News Announcement
REMINDER:
Vitran management will conduct a conference call today, October 21st at 1:00 p.m. (Eastern), to discuss the Company’s 2004 third quarter results. Conference call dial-in: 800/731-1402 Live Webcast: http://www.vcall.com/CEPage.asp?ID=89400
CONTACT: | ||
| Richard Gaetz, President/CEO | Robert Rinderman | |
| Sean Washchuk, VP Finance/CFO | Purdy Tran | |
| Vitran Corporation Inc. | Jaffoni & Collins Incorporated | |
| 416/596-7664 | 212/835-8500 or VVN@jcir.com |
FOR IMMEDIATE RELEASE
VITRAN ACHIEVES RECORD QUARTERLY PERFORMANCE ON
49 PERCENT NET INCOME INCREASE IN 2004 THIRD QUARTER
- Reports Diluted EPS of $0.36 on Revenues of $97.0 Million -
TORONTO, ONTARIO (October 21, 2004) — Vitran Corporation Inc. (AMX: VVN, TSX: VTN), a North American transportation and logistics firm, today announced record financial results for the 2004 third quarter ended September 30, 2004, the Company’s twelfth consecutive quarter of net income improvement. During the period, Vitran achieved a 49 percent increase in net income to $4.5 million, or 0.36 per diluted share on revenues of $97.0 million. In the corresponding 2003 three-month period, Vitran had net income of $3.0 million, or $0.30 per diluted share on revenues of $84.9 million (all figures reported in $U.S.).
Vitran’s 2004 third quarter per share results are based on 12.8 million diluted and 10.2 million diluted weighted average shares outstanding during the 2004 and 2003 three-month periods, respectively. Vitran’s equity offering, completed in December 2003, accounts for the year-over-year increase in weighted average shares.
For the nine-months ended September 30, 2004, Vitran’s net income grew 47 percent to $10.6 million, or $0.83 per diluted share on revenues of $278.1 million. In the nine-month period ended September 30, 2003, the Company recorded net income of $7.2 million, or $0.72 per diluted share on $246.5 million in revenues. Per share results for the 2004 nine-month period are based on 12.7 million diluted and 10.0 million diluted weighted average shares outstanding, respectively.
-more-
“Vitran achieved positive comparisons across LTL operating metrics in the U.S. and Canadian operations during the 2004 third quarter,” stated President and Chief Executive Officer Rick Gaetz. “Importantly, we reduced our operating ratio (OR) for the LTL division to 92.5, compared to 93.4 in the year-ago period. We continue to be pleased with our consistent progress across all of our business segments, and a strong, Company-wide team effort led to a 49 percent net income increase, as we grew our top line by 14 percent in the third quarter.”
Segmented Results
Income from operations at Vitran’s LTL (less-than-truckload) segment rose 29 percent during the 2004 third quarter to $5.9 million, led by 13 percent revenue growth in the U.S. division, and a 9 percent rise at the Company’s Canadian LTL segment. All other key LTL metrics also showed year-over-year improvement during the 2004 three-month period.
Vitran’s Truckload segment increased revenue by 12 percent to $9.3 million and posted income from operations of $0.6 million in the 2004 third quarter. The OR improved to 94.0 from 97.5, reflecting a stable Midwestern U.S. pricing environment.
Vitran’s Logistics segment improved revenue and income from operations 22 percent and 6 percent, respectively in the 2004 third quarter, compared to the prior year period. The Company opened a new logistics facility in Toronto at the end of Q2’04, causing an increase in the third quarter OR to 95.9, as the Supply Chain unit works to fill the added capacity.
Guidance Update
Based on the 2004 financial performance to date and favorable current market conditions, Vitran management is increasing its 2004 full year EPS guidance range to $1.08 — $1.15 per diluted share, from a range of 1.05 to $1.12 per diluted share.
About Vitran Corporation Inc.
Vitran Corporation Inc. is a North American group of transportation companies offering less-than-truckload, logistics, truckload, and freight brokerage services. To find out more about Vitran Corporation Inc. (AMX:VVN, TSX:VTN), visit the website at www.vitran.com.
Information in this news announcement relating to projected growth, improvements in productivity and future results constitutes forward-looking statements. Actual results in future periods may differ materially from the forward-looking statements because of a number of risks and uncertainties, including but not limited to economic factors, demand for the Company’s services, fuel price fluctuations, the availability of employee drivers and independent contractors, risks associated with geographic expansion, capital requirements, claims exposure and insurance costs, competition and environmental hazards. Additional information about these and other factors that could affect the Company’s business is set forth in the Company’s Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.
