Trimac Announces Second Quarter Results



    CALGARY, Aug. 13 /CNW/ - Trimac Income Fund (TSX Symbol TMA.UN) (the
"Fund") today released the financial results of the Fund and Trimac
Transportation Services Limited Partnership ("Trimac" or the "Partnership")
for the second quarter ended June 30, 2007.

    
                                      Three months                Six months
                                     ended June 30,            ended June 30,
    Partnership                  2007         2006         2007         2006
                           --------------------------------------------------
                                  (millions of dollars, except per unit
                                       amounts and numbers of units)

    Revenues                     84.2         79.4        163.3        160.0
    EBITDA(1)                    10.5         10.3         18.8         20.1
    Net earnings                  7.9          4.3          9.4          8.0


                                      Three months                Six months
                                     ended June 30,            ended June 30,
    The Fund                     2007         2006         2007         2006
                           --------------------------------------------------

    Distributable cash
     per unit(1)(2)           $0.3864      $0.0873      $0.4355      $0.4164
    Distributions per
     unit(1)                  $0.2313      $0.2313      $0.4626      $0.4542
    Basic and diluted
     earnings per unit        $0.1744      $0.0832      $0.2256      $0.1560
    Weighted average
     number of units used
     in computing basic
     earnings per unit     12,528,515   12,528,515   12,528,515   12,528,515
    Weighted average
     number of units
     outstanding used in
     computing diluted
     earnings per unit     23,609,506   23,012,751   23,609,506   23,012,751

    (1) EBITDA, distributable cash per unit and distributions per unit are
        not recognized measures under Generally Accepted Accounting
        Principles (GAAP) and do not have a standardized meaning prescribed
        by GAAP. Therefore, these amounts may not be comparable to similar
        measures presented by other issuers. Management considers EBITDA and
        Distributable cash as key measures that indicate the ability of the
        Fund to meet its capital and financing commitments.
    (2) Distributable cash available will fluctuate on a monthly basis due to
        seasonal cash flows, sustaining capital incurred and income taxes and
        interest paid. See "Distributable Cash" for additional commentary.


    Strong revenue growth in the British Columbia and Prairie Provinces
operations, a significant short-term contract, the sale of a non-strategic
facility, and a one-time future tax recovery on a corporate reorganization
positively influenced results in the quarter. These improved results were
reduced by continued volatility in the woodchips operations and general
weakness in the central Canadian economy.

    Divisional highlights in the second quarter were as follows:

    -   Western division experienced strong revenue growth in British
        Columbia and the Prairie Provinces, which grew by 20.3 percent.
        Partially offsetting this growth was a 22.5 percent decline in
        woodchip revenue.

    -   Eastern division experienced a modest decline in revenue that was
        predominantly a result of business losses resulting from the highly
        competitive market conditions and lower revenue with existing
        customers due to general economic weakness in central Canada.

    -   Bulk Plus Logistics (BPL) experienced strong revenue growth as a
        result of increased volumes in the freight brokerage business.
        However, profitability was negatively impacted by decreased transload
        revenue and a customer contamination claim.

    -   The Partnership successfully concluded the sale of a non-strategic
        facility in June 2007 for $5.9 million (net of disposal costs). A
        gain on disposal of $2.9 million was recorded in the quarter.

    -   The Partnership recorded a one-time future tax recovery of
        $1.7 million due to a corporate reorganization during the quarter.

    -   The Partnership successfully concluded the acquisition of Ken Angeli
        Trucking Ltd. (KAT) on April 30, 2007 and the purchase of certain
        assets of Logistics Express, Inc. (Logex) on June 1, 2007. Management
        is pleased with the results of these acquisitions to-date.
    

    In commenting on the results for the second quarter, Terry Owen,
President & CEO of Trimac, said:
    "In the quarter, the Partnership recorded improved results in difficult
market conditions. The western division achieved solid results, eastern
division profitability deteriorated slightly due to difficult economic
conditions and BPL's results were impacted by transload operating challenges.
Overall, our strategy of diversification by product, customer, industry and
geography enabled us to deliver improvements in revenue, EBITDA, and net
income over the same time period in the prior year.
    Operationally, our western division benefited from increased seasonal
construction activity due to strong economic conditions in western Canada; the
acquisition of KAT; and the purchase of certain assets of Logex. Partially
offsetting the higher revenue was continued volatility in the division's
woodchip operations. As we have indicated in previous quarters, the forestry
industry continues to struggle with the strengthening Canadian dollar and
other adverse industry conditions, which has resulted in further mill closures
in Ontario and weaker demand for transportation throughout our woodchips
operations.
    Results in our eastern division were negatively impacted by business
losses in the cement, dry bulk, and chemical product lines; general economic
weakness in central Canada; and severance costs associated with both business
losses and the closure and sale of a non-strategic facility. Our logistics
business experienced strong growth in freight management volumes, however,
profitability was negatively impacted by decreased transload revenue and costs
resulting from a product contamination claim."
    In commenting on the future activities and outlook for the business,
Terry Owen noted:
    "As management looks ahead to the remainder of 2007, we expect favourable
economic activity levels in B.C. and the Prairie Provinces, offset by
continued volatility in the woodchip operations. In the eastern division,
management believes that a higher Canadian dollar will contribute to a reduced
level of manufacturing activity and slower economic growth in central Canada,
resulting in a highly competitive operating environment for the remainder of
2007. Management remains confident that our strategy of diversification within
the bulk trucking sector will continue to provide the framework for our
success in the future."

