Vitran reports 2008 second quarter diluted EPS of $0.34 on record revenue of $196 million



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    REMINDER:

    Vitran management will conduct a conference call and webcast today,
    July 23, at 11:00 a.m. ET, to discuss the Company's 2008 second quarter
    results
    Conference call dial-in: 800/205-6183
    Live Webcast: www.vitran.com (select "Investor Relations")
    -------------------------------------------------------------------------

    TORONTO, July 23 /CNW/ - Vitran Corporation Inc. (NASDAQ:   VTNC, TSX:
VTN), a North American transportation and logistics firm, today announced
financial results for the second quarter of 2008 and the six-month period
ended June 30, 2008 (all figures reported in $U.S.).
    Vitran achieved record revenue of $196.0 million during the three-month
period, and net income of $4.6 million, or $0.34 per diluted share. In the
comparable 2007 second quarter, the Company reported revenue of
$170.1 million, and net income of $5.5 million, or $0.41 per diluted share.
    "We are pleased with Vitran's top and bottom line performance in the 2008
second quarter, especially in light of the continued economic softness and the
challenges of operating in the face of record fuel costs," stated Vitran
President and Chief Executive Officer Rick Gaetz. "Our sequential earnings
growth was highlighted by a significant 370 basis point improvement in
Vitran's LTL (less than truckload) Operating Ratio (OR), compared to the 2008
first quarter.
    "The sequential improvements were driven by double-digit growth in our
revenue per shipment, and a more than seven percent increase in revenue per
hundredweight during the period. Cross-border revenue also rose 32 percent,
compared to the 2007 second quarter. Most importantly, these gains were
achieved in the face of the successful implementation of our new IT operating
system.
    "During the quarter, we announced the launch of the Company's U.S. LTL IT
operating platform, which is expected to facilitate revenue growth, increase
productivity, streamline our cost structure and help deliver bottom line
improvements. With this integral piece of our business model now in place, we
are focusing on streamlining Vitran's terminal operations in several
Midwestern U.S. states - merging 27 freight facilities into 13 - which is
expected to further enhance operating efficiency through the elimination of
redundant real estate that came in our PJAX acquisition. With the completion
of these initiatives, we will turn our attention to cross-selling Vitran's LTL
business both inter-regionally and across the border between the U.S. and
Canada."

    Segmented Results

    Income from operations at Vitran's LTL (less-than-truckload) segment was
$8.5 million in the 2008 second quarter. LTL segment revenue grew 11.6 percent
to $168.2 million, and the LTL OR (operating ratio) was 94.9 for the
three- month period, versus an OR of 94.0 in the prior year quarter. LTL
metrics improved during the quarter, with revenue per shipment rising
10.2 percent, revenue per hundredweight increasing 7.1 percent. Tonnage rose
2.0 percent, while the number of shipments was down 0.8 percent.
    Income from operations rose 13.1 percent at Vitran's Logistics segment in
the 2008 second quarter to $831,000. The segment's OR was 95.7, versus 93.4 in
the year-earlier quarter. The Truckload segment achieved income from
operations for the three-month period of $321,000, compared to $405,000 in
2007, and the OR was 96.2 in the quarter, versus a 95.1 OR in the prior year
period.

    About Vitran Corporation Inc.

    Vitran Corporation Inc. is a North American group of transportation
companies offering less-than-truckload, logistics, truckload, and freight
brokerage services. To find out more about Vitran Corporation Inc.
(NASDAQ:  VTNC, TSX:VTN), visit the website at www.vitran.com.

    This press release contains forward-looking statements within the meaning
of the United States Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities laws. Forward-looking statements may be
generally identifiable by use of the words "believe", "anticipate", "intend",
"estimate", "expect", "project", "may", "plans", "continue", "will", "focus
should" "endeavor" or the negative of these words or other variations on these
words or comparable terminology. These forward-looking statements are based on
current expectations and are naturally subject to uncertainty and changes in
circumstances that may cause actual results to differ materially from those
expressed or implied by such forward-looking statements. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause Vitran's actual results, performance or achievements to differ
materially from those projected in the forward-looking statements. Factors
that may cause such differences include, but are not limited to, technological
change, increases in fuel costs, regulatory changes, the general health of the
economy, seasonal fluctuations, unanticipated changes in railroad capacities,
exposure to credit risks, changes in labour relations and competitive factors.
More detailed information about these and other factors is included in the
annual MD&A on Form 10K under the heading "General Risks and Uncertainties."
Many of these factors are beyond the Company's control; therefore, future
events may vary substantially from what the Company currently foresees. You
should not place undue reliance on such forward-looking statements. Vitran
Corporation Inc. does not assume the obligation to revise or update these
forward-looking statements after the date of this document or to revise them
to reflect the occurrence of future unanticipated events, except as may be
required under applicable securities laws.

