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8-K - FORM 8-K FILING DOCUMENT - VITRAN CORP INC | document.htm |
EXHIBIT 99.1
Vitran Reports 2013 Third Quarter Results
REMINDER: |
Vitran management will conduct a conference call and webcast today: |
November 1, at 10:00 a.m. ET |
to discuss the Company's 2013 third quarter results |
Conference call dial-in: 1-888-396-8049 or 416-764-8646 (International) |
Live Webcast: www.vitran.com (select "Investor Relations") |
TORONTO, Nov. 1, 2013 (GLOBE NEWSWIRE) -- Vitran Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), a premier Canadian Less-Than-Truckload ("LTL") transportation firm, today announced its unaudited financial results for the third quarter of 2013 and the nine-month period ended September 30, 2013 (all figures reported in $U.S.).
Third quarter ended September 30, 2013 highlights:
- Successfully completed the sale of our U.S. LTL business unit, which closed on October 7, 2013
- Revenue increased 3.9% year-over-year adjusted for impact of foreign exchange
- Net income from continuing operations increased 90% year-over-year to $1.4 million or $0.09 per share
- Stand-alone Canadian LTL operating ratio ("OR") improved 30bps year-over-year to 93.1%
- Stand-alone Canadian LTL EBITDA increased 3.5% year-over-year and increased 16.1% to $10.6 million for the nine-month period year-over-year
Vitran reported revenue of $49.4 million in the third quarter of 2013 compared to $49.6 million in the third quarter of 2012. Adjusted for the impact of foreign exchange, Vitran's Canadian LTL revenue increased 3.9% in the comparable third quarters. Vitran recorded net income from continuing operations of $1.4 million, or $0.09 per basic and diluted share, for the quarter ended September 30, 2013 compared to net income from continuing operations of $0.7 million, or $0.04 per basic and diluted share, for the 2012 third quarter.
For the nine months ended September 30, 2013, Vitran reported revenue of $146.0 million compared to $143.5 million for the same period in 2012. Adjusted for the impact of foreign exchange, Vitran's Canadian LTL revenue increased 4.2% in the comparable nine month periods. Vitran recorded a net loss from continuing operations of $0.1 million, or $0.01 per basic and diluted share, for the nine-month period ended September 30, 2013 compared to a net loss of $0.1 million, which resulted in a nominal loss per basic and diluted share, in the comparable nine-month period in 2012. On a non-GAAP basis, the Company recorded adjusted income from continuing operations of $0.09 per share for the nine months ended September 30, 2013. The adjusted income from continuing operations excludes the impact of $1.7 million in severance costs associated with the departure of Vitran's previous President and Chief Executive Officer and a $0.4 million one-time write-off of deferred financing costs related to amending Vitran's senior credit facility for the sale of its SCO business in March 2013.
As previously announced on October 7, 2013, Vitran completed the sale of its U.S. LTL business. Vitran recorded a $49.7 million non-cash loss on the write-down to the estimated fair value of the business unit. The write-down and operating results of the business unit have been recorded as a discontinued operation. After the completion of the sale, the Company's balance sheet consists of approximately $18 million in cash and $49 million of long-term debt.
Vitran Interim President and Chief Executive Officer William Deluce stated, "The third quarter of 2013 was a very important time in Vitran's history, most notably was the divestiture of our U.S. LTL operations. Along with greatly improving the Company's financial position, the U.S. divestiture allows us to focus solely on our Canadian LTL operations, a business we believe has a very bright future."
"We are extremely pleased with the results of our Canadian LTL business, which grew revenue by 3.9% and generated $3.4 million in operating income, resulting in a 93.1% operating ratio. While we view these results as impressive, we are especially encouraged considering the challenges of a tepid operating environment in the Canadian market place and with the sale of our U.S. operations. We view these solid results as not only a testament to management's ability, but also as a reflection of the value proposition Vitran offers to its customers. We would like to thank each and every one of our 453 Canadian employees and our customers for their support during this time of transition."
"We are excited about the future of Vitran and our prospects for enhancing shareholder value. We believe Vitran offers customers a compelling value proposition through a broad range of service offerings, including intermodal, regional, transborder and expedited over-the-road service. Our asset-light operating structure gives us the ability to quickly adapt to changing market conditions while also generating capital returns well in excess of LTL industry norms."
"The Board of Directors' commitment to enhancing value for its shareholders remains unwavering. With the divestiture of the U.S. business, we are now in a better position to explore strategic alternatives including evaluating any proposals made to purchase Vitran and we continue to work with our financial advisor, Stephens Inc. in this process. Our immediate focus is on addressing our corporate overhead expenses, which were $1.2 million in the third quarter of 2013. Given the divestiture of the U.S. business, we expect to reduce our corporate expenses, the degree of which could be material and is largely contingent on the outcome of our assessment of strategic alternatives," concluded Mr. Deluce.