(tables follow)
Vitran Corporation Inc.
Consolidated Balance Sheets
(in thousands of United States dollars)
| Sept. 30, 2004 | Dec. 31, 2003 | |||||||
| (unaudited) | ||||||||
Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 12,496 | $ | 12,417 | ||||
| Marketable securities | 28,196 | 26,996 | ||||||
| Accounts receivable | 44,864 | 35,685 | ||||||
| Inventory, deposits and prepaids | 6,240 | 5,847 | ||||||
| Future income tax assets | 3,763 | 4,101 | ||||||
| 95,559 | 85,046 | |||||||
| Capital assets | 35,687 | 35,102 | ||||||
| Goodwill | 45,019 | 44,865 | ||||||
| $ | 176,265 | $ | 165,013 | |||||
Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Account payable and accrued liabilities | $ | 37,521 | $ | 34,092 | ||||
| Income and other taxes payable | 2,929 | 4,007 | ||||||
| Current portion of long-term debt | 8,675 | 8,313 | ||||||
| 49,125 | 46,412 | |||||||
| Long-term debt | 11,427 | 17,931 | ||||||
| Future income tax liabilities | 3,882 | 2,715 | ||||||
| Shareholders’ equity: | ||||||||
| Capital stock | 60,760 | 59,358 | ||||||
| Contributed surplus | 177 | — | ||||||
| Retained earnings | 50,607 | 40,029 | ||||||
| Cumulative translation adjustment | 287 | (1,432 | ) | |||||
| 111,831 | 97,955 | |||||||
| $ | 176,265 | $ | 165,013 | |||||
(Statements of Income follows)
Vitran Corporation Inc.
Statements of Income
(unaudited)
(in thousands of United States dollars except for share and per share amounts)
| Three Months | Nine Months | |||||||||||||||
| Ended Sept. 30, | Ended Sept. 30, | |||||||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||||||
| Revenues | $ | 96,995 | $ | 84,889 | $ | 278,072 | $ | 246,493 | ||||||||
| Operating expenses | 82,269 | 71,453 | 236,508 | 209,193 | ||||||||||||
| Selling, general and administrative expenses | 7,267 | 7,577 | 23,631 | 22,552 | ||||||||||||
| 89,536 | 79,030 | 260,139 | 231,745 | |||||||||||||
| Income from operations before depreciation | 7,459 | 5,859 | 17,933 | 14,748 | ||||||||||||
| Depreciation expense | 1,295 | 1,360 | 3,835 | 4,093 | ||||||||||||
| Income from operations before undernoted | 6,164 | 4,499 | 14,098 | 10,655 | ||||||||||||
| Interest expense, net | (7 | ) | (310 | ) | (87 | ) | (1,117 | ) | ||||||||
| Gain (loss) on sale of capital assets | 29 | (37 | ) | 142 | (137 | ) | ||||||||||
| 22 | (347 | ) | 55 | (1,254 | ) | |||||||||||
| Income from operations before income taxes | 6,186 | 4,152 | 14,153 | 9,401 | ||||||||||||
| Income taxes | 1,644 | 1,107 | 3,575 | 2,215 | ||||||||||||
| Net income | $ | 4,542 | $ | 3,045 | $ | 10,578 | $ | 7,186 | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.37 | $ | 0.32 | $ | 0.86 | $ | 0.75 | ||||||||
| Diluted | $ | 0.36 | $ | 0.30 | $ | 0.83 | $ | 0.72 | ||||||||
| Weighted average number of shares | ||||||||||||||||
| Basic | 12,339,956 | 9,557,681 | 12,241,013 | 9,541,452 | ||||||||||||
| Diluted | 12,774,744 | 10,157,160 | 12,730,065 | 10,038,335 | ||||||||||||
(additional financial information follows)
Vitran Corporation Inc.
