Trimac Announces Third Quarter Results

CALGARY, Nov. 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 third quarter ended September 30, 2009.

    
                                   Three months ended      Nine months ended
                                      September 30,           September 30,
    Partnership                     2009        2008        2009        2008
                              -----------------------------------------------
    (millions of dollars)

    Transportation revenue          62.9        71.6       181.9       206.9
    Fuel surcharges                  4.7        17.2        13.1        41.7
    Total revenue                   67.6        88.8       195.0       248.6

    EBITDA(1)                        9.1        14.4        21.8        30.8
    Net earnings                     3.8         7.6         4.2        10.8


                                   Three months ended      Nine months ended
                                      September 30,           September 30,
    The Fund                        2009        2008        2009        2008
                              -----------------------------------------------
    (millions of dollars,
     except per unit
     amounts and numbers
     of units)

    Distributable cash per
     unit(1)(2)                  $0.1758     $0.4582     $0.4769     $0.8208
    Distributions per unit(1)    $0.1200     $0.2313     $0.3600     $0.6939
    Basic earnings per unit      $0.0887     $0.2305     $0.1168     $0.3602
    Fully diluted earnings per
     unit                        $0.0887     $0.2305     $0.1162     $0.3602
    Weighted average number of
     units used in computing
     basic earnings per unit  12,584,679  12,571,134  12,584,679  12,571,134
    Number of units
     outstanding used in
     computing diluted
     earnings per unit        25,734,152  24,530,426  25,734,152  24,530,426

    (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 to be 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, income taxes, and
        interest paid. See "Distributable Cash" for additional commentary.
    

Trimac's revenue, including fuel surcharges, for the three-month period ended September 30, 2009 ("current period") decreased by $21.2 million or 23.9 percent from the three-month period ended September 30, 2008 ("prior period"). Contributing to this decrease was a $12.5 million reduction in revenue from fuel surcharges. In addition, revenue continued to be affected by competitive pressures and reduced levels of activity in the construction, drilling, mining, automotive, and forestry industries. EBITDA decreased by $5.3 million or 36.8 percent from the prior period. Expressed as a percent of revenue, EBITDA was 13.5 percent in the current period, as compared to 16.2 percent recorded in the prior period.

The Partnership has entered into commitment letters with two Canadian Chartered Banks to expand its revolving line of credit from $60 million to up to $100 million. The completion of this loan transaction is subject to completion of satisfactory loan documents.

In commenting on the results for the third quarter, Jeffrey J. McCaig, Chairman and CEO of Trimac, said:

"Despite the continuation of a challenging operating environment throughout Canada, Trimac was able to mitigate the effects of reduced revenue through the successful implementation of cost reduction programs. Trimac's management is continuing to implement cost controls and pursuing additional profitable business in an attempt to further mitigate the impact of the current recession."

For comments regarding management's outlook for the remainder of 2009 please see Trimac's Management's Discussion and Analysis for the nine-month period ended September 30, 2009.

    
    Financial Highlights

                                   Three months ended      Nine months ended
                                      September 30            September 30
                              -----------------------------------------------
    (millions of dollars)           2009        2008        2009        2008
    -------------------------------------------------------------------------

    Revenues
      Transportation revenue        62.9        71.6       181.9       206.9
      Fuel surcharges                4.7        17.2        13.1        41.7
                              -----------------------------------------------
                                    67.6        88.8       195.0       248.6

      Direct costs                  48.6        62.9       141.9       183.0
      Selling and admini-
       strative                      9.9        11.5        31.3        34.8
                              -----------------------------------------------

    EBITDA(1)                        9.1        14.4        21.8        30.8
      Depreciation net of
       gains on disposal of
        capital assets               5.2         5.3        15.2        15.7
                              -----------------------------------------------

    Operating earnings               3.9         9.1         6.6        15.1
      Interest expense (net)         0.9         1.2         2.9         3.7
                              -----------------------------------------------

    Earnings before taxes            3.0         7.9         3.7        11.4
      Income tax (recovery)
       expense                      (0.8)        0.3        (0.5)        0.6
                              -----------------------------------------------

    Net earnings                     3.8         7.6         4.2        10.8
                              -----------------------------------------------
                              -----------------------------------------------

    As a percentage
     of revenue(2)
    -------------------------
      Direct costs                 71.9%       70.8%       72.8%       73.6%
      Selling and admini-
       strative                    14.6%       13.0%       16.1%       14.0%
      EBITDA(1)                    13.5%       16.2%       11.2%       12.4%
      Depreciation                  7.7%        6.0%        7.8%        6.3%
      Operating earnings            5.8%       10.2%        3.4%        6.1%


                                   As at       As at
                               September    December
    (millions of dollars)       30, 2009    31, 2008
                              -----------------------

      Total assets                 141.3       152.7
      Total long-term lia-
       bilities                     44.7        47.2
    

The above selected financial and operating information has been derived from, and should be read in conjunction with, the unaudited interim consolidated financial statements of the Partnership.

