20% increase in first-quarter total revenue
EBIT growth of 35% to $24.4 million
First-quarter adjusted profit more than doubled to $12.2 million
Net cash from operating activities, before net change in non-cash
working capital, up 19%
Increase in quarterly dividend to $0.115 per share
MONTREAL, May 17 /CNW Telbec/ - TransForce Inc. (TSX: TFI), a North
American leader in the transportation and logistics industry, today
announced its results for the first quarter ended March 31, 2011. These
results are the first presented by TransForce following the adoption,
on January 1, 2011, of International Financial Reporting Standards
("IFRS"). Results for the prior year period have been restated. The
Company's strong start to the year was achieved in spite of a weak
economic recovery and rising fuel costs.
"TransForce posted a most satisfying performance in what has
historically been a seasonally-weak quarter. Our leading and growing
position in strategic markets and constant focus on providing
innovative, value-added solutions to our customers delivered solid
dollar increases in our key EBIT metric, as well as in cash flow and
adjusted profit. This momentum offset headwinds caused by the rapid
rise in fuel costs and the persisting strength in the value of the
Canadian dollar. Above all, TransForce remained proactive in the
management of operating costs, while continuing to improve efficiencies
in its expanding continental network. In parallel with our drive to
optimize operating asset utilization, we have pursued our vision of
strategic growth as we remain concentrated on shareholder enhancement," said Alain Bédard, Chairman, President and Chief Executive Officer of
Quarters ended March 31,
(in millions of dollars, except per share data)
Revenue before fuel surcharge
Profit from operating activities (EBIT1)
Per share - diluted ($)
Profit for the period
Per share - diluted ($)
Weighted avg. number of shares outst. (basic, in thousands)
1 Earnings before finance income and costs and income taxes.
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 $95.2 million to $561.3 million.
The acquisition of Dynamex Inc. ("Dynamex") on February 22, 2011 and of
the assets of Speedy Heavy Hauling Inc. ("Speedy") in August 2010,
jointly contributed revenue of approximately $70 million in the first
quarter this year.
First-quarter EBIT totalled $24.4 million, or 4.3% of total revenue, up
from $18.1 million, or 3.9% of total revenue in the corresponding
period a year earlier. This increase in monetary terms is mainly
attributable to the aforementioned acquisitions and ongoing cost
management initiatives. First-quarter operating margins increased
despite Dynamex's lower margins, reduced profitability for the
Less-Than-Truckload ("LTL") segment, and timing differences between
rapid variations in fuel costs and adjustments in fuel surcharges.
Adjusted profit, 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, more than doubled to $12.2 million, or $0.12 per
share, fully diluted, from $6.0 million, or $0.06 per share, fully
diluted, last year. In the first quarter of 2010, TransForce recorded a
non-recurring gain of $15.7 million related to the remeasurement to
fair value of the existing interest in Laflèche Environmental Inc.
following the acquisition of the remaining 50% during the period. As a
result, profit for the period ended March 31, 2011 stood at $14.9
million, or $0.15 per share, fully diluted, versus $26.1 million, or
$0.27 per share, fully diluted, in the first quarter of 2010.
As a result of improved operating profitability, net cash from operating
activities, before net change in non-cash operating working capital,
reached $45.0 million, representing an increase of 19% over $37.7
million a year earlier.
Package and Courier revenue before fuel surcharge totalled $135.6 million in the first
quarter of 2011, up significantly from $82.9 million in the prior year.
This 64% increase is mainly attributable to a $45-million contribution
from Dynamex and, to a lesser extent, to volume increases from Canpar
and ATS. Driven by improved operating efficiencies and the contribution
of Dynamex, segment EBIT doubled to reach $9.3 million, up from $4.7
million a year ago.
Less-Than-Truckload ("LTL") first-quarter revenue before fuel surcharge decreased 6% to
$105.4 million due to lower volume resulting from the consolidation of
certain operating companies and weak market conditions, as well as the
appreciation of the Canadian dollar. Reflecting these factors, in
addition to non-recurring expenses of $1.2 million for employee
termination costs related to the consolidation of certain operating
companies, EBIT showed a loss of $2.4 million, versus a profit of $1.9
million last year.