Consolidated Statements of Cash Flows
(unaudited)
(In thousands of United States dollars)
| Three months | Three months | Nine months | Nine months | |||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||
| Sept. 30, 2004 | Sept. 30, 2003 | Sept. 30, 2004 | Sept. 30, 2003 | |||||||||||||
| Cash provided by (used in): | ||||||||||||||||
Operations: | ||||||||||||||||
| Net income | $ | 4,542 | $ | 3,045 | $ | 10,578 | $ | 7,186 | ||||||||
| Items not involving cash from operations | ||||||||||||||||
| Depreciation and amortization | 1,295 | 1,360 | 3,835 | 4,093 | ||||||||||||
| Future income taxes | 1,726 | 516 | 1,557 | 236 | ||||||||||||
| Stock based compensation expense | 119 | — | 177 | — | ||||||||||||
| Loss (gain) on sale of capital assets | (29 | ) | 37 | (142 | ) | 137 | ||||||||||
| 7,653 | 4,958 | 16,005 | 11,652 | |||||||||||||
| Change in non-cash working capital components | (480 | ) | (1,719 | ) | (7,221 | ) | (5,726 | ) | ||||||||
| 7,173 | 3,239 | 8,784 | 5,926 | |||||||||||||
Investments: | ||||||||||||||||
| Purchase of capital assets | (915 | ) | (792 | ) | (3,993 | ) | (2,384 | ) | ||||||||
| Proceeds on sale of capital assets | 28 | 39 | 242 | 330 | ||||||||||||
| Purchase of marketable securities | (148 | ) | — | (439 | ) | — | ||||||||||
| (1,035 | ) | (753 | ) | (4,190 | ) | (2,054 | ) | |||||||||
Financing: | ||||||||||||||||
| Repayment of long-term debt | (2,169 | ) | (1,815 | ) | (6,146 | ) | (5,364 | ) | ||||||||
| Issue of Common shares upon exercise of stock options | 503 | 660 | 1,402 | 830 | ||||||||||||
| Repurchase of Common shares | — | — | — | (644 | ) | |||||||||||
| (1,666 | ) | (1,155 | ) | (4,744 | ) | (5,178 | ) | |||||||||
| Effect of translation adjustment on cash | 63 | 168 | 229 | (535 | ) | |||||||||||
| Increase (decrease) in cash position | 4,535 | 1,499 | 79 | (1,841 | ) | |||||||||||
| Cash position, beginning of period | 7,961 | 4,662 | 12,417 | 8,002 | ||||||||||||
| Cash position, end of period | $ | 12,496 | $ | 6,161 | $ | 12,496 | $ | 6,161 | ||||||||
| Change in non-cash working capital components: | ||||||||||||||||
| Accounts receivable | $ | (2,343 | ) | $ | (1,985 | ) | $ | (9,179 | ) | $ | (9,079 | ) | ||||
| Inventory, deposits and prepaid expenses | (1,077 | ) | (946 | ) | (393 | ) | 108 | |||||||||
| Income and other taxes recoverable/payable | (1,019 | ) | 139 | (1,078 | ) | 669 | ||||||||||
| Accounts payable and accrued liabilities | 3,959 | 1,073 | 3,429 | 2,576 | ||||||||||||
| $ | (480 | ) | $ | (1,719 | ) | $ | (7,221 | ) | $ | (5,726 | ) | |||||
(additional financial information follows)
LTL Statistical Information — U.S. and CDN Divisions
For the quarter ended
September 30, 2004
| U.S. LTL | Q. over Q. | CDN LTL | Q. over Q. | |||||||||||||||
| ($U.S.) | Division | % Change | ($CDN) | Division | % Change | |||||||||||||
Revenue (000’s) | $ | 44,866 | 12.5 | Revenue (000's) | $ | 44,023 | 8.8 | |||||||||||
No. of Shipments | 391,437 | 7.2 | No. of Shipments | 236,644 | 3.0 | |||||||||||||
Weight (000’s lbs) | 557,544 | 9.1 | Weight (000's lbs) | 442,382 | 2.3 | |||||||||||||
Revenue per shipment | $ | 114.62 | 4.9 | Revenue per shipment | $ | 186.03 | 5.6 | |||||||||||
Revenue per CWT | $ | 8.05 | 3.1 | Revenue per CWT | $ | 9.95 | 6.3 | |||||||||||
Supplementary Segmented Financial Information
(000’s of $US)
| For the quarter ended | For the quarter ended | |
| September 30, 2004 | September 30, 2003 |
| Inc. from | Inc. from | |||||||||||||||||||||||||
| Revenue | Operations | OR% | Revenue | Operations | OR% | |||||||||||||||||||||
LTL | 78,727 | 5,872 | 92.5 | LTL | 69,228 | 4,565 | 93.4 | |||||||||||||||||||
LOG | 8,936 | 367 | 95.9 | LOG | 7,347 | 345 | 95.3 | |||||||||||||||||||
TL | 9,332 | 562 | 94.0 | TL | 8,314 | 205 | 97.5 | |||||||||||||||||||
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