    
    (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 complementary measure of cash
        available for distribution before debt servicing expense, capital
        expenditures and income taxes.
    (2) Direct costs, selling and administrative and depreciation, expressed
        as a percentage of revenue, were impacted by significant fluctuations
        in fuel surcharge revenue between the prior and current period and
        the prior and current nine month year-to-date period. For additional
        commentary regarding these expenses please see page 8 and 9 of
        Trimac's Management's Discussion and Analysis for the nine-month
        period ended September 30, 2009.
    

Distributable Cash

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

    
    (millions of dollars           Three months ended      Nine months ended
     except unit amounts,             September 30            September 30
     certain percentages      -----------------------------------------------
     and number of units)           2009        2008        2009        2008
    -------------------------------------------------------------------------

    Net cash provided by
     operations                      8.5        11.3        22.0        24.8
    Net change in non-cash
     working capital(1)             (0.4)        1.4        (3.3)        1.3
                              -----------------------------------------------
    Cash provided by
     operations                      8.1        12.7        18.7        26.1
    Less adjustments for:
      Net sustaining capital
       expenditures (net of
       proceeds)(2)(3)              (2.8)       (1.1)       (4.7)       (4.9)
      Provision for long-term
       unfunded contractual
       operational
       obligations(4)               (0.3)        0.2        (0.5)        0.3
                              -----------------------------------------------
    Total estimated cash
     available for dist-
     ribution (before public
     expenses)                       5.0        11.8        13.5        21.5
    Percentage of available
     cash distributable to
     unitholders(5)                  49%         51%         49%         51%
                              -----------------------------------------------
    Cash available for dist-
     ribution to unitholders
     (before public expenses)        2.4         6.0         6.6        11.0
    Public expenses(6)              (0.2)       (0.2)       (0.6)       (0.7)
                              -----------------------------------------------
    Distributable cash from
     operations(2)(7)                2.2         5.8         6.0        10.3
    Distributions declared
     and payable                     1.5         2.9         4.6         8.7

    Distributable cash per
     unit(2)(7)                   0.1758      0.4582      0.4769      0.8208
    Distributions declared
     per unit(9)                  0.1200      0.2313      0.3600      0.6939
    Payout ratio(2)(7)             68.3%       50.5%       75.5%       84.5%

    Weighted average number
     of units outstanding     12,584,679  12,571,134  12,584,679  12,571,134

    Net capital expenditures
      Sustaining capital
       expenditures(2)               2.9         1.6         6.1         7.3
      Proceeds on disposal of
       replaced assets              (0.1)       (0.5)       (1.4)       (2.4)
                              -----------------------------------------------
      Net sustaining capital
       expenditures(2)(3)            2.8         1.1         4.7         4.9
      Growth capital ex-
       penditures(2)(8)              1.8         0.8         5.7         5.6
                              -----------------------------------------------
                                     4.6         1.9        10.4        10.5
                              -----------------------------------------------
                              -----------------------------------------------

    (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.
    (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.
    (4) Represents a provision for cash requirements relating to a long-term
        incentive plan and an executive pension liability.
    (5) Percentage is equal to weighted average number of units outstanding
        of 12,584,679 divided by fully diluted units of 25,734,152.
    (6) Represents expenses associated with the Fund's status as a reporting
        issuer.
    (7) 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.
    (8) 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,
        existing lines of credit.
    (9) Effective January 2009, the monthly distribution per unit was reduced
        from $0.0771 to $0.04.
    

During the current period the Partnership's cash provided by operations decreased by $4.6 million, net sustaining capital expenditures increased by $1.7 million and the provision for long-term unfunded executive compensation plans increased by $0.5 million. The Fund's distributable cash from operations was $2.2 million in the current period, less than that recorded in the prior period by $3.6 million. This decrease was the result of the Fund's share of the aforementioned Partnership changes in cash provided by operations, provisions for executive compensation plans, and sustaining capital. During the nine-month period ended September 30, 2009 ("current year") distributable cash from operations was $6.0 million, a $4.3 million decrease compared to the nine-month period ended September 30, 2008 ("prior year"). The decrease was due to decreased cash provided by operations and an increase in the provision for unfunded executive compensation plans, partially offset by a slightly reduced level of net sustaining capital expenditures.

