|
REMINDER: |
Vitran management will conduct a conference
call and webcast today: |
November 1, at 10:00 a.m. ET |
to discuss the Company's 2013 third quarter
results |
Conference call dial-in: 1-888-396-8049 or
416-764-8646 (International) |
Live Webcast: www.vitran.com (select
"Investor Relations") |
Vitran Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), 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.
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%.
About Vitran Corporation Inc.
Vitran Corporation Inc., through its wholly-owned subsidiaries,
is a group of transportation companies offering national, regional,
expedited and transborder less-than-truckload services throughout
Canada. To find out more about Vitran Corporation Inc.
(Nasdaq:VTNC) (TSX:VTN), visit the website at www.vitran.com.
This press release contains forward-looking statements within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and applicable Canadian securities laws.
Forward-looking statements may be generally identifiable by use of
the words "believe", "anticipate", "intend", "estimate", "expect",
"project", "may", "plans", "continue", "will", "focus", "should",
"endeavor" or the negative of these words or other variations on
these words or comparable terminology. These forward-looking
statements, which include statements regarding the future of the
Canadian LTL business and the reduction of expenses related to the
corporate office, are based on current expectations and are
naturally subject to uncertainty and changes in circumstances that
may cause actual results to differ materially from those expressed
or implied by such forward-looking statements.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause Vitran's actual
results, performance or achievements to differ materially from
those projected in the forward-looking statements. Factors
that may cause such differences include, but are not limited to,
technological change, increases in fuel costs, regulatory changes,
the general health of the economy, seasonal fluctuations,
unanticipated changes in railroad capacities, exposure to credit
risks, changes in labour relations and competitive
factors. More detailed information about these and other
factors is included in the annual MD&A on Form 10K under the
heading "General Risks and Uncertainties." Many of these
factors are beyond the Company's control; therefore, future events
may vary substantially from what the Company currently foresees.
You should not place undue reliance on such forward-looking
statements. Vitran Corporation Inc. does not assume the
obligation to revise or update these forward-looking statements
after the date of this document or to revise them to reflect the
occurrence of future unanticipated events, except as may be
required under applicable securities laws.
This press release refers to operating ratio, EBITDA (earnings
before interest, tax, depreciation and amortization ("EBITDA"),
adjusted EBITDA and adjusted income from continuing operations
which are non-GAAP financial measures that do not have any
standardized meaning prescribed by GAAP. The Company's presentation
of these non-GAAP financial measures may not be comparable to
similarly titled measures used by other companies. These non-GAAP
financial measures are intended to provide additional information
to investors concerning the Company's performance.
(tables follow)
Vitran Corporation
Inc. |
Consolidated Balance
Sheets |
(in thousands of United States
dollars, US GAAP) |
(Unaudited) |
|
Sept 30, 2013 |
Dec 31, 2012 |
Assets |
|
|
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 |
|
|
|
|
|
Income from continuing operations before the
undernoted |
2,187 |
1,969 |
2,455 |
