EXHIBIT 99.1
Vitran Reports Improved 2010 First Quarter Results
REMINDER:
Vitran management will conduct a conference call and webcast tomorrow,
April 28, at 9:00 a.m. ET,
to discuss the Company's 2010 first quarter results
Conference call dial-in: 1-888-396-8064 or 416-764-8649 (International)
Live Webcast: www.vitran.com (select "Investor Relations")
TORONTO, April 27, 2010 (GLOBE NEWSWIRE) -- Vitran Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), a North American transportation and supply chain firm, today announced financial results for the first quarter of 2010, the three-month period ended March 31, 2010 (all figures reported in $U.S.).
Vitran reported a net loss of $0.9 million, or $0.06 per diluted share, on revenues of $165.9 million for the quarter ended March 31, 2010. In the comparable 2009 three-month period, the Company recorded a net loss of $2.4 million, or $0.17 per diluted share on revenue of $139.6 million. The fluctuation in fuel surcharge and foreign exchange on Vitran's Canadian operations accounted for $13.1 million of the revenue increase for the first quarter of 2010 compared to the first quarter of 2009.
"Although Vitran posted a loss for the first quarter of 2010, it was a significant improvement compared to the first quarter of 2009 and sequentially compared to the fourth quarter of 2009," stated Vitran President and Chief Executive Officer Rick Gaetz.
"Our LTL segment improved shipments and tonnage at a double digit rate over the prior year first quarter. The growth rate for each month in 2010 escalated compared to the prior year month. As a result, March 2010 we posted our best LTL monthly operating ratio since June 2008.
"The economic environment appears to have shown signs of improvement and the U.S. LTL pricing environment may have stabilized. Our Supply Chain Operation performed well in all geographic regions within North America.
"With the first quarter improvements in income from operations in all our segments, LTL, Supply Chain Operation and Truckload, we were able to reduce our consolidated leverage ratio resulting in another 50 basis point reduction on our syndicated debt margins starting in the second quarter of 2010," concluded Mr. Gaetz.
Segmented Results
The LTL (less-than-truckload) segment posted notable improvements in revenue and results from operations. Revenue improved to $137.0 million for the first quarter of 2010 compared to $115.4 million in the first quarter of 2009. The segment recorded a loss from operations for the 2010 first quarter of $0.6 million, with an OR (operating ratio) of 100.5% compared to a loss from operations of $2.7 million and an OR of 102.3% in the comparable period a year ago.
These improvements resulted from an increase in shipments and tonnage of 10.9% and 12.1% respectively in the LTL segment. More importantly, the LTL segment posted a positive operating ratio of 96.3% for the month of March 2010.
The Supply Chain Operation segment recorded an increase in revenue of 23.8% to $20.1 million, a 223.8% improvement in income from operations to $1.4 million and a 93.2% OR in the first quarter of 2010. The Truckload segment improved revenue 9.7% to $8.8 million and achieved income from operations during the three-month period of $0.5 million with an OR of 94.4%.
About Vitran Corporation Inc.
Vitran Corporation Inc. is a North American group of transportation companies offering less-than-truckload, supply chain, truckload, and freight brokerage services. To find out more about Vitran Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), visit the website at www.vitran.com.
The Vitran Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7302
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 obligatio n 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)
| Vitran Corporation Inc. | | |
| Consolidated Balance Sheets | | |
| (in thousands of United States dollars, US GAAP) | | |
| | | |
| | Mar 31, 2010 | Dec 31, 2009 |
| | (unaudited) | (audited) |
| Assets | | |
| Current assets: | | |
| Accounts Receivable | $ 82,053 | $ 69,591 |
| Inventory, deposits and prepaid expenses | 11,911 | 11,539 |
| Income and other taxes recoverable | 1,730 | 683 |
| Deferred income taxes | 3,822 | 3,495 |
| | 99,516 | 85,308 |
| Property and equipment | 145,497 | 145,792 |
| Intangible assets | 10,138 | 10,766 |
| Goodwill | 19,085 | 18,878 |
| Deferred income taxes | 33,259 | 33,594 |
