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, 2009.


    
                                    Three months               Six months
                                   ended June 30,            ended June 30,
    Partnership                  2009         2008         2009         2008
                           --------------------------------------------------
    (millions of dollars)

    Transportation revenue       59.6         68.7        119.0        135.3
    Fuel surcharges               3.7         14.3          8.4         24.5
    Total revenue                63.3         83.0        127.4        159.8

    EBITDA(1)                     7.2          9.4         12.7         16.4
    Net earnings                  1.1          2.6          0.4          3.2



                                    Three months               Six months
                                   ended June 30,            ended June 30,
    The Fund                     2009         2008         2009         2008
                           --------------------------------------------------
    (millions of dollars,
     except per unit amounts
     and numbers of units)

    Distributable cash
     per unit(1)(2)           $0.1906      $0.2468      $0.3011      $0.3595
    Distributions per
     unit(1)                  $0.1200      $0.2313      $0.2400      $0.4626
    Basic earnings per unit   $0.0331      $0.0914      $0.0281      $0.1297
    Fully diluted earnings
     (loss) per unit          $0.0306      $0.0914     $(0.0143)     $0.1224
    Weighted average number
     of units used in
     computing basic
     earnings per unit     12,584,679   12,564,362   12,584,679   12,564,362
    Number of units
     outstanding used in
     computing diluted
     earnings per unit     25,532,452   24,294,701   25,532,452   24,294,701


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

    Trimac's revenue, including fuel surcharges, for the three-month period
ended June 30, 2009 ("current period") decreased by $19.7 million or 23.7
percent from the three-month period ended June 30, 2008 ("prior period").
Contributing to this decrease was a $10.6 million reduction in revenue from
fuel surcharges. As previously reported by Trimac, the impact of changes in
fuel prices on profitability has generally been neutral. In addition, revenue
continued to be affected by competitive pressures and reduced levels of
activity in the construction, drilling, mining, automotive, and forestry
industries. EBITDA decreased by $2.2 million or 23.4 percent from the prior
period. Expressed as a percent of revenue, EBITDA was 11.4 percent in the
current period, substantially the same as the 11.3 percent recorded in the
prior period, as various cost reduction programs were successfully implemented
to mitigate lower volumes.

    
    Divisional results in the second quarter were as follows:

    -   Excluding revenue from fuel surcharges, western division
        transportation revenue declined by $7.0 million or 17.5 percent and
        EBITDA decreased by $1.6 million or 24.2 percent over the prior
        period.

    -   Excluding revenue from fuel surcharges, eastern division
        transportation revenue decreased by $0.8 million or 3.3 percent,
        however, EBITDA improved by $0.2 million or 10.5 percent over the
        prior period.

    -   Bulk Plus Logistics revenue decreased by $1.4 million or
        30.4 percent. EBITDA decreased by $0.2 million or 25.0 percent as
        compared to the prior period.
    

    In commenting on the results for the second quarter, Jeffrey J. McCaig,
Chairman and CEO of Trimac, said:
    "Despite the continuation of a challenging operating environment
throughout Canada, Trimac was able to hold its EBITDA margin compared to the
second quarter of 2008. Trimac's ability to maintain its EBITDA margin was the
result of the successful implementation of cost reduction programs as
management acted proactively to mitigate the affects of lower volumes.
Trimac's management is continuing to implement cost controls and pursuing
additional profitable business in an attempt to further mitigate the impact of
the current recession."
    For comments regarding management's outlook for the remainder of 2009
please see Trimac's Management's Discussion and Analysis for the six-month
period ended June 30, 2009.


    
    Financial Highlights
                                Three months ended          Six months ended
                                      June 30                   June 30
                           --------------------------------------------------
    (millions of dollars)        2009         2008         2009         2008
    -------------------------------------------------------------------------

    Revenues                     63.3         83.0        127.4        159.8
      Direct costs               45.3         61.8         93.3        120.1
      Selling and
       administrative            10.8         11.8         21.4         23.3
                           --------------------------------------------------

    EBITDA(1)                     7.2          9.4         12.7         16.4
      Depreciation net of
       gains on disposal
       of capital assets          5.0          5.3         10.0         10.4
                           --------------------------------------------------

    Operating earnings            2.2          4.1          2.7          6.0
      Interest expense (net)      1.0          1.3          2.0          2.5
                           --------------------------------------------------

    Earnings before taxes         1.2          2.8          0.7          3.5
      Income tax expense          0.1          0.2          0.3          0.3
                           --------------------------------------------------

    Net earnings                  1.1          2.6          0.4          3.2
                           --------------------------------------------------
                           --------------------------------------------------

