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From Globe Newswire;
Vitran Reports 2013 Third Quarter Results
TORONTO, Nov. 1, 2013 (GLOBE NEWSWIRE) -- Vitran Corporation Inc. (VTNC) (VTN.TO), a premier Canadian Less-Than-Truckload ("LTL") transportation firm, today announced its unaudited financial results for the third quarter of 2013 and the nine-month period ended September 30, 2013 (all figures reported in $U.S.).
Third quarter ended September 30, 2013 highlights:
• Successfully completed the sale of our U.S. LTL business unit, which closed on October 7, 2013
• Revenue increased 3.9% year-over-year adjusted for impact of foreign exchange
• Net income from continuing operations increased 90% year-over-year to $1.4 million or $0.09 per share
• Stand-alone Canadian LTL operating ratio ("OR") improved 30bps year-over-year to 93.1%
• Stand-alone Canadian LTL EBITDA increased 3.5% year-over-year and increased 16.1% to $10.6 million for the nine-month period year-over-year
Vitran reported revenue of $49.4 million in the third quarter of 2013 compared to $49.6 million in the third quarter of 2012. Adjusted for the impact of foreign exchange, Vitran's Canadian LTL revenue increased 3.9% in the comparable third quarters. Vitran recorded net income from continuing operations of $1.4 million, or $0.09 per basic and diluted share, for the quarter ended September 30, 2013 compared to net income from continuing operations of $0.7 million, or $0.04 per basic and diluted share, for the 2012 third quarter.
For the nine months ended September 30, 2013, Vitran reported revenue of $146.0 million compared to $143.5 million for the same period in 2012. Adjusted for the impact of foreign exchange, Vitran's Canadian LTL revenue increased 4.2% in the comparable nine month periods. Vitran recorded a net loss from continuing operations of $0.1 million, or $0.01 per basic and diluted share, for the nine-month period ended September 30, 2013 compared to a net loss of $0.1 million, which resulted in a nominal loss per basic and diluted share, in the comparable nine-month period in 2012. On a non-GAAP basis, the Company recorded adjusted income from continuing operations of $0.09 per share for the nine months ended September 30, 2013. The adjusted income from continuing operations excludes the impact of $1.7 million in severance costs associated with the departure of Vitran's previous President and Chief Executive Officer and a $0.4 million one-time write-off of deferred financing costs related to amending Vitran's senior credit facility for the sale of its SCO business in March 2013.
As previously announced on October 7, 2013, Vitran completed the sale of its U.S. LTL business. Vitran recorded a $49.7 million non-cash loss on the write-down to the estimated fair value of the business unit. The write-down and operating results of the business unit have been recorded as a discontinued operation. After the completion of the sale, the Company's balance sheet consists of approximately $18 million in cash and $49 million of long-term debt.[/FONT]Vitran Interim President and Chief Executive Officer William Deluce stated, "The third quarter of 2013 was a very important time in Vitran's history, most notably was the divestiture of our U.S. LTL operations. Along with greatly improving the Company's financial position, the U.S. divestiture allows us to focus solely on our Canadian LTL operations, a business we believe has a very bright future."
"We are extremely pleased with the results of our Canadian LTL business, which grew revenue by 3.9% and generated $3.4 million in operating income, resulting in a 93.1% operating ratio. While we view these results as impressive, we are especially encouraged considering the challenges of a tepid operating environment in the Canadian market place and with the sale of our U.S. operations. We view these solid results as not only a testament to management's ability, but also as a reflection of the value proposition Vitran offers to its customers. We would like to thank each and every one of our 453 Canadian employees and our customers for their support during this time of transition."
"We are excited about the future of Vitran and our prospects for enhancing shareholder value. We believe Vitran offers customers a compelling value proposition through a broad range of service offerings, including intermodal, regional, transborder and expedited over-the-road service. Our asset-light operating structure gives us the ability to quickly adapt to changing market conditions while also generating capital returns well in excess of LTL industry norms."
