Exhibit 99.1
News release via Canada NewsWire, Toronto 416-863-9350 Attention Business/Financial Editors: Vitran reports 2008 year-end and fourth quarter operating results << ------------------------------------------------------------------------- REMINDER: Vitran management will conduct a conference call and webcast today, February 10, 2009 at 11:00 a.m. (ET), to discuss the Company's 2008 fourth quarter results. Conference call dial-in: 800/732-9307 or 416/644-3415 (international) Live Webcast: www.vitran.com (select "Investor Relations") ------------------------------------------------------------------------- >> TORONTO, Feb. 10 /CNW/ - Vitran Corporation Inc. (NASDAQ: VTNC, TSX: VTN), a North American transportation and logistics firm, today announced year-end and quarterly financial results for the twelve and three-month periods ended December 31, 2008 (all figures reported in $U.S.). For the year ended December 31, 2008, Vitran achieved 8.3 percent revenue growth to $726.3 million, including a 4.5 percent increase in LTL (Less Than Truckload) and a 53.3 percent rise in Logistics revenue. Net income for 2008 was $4.6 million, or $0.34 per diluted share. As announced in December of 2008, Vitran incurred a one-time noncash, $0.9 million write-off of previously capitalized syndication costs related to the bank amendment in the fourth quarter. The write-off impacted Vitran's FY EPS by $0.05. In the comparable twelve months of 2007, the Company reported net income of $13.7 million, or $1.00 per diluted share, on revenue of $670.5 million. In the 2008 fourth quarter, Vitran reported revenue of $154.2 million, 11.5 percent below the $174.3 million achieved in the year-ago period. During the three months, the Company incurred a net loss of $3.2 million, or $0.23 per diluted share, including the impact of the aforementioned write-off of previously capitalized syndication costs. In the comparable 2007 three-month period, Vitran recorded net income of $1.7 million, or $0.12 per diluted share. "Although we are disappointed with the financial results, the fourth quarter of 2008 marked another period of significant achievements for Vitran in the face of an unmistakable retraction in the entire North American economy and transportation industry. We are very pleased to have completed the final steps of our U.S. LTL operating integration with the amalgamation of redundant workforces and facilities in the overlap legacy PJAX and Vitran Express operating regions," stated Vitran President and Chief Executive Officer Rick Gaetz. "With this physical integration behind us we have taken the necessary steps to abate the economic downturn and position Vitran to weather the current economic storm. We have improved our linehaul infrastructure, which has led to a reduction in miles and improvement in service, downsized our labour force and listed redundant facilities for sale. Moreover, we have commenced an aggressive integrated inter-regional sales program; and, in the existing environment, management continues to be focused on cost reduction." "Lastly, our Logistics segment turned in a rewarding fourth quarter and fiscal year for 2008. LVLA, our December 2007 Logistics acquisition, performed on plan, and we remain optimistic about its long-term possibilities. That being said, I am pleased to announce the Logistics segment has added a new dedicated distribution facility for an existing client in California. The facility commenced operations on February 1, 2009 and will contribute to our results in the year," Mr. Gaetz concluded. Segmented Results Income from operations at Vitran's LTL (less-than-truckload) segment during the 2008 fourth quarter was negative $4.7 million, with an OR (operating ratio) of 103.7 compared to Q4 '07 operating income of $2.2 million and a 98.5 OR. Shipments declined 8.7 percent in the LTL segment and tonnage fell 6.9 percent during the period. Revenue per shipment rose 0.9 percent and revenue per hundred-weight decreased 1.1 percent. Vitran Logistics posted an increase in revenue of 1.7 percent to $18.6 million, a 5.9 percent rise in income from operations to $1.4 million and a 92.6 OR. The Truckload segment had a modest increase in revenue of 2.6 percent and posted a 96.5 OR. Financial Accounting As at the date of this release, due to the deteriorating macro-economic environment, declines in the stock market and in the Company's common stock, the Company has experienced a significant decline in its market capitalization. As a result, management is still in the process of updating and reassessing their goodwill valuation testing from September 30, 2008. Upcoming Investor Conference CEO Rick Gaetz and CFO Sean Washchuk will address BB&T Capital Markets' 24th Annual Transportation Conference, which takes place at the Biltmore Hotel in Coral Gables, FL on February 11th. The presentation, at 11:45 a.m. ET, will be webcast live and subsequently archived at the 'Investor Relations' section of www.vitran.com. 