Exhibit 99.1
News release via Canada NewsWire, Toronto 416-863-9350
Attention Business/Financial Editors:
Vitran reports 2009 second quarter results
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REMINDER:
Vitran management will conduct a conference call and webcast today:
July 23, at 9:00 a.m. ET, to discuss the Company's 2009 second quarter
results
Conference call dial-in: 1-800-731-6941 or 416-644-3417 (International)
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 2009 and the six-month period
ended June 30, 2009 (all figures reported in $U.S.).
Vitran reported net income of $0.4 million, or $0.03 per diluted share,
on revenues of $158.7 million for the quarter ended June 30, 2009. In the
comparable 2008 three-month period, the Company achieved net income of $4.6
million, or $0.34 per diluted share on revenue of $196.0 million. The
fluctuation in fuel surcharge and foreign exchange on Vitran's Canadian
operations accounted for $26.4 million of the revenue decline for the second
quarter of 2009 compared to the second quarter of 2008. Therefore consolidated
revenue declined 5.6% adjusting for the change in fuel surcharge and foreign
exchange rates on Canadian dollar denominated revenue.
"We are pleased with our second sequential quarter of financial
improvements given the general economy and the current transportation pricing
environment in North America which remain extremely challenging. On a
consolidated basis the Company returned to profitability, led by a positive
contribution from our LTL segment and very rewarding results from our supply
chain business," stated Vitran President and Chief Executive Officer Rick
Gaetz.
"We continue to make the Company stronger by executing our single entity
operating plan in the United States. Our primary challenge is to ensure that
our sequential quarterly shipment and tonnage improvements more than offset
the weakness in the pricing environment.
"Our Logistics business performed very well in the quarter, in fact,
equaled its all-time best profitability despite continued downward pressures
on the North American retail economy. I look forward to continued commercial
success in our supply chain business."
Segmented Results
The LTL (less-than-truckload) segment posted income from operations for
the 2009 second quarter of $1.2 million, with an OR (operating ratio) of 99.1%
compared to income from operations of $8.5 million and an OR of 94.9% in the
comparable period a year ago. In the comparable second quarters, shipments and
tonnage declined 7.9% and 12.6% respectively in the LTL segment. On sequential
quarterly basis our daily shipment count and daily tonnage measures improved
9.3% and 6.1% respectively in the second quarter of 2009 compared to the first
quarter of 2009.
Vitran Logistics posted income from operation of $1.4 million and an OR
of 92.3% in the second quarter of 2009 compared to income from operations of
$0.8 million and OR of 95.7% in the second quarter of 2008. The Truckload
segment achieved income from operations during the three-month period ended
June 30, 2009 of $256,000, compared to $321,000 in 2008, and the TL OR was
97.0%, compared to an OR of 96.2% in the prior year second 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.
<<
(tables follow)
Vitran Corporation Inc.
Consolidated Balance Sheets
(in thousands of United States dollars, US GAAP)
June 30, 2009 Dec. 31, 2008
(unaudited) (audited)
Assets
Current assets:
Accounts receivable $ 72,230 $ 65,741
Inventory, deposits and prepaid expenses 12,881 12,063
Income and other taxes receivable 1,992 792
Deferred income taxes 2,175 1,877
------------ ------------
89,278 80,473
Property and equipment 148,729 152,602
Intangible assets 12,017 13,279
Goodwill 17,302 17,057
Deferred income taxes 32,365 30,181
------------ ------------
$ 299,691 $ 293,592
------------ ------------
------------ ------------
Liabilities and Shareholders' Equity
Current liabilities:
Bank overdraft $ 4,798 $ 3,912
Accounts payable and accrued
liabilities 64,626 63,495
Current portion of long-term debt 18,075 16,925
------------ ------------
87,499 84,332
Long-term debt 96,838 93,477
Other 3,732 4,540
Shareholders' equity:
Common shares 77,500 77,500
Additional paid-in capital 3,965 3,525
Retained earnings 31,337 33,253
Accumulated other comprehensive loss (1,180) (3,035)
------------ ------------
111,622 111,243
------------ ------------
$ 299,691 $ 293,592
------------ ------------
------------ ------------
(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,
2009 2008 2009 2008
---- ---- ---- ----
Revenue $ 158,682 $ 195,990 $ 298,317 $ 373,497
Operating expenses 151,698 182,737 289,160 352,758
Depreciation and
amortization expense 4,947 5,205 9,974 10,765
---------- ---------- ---------- ----------
156,645 187,942 299,134 363,523
Income (loss) from
operations before
undernoted 2,037 8,048 (817) 9,974
Interest expense, net 2,514 2,122 4,710 4,252
Income (loss) from
operations before
income taxes (477) 5,926 (5,527) 5,722
Income (recovery) taxes (917) 1,349 (3,611) 11
---------- ---------- ---------- ----------
Net income (loss) $ 440 $ 4,577 $ (1,916) $ 5,711
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Basic and Diluted income
(loss) per share -
Net income (loss) $ 0.03 $ 0.34 $ (0.14) $ 0.42
Weighted average number
of shares:
Basic 13,498,159 13,483,159 13,498,159 13,474,258
Diluted 13,592,162 13,630,974 13,498,159 13,621,759
(Statements of Cash Flows follows)
Vitran Corporation Inc.