    As a percentage of
     revenue(2)
    -----------------------
      Direct costs              71.6%        74.5%        73.2%        75.2%
      Selling and
       administrative           17.1%        14.2%        16.8%        14.6%
      EBITDA(1)                 11.4%        11.3%        10.0%        10.3%
      Depreciation               7.9%         6.4%         7.8%         6.5%
      Operating earnings         3.5%         4.9%         2.1%         3.8%


                                As at        As at
                               June 30,   December 31,
      (millions of dollars)      2009         2008
                           ---------------------------
      Total assets              146.8        152.7
      Total long-term
        liabilities              48.2         47.2

    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) Direct costs, selling and administrative and depreciation, expressed
        as a percentage of revenue, were impacted by significant fluctuations
        in fuel surcharge revenue between the prior and current period and
        the prior and current year. For additional commentary regarding these
        expenses please see page 8 and 9 of Trimac's Management's Discussion
        and Analysis for the six-month period ended June 30, 2009.

    Distributable Cash

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


    (millions of dollars        Three months ended          Six months ended
     except unit amounts,             June 30                   June 30
     certain percentages   --------------------------------------------------
     and number of units)        2009         2008         2009         2008
    -------------------------------------------------------------------------
    Net cash provided by
     operations                   8.5          5.0         13.5         13.5
    Net change in non-cash
     working capital(1)          (2.2)         2.8         (2.9)        (0.1)
                           --------------------------------------------------
    Cash provided by
     operations                   6.3          7.8         10.6         13.4
    Less adjustments for:
      Net sustaining capital
       expenditures (net of
       proceeds)(2)(3)           (0.7)        (1.3)        (1.9)        (3.8)
      Provision for
       long-term unfunded
       contractual
       operational
       obligations(4)            (0.3)         0.1         (0.2)         0.1
                           --------------------------------------------------
    Total estimated cash
     available for
     distribution (before
     public expenses)             5.3          6.6          8.5          9.7
    Percentage of available
     cash distributable to
     unitholders(5)               49%          52%          49%          52%
                           --------------------------------------------------

    Cash available for
     distribution to
     unitholders (before
     public expenses)             2.6          3.4          4.2          5.0
    Public expenses(6)           (0.2)        (0.3)        (0.4)        (0.5)
                           --------------------------------------------------
    Distributable cash
     from operations(2)(7)        2.4          3.1          3.8          4.5
    Distributions declared
     and payable                  1.6          2.9          3.1          5.8

    Distributable cash per
     unit(2)(7)                0.1906       0.2468       0.3011       0.3595
    Distributions declared
     per unit(9)               0.1200       0.2313       0.2400       0.4626
    Payout ratio(2)(7)          63.0%        93.7%        79.7%       128.7%

    Weighted average number
     of units outstanding  12,584,679   12,564,362   12,584,679   12,564,362

    Net capital expenditures
      Sustaining capital
       expenditures(2)            1.1          2.3          3.2          5.7
      Proceeds on disposal
       of replaced assets        (0.4)        (1.0)        (1.3)        (1.9)
                           --------------------------------------------------
      Net sustaining capital
       expenditures(2)(3)         0.7          1.3          1.9          3.8
      Growth capital
       expenditures(2)(8)         3.2          2.3          3.9          4.8
                           --------------------------------------------------
                                  3.9          3.6          5.8          8.6
                           --------------------------------------------------
                           --------------------------------------------------

    (1) Changes in non-cash operating assets and liabilities are not included
        in the calculation of distributable cash. Working capital investments
        are funded through a combination of cash flow not distributed and the
        use of credit facilities available to the Partnership.
    (2) Distributable cash from operations, sustaining capital expenditures,
        net sustaining capital expenditures, payout ratio, and growth capital
        expenditures are not measures recognized by GAAP, do not have
        standardized meanings prescribed by GAAP and may not be comparable to
        similarly named measures presented by other issuers.
    (3) Net sustaining capital expenditures refers to capital expenditures,
        net of proceeds on disposal of assets replaced, which are necessary
        to sustain current revenue levels. See "Liquidity and Capital
        Resources - Capital Expenditures".
    (4) Represents a provision for cash requirements relating to a long-term
        incentive plan and an executive pension liability.
    (5) Percentage is equal to weighted average number of units outstanding
        of 12,584,679 divided by fully diluted units of 25,532,452.
    (6) Represents expenses associated with the Fund's status as a reporting
        issuer.
    (7) Distributable cash available will fluctuate on a monthly basis due to
        seasonal cash flows, sustaining capital expenditures incurred, income
        taxes paid and interest costs on outstanding debt.
    (8) Cash used to fund growth capital expenditures does not affect
        distributable cash to unitholders where financing is available for
        these purposes. The Partnership funds growth capital from
        undistributed cash from operations, cash available from distributions
        on non-cash exchangeable shares and, to the extent available,
        existing lines of credit.
    (9) Effective January 2009, the monthly distribution per unit was reduced
        from $0.0771 to $0.04.
    