Distributions in the current period were paid using cash generated from operations including cash retained in the business relating to non-cash exchangeable shares. 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 required for debt service, cash taxes, other amounts (including sustaining capital expenditures, working capital and provisions) to stabilize the monthly amount of distributions to unitholders as may be considered appropriate by the Board of Directors. Growth capital expenditures are funded from undistributed cash from operations, cash available from notional distributions on non-cash exchangeable shares, and, to the extent available, cash and existing lines of credit.

Distributable cash from operations is not a defined term under 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 working capital, and reduced by sustaining capital expenditures, provisions for funding long- term liabilities, provisions for committed capital purchases in progress 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 issuers.

    
                              Operating Results

    Revenue - Q3

    -------------------------------------------------------------------------
                       Three months ended September 30
    -------------------------------------------------------------------------
    (millions of
     dollars)        2009              2008       Gross Revenue   Net Revenue
    -------------------------------------------------------------------------
                          Tran-             Tran-
                          spor-              spor
                     Fuel   ta-        Fuel   ta-
              Total  Sur-  tion Total  Sur-  tion
                Re- char-   Re-   Re- char-   Re-   Var-          Var-
              venue   ges venue venue   ges venue  iance      %  iance      %
    -------------------------------------------------------------------------

    Bulk
     trucking
    ---------

    Western
     division  39.5   2.7  36.8  55.2  11.6  43.6 (15.7) -28.4%  (6.8) -15.6%
    Eastern
     division  25.0   2.0  23.0  29.9   5.6  24.3  (4.9) -16.4%  (1.3)  -5.3%
    -------------------------------------------------------------------------

    Total bulk
     trucking  64.5   4.7  59.8  85.1  17.2  67.9 (20.6) -24.2%  (8.1) -11.9%
    -------------------------------------------------------------------------

    Bulk Plus
     Logistics  3.1     -   3.1   3.7     -   3.7  (0.6) -16.2%  (0.6) -16.2%
    -------------------------------------------------------------------------

    Total
     revenue   67.6   4.7  62.9  88.8  17.2  71.6 (21.2) -23.9%  (8.7) -12.2%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

For the current period, total revenue decreased by $21.2 million or 23.9 percent from the prior period. Fuel surcharges as a percentage of bulk trucking revenue totalled approximately 7.5 percent in comparison to 24.0 percent in the prior period, resulting in a decrease of $12.5 million. Trimac has fuel surcharge programs in place with substantially all of its customers. Revenue net of fuel surcharges decreased by $8.7 million or 12.2 percent from the prior period primarily due to business losses, price erosion, and lower volumes with existing customers.

The western division's revenue decreased by $15.7 million or 28.4 percent. Fuel surcharge revenue was $8.9 million lower than the prior period. Revenue net of fuel surcharges decreased by $6.8 million or 15.6 percent compared to the prior period. Incremental revenue of $1.9 million from the December 5, 2008 acquisition of Canamera Carriers Inc. (Canamera) was offset by net business losses and reduced volumes with existing customers. This reduction in volumes impacted the majority of the western division's product lines and was due to continued recessionary conditions in the economy.

The eastern division's revenue decreased by $4.9 million or 16.4 percent. Fuel surcharge revenue was $3.6 million lower than the prior period. Revenue net of fuel surcharges decreased by $1.3 million or 5.3 percent compared to the prior period. This decrease was predominantly due to reduced volumes with existing customers and net business losses. Decreased volumes were primarily the result of continued economic weakness in central Canada and occurred predominantly in the petroleum and chemical product lines.

For the current period, Bulk Plus Logistics' (BPL) revenue decreased by $0.6 million or 16.2 percent. This decrease was primarily due to lower freight brokerage volumes in Canada and the U.S., in addition to decreased revenue generated by the Canadian and U.S. consulting operations.