    
                            Financial Highlights

                                Three months ended         Six months ended
                                      June 30,                  June 30,
                           --------------------------------------------------
    (millions of dollars)        2007         2006         2007         2006
                           --------------------------------------------------

    Revenues
    Western                      48.5         44.0         92.6         89.4
    Eastern                      30.2         30.8         60.1         61.6
                           --------------------------------------------------
    Canadian trucking            78.7         74.8        152.7        151.0
    Bulk Plus Logistics           5.5          4.6         10.6          9.0
                           --------------------------------------------------
                                 84.2         79.4        163.3        160.0
    Direct costs                 61.7         58.0        121.5        118.1
    Selling and
     administrative              12.0         11.1         23.0         21.8
                           --------------------------------------------------

    EBITDA(1)                    10.5         10.3         18.8         20.1
    Depreciation net of
     gains on disposal
     of capital assets(2)         2.8          5.0          8.5         10.1
                           --------------------------------------------------

    Operating earnings            7.7          5.3         10.3         10.0
    Interest expense (net)        1.3          1.0          2.5          2.0
                           --------------------------------------------------

    Earnings before taxes         6.4          4.3          7.8          8.0
    Income tax recovery(3)       (1.5)           -         (1.6)           -
                           --------------------------------------------------

    Net earnings                  7.9          4.3          9.4          8.0
                           --------------------------------------------------
                           --------------------------------------------------

    As a percentage of revenue
    --------------------------
    Direct costs                 73.3%        73.0%        74.4%        73.8%
    Selling and administrative   14.3%        14.0%        14.1%        13.6%
    EBITDA(1)                    12.4%        13.0%        11.5%        12.6%
    Depreciation(2)               3.3%         6.3%         5.2%         6.3%
    Operating earnings            9.1%         6.7%         6.3%         6.3%

                                As at        As at
                               June 30,   December 31,
    (millions of dollars)        2007         2006
                           -----------------------------

    Total assets                160.5        157.9
    Total long-term
     liabilities                 62.0         61.6

    (1) EBITDA (earnings before interest, taxes, depreciation and
        amortization) is not a recognized measure under GAAP, does not have a
        standardized meaning prescribed by GAAP and, therefore, may not be
        comparable to similar measures presented by other issuers. Management
        believes that EBITDA is a useful measure of cash available for
        distribution before debt service expense, capital expenditures and
        income taxes and that indicates the ability of the Fund to meet its
        capital and financing commitments.
    (2) Includes a $2.9 million gain on the disposal of a non-strategic
        facility.
    (3) Includes the reversal of a previously recorded future tax liability
        resulting from a corporate reorganization.


    Distributable Cash

    The table below represents the Partnership's distributable cash beginning
with net cash provided by operations.


    (millions of dollars
     except unit amounts,       Three months ended         Six months ended
     certain percentages              June 30,                  June 30,
     and numbers of units)       2007         2006         2007         2006
    -------------------------------------------------------------------------

    Net cash provided by
     operations                   8.4          3.7         14.4         15.9
    Net change in non-cash
     working capital(1)           0.7          5.5          1.8          2.1
                           ------------------------  ------------------------
    Cash provided by
     operations                   9.1          9.2         16.2         18.0
    Less adjustment for:
      net sustaining capital
       expenditures
      (net of proceeds)(2)(3)     5.3         (6.6)        (0.4)        (7.5)
      provision for
       sustaining capital
       commitments(4)            (4.7)           -         (4.0)           -
      provision for long-term
       unfunded contractual
       operational
       obligations(5)               -            -         (0.2)           -
                           ------------------------  ------------------------
    Total estimated cash
     available for
     distribution (before
     public expenses)             9.7          2.6         11.6         10.5
    Percentage of available
     cash distributable to
     unitholders(6)                53%          54%          53%          54%

                           ------------------------  ------------------------
    Cash available for
     distribution to
     unitholders (before
     public expenses)             5.1          1.4          6.2          5.7
    Public expenses(7)           (0.3)        (0.3)        (0.7)        (0.5)
                           ------------------------  ------------------------
    Distributable cash
     from operations(2)(8)        4.8          1.1          5.5          5.2
    Distributions declared
     and payable                  2.9          2.9          5.8          5.7

    Distributable cash
     per unit(2)(8)            0.3864       0.0873       0.4355       0.4164
    Distributions declared
     per unit                  0.2313       0.2313       0.4626       0.4542
    Payout ratio(2)(8)           59.9%       264.9%       106.2%       109.1%

    Weighted average
     number of units
     outstanding           12,528,515   12,528,515   12,528,515   12,528,515

    Net capital expenditures
      Sustaining capital
       expenditures(2)            1.5          7.5          7.5          9.4
      Proceeds on disposal
       of capital assets(4)      (6.8)        (0.9)        (7.1)        (1.9)
                           ------------------------  ------------------------
      Net sustaining capital
       expenditures(2)(3)        (5.3)         6.6          0.4          7.5
      Growth capital
       expenditures(2)(9)         0.6          3.1          1.9          5.3
                           ------------------------  ------------------------
                                 (4.7)         9.7          2.3         12.8
                           ------------------------  ------------------------
                           ------------------------  ------------------------

