Vitran reports 2009 third quarter results

    
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                                  REMINDER:
     Vitran management will conduct a conference call and webcast today:
                        October 27, at 11:00 a.m. ET,
             to discuss the Company's 2009 third quarter results
    Conference call dial-in: 1-866-250-4892 or 416-644-3422 (International)
         Live Webcast: www.vitran.com (select "Investor Relations")
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TORONTO, Oct. 27 /CNW/ - Vitran Corporation Inc. (NASDAQ: VTNC, TSX: VTN) ("Vitran" or the "Company), a North American transportation and supply chain management firm, today announced financial results for the third quarter of 2009 and the nine-month period ended September 30, 2009 (all figures reported in $U.S.).

Vitran reported net income of $0.3 million, or $0.02 per diluted share, on revenues of $165.9 million for the quarter ended September 30, 2009. In the comparable 2008 three-month period, the Company achieved net income of $2.1 million, or $0.15 per diluted share on revenue of $198.6 million. The fluctuation in fuel surcharge and foreign exchange on Vitran's Canadian operations accounted for $19.4 million of the revenue decline for the third quarter of 2009 compared to the third quarter of 2008. Therefore consolidated revenue declined 6.7% adjusting for the change in fuel surcharge and foreign exchange rates on Canadian dollar denominated revenue.

In addition the Company completed a private placement of approximately 2.7 million shares of common stock at the price of $8.50 per share, for net proceeds of approximately $21.3 million. The net proceeds of the offering were used to reduce outstanding debt, bolstering the balance sheet, increasing the unused debt capacity and giving the Company added flexibility to execute its operating and capital initiatives.

"Our third quarter accomplishments are meaningful in a very challenging environment, particularly from a pricing and financial perspective, allowing Vitran to continue to take positive steps forward. Our daily U.S. LTL (less-than-truckload) shipment count for the third quarter exceeded the second quarter, our logistics business set a quarterly record for profitability and most importantly we garnered the support of new and existing shareholders with our equity offering," stated Vitran President and Chief Executive Officer, Rick Gaetz.

"In the short-term we posted our second successive quarter of consolidated net income but more importantly positioned the Company to financially weather the economic downturn over the long-run."

"Our retail focused supply chain business executed very well in the quarter, in fact, posted its all-time best profitability despite continued downward pressures on the North American retail economy. I look forward to continued commercial success in our supply chain business going forward."

Segmented Results

The LTL (less-than-truckload) segment posted income from operations for the 2009 third quarter of $1.5 million, with an OR (operating ratio) of 98.9% compared to income from operations of $3.0 million and an OR of 98.2% in the comparable period a year ago. In the comparable third quarters, shipments and tonnage declined 4.9% and 8.7% respectively in the LTL segment. On a sequential quarterly basis our daily shipment count and daily tonnage measures improved 1.7% and 2.2% respectively in the third quarter of 2009 compared to the second quarter of 2009.

Vitran Logistics posted income from operations of $1.7 million and an OR of 91.4% in the third quarter of 2009 compared to income from operations of $1.5 million and OR of 93.8% in the third quarter of 2008. The Truckload ("TL") segment achieved income from operations during the three-month period ended September 30, 2009 of $175,000, compared to $308,000 in 2008, and the TL OR was 98.0%, compared to an OR of 96.6% in the prior year third 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.

    
                               (tables follow)

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

                                               Sept. 30, 2009  Dec. 31, 2008
                                                 (unaudited)     (audited)
    Assets
    Current assets:
      Accounts receivable                        $     77,608   $     65,741
      Inventory, deposits and prepaid expenses         11,764         12,063
      Income and other taxes receivable                 1,923            792
      Deferred income taxes                             4,073          1,877
                                                -------------- --------------
                                                       95,368         80,473

    Property and equipment                            148,851        152,602
    Intangible assets                                  11,386         13,279
    Goodwill                                           17,768         17,057
    Deferred income taxes                              30,691         30,181
                                                -------------- --------------
                                                 $    304,064   $    293,592
                                                -------------- --------------
                                                -------------- --------------