    
    Revenue - YTD Q3

    -------------------------------------------------------------------------
                       Nine months ended September 30
    -------------------------------------------------------------------------
    (millions of
     dollars)        2009              2008       Gross Revenue   Net Revenue
    -------------------------------------------------------------------------
                          Tran-             Tran-
                          spor-              spor
                     Fuel   ta-        Fuel   ta-
              Total  Sur-  tion Total  Sur-  tion
                Re- char-   Re-   Re- char-   Re-   Var-          Var-
              venue   ges venue venue   ges venue  iance      %  iance      %
    -------------------------------------------------------------------------

    Bulk
     trucking
    ---------

    Western
     division 112.4   7.7 104.7 149.9  27.3 122.6 (37.5) -25.0% (17.9) -14.6%
    Eastern
     division  73.1   5.4  67.7  86.5  14.4  72.1 (13.4) -15.5%  (4.4)  -6.1%
    -------------------------------------------------------------------------

    Total bulk
     trucking 185.5  13.1 172.4 236.4  41.7 194.7 (50.9) -21.5% (22.3) -11.5%
    -------------------------------------------------------------------------

    Bulk Plus
     Logistics  9.5     -   9.5  12.2     -  12.2  (2.7) -22.1%  (2.7) -22.1%
    -------------------------------------------------------------------------

    Total
     revenue  195.0  13.1 181.9 248.6  41.7 206.9 (53.6) -21.6% (25.0) -12.1%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

For the current year, total revenue decreased by $53.6 million or 21.6 percent from the prior year. Fuel surcharges as a percentage of bulk trucking revenue totalled approximately 7.2 percent in comparison to 20.2 percent in the prior year, resulting in a decrease of $28.6 million as a result of lower fuel prices. Revenue net of fuel surcharges decreased by $25.0 million or 12.1 percent from the prior year primarily as a result of business losses, price erosion, and lower volumes with existing customers.

The western division's revenue decreased by $37.5 million or 25.0 percent. Fuel surcharge revenue was $19.6 million lower than the prior year. Revenue net of fuel surcharges decreased by $17.9 million or 14.6 percent compared to the prior year. Incremental revenue of $4.9 million from the December 5, 2008 acquisition of Canamera Carriers Inc. (Canamera) and increased revenue in the edible product line was more then offset by net business losses and reduced volumes with existing customers. This reduction in volumes was primarily due to the economic recession.

The eastern division's revenue decreased by $13.4 million or 15.5 percent. Fuel surcharge revenue was $9.0 million lower than the prior year. Revenue net of fuel surcharges decreased by $4.4 million or 6.1 percent compared to the prior year. Increased revenue from the industrial gas and edible product lines were offset by net business losses and decreased volumes with existing customers. These decreased volumes were primarily the result of continued economic weakness in central Canada, predominantly in the petroleum and chemical product lines.

For the current year, Bulk Plus Logistics' (BPL) revenue decreased by $2.7 million or 22.1 percent. This decrease was primarily due to the exiting of a transload management contract in May 2008 and decreased freight brokerage volumes in Canada and the U.S.

    
    EBITDA - Q3

    -------------------------------------------------------------------------
                       Three months ended September 30
    -------------------------------------------------------------------------
    (millions of                                                      % Rev.
     dollars)             2009  % Rev.   2008  % Rev. Variance    %   change
    -------------------------------------------------------------------------

    Bulk trucking
    -------------

    Western division       6.0   15.2%   10.9   19.7%    (4.9) -45.0%   -4.6%
    Eastern division       2.0    8.0%    2.9    9.7%    (0.9) -31.0%   -1.7%
    -------------------------------------------------------------------------

    Total bulk trucking    8.0   12.4%   13.8   16.2%    (5.8) -42.0%   -3.8%
    -------------------------------------------------------------------------

    Bulk Plus Logistics    0.5   16.1%    1.0   27.0%    (0.5) -50.0%  -10.9%
    -------------------------------------------------------------------------

    Other                  0.6           (0.4)            1.0
    -------------------------------------------------------------------------

    Total EBITDA           9.1   13.5%   14.4   16.2%    (5.3) -36.8%   -2.7%
    -------------------------------------------------------------------------
    

EBITDA for the current period totaled $9.1 million, a $5.3 million or 36.8 percent decrease from the prior period. The western division experienced a $4.9 million or 45.0 percent decrease in the current period. This decrease was primarily the result of lower revenue which was mitigated by lower direct costs, primarily due to various cost reduction programs implemented to reflect lower volumes. The eastern division had reduced EBITDA of $0.9 million or 31.0 percent as lower revenue was mitigated by a reduction in direct costs, which were also due to various cost reduction programs. BPL's EBITDA was $0.5 million lower than in the prior period as a result of lower revenue and higher operating costs in the logistics operations.