    During the current period the Partnership's cash provided by operations
decreased by $1.5 million and the provision for unfunded long-term executive
compensation plans increased by $0.4 million. This was partially offset by a
reduction in net sustaining capital expenditures of $0.6 million. The Fund's
distributable cash was $2.4 million in the current period, less than that
recorded in the prior period by $0.7 million, resulting from its share of the
aforementioned Partnership changes in cash provided by operations, provisions
for executive compensation plans and sustaining capital. During the current
year-to-date period distributable cash from operations was $3.8 million, a
$0.7 million decrease compared to the prior year. The decrease was due to
decreased cash provided by operations and an increase in the provision for
unfunded executive compensation plans, 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 as
may be considered appropriate by the Board of Directors. Growth capital
expenditures are funded from undistributed cash from operations, cash
available from notional distributions on non-cash exchangeable shares, and, to
the extent available, cash and existing lines of credit.
    Distributable cash from operations is not a defined term under GAAP but
is determined by the Partnership as net cash provided by operations for the
period, adjusted to remove specific non-cash items, including changes in
working capital, and reduced by sustaining capital expenditures, provisions
for funding long-term liabilities, provisions for committed capital purchases
in progress and public costs.
    Management believes that distributable cash from operations is a useful
supplemental measure of performance as it provides investors with an
indication of the amount of cash available for distribution to unitholders.
Investors are cautioned, however, that distributable cash from operations
should not be construed as an alternative to using net income as a measure of
profitability or as an alternative to the statement of cash flows. In
addition, the Fund's method of calculating distributable cash from operations
may not be comparable to calculations used by other issuers.

    
    Operating Results


    Revenue - Q2

    -------------------------------------------------------------------------
                         Three months ended June 30
    -------------------------------------------------------------------------
    (millions of
     dollars)        2009              2008       Gross Revenue   Net Revenue
    -------------------------------------------------------------------------
                          Tran-             Tran-
                          spor-              spor
                     Fuel   ta-        Fuel   ta-
              Total  Sur-  tion Total  Sur-  tion
                Re- char-   Re-   Re- char-   Re-   Var-          Var-
              venue   ges venue venue   ges venue  iance      %  iance      %
    -------------------------------------------------------------------------

    Bulk
     trucking
    ---------

    Western
     division  34.9   2.0  32.9  49.0   9.1  39.9 (14.1) -28.8%  (7.0) -17.5%
    Eastern
     division  25.2   1.7  23.5  29.5   5.2  24.3  (4.3) -14.6%  (0.8)  -3.3%
    -------------------------------------------------------------------------

    Total bulk
     trucking  60.1   3.7  56.4  78.5  14.3  64.2 (18.4) -23.4%  (7.8) -12.1%
    -------------------------------------------------------------------------
    Bulk Plus
     Logistics  3.2     -   3.2   4.6     -   4.6  (1.4) -30.4%  (1.4) -30.4%
    -------------------------------------------------------------------------

    Other         -     -     -  (0.1)    -  (0.1)  0.1           0.1
    -------------------------------------------------------------------------

    Total
     revenue   63.3   3.7  59.6  83.0  14.3  68.7 (19.7) -23.7%  (9.1) -13.2%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    
    For the current period, total revenue decreased by $19.7 million or 23.7
percent from the prior period. Fuel surcharges as a percentage of bulk
trucking revenue totalled approximately 6.6 percent in comparison to 22.3
percent in the prior period, resulting in a decrease of $10.6 million. Trimac
has fuel surcharge programs in place with substantially all of its customers
and the impact of changes in fuel prices on profitability has generally been
neutral over time. Revenue net of fuel surcharges decreased by $9.1 million or
13.2 percent from the prior period primarily as a result of lower volumes with
existing customers.
    The western division's revenue decreased by $14.1 million or 28.8
percent. Fuel surcharge revenue was $7.1 million lower than the prior period.
Revenue net of fuel surcharges decreased by $7.0 million or 17.5 percent
compared to the prior period. Incremental revenue of $1.6 million from the
December 5, 2008 acquisition of Canamera Carriers Inc. (Canamera) and
increased revenue in the edible product line was offset by net business losses
and reduced volumes with existing customers. This reduction in volumes
impacted the majority of the western division's product lines and was due to a
severe slowdown in the economy.
    The eastern division's revenue decreased by $4.3 million or 14.6 percent.
Fuel surcharge revenue was $3.5 million lower than the prior period. Revenue
net of fuel surcharges decreased by $0.8 million or 3.3 percent compared to
the prior period. Increased revenue from the industrial gas product line was
offset by net business losses and decreased volumes with existing customers.
These decreased volumes were primarily the result of continued economic
weakness in central Canada, predominantly in the construction, chemical, and
automotive industries.
    For the current period, Bulk Plus Logistics' (BPL) revenue decreased by
$1.4 million or 30.4 percent. This decrease was primarily due to the exiting
of a transload facility management contract in May 2008 and to decreased
freight brokerage volumes in Canada and the U.S.


