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Press release from GlobeNewswire (a Nasdaq OMX company)

Vitran Reports 2012 Second Quarter Results

Thursday, July 19, 2012

Vitran Reports 2012 Second Quarter Results03:30 EDT Thursday, July 19, 2012REMINDER: Vitran management will conduct a conference call and webcast today: July 19, at 10:00 a.m. ET, to discuss the Company's 2012 second quarter results Conference call dial-in: 1-888-396-8063 or 416-764-8652 (International) Live Webcast: www.vitran.com (select "Investor Relations") TORONTO, July 19, 2012 (GLOBE NEWSWIRE) -- Vitran Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), a North American transportation and supply chain firm, today announced financial results for the second quarter of 2012 and the six-month period ended June 30, 2012 (all figures reported in $U.S.). Vitran reported a 2.0% increase in revenue to $213.1 million for the quarter ended June 30, 2012 compared to $208.9 million for second quarter of 2011. Adjusting for the impact of foreign exchange on Vitran's Canadian operations, consolidated revenue increased 3.3% in the comparable second quarters. Vitran recorded a net loss of $4.2 million, or $0.25 per share, for the second quarter of 2012 compared to a net loss of $2.3 million, or $0.14 per share, for the same period in 2011. On a non-GAAP basis that would include adjusting for a tax recovery on Vitran's U.S. operations, the Company recorded an adjusted net loss of $0.14 per share for the second quarter of 2012 compared to an adjusted loss of $0.03 per share for the second quarter of 2011. In accordance with FASB ASC 740-10, Vitran temporarily discontinued recording an income tax provision for its U.S. operations Vitran reported a 6.7% increase in revenue to $420.8 million for the six months ended June 30, 2012 compared to $394.3 million for the same period in 2011. Adjusting for the impact of foreign exchange on Vitran's Canadian operations, consolidated revenue increased 7.7% in the comparable six-month periods. Vitran recorded a net loss of $10.0 million, or $0.61 per share, for the six-month period ended June 30, 2012 compared to a net loss of $2.5 million, or $0.15 per share, in the comparable six-month period. On a non-GAAP basis that would include adjusting for a tax recovery on Vitran's U.S. operations, the Company recorded an adjusted net loss of $0.36 per share for the six-month period ended June 30, 2012, compared to a net loss of $0.01 per share for the comparable six-month period. "We are disappointed with our consolidated second quarter results; however, we remain pleased with the operating results generated by our Canadian LTL and Supply Chain operations. Both management groups are focused on expanding their businesses for the balance of 2012. We opened an additional SCO facility in Kansas City, Kansas on July 1 which will begin contributing in the third quarter," stated Vitran President and Chief Executive Officer Rick Gaetz. "Our U.S. LTL operation continues to be our main challenge, priority and opportunity. Although U.S. LTL operating results in the second quarter improved approximately 10% from the 2012 first quarter, the improvement was much less than we anticipated. The delay in real recovery can be attributed to operating personnel turnover during the quarter as we continue to aggressively upgrade the talent on Chris's team. This will help accelerate our recovery in the back half of 2012 and more importantly into 2013." "During the quarter there were many pieces put in place to build a solid foundation for the future. These include the reintroduction of our freight costing model, the expansion of our shipment reweigh technology, the rollout of our in-cab handheld tablet technology, the rollout of our new dispatch system, the rollout of our new linehaul planning technology and finally and perhaps most importantly, the implementation of our new linehaul and operating plan on July 9, 2012." "Chris Keylon and his team have upgraded the talent and improved the culture of the organization as we lay the building blocks for 2013. We have much work ahead of us but we will expect to see progress in the back half of 2012," concluded Mr. Gaetz.Segmented Results The LTL (less-than-truckload) segment posted revenue improvement of 3.0% to $183.8 million for the second quarter of 2012 compared to revenue of $178.4 million in the second quarter of 2011.   Loss from operations for the 2012 second quarter was $3.3 million, compared to loss from operations of $1.2 million in the comparable period a year ago. In the comparable second quarters, shipments and tonnage improved 3.7% and 1.4% respectively in the LTL segment.  The Supply Chain Operation recorded revenue of $29.3 million, compared to $30.5 million in the second quarter of 2011. Income from operations increased $0.1 million to $2.4 million and an OR of 91.9% in the second quarter of 2012 compared to income from operations of $2.3 million and OR of 92.3% in the second quarter of 2011.About Vitran Corporation Inc. Vitran Corporation Inc. is a North American group of transportation companies offering less-than-truckload and supply chain services. To find out more about Vitran Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), visit the website at www.vitran.com. The Vitran Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7302This 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, 2012 Dec 31, 2011   (unaudited)   (audited)Assets     Current assets:     Cash and cash equivalents  $ 1,311  $ 1,204 Accounts receivable  90,709 83,479 