Vitran reports 2008 third quarter results



    
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    REMINDER:

    Vitran management will conduct a conference call and webcast today,
    October 22, at 1:00 p.m. ET, to discuss the Company's 2008 third quarter
    results
    Conference call dial-in: 800/738-1032
    Live Webcast: www.vitran.com (select "Investor Relations")
    -------------------------------------------------------------------------
    

    TORONTO, Oct. 22 /CNW/ - Vitran Corporation Inc. (NASDAQ:   VTNC, TSX:
VTN), a North American transportation and logistics firm, today announced
financial results for the third quarter of 2008 and the nine-month period
ended September 30, 2008 (all figures reported in $U.S.).
    Vitran achieved record revenue of $198.6 million during the three-month
period, and net income of $2.1 million, or $0.15 per diluted share. In the
comparable 2007 third quarter, the Company reported revenue of $171.9 million,
and net income of $3.1 million, or $0.23 per diluted share.
    "In the 2008 third quarter, the economic slowdown and significant
industry pricing pressures negatively impacted our LTL operating ratio, and
partially offset record revenues that were driven by a strong performance at
our logistics unit and 35 percent growth in the Company's LTL cross-border
revenue," stated Vitran President and Chief Executive Officer Rick Gaetz.
    "Despite the ongoing economic softness being experienced throughout North
America and the uncertainty of when we will see a definitive turnaround,
Vitran is operating more efficiently and effectively today as a result of
several recently completed internal initiatives, including the successful
launch of our hybrid U.S. LTL IT platform, the standardization of the U.S. LTL
wage and benefit structure, and the recent openings of new cross-dock and
retail supply chain facilities, located in Toronto.
    "I am also pleased to report that Vitran's overlap terminal integration
was successfully completed one week ahead of schedule, on October 12, 2008.
With the massive, multi-phase integration project now behind us, we are in a
more favorable position to deal with the challenges of a slowing North
American economy," concluded Mr. Gaetz.

    Segmented Results

    Income from operations at Vitran's LTL (less-than-truckload) segment
during the 2008 third quarter was $3.0 million. LTL segment revenue grew
10.6 percent to $166.2 million, and the LTL OR (operating ratio) was 98.2 for
the three-month period, versus an OR of 96.2 in the prior year quarter. LTL
revenue per shipment rose 11.2 percent and revenue per hundredweight increased
by 8.5 percent during Q3. Tonnage rose 2.3 percent, while the number of
shipments declined by 0.2 percent.
    Vitran's Logistics segment revenue increased 70.7 percent to $23.4
million and income from operations rose 81.4 percent in the 2008 third quarter
to a record $1.5 million. The segment's OR improved to 93.8 in the 2008 third
quarter, versus 94.2 in the year-earlier quarter. These record results were
achieved despite continued weakness in the North American retail sector. The
Truckload segment achieved income from operations in the quarter of $308,000,
compared to $420,000 in 2007, and the OR was 96.6 in the quarter, versus a
94.7 OR in the prior year quarter.

    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.


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

                                                       Sept. 30,     Dec. 31,
                                                           2008         2007
                                                     (unaudited)    (audited)
    Assets
    Current assets:
      Accounts receivable                             $  93,250    $  74,261
      Inventory, deposits and prepaid expenses           11,155       11,325
      Income and other taxes recoverable                  1,837        2,232
      Deferred income taxes                               3,097        2,599
                                                     -----------  -----------
                                                        109,339       90,417

    Property and equipment                              162,068      169,062
    Intangible assets                                    13,910       13,645
    Goodwill                                            121,537      124,375
                                                     -----------  -----------
                                                      $ 406,854    $ 397,499
                                                     -----------  -----------
                                                     -----------  -----------
    Liabilities and Shareholders' Equity
    Current liabilities:
      Bank overdraft                                  $     690    $     390
      Accounts payable and accrued liabilities           76,117       67,468
      Current portion of long-term debt                  15,393       18,144
                                                     -----------  -----------
                                                         92,200       86,002