    
    Revenue - YTD Q2

    -------------------------------------------------------------------------
                          Six months ended June 30
    -------------------------------------------------------------------------
    (millions of
     dollars)        2009              2008       Gross Revenue   Net Revenue
    -------------------------------------------------------------------------
                          Tran-             Tran-
                          spor-              spor
                     Fuel   ta-        Fuel   ta-
              Total  Sur-  tion Total  Sur-  tion
                Re- char-   Re-   Re- char-   Re-   Var-          Var-
              venue   ges venue venue   ges venue  iance      %  iance      %
    -------------------------------------------------------------------------

    Bulk
     trucking
    ---------

    Western
     division  72.9   5.0  67.9  94.7  15.7  79.0 (21.8) -23.0% (11.1) -14.1%
    Eastern
     division  48.1   3.4  44.7  56.6   8.8  47.8  (8.5) -15.0%  (3.1)  -6.5%
    -------------------------------------------------------------------------

    Total bulk
     trucking 121.0   8.4 112.6 151.3  24.5 126.8 (30.3) -20.0% (14.2) -11.2%
    -------------------------------------------------------------------------

    Bulk Plus
     Logistics  6.4     -   6.4   8.5     -   8.5  (2.1) -24.7%  (2.1) -24.7%
    -------------------------------------------------------------------------

    Other         -     -     -     -     -     -     -             -
    -------------------------------------------------------------------------

    Total
     revenue  127.4   8.4 119.0 159.8  24.5 135.3 (32.4) -20.3% (16.3) -12.0%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For the current year, total revenue decreased by $32.4 million or 20.3
percent from the prior year. Fuel surcharges as a percentage of bulk trucking
revenue totalled approximately 7.5 percent in comparison to 19.3 percent in
the prior year, resulting in a decrease of $16.1 million as a result of lower
fuel prices. Revenue net of fuel surcharges decreased by $16.3 million or 12.0
percent from the prior year primarily as a result of business losses and lower
volumes with existing customers.
    The western division's revenue decreased by $21.8 million or 23.0
percent. Fuel surcharge revenue was $10.7 million lower than the prior year.
Revenue net of fuel surcharges decreased by $11.1 million or 14.1 percent
compared to the prior year. Incremental revenue of $3.0 million from the
December 5, 2008 acquisition of Canamera Carriers Inc. (Canamera) and
increased revenue in the edible product line was more then offset by net
business losses and reduced volumes with existing customers. This reduction in
volumes was primarily due to the economic recession.
    The eastern division's revenue decreased by $8.5 million or 15.0 percent.
Fuel surcharge revenue was $5.4 million lower than the prior year. Revenue net
of fuel surcharges decreased by $3.1 million or 6.5 percent compared to the
prior year. Increased revenue from the industrial gas product line was offset
by net business losses and decreased volumes with existing customers. These
decreased volumes were primarily the result of continued economic weakness in
central Canada, predominantly in the construction, chemical, and automotive
industries.
    For the current year, Bulk Plus Logistics' (BPL) revenue decreased by
$2.1 million or 24.7 percent. This decrease was primarily due to the exiting
of a transload management contract in May 2008 and decreased freight brokerage
volumes in Canada and the U.S.


    
    EBITDA - Q2

    -------------------------------------------------------------------------
                          Three months ended June 30
    -------------------------------------------------------------------------
    (millions of                                                      % Rev.
     dollars)             2009  % Rev.   2008  % Rev. Variance    %   change
    -------------------------------------------------------------------------

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

    Western division       5.0   14.3%    6.6   13.5%    (1.6) -24.2%    0.8%
    Eastern division       2.1    8.4%    1.9    6.4%     0.2   10.5%    1.9%
    -------------------------------------------------------------------------

    Total bulk trucking    7.1   11.8%    8.5   10.8%    (1.4) -16.5%    1.0%
    -------------------------------------------------------------------------

