Exhibit 99.1
News release via Canada NewsWire, Toronto 416-863-9350
Attention Business/Financial Editors:
Vitran reports 2008 second quarter diluted EPS of $0.34 on record
revenue of $196 million
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REMINDER:
Vitran management will conduct a conference call and webcast today,
July 23, at 11:00 a.m. ET, to discuss the Company's 2008 second quarter
results
Conference call dial-in: 800/205-6183
Live Webcast: www.vitran.com (select "Investor Relations")
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TORONTO, July 23 /CNW/ - Vitran Corporation Inc. (NASDAQ: VTNC, TSX:
VTN), a North American transportation and logistics firm, today announced
financial results for the second quarter of 2008 and the six-month period
ended June 30, 2008 (all figures reported in $U.S.).
Vitran achieved record revenue of $196.0 million during the three-month
period, and net income of $4.6 million, or $0.34 per diluted share. In the
comparable 2007 second quarter, the Company reported revenue of
$170.1 million, and net income of $5.5 million, or $0.41 per diluted share.
"We are pleased with Vitran's top and bottom line performance in the 2008
second quarter, especially in light of the continued economic softness and the
challenges of operating in the face of record fuel costs," stated Vitran
President and Chief Executive Officer Rick Gaetz. "Our sequential earnings
growth was highlighted by a significant 370 basis point improvement in
Vitran's LTL (less than truckload) Operating Ratio (OR), compared to the 2008
first quarter.
"The sequential improvements were driven by double-digit growth in our
revenue per shipment, and a more than seven percent increase in revenue per
hundredweight during the period. Cross-border revenue also rose 32 percent,
compared to the 2007 second quarter. Most importantly, these gains were
achieved in the face of the successful implementation of our new IT operating
system.
"During the quarter, we announced the launch of the Company's U.S. LTL IT
operating platform, which is expected to facilitate revenue growth, increase
productivity, streamline our cost structure and help deliver bottom line
improvements. With this integral piece of our business model now in place, we
are focusing on streamlining Vitran's terminal operations in several
Midwestern U.S. states - merging 27 freight facilities into 13 - which is
expected to further enhance operating efficiency through the elimination of
redundant real estate that came in our PJAX acquisition. With the completion
of these initiatives, we will turn our attention to cross-selling Vitran's LTL
business both inter-regionally and across the border between the U.S. and
Canada."
Segmented Results
Income from operations at Vitran's LTL (less-than-truckload) segment was
$8.5 million in the 2008 second quarter. LTL segment revenue grew 11.6 percent
to $168.2 million, and the LTL OR (operating ratio) was 94.9 for the
three- month period, versus an OR of 94.0 in the prior year quarter. LTL
metrics improved during the quarter, with revenue per shipment rising
10.2 percent, revenue per hundredweight increasing 7.1 percent. Tonnage rose
2.0 percent, while the number of shipments was down 0.8 percent.
Income from operations rose 13.1 percent at Vitran's Logistics segment in
the 2008 second quarter to $831,000. The segment's OR was 95.7, versus 93.4 in
the year-earlier quarter. The Truckload segment achieved income from
operations for the three-month period of $321,000, compared to $405,000 in
2007, and the OR was 96.2 in the quarter, versus a 95.1 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)
June 30, 2008 Dec. 31, 2007
(unaudited) (audited)
Assets
Current assets:
Accounts receivable $ 93,837 $ 74,261
Inventory, deposits and prepaid expenses 12,238 11,325
Income and other taxes receivable 1,237 2,232
Deferred income taxes 3,205 2,599
----------- -----------
110,517 90,417
Property and equipment 166,881 169,062
Intangible assets 14,542 13,645
Goodwill 121,967 124,375
----------- -----------
$ 413,907 $ 397,499
----------- -----------
----------- -----------
Liabilities and Shareholders' Equity
Current liabilities:
Bank overdraft $ 3,677 $ 390
Accounts payable and accrued liabilities 76,457 67,468
Current portion of long-term debt 16,755 18,144
----------- -----------
96,889 86,002
Long-term debt 109,858 109,831
Other 3,560 3,512
Deferred income taxes 8,058 7,810
Shareholders' equity:
Common shares 77,424 77,246
Additional paid-in capital 3,005 2,436
Retained earnings 110,189 104,478
Accumulated other comprehensive income 4,924 6,184
----------- -----------
195,542 190,344
----------- -----------
$ 413,907 $ 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 Six Months
Ended June 30, Ended June 30,
2008 2007 2008 2007
---- ---- ---- ----
Revenues $ 195,990 $ 170,144 $ 373,497 $ 324,280
Operating expenses 165,102 140,780 318,201 269,236
Selling, general and
administrative expenses 17,769 15,283 34,690 30,382
Other income (134) (101) (133) (72)
Depreciation and
amortization expense 5,205 5,109 10,765 10,054
----------- ----------- ----------- -----------
187,942 161,071 365,523 309,600
Income from operations
before undernoted 8,048 9,073 9,974 14,680
Interest expense, net 2,122 2,115 4,252 4,179
Income from operations
before income taxes 5,926 6,958 5,722 10,501
Income taxes 1,349 1,425 11 1,581
----------- ----------- ----------- -----------
Net income $ 4,577 $ 5,533 $ 5,711 $ 8,920
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Basic income per share -
Net income $ 0.34 $ 0.41 $ 0.42 $ 0.66