    Long-term debt                                      107,578      109,831
    Other                                                 3,438        3,512
    Deferred income taxes                                 7,431        7,810

    Shareholders' equity:
      Common shares                                      77,500       77,246
      Additional paid-in capital                          3,284        2,436
      Retained earnings                                 112,255      104,478
      Accumulated other comprehensive income              3,168        6,184
                                                     -----------  -----------
                                                        196,207      190,344
                                                     -----------  -----------
                                                      $ 406,854    $ 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             Nine Months
                                     Ended Sept. 30,         Ended Sept. 30,
                                    2008        2007        2008        2007
                                    ----        ----        ----        ----
    Revenues                  $  198,605  $  171,927  $  572,102  $  496,207
    Operating expenses           173,414     145,457     491,615     414,693
    Selling, general and
     administrative expenses      16,162      15,633      50,852      46,015
    Other income                    (155)        (53)       (288)       (125)
    Depreciation and
     amortization expense          5,203       5,321      15,968      15,375
                              ----------- ----------- ----------- -----------
                                 194,624     166,358     558,147     475,958

    Income from operations
     before undernoted             3,981       5,569      13,955      20,249

    Interest expense, net          2,158       2,325       6,410       6,504

    Income from operations
     before income taxes           1,823       3,244       7,545      13,745
    Income taxes                    (243)        123        (232)      1,704
                              ----------- ----------- ----------- -----------
    Net income                $    2,066  $    3,121  $    7,777  $   12,041
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    Basic income per share -
      Net income              $     0.15  $     0.23  $     0.58  $     0.89
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    Diluted income per share -
      Net income              $     0.15  $     0.23  $     0.57  $     0.88
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    Weighted average number
     of shares
      Basic                   13,493,757  13,475,685  13,480,805  13,459,180
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
      Diluted                 13,647,774  13,668,819  13,632,628  13,660,723
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

                     (Statements of Cash Flows follows)



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

                                   Three       Three        Nine        Nine
                                  months      months      months      months
                                   Ended       Ended       Ended       Ended
                                Sept. 30,   Sept. 30,   Sept. 30,   Sept. 30,
                                    2008        2007        2008        2007
    Cash provided by (used in):
    Operations:
      Net income              $    2,066  $    3,121  $    7,777  $   12,041
      Items not involving
       cash from operations
        Depreciation and
         amortization expense      5,203       5,321      15,968      15,375
        Deferred income taxes        (21)     (2,608)         83         (13)
        Share-based
         compensation expense        279         261         848         720
        Gain on sale of
         property and equipment     (155)        (53)       (288)       (125)
      Change in non-cash
       working capital
       components                    679       4,461      (9,853)     (1,302)
                              ----------- ----------- ----------- -----------
                                   8,051      10,503      14,535      26,696
    Investments:
    Purchase of property and
     equipment                    (1,692)     (5,458)    (10,840)    (16,878)
    Proceeds on sale of
     property and equipment          935          74       1,387         312
    Additional payment due to
     acquisition of subsidiary         -           -           -      (6,921)
                              ----------- ----------- ----------- -----------
                                    (757)     (5,384)     (9,453)    (23,487)
    Financing:
    Revolving credit facility
     and bank overdraft           (2,987)      3,468       8,341      13,590
    Repayment of long-term debt   (2,580)     (2,255)     (7,726)     (6,765)
    Financing costs                    -        (642)          -        (642)
    Repayment of capital leases   (2,078)     (1,858)     (6,320)     (5,172)
    Issue of common shares upon
     exercise of stock options        76         196         254         403
                              ----------- ----------- ----------- -----------
                                  (7,569)     (1,091)     (5,451)      1,414