    
    EBITDA - Q3 YTD

    -------------------------------------------------------------------------
                       Nine months ended September 30
    -------------------------------------------------------------------------
    (millions of                                                      % Rev.
     dollars)             2009  % Rev.   2008  % Rev. Variance    %   change
    -------------------------------------------------------------------------

    Bulk trucking
    -------------

    Western division      14.9   13.3%   22.7   15.1%    (7.8) -34.4%   -1.9%
    Eastern division       5.0    6.8%    6.0    6.9%    (1.0) -16.7%   -0.1%
    -------------------------------------------------------------------------

    Total bulk trucking   19.9   10.7%   28.7   12.1%    (8.8) -30.7%   -1.4%
    -------------------------------------------------------------------------

    Bulk Plus Logistics    1.9   20.0%    2.0   16.4%    (0.1)  -5.0%    3.6%
    -------------------------------------------------------------------------

    Other                    -            0.1            (0.1)
    -------------------------------------------------------------------------

    Total EBITDA          21.8   11.2%   30.8   12.4%    (9.0) -29.2%   -1.2%
    -------------------------------------------------------------------------
    

EBITDA for the current year totalled $21.8 million, a $9.0 million or 29.2 percent decrease from the prior year. The western division experienced a $7.8 million or 34.4 percent decrease in the period, and the eastern division was lower than prior by $1.0 million or 16.7 percent. These decreases were primarily the result of lower revenue which was mitigated by lower direct costs, primarily due to various cost reduction programs implemented to address lower volumes. BPL's EBITDA was $0.1 million or 5.0 percent less than in the prior year as lower revenue was mitigated by a reduction in direct costs. The reduction in direct costs was the result of reduced activity in the freight brokerage product line which has a higher percentage of direct operating costs than other product lines within BPL, as well as management's decision to exit a transload management contract in May 2008.

    
    Capital Expenditures

                                   Three months ended      Nine months ended
                                      September 30            September 30
                              -----------------------------------------------
    (millions of dollars)           2009        2008        2009        2008
    -------------------------------------------------------------------------

    Gross sustaining capital
     expenditures                    2.9         1.6         6.1         7.3
    Less: proceeds on disposal
     of capital assets              (0.1)       (0.5)       (1.4)       (2.4)
                              -----------------------------------------------
    Net sustaining capital
     expenditures                    2.8         1.1         4.7         4.9
    Growth capital expenditures      1.8         0.8         5.7         5.6
                              -----------------------------------------------

    Net capital expenditures         4.6         1.9        10.4        10.5
                              -----------------------------------------------
                              -----------------------------------------------
    

The Partnership's net capital expenditures, including growth and sustaining capital, totalled $4.6 million in the current period compared to $1.9 million in the prior period. The increase of $2.7 million over the prior period was due to increased sustaining capital expenditures of $1.3 million, higher growth capital expenditures of $1.0 million, and reduced disposal proceeds of $0.4 million.

Gross sustaining capital purchases of $2.9 million were made up primarily of replacement tractors accounting for approximately 75 percent of the total, with the balance applicable to a BPL facility upgrade and to other operating assets. Net sustaining capital expenditures were $1.7 million higher than in the prior period due to higher tractor purchases. Proceeds on the disposal of capital assets were $0.4 million less than that recorded in the prior period.

Growth capital expenditures of $1.8 million in the current period consisted of trailer purchases of approximately 75 percent with the remainder being used for other operating assets. These trailer purchases consisted predominantly of chemical and edible trailers to support future business in these product lines. Growth capital purchases are funded from undistributed cash from operations, cash available from notional distributions on non-cash exchangeable shares and, to the extent required, available cash and existing lines of credit.

For the current year, net capital expenditures totalled $10.4 million compared to $10.5 million for the prior year. The $0.1 million decrease in net capital expenditures from the prior year was made up of a $1.2 million reduction in sustaining capital. This was partially offset by a $0.1 million increase in growth capital and a $1.0 million reduction in disposal proceeds. Sustaining capital purchases decreased when compared to the prior year due to a reduction in trailer purchases which reflect the lower equipment utilization experienced in the current year.

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. Sustaining capital purchases are funded from the Partnership's net cash provided by operations in the year, cash available from notional distributions on non-cash exchangeable shares and, thereafter, to the extent required, available credit facilities.

You are invited to join us on a conference call at 4:00 p.m. Eastern Time on Friday, November 13, 2009. For North American participants, please dial 1-888-300-0053 or for international participants, please dial ++1-647-427-3420 at least 10 minutes prior to the start time of the call.