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." Additional information regarding non-GAAP measures is also included on Form 10K. 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. << (financial statements follow) Vitran Corporation Inc. Consolidated Balance Sheets (in thousands of United States dollars, US GAAP) Dec. 31, Dec. 31, 2008 2007 Assets Current assets: Accounts receivable 65,741 74,261 Inventory, deposits and prepaid expenses 12,063 11,325 Income and other taxes recoverable 792 2,232 Deferred income taxes 1,877 2,599 ---------- ---------- 80,473 90,417 Property and equipment 152,602 169,062 Intangible assets 13,279 13,645 Goodwill 124,408 124,375 ---------- ---------- $ 370,762 $ 397,499 ---------- ---------- ---------- ---------- Liabilities and Shareholders' Equity Current liabilities: Bank overdraft $ 3,912 $ 390 Accounts payable and accrued liabilities 63,495 67,468 Current portion of long-term debt 16,925 18,144 ---------- ---------- 84,332 86,002 Long-term debt 93,477 109,831 Other 4,540 3,512 Deferred income taxes 1,326 7,810 Shareholders' equity: Common shares 77,500 77,246 Additional paid-in capital 3,525 2,436 Retained earnings 109,097 104,478 Accumulated other comprehensive income (3,035) 6,184 ---------- ---------- 187,087 190,344 ---------- ---------- $ 370,762 $ 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 Twelve Months Ended Dec. 31, Ended Dec. 31, 2008 2007 2008 2007 ---- ---- ---- ---- Revenues $ 154,235 $ 174,310 $ 726,337 $ 670,517 Operating expenses 138,268 150,401 629,883 565,094 Selling, general and administrative expenses 14,885 16,071 65,737 62,086 Other income (38) (307) (326) (432) Depreciation and amortization expense 5,056 5,395 21,024 20,770 ----------- ----------- ----------- ----------- 158,171 171,560 716,318 647,518 Income (loss) from operations before undernoted (3,936) 2,750 10,019 22,999 Interest expense, net 2,813 1,922 9,223 8,426 Income (loss) from operations before income taxes (6,749) 828 796 14,573 Income taxes (recovery) (3,591) (841) (3,823) 863 ----------- ----------- ----------- ----------- Net income (loss) $ (3,158) $ 1,669 $ 4,619 $ 13,710 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Basic income (loss) per share - Net income (loss) $ (0.23) $ 0.12 $ 0.34 $ 1.02 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Diluted income (loss) per share - Net income (loss) $ (0.23) $ 0.12 $ 0.34 $ 1.00 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Weighted average shares outstanding Basic 13,498,159 13,457,619 13,485,132 13,458,786 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Diluted 13,604,578 13,621,272 13,626,269 13,651,799 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (Statements of Cash Flows follow) VITRAN CORPORATION INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands of United States dollars, US GAAP) Three Three Twelve Twelve months months months months Ended Ended Ended Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2008 2007 2008 2007 Cash provided by (used in): Operations: Net income (loss) $ (3,158) $ 1,669 $ 4,619 $ 13,710 Items not involving cash from operations: Depreciation and amortization expense 5,056 5,395 21,024 20,770 Deferred income taxes (4,015) (762) (3,932) (775) Share-based compensation expense 241 277 1,089 997 Gain on sale of property and equipment (38) (307) (326) (432) Change in non-cash working capital components 15,625 28 5,772 (1,274) ----------- ----------- ----------- ----------- 13,711 6,300 28,246 32,996 Investments: Purchase of property and equipment (1,497) (5,992) (12,337) (22,870) Proceeds on sale of property and equipment 185 619 1,572 931 Additional payment due to acquisition of subsidiary (3,250) (1,980) (3,250) (8,901) Acquisition of subsidiary, net - (5,990) - (5,990) ----------- ----------- ----------- ----------- (4,562) (13,343) (14,015) (36,830) Financing: Revolving credit