"The Board of Directors' commitment to enhancing value for its shareholders remains unwavering. With the divestiture of the U.S. business, we are now in a better position to explore strategic alternatives including evaluating any proposals made to purchase Vitran and we continue to work with our financial advisor, Stephens Inc. in this process. Our immediate focus is on addressing our corporate overhead expenses, which were $1.2 million in the third quarter of 2013. Given the divestiture of the U.S. business, we expect to reduce our corporate expenses, the degree of which could be material and is largely contingent on the outcome of our assessment of strategic alternatives," concluded Mr. Deluce.
Operating Results
For the 2013 third quarter, the Company posted income from operations in its Canadian LTL business, excluding expenses related to the corporate office, of $3.4 million compared to $3.3 million for the 2012 third quarter. Adjusting for the impact of foreign exchange, income from operations improved 9.5% in the quarter over the prior year quarter. EBITDA, excluding corporate expenses, for the three months ended September 30, 2013 was $4.2 million compared to $4.0 million in the third quarter of 2012. The Canadian LTL business, excluding expenses related to the corporate office, posted an OR of 93.1% compared to 93.4% in the comparable period a year ago. For the nine months ended September 30, 2013, the Canadian LTL business, excluding expenses related to the corporate office, posted an OR of 94.3% compared to 95.2% in the prior year. EBITDA, excluding corporate expenses, for the nine months ended September 30, 2013 was $10.6 million compared to $9.1 million in the comparable period in 2012. Income from operations for the nine month period was $8.3 million compared to $6.8 million for the nine months ended September 30, 2012. Adjusting for the impact of foreign exchange, income from operations improved 24.1% in the nine month period ended September 30, 2013 compared to the previous year.
In the comparable third quarters, shipments increased 3.8% while tonnage decreased 2.5%.
Sept 30, 2013 Dec 31, 2012
Current assets:
Cash and cash equivalents $ 25,904 $ 233
Accounts receivable 21,406 17,988
Inventory, deposits and prepaid expenses 2,921 3,505
Income taxes recoverable 323 --
Current assets of discontinued operations 75,563 65,402
Deferred income taxes 89 92
126,206 87,220
Property and equipment 49,835 53,365
Goodwill 5,388 5,579
Long-term assets of discontinued operations -- 92,370
$ 181,429 $ 238,534
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 26,947 $ 24,008
Income taxes payable -- 554
Current liabilities of discontinued operations 75,563 59,810
Current portion of long-term debt 1,333 1,333
103,843 85,705
Long-term debt 47,730 58,969
Deferred income taxes 999 1,175
Long-term liabilities of discontinued operations -- 43,028
Shareholders' equity:
Common shares 100,204 99,954
Additional paid-in capital 5,857 5,708
Accumulated deficit (82,884) (60,889)
Accumulated other comprehensive income 5,680 4,884
28,857 49,657
$ 181,429 $ 238,534
(Consolidated Statements of Income (Loss) follows)
Vitran Corporation Inc.
Consolidated Statements Of Income (Loss)
(Unaudited)
(in thousands of United States dollars except per share amounts, US GAAP)
Three months
ended September 30, Nine months
ended September 30,
2013 2012 2013 2012
Revenue $ 49,373 $ 49,626 $ 146,036 $ 143,504
Operating expenses:
Salaries, wages and other employee benefits 6,637 6,396 21,446 18,693
Purchased transportation 17,018 17,814 50,659 52,004
Depreciation and amortization 769 784 2,372 2,331
Maintenance 1,898 2,241 6,078 7,640
Rents and leases 636 694 1,950 2,084
Owner operators 12,882 12,506 37,856 35,684
Fuel and fuel-related expenses 5,372 5,075 16,222 16,320
Other operating expenses 2,052 2,177 7,260 5,917
Other income (78) (30) (262) (41)
Total operating expenses $ 47,186 $ 47,657 $ 143,581 $ 140,632
Vitran Reports 2013 Third Quarter Results
TORONTO, Nov. 1, 2013 (GLOBE NEWSWIRE) -- Vitran Corporation Inc. (VTNC) (VTN.TO), a premier Canadian Less-Than-Truckload ("LTL") transportation firm, today announced its unaudited financial results for the third quarter of 2013 and the nine-month period ended September 30, 2013 (all figures reported in $U.S.).
