Exhibit 99.1
News release via Canada NewsWire, Toronto 416-863-9350
Attention Business/Financial Editors:
Vitran reports 2008 third quarter results
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REMINDER:
Vitran management will conduct a conference call and webcast today,
October 22, at 1:00 p.m. ET, to discuss the Company's 2008 third quarter
results
Conference call dial-in: 800/738-1032
Live Webcast: www.vitran.com (select "Investor Relations")
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TORONTO, Oct. 22 /CNW/ - Vitran Corporation Inc. (NASDAQ: VTNC, TSX:
VTN), a North American transportation and logistics firm, today announced
financial results for the third quarter of 2008 and the nine-month period
ended September 30, 2008 (all figures reported in $U.S.).
Vitran achieved record revenue of $198.6 million during the three-month
period, and net income of $2.1 million, or $0.15 per diluted share. In the
comparable 2007 third quarter, the Company reported revenue of $171.9 million,
and net income of $3.1 million, or $0.23 per diluted share.
"In the 2008 third quarter, the economic slowdown and significant
industry pricing pressures negatively impacted our LTL operating ratio, and
partially offset record revenues that were driven by a strong performance at
our logistics unit and 35 percent growth in the Company's LTL cross-border
revenue," stated Vitran President and Chief Executive Officer Rick Gaetz.
"Despite the ongoing economic softness being experienced throughout North
America and the uncertainty of when we will see a definitive turnaround,
Vitran is operating more efficiently and effectively today as a result of
several recently completed internal initiatives, including the successful
launch of our hybrid U.S. LTL IT platform, the standardization of the U.S. LTL
wage and benefit structure, and the recent openings of new cross-dock and
retail supply chain facilities, located in Toronto.
"I am also pleased to report that Vitran's overlap terminal integration
was successfully completed one week ahead of schedule, on October 12, 2008.
With the massive, multi-phase integration project now behind us, we are in a
more favorable position to deal with the challenges of a slowing North
American economy," concluded Mr. Gaetz.
Segmented Results
Income from operations at Vitran's LTL (less-than-truckload) segment
during the 2008 third quarter was $3.0 million. LTL segment revenue grew
10.6 percent to $166.2 million, and the LTL OR (operating ratio) was 98.2 for
the three-month period, versus an OR of 96.2 in the prior year quarter. LTL
revenue per shipment rose 11.2 percent and revenue per hundredweight increased
by 8.5 percent during Q3. Tonnage rose 2.3 percent, while the number of
shipments declined by 0.2 percent.
Vitran's Logistics segment revenue increased 70.7 percent to $23.4
million and income from operations rose 81.4 percent in the 2008 third quarter
to a record $1.5 million. The segment's OR improved to 93.8 in the 2008 third
quarter, versus 94.2 in the year-earlier quarter. These record results were
achieved despite continued weakness in the North American retail sector. The
Truckload segment achieved income from operations in the quarter of $308,000,
compared to $420,000 in 2007, and the OR was 96.6 in the quarter, versus a
94.7 OR in the prior year quarter.
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.
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Vitran Corporation Inc.
Consolidated Balance Sheets
(in thousands of United States dollars, US GAAP)
Sept. 30, Dec. 31,
2008 2007
(unaudited) (audited)
Assets
Current assets:
Accounts receivable $ 93,250 $ 74,261
Inventory, deposits and prepaid expenses 11,155 11,325
Income and other taxes recoverable 1,837 2,232
Deferred income taxes 3,097 2,599
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109,339 90,417
Property and equipment 162,068 169,062
Intangible assets 13,910 13,645
Goodwill 121,537 124,375
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$ 406,854 $ 397,499
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Liabilities and Shareholders' Equity
Current liabilities:
Bank overdraft $ 690 $ 390
Accounts payable and accrued liabilities 76,117 67,468
Current portion of long-term debt 15,393 18,144
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92,200 86,002
Long-term debt 107,578 109,831
Other 3,438 3,512
Deferred income taxes 7,431 7,810
Shareholders' equity:
Common shares 77,500 77,246
Additional paid-in capital 3,284 2,436
Retained earnings 112,255 104,478
Accumulated other comprehensive income 3,168 6,184
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196,207 190,344
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$ 406,854 $ 397,499
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(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 Nine Months
Ended Sept. 30, Ended Sept. 30,
2008 2007 2008 2007
---- ---- ---- ----
Revenues $ 198,605 $ 171,927 $ 572,102 $ 496,207
Operating expenses 173,414 145,457 491,615 414,693
Selling, general and
administrative expenses 16,162 15,633 50,852 46,015
Other income (155) (53) (288) (125)
Depreciation and
amortization expense 5,203 5,321 15,968 15,375
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194,624 166,358 558,147 475,958
Income from operations
before undernoted 3,981 5,569 13,955 20,249
Interest expense, net 2,158 2,325 6,410 6,504
Income from operations
before income taxes 1,823 3,244 7,545 13,745
Income taxes (243) 123 (232) 1,704
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Net income $ 2,066 $ 3,121 $ 7,777 $ 12,041
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Basic income per share -
Net income $ 0.15 $ 0.23 $ 0.58 $ 0.89
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Diluted income per share -
Net income $ 0.15 $ 0.23 $ 0.57 $ 0.88