    (1) Changes in non-cash operating assets and liabilities are not included
        in the calculation of distributable cash. Working capital investments
        are funded through a combination of cash flow not distributed and the
        use of credit facilities available to the Partnership.
    (2) Distributable cash from operations, sustaining capital expenditures,
        net sustaining capital expenditures, payout ratio, and growth capital
        expenditures are not measures recognized by GAAP, do not have
        standardized meanings prescribed by GAAP and may not be comparable to
        similarly named measures presented by other issuers. Management
        believes that they are important and useful measures for readers to
        evaluate the performance of the Fund.
    (3) Net sustaining capital expenditures refers to capital expenditures,
        net of proceeds on disposal of assets replaced, which are necessary
        to sustain current revenue levels. See "Liquidity and Capital
        Resources - Capital Expenditures".
    (4) Represents a partial reversal of $0.3 million in the quarter
        ($1.0 million year to date) of a cash reserve accrued in the fourth
        quarter of 2006 for a facility capital expansion that commenced in
        2006. In addition, the company has reserved $5.0 million of proceeds
        on the disposal of a non-strategic facility in June 2007 to be used
        to acquire replacement facilities in 2008.
    (5) Represents a provision for cash requirements relating to a long-term
        incentive plan and an executive pension liability.
    (6) Percentage is equal to units outstanding of 12,528,515 divided by
        fully diluted units of 23,609,506.
    (7) Represents expenses associated with the Fund's status as a reporting
        issuer.
    (8) Distributable cash available will fluctuate on a monthly basis due to
        seasonal cash flows, sustaining capital expenditures incurred, income
        taxes paid and interest costs on outstanding debt. The distributable
        cash payout ratio in the second quarter of 2007 was influenced by
        reduced sustaining capital expenditures as compared to the prior
        period. The decrease in sustaining capital expenditures is due
        primarily to the delivery of substantially all of the 2007 sustaining
        tractor capital purchases during the previous quarter.
    (9) Cash used to fund growth capital expenditures does not affect
        distributable cash to unitholders where financing is available for
        these purposes. The Partnership funds growth capital from
        undistributed cash from operations, cash available from distributions
        on non-cash exchangeable shares, and, to the extent available, cash
        and unused lines of credit.
    

    Distributable cash from operations was $4.8 million in the three month
period ended June 30, 2007 (the "current period"), an increase of $3.7 million
over the three month period ended June 30, 2006 (the "prior period"). The
increase was due primarily to a decrease in net sustaining capital
expenditures. In the six month period ended June 30, 2007 distributable cash
from operations was $5.5 million, an increase of $0.3 million compared to the
same period in 2006. The increase was due primarily to reduced net sustaining
capital expenditures, partially offset by decreased net cash provided by
operations and increased public expenses.
    Distributions in the current period were funded from cash generated from
operations. On a year-to-date basis, distributions were paid using cash
generated from operations, available cash from distributions on non-cash
exchangeable shares, and from borrowing on the credit facilities of the
Partnership. Due to the seasonal nature of the Partnership's business and the
timing of sustaining capital purchases, the amount of distributable cash may
vary from quarter to quarter. Trimac's Board of Directors approves the level
of monthly distributions based upon estimated cash flow on an annual basis,
less estimated cash amounts required for debt service obligations, sustaining
capital expenditures, cash taxes, other expense amounts and reserves
(including amounts for capital expenditures and working capital) and to
stabilize the monthly amount of distributions to unitholders. Growth capital
expenditures are funded from undistributed cash from operations, cash
available from distribution on non-cash exchangeable shares, and, to the
extent available, cash and unused lines of credit.
    Distributable cash from operations is not a defined term under Canadian
generally accepted accounting principles (GAAP) but is determined by the
Partnership as net cash provided by operations for the period, adjusted to
remove specific non-cash items, including changes in non-cash working capital,
and reduced by net sustaining capital expenditures, reserves for funding
long-term liabilities, reserves (including amount for capital expenditures and
working capital), and public costs.
    Management believes that distributable cash from operations is a useful
supplemental measure of performance as it provides investors with an
indication of the amount of cash available for distribution to unitholders.
Investors are cautioned, however, that distributable cash from operations
should not be construed as an alternative to using net income as a measure of
profitability or as an alternative to the statement of cash flows. In
addition, the Fund's method of calculating distributable cash from operations
may not be comparable to calculations used by other income trusts.

    Operating Results

    Trimac's total revenue in the current period was $84.2 million, an
increase of $4.8 million or 6.1 percent from $79.4 million recorded in the
prior period. EBITDA grew to $10.5 million in the current period as compared
to $10.3 million in the prior period, a gain of $0.2 million or 1.9 percent.
On a year-to-date basis revenue increased by $3.3 million or 2.1 percent to
$163.3 million compared to $160.0 million in the prior six month period.
EBITDA for the current six month period totalled $18.8 million, a decrease of
$1.3 million or 6.5 percent over the same period last year.