    Liabilities and Shareholders' Equity
    Current liabilities:
      Bank overdraft                             $      4,427   $      3,912
      Accounts payable and accrued liabilities         67,314         63,495
      Current portion of long-term debt                17,724         16,925
                                                -------------- --------------
                                                       89,465         84,332

    Long-term debt                                     74,069         93,477
    Other                                               3,501          4,540

    Shareholders' equity:
      Common shares                                    99,648         77,500
      Additional paid-in capital                        4,128          3,525
      Retained earnings                                31,618         33,253
      Accumulated other comprehensive income (loss)     1,635         (3,035)
                                                -------------- --------------
                                                      137,029        111,243
                                                -------------- --------------
                                                 $    304,064   $    293,592
                                                -------------- --------------
                                                -------------- --------------

                 (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,

                                    2009        2008        2009        2008
                                    ----        ----        ----        ----
    Revenue                    $ 165,916   $ 198,605   $ 464,233   $ 572,102
    Operating expenses           158,580     189,421     447,740     542,179
    Depreciation and
     amortization expense          4,977       5,203      14,951      15,968
                              ----------- ----------- ----------- -----------
                                 163,557     194,624     462,691     558,147

    Income (loss) from
     operations before
     undernoted                    2,359       3,981       1,542      13,955

    Interest expense, net          2,582       2,158       7,292       6,410

    Income (loss) from
     operations before income
     taxes                          (223)      1,823      (5,750)      7,545

    Income (recovery) taxes         (504)       (243)     (4,115)       (232)
                              ----------- ----------- ----------- -----------

    Net income (loss)          $     281   $   2,066   $  (1,635)  $   7,777
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Basic income (loss) per
     share -
      Net income (loss)        $    0.02   $    0.15   $   (0.12)  $    0.58
    Diluted income (loss)
     per share -
      Net income (loss)        $    0.02   $    0.15   $   (0.12)  $    0.57
    Weighted average number
     of shares:
      Basic                   13,886,286  13,493,757  13,628,956  13,480,805
      Diluted                 14,001,903  13,647,774  13,628,956  13,632,628

                     (Statements of Cash Flows follows)



                           Vitran Corporation Inc.
                    Consolidated Statements Of Cash Flows
                                 (Unaudited)
               (in thousands of United States dollars, US GAAP)

                                      Three months            Nine months
                                     ended Sept. 30,         ended Sept. 30,

                                    2009        2008        2009        2008
                                    ----        ----        ----        ----
    Cash provided by (used in):

    Operations:
      Net income (loss)        $     281   $   2,066   $  (1,635)  $   7,777
      Items not involving cash
       from operations:
        Depreciation and
         amortization expense      4,977       5,203      14,951      15,968
        Deferred income taxes       (868)        (21)     (4,154)         83
        Share-based compensation
         expense                     163         279         603         848
        Gain on sale of property
         and equipment                (2)       (155)       (439)       (288)
      Change in non-cash working
       capital components           (956)        679      (8,269)     (9,853)
                              ----------- ----------- ----------- -----------
                                   3,595       8,051       1,057      14,535
    Investments:
      Purchase of property and
       equipment                    (506)     (1,692)     (3,955)    (10,840)
      Proceeds on sale of
       property and equipment         33         935       1,178       1,387
                              ----------- ----------- ----------- -----------
                                    (473)       (757)     (2,777)     (9,453)
    Financing:
      Revolving credit facility
       and bank overdraft        (11,478)     (2,987)      1,601       8,341
      Repayment of long-term
       debt                      (10,768)     (2,580)    (15,304)     (7,726)
      Repayment of capital
       leases                     (1,309)     (2,078)     (4,521)     (6,320)
      Financing costs               (414)          -        (414)          -
      Issue of Common Shares
       in private placement       21,318           -      21,318           -
      Issue of Common Shares
       upon exercise of stock
       options                       333          76         333         254
                              ----------- ----------- ----------- -----------
                                  (2,318)     (7,569)      3,013      (5,451)

    Effect of translation
     adjustment on cash             (804)        275      (1,293)        369