A playback of the call will be available starting at 7:00 p.m. Eastern Time on Friday, November 13, 2009 until midnight November 20, 2009. To hear the playback dial 1-800-642-1687 or for international participants, please dial ++1-706-645-9291 and give the conference ID number: 38982699.

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

                                                           As at       As at
                                                       September    December
                                                        30, 2009    31, 2008
                                                               $           $
                                                      -----------------------
    Assets

    Current assets
    Cash                                                      99         970
    Interest receivable                                      233         241
    Distributions receivable                                 344         719
    Prepaid expenses                                          10         105
                                                      -----------------------

                                                             686       2,035

    Investment in Trimac Transportation Services
     Limited Partnership                                  64,171      67,412
    Note receivable from Trimac Transportation
     Services Inc.                                        35,438      35,438
                                                      -----------------------

                                                         100,295     104,885
                                                      -----------------------
                                                      -----------------------
    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities                  11          74
    Due to associated companies and partnerships               7         967
    Distributions payable                                    503         970
                                                      -----------------------

                                                             521       2,011

    Deferred compensation plan                               118          50
                                                      -----------------------

                                                             639       2,061

    Unitholders' equity                                   99,656     102,824
                                                      -----------------------

                                                         100,295     104,885
                                                      -----------------------
                                                      -----------------------
    

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 per unit amounts and number of units)

                                   Three       Three        Nine        Nine
                                  months      months      months      months
                                   ended       ended       ended       ended
                               September   September   September   September
                                30, 2009    30, 2008    30, 2009    30, 2008
                              ----------------------- -----------------------
                                       $           $           $           $
    Share of income (loss)
     of Trimac Transportation
     Services Limited
     Partnership(1)                  594       2,434         (58)      3,085
    Interest income                  716         707       2,105       2,123
    Administrative costs            (194)       (242)       (577)       (680)
                              ----------------------- -----------------------

    Net earnings                   1,116       2,899       1,470       4,528

    Other comprehensive (loss)
     income - share of
     Partnership other
     comprehensive (loss)
     income                          (60)         13        (107)         33
                              ----------------------- -----------------------

    Comprehensive income           1,056       2,912       1,363       4,561

    Opening unitholders'
     equity                      100,110     104,215     102,824     108,079
    Issue of additional units          -           -           -         297
    Distributions declared        (1,510)     (2,912)     (4,531)     (8,722)
                              ----------------------- -----------------------
    Closing unitholders'
     equity                       99,656     104,215      99,656     104,215
                              ----------------------- -----------------------
                              ----------------------- -----------------------
    Basic earnings per
     unit(2)                  $   0.0887  $   0.2305  $   0.1168  $   0.3602

    Fully diluted earnings
     per unit(2)              $   0.0887  $   0.2305  $   0.1162  $   0.3602

    Weighted average number
     of units outstanding used
     in computing basic
     earnings per unit        12,584,679  12,571,134  12,584,679  12,571,134

    Number of units
     outstanding used in
     computing diluted
     earnings per unit        25,734,152  24,530,426  25,734,152  24,530,426

    (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.



                                   Three months ended      Nine months ended
                                      September 30            September 30,
                                    2009        2008        2009        2008
                                       $           $           $           $
                              -----------------------------------------------
    Net earnings of the
     partnership                   3,785       7,566       4,158      10,775
      Add: Interest expense
       on TTSI debt included
       in Partnership earnings       533         877       1,883       2,914
    -------------------------------------------------------------------------
    Adjusted Partnership
     earnings                      4,318       8,443       6,041      13,689

      Less: Purchase price
       allocation adjustments:

      Increase in amortization
       of capital assets and
       loss on disposal of
       capital assets               (472)       (513)     (1,547)     (1,743)
      Amortization of
       intangible assets          (1,011)     (1,011)     (3,033)     (3,033)
    -------------------------------------------------------------------------

    Partnership earnings after
     purchase price adjustments    2,835       6,919       1,461       8,913
    -------------------------------------------------------------------------
    Share of Partnership
     earnings (loss)                 594       2,434         (58)      3,085
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (2) Pursuant to an investor liquidity agreement, holders of TTSI
        Exchangeable Shares have the right to effectively liquidate their
        10,230,538 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 calculated amount of fully diluted
        earnings per unit for the three month periods ended September 30,
        2009 and 2008 and for the nine month period ended September 30, 2008
        have not been reported as they would have an anti-dilutive effect.
        The amount disclosed for these periods as fully diluted earnings per
        unit is therefore equal to the amount disclosed for basic earnings
        per unit.



