Trimac Announces 2011 First Quarter Results
Apr 27, 2011, 11:22 ET
- Revenue improved $7.5 million (11.4%) to $73.0 million
- Revenue excluding fuel surcharges increased 8.3% to $65.1 million
- EBITDA increased 3.8% to $6.2 million
- Market share growth in most commodities
- Converted from an income fund to a corporation
- Trimac purchased and cancelled 1.1 million Class A common shares
- Trimac wins two out of five safety performance awards from the Canadian Petroleum Products Institute
- Four professional drivers receive prestigious recognition in the trucking industry
CALGARY, April 27 /PRNewswire-FirstCall/ - Trimac Transportation Ltd. (TSX Symbol TMA) ("Trimac" or the "Company"), the leader in Canadian bulk trucking, is pleased to announce the release of the financial results for the first quarter ended March 31, 2011.
Trimac's consolidated revenue, including fuel surcharges, for the three-month period ended March 31, 2011 increased by $7.5 million (11.4%) as compared to the same period in the prior year. This increase was the result of increased volumes in most of the commodities hauled from new and existing customers, improved market share and an increase in fuel surcharge revenue of $2.5 million. Revenue excluding fuel surcharges improved by 8.3% to close the quarter at $65.1 million.
Compared to the first quarter in 2010, net cash flow generated from operating activities increased by $2.9 million and the net income before income tax and minority interest liability revaluation increased by $1.0 million. With fuel surcharge revenue reclassified as a cost recovery, direct expenses as a percent of revenue improved in the current quarter to 71.8% of revenue compared to 72.7% for the first quarter in 2010. This was primarily as a result of higher revenue volumes referred to above, improved pricing, improved utility, and improved productivity as a result of strong cost controls.
In commenting on the results for the quarter Edward V. Malysa, President & Chief Operating Officer of Trimac, said, "Our dedicated professional drivers and support team of mechanics, technicians and administrative staff continue to create value for our shareholders by delivering value to our customers safely. As a result of exceeding customers' expectations, Trimac continues to be rewarded with more hauling opportunities."
Safety Awards and Professional Driver Recognition
"For over 65 years, safety has been our core value," states Jeffrey J. McCaig, Chairman and Chief Executive Officer. An example of Trimac's commitment to safety includes the appointments to the Road Knight program for the Ontario Trucking Association and the Alberta Motor Association. "Being designated as a Road Knight is the ultimate compliment that a professional driver can achieve. Road Knights underwent a very demanding selection process, and in this role, they do excellent work promoting our industry to the public at large." Trimac is extremely proud of the following professional drivers:
- Ravinder Athwal, an owner operator for the past 7 years, presently working out of our Concord, Ontario chemical hauling terminal;
- Dan Santoro, a company driver with Trimac for 20 years who is currently hauling edible products in Port Colborne, Ontario;
- Dennis Hokanson, a company driver with 15 years experience, is based out of Edmonton, Alberta who is specialized in hauling chemical products; and
- Darwin Clark, an owner operator hauling petroleum products, based out of Edmonton, Alberta.
A further example of Trimac's outstanding safety performance includes the Canadian Petroleum Products Institute - National Distribution Committee announcement that Trimac won two out of a possible five awards for 2010. Trimac, on behalf of its professional drivers, is proud of this impressive accomplishment.
