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Feb 08, 2008 06:36 ET
Vitran Reports 2007 Year-End and Fourth Quarter Operating Results
TORONTO, ONTARIO--(Marketwire - Feb. 8, 2008) -
REMINDER:
Vitran management will conduct a conference call and webcast today,
February 8, 2008 at 11:00 a.m. (ET), to discuss the Company's 2007 fourth
quarter results.
Conference call dial-in: 800/737-8127
Live Webcast: www.vitran.com (select "Investor Relations")
Vitran Corporation Inc. (TSX:VTN)(NASDAQ:VTNC), a North American transportation and logistics firm, today announced year-end and quarterly financial results for the twelve and three-month periods ended December 31, 2007 (all figures reported in $U.S.).
For the year ended December 31, 2007, Vitran achieved 30.4 percent revenue growth to $670.5 million, including a 32.5 percent increase in LTL (Less Than Truckload) and a 32.9 percent rise in Logistics revenue. Net income for 2007 was $13.7 million, or $1.00 per diluted share. As announced in the Company's 2007 Q3 results, Vitran incurred a one-time, $0.3 million write-off of previously capitalized syndication costs, net of taxes, as a result of refinancing its bank syndication agreement. The write-off impacted Vitran's FY EPS by $0.03. In the comparable twelve months of 2006, the Company reported net income of $19.4 million, or $1.48 per diluted share, on revenue of $514.1 million.
In the 2007 fourth quarter, Vitran reported revenue of $174.3 million, 13.3 percent above the $153.8 million achieved in the year-ago period. During the three months, the Company earned net income of $1.7 million, or $0.12 per diluted share. In the comparable 2006 three-month period, Vitran recorded net income of $5.0 million, or $0.37 per diluted share.
"As expected, the fourth quarter of 2007 marked another challenging period for Vitran and the entire North American trucking industry, as margins continued to experience downward pressure as a result of the soft economic environment. Importantly, we continue to achieve demonstrable progress internally on a number of key fronts," stated Vitran President and Chief Executive Officer Rick Gaetz.
"With the pending completion of our new IT operating system we are poised to leverage our client base throughout our expanded network, offering additional inter-regional and cross-border services. Once the IT platform is successfully implemented, we expect it to result in many organizational benefits including, enhanced measurement tools, improved productivity including, gains in linehaul, freight handling and administrative functions, and management is eager to begin capitalizing on this IT initiative in the second quarter of 2008. Additionally, with the IT project in place, we will begin to focus on the elimination of 13 redundant freight terminals throughout the Upper Midwest.
"Another key for Vitran is the success of our Logistics segment, which turned in a record fourth quarter. The 2008 first quarter will be Vitran's first full reporting period with our most recent acquisition, Las Vegas/L.A. Express (LVLA), contributing to results. To date, LVLA has been operating to plan, and we are very optimistic about its long-term possibilities given its strong retail customer base and strategic U.S. West Coast location. Our Canadian logistics operations is also expected to grow this coming year, benefiting from new and expanding customer relationships, as well as a new Toronto-based facility slated to come on line during the first half of 2008," Mr. Gaetz concluded.
Segmented Results
Income from operations at Vitran's LTL (less-than-truckload) segment during the 2007 fourth quarter was $2.2 million, with an OR (operating ratio) of 98.5, compared to Q4 '06 operating income of $8.3 million and a 93.9 OR. Shipments declined 2.8 percent in the LTL segment and tonnage fell 2.5 percent during the period. Revenue per shipment rose 6.3 percent and revenue per hundred-weight increased 6.0 percent.
Vitran Logistics posted an all-time record quarter, with revenue increasing 89 percent to $18.3 million, a 117 percent rise in income from operations to $1.3 million and a 92.9 OR. As previously announced, Vitran closed its first-ever supply chain acquisition during Q4 '07, purchasing California-based LVLA on December 1.
The Truckload segment also had a solid Q4 '07, with increases in revenue and income from operations, and a reduction in its OR to 93.3.
Upcoming Investor Conference
CEO Rick Gaetz and CFO Sean Washchuk will address BB&T Capital Markets' 23rd Annual Transportation Conference, which takes place at the Biltmore Hotel in Coral Gables, FL on February 13th. The presentation, at 1:30 p.m. ET, will be webcast live and subsequently archived at the 'Investor Relations' section of www.vitran.com.