Operating Results
For the 2013 third quarter, the Company posted income from operations in its Canadian LTL business, excluding expenses related to the corporate office, of $3.4 million compared to $3.3 million for the 2012 third quarter. Adjusting for the impact of foreign exchange, income from operations improved 9.5% in the quarter over the prior year quarter. EBITDA, excluding corporate expenses, for the three months ended September 30, 2013 was $4.2 million compared to $4.0 million in the third quarter of 2012. The Canadian LTL business, excluding expenses related to the corporate office, posted an OR of 93.1% compared to 93.4% in the comparable period a year ago. For the nine months ended September 30, 2013, the Canadian LTL business, excluding expenses related to the corporate office, posted an OR of 94.3% compared to 95.2% in the prior year. EBITDA, excluding corporate expenses, for the nine months ended September 30, 2013 was $10.6 million compared to $9.1 million in the comparable period in 2012. Income from operations for the nine month period was $8.3 million compared to $6.8 million for the nine months ended September 30, 2012. Adjusting for the impact of foreign exchange, income from operations improved 24.1% in the nine month period ended September 30, 2013 compared to the previous year.
In the comparable third quarters, shipments increased 3.8% while tonnage decreased 2.5%.
About Vitran Corporation Inc.
Vitran Corporation Inc., through its wholly-owned subsidiaries, is a group of transportation companies offering national, regional, expedited and transborder less-than-truckload services throughout 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, which include statements regarding the future of the Canadian LTL business and the reduction of expenses related to the corporate office, 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.
This press release refers to operating ratio, EBITDA (earnings before interest, tax, depreciation and amortization ("EBITDA"), adjusted EBITDA and adjusted income from continuing operations which are non-GAAP financial measures that do not have any standardized meaning prescribed by GAAP. The Company's presentation of these non-GAAP financial measures may not be comparable to similarly titled measures used by other companies. These non-GAAP financial measures are intended to provide additional information to investors concerning the Company's performance.
(tables follow)
Vitran Corporation Inc. | ||
Consolidated Balance Sheets | ||
(in thousands of United States dollars, US GAAP) | ||
(Unaudited) | ||
Sept 30, 2013 | Dec 31, 2012 | |
Assets | ||
Current assets: | ||
Cash and cash equivalents | $ 25,904 | $ 233 |
Accounts receivable | 21,406 | 17,988 |
Inventory, deposits and prepaid expenses | 2,921 | 3,505 |
Income taxes recoverable | 323 | -- |
Current assets of discontinued operations | 75,563 | 65,402 |
Deferred income taxes | 89 | 92 |
126,206 | 87,220 | |
Property and equipment | 49,835 | 53,365 |
Goodwill | 5,388 | 5,579 |
Long-term assets of discontinued operations | -- | 92,370 |
$ 181,429 | $ 238,534 | |
Liabilities and Shareholders' Equity | ||
Current liabilities: | ||
Accounts payable and accrued liabilities | $ 26,947 | $ 24,008 |
Income taxes payable | -- | 554 |
Current liabilities of discontinued operations | 75,563 | 59,810 |
Current portion of long-term debt | 1,333 | 1,333 |
103,843 | 85,705 | |
Long-term debt | 47,730 | 58,969 |
Deferred income taxes | 999 | 1,175 |
Long-term liabilities of discontinued operations | -- | 43,028 |
Shareholders' equity: | ||
Common shares | 100,204 | 99,954 |
Additional paid-in capital | 5,857 | 5,708 |
Accumulated deficit | (82,884) | (60,889) |
Accumulated other comprehensive income | 5,680 | 4,884 |
28,857 | 49,657 | |
$ 181,429 | $ 238,534 |
(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 September 30, |
Nine months ended September 30, |
