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
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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")
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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
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80,473 90,417
Property and equipment 152,602 169,062
Intangible assets 13,279 13,645
Goodwill 124,408 124,375
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$ 370,762 $ 397,499
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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
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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
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187,087 190,344
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$ 370,762 $ 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 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
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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
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----------- ----------- ----------- -----------
Basic income (loss)
per share -
Net income (loss) $ (0.23) $ 0.12 $ 0.34 $ 1.02
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Diluted income (loss)
per share -
Net income (loss) $ (0.23) $ 0.12 $ 0.34 $ 1.00
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Weighted average
shares outstanding
Basic 13,498,159 13,457,619 13,485,132 13,458,786
----------- ----------- ----------- -----------
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Diluted 13,604,578 13,621,272 13,626,269 13,651,799
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(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)
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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)
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(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)
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(10,355) 3,496 (15,806) 4,910
Effect of translation
adjustment on cash 1,206 (272) 1,575 (2,530)
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Increase (decrease) in
cash position - (3,819) - (1,454)
Cash position, beginning
of period - 3,819 - 1,454
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Cash position, end of
period $ - $ - $ - $ -
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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
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$ 15,625 $ 28 $ 5,772 $ (1,274)
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Supplemental cash flow
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information
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Capital lease additions $ - $ 2,055 $ 1,016 $ 10,356
(additional financial information follows)
Supplementary Segmented Financial Information
(000's of $U.S.) (Unaudited)
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For the quarter For the quarter
ended Dec. 31, 2008 ended Dec. 31, 2007
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Inc. from Inc. from
Revenue Operations OR% Revenue Operations OR%
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LTL 127,130 (4,741) 103.7 LTL 147,731 2,233 98.5
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LOG 18,581 1,371 92.6 LOG 18,267 1,295 92.9
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TL 8,524 299 96.5 TL 8,312 559 93.3
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For the twelve months For the twelve months
ended Dec. 31, 2008 ended Dec. 31, 2007
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Inc. from Inc. from
Revenue Operations OR% Revenue Operations OR%
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LTL 610,933 8,980 98.5 LTL 584,786 23,153 96.0
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LOG 81,030 4,373 94.6 LOG 52,845 3,271 93.8
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TL 34,374 1,307 96.2 TL 32,886 1,678 94.9
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LTL SEGMENT - Statistical Information
(Unaudited)
For the quarter ended
December 31, 2008
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LTL Q. over Q.
($U.S.) Division % Change(x)
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Revenue (000's) $ 127,130 (13.9)
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No. of Shipments 884,560 (8.7)
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Weight (000's lbs) 1,336,949 (6.9)
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Revenue per shipment $ 143.72 0.9
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Revenue per CWT $ 9.51 (1.1)
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Year-to-date
December 31, 2008
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LTL Yr.-to-date.
($U.S.) Division % Change(x)
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Revenue (000's) $ 610,933 4.5
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No. of Shipments 3,930,049 (2.7)
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Weight (000's lbs) 5,979,270 (0.2)
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Revenue per shipment $ 155.45 7.5
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Revenue per CWT $ 10.22 4.7
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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/
(VTNC VTN.)
CO: Vitran Corporation Inc.
CNW 06:00e 10-FEB-09