2,872 |
|
|
|
|
|
Interest expense, net |
(655) |
(750) |
(2,536) |
(2,242) |
|
|
|
|
|
Income (loss) from continuing operations
before income taxes |
1,532 |
1,219 |
(81) |
630 |
|
|
|
|
|
Income tax expense |
134 |
482 |
51 |
677 |
|
|
|
|
|
Net income (loss) from continuing
operations |
1,398 |
737 |
(132) |
(47) |
|
|
|
|
|
Discontinued operations, net of income
taxes |
(74,092) |
(10,837) |
(21,863) |
(20,032) |
|
|
|
|
|
Net loss |
$ (72,694) |
$ (10,100) |
$ (21,995) |
$ (20,079) |
|
|
|
|
|
Basic and Diluted income (loss) per
share: |
|
|
|
|
Income (loss) from continuing
operations |
$ 0.09 |
$ 0.04 |
$ (0.01) |
$ -- |
Discontinued operations loss |
$ (4.51) |
$ (0.66) |
$ (1.33) |
$ (1.23) |
Net loss |
$ (4.42) |
$ (0.62) |
$ (1.34) |
$ (1.23) |
|
|
|
|
|
Weighted average number of shares: |
|
|
|
|
Basic |
16,432,241 |
16,399,241 |
16,422,208 |
16,388,569 |
Diluted |
16,432,241 |
16,399,241 |
16,422,208 |
16,388,569 |
(Consolidated Statements of Cash
Flows follows)
Vitran Corporation
Inc. |
Consolidated Statements
Of Cash Flows |
(Unaudited, in thousands of
United States dollars, US GAAP) |
|
Three months
ended September 30, |
Nine months ended
September 30, |
|
2013 |
2012 |
2013 |
2012 |
Cash provided by (used in): |
|
|
|
|
Operations: |
|
|
|
|
Net loss |
$ (72,694) |
$ (10,100) |
$ (21,995) |
$ (20,079) |
Items not involving cash from
operations: |
|
|
|
|
Depreciation and amortization |
769 |
784 |
2,372 |
2,331 |
Deferred income taxes |
-- |
7 |
(178) |
(38) |
Share-based compensation expense |
42 |
102 |
229 |
329 |
Gain on sale of property and
equipment |
(78) |
(30) |
(262) |
(41) |
Loss from discontinued operations |
74,092 |
10,837 |
21,863 |
20,032 |
Change in non-cash working capital
components |
146 |
(125) |
(1,001) |
(1,971) |
Continuing operations |
2,277 |
1,475 |
1,028 |
563 |
Discontinued operations |
(18,205) |
(4,915) |
(49,179) |
(6,512) |
|
(15,928) |
(3,440) |
(48,151) |
(5,949) |
Investments: |
|
|
|
|
Advance on sale of business |
400 |
-- |
400 |
-- |
Proceeds from sale of business, net of
cash divested |
-- |
-- |
94,102 |
-- |
Purchase of property and equipment |
(118) |
(2,347) |
(661) |
(5,656) |
Proceeds on sale of property and
equipment |
78 |
33 |
262 |
77 |
Continuing operations |
360 |
(2,314) |
94,103 |
(5,579) |
Discontinued operations |
1,490 |
(3,600) |
1,181 |
(6,311) |
|
1,850 |
(5,914) |
95,284 |
(11,890) |
|
|
|
|
|
Financing: |
|
|
|
|
Change in revolving credit facility and
bank overdraft |
-- |
2,021 |
(8,500) |
2,121 |
Repayment of long-term debt |
(274) |
(243) |
(843) |
(726) |
Repayment of capital leases |
(41) |
(41) |
(123) |
(126) |
Financing costs |
-- |
-- |
(121) |
-- |
Issue of common shares upon exercise of
stock options |
-- |
-- |
170 |
151 |
Continuing operations |
(315) |
1,737 |
(9,417) |
1,420 |
Discontinued operations |
(1,674) |
6,507 |
(12,492) |
15,435 |
|
(1,989) |
8,244 |
(21,909) |
16,855 |
Effect of foreign exchange translation on
cash |
736 |
(201) |
447 |
(220) |
Increase (decrease) in cash and cash
equivalents |
(15,331) |
(1,311) |
25,671 |
(1,204) |
Cash and cash equivalents, beginning of
period |
41,235 |
1,311 |
233 |
1,204 |
Cash and cash equivalents, end of period |
$ 25,904 |
$ -- |
$ 25,904 |
$ -- |
|
|
|
|
|
Change in non-cash working capital
components: |
|
|
|
|
Accounts receivable |
$ (728) |
$ (2,183) |
$ (3,368) |
$ (4,914) |
Inventory, deposits and prepaid
expenses |
(208) |
(174) |
705 |
196 |
Income taxes recoverable/payable |
(58) |
58 |
(877) |
(497) |
Accounts payable and accrued
liabilities |
1,140 |
2,174 |
2,539 |
3,244 |
|
$ 146 |
$ (125) |
$ (1,001) |
$ (1,971) |
(additional financial information
follows)
Supplementary Financial
Information |
