Trimac announces record revenue and pre-tax earnings for the third quarter of 2012
Highlights for the third quarter:
- Record revenue of $95.3 million, an increase of 7.6%
- Record pre-tax earnings of $6.7 million, an increase of 17.5%
- EBITDA increased 13% to $13 million
- Earnings per share increase of 14.8% to $0.18
CALGARY, Oct. 30, 2012 /PRNewswire/ - Trimac Transportation Ltd. (TSX Symbol TMA) ("Trimac" or the "Company"), Canada's leader in bulk trucking, is very pleased to announce the release of its financial results for the third quarter ended September 30, 2012 ("current quarter").
Trimac's consolidated revenue, including fuel surcharges, for the three-month period ended September 30, 2012 increased by $6.7 million (or 7.6%) as compared to the same period in the prior year ("comparative quarter"). Revenue excluding fuel surcharges for the current quarter increased $7.3 million (or 9.4%). This increase was primarily in the bulk trucking segment and was the result of increased volumes with existing customers, new business awards, and rate increases.
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 70.2% from 70.3% in the comparative quarter. Improved productivity due to continued monitoring of trip standards and a higher quality of revenue contributed to this improvement. Net direct costs in actual dollar amounts increased $5.1 million over the comparative quarter primarily as a result of the increased revenue volumes.
Selling and administrative costs as a percentage of revenue before fuel surcharges decreased to 14.5% from 14.9%. In absolute dollars selling and administrative costs increased $0.7 million from the comparative quarter. This increase was attributable to increased wage costs due to inflation adjustments, increased facility rental and occupancy costs due to the increased number of locations, and increased compensation costs.
EBITDA closed the current quarter at $13 million compared to $11.5 million in the comparative quarter, an increase of 13%. This increase was primarily the result of the increased revenue volumes, improvements in productivity and strong cost controls. Adjusted free cash flow before net changes in non-cash working capital increased 18.6% over the comparative quarter and 23.5% compared to the prior year.
"We are extremely pleased with our results for the quarter and with how well the integration of our acquisitions and new business awards have occurred," commented Edward V. Malysa, President and Chief Operating Officer of Trimac. "We are looking forward to finishing the balance of 2012 strong, as we ramp up our new business awards and our rate increases take effect during the fourth quarter. In addition, Trimac continues to be committed to recruiting and retention initiatives to support our growth and maintain our competitive advantage as a preferred place to work in the bulk trucking industry."
Financial Highlights
| Three months ended Sept 30 | Nine months ended Sept 30 | ||||||||||||||
| (in millions of dollars except per share data) | 2012 | 2011 | Variance | 2012 | 2011 | Variance | |||||||||
| Consolidated Financial Results | |||||||||||||||
| Revenue before fuel surcharges | 85.0 | 77.7 | 9.4% | 230.9 | 216.2 | 6.8% | |||||||||
| Operating expenses | |||||||||||||||
| Direct costs | 70.1 | 65.5 | 7.0% | 197.6 | 185.5 | 6.5% | |||||||||
| Fuel surcharges (1) | (10.4) | (10.9) | 4.6% | (32.0) | (28.9) | -10.7% | |||||||||
| 59.7 | 54.6 | 9.3% | 165.6 | 156.6 | 5.7% | ||||||||||
| Percent of revenue | 70.2% | 70.3% | 71.7% | 72.4% | |||||||||||
| Selling and administration | 12.3 | 11.6 | 6.0% | 35.2 | 33.7 | 4.5% | |||||||||
| Percent of revenue | 14.5% | 14.9% | 15.2% | 15.6% | |||||||||||
| EBITDA | 13.0 | 11.5 | 13.0% | 30.1 | 25.9 | 16.2% | |||||||||
| Operating earnings | 7.2 | 6.6 | 9.1% | 14.1 | 12.4 | 13.7% | |||||||||
| Pre-tax earnings | 6.7 | 5.7 | 17.5% | 12.6 | 9.6 | 31.3% | |||||||||
| Adjusted net income | 5.0 | 4.1 | 22.0% | 9.2 | 6.9 | 33.3% | |||||||||
| Segment Results | |||||||||||||||
| Revenue before fuel surcharges | |||||||||||||||
| Bulk Trucking | 76.2 | 69.3 | 10.0% | 205.5 | 191.6 | 7.3% | |||||||||
| Bulk Plus Logistics | 5.1 | 5.0 | 2.0% | 14.2 | 14.2 | 0.0% | |||||||||
| National Tank Services | 10.1 | 9.1 | 11.0% | 30.4 | 26.6 | 14.3% | |||||||||
| Inter-segment revenue | (6.4) | (5.7) | (19.2) | (16.2) | |||||||||||
| 85.0 | 77.7 | 9.4% | 230.9 | 216.2 | 6.8% | ||||||||||
| EBITDA | |||||||||||||||
| Bulk Trucking | 11.0 | 9.7 | 24.7 | 20.7 | |||||||||||
| Bulk Plus Logistics | 0.9 | 0.5 | 2.1 | 1.6 | |||||||||||
| National Tank Services | 1.1 | 1.3 | 3.3 | 3.6 | |||||||||||
| Other | - | - | - | - | |||||||||||
| 13.0 | 11.5 | 30.1 | 25.9 | ||||||||||||
| Other Information | |||||||||||||||
| Cash generated from operations | 12.9 | 12.9 | 27.5 | 26.7 | |||||||||||
| Net property, plant and equipment additions | 9.2 | 9.3 | 28.1 | 23.9 | |||||||||||
| Repurchase of common shares | - | - | - | 5.5 | |||||||||||
| Investment in associate | - | - | 9.2 | - | |||||||||||
| Acquisitions & investments | - | - | 12.4 | 4.0 | |||||||||||
| Share Information | |||||||||||||||
| Cash generated from operations per share | 0.46 | 0.50 | 1.00 | 1.02 | |||||||||||
| Earnings per share (basic) | 0.18 | 0.16 | 0.34 | 0.26 | |||||||||||
| Number of outstanding shares (basic) | 27.8 | 25.7 | 27.3 | 26.0 | |||||||||||
| (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. |
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Declaration of Quarterly Dividend
The Board of Directors today declared a dividend of $0.07 per share on the Class A common shares, payable on January 15, 2013 to shareholders of record at the close of business on December 31, 2012.
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 months ended September 30, 2012 for a discussion of 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 number 7252404) at 9:00 a.m. Eastern Time on Thursday, November 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, November 2, 2012 on our website at http://www.trimac.ca/page/eventscalendar.
SOURCE Trimac Transportation Ltd.
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