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Diluted income per share -
Net income $ 0.34 $ 0.41 $ 0.42 $ 0.65
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Weighted average number
of shares
Basic 13,483,159 13,463,374 13,474,258 13,450,790
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Diluted 13,630,974 13,661,467 13,621,759 13,656,765
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
(Statements of Cash Flows follows)
VITRAN CORPORATION INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands of United States dollars, US GAAP)
Three Three Six Six
months months months months
Ended Ended Ended Ended
Jun. 30, Jun. 30, Jun. 30, Jun. 30,
2008 2007 2008 2007
Cash provided by (used in):
Operations:
Net income $ 4,577 $ 5,533 $ 5,711 $ 8,920
Items not involving cash
from operations
Depreciation and
amortization expense 5,205 5,109 10,765 10,054
Deferred income taxes 1,302 1,628 104 2,595
Share-based compensation
expense 292 251 569 459
Gain on sale of property
and equipment (134) (101) (133) (72)
Change in non-cash working
capital components (9,419) (2,066) (10,532) (5,763)
---------- ---------- ---------- ----------
1,823 10,354 6,484 16,193
Investments:
Purchase of property
and equipment (2,040) (6,870) (9,148) (11,420)
Proceeds on sale of
property and equipment 261 167 452 238
Additional payment due
to acquisition
of subsidiary - (6,383) - (6,921)
---------- ---------- ---------- ----------
(1,779) (13,086) (8,696) (18,103)
Financing:
Revolving credit facility
and bank overdraft 4,703 6,838 11,328 10,122
Repayment of long-term
debt (2,575) (2,255) (5,146) (4,510)
Repayment of capital leases (2,001) (1,674) (4,242) (3,314)
Issue of common shares
upon exercise of stock
options - 80 178 207
---------- ---------- ---------- ----------
127 2,989 2,118 2,505
Effect of translation
adjustment on cash (171) (753) 94 (1,002)
---------- ---------- ---------- ----------
Decrease in cash position - (496) - (407)
Cash and cash equivalent
position, beginning
of period - 1,543 - 1,454
---------- ---------- ---------- ----------
Cash position, end
of period $ - $ 1,047 $ - $ 1,047
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Change in non-cash working
capital components:
Accounts receivable $ (11,905) $ (6,354) $ (19,576) $ (13,364)
Inventory, deposits and
prepaid expenses (512) 696 (913) 1,083
Income and other taxes
receivable/payable (163) (1,301) 968 (3,898)
Accounts payable and
accrued liabilities 3,161 4,893 8,989 10,416
---------- ---------- ---------- ----------
$ (9,419) $ (2,066) $ (10,532) $ (5,763)
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Supplemental cash flow
information
Capital lease additions $ - $ 3,740 $ - $ 3,740
(additional financial information follows)
Supplementary Segmented Financial Information
(in thousands of United States dollars) (Unaudited)
----------------------------------- -----------------------------------
For the For the
quarter ended quarter ended
June 30, 2008 June 30, 2007
----------------------------------- -----------------------------------
Inc. from Inc. from
Revenue Operations OR% Revenue Operations OR%
----------------------------------- -----------------------------------
LTL 168,161 8,541 94.9 LTL 150,615 9,002 94.0
----------------------------------- -----------------------------------
LOG 19,314 831 95.7 LOG 11,225 735 93.4
----------------------------------- -----------------------------------
TL 8,515 321 96.2 TL 8,304 405 95.1
----------------------------------- -----------------------------------
----------------------------------- -----------------------------------
For the six For the six
months ended months ended
June 30, 2008 June 30, 2007
----------------------------------- -----------------------------------
Inc. from Inc. from
Revenue Operations OR% Revenue Operations OR%
----------------------------------- -----------------------------------
LTL 317,576 10,678 96.6 LTL 286,772 15,232 94.7
----------------------------------- -----------------------------------
LOG 39,074 1,551 96.0 LOG 20,888 1,175 94.4
----------------------------------- -----------------------------------
TL 16,847 700 95.8 TL 16,620 700 95.8
----------------------------------- -----------------------------------
LTL SEGMENT - Statistical Information
(Unaudited)
--------------------------------------------------
For the quarter ended
June 30, 2008
--------------------------------------------------
LTL Q. over Q.
($U.S.) Division % Change
--------------------------------------------------
Revenue (000's) $ 168,161 11.6
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No. of Shipments 1,037,700 (0.8)
--------------------------------------------------
Weight (000's lbs) 1,587,453 2.0
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Revenue per shipment $ 162.05 10.2
--------------------------------------------------
Revenue per CWT $ 10.59 7.1
--------------------------------------------------
--------------------------------------------------
Year-to-date
--------------------------------------------------
LTL Yr.-to-date
($U.S.) Division % Change
--------------------------------------------------
Revenue (000's) $ 317,576 10.7
--------------------------------------------------
No. of Shipments 2,015,511 (1.2)
--------------------------------------------------
Weight (000's lbs) 3,077,927 1.8
--------------------------------------------------
Revenue per shipment $ 157.57 8.4
--------------------------------------------------
Revenue per CWT $ 10.32 5.3
--------------------------------------------------
>>
%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 06:36e 23-JUL-08