    Increase in cash and
     cash equivalents                  -           -           -           -
    Cash and cash equivalent
     position, beginning of
     period                            -           -           -           -
                              ----------- ----------- ----------- -----------
    Cash and cash equivalent
     position, end of period   $       -   $       -   $       -   $       -
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Change in non-cash
     working capital
     components:
      Accounts receivable      $  (5,378)  $     587   $ (11,867)  $ (18,989)
      Inventory, deposits
       and prepaid expenses        1,531       1,083         713         170
      Income and other taxes
       recoverable/payable           203        (651)       (934)        317
      Accounts payable and
       accrued liabilities         2,688        (340)      3,819       8,649
                              ----------- ----------- ----------- -----------
                               $    (956)  $     679   $  (8,269)  $  (9,853)
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

                 (additional financial information follows)



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

    -----------------------------------  ------------------------------------
    For the quarter ended                For the quarter ended
    Sept. 30, 2009                       Sept. 30, 2008
    -----------------------------------  ------------------------------------
                        Inc. from                            Inc. from
               Revenue Operations   OR%             Revenue Operations   OR%
    -----------------------------------  ------------------------------------
    LTL      $ 137,479   $ 1,502   98.9  LTL      $ 166,227   $ 3,043   98.2
    -----------------------------------  ------------------------------------
    LOG      $  19,810   $ 1,698   91.4  LOG      $  23,375   $ 1,451   93.8
    -----------------------------------  ------------------------------------
    TL       $   8,627   $   175   98.0  TL       $   9,003   $   308   96.6
    -----------------------------------  ------------------------------------

    -----------------------------------  ------------------------------------
    For the nine months ended            For the nine months ended
    Sept. 30, 2009                       Sept. 30, 2008
    -----------------------------------  ------------------------------------
                        Inc. from                            Inc. from
               Revenue Operations   OR%             Revenue Operations   OR%
    -----------------------------------  ------------------------------------
    LTL      $ 384,509   $   (25) 100.0  LTL      $ 483,803  $ 13,721   97.2
    -----------------------------------  ------------------------------------
    LOG      $  54,641   $ 3,552   93.5  LOG      $  62,449  $  3,002   95.2
    -----------------------------------  ------------------------------------
    TL       $  25,083   $   623   97.5  TL       $  25,850  $  1,008   96.1
    -----------------------------------  ------------------------------------

                    LTL SEGMENT - Statistical Information
                                 (Unaudited)

                ---------------------------------------------
                            For the quarter ended
                               Sept. 30, 2009
                               --------------
                ---------------------------------------------
                ($U.S.)                     LTL    Q. over Q.
                                         Division   % Change
                ---------------------------------------------
                Revenue (000's)         $ 137,479  *(16.6%)
                ---------------------------------------------
                No. of Shipments          979,404      (4.9%)
                ---------------------------------------------
                Weight (000's lbs)      1,429,041      (8.7%)
                ---------------------------------------------
                Revenue per shipment    $  140.37  *(12.3%)
                ---------------------------------------------
                Revenue per CWT         $    9.62   *(8.7%)
                ---------------------------------------------


                ---------------------------------------------
                          For the nine months ended
                               Sept. 30, 2009
                               --------------
                ---------------------------------------------
                ($U.S.)                     LTL    Q. over Q.
                                         Division   % Change
                ---------------------------------------------
                Revenue (000's)         $ 384,509  *(17.6%)
                ---------------------------------------------
                No. of Shipments        2,788,780      (8.4%)
                ---------------------------------------------
                Weight (000's lbs)      4,093,058     (11.8%)
                ---------------------------------------------
                Revenue per shipment    $  137.88  *(10.0%)
                ---------------------------------------------
                Revenue per CWT         $    9.39   *(6.6%)
                ---------------------------------------------
    * All % changes have been normalized for the impact of foreign exchange
        fluctuation, period over period
    

SOURCE VITRAN CORPORATION INC.

For further information: For further information: Richard Gaetz, President/CEO; Sean Washchuk, VP Finance/CFO, Vitran Corporation Inc., (416) 596-7664

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VITRAN CORPORATION INC.

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