtedness                                       450          238
    Accounts payable and accrued liabilities             34,929       28,559
    Distributions payable                                 3,609        4,765
    Income taxes payable                                     16            -
    Due to related parties                                2,878        2,173
    Current maturities of long-term debt                 18,666       18,666
                                                    -------------------------

                                                         60,548       54,401

    Long-term debt                                       48,790       42,338
    Future income taxes                                     407          435
    Other long-term liabilities                           1,778        1,920
                                                    -------------------------

                                                        111,523       99,094

    Partnership equity                                   49,001       55,186
                                                    -------------------------

                                                        160,524      154,280
                                                    -------------------------
                                                    -------------------------


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



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

                           Three months Three months  Six months   Six months
                              ended        ended        ended        ended
                             June 30,     June 30,     June 30,     June 30,
                               2008         2007         2008         2007
                          ------------------------- -------------------------
                                    $            $            $            $
    Transportation revenue     68,732       74,985      135,319      146,384
    Fuel surcharges            14,289        9,194       24,453       16,938
                          ------------------------- -------------------------
    Total revenues             83,021       84,179      159,772      163,322
                          ------------------------- -------------------------

    Operating costs and
     expenses
    Direct                     61,780       61,728      120,123      121,593
    Selling and
     administrative            11,783       12,002       23,266       22,988
    Depreciation and
     amortization               5,546        5,942       10,962       11,791
    Gain on sale of
     assets (net)                (149)      (3,164)        (526)      (3,330)
                          ------------------------- -------------------------

    Operating expense          78,960       76,508      153,825      153,042
                          ------------------------- -------------------------

    Operating earnings          4,061        7,671        5,947       10,280

    Interest on long-term
     debt                       1,279        1,233        2,440        2,405
    Other interest                 15           19           26           32
                          ------------------------- -------------------------
                                1,294        1,252        2,466        2,437
                          ------------------------- -------------------------

    Earnings before
     income taxes               2,767        6,419        3,481        7,843

    Income tax expense (recovery)
    Current                       172          221          298          323
    Future                        (20)      (1,724)         (26)      (1,910)
                          ------------------------- -------------------------
                                  152       (1,503)         272       (1,587)
                          ------------------------- -------------------------

    Net earnings                2,615        7,922        3,209        9,430

    Other comprehensive income
     (loss) - net change in
     cumulative translation
     adjustments                  (13)        (127)          57         (136)
                          ------------------------- -------------------------

    Comprehensive income        2,602        7,795        3,266        9,294

    Opening partnership
     equity                    51,073       53,606       55,186       57,064
    Adoption of new
     accounting standard            -            -            -          (81)
    Distributions declared     (4,674)      (4,600)      (9,451)      (9,476)
                          ------------------------- -------------------------

    Closing partnership
     equity                    49,001       56,801       49,001       56,801
                          ------------------------- -------------------------
                          ------------------------- -------------------------
    Accumulated other
     comprehensive losses
     (included in partnership
     equity)
    -------------------------

    Opening balance              (199)         (29)        (269)         (20)
    Other comprehensive
     income (loss)                (13)        (127)          57         (136)
                          ------------------------- -------------------------

    Closing balance              (212)        (156)        (212)        (156)
                          ------------------------- -------------------------
                          ------------------------- -------------------------



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

                          Three months Three months  Six months   Six months
                              ended        ended        ended        ended
                             June 30,     June 30,     June 30,     June 30,
                               2008         2007         2008         2007
                          ------------------------- -------------------------
                                    $            $            $            $
    Cash provided (used)

    Operations
    Net earnings                2,615        7,922        3,209        9,430
    Add back (deduct) items
     not affecting cash:
      Depreciation and
       amortization             5,546        5,942       10,962       11,791
      Gain on sale of
       assets (net)              (149)      (3,164)        (526)      (3,330)
      Future income tax
       recovery                   (20)      (1,724)         (26)      (1,910)
      Other non-cash items       (151)          86         (155)         163
                          ------------------------- -------------------------

    Cash provided by
     operations                 7,841        9,062       13,464       16,144

    Net change in non-cash
     working capital           (2,803)        (697)          61       (1,798)
                          ------------------------- -------------------------

    Net cash provided by
     operations                 5,038        8,365       13,525       14,346
                          ------------------------- -------------------------

    Investments
    Purchases of capital
     assets                    (4,572)      (2,124)     (10,504)      (9,399)
    Proceeds on sale of
     capital assets               916        6,778        1,859        7,106
    Decrease in accounts
     payable and accrued
     liabilities relating
     to investing activities     (321)        (176)        (388)        (197)
    Increase in accounts
     receivable relating to
     investing activities          51           79           14            3
    Other                          (5)         (73)          34          (87)
                          ------------------------- -------------------------

    Cash used in investing
     activities                (3,931)       1,220       (8,985)      (5,838)
                          ------------------------- -------------------------

    Financing
    Increase in
     long-term debt             3,833            -        6,452        7,618
    Repayments of
     long-term debt                 -       (5,878)           -       (5,878)
    Distributions paid         (5,050)      (4,368)     (10,607)      (9,411)
                          ------------------------- -------------------------

    Cash (used in) provided
     by financing activities   (1,217)     (10,246)      (4,155)      (7,671)
                          ------------------------- -------------------------

    Increase in cash and
     term deposits               (110)        (661)         385          837
    Bank indebtedness,
     beginning of period          257          799         (238)        (699)
                          ------------------------- -------------------------

    Cash and term deposits,
     end of period                147          138          147          138
                          ------------------------- -------------------------
                          ------------------------- -------------------------

    Supplemental Information
    Income taxes paid             200          (50)         221          607
    Interest paid                 166          234        2,350        2,443

    Cash consists of the following:
      Cash and term deposits                                597        1,196
      Bank indebtedness                                    (450)      (1,058)
                                                    -------------------------
                                                            147          138
                                                    -------------------------


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





For further information:

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