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

                                   Three       Three        Nine        Nine
                                  months      months      months      months
                                   ended       ended       ended       ended
                               September   September   September   September
                                30, 2009    30, 2008    30, 2009    30, 2008
                              ----------------------- -----------------------
                                       $           $           $           $
    Cash provided (used)

    Operations
    Net earnings                   1,116       2,899       1,470       4,528
    Add items not affecting
     cash:
      Share of (income) loss
       from Trimac
       Transportation Services
       Limited Partnership          (594)     (2,434)         58      (3,085)
      Distributions from
       Trimac Transportation
       Services Limited
       Partnership                     -       2,434           -       3,085
      Deferred compensation
       costs                          25          26          68          52
                              ----------------------- -----------------------

    Cash provided by operations      547       2,925       1,596       4,580
    Net change in non-cash
     working capital                  21         137        (920)        336
                              ----------------------- -----------------------
    Net cash provided by
     operations                      568       3,062         676       4,916
                              ----------------------- -----------------------
    Investments
    Distributions from Trimac
     Transportation Services
     Limited Partnership           1,017         (38)      3,451       4,195
                              ----------------------- -----------------------
    Cash provided by (used in)
     investing activities          1,017         (38)      3,451       4,195
                              ----------------------- -----------------------
    Financing
    Distributions paid            (1,508)     (2,911)     (4,998)     (8,719)
                              ----------------------- -----------------------
    Cash used in financing
     activities                   (1,508)     (2,911)     (4,998)     (8,719)
                              ----------------------- -----------------------

    Increase (decrease) in cash       77         113        (871)        392
    Cash, beginning of period         22         683         970         404
                              ----------------------- -----------------------

    Cash, end of period               99         796          99         796
                              ----------------------- -----------------------
                              ----------------------- -----------------------
    Supplemental information
    Cash received from interest
     (net)                           716         707       2,113       2,128
    

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
                                                       September    December
                                                        30, 2009    31, 2008
                                                               $           $
                                                      -----------------------
    Assets

    Current assets
    Cash                                                     702       2,350
    Accounts receivable                                   28,913      31,350
    Materials and supplies                                 1,332       1,626
    Due from related parties                               1,686       3,088
    Income taxes recoverable                                  23           -
    Prepaid expenses                                       9,235      10,315
                                                      -----------------------

                                                          41,891      48,729

    Capital assets                                        88,634      92,708
    Intangible assets                                      2,868       3,495
    Goodwill                                               6,182       6,182
    Other                                                  1,756       1,622
                                                      -----------------------

                                                         141,331     152,736
                                                      -----------------------
                                                      -----------------------
    Liabilities

    Current liabilities
    Bank indebtedness                                          -       1,969
    Accounts payable and accrued liabilities              28,180      29,282
    Distributions payable                                  4,068       3,080
    Income taxes payable                                       -         570
    Due to related parties                                 1,023       1,223
    Current maturities of long-term debt                  18,667      18,666
                                                      -----------------------

                                                          51,938      54,790

    Long-term debt                                        42,799      44,723
    Future income taxes                                      393       1,207
    Other long-term liabilities                            1,526       1,253
                                                      -----------------------

                                                          96,656     101,973

    Partnership equity                                    44,675      50,763
                                                      -----------------------

                                                         141,331     152,736
                                                      -----------------------
                                                      -----------------------
    

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 Partnership
    Equity
    (unaudited)
    -------------------------------------------------------------------------
    (thousands of dollars)

                                   Three       Three        Nine        Nine
                                  months      months      months      months
                                   ended       ended       ended       ended
                               September   September   September   September
                                30, 2009    30, 2008    30, 2009    30, 2008
                              ----------------------- -----------------------
                                       $           $           $           $
    Revenue
    Transportation revenue        62,886      71,582     181,890     206,901
    Fuel surcharges                4,662      17,254      13,103      41,707
                              ----------------------- -----------------------
                                  67,548      88,836     194,993     248,608
                              ----------------------- -----------------------
    Operating costs and
     expenses
    Direct                        48,522      62,894     141,868     183,017
    Selling and administrative     9,906      11,532      31,273      34,798
    Depreciation and
     amortization                  5,154       5,476      15,481      16,438
    Loss (gain) on sale of
     assets, net                      14        (192)       (260)       (718)
                              ----------------------- -----------------------

    Operating expense             63,596      79,710     188,362     233,535
                              ----------------------- -----------------------

