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| 8-K - FORM 8-K FILING DOCUMENT - VITRAN CORP INC | document.htm |
EXHIBIT 99.1
Vitran Reports 2013 Second Quarter Results
| REMINDER: |
|
Vitran management will conduct a conference call and webcast today: July 31, at 10:00 a.m. ET to discuss the Company's 2013 second quarter results |
| Conference call dial-in: 1-888-396-8049 or 416-764-8646 (International) |
| Live Webcast: www.vitran.com (select "Investor Relations") |
TORONTO, July 31, 2013 (GLOBE NEWSWIRE) -- Vitran Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), a North American transportation firm, today announced its unaudited financial results for the second quarter of 2013 and the six-month period ended June 30, 2013 (all figures reported in $U.S.).
Vitran reported a 10.0% decrease in revenues to $165.4 million in the second quarter of 2013 compared to $183.8 million in the second quarter of 2012. Vitran recorded a net loss from continuing operations of $17.0 million, or $1.03 per basic and diluted share, for the quarter ended June 30, 2013 compared to a net loss from continuing operations of $5.7 million, or $0.35 per basic and diluted share, for the 2012 second quarter.
For the six months ended June 30, 2013, Vitran reported a 9.9% decrease in revenue to $326.6 million compared to $362.4 million for the same period in 2012. Vitran recorded a net loss of $34.6 million, or $2.11 per basic and diluted share, for the six-month period ended June 30, 2013 compared to a net loss of $12.9 million, or $0.79 per basic and diluted share, in the comparable six-month period in 2012.
In the second quarter of 2013, Vitran received additional proceeds of $1.8 million from the sale of its previously announced Supply Chain Operation as result of final working capital adjustments. Vitran also recorded $1.8 million in severance costs associated with the departure of its previous President and Chief Executive Officer.
Vitran Interim President and Chief Executive Officer William Deluce stated, "We are extremely pleased with the operating results of our Canadian LTL business. Commercial efforts by the Canadian management team are bearing fruit, with an increase in activity levels year-over-year. We continue to expect positive results in the quarters to come and are proud of the excellent service we deliver consistently every day to our customers in Canada."
"At the same time we are disappointed with Vitran's consolidated financial results, which were weighed down by the operating results of the U.S. LTL business unit. Vitran's Board of Directors continues to proactively address the challenges in its U.S. LTL business. Initiatives undertaken include increasing the investments in technology, a revamped focus on sales and the transfer of Vitran's western service offering to an interline partnership. I am confident that these initiatives have improved the longer-term prospects for the U.S. LTL business."
"Vitran's Board remains committed to enhancing overall shareholder value and continues to evaluate opportunities to return Vitran to profitability," concluded Mr. Deluce.
Operating Results
For the 2013 second quarter the Company posted a loss from operations in its LTL business of $12.3 million compared to $3.3 million for the 2012 second quarter. The LTL business posted an OR (operating ratio) of 107.4% compared to an OR of 101.8% in the comparable period a year ago. In the comparable second quarters, shipments and tonnage decreased 11.2% and 11.8% respectively.
About Vitran Corporation Inc.
Vitran Corporation Inc. is a North American group of transportation companies offering less-than-truckload services throughout the United States and Canada. 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." 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.
