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Press release from CNW Group

Algoma Central Corporation - Operating Results

Tuesday, February 18, 2014

Algoma Central Corporation - Operating Results

16:00 EST Tuesday, February 18, 2014

(In thousand of dollars except per share data)
For the Three Months Ended December 31, 2013 and 2012

ALC-T

ST. CATHARINES, ON, Feb. 18, 2014 /CNW/ - The Corporation is reporting revenues for the 2013 fourth quarter of $148,864 compared to $148,667 for the fourth quarter of 2012.

The segment earnings after income taxes were $21,573 compared to earnings of $27,911 for the fourth quarter in 2012.  Strong demand continued to drive increased earnings for Product Tankers; however, these were more than offset by decreases in earnings for the Domestic Dry-Bulk segment related to the revenue shortfall. Ocean Shipping and Real Estate segments had minor decreases in earnings for the quarter.

The increase in interest expense was due to interest on a tax settlement, which also resulted in an increase in the income tax expense. Interest income for 2013 includes $2,006 of interest on the refunded portion of the income tax instalment and $3,849 on interest received on our recovered international tanker construction deposits.

The net earnings and basic earnings per share were $22,849 and $0.59, respectively, compared to $24,243 and $0.62, respectively, for the same period last year.

For the Twelve Months Ended December 31, 2013 and 2012

The Corporation is reporting 2013 revenues of $491,499 compared to $527,871 for the same period in 2012.  The decrease is mainly attributable to the domestic dry-bulk business for which volumes shipped decreased compared to prior years.  This was only partially offset by strong volumes for domestic tankers and by improved ocean shipping results tied to dry-docking schedules.

Segment earnings after income taxes were $46,146 in 2013 compared to $59,807 for 2012.  Revenue decreases in Domestic Dry-Bulk and Real Estate drove operating income lower for those segments, which was only partially offset by improved earnings from Product Tankers.  Earnings of the Ocean Shipping segment remained approximately the same.

Net earnings and basic earnings per share were $41,923 and $1.08, respectively, compared to $42,156 and $1.08, respectively, for the same period last year.  Lower segment earnings were largely offset by reduced foreign exchange losses and an increase in interest income.  Net earnings for 2013 include a foreign exchange translation gain of $5,587 compared to a loss of $3,901 for the same period in 2012. The increase in interest income is due primarily to interest received on the recovery of vessel deposits and interest on refunded income tax installments.

The results from operations are as follows:

        Three Months Ended   Twelve Months Ended
        December 31   December 31
        2013   2012   2013   2012
                             
Revenues                          
  Domestic Dry-Bulk     $ 102,610   $ 112,390   $ 323,023   $ 375,554
  Product Tankers       29,188     22,322     100,635     87,164
  Ocean Shipping       9,760     6,690     39,513     35,966
  Real Estate       7,307     7,264     28,328     29,187
                             
        $ 148,865   $ 148,666   $ 491,499   $ 527,871
Operating earnings net of income tax                          
  Domestic Dry-Bulk     $ 14,563   $ 21,519   $ 14,909   $ 32,424
  Product Tankers       3,119     2,024     13,694     9,270
  Ocean Shipping       3,421     3,552     15,335     14,999
  Real Estate       470     816     2,208     3,114
                             
          21,573     27,911     46,146     59,807
Not specifically identifiable to segments                          
  Net loss on translation of foreign-denominated                          
    monetary assets and liabilities       3,243     813     5,587     (3,901)
  Interest expense ,net       (5,630)     (3,274)     (12,434)     (12,947)
  Interest income       7,105     407     7,105     407
  Income tax (expense) recovery       (3,442)     (1,614)     (4,481)     (1,210)
                             
        $ 22,849   $ 24,243   $ 41,923   $ 42,156
                             
Basic earnings per common share     $ 0.59   $ 0.62   $ 1.08   $ 1.08

Conference Call

Algoma will hold a conference call on Wednesday, February 19, 2014 at 11:00 am EST to discuss the results for the three and twelve months ended December 31, 2013.

This call will be webcast live at: http://www.newswire.ca/en/webcast/detail/1303167/1437953, following which it will be available in archived format.

About Algoma Central Corporation

Algoma Central Corporation owns and operates the largest Canadian flag fleet of dry and liquid bulk carriers operating on the Great Lakes - St. Lawrence Waterway, including 18 self-unloading dry-bulk carriers, six gearless dry bulk carriers and seven product tankers. Algoma also has interests in ocean dry-bulk and product tanker vessels operating in international markets. Algoma owns a diversified ship repair and steel fabricating facility active in the Great Lakes and St. Lawrence regions of Canada. In addition, Algoma owns and manages commercial real estate properties in Sault Ste. Marie, St. Catharines and Waterloo, Ontario.

Cautionary Statements

This press release may include forward-looking information within the meaning of applicable securities laws including information concerning the business and future results of Algoma. Forward-looking statements in this press release include statements about the purchase of vessels by Algoma. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by this information. The statements in this press release are made as of the date of this release and are based on current expectations. Algoma undertakes no obligation to update forward-looking information, other than as required by law, or to comment on analyses, expectations, or statements made by third-parties in respect of Algoma, its financial or operating results or its securities. Algoma cautions that all forward-looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward-looking information, and that actual future results could be affected by a number of factors, many of which are beyond Algoma's control, including economic circumstances, technological changes, weather conditions and the material risks and uncertainties identified by Algoma and discussed on pages 13 to 17 of Algoma's Annual Information Form for the year ended December 31, 2013, which is available on SEDAR at www.sedar.com.

 

SOURCE Algoma Central Corporation

For further information:

Greg D. Wight, FCPA, FCA
President and Chief Executive Officer
905-687-7850

Peter D. Winkley, CPA, CA
Vice President, Finance and Chief Financial Officer
905-687-7897

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