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Weighted average number
of shares
Basic 13,493,757 13,475,685 13,480,805 13,459,180
----------- ----------- ----------- -----------
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Diluted 13,647,774 13,668,819 13,632,628 13,660,723
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(Statements of Cash Flows follows)
VITRAN CORPORATION INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands of United States dollars, US GAAP)
Three Three Nine Nine
months months months months
Ended Ended Ended Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2008 2007 2008 2007
Cash provided by (used in):
Operations:
Net income $ 2,066 $ 3,121 $ 7,777 $ 12,041
Items not involving
cash from operations
Depreciation and
amortization expense 5,203 5,321 15,968 15,375
Deferred income taxes (21) (2,608) 83 (13)
Share-based
compensation expense 279 261 848 720
Gain on sale of
property and equipment (155) (53) (288) (125)
Change in non-cash
working capital
components 679 4,461 (9,853) (1,302)
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8,051 10,503 14,535 26,696
Investments:
Purchase of property and
equipment (1,692) (5,458) (10,840) (16,878)
Proceeds on sale of
property and equipment 935 74 1,387 312
Additional payment due to
acquisition of subsidiary - - - (6,921)
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(757) (5,384) (9,453) (23,487)
Financing:
Revolving credit facility
and bank overdraft (2,987) 3,468 8,341 13,590
Repayment of long-term debt (2,580) (2,255) (7,726) (6,765)
Financing costs - (642) - (642)
Repayment of capital leases (2,078) (1,858) (6,320) (5,172)
Issue of common shares upon
exercise of stock options 76 196 254 403
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(7,569) (1,091) (5,451) 1,414
Effect of translation
adjustment on cash 275 (1,256) 369 (2,258)
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Increase in cash position - 2,772 - 2,365
Cash and cash equivalent
position, beginning of
period - 1,047 - 1,454
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Cash and cash equivalent
position, end of period $ - $ 3,819 $ - $ 3,819
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Change in non-cash
working capital
components:
Accounts receivable $ 587 $ (2,004) $ (18,989) $ (15,368)
Inventory, deposits and
prepaid expenses 1,083 233 170 1,316
Income and other taxes
receivable/payable (651) 3,166 317 (732)
Accounts payable and
accrued liabilities (340) 3,066 8,649 13,482
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$ 679 $ 4,461 $ (9,853) $ (1,302)
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Supplemental cash flow
information
Capital lease additions $ 1,016 $ 4,561 $ 1,016 $ 8,301
(additional financial information follows)
Supplementary Segmented Financial Information
(in thousands of United States dollars) (Unaudited)
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For the For the
quarter ended quarter ended
Sept. 30, 2008 Sept. 30, 2007
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Inc. from Inc. from
Revenue Operations OR% Revenue Operations OR%
----------------------------------- -----------------------------------
LTL 166,227 3,043 98.2 LTL 150,283 5,687 96.2
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LOG 23,375 1,451 93.8 LOG 13,690 800 94.2
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TL 9,003 308 96.6 TL 7,954 420 94.7
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For the nine For the nine
months ended months ended
Sept. 30, 2008 Sept. 30, 2007
----------------------------------- -----------------------------------
Inc. from Inc. from
Revenue Operations OR% Revenue Operations OR%
----------------------------------- -----------------------------------
LTL 483,803 13,721 97.2 LTL 437,055 20,920 95.2
----------------------------------- -----------------------------------
LOG 62,449 3,002 95.2 LOG 34,579 1,976 94.3
----------------------------------- -----------------------------------
TL 25,850 1,008 96.1 TL 24,573 1,119 95.4
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LTL SEGMENT - Statistical Information
(Unaudited)
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For the quarter ended
September 30, 2008
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LTL Q. over Q.
($U.S.) Division % Change(x)
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Revenue (000's) $ 166,227 10.6
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No. of Shipments 1,029,978 (0.2)
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Weight (000's lbs) 1,564,394 2.3
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Revenue per shipment $ 161.39 11.2
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Revenue per CWT $ 10.63 8.5
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Year-to-date
September 30, 2008
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LTL Q. over Q.
($U.S.) Division % Change(x)
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Revenue (000's) $ 483,803 10.7
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No. of Shipments 3,045,489 (0.8)
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Weight (000's lbs) 4,642,321 1.9
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Revenue per shipment $ 158.86 9.4
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Revenue per CWT $ 10.42 6.4
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(x) All % changes have been normalized for the impact of foreign exchange
fluctuation, period over period
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%SEDAR: 00004231E %CIK: 0000946823
/For further information: Richard Gaetz, President/CEO, Sean Washchuk, VP
Finance/CFO, Vitran Corporation Inc., (416) 596-7664; Robert Rinderman,
Norberto Aja, Jaffoni & Collins Incorporated, (212) 835-8500 or VTNC(at)jcir.com/
(VTNC VTN.)
CO: Vitran Corporation Inc.
CNW 06:36e 22-OCT-08