Third quarter ended September 30, 2013 highlights:
• Successfully completed the sale of our U.S. LTL business unit, which closed on October 7, 2013
• Revenue increased 3.9% year-over-year adjusted for impact of foreign exchange
• Net income from continuing operations increased 90% year-over-year to $1.4 million or $0.09 per share
• Stand-alone Canadian LTL operating ratio ("OR") improved 30bps year-over-year to 93.1%
• Stand-alone Canadian LTL EBITDA increased 3.5% year-over-year and increased 16.1% to $10.6 million for the nine-month period year-over-year
Vitran reported revenue of $49.4 million in the third quarter of 2013 compared to $49.6 million in the third quarter of 2012. Adjusted for the impact of foreign exchange, Vitran's Canadian LTL revenue increased 3.9% in the comparable third quarters. Vitran recorded net income from continuing operations of $1.4 million, or $0.09 per basic and diluted share, for the quarter ended September 30, 2013 compared to net income from continuing operations of $0.7 million, or $0.04 per basic and diluted share, for the 2012 third quarter.
For the nine months ended September 30, 2013, Vitran reported revenue of $146.0 million compared to $143.5 million for the same period in 2012. Adjusted for the impact of foreign exchange, Vitran's Canadian LTL revenue increased 4.2% in the comparable nine month periods. Vitran recorded a net loss from continuing operations of $0.1 million, or $0.01 per basic and diluted share, for the nine-month period ended September 30, 2013 compared to a net loss of $0.1 million, which resulted in a nominal loss per basic and diluted share, in the comparable nine-month period in 2012. On a non-GAAP basis, the Company recorded adjusted income from continuing operations of $0.09 per share for the nine months ended September 30, 2013. The adjusted income from continuing operations excludes the impact of $1.7 million in severance costs associated with the departure of Vitran's previous President and Chief Executive Officer and a $0.4 million one-time write-off of deferred financing costs related to amending Vitran's senior credit facility for the sale of its SCO business in March 2013.
As previously announced on October 7, 2013, Vitran completed the sale of its U.S. LTL business. Vitran recorded a $49.7 million non-cash loss on the write-down to the estimated fair value of the business unit. The write-down and operating results of the business unit have been recorded as a discontinued operation. After the completion of the sale, the Company's balance sheet consists of approximately $18 million in cash and $49 million of long-term debt.[/FONT]Vitran Interim President and Chief Executive Officer William Deluce stated, "The third quarter of 2013 was a very important time in Vitran's history, most notably was the divestiture of our U.S. LTL operations. Along with greatly improving the Company's financial position, the U.S. divestiture allows us to focus solely on our Canadian LTL operations, a business we believe has a very bright future."
"We are extremely pleased with the results of our Canadian LTL business, which grew revenue by 3.9% and generated $3.4 million in operating income, resulting in a 93.1% operating ratio. While we view these results as impressive, we are especially encouraged considering the challenges of a tepid operating environment in the Canadian market place and with the sale of our U.S. operations. We view these solid results as not only a testament to management's ability, but also as a reflection of the value proposition Vitran offers to its customers. We would like to thank each and every one of our 453 Canadian employees and our customers for their support during this time of transition."
"We are excited about the future of Vitran and our prospects for enhancing shareholder value. We believe Vitran offers customers a compelling value proposition through a broad range of service offerings, including intermodal, regional, transborder and expedited over-the-road service. Our asset-light operating structure gives us the ability to quickly adapt to changing market conditions while also generating capital returns well in excess of LTL industry norms."
