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Press release from CNW Group

TransForce Announces 2012 Third Quarter Results

Wednesday, October 24, 2012

TransForce Announces 2012 Third Quarter Results07:00 EDT Wednesday, October 24, 2012Total revenue of $761.7 million, up from $743.0 million last year EBIT of $66.9 million, or 8.8% of total revenue, versus $57.0 million, or 7.7% of total revenue last yearStrong 31% increase in adjusted net income to $43.5 million, or $0.43 per shareFree cash flow of $79.5 million, or $0.84 per share $42.0 million repurchase of common shares and $22.8 million decrease in long-term debt driven by solid cash flow generationMONTREAL, Oct. 24, 2012 /CNW Telbec/ - TransForce Inc. (TSX: TFI), a North American leader in the transportation and logistics industry, today announced its results for the third quarter and nine months ended September 30, 2012."Once again, TransForce performed strongly in a challenging market environment. While total revenue grew 3%, our key EBIT metric rose more than 17% year-over-year, as our focus on optimizing operating efficiency and asset utilization continued to generate superior results for our shareholders. Package and Courier, Less-Than-Truckload ("LTL") and Truckload ("TL") operations reported further profitability gains driven by our constant focus on maximizing return on assets, while business in the energy sector slowed due to lower industry-wide activity. Strong free cash flow generation also allowed TransForce to repurchase common shares and reimburse long-term debt," said Alain Bédard, Chairman, President and Chief Executive Officer of TransForce.      Financial highlightsQuarters ended Sept. 30, Nine months ended Sept. 30,(in millions of dollars, except per share data)20122011 20122011Total revenue761.7743.0 2,361.91,955.0Revenue excluding fuel surcharge683.0667.2 2,115.91,757.7Income from operating activities (EBIT1)66.957.0 183.0130.7Free cash flow279.592.3 175.9128.4Adjusted net income343.533.3 106.068.6 Per share - diluted ($)0.430.34 1.070.71Net income53.819.3 118.160.5 Per share - diluted ($)0.530.20 1.180.63Weighted average shares outstanding ('000s)94,62295,449 95,28595,3771Earnings before finance income and costs and income taxes.2Net cash from operating activities less additions to property and equipment plus proceeds from sale of property and equipment.3Excluding the after-tax effect of changes in the fair value of derivatives,net foreign exchange gain or loss, and items that are not in the Company's normal business.THIRD-QUARTER RESULTSTotal revenue reached $761.7 million, up from $743.0 million a year ago. Third-quarter EBIT rose 17% to $66.9 million, or 8.8% of total revenue, up from $57.0 million, or 7.7% of total revenue in the corresponding period a year earlier. Approximately half of the year-over-year monetary increase in EBIT stems from successful measures to optimize operations, while the other half is attributable to acquisitions.Net income for the period increased 178% to $53.8 million, or $0.53 per share, fully diluted, up from $19.3 million, or $0.20 per share, fully diluted, in the third quarter of 2011. Adjusted net income, which excludes the after-tax effect of changes in the fair value of derivatives, net foreign exchange gain or loss, and items that are not in the Company's normal business, rose 31% to $43.5 million, or $0.43 per share, fully diluted,versus $33.3 million, or $0.34 per share, fully diluted, last year.NINE-MONTH RESULTSFor the nine-month period ended September 30, 2012, total revenue reached $2.4 billion, up 21% from $2.0 billion for the same period a year earlier. EBIT rose 40% to $183.0 million, or 7.7% of total revenue, up from $130.7 million, or 6.7% of total revenue, last year. Net income for the period amounted to $118.1 million, or $1.18 per share, fully diluted, up 95% from $60.5 million, or $0.63 per share, fully diluted, for the first nine months of 2011. Adjusted net income was $106.0 million, or $1.07 per share, fully diluted, versus from$68.6 million, or $0.71 per share, fully diluted, a year earlier.SEGMENTED RESULTS       (in millions of dollars)Quarters ended Sept. 30,  Nine months ended Sept. 30,  2012  2011  2012 2011  $ $  $ $ Total revenue          Package and Courier287.2 295.6  867.1 669.6  Less-Than-Truckload159.6 137.7  489.9 382.4  Truckload147.7 155.2  458.3 470.3  Specialized Services - Energy99.1 80.4  329.2 229.6  Specialized Services - Others84.5 86.8  259.5 244.2  Eliminations(16.4) (12.8)  (42.2) (41.1) Total761.7 743.0  2,361.9 1,955.1            $% of Rev.