Revenue up 31.9%, gross margin up 39.6%, EBITDA up 95.3%
TORONTO, May 21, 2013 /CNW/ - Wheels Group Inc. ("Wheels" or the "Company") (TSXV: WGI) today announced its results for the quarter ended March 31, 2013. Revenue for the quarter ended March 31, 2013 was $84.9 million, representing an increase of $20.5 million or 31.9% over $64.4 million reported in the quarter ended April 30, 2012. Revenue from existing and new non-MSM customers ("Existing and New Customers") increased $9.6 million or 15.0%. MSM revenue was $10.9 million.
Gross margin for the quarter ended March 31, 2013 increased $3.0 million or 39.6% to $10.7 million over the quarter ended April 30, 2012. MSM contributed $2.0 million, while gross margin from Existing and New Customers grew 13.0%.
Net loss for the quarter ended March 31, 2013 was $0.6 million or $0.01 per share, compared with net loss of $1.2 million for the quarter ended April 30, 2012. This was primarily due to the increase in gross margin and lower net finance costs, partially offset by increases in personnel and other operating expenses, and depreciation and amortization.
In the Canadian segment, revenue for the quarter ended March 31, 2013 was $40.5 million, representing an increase of $10.8 million or 36.5% over the quarter ended April 30, 2012. Revenue from MSM contributed $5.3 million, while revenue from Existing and New Customers increased $5.5 million, or 18.7%. In the US segment, revenue for the quarter ended March 31, 2013 increased $10.3 million or 29.6% to $45.2 million over the quarter period ended April 30, 2012. Revenue from MSM contributed $5.6 million, while revenue from Existing and New Customers grew $4.7 million or 13.5%.
Adjusted EBITDA for the quarter ended March 31, 2013 increased 95.3% to $1.5 million from $0.7 million for the quarter ended April 30, 2012. Adjusted EBITDA as a percentage of revenue for the quarter ended March 31, 2013 was 1.7%, up from 1.2% for the quarter ended April 30, 2012.
|Financial Highlights 1||For the quarter ended|
|(in millions of dollars, except per share data and number of shares outstanding)||March 31, 2013||April 30, 2012|
|Earnings per share 2|
|Adjusted EBITDA 3||1.5||0.7|
|Adjusted EBITDA per share 2, 3||0.02||0.01|
| Weighted average number of common
|1||Comparison with the quarter ended April 30, 2012 due to change in fiscal year end from to December 31 from January 31. Results reflect the acquisition of Wheels MSM completed October 1, 2012.|
|2||Based on weighted average number of common shares outstanding.|
|3||See Adjusted EBITDA below.|
"We are pleased with our performance this quarter, both from the Company's existing operations and our acquisitions," said Doug Tozer, Chief Executive Officer of Wheels. Mr. Tozer added, "solid growth in both our Canadian and US segments allowed us to grow gross margin over the prior year quarter. We expect continued double digit revenue growth as we capitalize on the investments we have made and leverage our full suite of capabilities across all of Wheels' business lines and diverse customer base."
The term adjusted EBITDA is used to describe earnings before any deduction for income taxes, net finance cost, depreciation, amortization, one-time non-recurring expenses and share-based compensation. EBITDA and adjusted EBITDA are metrics used by many investors and analysts to compare organizations on the basis of ability to generate cash from operations. Management considers adjusted EBITDA (as defined) to be an indirect measure of operating cash flows, which is a significant indicator of the success of any business. EBITDA and adjusted EBITDA are not intended to be representative of cash flow from operations or results of operations determined in accordance with IFRS.
EBITDA and adjusted EBITDA are not recognized measures under IFRS. Wheels' method of calculating EBITDA and adjusted EBITDA may differ from methods used by other companies, and accordingly may not be comparable to similar measures presented by other companies.
Caution Regarding Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements within the meaning of certain securities laws, including the Securities Act (Ontario). Forward-looking statements can be generally identified by the use of words such as "anticipate", "continue", "estimate", "expect", "expected", "intend", "may", "will", "project", "plan", "should", "believe" and similar expressions. Specifically, forward-looking statements in this news release include statements respecting certain future expectations about: prices and demand for commodities, products and services, capital expenditures, the ability of the Company to access tax losses and tax attributes, sources and use and sufficiency of cash flows, the Company's ability to renew its term debt at maturity, the effect of changes in the exchange and interest rates and the prices of key services. Forward-looking statements in this news release describe the expectations of the Company as of the date hereof. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including without limitation the RISKS AND UNCERTAINTIES section of the Company's most recent Management Discussion and Analysis.
Although the Company believes the expectations reflected in these forward-looking statements and the assumptions upon which they are based are reasonable, no assurance can be given that actual results will be consistent with such forward-looking statements, and they should not be unduly relied upon. With respect to the forward-looking statements contained in this news release, the Company has made assumptions regarding: there being no significant disruptions affecting the Company's operations, whether due to labour disruptions, damage to equipment or otherwise; the ability of Wheels to obtain transportation services and supplies in a timely manner to carry out its activities and at prices consistent with current levels or in line with the Company's expectations; the ability of the Company to successfully access tax losses and tax attributes; the ability of the Company to obtain financing on acceptable terms; currency exchange and interest rates being consistent with current levels or in line with Wheels' expectations; and global economic performance.
Wheels disclaims any intention or obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement.
Further information can be found in the disclosure documents filed by Wheels Group Inc. with the securities regulatory authorities, available under the profile of the Company at www.sedar.com.
Founded in 1988, Wheels is a leading North American third party logistics (3PL), supply chain logistics provider. As a non-asset provider, the Company develops advanced supply chain solutions delivered through its qualified partner network of over 6,000 truck, rail, air and ocean carriers. Wheels serves consumer goods, food and beverage, manufacturing and retail clients through 26 offices throughout the US and Canada. Wheels has been named one of Canada's 50 Best Managed Companies since 1997, Platinum since 2003. Wheels has been named one of North America's Top 100 3PL Companies, one of the Top 100 Food 3PL's and one of the Top Five IMC's (intermodal marketing companies).
Neither the TSX Venture Exchange, nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Wheels Group Inc.
For further information:
Patrick J Marshall
VP Corporate Development & Investor Relations
Tel: (905) 602-2700