Inventory, deposits and prepaid expenses 11,614 11,872 Deferred income taxes 172 175   103,806 96,730       Property and equipment 129,967 125,219 Intangible assets 4,575 5,805 Goodwill 14,307 14,314    $ 252,655  $ 242,068Liabilities and Shareholders' Equity     Current liabilities:     Accounts payable and accrued liabilities   $ 87,597  $ 80,818 Income and other taxes payable 662 1,266 Current liabilities of discontinued operations -- 61 Current portion of long-term debt 6,225 6,817   94,484 88,962       Long-term debt 81,799 67,072 Deferred income taxes 1,047 1,061       Shareholders' equity:     Common shares 99,954 99,746 Additional paid-in capital 5,504 5,334 Accumulated deficit (34,893) (24,914) Accumulated other comprehensive income 4,760 4,807   75,325 84,973    $ 252,655  $ 242,068       (Consolidated Statements of Income follows)  Vitran Corporation Inc.Consolidated Statements Of Income (Loss) (Unaudited)  (in thousands of United States dollars except for per share amounts, US GAAP)             Three months ended June 30,Six months ended June 30,  2012201120122011 Revenue $ 213,097 $ 208,881 $ 420,845 $ 394,269 Operating expenses 211,197 205,082 419,038 384,606 Depreciation and amortization expense 4,084 4,040 8,159 8,397   215,281 209,122 427,197 393,003           Income (loss) from operations before undernoted (2,184) (241) (6,352) 1,266           Interest expense, net 1,330 1,311 2,641 2,653           Loss from operations before income taxes (3,514) (1,552) (8,993) (1,387)           Income tax expense 649 745 986 1,134           Net loss (4,163) (2,297) (9,979) (2,521)           Basic and Diluted loss per share $ (0.25) $ (0.14) $ (0.61) $ (0.15)           Weighted average number of shares:         Basic 16,399,241 16,330,041 16,383,175 16,322,748 Diluted 16,399,241 16,330,041 16,383,175 16,322,748           (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,  2012201120122011 Cash provided by (used in):                  Operations:         Net loss $ (4,163) $ (2,297) $ (9,979) $ (2,521) Items not involving cash from operations:         Depreciation and amortization expense 4,084 4,040 8,159 8,397 Deferred income taxes 17 64 (8) 59 Share-based compensation expense 100 119 227 261 Gain on sale of property and equipment (126) (67) (50) (105) Change in non-cash working capital components 3,817 2,270 (797) (3,704) Continuing operations 3,729 4,129 (2,448) 2,387 Discontinued operations (30) (1,342) (61) (526)   3,699 2,787 (2,509) 1,861Investments:         Purchase of property and equipment (5,761) (4,268) (7,543) (6,608) Proceeds on sale of property and equipment 1,026 265 1,567 329 Acquisition of business assets  --  -- -- (1,737)   (4,735) (4,003) (5,976) (8,016)Financing:         Change in revolving credit facility and bank overdraft 1,440 5,438 10,980 14,615 Repayment of long-term debt (489) (3,000) (733) (6,000) Repayment of capital leases (846) (939) (1,787) (1,910) Issue of Common Shares upon exercise of stock options  --  -- 151 80   105 1,499 8,611 6,785           Effect of foreign exchange translation on cash 65 (283) (19) (630)           Increase (decrease) in cash and cash equivalents (866)  -- 107 -- Cash and cash equivalents, beginning of period 2,177  -- 1,204  -- Cash and cash equivalents, end of period $ 1,311 $ -- $1,311 $ --           Change in non-cash working capital components:         Accounts receivable  $ 649 $ (5,057) $ (7,230) $ (21,872) Inventory, deposits and prepaid expenses 1,706 1,791 258 (100) Income and other taxes payable 493 659 (604) 365 Accounts payable and accrued liabilities 969 4,877 6,779 17,903   $ 3,817 $ 2,270 $ (797) $ (3,704)           (additional financial information follows)  Supplementary Segmented Financial Information (in thousands of United States dollars) (Unaudited)     For the quarter ended  June 30, 2012 For the quarter ended June 30, 2011  RevenueInc. from  OperationsOR%  RevenueInc. from  OperationsOR%LTL $ 183,789 $ (3,307) 101.8LTL $ 178,362 $ (1,182) 100.7SCO $ 29,308 $ 2,371 91.9SCO $ 30,519 $ 2,337 92.3     For the six months ended  June 30, 2012 For the six months ended  June 30, 2011  RevenueInc. from  OperationsOR%  RevenueInc. from  OperationsOR%LTL $ 362,376 $ (8,142) 102.2LTL $ 337,351 $ (256) 100.1SCO $ 58,469 $ 4,469 92.4SCO $ 56,918 $ 4,427 92.2  LTL SEGMENT – Statistical Information (Unaudited)   For the quarter ended June 30, 2012       ($U.S.)LTL DivisionQ. over Q. % Change Revenue (000's) $ 183,789 * 4.5%No. of Shipments 1,155,476 3.7%Weight (000's lbs) 1,707,367 1.4%Revenue per shipment $ 159.06  * 0.8%Revenue per CWT $ 10.76  * 3.1%         For the six months ended June 30, 2012       ($U.S.)LTL DivisionY. over Y. % Change Revenue (000's) $ 362,376  * 8.5%No. of Shipments 2,281,627 7.3%Weight (000's lbs) 3,360,058 4.6%Revenue per shipment $ 158.82  * 1.1%Revenue per CWT $ 10.78  * 3.7%       * All % changes have been normalized for the impact of foreign exchange fluctuation, period over periodNon-GAAP Measures            Three months ended June 30,Six months ended June 30,  2012201120122011 Net loss  $ (4,163) $ (2,297) $ (9,979) $ (2,521) Tax recovery from US operations 1,897 1,795 4,046 2,387           Adjusted net loss (2,266) (502) (5,933) (134)           Weighted average shares outstanding:         Basic 16,399,241 16,330,041 16,383,175 16,322,748 Diluted 16,399,241 16,330,041 16,383,175 16,322,748           Adjusted basic and diluted loss per share  (0.14) (0.03) (0.36) (0.01)CONTACT: Richard Gaetz, President/CEO Fayaz Suleman, VP Finance/CFO Vitran Corporation Inc. 416/596-7664