    Bulk Plus Logistics    0.6   18.8%    0.8   17.4%    (0.2) -25.0%    1.4%
    -------------------------------------------------------------------------

    Other                 (0.5)           0.1            (0.6)
    -------------------------------------------------------------------------
    Total EBITDA           7.2   11.4%    9.4   11.3%    (2.2) -23.4%    0.1%
    -------------------------------------------------------------------------
    

    EBITDA for the current period totaled $7.2 million, a $2.2 million or
23.4 percent decrease from the prior period. The western division experienced
a $1.6 million or 24.2 percent decrease in the current period. This decrease
was primarily the result of lower revenue which was mitigated by lower direct
costs, primarily due to various cost reduction programs implemented to reflect
lower volumes. The eastern division experienced increased EBITDA of $0.2
million or 10.5 percent as lower revenue was more then offset by a reduction
in direct costs. BPL's EBITDA was $0.2 million lower than in the prior period
as lower revenue was only partially offset by improved profitability.


    
    EBITDA - Q2 YTD

    -------------------------------------------------------------------------
                           Six months ended June 30
    -------------------------------------------------------------------------
    (millions of                                                      % Rev.
     dollars)             2009  % Rev.   2008  % Rev. Variance    %   change
    -------------------------------------------------------------------------
    Bulk trucking
    -------------------

    Western division       8.9   12.2%   11.8   12.5%    (2.9) -24.6%   -0.3%
    Eastern division       3.0    6.2%    3.1    5.5%    (0.1)  -3.2%    0.8%
    -------------------------------------------------------------------------

    Total bulk trucking   11.9    9.8%   14.9    9.8%    (3.0) -20.1%    0.0%
    -------------------------------------------------------------------------

    Bulk Plus Logistics    1.4   21.9%    1.0   11.8%     0.4   40.0%   10.1%
    -------------------------------------------------------------------------

    Other                 (0.6)           0.5            (1.1)
    -------------------------------------------------------------------------

    Total EBITDA          12.7   10.0%   16.4   10.3%    (3.7) -22.6%   -0.3%
    -------------------------------------------------------------------------
    

    EBITDA for the year-to-date period totaled $12.7 million, a $3.7 million
or 22.6 percent decrease from the prior year-to-date period. The western
division experienced a $2.9 million or 24.6 percent decrease in the period,
and the eastern division was lower than prior by $0.1 million or 3.2 percent.
These decreases were primarily the result of lower revenue which was mitigated
by lower direct costs, primarily due to various cost reduction programs
implemented to address lower volumes. BPL's EBITDA was $0.4 million or 40.0
percent higher than in the prior year-to-date period as lower revenue was
offset by improved profitability. Improved profitability resulted from reduced
activity in the freight brokerage product line which has a higher percentage
of direct operating costs than other product lines within BPL, as well as
management's decision to exit a transload management contract in May 2008.


    
    Capital Expenditures

                                Three months ended          Six months ended
                                      June 30                   June 30
                           --------------------------------------------------
    (millions of dollars)        2009         2008         2009         2008
    -------------------------------------------------------------------------

    Gross sustaining
     capital expenditures         1.1          2.3          3.2          5.7
    Less: proceeds on
     disposal of capital
     assets                      (0.4)        (1.0)         (13)        (1.9)
                           --------------------------------------------------
    Net sustaining capital
     expenditures                 0.7          1.3          1.9          3.8
    Growth capital
     expenditures                 3.2          2.3          3.9          4.8
                           --------------------------------------------------
                           --------------------------------------------------
    Net capital
     expenditures                 3.9          3.6          5.8          8.6
                           --------------------------------------------------
    

