Press release from PR Newswire
Trimac Announces its First Quarter Results
Wednesday, May 01, 2013
Trimac Announces its First Quarter Results11:41 EDT Wednesday, May 01, 2013
Highlights for the first quarter:
- Revenue for the quarter before fuel surcharges increased 28.8% to $93.1 million from $72.3 million
- EBITDA for the quarter increased 32.9% from $8.2 million to $10.9 million
- Earnings per share for the quarter increased 37.5% to $0.11 from $0.08
- Trimac's corporate office will be relocating effective May 13th, 2013
- Trimac converted its 6.4 million Class B shares to 7.1 million Class A shares
- Three of Trimac's professional drivers have been appointed to the Road Knight Teams for Alberta and Ontario
- Awarded the 2012 NTTC Competitive Safety Grand Award - high mileage category
CALGARY, May 1, 2013 /PRNewswire/ - Trimac Transportation Ltd. (TSX symbol TMA) ("Trimac" or the "Company"), Canada's leader in bulk trucking, announces the release of its financial results for the first quarter ended March 31, 2013 ("current quarter").
Total revenue increased $22.3 million (or 26.7%) to $105.9 million from the $83.6 million reported for the three months ended March 31, 2012 ("prior quarter"). Revenue excluding fuel surcharges improved by 28.8% to $93.1 million. Increases were experienced primarily in the bulk trucking segment where incremental revenue from our prior year acquisitions contributed $17.2 million to the increase and growth from new business contributed $3.4 million of additional revenue. The Bulk Plus Logistics segment also experienced increased revenue in its transload and freight management operations of $0.7 million. These improvements were partially offset by a $0.5 million decrease in the National Tank Services segment's third party revenue.
EBITDA (earnings before interest, taxes, depreciation and amortization) for the current quarter increased 32.9% to $10.9 million compared to $8.2 million in the prior quarter. Increases were in the bulk trucking segment due to prior year acquisitions and in the Bulk Plus Logistics segment due to the increased revenue.
We are pleased to announce that Trimac will be relocating its corporate office, including its shared services organization Trimac Management Services Limited Partnership, out of the downtown core to northeast Calgary effective May 13, 2013. The newly renovated facilities located at 3215-12 Street NE, Calgary, Alberta will house over 175 Trimac employees. "It's an exciting time for us at Trimac," commented Edward V. Malysa, President and Chief Operating Officer of Trimac. "Our move out of the downtown is an important strategic initiative to ensure our operating costs are competitive for the long-term."
We are also very pleased to announce that Trimac has been successful in having three of its professional drivers (two in Ontario and one in Alberta) appointed to the 2013/2014 Road Knight Teams for Ontario and Alberta. The Road Knight Team is made up of professional drivers who are committed to promoting safety and awareness on the highways travelled by the trucking industry as well as the public. These ambassadors also promote the transportation industry as a great industry to work in. "We congratulate these individuals in this prestigious role and applaud their impeccable safety record and passion for the industry. It is the commitment of our professional drivers and all of our support staff that makes Trimac what it is today," commented Mr. Malysa.
We are also delighted to be awarded the 2012 National Tank Truck Carriers Competitive Safety Grand Award in the high mileage category for our outstanding safety performance. "Safety is our core value, and winning this prestigious award is another example of the invaluable contributions and diligent efforts made by our professional drivers and support staff. Thank you Trimac employees!" commented Jeffrey J. McCaig, Chief Executive Office of Trimac.
Although there was a slow start to many areas in our business due to severe weather conditions, things are starting to ramp up and we are preparing for continued growth in revenue and earnings during 2013. Trimac will continue to deliver reliable service through cost effective business solutions with a focus on safety.
|Three months ended March 31|
|(in millions of dollars except per share data)||2013||2012||Variance|
|Revenue before fuel surcharges||93.1||72.3||28.8%|
|Fuel surcharges (1)||(12.8)||(11.3)||-13.3%|
|Percent of revenue||72.7%||72.6%|
|Selling and administration||14.5||11.6||25.0%|
|Percent of revenue||15.6%||16.0%|
|Adjusted net income||3.3||2.1||57.1%|
|Revenue before fuel surcharges:|
|Bulk Plus Logistics||5.0||4.3||16.3%|
|National Tank Services||11.4||10.1||12.9%|
|Bulk Plus Logistics||1.1||0.6||83.3%|
|National Tank Services||0.8||1.1||-27.3%|
|Cash generated from operations||11.2||8.3|
|Net property, plant and equipment additions||9.7||8.9|
|Acquisitions & investments||-||19.6|
|Cash generated from operations per share||0.40||0.32|
|Earnings per share (basic)||0.11||0.08|
|Number of outstanding shares (basic)||28.0||26.2|
|(1) Management believes it is useful to net fuel surcharge revenue into direct expenses when analyzing operating results. For Trimac, fuel surcharge revenue is considered an expense recovery.|
Declaration of Quarterly Dividend
The Board of Directors today declared a dividend of $0.07 per share on the Class A shares, payable on July 15, 2013 to shareholders of record at the close of business on June 28, 2013.
Certain information included in this news release constitutes "forward-looking statements". Trimac cautions that, by their nature, these forward-looking statements are based on suppositions, risks, and uncertainties as well as on management's best possible evaluation of future events. Trimac cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Such forward-looking statements are not guarantees of future performance and the actual results or performance of Trimac or the transportation industry may be materially different from the outlook or any future results or performance implied by such statements. Please see "Forward-Looking Statements" in Trimac's MD&A for the three months ended March 31, 2013 for a discussion of the material factors that could cause actual results to differ from the forward-looking information contained herein and the material factors and assumptions that were applied in preparing such forward-looking information.
Trimac is Canada's largest provider of bulk trucking services with operations from coast to coast. In addition, through its National Tank Services division, Trimac performs repairs, maintenance and tank-trailer cleaning services for both the Trimac fleet and for third party commercial customers. Trimac also provides third party transportation logistics services in Canada and the United States through its wholly owned subsidiary Bulk Plus Logistics. Shares of Trimac Transportation Ltd. are traded on the Toronto Stock Exchange under the symbol TMA.
For more detailed information, please visit our website at www.trimac.ca or SEDAR at www.sedar.com and review our MD&A and the condensed consolidated interim financial statements for the Company.
You are invited to join us on a conference call (conference ID number 5955089) at 11:00 a.m. Eastern Time on Thursday, May 2, 2013. For North American participants, please dial 1-800-820-0231 or for international participants, please dial ++1-416-640-5926 at least 10 minutes prior to the start time of the call. An audio playback of the call will be available starting Friday, May 3, 2013 on our website at http://www.trimac.ca/page/eventscalendar.
SOURCE Trimac Transportation Ltd.
For further information: <p> Edward V. Malysa<br/> President & Chief Operating Officer<br/> Trimac Transportation Ltd. <br/> Telephone: 403-298-5100<br/> Facsimile: 403-298-5258 </p> <p> Scott D. Calver <br/> Vice President & Chief Financial Officer<br/> Trimac Transportation Ltd. <br/> Telephone: 403-298-5100<br/> Facsimile: 403-298-5146 </p>