    Operating earnings             3,952       9,126       6,631      15,073

    Interest on long-term debt       888       1,247       2,873       3,687
    Other interest expense             9          16          54          42
                              ----------------------- -----------------------
                                     897       1,263       2,927       3,729
                              ----------------------- -----------------------
    Earnings before income
     taxes                         3,055       7,863       3,704      11,344

    Income tax expense
     (recovery)
    Current                          104         283         367         581
    Future                          (834)         14        (821)        (12)
                              ----------------------- -----------------------
                                    (730)        297        (454)        569
                              ----------------------- -----------------------

    Net earnings                   3,785       7,566       4,158      10,775

    Other comprehensive (loss)
     income - net change in
     cumulative translation
     adjustments                    (229)         37        (418)         94
                              ----------------------- -----------------------

    Comprehensive income           3,556       7,603       3,740      10,869

    Opening partnership equity    44,432      49,001      50,763      55,186
    Distributions declared        (3,313)     (4,683)     (9,828)    (14,134)
                              ----------------------- -----------------------

    Closing partnership equity    44,675      51,921      44,675      51,921
                              ----------------------- -----------------------
                              ----------------------- -----------------------

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

    Opening balance                   75        (212)        264        (269)
    Other comprehensive (loss)
     income                         (229)         37        (418)         94
                              ----------------------- -----------------------

    Closing balance                 (154)       (175)       (154)       (175)
                              ----------------------- -----------------------
                              ----------------------- -----------------------



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

                                   Three       Three        Nine        Nine
                                  months      months      months      months
                                   ended       ended       ended       ended
                               September   September   September   September
                                30, 2009    30, 2008    30, 2009    30, 2008
                              ----------------------- -----------------------
                                       $           $           $           $
    Cash provided (used)

    Operations
    Net earnings                   3,785       7,566       4,158      10,775
    Add back (deduct) items not
     affecting cash:
      Depreciation and
       amortization                5,154       5,476      15,481      16,438
      Gain on sale of assets,
       net                            14        (192)       (260)       (718)
      Future income tax
       (recovery) expense           (834)         14        (821)        (12)
      Other non-cash items           (24)       (202)        140        (357)
                              ----------------------- -----------------------

    Cash provided by operations    8,095      12,662      18,698      26,126

    Net change in non-cash
     working capital                 365      (1,325)      3,287      (1,264)
                              ----------------------- -----------------------
    Net cash provided by
     operations                    8,460      11,337      21,985      24,862
                              ----------------------- -----------------------
    Investments
    Purchases of capital assets   (4,752)     (2,370)    (11,848)    (12,874)
    Proceeds on sale of capital
     assets                          104         478       1,431       2,337
    Increase (decrease) in
     accounts payable and
     accrued liabilities
     relating to investing
     activities                      208        (139)         (2)       (527)
    (Increase) decrease in
     accounts receivable
     relating to investing
     activities                        -          (4)          5          10
    Other                           (379)         40        (487)         74
                              ----------------------- -----------------------
    Cash used in investing
     activities                   (4,819)     (1,995)    (10,901)    (10,980)
                              ----------------------- -----------------------
    Financing
    Increase in long-term debt    15,916      15,986      16,744      22,438
    Repayments of long-term
     debt                        (18,667)    (18,667)    (18,667)    (18,667)
    Distributions paid            (2,741)     (4,910)     (8,840)    (15,517)
                              ----------------------- -----------------------
    Cash used in financing
     activities                   (5,492)     (7,591)    (10,763)    (11,746)
                              ----------------------- -----------------------

    (Decrease) increase in cash   (1,851)      1,751         321       2,136
    Cash (bank indebtedness),
     beginning of period           2,553         147         381        (238)
                              ----------------------- -----------------------

    Cash, end of period              702       1,898         702       1,898
                              ----------------------- -----------------------
                              ----------------------- -----------------------
    Supplemental information
    Income taxes (recovered)
     paid                             (1)         61         960         282
    Interest paid                  1,756       2,538       3,843       4,888
    

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.

SOURCE Trimac Transportation Ltd.

For further information: For further information: Jeffrey J. McCaig, Chairman & Chief Executive Officer, Trimac Transportation Services Inc., Telephone: (403) 298-5100, Facsimile: (403) 298-5258; Edward V. Malysa, Executive Vice President & Chief Operating Officer, Trimac Transportation Services Inc., Telephone: (403) 298-5100, Facsimile: (403) 298-5146; Investor Relations: investors@trimac.com

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Trimac Transportation Ltd.

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