    The Partnership's net capital expenditures, including growth and
sustaining capital, totalled $3.9 million in the current period compared to
$3.6 million in the prior period. The increase of $0.3 million over the prior
period was due to increased growth capital expenditures of $0.9 million and
reduced disposal proceeds of $0.6 million partially offset by decreased
sustaining capital expenditures of $1.2 million.
    Gross sustaining capital purchases of $1.1 million were made up primarily
of replacement tractors and trailers, accounting for approximately 82 percent
of the total, with the balance applicable to other operating assets. Net
sustaining capital expenditures were $0.6 million lower than in the prior
period due to reduced trailer purchases. Proceeds on the disposal of capital
assets were $0.6 million less than that recorded in the prior period.
    Increased growth capital spending of $0.9 million was primarily due to
the purchase of $1.5 million of land adjacent to Saskatoon, Saskatchewan which
will be used for a future terminal location. Growth capital expenditures of
$3.2 million in the current period consisted of tractor and trailer purchases
of approximately 53 percent with the remainder being used for the
aforementioned land purchase. Growth capital purchases are funded from
undistributed cash from operations, cash available from notional distributions
on non-cash exchangeable shares and, to the extent required, available cash
and existing lines of credit.
    For the current year-to-date period, net capital expenditures totalled
$5.8 million compared to $8.6 million for the prior year-to-date period. The
$2.8 million decrease in net capital expenditures from the prior year was made
up of a $2.5 million reduction in sustaining capital purchases and $0.9
million less growth capital. This was partially offset by a $0.6 million
reduction in disposal proceeds. Sustaining capital purchases decreased when
compared to the prior year-to-date period due to a reduction in trailer
purchases which reflect the lower equipment utilization experienced in the
current year.
    Net annual capital expenditures relating to sustaining capital
requirements will vary from year to year based on: the economic life of the
capital assets; historical purchase dates; the mix of life cycles expiring in
a given year; other factors affecting equipment cost; disposal proceeds of
replaced assets; and, annual equipment utilization. Sustaining capital
purchases are funded from the Partnership's net cash provided by operations in
the year, cash available from notional distributions on non-cash exchangeable
shares and, thereafter, to the extent required, available credit facilities.
    You are invited to join management of the Partnership on a conference
call at 9:30 a.m. Eastern Time on Thursday, August 13, 2009. North American
participants, please dial 1-888-300-0053; international participants, please
dial ++1 647-427-3420, at least 10 minutes prior to the indicated time.
    A playback of the call will be available from 12:30 p.m. Eastern Time on
Thursday, August 13, 2009 until midnight August 20, 2009. To hear the
playback, please dial 1-800-678-0453 (international participants, please dial
++1 402-220-1458) and when prompted please enter the conference ID number
23382197.


    
    Trimac Income Fund
    Consolidated Balance Sheet
    (unaudited)
    -------------------------------------------------------------------------
    (thousands of dollars)
                                                          As at        As at
                                                        June 30, December 31,
                                                           2009         2008
                                                              $            $
                                                     ------------------------
    Assets

    Current assets
    Cash                                                     22          970
    Interest receivable                                     233          241
    Distributions receivable                                344          719
    Prepaid expenses                                         42          105
                                                     ------------------------

                                                            641        2,035

    Investment in Trimac Transportation Services
     Limited Partnership                                 64,654       67,412
    Note receivable from Trimac Transportation
     Services Inc.                                       35,438       35,438
                                                     ------------------------

                                                        100,733      104,885
                                                     ------------------------
                                                     ------------------------
    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities                 22           74
    Due to associated companies and partnerships              7          967
    Distributions payable                                   501          970
                                                     ------------------------

                                                            530        2,011

    Deferred compensation plan                               93           50
                                                     ------------------------

                                                            623        2,061

    Unitholders' equity                                 100,110      102,824
                                                     ------------------------

                                                        100,733      104,885
                                                     ------------------------
                                                     ------------------------
    

    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 per unit amounts and number of units)


                          Three months Three months  Six months   Six months
                             ended        ended        ended        ended
                            June 30,     June 30,     June 30,     June 30,
                              2009         2008         2009         2008
                           ------------------------  ------------------------
                                    $            $            $            $

    Share of (loss) income
     of Trimac
     Transportation
     Services Limited
     Partnership(1)               (90)         679         (652)         651
      Interest income             707          706        1,389        1,416
      Administrative costs       (200)        (236)        (383)        (438)
                           ------------------------  ------------------------

    Net earnings                  417        1,149          354        1,629

    Other comprehensive
     (loss) income - share
     of Partnership other
     comprehensive (loss)
     income                       (72)          (4)         (47)          20
                           ------------------------  ------------------------

    Comprehensive income          345        1,145          307        1,649

    Opening unitholders'
     equity                   101,275      105,806      102,824      108,079
    Issue of additional
     units                          -          172            -          297
    Distributions declared     (1,510)      (2,908)      (3,021)      (5,810)
                           ------------------------  ------------------------

    Closing unit holders'
     equity                   100,110      104,215      100,110      104,215
                           ------------------------  ------------------------
                           ------------------------  ------------------------

    Basic earnings per
     unit(2)               $   0.0331   $   0.0914   $   0.0281   $   0.1297

    Fully diluted earnings
     (loss) per unit(2)    $   0.0306   $   0.0914   $  (0.0143)  $   0.1224

    Weighted average number
     of units outstanding
     used in computing
     basic earnings per
     unit                  12,584,679   12,564,362   12,584,679   12,564,362

    Number of units
     outstanding used in
     computing diluted
     earnings (loss) per
     unit                  25,532,452   24,294,701   25,532,452   24,294,701