|||
2013 | 2012 | 2013 | 2012 | |
Revenue | $ 49,373 | $ 49,626 | $ 146,036 | $ 143,504 |
Operating expenses: | ||||
Salaries, wages and other employee benefits | 6,637 | 6,396 | 21,446 | 18,693 |
Purchased transportation | 17,018 | 17,814 | 50,659 | 52,004 |
Depreciation and amortization | 769 | 784 | 2,372 | 2,331 |
Maintenance | 1,898 | 2,241 | 6,078 | 7,640 |
Rents and leases | 636 | 694 | 1,950 | 2,084 |
Owner operators | 12,882 | 12,506 | 37,856 | 35,684 |
Fuel and fuel-related expenses | 5,372 | 5,075 | 16,222 | 16,320 |
Other operating expenses | 2,052 | 2,177 | 7,260 | 5,917 |
Other income | (78) | (30) | (262) | (41) |
Total operating expenses | $ 47,186 | $ 47,657 | $ 143,581 | $ 140,632 |
Income from continuing operations before the undernoted | 2,187 | 1,969 | 2,455 | 2,872 |
Interest expense, net | (655) | (750) | (2,536) | (2,242) |
Income (loss) from continuing operations before income taxes | 1,532 | 1,219 | (81) | 630 |
Income tax expense | 134 | 482 | 51 | 677 |
Net income (loss) from continuing operations | 1,398 | 737 | (132) | (47) |
Discontinued operations, net of income taxes | (74,092) | (10,837) | (21,863) | (20,032) |
Net loss | $ (72,694) | $ (10,100) | $ (21,995) | $ (20,079) |
Basic and Diluted income (loss) per share: | ||||
Income (loss) from continuing operations | $ 0.09 | $ 0.04 | $ (0.01) | $ -- |
Discontinued operations loss | $ (4.51) | $ (0.66) | $ (1.33) | $ (1.23) |
Net loss | $ (4.42) | $ (0.62) | $ (1.34) | $ (1.23) |
Weighted average number of shares: | ||||
Basic | 16,432,241 | 16,399,241 | 16,422,208 | 16,388,569 |
Diluted | 16,432,241 | 16,399,241 | 16,422,208 | 16,388,569 |
(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 September 30, |
Nine months ended September 30, |
|||
2013 | 2012 | 2013 | 2012 | |
Cash provided by (used in): | ||||
Operations: | ||||
Net loss | $ (72,694) | $ (10,100) | $ (21,995) | $ (20,079) |
Items not involving cash from operations: | ||||
Depreciation and amortization | 769 | 784 | 2,372 | 2,331 |
Deferred income taxes | -- | 7 | (178) | (38) |
Share-based compensation expense | 42 | 102 | 229 | 329 |
Gain on sale of property and equipment | (78) | (30) | (262) | (41) |
Loss from discontinued operations | 74,092 | 10,837 | 21,863 | 20,032 |
Change in non-cash working capital components | 146 | (125) | (1,001) | (1,971) |
Continuing operations | 2,277 | 1,475 | 1,028 | 563 |
Discontinued operations | (18,205) | (4,915) | (49,179) | (6,512) |
(15,928) | (3,440) | (48,151) | (5,949) | |
Investments: | ||||
Advance on sale of business | 400 | -- | 400 | -- |
Proceeds from sale of business, net of cash divested | -- | -- | 94,102 | -- |
Purchase of property and equipment | (118) | (2,347) | (661) | (5,656) |
Proceeds on sale of property and equipment | 78 | 33 | 262 | 77 |
Continuing operations | 360 | (2,314) | 94,103 | (5,579) |
Discontinued operations | 1,490 | (3,600) | 1,181 | (6,311) |
1,850 | (5,914) | 95,284 | (11,890) | |
Financing: | ||||
Change in revolving credit facility and bank overdraft | -- | 2,021 | (8,500) | 2,121 |
Repayment of long-term debt | (274) | (243) | (843) | (726) |
Repayment of capital leases | (41) | (41) | (123) | (126) |
Financing costs | -- | -- | (121) | -- |
Issue of common shares upon exercise of stock options | -- | -- | 170 | 151 |
Continuing operations | (315) | 1,737 | (9,417) | 1,420 |
Discontinued operations | (1,674) | 6,507 | (12,492) | 15,435 |
(1,989) | 8,244 | (21,909) | 16,855 | |
Effect of foreign exchange translation on cash | 736 | (201) | 447 | (220) |
Increase (decrease) in cash and cash equivalents | (15,331) | (1,311) | 25,671 | (1,204) |
Cash and cash equivalents, beginning of period | 41,235 | 1,311 | 233 | 1,204 |
Cash and cash equivalents, end of period | $ 25,904 | $ -- | $ 25,904 | $ -- |
Change in non-cash working capital components: | ||||
Accounts receivable | $ (728) | $ (2,183) | $ (3,368) | $ (4,914) |