facility and bank overdraft (5,278) 9,203 3,063 22,793 Repayment of long-term debt (2,488) (2,359) (10,214) (9,124) Financing costs (1,007) (275) (1,007) (917) Repayment of capital leases (1,582) (2,670) (7,902) (7,842) Issue of common shares upon exercise of stock options - - 254 403 Repurchase of common shares - (403) - (403) ----------- ----------- ----------- ----------- (10,355) 3,496 (15,806) 4,910 Effect of translation adjustment on cash 1,206 (272) 1,575 (2,530) ----------- ----------- ----------- ----------- Increase (decrease) in cash position - (3,819) - (1,454) Cash position, beginning of period - 3,819 - 1,454 ----------- ----------- ----------- ----------- Cash position, end of period $ - $ - $ - $ - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Change in non-cash working capital components: Accounts receivable $ 27,509 $ 10,114 $ 8,520 $ (5,254) Inventory, deposits and prepaid expenses 99 (341) 269 975 Income and other taxes recoverable/payable 639 (1,425) 956 (2,157) Accounts payable and accrued liabilities (12,622) (8,320) (3,973) 5,162 ----------- ----------- ----------- ----------- $ 15,625 $ 28 $ 5,772 $ (1,274) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Supplemental cash flow ---------------------- information ----------- Capital lease additions $ - $ 2,055 $ 1,016 $ 10,356 (additional financial information follows) Supplementary Segmented Financial Information (000's of $U.S.) (Unaudited) ------------------------------------ ----------------------------------- For the quarter For the quarter ended Dec. 31, 2008 ended Dec. 31, 2007 ------------------------------------ ----------------------------------- Inc. from Inc. from Revenue Operations OR% Revenue Operations OR% ------------------------------------ ----------------------------------- LTL 127,130 (4,741) 103.7 LTL 147,731 2,233 98.5 ------------------------------------ ----------------------------------- LOG 18,581 1,371 92.6 LOG 18,267 1,295 92.9 ------------------------------------ ----------------------------------- TL 8,524 299 96.5 TL 8,312 559 93.3 ------------------------------------ ----------------------------------- ------------------------------------ ----------------------------------- For the twelve months For the twelve months ended Dec. 31, 2008 ended Dec. 31, 2007 ------------------------------------ ----------------------------------- Inc. from Inc. from Revenue Operations OR% Revenue Operations OR% ------------------------------------ ----------------------------------- LTL 610,933 8,980 98.5 LTL 584,786 23,153 96.0 ------------------------------------ ----------------------------------- LOG 81,030 4,373 94.6 LOG 52,845 3,271 93.8 ------------------------------------ ----------------------------------- TL 34,374 1,307 96.2 TL 32,886 1,678 94.9 ------------------------------------ ----------------------------------- LTL SEGMENT - Statistical Information (Unaudited) For the quarter ended December 31, 2008 -------------------------------------------------- LTL Q. over Q. ($U.S.) Division % Change(x) -------------------------------------------------- Revenue (000's) $ 127,130 (13.9) -------------------------------------------------- No. of Shipments 884,560 (8.7) -------------------------------------------------- Weight (000's lbs) 1,336,949 (6.9) -------------------------------------------------- Revenue per shipment $ 143.72 0.9 -------------------------------------------------- Revenue per CWT $ 9.51 (1.1) -------------------------------------------------- Year-to-date December 31, 2008 -------------------------------------------------- LTL Yr.-to-date. ($U.S.) Division % Change(x) -------------------------------------------------- Revenue (000's) $ 610,933 4.5 -------------------------------------------------- No. of Shipments 3,930,049 (2.7) -------------------------------------------------- Weight (000's lbs) 5,979,270 (0.2) -------------------------------------------------- Revenue per shipment $ 155.45 7.5 -------------------------------------------------- Revenue per CWT $ 10.22 4.7 -------------------------------------------------- (x) All % changes have been normalized for the impact of foreign exchange fluctuation, period over period >> %SEDAR: 00004231E %CIK: 0000946823 /For further information: Richard Gaetz, President/CEO, Sean Washchuk, VP Finance/CFO, Vitran Corporation Inc., (416) 596-7664/ (VTNC VTN.) CO: Vitran Corporation Inc. CNW 06:00e 10-FEB-09