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. (TSX:VTN)(NASDAQ:VTNC), 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.
Vitran Corporation Inc.
Consolidated Balance Sheets
(Unaudited)
(in thousands of United States dollars, US GAAP)
Dec. 31, 2007 Dec. 31, 2006
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 5,131 $ 5,208
Accounts receivable 74,261 66,051
Inventory, deposits and prepaid expenses 11,325 10,796
Income and other taxes recoverable 2,232 -
Deferred income taxes 2,599 1,720
--------- ---------
95,548 83,775
Property and equipment 169,062 145,129
Intangible assets 13,645 15,888
Goodwill 124,375 117,146
Other - 150
--------- ---------
$ 402,630 $ 362,088
--------- ---------
--------- ---------
Liabilities and Shareholders' Equity
Current liabilities:
Bank overdraft $ 5,521 $ 3,754
Accounts payable and accrued liabilities 67,468 $ 67,916
Income and other taxes payable - 1,275
Current portion of long-term debt 18,144 15,724
--------- ---------
91,133 88,669
Long-term debt 109,831 93,139
Other 3,512 -
Deferred income taxes 7,810 6,983
Shareholders' equity:
Common shares 77,246 76,913
Additional paid-in capital 2,436 1,607
Retained earnings 104,478 90,933
Accumulated other comprehensive income 6,184 3,844
--------- ---------
190,344 173,297
--------- ---------
$ 402,630 $ 362,088
--------- ---------
--------- ---------
(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. 30, Ended Dec. 30,
2007 2006 2007 2006
---- ---- ---- ----
Revenues $ 174,310 $ 153,779 $ 670,517 $ 514,059
Operating expenses 150,401 126,898 565,094 426,515
Selling, general and
administrative
expenses 16,071 13,773 62,086 47,448
Other income (307) (30) (432) (434)
Depreciation and
amortization expense 5,395 4,995 20,770 12,490
----------- ----------- ----------- -----------
171,560 145,636 647,518 486,019
Income from operations
before undernoted 2,750 8,143 22,999 28,040
Interest expense, net 1,922 2,039 8,426 2,660
Income from operations
before income taxes 828 6,104 14,573 25,380
Income taxes (841) 1,130 863 6,122
----------- ----------- ----------- -----------
Net income from
continuing operations $ 1,669 $ 4,974 $ 13,710 $ 19,258
----------- ----------- ----------- -----------
Cumulative effect of
change in
accounting principle $ - $ - $ - $ 141
Net income $ 1,669 $ 4,974 $ 13,710 $ 19,399
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Income per share:
Basic
-----
Net income from
continuing operations $ 0.12 $ 0.37 $ 1.02 $ 1.49
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Cumulative effect of a
change in
accounting principle $ - $ - $ - $ 0.01
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Net income $ 0.12 $ 0.37 $ 1.02 $ 1.50
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Diluted
-------
Net income from
continuing operations $ 0.12 $ 0.37 $ 1.00 $ 1.47
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Cumulative effect of a
change in
accounting principle $ - $ - $ - $ 0.01
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Net income $ 0.12 $ 0.37 $ 1.00 $ 1.48
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Weighted average
shares outstanding
Basic 13,457,619 13,413,153 13,458,786 12,887,401
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Diluted 13,621,272 13,624,031 13,651,799 13,124,865
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
(Statements of Cash Flows follows)
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,
2007 2006 2007 2006
Cash provided by (used in):
Operations:
Net income $ 1,669 $ 4,974 $ 13,710 $ 19,399
Items not involving cash
from operations:
Cumulative effect of
change
in accounting principle - - - (141)
Depreciation and
amortization expense 5,395 4,995 20,770 12,490
Deferred income taxes (762) 354 (775) 1,945
Share-based compensation
expense 277 212 997 839
Gain on sale of property
and equipment (307) (30) (432) (434)
Change in non-cash
working
capital components 28 29 (1,274) 1,026
----------- ------------ ----------- -----------
6,300 10,534 32,996 35,124
Investments:
Purchase of property and
equipment (5,992) (6,391) (22,870) (27,136)
Proceeds on sale of
property and equipment 619 427 931 2,490