(tables follow)
| Vitran Corporation Inc. | ||
| Consolidated Balance Sheets | ||
| (in thousands of United States dollars, US GAAP) | ||
| June 30, 2013 | Dec 31, 2012 | |
| (unaudited) | (audited) | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 41,235 | $ 233 |
| Accounts receivable | 73,343 | 65,291 |
| Inventory, deposits and prepaid expenses | 9,485 | 10,131 |
| Income taxes recoverable | 476 | -- |
| Current assets of discontinued operations | -- | 11,436 |
| Deferred income taxes | 87 | 92 |
| 124,626 | 87,183 | |
| Property and equipment | 123,716 | 131,640 |
| Intangible assets | 1,841 | 2,707 |
| Goodwill | 5,278 | 5,579 |
| Long-term assets of discontinued operations | -- | 11,388 |
| $ 255,461 | $ 238,497 | |
| Liabilities and Shareholders' Equity | ||
| Current liabilities: | ||
| Accounts payable and accrued liabilities | $ 70,840 | $ 67,744 |
| Income taxes payable | -- | 517 |
| Current liabilities of discontinued operations | -- | 14,068 |
| Current portion of long-term debt | 3,828 | 3,339 |
| 74,668 | 85,668 | |
| Long-term debt | 79,155 | 101,997 |
| Deferred income taxes | 997 | 1,175 |
| Shareholders' equity: | ||
| Common shares | 100,204 | 99,954 |
| Additional paid-in capital | 5,815 | 5,708 |
| Accumulated deficit | (10,190) | (60,889) |
| Accumulated other comprehensive income | 4,812 | 4,884 |
| 100,641 | 49,657 | |
| $ 255,461 | $ 238,497 | |
(Consolidated Statements of Income (Loss) follows)
| Vitran Corporation Inc. | ||||
| Consolidated Statements Of Income (Loss) | ||||
| (Unaudited) | ||||
| (in thousands of United States dollars except per share amounts, US GAAP) | ||||
|
Three months ended June 30, |
Six months ended June 30, |
|||
| 2013 | 2012 | 2013 | 2012 | |
| Revenue | $ 165,443 | $ 183,789 | $ 326,552 | $ 362,376 |
| Operating expenses: | ||||
| Salaries, wages and other employee benefits | 75,628 | 78,054 | 148,750 | 154,425 |
| Purchased transportation | 25,968 | 26,176 | 50,944 | 51,947 |
| Depreciation and amortization | 3,696 | 3,766 | 7,597 | 7,525 |
| Maintenance | 8,710 | 9,148 | 16,189 | 17,731 |
| Rents and leases | 8,916 | 8,439 | 17,515 | 16,386 |
| Owner operators | 13,005 | 11,950 | 24,974 | 23,178 |
| Fuel and fuel-related expenses | 29,868 | 34,738 | 61,443 | 70,762 |
| Other operating expenses | 15,806 | 16,205 | 31,439 | 31,292 |
| Other income | (673) | (132) | (963) | (50) |
| Total operating expenses | $ 180,924 | $ 188,344 | $ 357,888 | $ 373,196 |
| Loss from continuing operations before the undernoted | (15,481) | (4,555) | (31,336) | (10,820) |
| Interest expense, net | 1,358 | 1,325 | 3,278 | 2,635 |
| Loss from continuing operations before income taxes | (16,839) | (5,880) | (34,614) | (13,455) |
| Income tax expense (recovery) | 134 | (157) | (12) | (545) |
| Net loss from continuing operations | (16,973) | (5,723) | (34,602) | (12,910) |
| Discontinued operations, net of income taxes | -- | 1,560 | 85,301 | 2,931 |
| Net income (loss) | $ (16,973) | $ (4,163) | $ 50,699 | $ (9,979) |
| Basic and Diluted income (loss) per share: | ||||
| Loss from continuing operations | $ (1.03) | $ (0.35) | $ (2.11) | $ (0.79) |
| Discontinued operations income | $ -- | $ 0.10 | $ 5.20 | $ 0.18 |
| Net income (loss) | $ (1.03) | $ (0.25) | $ 3.09 | $ (0.61) |
| Weighted average number of shares: | ||||
| Basic | 16,432,241 | 16,399,241 | 16,417,108 | 16,383,175 |
| Diluted | 16,432,241 | 16,399,241 | 16,417,108 | 16,383,175 |
(Consolidated Statements of Cash Flows follows)
| Vitran Corporation Inc. | ||||
