Trimac Announces Fourth Quarter and Annual Results for 2011
- Revenue for the quarter improved $11.6 million (15.4%) to $87.0 million
- Revenue for the quarter excluding fuel surcharges increased 9.3% to $75.3 million
- EBITDA for the quarter increased 12.6%
- Cash generated from operations per share increased from $0.33/share to $0.42/share
- Awarded the 2012 Best Fleets to Drive For by the Truck Carriers Association for North America
CALGARY, Feb. 29, 2012 /PRNewswire/ - Trimac Transportation Ltd. (TSX Symbol TMA) ("Trimac" or the "Company"), Canada's leader in bulk trucking, is pleased to announce the release of its financial results for the fourth quarter ended December 31, 2011 ("current quarter").
Trimac's consolidated revenue, including fuel surcharges, for the three-month period ended December 31, 2011 increased by $11.6 million (or 15.4%) as compared to the same period in the prior year ("comparative quarter"). This increase was the result of increased revenue volumes from existing customers, new business awards and an increase in fuel surcharge revenue of $5.3 million. Revenue excluding fuel surcharges improved by 9.3% to close the current quarter at $75.3 million. Increased revenue volumes were experienced in cement hauling which was the result of the longer fall season and increased activity in the oil and gas sector lead to increased volumes in various commodities. For the year ended December 31, 2011 ("current year") total revenue increased 13.7% to $332.1 million as compared to the $292.2 million reported at December 31, 2010 ("prior year"). The Benson asset acquisition late in the second quarter contributed $3.4 million in incremental revenue for the current year.
Direct costs net of fuel surcharge revenue (net direct costs) expressed as a percentage of revenue before fuel surcharges, decreased in the current quarter to 70.5% from 71.8% in the comparative quarter. Improved productivity due to warmer weather and fully-trained new drivers and increased utility contributed to this decrease. Net direct costs in actual dollar amounts increased $3.6 million over the comparative quarter. This increase was primarily the result of the increased revenue volumes.
EBITDA closed the current quarter at $10.7 million compared to $9.5 million in the comparative quarter, an increase of 12.6%. Taking into consideration public company costs incurred by Trimac Income Fund of $0.3 million that were not included in the comparative quarter, EBITDA actually increased 16.3%. This increase was the result of the increased revenue volumes and improved productivity and utility and strong cost controls. For the current year EBITDA increased 4.6% to $36.5 million. If public company costs of $0.9 million are taken into consideration for the prior year, EBITDA increased 7.3%.
"The first half of 2011 was challenging due to the wet weather and the decreased activity in various sectors in the Eastern provinces, however, we were able to overcome these challenges and finish the year off with a 4.6% increase to our EBITDA, so I am very pleased with the results," commented Edward V. Malysa, President and Chief Operating Officer of Trimac.
2012 Best Fleets to Drive For
Due to our ongoing commitment to our recruitment and retention program, Trimac has for the second year in a row been honoured with the 2012 Best Fleets to Drive For award by the Truck Carriers Association, a U.S. industry organization. Jeffrey J. McCaig commented, "This award was due to the hard work and dedication of the whole Trimac team by making Trimac the preferred place to work. As we enter into 2012, we will continue to focus on our recruitment and retention program to ensure we are hiring the "best of the best" to be a part of the Trimac team."
Financial Highlights
| Three months ended December 31 | Year ended December 31 | |||||||||||||||||||
| (in millions of dollars except per share data) | 2011 | 2010 | Variance | 2011 | 2010 | Variance | ||||||||||||||
| Consolidated Financial Results | ||||||||||||||||||||
| Revenue before fuel surcharges | 75.3 | 68.9 | 9.3% | 291.5 | 268.6 | 8.5% | ||||||||||||||
| Operating expenses | ||||||||||||||||||||
| Direct costs | 64.8 | 55.9 | 15.9% | 249.5 | 216.3 | 15.3% | ||||||||||||||
| Fuel surcharges (1) | (11.7) | (6.4) | -82.8% | (40.6) | (23.6) | -72.0% | ||||||||||||||
| 53.1 | 49.5 | 7.3% | 208.9 | 192.7 | 8.4% | |||||||||||||||
| Percent of revenue | 70.5% | 71.8% | 71.7% | 71.7% | ||||||||||||||||
| Selling and administration | 11.5 | 9.9 | 16.2% | 46.1 | 41.0 | 12.4% | ||||||||||||||
| EBITDA (2) | 10.7 | 9.5 | 12.6% | 36.5 | 34.9 | 4.6% | ||||||||||||||
| Percent of revenue | 14.2% | 13.8% | 12.5% | 13.0% | ||||||||||||||||
| Operating earnings | 5.6 | 5.2 | 7.7% | 18.1 | 17.7 | 2.3% | ||||||||||||||
| Adjusted net income (2) | 4.3 | 4.3 | 0.0% | 11.1 | 11.6 | -4.3% | ||||||||||||||
| Segment Results | ||||||||||||||||||||
| Revenue before fuel surcharges | ||||||||||||||||||||
| Bulk Trucking | 66.6 | 61.9 | 7.6% | 258.2 | 241.2 | 7.0% | ||||||||||||||
| Bulk Plus Logistics | 4.7 | 3.8 | 23.7% | 18.9 | 15.3 | 23.5% | ||||||||||||||
| National Tank Services | 10.0 | 8.0 | 25.0% | 36.6 | 30.5 | 20.0% | ||||||||||||||
| Inter-segment revenue | (6.0) | (4.8) | (22.2) | (18.4) | ||||||||||||||||
| 75.3 | 68.9 | 9.3% | 291.5 | 268.6 | 8.5% | |||||||||||||||
| EBITDA | ||||||||||||||||||||
| Bulk Trucking | 9.0 | 7.7 | 29.6 | 28.7 | ||||||||||||||||
| Bulk Plus Logistics | 0.4 | 0.8 | 2.0 | 3.2 | ||||||||||||||||
| National Tank Services | 1.3 | 1.0 | 4.9 | 3.0 | ||||||||||||||||
| 10.7 | 9.5 | 36.5 | 34.9 | |||||||||||||||||
| Other Information | ||||||||||||||||||||
| Cash generated from operations | 10.9 | 8.8 | 37.6 | 33.7 | ||||||||||||||||
| Net property, plant and equipment additions | 3.1 | 2.8 | 26.9 | 14.4 | ||||||||||||||||
| Repurchase of common shares | - | - | 5.5 | - | ||||||||||||||||
| Acquisitions | - | - | 4.0 | 3.3 | ||||||||||||||||
| Share Information | ||||||||||||||||||||
| Cash generated from operations per share | 0.42 | 0.33 | 1.45 | 1.26 | ||||||||||||||||
| Earnings per share - adjusted (2) | 0.17 | 0.16 | 0.43 | 0.44 | ||||||||||||||||
| (1) Management believes it is useful to net fuel surcharge revenue into direct expenses when analyzing operating results. For Trimac, fuel surcharge revenue is considered an expense recovery. | ||||||||||||||||||||
| (2) Refer to the management's discussion and analysis for the year ended December 31, 2011 for the reconciliation of non-GAAP financial measures. | ||||||||||||||||||||
Financial Statements
At the time of issuing this press release, the audited consolidated financial statements and the related 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 April 16, 2012 to shareholders of record at the close of business on March 30, 2012. 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.
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 Trimac's MD&A for the year ended December 31, 2011 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 6838047) at 9:00 a.m. Eastern Time on Thursday, March 1, 2012. 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 Friday, March 2, 2012 on our website at http://www.trimac.ca/page/eventscalendar.
SOURCE Trimac Transportation Ltd.
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