9.2% growth in fourth-quarter revenue before fuel surcharge
EBITDA margin of 14.0% in the fourth quarter of 2010, up from 12.3% in
Fourth-quarter adjusted net income increase of 17.2%
Solid financial situation to maintain TransForce's status as an active
MONTREAL, Feb. 24 /CNW Telbec/ - TransForce Inc. ("TransForce" or "the
Company") (TSX: TFI), the leader in the Canadian transportation and
logistics industry, today announced its results for the fourth quarter
and full year ended December 31, 2010. As revenue continued to
increase, EBITDA, the Company's most important performance metric,
maintained its upward trend, reaching 14.0% of total revenue during the
fourth quarter, up from 12.3% a year ago.
"A discipline of comprehensive cost management throughout our
organization, increased geographic reach and additional value-added
solutions to our growing customer base combined to generate a solid
performance for TransForce in 2010. This was achieved despite a still
recovering economy, which has not yet returned to pre-recession levels.
Our strong financial situation allowed us to further grow our market
leadership through acquisitions, culminating with the purchase
announcement of Dynamex late in the fourth quarter. This latest
transaction is highly strategic and is expected to be immediately
accretive to TransForce's 2011 earnings," said Alain Bédard, Chairman,
President and Chief Executive Officer of TransForce.
Quarters ended December 31
Years ended December 31
(in millions of dollars, except per share data)
Revenue before fuel surcharge
Adjusted net income2
Per share - diluted ($)
Net income (net loss)
Per share - diluted ($)
Weighted avg. number of shares outst. (basic, in thousands)
1 Earnings before interest, income taxes, depreciation, amortization,
change in fair value of interest rate derivatives, goodwill impairment,
remeasurement to fair value of existing interest in acquiree, gain on
business acquisition and gain or loss on disposal of property, plant
2 Excluding the after-tax effect of changes in the fair value of
derivatives and of items that are not in the Company's normal business.
Consolidated total revenue increased 10.5% to $539.7 million. Excluding
fuel surcharge, revenue rose 9.2% to $494.3 million mostly resulting
from the acquisition of ATS Retail Solutions ("ATS") in November 2009
and of Speedy Heavy Hauling Inc. ("Speedy") in August 2010. Overall
volume increased slightly, while pricing firmed up in the Package and
Courier and Specialized Services segments.
Fourth-quarter EBITDA amounted to $75.8 million, or 14.0% of total
revenue, up significantly from $60.3 million, or 12.3% of total
revenue, in the corresponding period a year earlier. This improvement
reflects the Company's comprehensive asset optimization and cost
management initiatives, as well as enhanced focus on value-added
services, which more than offset the impact of a stronger
year-over-year Canadian currency. TransForce also incurred
non-recurring restructuring costs of $1.7 million related to employee
termination in the fourth quarter of 2010.
Adjusted net income, which excludes the after-tax effect of changes in
the fair value of derivatives and of items that are not in the
Company's normal business, rose 17.2% to $20.9 million, or $0.22 per
share, fully diluted, from $17.8 million, or $0.19 per share, fully
diluted, last year. Net income stood at $35.6 million, or $0.37 per
share, fully diluted, as opposed to a net loss of $27.2 million, or
$0.29 per share, fully diluted, in the fourth quarter of 2009. Last
year's results included a goodwill impairment charge of $45.0 million,
or $0.47 per share, related to energy sector services.
Reflecting improved profitability, cash flow from operating activities,
before the net change in non-cash operating working capital, reached
$66.9 million, representing an increase of 32.1% over $50.7 million a
Package and Courier revenue before fuel surcharge totalled $108.5 million in the fourth
quarter of 2010, versus $87.0 million in the prior year. The 24.7%
increase is mainly attributable to the acquisition of ATS and the new
contract for Canpar to supply courier services to the Government of
Ontario. Reflecting improved efficiencies, segment EBITDA reached $21.4
million, up from $16.3 million a year ago.
Less-Than-Truckload ("LTL") fourth-quarter revenue before fuel surcharge decreased 5.9% to
$110.3 million, as weaker pricing, the appreciation of the Canadian
dollar and route consolidation more than offset a slight improvement in
freight volume. EBITDA was negatively impacted by pricing, unfavourable
currency movements as well as non-recurring expenses of $2.0 million
for employee termination and integration costs related to the
consolidation of certain operating companies. As a result, EBITDA
declined to $7.1 million, versus $9.6 million last year.
Truckload ("TL") revenue before fuel surcharge was $150.0 million in the fourth
quarter of 2010, stable compared with the corresponding period in 2009.