    Bulk Trucking Operations

    The western division generated $48.5 million in revenue in the current
period, an increase of $4.5 million or 10.2 percent from $44.0 million
recorded in the prior period. The division achieved strong revenue growth of
approximately 20.3 percent in its British Columbia and Prairie Province
operations. Driving this revenue growth was increased cement revenue
attributed to higher construction and oil and gas activity; improved weather
conditions compared to the prior quarter; increased petroleum revenue due to
contracts secured in 2006; the acquisition of KAT on April 30, 2007; and the
June 1, 2007 acquisition of certain assets of Logex. Revenue gains were
partially offset by a 22.5 percent reduction in revenues from the division's
woodchip operation. The woodchip revenue decline was primarily the result of
business losses and the closure of sawmills and pulp mills during the last six
months of 2006 and the current year. The division was successful in obtaining
customer rate increases that mostly offset annual wage increases provided in
the first quarter of 2007. Higher revenues and improved operating costs as a
percentage of revenue resulted in a $1.3 million or 20.0 percent increase in
EBITDA in the western division to $7.8 million in the current period.
    On a year-to-date basis, the western division's revenues increased to
$92.6 million from $89.4 million in 2006, an increase of $3.2 million or 3.6
percent. Operations in British Columbia and the Prairie Provinces experienced
year-over-year growth of 14.0 percent. This revenue growth was reduced by a
29.1 percent decline in the woodchip product line. The division generated
EBITDA of $12.8 million, a slight improvement over the prior year's six-month
period as the strong results in the second quarter offset the impact of poor
weather on the results in the first quarter of the year.
    Second quarter revenue in the eastern division decreased from
$30.8 million in the prior period to $30.2 million in the current period, a
decrease of $0.6 million or 1.9 percent. A short-term contract that
contributed revenue of $1.6 million in the current period and $2.1 million of
revenue generated from the 4th quarter 2006 acquisition of Jeff Brett Group of
Companies (JBE) mostly offset revenue declines due to business losses and
lower revenue in existing product lines. EBITDA decreased by $0.3 million to
$2.6 million in the current period. The decrease was a result of lower
revenue; severance costs associated with both business losses and the closure
and sale of a non-strategic facility; and downward customer rate pressure due
to weak economic conditions.
    For the six months ended June 30, 2007, the eastern division's revenues
decreased to $60.1 million, compared to $61.6 million in 2006, the decrease of
$1.5 million or 2.5 percent was primarily a result of business losses in the
cement, dry bulk, plastics, and liquid chemical product lines and a reduction
in volumes with existing customers. EBITDA was reduced to $5.2 million as
compared to $5.4 million in the prior six-month period, a decrease of
$0.2 million or 3.7 percent over the prior year. Lower revenue and downward
customer rate pressure due to weak economic conditions in central Canada were
the main factors contributing to the decrease in EBITDA. Despite experiencing
a decrease in revenue, operations in the Atlantic Provinces experienced
increased EBITDA due to an improvement in operating costs as a result of the
successful restructuring of the business.

    Logistics Operations

    BPL's current period revenue was $5.5 million, an increase of
$0.9 million or 19.6 percent over the prior period. BPL's Canadian freight
brokerage revenue gains more than offset reduced transload revenue. Increased
freight brokerage revenue was primarily due to a short-term contract that
contributed $1.9 million in the quarter, offset by lower revenue with existing
customers. U.S. freight brokerage and third-party logistics management
experienced slight reductions in revenue when compared to the prior period. In
the current period BPL recorded EBITDA of $0.6 million, a decrease of
$0.2 million or 25.0 percent. The reduction in EBITDA was primarily due to
decreased transload revenue and a product contamination claim.
    For the first half of 2007, BPL's revenues were $10.6 million compared to
$9.0 million in 2006, an increase of $1.6 million or 17.8 percent. Increased
volumes were achieved in Canadian and U.S. freight brokerage. Lower Canadian
and U.S. transload volumes and the translation impact of reduced Canadian
dollars for the U.S. operations due to the strengthening of the Canadian
dollar tempered the revenue growth over the same six-month period in 2006.
BPL's EBITDA for the first six months of 2007 was $1.0 million, a decrease of
$0.5 million or 33.3 percent from the same period last year. The decreased
EBITDA was primarily due to increased operating costs in transload operations,
lower transload revenue, and customer product contamination claims during the
past six months.

    Capital Expenditures

    Net capital expenditures of the Partnership represented a cash inflow of
$4.7 million in the current period compared to expenditures of $9.7 million in
the prior period. The $14.4 million difference in net capital expenditures
from the prior year was made up of a $6.0 million decrease in sustaining
capital, $2.5 million less growth capital, and an increase of $5.9 million in
proceeds on disposal resulting from sale of a non-strategic facility in
Oakville, Ontario. The decrease in sustaining capital expenditures over the
prior period was primarily the result of the purchase of $4.2 million of
tractors in the first quarter of 2007, which represents substantially all of
the sustaining capital requirements for tractors in 2007. In addition, the
partnership incurred higher sustaining capital purchases in the prior period
due to late deliveries of tractors and in-cab technology purchases. Tractor
and trailer purchases accounted for approximately 55 percent of the
$1.5 million of gross sustaining capital expenditures in the current period,
with the balance applicable to other assets required in the operations. Growth
capital spending decreased by $2.5 million to $0.6 million in the current
period. The decrease in growth capital relates to higher trailer purchases
delivered in the prior period for new business secured. Trailer purchases
accounted for substantially all of the growth capital expenditures in the
current period.
    For the six months ended June 30, 2007, net capital expenditures totalled
$2.3 million compared to $12.8 million for the prior year. The $10.5 million
difference in net capital expenditures from the prior year was made up of a
$1.9 million decrease in gross sustaining capital, $3.4 million less growth
capital, and an increase of $5.2 million in proceeds on disposal resulting
primarily from the aforementioned sale of a non-strategic facility. Sustaining
capital purchases decreased when compared to the prior year due to a reduction
in the number of power units purchased and substantial capital spending on
tractor in-cab technology during the first half of 2006. On a year-to-date
basis, the reduction in growth capital spending was due to tractor and trailer
purchases in the prior year for new business secured.
    Net annual capital expenditures relating to sustaining capital
requirements will vary from year to year based on the economic life of the
capital assets, historical purchase dates, the mix of life cycles expiring in
a given year, other factors affecting equipment cost, disposal proceeds of
replaced assets and annual equipment utilization. Estimated net ongoing
sustaining capital expenditure requirements for 2007 are expected to be in the
range of $10.5 million to $11.5 million. Year to date net sustaining capital
purchases total $4.4 million, after adjusting for the net facility replacement
reserve of $4.0 million, leaving approximately $6.1 million to $7.1 million of
remaining net sustained capital purchases in 2007. Sustaining capital
purchases are funded from the Partnership's net cash provided by operations in
the year, cash available from distributions on non-cash exchangeable shares,
and thereafter, to the extent required, available credit facilities.