(in thousands of United States
dollars) |
(Unaudited) |
|
For the quarter ended
September 30, 2013 |
For the quarter ended
September 30, 2012 |
|
Revenue |
Inc. from
Operations |
OR% |
|
Revenue |
Inc. from
Operations |
OR% |
LTL |
$ 49,373 |
$ 3,416 |
93.1 |
LTL |
$ 49,626 |
$ 3,264 |
93.4 |
Corporate and
Other |
$ -- |
$ (1,229) |
-- |
Corporate and
Other |
$ -- |
$ (1,295) |
-- |
Total |
$ 49,373 |
$ 2,187 |
95.6 |
Total |
$ 49,626 |
$ 1,969 |
96.0 |
|
|
For the nine months ended
September 30, 2013 |
For the nine months ended
September 30, 2012 |
|
Revenue |
Inc. from
Operations |
OR% |
|
Revenue |
Inc. from
Operations |
OR% |
LTL |
$ 146,036 |
$ 8,269 |
94.3 |
LTL |
$ 143,504 |
$ 6,847 |
95.2 |
Corporate and
Other |
$ -- |
$ (5,814) |
-- |
Corporate and
Other |
$ -- |
$ (3,975) |
-- |
Total |
$ 146,036 |
$ 2,455 |
98.3 |
Total |
$ 143,504 |
$ 2,872 |
98.0 |
|
|
Statistical
Information |
(Unaudited) |
For the quarter ended
September 30, 2013 |
($U.S.) |
Canadian LTL
Division |
Q. over Q. %
Change |
Revenue (000's) |
$ 49,373 |
* 3.9% |
No. of Shipments |
230,826 |
3.8% |
Weight (000's
lbs) |
424,393 |
(2.5%) |
Revenue per
shipment |
$ 213.90 |
* 0.1% |
Revenue per CWT |
$ 11.63 |
* 6.6% |
|
For the nine months ended
September 30, 2013 |
($U.S.) |
Canadian LTL
Division |
Y. over Y. %
Change |
Revenue (000's) |
$ 146,036 |
* 4.2% |
No. of Shipments |
675,917 |
4.9% |
Weight (000's
lbs) |
1,280,234 |
1.9% |
Revenue per
shipment |
$ 216.06 |
* (0.7%) |
Revenue per CWT |
$ 11.41 |
* 2.2% |
|
* All % changes have
been normalized for the impact of foreign exchange fluctuation,
period over period |
|
Non-GAAP
Measures |
|
|
|
|
Three months ended September
30, |
Nine months ended September
30, |
|
2013 |
2012 |
2013 |
2012 |
|
|
|
|
|
Net income (loss) from continuing
operations |
$ 1,398 |
$ 737 |
$ (132) |
$ (47) |
Income taxes expense |
134 |
482 |
51 |
677 |
Interest expense, net |
655 |
750 |
2,536 |
2,242 |
Depreciation and amortization |
769 |
784 |
2,372 |
2,331 |
EBITDA |
2,956 |
2,753 |
4,827 |
5,203 |
Severance |
-- |
-- |
1,738 |
-- |
Adjusted EBITDA |
$ 2,956 |
$ 2,753 |
$ 6,565 |
$ 5,203 |
|
|
|
|
|
|
|
|
|
|
|
Three months ended September
30, |
Nine months ended September
30, |
|
2013 |
2012 |
2013 |
2012 |
|
|
|
|
|
Net income (loss) from continuing
operations |
$ 1,398 |
$ 737 |
$ (132) |
$ (47) |
Severance |
-- |
-- |
1,738 |
-- |
Write-off of financing costs |
-- |
-- |
350 |
-- |
Tax effect on normalizing adjustments |
-- |
-- |
(554) |
-- |
Adjusted net income (loss)
from Continuing operations |
$ 1,398 |
$ 737 |
$ 1,402 |
$ (47) |
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
Basic |
16,432,241 |
16,399,241 |
16,422,208 |
16,388,569 |
Diluted |
16,432,241 |
16,399,241 |
16,422,208 |
16,388,569 |
|
|
|
|
|
Basic and diluted net income (loss) per share
from continuing operations |
$ 0.09 |
$ 0.04 |
$ (0.01) |
$ -- |
Adjusted basic and diluted income per share
from continuing operations |
$ 0.09 |
$ 0.04 |
$ 0.09 |
$ -- |
|
|
|
|
|
|
|
|
|
Three months ended September
30, |
Nine months ended September
30, |
|
2013 |
2012 |
2013 |
2012 |
Operating Ratio: |
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
Total operating expenses |
$ 47,186 |
$ 47,657 |
$ 143,581 |
$ 140,632 |
Revenue |
49,373 |
49,626 |
146,036 |
143,504 |
Operating ratio |
95.6% |
96.0% |
98.3% |
98.0% |
|
|
|
|
|
Canadian LTL |
|
|
|
|
Total operating expenses |
$ 45,957 |
$ 46,362 |
$ 137,767 |
$ 136,657 |
Revenue |
49,373 |
49,626 |
146,036 |
143,504 |
Operating ratio |
93.1% |
93.4% |
94.3% |
95.2% |
CONTACT: William Deluce, Interim President/CEO
Fayaz Suleman, VP Finance/CFO
Vitran Corporation Inc.
416/596-7664
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