| Consolidated Statements Of Cash Flows | ||||
| (Unaudited) | ||||
| (in thousands of United States dollars, US GAAP) | ||||
|
Three months ended June 30, |
Six months ended June 30, |
|||
| 2013 | 2012 | 2013 | 2012 | |
| Cash provided by (used in): | ||||
| Operations: | ||||
| Net income (loss) | $ (16,973) | $ (4,163) | $ 50,699 | $ (9,979) |
| Items not involving cash from operations: | ||||
| Depreciation and amortization | 3,696 | 3,766 | 7,597 | 7,525 |
| Deferred income taxes | 44 | (1) | (178) | (44) |
| Share-based compensation expense | 92 | 100 | 187 | 227 |
| Gain on sale of property and equipment | (673) | (132) | (963) | (50) |
| Income from discontinued operations | -- | (1,560) | (85,301) | (2,931) |
| Change in non-cash working capital components | 2,280 | 5,452 | (4,739) | (873) |
| Continuing operations | (11,534) | 3,462 | (32,698) | (6,125) |
| Discontinued operations | -- | 237 | 475 | 3,616 |
| (11,534) | 3,699 | (32,223) | (2,509) | |
| Investments: | ||||
| Proceeds from sale of business, net of cash divested | 363 | -- | 94,102 | -- |
| Purchase of property and equipment | (1,695) | (5,500) | (2,486) | (7,082) |
| Proceeds on sale of property and equipment | 1,451 | 1,026 | 1,795 | 1,567 |
| Continuing operations | 119 | (4,474) | 93,411 | (5,515) |
| Discontinued operations | -- | (261) | 22 | (461) |
| 119 | (4,735) | 93,433 | (5,976) | |
| Financing: | ||||
| Change in revolving credit facility and bank overdraft | -- | 1,440 | (31,750) | 10,980 |
| Repayment of long-term debt | (628) | (489) | (1,072) | (733) |
| Proceeds from long-term debt | -- | -- | 14,058 | -- |
| Repayment of capital leases | (409) | (846) | (811) | (1,787) |
| Financing costs | -- | -- | (514) | -- |
| Issue of common shares upon exercise of stock options | -- | -- | 170 | 151 |
| (1,037) | 105 | (19,919) | 8,611 | |
| Effect of foreign exchange translation on cash | (889) | 65 | (289) | (19) |
| Increase (decrease) in cash and cash equivalents | (13,341) | (866) | 41,002 | 107 |
| Cash and cash equivalents, beginning of period | 54,576 | 2,177 | 233 | 1,204 |
| Cash and cash equivalents, end of period | $ 41,235 | $ 1,311 | $ 41,235 | $ 1,311 |
| Change in non-cash working capital components: | ||||
| Accounts receivable | $ 2,508 | $ 368 | $ (8,002) | $ (8,137) |
| Inventory, deposits and prepaid expenses | 992 | 1,724 | 1,160 | 454 |
| Income taxes recoverable/payable | 4 | 1,659 | (993) | 570 |
| Accounts payable and accrued liabilities | (1,224) | 1,701 | 3,096 | 6,240 |
| $ 2,280 | $ 5,452 | $ (4,739) | $ (873) | |
(additional financial information follows)
| Statistical Information | ||
| (Unaudited) | ||
| For the quarter ended | ||
| June 30, 2013 | ||
| ($U.S.) | LTL | Q. over Q. |
| Division | % Change | |
| Revenue (000's) | $165,443 | * (9.7%) |
| No. of Shipments | 1,025,690 | (11.2%) |
| Weight (000's lbs) | 1,505,259 | (11.8%) |
| Revenue per shipment | $161.30 | * 1.7% |
| Revenue per CWT | $10.99 | * 2.4% |
| For the six months ended | ||
| June 30, 2013 | ||
| ($U.S.) | LTL | Y. over Y. |
| Division | % Change | |
| Revenue (000's) | $326,552 | * (9.6%) |
| No. of Shipments | 2,005,593 | (12.1%) |
| Weight (000's lbs) | 2,942,072 | (12.4%) |
| Revenue per shipment | $162.82 | * 2.9% |
| Revenue per CWT | $11.10 | * 3.3% |
* All % changes have been normalized for the impact of foreign exchange fluctuation, period over period
CONTACT: William Deluce, Interim President/CEO
Fayaz Suleman, VP Finance/CFO
Vitran Corporation Inc.
416/596-7664