A better fleet utilization, including a reduction of approximately 100
power units in comparison with the year-earlier period, yielded a 3.6%
increase in EBITDA to $16.8 million, up from $16.2 million last year.
Specialized Services fourth-quarter revenue before fuel surcharge reached $141.1 million, up
from $110.8 million a year earlier. This 27.3% increase stems mainly
from the acquisition of Speedy and solid internal growth in energy
sector services. EBITDA rose to $24.4 million, from $14.0 million a
year ago, because of the aforementioned factors as well as a better
service mix in waste management operations due to increased landfill
and compost processing volumes.
Total revenue was $2.0 billion in 2010 compared with $1.8 billion in
2009. Excluding fuel surcharge, revenue grew 7.1% to $1.8 billion
mostly due to the ATS and Speedy acquisitions. EBITDA increased 18.3%
to $268.0 million, or 13.4% of total revenue, up from $226.5 million,
or 12.3% of total revenue, a year earlier. Adjusted net income stood at
$73.2 million, or $0.76 per share, fully diluted, versus $46.5 million,
or $0.52 per share, fully diluted, in the prior year. Net income was
$104.6 million, representing $1.09 per share, fully diluted, compared
with $10.9 million, or $0.12 per share, fully diluted, last year.
Finally, cash flow from operating activities, before the net change in
non-cash operating working capital, reached $219.4 million, up from
$191.2 million a year earlier.
SOLID FINANCIAL POSITION
Driven by a strong cash flow generation, TransForce reduced its
long-term debt by $74.0 million in 2010. As at December 31, 2010, the
ratio of total long-term debt, including the current portion of
long-term debt and convertible debentures, to shareholders�� equity
stood at 1.04 down from 1.33 at the end of 2009. In addition, as at
December 31, 2010, the Company had $262.0 million available to be drawn
under its revolving facility and has used this source of funds to
finance the acquisition of Dynamex.
"TransForce will continue its successful program of controlling costs,
improving operating efficiencies, as well as protecting and improving
its operating margins," commented Mr. Bédard. "While we expect the
economy to improve in 2011, we believe the progress will be slight.
Our market leadership, strong financial situation and skilled workforce
position us for accelerated growth in a stronger economy. The Company's
highly disciplined and selective approach to acquisitions will be
maintained as we enlarge our geographic footprint and increase customer
"The Dynamex acquisition presents several opportunities going forward.
Our fastest growing segment is Package and Courier and the addition of
Dynamex both strengthens existing services and creates meaningful
opportunities in the U.S. With our track record of successfully
integrating acquisitions, the combination of the two companies should
also yield significant synergies. TransForce is poised to benefit from
revenue increases and to translate this into enhanced profitability and
shareholder value," concluded Mr. Bédard.
TransForce will hold a conference call for analysts and portfolio
managers on Friday, February 25, 2011 at 9:00 a.m. Eastern Time, to
discuss these results. Business media are also invited to listen to the
call. Interested parties can join the call by dialling 1-800-732-1073.
A recording of the call will be available until midnight, March 4,
2011, by dialing 1-877-289-8525 or 416-640-1917 and entering passcode
TransForce Inc. (www.transforcecompany.com) is the leader in Canada's transportation and logistics industry. Headquartered in Montreal, Quebec, TransForce creates value for
shareholders through managing and investing in a growing network of
wholly-owned, operating subsidiaries. TransForce provides a
comprehensive and unique combination of capabilities, resources and
geographical coverage in both domestic and trans-border markets. Its
companies currently operate in four well-defined business segments:
Package and Courier;
Truckload, specialized truckload and dedicated services;
Specialized Services, which includes waste management, energy sector
services, logistics, fleet management and personnel services.
TransForce Inc. shares are listed on the Toronto Stock Exchange under
the symbol TFI.
Except for historical information provided herein, this press release
may contain information and statements of a forward-looking nature
concerning the future performance of TransForce. These statements are
based on suppositions and uncertainties as well as on management's best
possible evaluation of future events. Such factors may include, without
excluding other considerations, fluctuations in quarterly results,
evolution in customer demand for TransForce's products and services,
the impact of price pressures exerted by competitors, and general
market trends or economic changes. As a result, readers are advised
that actual results may differ from expected results.
EBITDA and adjusted net income are financial measures not prescribed by
Canadian generally accepted accounting principles ("GAAP") and are not
likely to be comparable to similar measures presented by other issuers.
Management considers these to be useful information to assist investors
in evaluating the Company's profitability, liquidity and ability to
generate funds to finance its operations.
Note to readers:
Complete audited consolidated financial statements and Management's
Discussion & Analysis are available on TransForce's website at www.transforcecompany.com.
For further information: