Vitran reports 2009 year-end and fourth quarter operating results
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REMINDER:
Vitran management will conduct a conference call and webcast today,
February 8, 2010 at 10:00 a.m. (ET), to discuss the Company's 2009 fourth
quarter results.
Conference call dial-in: 888/231-8191 or 647/427-7450 (international)
Live Webcast: www.vitran.com (select "Investor Relations")
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TORONTO, Feb. 8 /PRNewswire-FirstCall/ - Vitran Corporation Inc. (NASDAQ: VTNC, TSX: VTN), a North American transportation and supply chain firm, today announced year-end and quarterly financial results for the twelve and three-month periods ended December 31, 2009 (all figures reported in $U.S.).
For the year ended December 31, 2009, Vitran achieved consolidated revenue of $629.3 million compared to $726.3 million for the 2008 year. Vitran reported a net loss of $4.0 million, or $0.28 per diluted share compared to a net loss of $71.2 million, or $5.28 per diluted share in 2008. The 2008 net loss included a one-time non-cash goodwill impairment charge of $107.4 million, or $5.62 per diluted share.
In the 2009 fourth quarter, Vitran reported revenue of $165.0 million, 7.0 percent above the $154.2 million achieved in the year-ago period. During the three months, the Company incurred a net loss of $2.3 million, or $0.14 per diluted share. In the comparable 2008 three-month period, Vitran recorded a net loss of $79.0 million, or $5.85 per diluted share. Excluding the impact of the goodwill impairment charge, fourth quarter 2008 was a loss of $3.2 million or $0.23 per diluted share.
"The fourth quarter of 2009 was the first quarter in several quarters where financial and operating metrics improved over the prior year. We are very pleased with the sales momentum in our U.S. LTL business unit as our daily shipment count and daily tonnage exceeded the fourth quarter of 2008. Within our new amalgamated U.S. LTL business unit, our sales initiatives are working as evidenced by the 22.5% increase in length of haul for the year. All these improvements were offset by the persistence of a poor pricing environment in the fourth quarter. Notwithstanding, we feel that our positive activity trends position our LTL segment for success when the pricing environment begins to change," stated Vitran President and Chief Executive Officer Rick Gaetz.
"Our Supply Chain Operation segment is growing and performing. It is becoming a significant contributor to Vitran's overall business model. The SCO segment turned in a record fourth quarter and fiscal year for 2009. We continued to maximize our existing infrastructure, as well as added new customers and facilities to the U.S. infrastructure. We look forward to improved results in 2010," Mr. Gaetz added.
"With the fourth quarter improvements in the income from operations in our LTL and Supply Chain segments we were able to reduce our total debt under $100 million dollar, reducing our consolidated leverage ratio, resulting in a 50 basis point reduction on our syndicated debt margins for the first quarter of 2010."
"Finally, we would like to thank all the valued employees, customers and shareholders who remained committed to Vitran in these demanding economic times. We look forward to continued momentum with new opportunities in 2010," Mr. Gaetz concluded.
Segmented Results
The LTL (less-than-truckload) segment posted a loss from operations for the 2009 fourth quarter of $2.6 million, with an OR (operating ratio) of 101.9% compared to a loss from operations of $4.7 million and an OR of 103.7% in the comparable period a year ago. In the comparable fourth quarters, shipments and tonnage increased 3.6% and 4.7%, respectively, in the LTL segment.
The Supply Chain Operation segment posted an increase in revenue of 15.5% to $21.5 million, a 40.6% improvement in income from operations to $1.9 million and a 91.0 OR. The Truckload segment had a modest increase in revenue of 3.9 percent and posted a 98.1 OR.
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." Additional information regarding non-GAAP measures is also included on Form 10K. 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.
(financial statements follow)
Vitran Corporation Inc.
Consolidated Balance Sheets
(in thousands of United States dollars, US GAAP)
Dec. 31, Dec. 31,
2009 2008
Assets
Current assets:
Accounts receivable 69,591 65,741
Inventory, deposits and prepaid expenses 11,539 12,063
Income and other taxes recoverable 683 792
Deferred income taxes 3,495 1,877
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85,308 80,473
Property and equipment 145,792 152,602
Intangible assets 10,766 13,279
Goodwill 18,878 17,057
Deferred income taxes 33,594 30,181
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$ 294,338 $ 293,592
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Liabilities and Shareholders' Equity
Current liabilities:
Bank overdraft $ 105 $ 3,912
Accounts payable and accrued liabilities 65,446 63,495
Current portion of long-term debt 17,125 16,925
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82,676 84,332
Long-term debt 72,956 93,477
Other 2,919 4,540
Shareholders' equity:
Common shares 99,584 77,500
Additional paid-in capital 4,264 3,525
Retained earnings 29,281 33,253
Accumulated other comprehensive income (loss) 2,658 (3,035)
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135,787 111,243
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$ 294,338 $ 293,592
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(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 Twelve months
ended Dec. 31, ended Dec. 31,
2009 2008 2009 2008
------------ ------------ ------------ ------------
Revenue $ 165,027 $ 154,235 $ 629,260 $ 726,337
Operating expenses 162,027 153,115 609,767 695,294
Goodwill impairment - 107,351 - 107,351
Depreciation and
amortization expense 4,951 5,056 19,902 21,024
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166,978 265,522 629,669 823,669
Income (loss) from
operations before
undernoted (1,951) (111,287) (409) (97,332)
Interest expense, net 2,204 2,813 9,496 9,223
Income (loss) from
operations before
income taxes (4,155) (114,100) (9,905) (106,555)
Income (recovery) taxes (1,818) (35,098) (5,933) (35,330)
------------ ------------ ------------ ------------
Net income (loss) $ (2,337) $ (79,002) $ (3,972) $ (71,225)
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Basic income (loss)
per share -
Net income (loss) $ (0.14) $ (5.85) $ (0.28) $ (5.28)
Diluted income (loss)
per share -
Net income (loss) $ (0.14) $ (5.85) $ (0.28) $ (5.28)
Weighted average
number of shares:
Basic 16,266,441 13,498,159 14,293,747 13,485,132
Diluted 16,266,441 13,498,159 14,293,747 13,485,132
(Statements of Cash Flows follow)
VITRAN CORPORATION INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands of United States dollars, US GAAP)
Three Three Twelve Twelve
months months months months
Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2009 2008 2009 2008
Cash provided by
(used in):
Operations:
Net income (loss) $ (2,337) $ (79,002) $ (3,972) $ (71,225)
Items not involving
cash from
operations:
Depreciation and
amortization
expense 4,951 5,056 19,902 21,024
Goodwill impairment - 107,351 - 107,351
Deferred income
taxes (2,662) (35,322) (6,816) (35,439)
Share-based
compensation
expense 136 241 739 1,089
Loss (gain) on
sale of property
and equipment 154 (38) (285) (326)
Change in non-cash
working capital
components 7,336 15,625 (933) 5,772
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7,578 13,711 8,635 28,246
Investments:
Purchase of property
and equipment (1,052) (1,497) (5,007) (12,337)
Proceeds on sale of
property and equipment 479 185 1,657 1,572
Additional payment due
to acquisition of
subsidiary (1,000) (3,250) (1,000) (3,250)
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(1,573) (4,562) (4,350) (14,015)
Financing:
Revolving credit
facility and bank
overdraft (653) (5,278) 948 3,063
Repayment of long-term
debt (4,092) (2,488) (19,396) (10,214)
Financing costs - (1,007) (414) (1,007)
Repayment of capital
leases (1,283) (1,582) (5,804) (7,902)
Issue of common shares
in private offering - - 21,318 -
Issue of common shares
upon exercise of stock
options - - 333 254
------------ ------------ ------------ ------------
(6,028) (10,355) (3,015) (15,806)
Effect of translation
adjustment on cash 23 1,206 (1,270) 1,575
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Increase (decrease) in
cash position - - - -
Cash position, beginning
of period - - - -
------------ ------------ ------------ ------------
Cash position, end
of period $ - $ - $ - $ -
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Change in non-cash
working capital
components:
Accounts receivable $ 8,017 $ 27,509 $ (3,850) $ 8,520
Inventory, deposits
and prepaid expenses 225 99 938 269
Income and other
taxes recoverable/
payable 962 (639) 28 956
Accounts payable and
accrued liabilities (1,868) (12,622) 1,951 (3,973)
------------ ------------ ------------ ------------
$ 7,336 $ 15,625 $ (933) $ 5,772
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(additional financial information follows)
Supplementary Segmented Financial Information
(000's of $U.S.) (Unaudited)
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For the quarter ended For the quarter ended
Dec. 31, 2009 Dec. 31, 2008
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Inc. from Inc. from
Revenue Operations OR% Revenue Operations OR%
----------------------------------- ------------------------------------
LTL 134,705 (2,618) 101.9 LTL 127,130 (4,741) 103.7
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LOG 21,465 1,927 91.0 LOG 18,581 1,371 92.6
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TL 8,857 168 98.1 TL 8,524 299 96.5
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For the twelve months For the twelve months
ended Dec. 31, 2009 ended Dec. 31, 2008
----------------------------------- ------------------------------------
Inc. from Inc. from
Revenue Operations OR% Revenue Operations OR%
----------------------------------- ------------------------------------
LTL 519,215 (2,648) 100.5 LTL 610,933 8,980 98.5
----------------------------------- ------------------------------------
LOG 76,106 5,480 92.8 LOG 81,030 4,373 94.6
----------------------------------- ------------------------------------
TL 33,939 790 97.7 TL 34,374 1,307 96.2
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LTL SEGMENT - Statistical Information
(Unaudited)
For the quarter ended
December 31, 2009
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LTL Q. over Q.
($U.S.) Division % Change
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Revenue (000's) $ 134,705 *1.5%
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# of Shipments 916,372 3.6%
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Weight (000's lbs) 1,399,812 4.7%
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Revenue per shipment $ 147.00 *(2.0%)
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Revenue per CWT $ 9.62 *(3.0%)
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Year-to-date
December 31, 2009
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LTL Yr.-to-date.
($U.S.) Division % Change*
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Revenue (000's) $ 519,215 *(13.4%)
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# of Shipments 3,705,152 (5.7%)
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Weight (000's lbs) 5,492,869 (8.1%)
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Revenue per shipment $ 140.13 *(8.2%)
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Revenue per CWT $ 9.45 *(5.8%)
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* All % changes have been normalized for the impact of foreign exchange
fluctuation, period over period.
SOURCE Vitran Corporation Inc.
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