    Fuel Costs

    Fuel costs fluctuated during the current period with average daily posted
rack prices for diesel fuel at refineries across Canada ranging from $0.73 per
litre to $0.87 per litre. Trimac has fuel surcharge programs in place with
substantially all of its customers and the effect of changes in fuel prices
has generally been neutral to its results in past years.
    The bulk trucking industry and its customers have generally agreed to
monthly fuel surcharges, a practice which tends to create a shortfall in fuel
recoveries in periods of rising fuel prices and an over-recovery when fuel
prices decline. Fuel surcharges averaged approximately 10.9 percent of base
trucking revenue during the current period and 10.4 percent on a year-to-date
basis.

    Forward-Looking Statements

    This news release contains statements concerning the outlook for Trimac's
business and estimates for sustaining capital or other expectations, plans,
goals, objectives, assumptions, information or statements about future events,
conditions, results of operations or performance that may constitute
forward-looking statements or information under applicable securities
legislation. Words such as "may", "will", "should", "expect", "plan",
"anticipate", "believe", "estimate", "predict", and words and expressions of
similar import are intended to identify these forward-looking statements. Such
forward-looking statements or information are based on a number of
assumptions, which may prove to be incorrect. In addition to any other
assumptions identified in this news release, certain assumptions have been
made concerning the forward-looking information contained herein including,
among other things: Trimac will be successful in maintaining its customer
relationships and such customers will not materially reduce the volume of
business provided to Trimac; general economic conditions will not be
materially different from those prevailing in the second quarter of 2007;
Trimac will continue to attract and retain a sufficient number of qualified
drivers and mechanics; Trimac will continue to be successful in recovering
fuel price increases from its customers; adverse weather will not unduly
impact Trimac's operations; the Canadian dollar will not materially strengthen
against the United States dollar; distributions payable by Trimac to its
unitholders will not be subject to tax in 2007; there will be no material
changes to the laws and regulations applicable to Trimac or its businesses;
the seasonality of Trimac's business will be consistent with historical
trends; no irreparable damage will be done to Trimac's operating systems and
databases or information contained thereon; Trimac will maintain or improve
upon its competitive position within the bulk trucking sector; adequate
financing will be available to Trimac to fund capital expenditures, working
capital and distributions on terms and conditions favourable to Trimac; Trimac
will not have any judgment entered against it in a court of law which would
have a material adverse effect on Trimac or its businesses; Trimac will
continue to have all material licences and permits required by law to conduct
its businesses as presently conducted; there will not be a material increase
in the price of equipment required in the business of Trimac; and the
estimated useful life of equipment and the proceeds received on the
disposition thereof will be consistent with historical trends at Trimac.
    Although the Fund believes that the expectations reflected in such
forward-looking statements or information are reasonable, undue reliance
should not be placed on forward-looking statements because the Fund can give
no assurance that such expectations will prove to be correct. Forward-looking
statements or information are based on current expectations, estimates and
projections that involve a number of risks and uncertainties which could cause
actual results to differ materially from those anticipated by the Fund and
described in the forward-looking statements or information. These risks and
uncertainties include but are not limited to:

    
    -   General economic conditions - Certain product lines of Trimac are
        dependent on the general economic conditions of the regions in which
        it operates and cash flows may be negatively impacted by economic
        downturns in any particular region;
    -   Labour - Trimac's cash flow and growth are dependent on its ability
        to hire and retain quality drivers and mechanics;
    -   Fuel - Rising fuel prices and the ability of Trimac to recover cost
        increases in the marketplace may impact cash flow;
    -   Weather - Adverse weather may impact Trimac's transportation of goods
        and increase operating costs;
    -   Foreign currency exchange - The strengthening Canadian dollar may
        impact Trimac's customers' cost competitiveness and negatively impact
        the volume of goods transported;
    -   Tax structure - Changes in government regulation may negatively
        impact Trimac's distributable cash;
    -   Environmental considerations - Changes in environmental law may
        impact operating costs;
    -   Seasonality of business - Financial results may be impacted by the
        seasonality of the business;
    -   Information technology - Cash flow could be adversely affected by an
        event that caused irreparable damage to Trimac's operating systems
        and databases or information contained in the databases;
    -   Competitive conditions - There can be no assurance that Trimac will
        be able to compete successfully against its current or future
        competitors or that competition will not have a material adverse
        affect on its results of operations and financial condition; and
    -   Financing - No assurances can be made that financing will be
        available when required by business needs.
    

    The foregoing list of risks and uncertainties is not exhaustive.
Additional information on these and other factors which may affect Trimac's
operations or financial results and those of the Fund are included under the
heading "Risk Factors" in the Fund's current Annual Information Form and as
may be updated in the Fund's annual and interim Management's Discussion and
Analysis and Annual Information Form, which are or will be filed with
securities regulators. The Fund undertakes no obligation to update publicly or
otherwise revise any forward-looking statement, whether as a result of new
information, future events or otherwise.