| | $ 307,495 | $ 294,338 |
| | | |
| Liabilities and Shareholders' Equity | | |
| Current liabilities: | | |
| Bank overdraft | $ 1,287 | $ 105 |
| Accounts payable and accrued liabilities | 75,775 | 65,446 |
| Current portion of long-term debt | 16,551 | 17,125 |
| | 93,613 | 82,676 |
| | | |
| Long-term debt | 74,990 | 72,956 |
| Other | 2,563 | 2,919 |
| | | |
| Shareholders' equity: | | |
| Common shares | 99,584 | 99,584 |
| Additional paid-in capital | 4,417 | 4,264 |
| Retained earnings | 28,352 | 29,281 |
| Accumulated other comprehensive income | 3,976 | 2,658 |
| | 136,329 | 135,787 |
| | $ 307,495 | $ 294,338 |
| | | |
| (Consolidated Statements of Income follows) | | |
| | | |
| Vitran Corporation Inc. | | |
| Consolidated Statements of Income | | |
| (Unaudited) | | |
| (in thousands of United States dollars except per share amounts, US GAAP) | | |
| | | |
| | Three
months ended | Three
months ended |
| | Mar 31, 2010 | Mar 31, 2009 |
| | | |
| | | |
| Revenue | $ 165,931 | $ 139,635 |
| Operating expenses | 160,798 | 137,462 |
| Depreciation and amortization expense | 4,935 | 5,027 |
| | 165,733 | 142,489 |
| | | |
| Income (loss) from operations before the undernoted | 198 | (2,854) |
| | | |
| Interest expense, net | 2,103 | 2,196 |
| | | |
| Loss from operations before income taxes | (1,905) | (5,050) |
| | | |
| Income tax recovery | (976) | (2,694) |
| | | |
| Net loss | $ (929) | $ (2,356) |
| | | |
| | | |
| Basic loss per share | $ (0.06) | $ (0.17) |
| Diluted loss per share | $ (0.06) | $ (0.17) |
| | | |
| Weighted average number of shares: | | |
| Basic | 16,266,441 | 13,498,159 |
| Diluted | 16,266,441 | 13,498,159 |
| | | |
| (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 | Three
months ended |
| | Mar 31, 2010 | Mar 31, 2009 |
| | | |
| Cash provided by (used in): | | |
| Operations: | | |
| Net loss | $ (929) | $ (2,356) |
| Items not involving cash from operations: | | |
| Depreciation and amortization expense | 4,935 | 5,027 |
| Deferred income taxes | (357) | (2,320) |
| Share-based compensation expense | 153 | 234 |
| Gain on sale of property and equipment | (144) | (429) |
| Change in non-cash working capital components | (3,709) | (246) |
| | (51) | (90) |
| | | |
| Investments: | | |
| Purchase of property and equipment | (2,865) | (1,627) |
| Proceeds on sale of property and equipment | 710 | 1,047 |
| | (2,155) | (580) |
| | | |
| Financing: | | |
| Revolving credit facility and bank overdraft | 7,822 | 4,626 |
| Repayment of long-term debt | (3,908) | (2,268) |
| Repayment of capital leases | (1,273) | (1,820) |
| | 2,641 | 538 |
| | | |
| Effect of translation adjustment on cash | (435) | 132 |
| | | |
| Increase (decrease) in cash position | -- | -- |
| Cash and cash equivalent position, beginning of period | -- | -- |
| Cash and cash equivalent position, end of period | $ -- | $ -- |
| | | |
| | | |
| Change in non-cash working capital components: | | |
| Accounts receivable | $ (12,462) | $ (67) |
| Inventory, deposits and prepaid expenses | (372) | 312 |
| Income and other taxes recoverable | (1,204) | (723) |
| Accounts payable and accrued liabilities | 10,329 | 232 |
| | $ (3,709) | $ (246) |
| | | |
| ( additional financial information follows) | | |
| Supplemental Segmented Financial Information | | | | | |
| (000's of $US) (Unaudited) | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| For the quarter ended March 31, 2010 | | | | For the quarter ended March 31, 2009 | |
| | | | | | | | | |
| | Revenue | Income from
Operations | OR % | | | Revenue | Income from
Operations | OR % |
| | | | | | | | | |
| LTL | $ 137,018 | $ (623) | 100.5% | | LTL | $ 115,364 | $ (2,684) | 102.3% |
| SCO | $ 20,125 | $ 1,363 | 93.2% | | SCO | $ 16,262 | $ 421 | 97.4% |
| TL | $ 8,788 | $ 488 | 94.4% | | TL | $ 8,009 | $ 192 | 97.6% |
| LTL Segment - Statistical Information |
| (Unaudited) | |
| | | |
| | | |
| ($US) | LTL Division | Q. over Q.
% Change |
| | | |
| Revenue (000's) | $ 137,018 | 12.4%* |
| No. of Shipments | 946,319 | 10.9% |
| Weight (000's lbs) | 1,431,596 | 12.1% |
| Revenue per shipment | $ 144.79 | 1.4%* |
| Revenue per CWT | $ 9.57 | 0.3%* |
| | | |
| * All % changes have been normalized for the impact of foreign exchange fluctuation, period over period |
CONTACT: Vitran Corporation Inc.
Richard Gaetz, President/CEO
Sean Washchuk, VP Finance/CFO
416/596-7664