News release via Canada NewsWire, Toronto 416-863-9350 Attention Business/Financial Editors: Vitran reports 2008 first quarter results ------------------------------------------------------------------------- REMINDER: Vitran management will conduct a conference call and webcast tomorrow, April 24, at 10:00 a.m. ET, to discuss the Company's 2008 first quarter results Conference call dial-in: 800/734-8507 Live Webcast: www.vitran.com (select "Investor Relations") ------------------------------------------------------------------------- TORONTO, April 23 /CNW/ - Vitran Corporation Inc. (NASDAQ: VTNC, TSX: VTN), a North American transportation and logistics firm, today announced financial results for the first quarter of 2008, the three-month period ended March 31, 2008 (all figures reported in $U.S.). Vitran reported net income of $1.1 million, or $0.08 per diluted share, on a 15.2 percent increase in revenue to $177.5 million for the quarter. In the comparable 2007 three-month period, the Company achieved net income of $3.4 million, or $0.25 per diluted share on revenue of $154.1 million. "Downward pressure on Vitran's margins continued during the first quarter of 2008, as the weak economic environment continued to weigh on our bottom-line profitability," stated Vitran President and Chief Executive Officer Rick Gaetz. "Internal integration initiatives at the Company are proceeding, including the U.S. operating system transition, which is imminent. The integration has been a Company-wide distraction, which has negatively impacted recent quarterly operating results. "We look forward to completing this process, and putting it behind us due to the tremendous long-term organizational benefits. As soon as our system is fully operational we will proactively commence rolling out Vitran's inter-regional and cross-border value-added services to our customer base, which has been anxiously looking forward to these additional alternatives from us. "Notwithstanding these issues we faced during the quarter, it is worth noting that in addition to our overall revenue increase, Vitran achieved a daily tonnage improvement of 3.1 percent during the period, and our cross-border revenue grew 51 percent," concluded Mr. Gaetz. Segmented Results Income from operations at Vitran's LTL (less-than-truckload) segment was $2.1 million in the first quarter of 2008. LTL segment revenue expanded 9.7 percent to $149.4 million, and the LTL OR (operating ratio) was 98.6 for the three-month period, versus an OR of 95.4 in the prior year quarter. LTL revenue per shipment improved 6.6 percent, revenue per hundredweight rose 3.3 percent and tonnage increased 1.5 percent. The number of shipments declined by 1.6 percent during Q1 of 2008. Income from operations rose 63.6 percent at Vitran's Logistics segment in the 2008 first quarter to $720,000. The segment's OR was 96.4, versus 95.4 in the year-earlier quarter. The Truckload segment achieved income from operations during the three-month period of $379,000, compared to $295,000 in 2007, and the TL OR improved to 95.5, versus a 96.5 OR in the prior year period. 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) Vitran Corporation Inc. Consolidated Balance Sheets (in thousands of United States dollars, US GAAP) Mar. 31, 2008 Dec. 31, 2007 (unaudited) (audited) Assets Current assets: Accounts receivable $ 81,932 $ 74,261 Inventory, deposits and prepaid expenses 11,726 11,325 Income and other taxes receivable 1,083 2,232 Deferred income taxes 3,039 2,599 ------------- ------------- 97,780 90,417 Property and equipment 169,232 169,062 Intangible assets 15,019 13,645 Goodwill 122,013 124,375 ------------- ------------- $ 404,044 $ 397,499 ------------- ------------- ------------- ------------- Liabilities and Shareholders' Equity Current liabilities: Bank overdraft $ 3,111 $ 390 Accounts payable and accrued liabilities 73,296 67,468 Current portion of long-term debt 17,325 18,144 ------------- ------------- 93,732 86,002 Long-term debt 109,278 109,831 Other 4,943 3,512 Deferred income taxes 6,125 7,810 Shareholders' equity: Common shares 77,424 77,246 Additional paid-in capital 2,713 2,436 Retained earnings 105,612 104,478 Accumulated other comprehensive income 4,217 6,184 ------------- ------------- 189,966 190,344 ------------- ------------- $ 404,044 $ 397,499 ------------- ------------- ------------- ------------- (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 Three