    (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
                                 2009         2008         2009         2008
                                    $            $            $            $
                           --------------------------------------------------
    Net earnings of the
     partnership                1,056        2,615          373        3,209

      Add: Interest expense
       on TTSI debt included
       in Partnership
       earnings                   679        1,019        1,350        2,037
    -------------------------------------------------------------------------
    Adjusted Partnership
     earnings                   1,735        3,634        1,723        5,246

      Less: Purchase price
       allocation
       adjustments:

      Increase in
       amortization of
       capital assets and
       loss on disposal of
       capital assets            (463)        (601)      (1,075)      (1,230)

      Amortization of
       intangible assets       (1,012)      (1,011)      (2,022)      (2,022)
    -------------------------------------------------------------------------

    Partnership earnings
     (loss) after purchase
     price adjustments            260        2,022       (1,374)       1,994
    -------------------------------------------------------------------------

    Share of Partnership
     (loss) earnings              (90)         679         (652)         651
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (2) Pursuant to an investor liquidity agreement, holders of TTSI
        Exchangeable Shares have the right to effectively liquidate their
        10,230,538 shares of TTSI and receive units in the Fund. Following
        the full exercise of such liquidation rights, the Fund would own 100
        percent of the Partnership. The number of units used in the
        calculation of diluted earnings per unit assumes full liquidation at
        the beginning of the period.



    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,
                              2009         2008         2009         2008
                           ------------------------  ------------------------
                                    $            $            $            $
    Cash provided (used)

    Operations
    Net earnings                  417        1,149          354        1,629
    Add items not affecting
     cash:
      Share of loss (income)
       from Trimac
       Transportation
       Services Limited
       Partnership                 90         (679)         652         (651)
      Deferred compensation
       costs                       37           26           43           26
                           ------------------------  ------------------------

    Cash provided by
     operations                   544        1,147        1,049        1,655
    Net change in non-cash
     working capital             (153)          30         (941)         199
                           ------------------------  ------------------------

    Net cash provided by
     operations                   391        1,177          108        1,854
                           ------------------------  ------------------------

    Investments
    Distributions from
     Trimac Transportation
     Services Limited
     Partnership                1,018        1,765        2,434        4,233
                           ------------------------  ------------------------

    Cash provided by
     investing activities       1,018        1,765        2,434        4,233
                           ------------------------  ------------------------

    Financing
    Distributions paid         (1,512)      (2,906)      (3,490)      (5,808)
                           ------------------------  ------------------------

    Cash used in financing
     activities                (1,512)      (2,906)      (3,490)      (5,808)
                           ------------------------  ------------------------

    (Decrease) increase in
     cash                        (103)          36         (948)         279
    Cash, beginning of
     period                       125          647          970          404
                           ------------------------  ------------------------

    Cash, end of period            22          683           22          683
                           ------------------------  ------------------------
                           ------------------------  ------------------------

    Supplemental information
      Cash received from
       interest (net)             715          718        1,397        1,421

    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 31,
                                                           2009         2008
                                                              $            $
                                                     ------------------------
    Assets

    Current assets
    Cash                                                  5,479        2,350
    Accounts receivable                                  28,209       31,350
    Materials and supplies                                1,403        1,626
    Due from related parties                              1,764        3,088
    Income taxes recoverable                                128            -
    Prepaid expenses                                     10,126       10,315
                                                     ------------------------

                                                         47,109       48,729

    Capital assets                                       88,905       92,708
    Intangible assets                                     3,014        3,495
    Goodwill                                              6,182        6,182
    Other                                                 1,599        1,622
                                                     ------------------------

                                                        146,809      152,736
                                                     ------------------------
                                                     ------------------------
    Liabilities

    Current liabilities
    Bank indebtedness                                     2,926        1,969
    Accounts payable and accrued liabilities             26,877       29,282
    Distributions payable                                 3,496        3,080
    Income taxes payable                                      -          570
    Due to related parties                                2,243        1,223
    Current maturities of long-term debt                 18,666       18,666
                                                     ------------------------

                                                         54,208       54,790

    Long-term debt                                       45,551       44,723
    Future income taxes                                   1,223        1,207
    Other long-term liabilities                           1,395        1,253
                                                     ------------------------

                                                        102,377      101,973

    Partnership equity                                   44,432       50,763
                                                     ------------------------

                                                        146,809      152,736
                                                     ------------------------
                                                     ------------------------

    Commitments and contingencies

    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
                             2009         2008         2009         2008
                           ------------------------  ------------------------
                                    $            $            $            $
    Revenue
    Transportation revenue     59,555       68,732      119,004      135,319
    Fuel surcharges             3,758       14,289        8,441       24,453
                           ------------------------  ------------------------
                               63,313       83,021      127,445      159,772
                           ------------------------  ------------------------