    Trimac is Canada's largest provider of bulk trucking services, with
operations from coast to coast. In addition, through its wholly owned
subsidiary, BPL, Trimac provides third-party transportation logistics services
in Canada and the United States. Trust units of Trimac Income Fund are traded
on The Toronto Stock Exchange under the symbol TMA.UN

    You are invited to join us on a conference call at 10:00 a.m. Eastern
Time on Tuesday, August 14, 2007. For North American participants, please dial
1-800-525-6384 or for international participants, please dial ++1-780-409-1668
at least 10 minutes prior to the start time of the call.
    A playback of the call will be available starting at 12:30 p.m. Eastern
Time on Tuesday, August 14, 2007 until midnight August 21, 2007. To hear the
playback dial 1-888-562-2824 or for international participants, please dial
++1-402-220-7739 and give the conference ID number: 11245298.


    
    Trimac Income Fund
    Consolidated Balance Sheet
    (unaudited)
    -------------------------------------------------------------------------
    (thousands of dollars)

                                                          As at        As at
                                                        June 30, December 31,
                                                           2007         2006
                                                              $            $
                                                     ------------------------
    Assets

    Current assets
    Cash                                                     71          223
    Interest receivable                                     230          237
    Distributions receivable                                811          949
    Prepaid expenses                                        118           75
                                                     ------------------------

                                                          1,230        1,484

    Investment in Trimac Transportation
     Services Limited Partnership                        75,580       78,431
    Note receivable from Trimac Transportation
     Services Inc.                                       35,000       35,000
                                                     ------------------------

                                                        111,810      114,915
                                                     ------------------------
                                                     ------------------------

    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities                129          236
    Due to associated companies and partnerships            363          310
    Distributions payable                                   966          966
                                                     ------------------------

                                                          1,458        1,512

    Unitholders' equity                                 110,352      113,403
                                                     ------------------------

                                                        111,810      114,915
                                                     ------------------------
                                                     ------------------------

    The Fund commenced business operations on February 25, 2005 and earnings
of the Fund's investment in Trimac have been accounted for using the equity
method of accounting since commencement. Under this method, the Fund's share
of earnings of Trimac, adjusted for the amortization of certain tangible and
intangible assets arising from the use of purchase accounting is reflected in
the statement of earnings of the Fund as "Share of earnings of Trimac
Transportation Services Limited Partnership". The results of operations of the
Fund are predominately dependent on the performance of the Partnership.



    Trimac Income Fund
    Consolidated Statement of Earnings, Comprehensive Income and
    Unitholders' Equity
    (unaudited)
    -------------------------------------------------------------------------
    (thousands of dollars, except for numbers of units)

                          Three months Three months  Six months   Six months
                              ended        ended        ended        ended
                             June 30,     June 30,     June 30,     June 30,
                               2007         2006         2007         2006
                           ------------------------ -------------------------
                                    $            $            $            $
    Share of earnings of
     Trimac Transportation
     Services Limited
     Partnership(1)             1,747          619        2,089        1,023
    Interest income               698          699        1,392        1,390
    Administrative costs         (260)        (276)        (654)        (459)
                           ------------------------ -------------------------

    Net earnings                2,185        1,042        2,827        1,954

    Other comprehensive
     loss - share of
     Partnership other
     comprehensive loss           (45)           -          (48)           -
                           ------------------------ -------------------------

    Comprehensive income        2,140        1,042        2,779        1,954

    Opening unitholders'
     equity                   111,110      118,242      113,403      120,122
    Adoption of new
     accounting standard            -            -          (35)           -
    Distributions              (2,898)      (2,898)      (5,795)      (5,690)
                           ------------------------ -------------------------

    Closing unitholders'
     equity                   110,352      116,386      110,352      116,386
                           ------------------------ -------------------------
                           ------------------------ -------------------------

    Basic and diluted
     earnings per unit(2)      0.1744       0.0832       0.2256       0.1560

    Weighted average
     number of units
     outstanding used in
     computing basic
     earnings per unit     12,528,515   12,528,515   12,528,515   12,528,515

    Weighted average
     number of units
     outstanding used in
     computing diluted
     earnings per unit(2)  23,609,506   23,012,751   23,609,506   23,012,751


                          Three months Three months  Six months   Six months
                              ended        ended        ended        ended
                             June 30,     June 30,     June 30,     June 30,
                               2007         2006         2007         2006
                           --------------------------------------------------
                                    $            $            $            $
    Net earnings of the
     Partnership                7,922        4,259        9,430        7,959
      Add: Interest expense
       on TTSI debt included
       in Partnership
       earnings                 1,019        1,019        2,026        2,026
                           --------------------------------------------------

    Adjusted Partnership
     earnings                   8,941        5,278       11,456        9,985
      Less: Purchase price
       allocation
       adjustments:
        Increase in
         amortization of
         capital assets
         and loss on
         disposal of
         capital assets        (2,990)        (533)      (3,533)      (1,066)
        Amortization of
         intangible assets     (1,010)      (3,084)      (2,020)      (6,169)
                           --------------------------------------------------
    Partnership earnings
     after purchase price
     adjustments                4,941        1,661        5,903        2,750
                           --------------------------------------------------
    Share of Partnership
     earnings                   1,747          619        2,089        1,023
                           --------------------------------------------------
                           --------------------------------------------------

    (1) The net earnings of the Partnership are allocated between TTSI and
        the Fund based on the terms of the partnership agreement. The
        following is a reconciliation of net earnings recorded in the
        consolidated financial statements of the Partnership to the amount
        recorded by the Fund.
    (2) Pursuant to an investor liquidity agreement, holders of TTSI
        Exchangeable Shares have the right to effectively liquidate their
        9,912,140 shares of TTSI and receive units in the Fund. Following the
        full exercise of such liquidation rights, the Fund would own
        100 percent of the Partnership. The number of units used in the
        calculation of diluted earnings per unit assumes full liquidation at
        the beginning of the period. The impact of the liquidation for the
        period ended June 30, 2007 has not been disclosed, as it is anti-
        dilutive.