$% of Rev. $% of Rev.$% of Rev.Income from operating activities (EBIT)          Package and Courier17. Less-Than-Truckload10. 26.05.311.93.1 Truckload14.910.112.58.0 38.08.329.66.3 Specialized Services - Energy12.612.710.813.4 40.712.423.510.2 Specialized Services - Others14.817.513.115.1 38.214.733.813.9 Corporate(3.5) (3.3)  (11.9) (8.9) Total66.98.857.07.7 183.07.7130.76.7Note: due to rounding, totals may differ slightly from the sum of individual segmented revenue or EBIT.STRONG CASH FLOW ALLOWS SHARE REPURCHASE AND DEBT REIMBURSEMENTNet cash from operating activities reached $89.6 million in the third quarter of 2012, while free cash flow for the period amounted to $79.5 million, or $0.84 per share. TransForce used this robust cash flow to repurchase $42.0 million in common shares under its normal course issuer bid program and to reimburse its long-term debt, which decreased by $22.8 million during the quarter. Going forward, TransForce will continue to use its solid cash flow to partially finance its disciplined acquisition strategy, further reimburse long-term debt and remain active on its normal course issuer bid program.OUTLOOK"As the North American economy remains hesitant, TransForce will maintain its relentless focus on maximizing return on assets. This guiding principle will also dictate our approach to capital utilization, including the execution of our selective acquisition strategy. Internally, our priority on cost control and asset optimization should lead to further efficiency gains and additional strong cash flow generation. Above all, by leveraging its enhanced density and by providing innovative, value-added solutions to its growing North American customer base, TransForce will be a consistent source of value creation for shareholders," concluded Mr. Bédard.CONFERENCE CALLTransForce will hold a conference call for analysts and portfolio managers on Wednesday, October 24, 2012 at 9:00 a.m. Eastern Time, to discuss these results. Business media are also invited to listen to the call. Interested parties can join the call by dialling 1-888-231-8191. A recording of the call will be available until midnight, October 31, 2012, by dialling 1-855-859-2056 or 416-849-0833 and entering passcode 34726664.ABOUT TRANSFORCETransForce Inc. is a North American leader in the transportation and logistics industry. Operating across Canada and the United States, TransForce creates value for shareholders by identifying strategic acquisitions and managing a growing network of wholly-owned, operating subsidiaries. Under the TransForce umbrella, companies benefit from corporate financial and operational resources to build their businesses and increase their efficiency. TransForce companies service the following segments:Package and Courier; Less-Than-Truckload; Truckload, which includes specialized truckload and dedicated services;Specialized Services, which includes services to the energy sector, waste management, logistics and ancillary transportation services.TransForce Inc. (TFI) is publicly traded on the Toronto Stock Exchange (TSX). For more information, visit STATEMENTSExcept for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of TransForce. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for TransForce's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.NON-IFRS MEASURESEBIT, adjusted net income and free cash flow are financial measures not prescribed by IFRS and are not likely to be comparable to similar measures presented by other issuers. Management considers these to be useful information to assist investors in evaluating the Company's profitability, liquidity and ability to generate funds to finance its operations.Note to readers:Consolidated financial statements and Management's Discussion & Analysis are available on TransForce's website at  SOURCE: TRANSFORCE INC.For further information: Investors: Alain Bédard Chairman, President and CEO TransForce Inc. (514) 331-4200 Media: Rick Leckner MaisonBrison Communications (514) 731-0000