Consolidated Statements Of Cash Flows
(Unaudited)
(in thousands of United States dollars, US GAAP)
Three months Six months
ended June 30, ended June 30,
2009 2008 2009 2008
---- ---- ---- ----
Cash provided by (used in):
Operations:
Net income (loss) $ 440 $ 4,577 $ (1,916) $ 5,711
Items not involving
cash from operations:
Depreciation and
amortization expense 4,947 5,205 9,974 10,765
Deferred income taxes (966) 1,302 (3,286) 104
Share-based
compensation expense 206 292 440 569
Gain on sale of
property and equipment (8) (134) (437) (133)
Change in non-cash working
capital components (6,817) (9,419) (7,313) (10,532)
---------- ---------- ---------- ----------
(2,198) 1,823 (2,538) 6,484
Investments:
Purchase of property
and equipment (1,822) (2,040) (3,449) (9,148)
Proceeds on sale of
property and equipment 98 261 1,145 452
---------- ---------- ---------- ----------
(1,724) (1,779) (2,304) (8,696)
Financing:
Revolving credit facility
and bank overdraft 8,453 4,703 13,079 11,328
Repayment of long-term
debt (2,268) (2,575) (4,536) (5,146)
Repayment of capital
leases (1,392) (2,001) (3,212) (4,242)
Issue of Common Shares
upon exercise of stock
options - - - 178
---------- ---------- ---------- ----------
4,793 127 5,331 2,118
Effect of translation
adjustment on cash (871) (171) (489) 94
---------- ---------- ---------- ----------
Increase in cash and cash
equivalents - - - -
Cash and cash equivalent
position, beginning
of period - - - -
---------- ---------- ---------- ----------
Cash and cash equivalent
position, end of period $ - $ - $ - $ -
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Change in non-cash working
capital components:
Accounts receivable $ (6,422) $ (11,905) $ (6,489) $ (19,576)
Inventory, deposits
and prepaid expenses (1,130) (512) (818) (913)
Income and other taxes
recoverable/payable (414) (163) (1,137) 968
Accounts payable and
accrued liabilities 1,149 3,161 1,131 8,989
---------- ---------- ---------- ----------
$ (6,817) $ (9,419) $ (7,313) $ (10,532)
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
(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, 2009 June 30, 2008
----------------------------------- ------------------------------------
Inc. from Inc. from
Revenue Operations OR% Revenue Operations OR%
----------------------------------- ------------------------------------
LTL $ 131,667 $ 1,157 99.1 LTL $ 168,161 $ 8,541 94.9
----------------------------------- ------------------------------------
LOG $ 18,569 $ 1,433 92.3 LOG $ 19,314 $ 831 95.7
----------------------------------- ------------------------------------
TL $ 8,446 $ 256 97.0 TL $ 8,515 $ 321 96.2
----------------------------------- ------------------------------------
----------------------------------- ------------------------------------
For the six For the six
months ended months ended
June 30, 2009 June 30, 2008
----------------------------------- ------------------------------------
Inc. from Inc. from
Revenue Operations OR% Revenue Operations OR%
----------------------------------- ------------------------------------
LTL $ 247,030 $ (1,527) 100.6 LTL $ 317,576 $ 10,678 96.6
----------------------------------- ------------------------------------
LOG $ 34,831 $ 1,854 94.7 LOG $ 39,074 $ 1,551 96.0
----------------------------------- ------------------------------------
TL $ 16,456 $ 448 97.3 TL $ 16,847 $ 700 95.8
----------------------------------- ------------------------------------
LTL SEGMENT - Statistical Information
(Unaudited)
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For the quarter ended
June 30, 2009
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---------------------------------------------------
LTL Q. over Q.
($U.S.) Division % Change
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Revenue (000's) $ 131,667 (x) (18.7%)
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No. of Shipments 955,708 (7.9%)
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Weight (000's lbs) 1,387,349 (12.6%)
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Revenue per shipment $ 137.77 (x) (11.8%)
---------------------------------------------------
Revenue per CWT $ 9.49 (x) (7.0%)
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For the six-months ended
June 30, 2009
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LTL Q. over Q.
($U.S.) Division % Change
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Revenue (000's) $ 247,030 (x) (18.2%)
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No. of Shipments 1,809,376 (10.2%)
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Weight (000's lbs) 2,664,016 (13.4%)
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Revenue per shipment $ 136.53 (x) (8.9%)
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Revenue per CWT $ 9.27 (x) (5.5%)
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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 23-JUL-09
