Trimac Announces Improved 2011 Third Quarter Results
- Revenue improved $11.1 million (14.3%) to $88.6 million
- Revenue excluding fuel surcharges increased 8.4% to $77.7 million
- EBITDA increased 6.4%
- Free cash flow increased to $10.8 million from $4.4 million
- Adjusted earnings per share increased from $0.14/share to $0.16/share
- Credit agreement was renegotiated to increase line, improve terms and reduce interest rate spreads
CALGARY, Nov. 4, 2011 /PRNewswire/ - Trimac Transportation Ltd. (TSX: TMA) ("Trimac" or the "Company"), Canada's leader in bulk trucking, is pleased to announce the release of its financial results for the third quarter ended September 30, 2011 ("current quarter").
Trimac's consolidated revenue, including fuel surcharges, for the three-month period ended September 30, 2011 increased by $11.1 million (14.3%) as compared to the same period in the prior year ("prior quarter"). This increase was the result of increased revenue from existing customers, new business awards in the petroleum, industrial gas and woodchip sectors and an increase in fuel surcharge revenue of $5.1 million. Revenue excluding fuel surcharges improved by 8.4% to close the current quarter at $77.7 million. For the nine-month period ended September 30, 2011 ("current year") total revenue increased 13.1% to $245.1 million as compared to the $216.8 million reported in the prior nine-month period ("prior year"). The Benson asset acquisition late in the second quarter contributed $1.8 million in incremental revenue for the current year.
Direct costs net of fuel surcharge revenue expressed as a percent of revenue, decreased slightly in the current quarter to 69.8% from 69.9% in the prior quarter. Improved productivity due to drier weather and fully-trained new drivers contributed to this decrease. Of the $4.1 million increase in net direct costs, $1.2 million related to costs from the June 8th Benson acquisition.
EBITDA closed the quarter at $11.6 million compared to $10.9 million in the prior quarter, a 6.4% increase. Taking into consideration that the prior quarter comparative results do not include public company costs incurred by Trimac Income Fund of $0.2 million, EBITDA actually increased 8.4%. This increase was the result of the increased revenue volumes and improved productivity and utility and strong cost controls.
New Terms for Credit Facility
For the fourth quarter, Trimac negotiated new terms and increased its $95 million syndicated revolving credit facility. The new facility has increased our line from $95 million to $110 million, with an accordion option for up to $125 million, improved terms and has a reduction in interest rate spreads of up to 65 bps.
In commenting on the results for the quarter, Edward V. Malysa, President & Chief Operating Officer of Trimac, said "We are very pleased with our exceptional results for the third quarter. Our dedicated professional drivers and support team of mechanics, technicians and administrative staff all contributed to making this quarter great. We are well positioned for the remainder of the year with our investment in new equipment and our increased workforce to achieve strong results for the rest of 2011. In addition, our new credit facility will allow us to capitalize on opportunities when they arise."
Financial Highlights
| Three months ended Sept. 30 | Nine months ended Sept. 30 | |||||||||||||
| (unaudited, in millions of dollars except per share data) | 2011 | 2010 | Variance | 2011 | 2010 | Variance | ||||||||
| Consolidated Financial Results | ||||||||||||||
| Transportation revenue | 77.7 | 71.7 | 8.4% | 216.2 | 199.6 | 8.3% | ||||||||
| Operating expenses | ||||||||||||||
| Direct costs | 65.1 | 55.9 | 16.5% | 184.7 | 160.4 | 15.1% | ||||||||
| Fuel surcharges (1) | (10.9) | (5.8) | -87.9% | (28.9) | (17.2) | -68.0% | ||||||||
| 54.2 | 50.1 | 8.2% | 155.8 | 143.2 | 8.8% | |||||||||
| Percent of revenue | 69.8% | 69.9% | 72.1% | 71.7% | ||||||||||
| Selling and administration | 11.9 | 10.7 | 11.2% | 34.6 | 31.0 | 11.6% | ||||||||
| EBITDA (2) | 11.6 | 10.9 | 6.4% | 25.8 | 25.4 | 1.6% | ||||||||
| Percent of revenue | 14.9% | 15.2% | 11.9% | 12.7% | ||||||||||
| Operating earnings | 6.6 | 6.6 | 0.0% | 12.5 | 12.5 | 0.0% | ||||||||
| Adjusted net income (2) | 4.1 | 3.7 | 10.8% | 6.9 | 7.4 | -6.8% | ||||||||
| Segment Results | ||||||||||||||
| Revenue before fuel surcharges | ||||||||||||||
| Bulk Trucking | 69.5 | 64.4 | 7.9% | 192.1 | 179.4 | 7.1% | ||||||||
| Bulk Plus Logistics | 5.0 | 4.4 | 13.6% | 14.2 | 11.6 | 22.4% | ||||||||
| National Tank Services | 9.1 | 7.6 | 19.7% | 26.5 | 22.5 | 17.8% | ||||||||
| Inter-segment revenue | (5.9) | (4.7) | (16.6) | (13.9) | ||||||||||
| 77.7 | 71.7 | 8.4% | 216.2 | 199.6 | 8.3% | |||||||||
| EBITDA | ||||||||||||||
| Bulk Trucking | 9.8 | 9.1 | 20.7 | 20.8 | ||||||||||
| Bulk Plus Logistics | 0.5 | 0.9 | 1.6 | 2.4 | ||||||||||
| National Tank Services | 1.3 | 0.9 | 3.5 | 2.1 | ||||||||||
| 11.6 | 10.9 | 25.8 | 25.3 | |||||||||||
| Other Information | ||||||||||||||
| Cash generated from operations | 12.9 | 10.8 | 26.7 | 24.9 | ||||||||||
| Net property, plant and equipment additions | 9.2 | 4.2 | 23.9 | 11.6 | ||||||||||
| Repurchase of common shares | - | - | 5.5 | - | ||||||||||
| Acquisitions | - | - | 4.0 | 3.3 | ||||||||||
| Share Information | ||||||||||||||
| Cash generated from operations per share | 0.50 | 0.41 | 1.03 | 0.94 | ||||||||||
| Earnings per share - adjusted (2) | 0.16 | 0.14 | 0.27 | 0.28 | ||||||||||
| (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 third quarter management's discussion and analysis for the reconciliation of non-GAAP financial measures. | ||||
Financial Statements
At the time of issuing this press release, the unaudited interim 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 January 16, 2012 to shareholders of record at the close of business on December 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.
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 three and nine month periods ended September 30, 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 4711131) at 10:00 a.m. Eastern Time on Monday, November 7, 2011. For North American participants, please dial 1- 800-711-9538 or for international participants, please dial ++1-416-640-5925 at least 10 minutes prior to the start time of the call. An audio playback of the call will be available starting Tuesday, November 8, 2011 on our website at http://www.trimac.ca/page/eventscalendar.
SOURCE Trimac Transportation Ltd.
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