    Trimac Income Fund
    Consolidated Statement of Cash Flows
    (unaudited)
    -------------------------------------------------------------------------
    (thousands of dollars)

                          Three months Three months  Six months   Six months
                              ended        ended        ended        ended
                             June 30,     June 30,     June 30,     June 30,
                               2007         2006         2007         2006
                           ------------------------ -------------------------
                                    $            $            $            $
    Cash provided (used)

    Operations
    Net earnings                2,185        1,042        2,827        1,954
    (Deduct) add items
     not affecting cash:
      Share of earnings
       from Trimac
       Transportation
       Services Limited
       Partnership             (1,747)        (619)      (2,089)      (1,023)
      Distributions from
       Trimac Transportation
       Services Limited
       Partnership              1,747          619        2,089        1,023
                           ------------------------ -------------------------

    Cash provided by
     operations                 2,185        1,042        2,827        1,954
    Net change in non-cash
     working capital              100           54          (90)         140
                           ------------------------ -------------------------

    Net cash provided by
     operations                 2,285        1,096        2,737        2,094
                           ------------------------ -------------------------

    Investments
    Distributions from
     Trimac Transportation
     Services Limited
     Partnership                  670        1,765        2,906        3,494
                           ------------------------ -------------------------

    Cash provided by
     investing activities         670        1,765        2,906        3,494
                           ------------------------ -------------------------

    Financing
    Distributions paid         (2,898)      (2,898)      (5,795)      (5,637)
                           ------------------------ -------------------------

    Cash used in financing
     activities                (2,898)      (2,898)      (5,795)      (5,637)
                           ------------------------ -------------------------

    Increase (decrease)
     in cash                       57          (37)        (152)         (49)
    Cash, beginning of
     period                        14          125          223          137
                           ------------------------ -------------------------

    Cash, end of period            71           88           71           88
                           ------------------------ -------------------------
                           ------------------------ -------------------------

    Supplemental information
    Cash received from
     interest                     706          707        1,399        1,398

    The financial statements included in this news release do not contain the
notes to the statements. Financial statements with note disclosure are filed
with securities regulators.



    Trimac Transportation Services Limited Partnership
    Consolidated Balance Sheet
    (unaudited)
    -------------------------------------------------------------------------
    (thousands of dollars)

                                                          As at        As at
                                                        June 30, December 31,
                                                           2007         2006
                                                              $            $
                                                     ------------------------
    Assets

    Current assets
    Cash and term deposits                                1,196            -
    Accounts receivable                                  35,593       33,058
    Materials and supplies                                1,988        1,823
    Due from associated companies and partnerships        1,299        1,012
    Income taxes recoverable                                  -            -
    Prepaid expenses                                     11,206        9,978
                                                     ------------------------

                                                         51,282       45,871

    Capital assets                                      101,087      105,163
    Intangible assets                                     1,984        1,093
    Goodwill                                              4,855        4,471
    Other                                                 1,252        1,287
                                                     ------------------------

                                                        160,460      157,885
                                                     ------------------------
                                                     ------------------------

    Liabilities

    Current liabilities
    Bank indebtedness                                     1,058          699
    Accounts payable and accrued liabilities             32,649       29,681
    Distributions payable                                 5,165        5,099
    Income taxes payable                                    358          540
    Due to associated companies                           2,458        3,138
                                                     ------------------------

                                                         41,688       39,157

    Long-term debt                                       60,000       58,260
    Future income taxes                                     188        1,830
    Other long-term liabilities                           1,783        1,574
                                                     ------------------------

                                                        103,659      100,821

    Partnership equity                                   56,801       57,064
                                                     ------------------------

                                                        160,460      157,885
                                                     ------------------------
                                                     ------------------------

    The Partnership provides bulk trucking services throughout Canada and
complementary logistics services in Canada and the United States. Effective
January 1, 2005, the Partnership purchased substantially all of the assets of
Trimac Transportation Services Inc. ("TTSI") relating to its Canadian bulk
trucking business and its North American logistics business. TTSI and certain
of its subsidiaries conducted the business operations of the Partnership prior
to January 1, 2005.



    Trimac Transportation Services Limited Partnership
    Consolidated Statement of Earnings, Comprehensive Income and Equity
    (unaudited)
    -------------------------------------------------------------------------
    (thousands of dollars)

                          Three months Three months  Six months   Six months
                              ended        ended        ended        ended
                             June 30,     June 30,     June 30,     June 30,
                               2007         2006         2007         2006
                                         (restated)                (restated)
                           ------------------------ -------------------------
                                    $            $            $            $

    Transportation revenue     74,985       71,199      146,384      144,395
    Fuel surcharges             9,194        8,206       16,938       15,630
                           ------------------------ -------------------------
    Total revenues             84,179       79,405      163,322      160,025
                           ------------------------ -------------------------

    Operating costs and
     expenses
    Direct                     61,728       57,998      121,593      118,099
    Selling and
     administrative            12,002       11,104       22,988       21,865
    Depreciation and
     amortization               5,942        5,197       11,791       10,563
    Gain on sale of
     assets (net)              (3,164)        (182)      (3,330)        (492)
                           ------------------------ -------------------------