Financial Highlights
| Three months ended March 31 | ||||||||||||
| (in millions of dollars) | 2011 | 2010 | Variance | |||||||||
| Consolidated Financial Results | ||||||||||||
| Transportation revenue | 65.1 | 60.1 | 8.3% | |||||||||
| Operating expenses | ||||||||||||
| Direct expenses | 54.6 | 49.1 | 11.3% | |||||||||
| Fuel surcharges (1) | (7.9) | (5.4) | 46.3% | |||||||||
| 46.7 | 43.7 | 7.1% | ||||||||||
| Percent of revenue | 71.8% | 72.7% | ||||||||||
| Selling and administration | 12.2 | 10.4 | 16.3% | |||||||||
| EBITDA | 6.2 | 6.0 | 3.3% | |||||||||
| Percent of revenue | 9.6% | 10.0% | ||||||||||
| Segment Results | ||||||||||||
| Revenue before fuel surcharges | ||||||||||||
| Bulk Trucking | 58.6 | 54.1 | 8.3% | |||||||||
| Bulk Plus Logistics | 3.8 | 3.1 | 22.6% | |||||||||
| National Tank Services | 8.6 | 7.2 | 19.4% | |||||||||
| Inter-segment revenue | (5.9) | (4.3) | ||||||||||
| 65.1 | 60.1 | 8.3% | ||||||||||
| EBITDA | ||||||||||||
| Bulk Trucking | 4.8 | 4.9 | ||||||||||
| Bulk Plus Logistics | 0.5 | 0.6 | ||||||||||
| National Tank Services | 1.0 | 0.5 | ||||||||||
| Other | (0.1) | - | ||||||||||
| 6.2 | 6.0 | |||||||||||
| Other information | ||||||||||||
| Net cash generated from operations | 3.1 | 0.2 | ||||||||||
| Net capital expenditures | 5.3 | 1.4 | ||||||||||
| Repurchase of common shares | 5.5 | - | ||||||||||
| Acquisitions | - | 3.3 | ||||||||||
| (1) Management believes it is useful to net fuel surcharge revenue into direct expenses when analyzing operating results. For Trimac, fuel surcharge revenue is an expense recovery. |
||||||||||||
Financial Statements
At the time of issuing this press release, the unaudited interim consolidated financial statements and the Management Discussion and Analysis ("MD&A"), including a reconciliation of non-GAAP financial measures, can be found on the Company's website at www.trimac.ca.
Declaration of Quarterly Dividend
The Board of Directors today declared a dividend of $0.0625 per share on the Class A common shares, payable on July 15, 2011 to shareholders of record at the close of business on June 30, 2011. This dividend is designated as an eligible dividend pursuant to subsection 89(14) of the Income Tax Act (Canada) and any applicable provincial legislation pertaining to eligible dividends.
Significant Development - Repurchase of Shares
Management of Trimac believes that, from time to time, the market price of the shares may not fully reflect the underlying value of the shares and that at such times the purchase of shares would be accretive and in the best interests of Trimac. Such purchases will increase the proportionate interest of, and may be advantageous to, all remaining shareholders. In addition, the purchases by Trimac may increase liquidity to Trimac's shareholders wishing to sell their shares.
On March 22, 2011, Trimac announced that the Toronto Stock Exchange had accepted Trimac's Notice of Intention to make a normal course issuer bid to purchase for cancellation of up to 700,000 of its Class A common shares. Trimac purchased for cancellation 700,000 Class A common shares on March 28, 2011. A copy of Trimac's Notice of Intention can be obtained free of charge by shareholders of Trimac upon request.
On March 17, 2011, Trimac purchased and cancelled 400,000 Class A common shares from Maurice W. McCaig, a director of the Company, pursuant to an exemption from the issuer bid requirements contained in applicable Canadian securities laws. Mr. McCaig elected to sell some of his Class A common shares in connection with his retirement planning objectives.
Forward-Looking Statements
Certain information included in this news release constitutes "forward-looking statements". Trimac cautions that, by their nature, these forward-looking statements are based on suppositions, risks, and uncertainties as well as on management's best possible evaluation of future events. Trimac cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Such forward-looking statements are not guarantees of future performance and the actual results or performance of Trimac or the transportation industry may be materially different from the outlook or any future results or performance implied by such statements. Please see "Forward-Looking Statements" in the MD&A of Trimac Income Fund and Trimac Transportation Services Limited Partnership for the year ended December 31, 2010 for a discussion on the material factors that could cause actual results to differ from the forward-looking information contained herein and the material factors and assumptions that were applied in preparing such forward-looking information.
Profile
Trimac is Canada's largest provider of bulk trucking services with operations from coast to coast. In addition, through its National Tank Services division, Trimac performs repairs, maintenance and tank-trailer cleaning services for both the Trimac fleet and for third party commercial customers. Trimac also provides third party transportation logistics services in Canada and the United States through its wholly owned subsidiary Bulk Plus Logistics. Shares of Trimac Transportation Ltd. are traded on the Toronto Stock Exchange under the symbol TMA.
For more detailed information, please visit our website at www.trimac.ca or SEDAR at www.sedar.com and review our MD&A and financial statements for the Company.
You are invited to join us on a conference call (conference ID 8590626) at 3:30 p.m. Eastern Time on Wednesday, April 27, 2011. For North American participants, please dial 1-800-820-0231 or for international participants, please dial ++1-416-640-5926 at least 10 minutes prior to the start time of the call. An audio playback of the call will be available starting Thursday, April 28, 2011 on our website at http://www.trimac.ca/page/eventscalendar.
SOURCE Trimac Transportation Ltd.