    
                               (tables follow)


                           Vitran Corporation Inc.
                         Consolidated Balance Sheets
               (in thousands of United States dollars, US GAAP)

                                               June 30, 2008   Dec. 31, 2007
                                                  (unaudited)       (audited)
    Assets
    Current assets:
      Accounts receivable                          $  93,837       $  74,261
      Inventory, deposits and prepaid expenses        12,238          11,325
      Income and other taxes receivable                1,237           2,232
      Deferred income taxes                            3,205           2,599
                                                  -----------     -----------
                                                     110,517          90,417

    Property and equipment                           166,881         169,062
      Intangible assets                               14,542          13,645
      Goodwill                                       121,967         124,375
                                                  -----------     -----------
                                                   $ 413,907       $ 397,499
                                                  -----------     -----------
                                                  -----------     -----------

    Liabilities and Shareholders' Equity
    Current liabilities:
      Bank overdraft                               $   3,677       $     390
      Accounts payable and accrued liabilities        76,457          67,468
      Current portion of long-term debt               16,755          18,144
                                                  -----------     -----------
                                                      96,889          86,002

    Long-term debt                                   109,858         109,831
    Other                                              3,560           3,512
    Deferred income taxes                              8,058           7,810

    Shareholders' equity:
      Common shares                                   77,424          77,246
      Additional paid-in capital                       3,005           2,436
      Retained earnings                              110,189         104,478
      Accumulated other comprehensive income           4,924           6,184
                                                  -----------     -----------
                                                     195,542         190,344
                                                  -----------     -----------
                                                   $ 413,907       $ 397,499
                                                  -----------     -----------
                                                  -----------     -----------

                 (Consolidated Statements of Income follows)



                           Vitran Corporation Inc.
                      Consolidated Statements Of Income
                                 (Unaudited)
       (in thousands of United States dollars except per share amounts,
                                   US GAAP)

                                      Three Months             Six Months
                                      Ended June 30,          Ended June 30,

                                    2008        2007        2008        2007
                                    ----        ----        ----        ----

    Revenues                  $  195,990  $  170,144  $  373,497  $  324,280
    Operating expenses           165,102     140,780     318,201     269,236
    Selling, general and
     administrative expenses      17,769      15,283      34,690      30,382
    Other income                    (134)       (101)       (133)        (72)
    Depreciation and
     amortization expense          5,205       5,109      10,765      10,054
                              ----------- ----------- ----------- -----------
                                 187,942     161,071     365,523     309,600

    Income from operations
     before undernoted             8,048       9,073       9,974      14,680

    Interest expense, net          2,122       2,115       4,252       4,179

    Income from operations
     before income taxes           5,926       6,958       5,722      10,501

    Income taxes                   1,349       1,425          11       1,581
                              ----------- ----------- ----------- -----------

    Net income                $    4,577  $    5,533  $    5,711  $    8,920
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Basic income per share -
      Net income              $     0.34  $     0.41  $     0.42  $     0.66
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Diluted income per share -
      Net income              $     0.34  $     0.41  $     0.42  $     0.65
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Weighted average number
     of shares
      Basic                   13,483,159  13,463,374  13,474,258  13,450,790
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

      Diluted                 13,630,974  13,661,467  13,621,759  13,656,765
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

                     (Statements of Cash Flows follows)



                           VITRAN CORPORATION INC.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (Unaudited)
               (In thousands of United States dollars, US GAAP)

                                  Three       Three        Six         Six
                                  months      months      months      months
                                  Ended       Ended       Ended       Ended
                                 Jun. 30,    Jun. 30,    Jun. 30,    Jun. 30,
                                   2008        2007        2008        2007
    Cash provided by (used in):

    Operations:
      Net income               $   4,577   $   5,533   $   5,711   $   8,920
      Items not involving cash
       from operations
        Depreciation and
         amortization expense      5,205       5,109      10,765      10,054
        Deferred income taxes      1,302       1,628         104       2,595
        Share-based compensation
         expense                     292         251         569         459
        Gain on sale of property
         and equipment              (134)       (101)       (133)        (72)
      Change in non-cash working
       capital components         (9,419)     (2,066)    (10,532)     (5,763)
                               ----------  ----------  ----------  ----------
                                   1,823      10,354       6,484      16,193

    Investments:
    Purchase of property
     and equipment                (2,040)     (6,870)     (9,148)    (11,420)
    Proceeds on sale of
     property and equipment          261         167         452         238
    Additional payment due
     to acquisition
     of subsidiary                     -      (6,383)          -      (6,921)
                               ----------  ----------  ----------  ----------
                                  (1,779)    (13,086)     (8,696)    (18,103)