months Ended ended Mar. 31, 2008 Mar. 31, 2007 Revenue $ 177,507 $ 154,136 Operating expenses 153,099 128,456 Selling, general and administrative expenses 16,921 15,099 Other expense 1 29 Depreciation and amortization expense 5,560 4,945 ------------- ------------- 175,581 148,529 Income from operations before undernoted 1,926 5,607 Interest expense, net 2,130 2,064 Income (loss) from operations before income taxes (204) 3,543 Income (recovery) taxes (1,338) 156 ------------- ------------- Net income $ 1,134 $ 3,387 ------------- ------------- ------------- ------------- Basic and Diluted income per share - Net income $ 0.08 $ 0.25 Weighted average number of shares: Basic 13,465,357 13,438,065 ------------- ------------- ------------- ------------- Diluted 13,611,446 13,651,872 ------------- ------------- ------------- ------------- (Statements of Cash Flows follows)
Vitran Corporation Inc. Consolidated Statements Of Cash Flows (Unaudited) (in thousands of United States dollars, US GAAP) Three months Three months ended ended Mar. 31, 2008 Mar. 31, 2007 Cash provided by (used in): Operations: Net income $ 1,134 $ 3,387 Items not involving cash from operations: Depreciation and amortization expense 5,560 4,945 Deferred income taxes (1,198) 967 Share-based compensation expense 277 208 Loss on sale of property and equipment 1 29 Change in non-cash working capital components (1,113) (3,697) -------------- -------------- 4,661 5,839 Investments: Purchase of property and equipment (7,108) (4,550) Proceeds on sale of property and equipment 191 71 Additional payment due to acquisition of subsidiary -- (538) -------------- -------------- (6,917) (5,017) Financing: Revolving credit facility and bank overdraft 6,625 3,284 Repayment of long-term debt (2,571) (2,255) Repayment of capital leases (2,241) (1,640) Issue of Common Shares upon exercise of stock options 178 127 -------------- -------------- 1,991 (484) Effect of translation adjustment on cash 265 (249) -------------- -------------- Increase in cash and cash equivalents -- 89 Cash and cash equivalent position, beginning of period -- 1,454 -------------- -------------- Cash and cash equivalent position, end of period $ -- $ 1,543 -------------- -------------- -------------- -------------- Change in non-cash working capital components: Accounts receivable $ (7,671) $ (7,010) Inventory, deposits and prepaid expenses (401) 387 Income and other taxes recoverable/payable 1,131 (2,597) Accounts payable and accrued liabilities 5,828 5,523 -------------- -------------- $ (1,113) $ (3,697) -------------- -------------- -------------- -------------- (additional financial information follows)
Supplementary Segmented Financial Information (in thousands of United States dollars) (Unaudited) ------------------------------------- ---------------------------------- For the For the quarter ended quarter ended March 31, 2008 March 31, 2007 ------------------------------------- ---------------------------------- Inc. from Inc. from Revenue Operations OR% Revenue Operations OR% ------------------------------------- ---------------------------------- LTL 149,415 2,137 98.6 LTL 136,157 6,230 95.4 ------------------------------------- ---------------------------------- LOG 19,760 720 96.4 LOG 9,663 440 95.4 ------------------------------------- ---------------------------------- TL 8,332 379 95.5 TL 8,316 295 96.5 ------------------------------------- ---------------------------------- LTL SEGMENT - Statistical Information (Unaudited) ---------------------------------------------- For the quarter ended March 31, 2008 -------------- ---------------------------------------------- LTL Q. over Q. ($U.S.) Division % Change ---------------------------------------------- Revenue (000's) $ 149,415 9.7 ---------------------------------------------- No. of Shipments 977,811 (1.6) ---------------------------------------------- Weight (000's lbs) 1,490,474 1.5 ---------------------------------------------- Revenue per shipment $ 152.81 6.6 ---------------------------------------------- Revenue per CWT $ 10.02 3.3 ---------------------------------------------- >> %SEDAR: 00004231E %CIK: 0000946823 /For further information: Richard Gaetz, President/CEO, Sean Washchuk, VP Finance/CFO, Vitran Corporation Inc., (416) 596-7664; Robert Rinderman, Steven Hecht, Jaffoni & Collins Incorporated, (212) 835-8500, or VTNC(at)jcir.com/ (VTNC VTN.) CO: Vitran Corporation Inc. CNW 16:17e 23-APR-08