Inventory, deposits and prepaid expenses | (208) | (174) | 705 | 196 |
Income taxes recoverable/payable | (58) | 58 | (877) | (497) |
Accounts payable and accrued liabilities | 1,140 | 2,174 | 2,539 | 3,244 |
$ 146 | $ (125) | $ (1,001) | $ (1,971) |
(additional financial information follows)
Supplementary Financial Information | |||||||
(in thousands of United States dollars) | |||||||
(Unaudited) | |||||||
For the quarter ended September 30, 2013 |
For the quarter ended September 30, 2012 |
||||||
Revenue |
Inc. from Operations |
OR% |
Revenue |
Inc. from Operations |
OR% |
||
LTL | $ 49,373 | $ 3,416 | 93.1 | LTL | $ 49,626 | $ 3,264 | 93.4 |
Corporate and Other | $ -- | $ (1,229) | -- | Corporate and Other | $ -- | $ (1,295) | -- |
Total | $ 49,373 | $ 2,187 | 95.6 | Total | $ 49,626 | $ 1,969 | 96.0 |
For the nine months ended September 30, 2013 |
For the nine months ended September 30, 2012 |
||||||
Revenue |
Inc. from Operations |
OR% |
Revenue |
Inc. from Operations |
OR% |
||
LTL | $ 146,036 | $ 8,269 | 94.3 | LTL | $ 143,504 | $ 6,847 | 95.2 |
Corporate and Other | $ -- | $ (5,814) | -- | Corporate and Other | $ -- | $ (3,975) | -- |
Total | $ 146,036 | $ 2,455 | 98.3 | Total | $ 143,504 | $ 2,872 | 98.0 |
Statistical Information | ||
(Unaudited) | ||
For the quarter ended September 30, 2013 |
||
($U.S.) |
Canadian LTL Division |
Q. over Q. % Change |
Revenue (000's) | $ 49,373 | * 3.9% |
No. of Shipments | 230,826 | 3.8% |
Weight (000's lbs) | 424,393 | (2.5%) |
Revenue per shipment | $ 213.90 | * 0.1% |
Revenue per CWT | $ 11.63 | * 6.6% |
For the nine months ended September 30, 2013 |
||
($U.S.) |
Canadian LTL Division |
Y. over Y. % Change |
Revenue (000's) | $ 146,036 | * 4.2% |
No. of Shipments | 675,917 | 4.9% |
Weight (000's lbs) | 1,280,234 | 1.9% |
Revenue per shipment | $ 216.06 | * (0.7%) |
Revenue per CWT | $ 11.41 | * 2.2% |
* All % changes have been normalized for the impact of foreign exchange fluctuation, period over period |
Non-GAAP Measures | ||||
Three months ended September 30, |
Nine months ended September 30, |
|||
2013 | 2012 | 2013 | 2012 | |
Net income (loss) from continuing operations | $ 1,398 | $ 737 | $ (132) | $ (47) |
Income taxes expense | 134 | 482 | 51 | 677 |
Interest expense, net | 655 | 750 | 2,536 | 2,242 |
Depreciation and amortization | 769 | 784 | 2,372 | 2,331 |
EBITDA | 2,956 | 2,753 | 4,827 | 5,203 |
Severance | -- | -- | 1,738 | -- |
Adjusted EBITDA | $ 2,956 | $ 2,753 | $ 6,565 | $ 5,203 |
Three months ended September 30, |
Nine months ended September 30, |
|||
2013 | 2012 | 2013 | 2012 | |
Net income (loss) from continuing operations | $ 1,398 | $ 737 | $ (132) | $ (47) |
Severance | -- | -- | 1,738 | -- |
Write-off of financing costs | -- | -- | 350 | -- |
Tax effect on normalizing adjustments | -- | -- | (554) | -- |
Adjusted net income (loss) from Continuing operations | $ 1,398 | $ 737 | $ 1,402 | $ (47) |
Weighted average shares outstanding: | ||||
Basic | 16,432,241 | 16,399,241 | 16,422,208 | 16,388,569 |
Diluted | 16,432,241 | 16,399,241 | 16,422,208 | 16,388,569 |
Basic and diluted net income (loss) per share from continuing operations | $ 0.09 | $ 0.04 | $ (0.01) | $ -- |
Adjusted basic and diluted income per share from continuing operations | $ 0.09 | $ 0.04 | $ 0.09 | $ -- |
Three months ended September 30, |
Nine months ended September 30, |
|||
2013 | 2012 | 2013 | 2012 | |
Operating Ratio: | ||||
Consolidated | ||||
Total operating expenses | $ 47,186 | $ 47,657 | $ 143,581 | $ 140,632 |
Revenue | 49,373 | 49,626 | 146,036 | 143,504 |
Operating ratio | 95.6% | 96.0% | 98.3% | 98.0% |
Canadian LTL | ||||
Total operating expenses | $ 45,957 | $ 46,362 | $ 137,767 | $ 136,657 |
Revenue | 49,373 | 49,626 | 146,036 | 143,504 |
Operating ratio | 93.1% | 93.4% | 94.3% | 95.2% |
CONTACT: William Deluce, Interim President/CEO Fayaz Suleman, VP Finance/CFO Vitran Corporation Inc. 416/596-7664