    Financing:
    Revolving credit facility
     and bank overdraft            4,703       6,838      11,328      10,122
    Repayment of long-term
     debt                         (2,575)     (2,255)     (5,146)     (4,510)
    Repayment of capital leases   (2,001)     (1,674)     (4,242)     (3,314)
    Issue of common shares
     upon exercise of stock
     options                           -          80         178         207
                               ----------  ----------  ----------  ----------
                                     127       2,989       2,118       2,505

    Effect of translation
     adjustment on cash             (171)       (753)         94      (1,002)
                               ----------  ----------  ----------  ----------
    Decrease in cash position          -        (496)          -        (407)
    Cash and cash equivalent
     position, beginning
     of period                         -       1,543           -       1,454
                               ----------  ----------  ----------  ----------
    Cash position, end
     of period                 $       -   $   1,047   $       -   $   1,047
                               ----------  ----------  ----------  ----------
                               ----------  ----------  ----------  ----------

    Change in non-cash working
     capital components:
      Accounts receivable      $ (11,905)  $  (6,354)  $ (19,576)  $ (13,364)
      Inventory, deposits and
       prepaid expenses             (512)        696        (913)      1,083
      Income and other taxes
       receivable/payable           (163)     (1,301)        968      (3,898)
      Accounts payable and
       accrued liabilities         3,161       4,893       8,989      10,416
                               ----------  ----------  ----------  ----------
                               $  (9,419)  $  (2,066)  $ (10,532)  $  (5,763)
                               ----------  ----------  ----------  ----------
                               ----------  ----------  ----------  ----------

    Supplemental cash flow
     information

    Capital lease additions    $       -   $   3,740   $       -   $   3,740

                 (additional financial information follows)



                Supplementary Segmented Financial Information
             (in thousands of United States dollars) (Unaudited)

    -----------------------------------   -----------------------------------
       For the                               For the
    quarter ended                         quarter ended
    June 30, 2008                         June 30, 2007
    -----------------------------------   -----------------------------------
                      Inc. from                            Inc. from
             Revenue  Operations   OR%            Revenue  Operations   OR%
    -----------------------------------   -----------------------------------
    LTL      168,161    8,541     94.9    LTL      150,615    9,002     94.0
    -----------------------------------   -----------------------------------
    LOG       19,314      831     95.7    LOG       11,225      735     93.4
    -----------------------------------   -----------------------------------
    TL         8,515      321     96.2    TL         8,304      405     95.1
    -----------------------------------   -----------------------------------


    -----------------------------------   -----------------------------------
     For the six                           For the six
    months ended                          months ended
    June 30, 2008                         June 30, 2007
    -----------------------------------   -----------------------------------
                      Inc. from                             Inc. from
             Revenue  Operations   OR%             Revenue  Operations   OR%
    -----------------------------------   -----------------------------------
    LTL      317,576   10,678     96.6    LTL      286,772   15,232     94.7
    -----------------------------------   -----------------------------------
    LOG       39,074    1,551     96.0    LOG       20,888    1,175     94.4
    -----------------------------------   -----------------------------------
    TL        16,847      700     95.8    TL        16,620      700     95.8
    -----------------------------------   -----------------------------------


                    LTL SEGMENT - Statistical Information
                                 (Unaudited)

              --------------------------------------------------
                            For the quarter ended
                                June 30, 2008
              --------------------------------------------------
                                         LTL          Q. over Q.
              ($U.S.)                  Division        % Change
              --------------------------------------------------
              Revenue (000's)        $   168,161         11.6
              --------------------------------------------------
              No. of Shipments         1,037,700         (0.8)
              --------------------------------------------------
              Weight (000's lbs)       1,587,453          2.0
              --------------------------------------------------
              Revenue per shipment   $    162.05         10.2
              --------------------------------------------------
              Revenue per CWT        $     10.59          7.1
              --------------------------------------------------


              --------------------------------------------------
                                 Year-to-date
              --------------------------------------------------
                                         LTL         Yr.-to-date
              ($U.S.)                  Division        % Change
              --------------------------------------------------
              Revenue (000's)        $   317,576         10.7
              --------------------------------------------------
              No. of Shipments         2,015,511         (1.2)
              --------------------------------------------------
              Weight (000's lbs)       3,077,927          1.8
              --------------------------------------------------
              Revenue per shipment   $    157.57          8.4
              --------------------------------------------------
              Revenue per CWT        $     10.32          5.3
              --------------------------------------------------
    

    %SEDAR: 00004231E          %CIK: 0000946823




For further information:

For further information: Richard Gaetz, President/CEO, Sean Washchuk, VP
Finance/CFO, Vitran Corporation Inc., (416) 596-7664; Robert Rinderman, Steven
Hecht, Jaffoni & Collins Incorporated, (212) 835-8500 or VTNC@jcir.com

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VITRAN CORPORATION INC.

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