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TransForce Reports Continued Growth In Third Quarter

  • Increased quarterly revenues to $384 million
  • Increased EBITDA by 33% to $53.2 million
  • Increased cash flow by 29% to $45.9 million
  • Announced four acquisitions


Montreal, October 27, 2005 — TransForce Income Fund (TSX: TIF.UN), the leader in the
Canadian transportation and logistics industry, today announced continued strong revenue, EBITDA
and cash flow for the three months and nine months ending September 30, 2005.
TransForce generated total revenues of $384.0 million in the third quarter of 2005, a 37.9%
increase over the $278.4 million in the same quarter of 2004.


EBITDA (Earnings before interest, taxes, depreciation and amortization and equivalent to operating
income on TransForce’s financial statements) was $53.2 million for the third quarter, compared with
$40.1 million in the same period a year earlier. Cash flow from operating activities for the latest
quarter was $45.9 million, up from $35.7 million in the third quarter of 2004.


Normal Distributable cash from ongoing operations for the quarter was $32.5 million, compared
with $28.1 million a year ago. The Fund’s payout ratio, or cash distributed as a percent of cash
earned was 76.9% in the quarter ended September 30, 2005 compared with 67.3% a year earlier.
In addition, TransForce reported special distributable cash earned of $39.8 million resulting from
the sale of its customs brokerage subsidiary M&C International Trade and a freight terminal in
Calgary. Of this, $39.1 million was paid out as a special distribution of new units to unitholders and
as cash to tracking shareholders during the third quarter.


Also in the latest quarter, TransForce announced four acquisitions: Groupe 2 B Inc. is a specialized
truckload and logistics company based in Amos, Quebec; Express Golden Eagle Inc. of Bois-des-
Filion, Quebec is focused on open truckload and international transport, Rebel Transport Ltd. of
Edmonton, Alberta, which specialized in transportation services for the oil and gas industry and
Groupe Fortier Inc. of Pintendre, Quebec, which specializes in less-than-truckload shipments and
international truckload transport.


“TransForce delivered value for unitholders from its existing operations in the third quarter and we
are confident that our growth through carefully selected acquisitions will continue our record of
strong performance,” said Alain Bédard, Chairman of the Board, President and CEO of TransForce
Income Fund. “We were pleased to provide unitholders an increase to the regular distribution
during the quarter as well as a special distribution, enabling them to increase their participation in
the Fund’s attractive but prudent distributions.”


For the nine months ended September 30, 2005, TransForce increased revenues to $1.091 billion
from $781.0 million for the same period in 2004.


EBITDA, equivalent to operating income, for the nine-month period rose to $140.4 million, 42%
higher than the $98.8 million for the same period a year earlier. Cash flow from operating activities
was $123.7 million in the first nine months of 2005, compared with $85.8 million for the same
period in 2004.


Over the first nine months of 2005, TransForce unitholders have received 77% of the Fund’s
distributable cash with the Fund declaring a total of $65.1 million in distributions and dividends.
Increase in Monthly Distributions


During the third quarter, TransForce Income Fund increased its monthly distribution to unitholders
to $0.11 per trust unit, from $0.10625 per trust unit effective with the distribution paid August 15, 2005.


 

Management Conference Call

TransForce will host a conference call for investors to discuss the third quarter results on Thursday
October 27, 2005 at 10:00 am. Chairman, President and Chief Executive Officer Alain Bédard and
Chief Financial Officer Salvatore Vitale will review the quarter ended September 30, 2005.
To participate in the teleconference, please call 1-800-765-7646. A recording of the call will be
available until midnight on November 3, 2005 by dialing 1-800-558-5253 or 416-626-4100 and
entering passcode 2126-5865.


 

Financial Statements

The attached financial statements for the quarters ended September 30, 2004 and 2005 are an
integral part of this news release.