    Operating expense          76,508       74,117      153,042      150,035
                           ------------------------ -------------------------

    Operating earnings          7,671        5,288       10,280        9,990

    Interest on long-term
     debt                       1,233        1,067        2,405        2,123
    Other interest expense
     (income)                      19          (77)          32         (141)
                           ------------------------ -------------------------
                                1,252          990        2,437        1,982
                           ------------------------ -------------------------

    Earnings before income
     taxes                      6,419        4,298        7,843        8,008

    Income tax expense
     (recovery)
    Current                       221          115          323          143
    Future                     (1,724)         (76)      (1,910)         (94)
                           ------------------------ -------------------------
                               (1,503)          39       (1,587)          49
                           ------------------------ -------------------------

    Net earnings                7,922        4,259        9,430        7,959

    Other comprehensive
     loss - net change in
     cumulative translation
     adjustments                 (127)         (41)        (136)         (35)
                           ------------------------ -------------------------

    Comprehensive income        7,795        4,218        9,294        7,924

    Opening equity             53,606       58,778       57,064       59,650
    Adoption of new
     accounting standard            -            -          (81)           -
    Distributions declared     (4,600)      (4,748)      (9,476)      (9,326)
                           ------------------------ -------------------------

    Closing partnership
     equity                    56,801       58,248       56,801       58,248
                           ------------------------ -------------------------
                           ------------------------ -------------------------

    Accumulated other
     comprehensive losses
     (included in
     partnership equity)
    ----------------------

    Opening balance as
     previously recorded          (29)           -            -            -
    Adjustment on adoption
     of accounting policy           -          (25)         (20)         (31)
                           ------------------------ -------------------------
                                  (29)         (25)         (20)         (31)
    Other comprehensive
     loss                        (127)         (41)        (136)         (35)
                           ------------------------ -------------------------

    Closing balance              (156)         (66)        (156)         (66)
                           ------------------------ -------------------------
                           ------------------------ -------------------------



    Trimac Transportation Services Limited Partnership
    Consolidated Statement of Cash Flows
    (unaudited)
    -------------------------------------------------------------------------
    (thousands of dollars)

                          Three months Three months  Six months   Six months
                              ended        ended        ended        ended
                             June 30,     June 30,     June 30,     June 30,
                               2007         2006         2007         2006
                           ------------------------ -------------------------
                                    $            $            $            $

    Cash provided (used)

    Operations
    Net earnings                7,922        4,259        9,430        7,959
    Add back (deduct) items
     not affecting cash:
      Depreciation and
       amortization             5,942        5,197       11,791       10,563
      Gain on sale of
       assets (net)            (3,164)        (182)      (3,330)        (492)
      Future income tax
       recovery                (1,724)         (76)      (1,910)         (94)
      Other non-cash items         86           51          163          120
                           ------------------------ -------------------------

    Cash provided by
     operations                 9,062        9,249       16,144       18,056

    Net change in non-cash
     working capital             (697)      (5,547)      (1,798)      (2,133)
                           ------------------------ -------------------------

    Net cash provided by
     operations                 8,365        3,702       14,346       15,923
                           ------------------------ -------------------------

    Investments
    Purchases of capital
     assets                    (2,124)     (10,561)      (9,399)     (14,707)
    Proceeds on sale of
     capital assets             6,778          878        7,106        1,881
    Acquisition of
     transportation assets     (3,264)           -       (3,264)           -
    Increase (decrease) in
     accounts payable and
     accrued liabilities
     relating to investing
     activities                  (176)         438         (197)         366
    Increase in accounts
     receivable relating to
     investing activities          79            -            3            -
    Other                         (73)         (19)         (87)         (22)
                           ------------------------ -------------------------

    Cash provided by
     (used in) investing
     activities                 1,220       (9,264)      (5,838)     (12,482)
                           ------------------------ -------------------------

    Financing
    Increase in long-term
     debt                           -            -        7,618            -
    Distributions paid         (4,368)      (4,109)      (9,411)      (7,923)
                           ------------------------ -------------------------

    Cash used in financing
     activities               (10,246)      (4,109)      (7,671)      (7,923)
                           ------------------------ -------------------------

    (Decrease) increase in
     cash and term deposits      (661)      (9,671)         837       (4,482)
    Cash and term deposits
     (bank indebtedness),
     beginning of period          799       11,936         (699)       6,747
                           ------------------------ -------------------------

    Cash and term deposits,
     end of period                138        2,265          138        2,265
                           ------------------------ -------------------------
                           ------------------------ -------------------------

    Supplemental Information
    Income taxes paid             (50)          27          607           61
    Interest paid                 234          (28)       2,443        2,010

    Cash consists of the
     following:
      Cash and term deposits                              1,196        2,265
      Bank indebtedness                                  (1,058)           -
                                                    -------------------------
                                                            138        2,265
                                                    -------------------------
                                                    -------------------------
    

    The financial statements included in this news release do not contain the
notes to the statements. Financial statements with note disclosure are filed
with securities regulators.





For further information:

For further information: Terry J. Owen, President & Chief Executive
Officer, Trimac Transportation Services Inc., Telephone: (403) 298-5101,
Facsimile: (403) 298-5355, Investor Relations: investors@trimac.com; Edward V.
Malysa, Vice President & Chief Financial Officer, Trimac Transportation
Services Inc., Telephone: (403) 298-5176, Facsimile: (403) 298-5146

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