    Effect of translation
     adjustment on cash              275      (1,256)        369      (2,258)
                              ----------- ----------- ----------- -----------
    Increase in cash position          -       2,772           -       2,365
    Cash and cash equivalent
     position, beginning of
     period                            -       1,047           -       1,454
                              ----------- ----------- ----------- -----------
    Cash and cash equivalent
     position, end of period  $        -  $    3,819  $        -  $    3,819
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Change in non-cash
     working capital
     components:
      Accounts receivable     $      587  $   (2,004) $  (18,989) $  (15,368)
      Inventory, deposits and
       prepaid expenses            1,083         233         170       1,316
      Income and other taxes
       receivable/payable           (651)      3,166         317        (732)
      Accounts payable and
       accrued liabilities          (340)      3,066       8,649      13,482
                              ----------- ----------- ----------- -----------
                              $      679  $    4,461  $   (9,853) $   (1,302)
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    Supplemental cash flow
     information
    Capital lease additions   $    1,016  $    4,561  $    1,016  $    8,301

                 (additional financial information follows)



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

    -----------------------------------   -----------------------------------
    For the                               For the
    quarter ended                         quarter ended
    Sept. 30, 2008                        Sept. 30, 2007
    -----------------------------------   -----------------------------------
                      Inc. from                            Inc. from
             Revenue  Operations   OR%            Revenue  Operations    OR%
    -----------------------------------   -----------------------------------
    LTL      166,227     3,043    98.2    LTL     150,283     5,687     96.2
    -----------------------------------   -----------------------------------
    LOG       23,375     1,451    93.8    LOG      13,690       800     94.2
    -----------------------------------   -----------------------------------
    TL         9,003       308    96.6    TL        7,954       420     94.7
    -----------------------------------   -----------------------------------


    -----------------------------------   -----------------------------------
    For the nine                          For the nine
    months ended                          months ended
    Sept. 30, 2008                        Sept. 30, 2007
    -----------------------------------   -----------------------------------
                      Inc. from                            Inc. from
             Revenue  Operations   OR%            Revenue  Operations    OR%
    -----------------------------------   -----------------------------------
    LTL      483,803    13,721    97.2    LTL     437,055    20,920     95.2
    -----------------------------------   -----------------------------------
    LOG       62,449     3,002    95.2    LOG      34,579     1,976     94.3
    -----------------------------------   -----------------------------------
    TL        25,850     1,008    96.1    TL       24,573     1,119     95.4
    -----------------------------------   -----------------------------------


                    LTL SEGMENT - Statistical Information
                                 (Unaudited)

            --------------------------------------------------
                            For the quarter ended
                             September 30, 2008
             --------------------------------------------------
                                        LTL          Q. over Q.
             ($U.S.)                  Division      % Change(*)
             --------------------------------------------------
             Revenue (000's)       $    166,227          10.6
             --------------------------------------------------
             No. of Shipments         1,029,978          (0.2)
             --------------------------------------------------
             Weight (000's lbs)       1,564,394           2.3
             --------------------------------------------------
             Revenue per shipment  $     161.39          11.2
             --------------------------------------------------
             Revenue per CWT       $      10.63           8.5
             --------------------------------------------------


             --------------------------------------------------
                                Year-to-date
                             September 30, 2008
             --------------------------------------------------
                                        LTL          Q. over Q.
             ($U.S.)                  Division      % Change(*)
             --------------------------------------------------
             Revenue (000's)       $    483,803          10.7
             --------------------------------------------------
             No. of Shipments         3,045,489          (0.8)
             --------------------------------------------------
             Weight (000's lbs)       4,642,321           1.9
             --------------------------------------------------
             Revenue per shipment  $     158.86           9.4
             --------------------------------------------------
             Revenue per CWT       $      10.42           6.4
             --------------------------------------------------

    (*) All % changes have been normalized for the impact of foreign exchange
        fluctuation, period over period
    

    %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,
Norberto Aja, Jaffoni & Collins Incorporated, (212) 835-8500 or VTNC@jcir.com

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VITRAN CORPORATION INC.

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