    Operating costs and
     expenses
    Direct                     45,356       61,780       93,346      120,123
    Selling and
     administrative            10,746       11,783       21,367       23,266
    Depreciation and
     amortization               5,109        5,546       10,327       10,962
    Gain on sale of assets,
     net                          (84)        (149)        (274)        (526)
                           ------------------------  ------------------------

    Operating expense          61,127       78,960      124,766      153,825
                           ------------------------  ------------------------

    Operating earnings          2,186        4,061        2,679        5,947

    Interest on long-term
     debt                       1,001        1,279        1,985        2,440
    Other interest expense         22           15           45           26
                           ------------------------  ------------------------
                                1,023        1,294        2,030        2,466
                           ------------------------  ------------------------
    Earnings before income
     taxes                      1,163        2,767          649        3,481

    Income tax expense
     (recovery)
    Current                       102          172          263          298
    Future                          5          (20)          13          (26)
                           ------------------------  ------------------------
                                  107          152          276          272
                           ------------------------  ------------------------

    Net earnings                1,056        2,615          373        3,209

    Other comprehensive
     (loss) income - net
     change in cumulative
     translation adjustments     (289)         (13)        (189)          57
                           ------------------------  ------------------------

    Comprehensive income          767        2,602          184        3,266

    Opening partnership
     equity                    46,948       51,073       50,763       55,186
    Distributions declared     (3,283)      (4,674)      (6,515)      (9,451)
                           ------------------------  ------------------------

    Closing partnership
     equity                    44,432       49,001       44,432       49,001
                           ------------------------  ------------------------
                           ------------------------  ------------------------

    Accumulated other
     comprehensive income
     (losses) (included in
     partnership equity)
    ----------------------
    Opening balance               364         (199)         264         (269)
    Other comprehensive
     (loss) income               (289)         (13)        (189)          57
                           ------------------------  ------------------------

    Closing balance                75         (212)          75         (212)
                           ------------------------  ------------------------
                           ------------------------  ------------------------



    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
                              2009         2008         2009         2008
                           ------------------------  ------------------------
                                    $            $            $            $

    Cash provided (used)

    Operations
    Net earnings                1,056        2,615          373        3,209
    Add back (deduct) items
     not affecting cash:
      Depreciation and
       amortization             5,109        5,546       10,327       10,962
      Gain on sale of
       assets, net                (84)        (149)        (274)        (526)
      Future income tax
       expense (recovery)           5          (20)          13          (26)
      Other non-cash items        150         (151)         164         (155)
                           ------------------------  ------------------------

    Cash provided by
     operations                 6,236        7,841       10,603       13,464

    Net change in non-cash
     working capital            2,251       (2,803)       2,922           61
                           ------------------------  ------------------------

    Net cash provided by
     operations                 8,487        5,038       13,525       13,525
                           ------------------------  ------------------------

    Investments
    Purchases of capital
     assets                    (4,266)      (4,572)      (7,096)     (10,504)
    Proceeds on sale of
     capital assets               367          916        1,327        1,859

    Decrease in accounts
     payable and accrued
     liabilities relating
     to investing
     activities                (1,555)        (321)        (210)        (388)
    Decrease in accounts
     receivable relating
     to investing
     activities                     -           51            5           14
    Other                        (173)          (5)        (108)          34
                           ------------------------  ------------------------

    Cash used in investing
     activities                (5,627)      (3,931)      (6,082)      (8,985)
                           ------------------------  ------------------------

    Financing
    (Decrease) increase in
     long-term debt              (729)       3,833          828        6,452
    Distributions paid         (2,795)      (5,050)      (6,099)     (10,607)
                           ------------------------  ------------------------

    Cash used in financing
     activities                (3,524)      (1,217)      (5,271)      (4,155)
                           ------------------------  ------------------------

    (Decrease) increase in
     cash                        (664)        (110)       2,172          385
    Cash (bank indebtedness),
     beginning of period        3,217          257          381         (238)
                           ------------------------  ------------------------

    Cash, end of period         2,553          147        2,553          147
                           ------------------------  ------------------------
                           ------------------------  ------------------------

    Supplemental information
    Income taxes paid             296          200          961          221
    Interest paid                 346          166        2,087        2,350

    Cash consists of the
     following:
      Cash                                                5,479          597
      Bank indebtedness                                  (2,926)        (450)
                                                     ------------------------
                                                          2,553          147
                                                     ------------------------
                                                     ------------------------

    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 & 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

Organization Profile

Trimac Transportation Ltd.

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