REMINDER:
Vitran management will conduct a conference call and webcast today, July 20 at 1:00 p.m. (ET), to discuss the Company’s 2006 second quarter results.
Conference call dial-in:800/706-9124
Live Webcast: www.vitran.com (select “Investor Relations”)
| | | |
CONTACT: | | |
| Richard Gaetz, President/CEO | | Robert Rinderman |
| Sean Washchuk, VP Finance/CFO | | Steven Hecht |
| Vitran Corporation Inc. | | Jaffoni & Collins Incorporated |
| 416/596-7664 | | 212/835-8500 or VTNC@jcir.com |
FOR IMMEDIATE RELEASE | | |
VITRAN REPORTS RECORD QUARTERLY REVENUE AND NET INCOME
$0.45 DILUTED EPS ON 18 PERCENT REVENUE RISE FOR Q2 2006
- - Extends Net Income Improvement Streak to 19 Consecutive Quarters -
TORONTO, ONTARIO (July 20, 2006) — Vitran Corporation Inc. (NASDAQ: VTNC, TSX: VTN), a North American transportation and logistics firm, today announced record quarterly financial results for the 2006 second quarter ended June 30, 2006 (all figures reported in $U.S.).
Vitran achieved net income of $5.8 million, or 0.45 per diluted share, on revenue of $123.6 million for the 2006 second quarter. In the comparable 2005 quarter, Vitran recorded net income of $4.8 million, or $0.38 per diluted share, on revenue of $105.1 million.
“The 2006 second quarter was another record period for Vitran, as we once again achieved double-digit revenue, net income and EPS growth — extending our streak of net income improvement to 19 consecutive quarters. Our recent less-than-truckload acquisitions are performing as expected, integration plans are progressing, and we are focusing the Company’s cross-marketing efforts into and out of the new geographic regions that Vitran is now serving. These initiatives to improve overall density, combined with efforts to enhance yields and lower costs will lay the foundation for strong results in future periods,” stated Vitran President and Chief Executive Officer Rick Gaetz.
“We have $13 million of cash on hand and an expanded credit facility totalling $75 million, $58 million of which is undrawn, to support potential expansion initiatives and acquisition opportunities to continue growing our North American LTL freight network,” concluded Mr. Gaetz.
During the six-month period ended June 30, 2006, Vitran achieved net income of $9.5 million, or $0.74 per diluted share, on revenue of $238.8 million. In the comparable first half of 2005, the Company reported net income of $7.6 million, or $0.59 per diluted share, on revenue of $199.0 million.
Segmented Results
Income from operations at Vitran’s LTL (less-than-truckload) segment improved 21.3 percent during the 2006 second quarter to $8.0 million, and the LTL segment’s OR (operating ratio) during the three-month period was 92.4, in-line with the year-ago second quarter OR of 92.3. The LTL segment posted an 8.8 percent increase in shipments, 10.1 percent increase in tonnage and a 11.9 percent improvement in revenue per hundredweight, contributing to the improvement in revenue and income from operations.
The Logistics segment achieved a 3.7 percent improvement in income from operations with an OR of 93.8 for the 2006 second quarter, compared to 93.6 for the 2005 period. The Truckload segment recorded income from operations of $530,000, with an OR of 93.5 for the current quarter, compared to $716,000 and a 92.0 OR for the same period a year ago.
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. (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 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.
(tables follow)