Additional payment due
to acquisition
of subsidiary (1,980) - (8,901) -
Acquisition of
business assets - - - (2,251)
Acquisition of
subsidiary, net (5,990) (89,284) (5,990) (89,284)
----------- ------------ ----------- -----------
(13,343) (95,248) (36,830) (116,181)
Financing:
Change in revolving
credit facility 8,813 (10,800) 22,403 4,230
Proceeds from
long-term debt - - - 70,500
Repayment of
long-term debt (2,359) (3,864) (9,124) (5,825)
Financing costs (275) - (917) -
Repayment of
capital leases (2,670) (1,644) (7,842) (1,644)
Issue of common shares
upon exercise of
stock options - - 403 479
Repurchase of
common shares (403) (33) (403) (33)
----------- ------------ ----------- -----------
3,106 (16,431) 4,520 67,707
Effect of translation
adjustment on cash (272) 302 (2,530) 212
----------- ------------ ----------- -----------
Increase (decrease) in
cash position (4,209) (100,753) (1,844) (13,138)
Cash position, beginning
of period 3,819 102,207 1,454 14,592
----------- ------------ ----------- -----------
Cash position, end
of period $ (390) $ 1,454 $ (390) $ 1,454
----------- ------------ ----------- -----------
----------- ------------ ----------- -----------
Change in non-cash
working capital
components:
Accounts receivable $ 10,114 $ 8,947 $ (5,254) $ 2,278
Inventory, deposits and
prepaid expenses (341) 1,101 975 598
Income and other taxes
recoverable/payable (1,425) (442) (2,157) 151
Accounts payable and
accrued liabilities (8,320) (9,577) 5,162 (2,001)
----------- ------------ ----------- -----------
$ 28 $ 29 $ (1,274) $ 1,026
----------- ------------ ----------- -----------
----------- ------------ ----------- -----------
Supplemental cash
flow information
-----------------
Capital lease additions $ 2,055 $ - $ 10,356 $ -
(additional financial information follows)
Supplementary Segmented Financial Information
(000's of $U.S.) (Unaudited)
---------------------------------------------------------------------------
For the quarter ended For the quarter ended
Dec. 31, 2007 Dec. 31, 2006
---------------------------------------------------------------------------
Revenue Inc. from OR% Revenue Inc. from OR%
Operations Operations
---------------------------------------------------------------------------
LTL 147,731 2,233 98.5 LTL 136,005 8,336 93.9
---------------------------------------------------------------------------
LOG 18,267 1,295 92.9 LOG 9,680 596 93.8
---------------------------------------------------------------------------
TL 8,312 559 93.3 TL 8,094 439 94.6
---------------------------------------------------------------------------
---------------------------------------------------------------------------
For the twelve months For the twelve months
ended Dec. 31, 2007 ended Dec. 31, 2006
---------------------------------------------------------------------------
Revenue Inc. from OR% Revenue Inc. from OR%
Operations Operations
---------------------------------------------------------------------------
LTL 584,786 23,153 96.0 LTL 441,499 28,029 93.7
---------------------------------------------------------------------------
LOG 52,845 3,271 93.8 LOG 39,762 2,679 93.3
---------------------------------------------------------------------------
TL 32,886 1,678 94.9 TL 32,798 1,734 94.7
---------------------------------------------------------------------------
LTL SEGMENT - Statistical Information
(Unaudited)
---------------------------------------------------------
4th Quarter 2007 Q. vs. Q. % change
---------------------------------------------------------
Revenue ($ 000's) $ 147,731 8.6%
No. of Shipments 969,022 -2.8%
Weight (000's lbs) 1,435,375 -2.5%
Revenue per shipment $ 152.45 6.3%
Revenue per CWT $ 10.29 6.0%
---------------------------------------------------------
---------------------------------------------------------
For more information, please contact
Vitran Corporation Inc.Richard Gaetz
President/CEO
(416) 596-7664
or
Vitran Corporation Inc.
Sean Washchuk
VP Finance/CFO
(416) 596-7664
Website: www.vitran.com
or
Jaffoni & Collins Incorporated
Robert Rinderman
(212) 835-8500
or
Jaffoni & Collins Incorporated
Steven Hecht
(212) 835-8500
Email: VTNC@jcir.com