Truckload ("TL") revenue before fuel surcharge was $144.4 million in the first
quarter of 2011, up from $139.0 million in the corresponding period in
2010. This 4% increase is mostly attributable to volume increases,
partially offset by unfavourable currency movements. A better fleet
utilization, including a reduction of approximately 150 power units in
comparison with the year-earlier period, more than offset the normal
timing differences between rapid variations in fuel costs and
adjustments in fuel surcharges. As a result, EBIT increased 92% to $6.2
million, up from $3.2 million last year.
Specialized Services first-quarter revenue before fuel surcharge reached $138.1 million, up
from $107.2 million a year earlier. This 29% increase stems mainly from
the acquisition of Speedy and solid internal growth in energy sector
services. EBIT rose 24% to $14.6 million, from $11.8 million a year ago, as
margins remained stable in waste management and ancillary
transportation services, partially offset by lower yields in certain
energy sector service niches.
FINANCIAL POSITION REMAINS SOLID
Reflecting the acquisition of Dynamex, the ratio of total long-term
debt, including the current portion of long-term debt and convertible
debentures, to shareholders' equity was 1.35 as at March 31, 2011, up
from 1.04 as at December 31, 2010. Subsequent to the end of the
quarter, TransForce amended the $100 million unsecure debenture with
Solidarity Fund QFL, reducing the fixed interest rate by 0.9% until
maturity in October 2017.
QUARTERLY DIVIDEND INCREASED TO $0.115 PER SHARE
The Board of Directors of TransForce has declared a quarterly dividend
of $0.115 per outstanding common share of its capital, representing a
15% increase over its previous quarterly dividend of $0.10 per share.
The dividend is payable on July 15, 2011 to shareholders of record at
the close of business on June 30, 2011. This dividend is designated to
be an eligible dividend pursuant to subsection 89(14) of the Income Tax Act (Canada) and any applicable provincial legislation pertaining to
"Since the beginning of 2011, TransForce has further enhanced its
leadership in the North American Package and Courier industry by
broadening its geographical reach, service offering and customer base,"
commented Mr. Bédard. "The acquisition of Dynamex brings us a strong
brand and a significant presence in the U.S. It also provides
additional opportunities, as the U.S. market remains highly fragmented.
The acquisition of DHL's Canadian domestic operations, as well as the
ten-year strategic alliance with DHL Express Canada announced last
month, once completed, will create greater scale and density for
TransForce in the Canadian market, while providing additional
international services to our existing customers. As we gradually
achieve all synergies and efficiencies, these new and upcoming
acquisitions will further increase shareholder value."
"While in the short-term we will focus on cash flow generation and debt
reduction, TransForce intends to remain an active, yet highly
disciplined and selective consolidator in its strategic market
segments. As questions persist concerning a sustained recovery in the
economy, TransForce will continue its successful program of controlling
costs, improving operating efficiencies, as well as protecting and
improving its operating margins," concluded Mr. Bédard.
TransForce will hold a conference call for analysts and portfolio
managers on Wednesday, May 18, 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 1-800-731-5319.
A recording of the call will be available until midnight, May 25, 2011,
by dialing 1-877-289-8525 or 416-640-1917 and entering passcode
TransForce Inc. is a North American leader in the transportation and
logistics industry. Operating across Canada and the United States,
TransForce creates value for shareholders by identifying strategic
acquisitions and managing a growing network of wholly-owned, operating
subsidiaries. Under the TransForce umbrella, companies benefit from
corporate financial and operational resources to build their businesses
and increase their efficiency. TransForce companies service four
well-defined reportable segments:
Package and Courier;
Truckload, which includes specialized truckload and dedicated services;
Specialized Services, which includes waste management, energy sector
services, logistics and ancillary transportation services.
TransForce Inc. (TFI) is publicly traded on the Toronto Stock Exchange
(TSX). For more information, visit http://www.transforcecompany.com.
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.
EBIT and adjusted profit are financial measures not prescribed by
International Financial Reporting Standards ("IFRS") 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:
Condensed consolidated interim financial statements and Management's
Discussion & Analysis are available on TransForce's website at www.transforcecompany.com.
For further information:
| Investors: |
Chairman, President and CEO
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