"The Board of Directors' commitment to enhancing value for its shareholders remains unwavering. With the divestiture of the U.S. business, we are now in a better position to explore strategic alternatives including evaluating any proposals made to purchase Vitran and we continue to work with our financial advisor, Stephens Inc. in this process. Our immediate focus is on addressing our corporate overhead expenses, which were $1.2 million in the third quarter of 2013. Given the divestiture of the U.S. business, we expect to reduce our corporate expenses, the degree of which could be material and is largely contingent on the outcome of our assessment of strategic alternatives," concluded Mr. Deluce.
Operating Results
For the 2013 third quarter, the Company posted income from operations in its Canadian LTL business, excluding expenses related to the corporate office, of $3.4 million compared to $3.3 million for the 2012 third quarter. Adjusting for the impact of foreign exchange, income from operations improved 9.5% in the quarter over the prior year quarter. EBITDA, excluding corporate expenses, for the three months ended September 30, 2013 was $4.2 million compared to $4.0 million in the third quarter of 2012. The Canadian LTL business, excluding expenses related to the corporate office, posted an OR of 93.1% compared to 93.4% in the comparable period a year ago. For the nine months ended September 30, 2013, the Canadian LTL business, excluding expenses related to the corporate office, posted an OR of 94.3% compared to 95.2% in the prior year. EBITDA, excluding corporate expenses, for the nine months ended September 30, 2013 was $10.6 million compared to $9.1 million in the comparable period in 2012. Income from operations for the nine month period was $8.3 million compared to $6.8 million for the nine months ended September 30, 2012. Adjusting for the impact of foreign exchange, income from operations improved 24.1% in the nine month period ended September 30, 2013 compared to the previous year.
In the comparable third quarters, shipments increased 3.8% while tonnage decreased 2.5%.
Sept 30, 2013 Dec 31, 2012
Current assets:
Cash and cash equivalents $ 25,904 $ 233
Accounts receivable 21,406 17,988
Inventory, deposits and prepaid expenses 2,921 3,505
Income taxes recoverable 323 --
Current assets of discontinued operations 75,563 65,402
Deferred income taxes 89 92
126,206 87,220
Property and equipment 49,835 53,365
Goodwill 5,388 5,579
Long-term assets of discontinued operations -- 92,370
$ 181,429 $ 238,534
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 26,947 $ 24,008
Income taxes payable -- 554
Current liabilities of discontinued operations 75,563 59,810
Current portion of long-term debt 1,333 1,333
103,843 85,705
Long-term debt 47,730 58,969
Deferred income taxes 999 1,175
Long-term liabilities of discontinued operations -- 43,028
Shareholders' equity:
Common shares 100,204 99,954
Additional paid-in capital 5,857 5,708
Accumulated deficit (82,884) (60,889)
Accumulated other comprehensive income 5,680 4,884
28,857 49,657
$ 181,429 $ 238,534
(Consolidated Statements of Income (Loss) follows)
Vitran Corporation Inc.
Consolidated Statements Of Income (Loss)
(Unaudited)
(in thousands of United States dollars except per share amounts, US GAAP)
Three months
ended September 30, Nine months
ended September 30,
2013 2012 2013 2012
Revenue $ 49,373 $ 49,626 $ 146,036 $ 143,504
Operating expenses:
Salaries, wages and other employee benefits 6,637 6,396 21,446 18,693
Purchased transportation 17,018 17,814 50,659 52,004
Depreciation and amortization 769 784 2,372 2,331
Maintenance 1,898 2,241 6,078 7,640
Rents and leases 636 694 1,950 2,084
Owner operators 12,882 12,506 37,856 35,684
Fuel and fuel-related expenses 5,372 5,075 16,222 16,320
Other operating expenses 2,052 2,177 7,260 5,917
Other income (78) (30) (262) (41)
Total operating expenses $ 47,186 $ 47,657 $ 143,581 $ 140,632
