- Increased revenues 25% to $424.8 million
- Increased EBITDA by 42% to $60.2 million
- Increased cash flow by 46% to $56.5 million
- Completed four acquisitions
- Announces increase to regular distribution
Montreal, February 10, 2006 — TransForce Income Fund (TSX: TIF.UN), the leader in the
Canadian transportation and logistics industry, today announced record results for the fourth
quarter and year ended December 31, 2005.
TransForce delivered a 25% increase in fourth quarter revenues of $424.8 million compared with
$339.2 million a year earlier. EBITDA (earnings before interest, taxes, depreciation and amortization
and equivalent to operating income on TransForce’s financial statements) was $60.2 million for the
quarter, an increase of nearly 42% from the $42.5 million reported for the fourth quarter of fiscal 2004,
Cash flow from operating activities for the fourth quarter was $56.5 million, a 46% increase over
the $38.7 million generated in the year-earlier quarter.
Total distributable cash from ongoing operations was $32.2 million compared with $26.4 million a
year ago. Based on normal distributions, the Fund’s payout ratio, or cash distributed as a percent of
cash earned, was 84.0% for the 2005 fourth quarter compared with 78.6% for the same period last year.
The Fund’s Income Before Dividends on Tracking Share Units increased by 48% to $35.9 million in
the fourth quarter of 2005, compared with $24.2 million in the same quarter of 2004 . Fully diluted
earnings per unit increased to $0.47 for the fourth quarter of 2005 compared with $0.34 a year earlier.
“The record results for the fourth quarter continued the strong performance of the rest of the year
and contributed to the best year ever for TransForce and its unitholders,” said TransForce Chairman,
President and CEO Alain Bédard. “Acquisitions made during the year contributed significantly to the
improved results. This was supplemented by continuing operating improvements at existing subsidiaries.”
For the year ended December 31, 2005, TransForce increased revenues to $1.5 billion, up 35% from
$1.1 billion in 2004. EBITDA for the year was $200.6 million compared with $141.2 million a year earlier.
Cash flow from operating activities for the full fiscal year increased 44% to $174.2 million compared
with $121.4 million in 2004.
TransForce increased regular distributable cash for the year by 27% to $124.6 million from $98.2
million in 2004. TransForce’s 2005 payout ratio, based on regular distributions, was 78.8%
compared with 77.6% for 2004. After special distributions, the payout ratio was 87.9% for 2005
and 81.3% for the prior year.
Income Before Dividends on Tracking Share Units increased in 2005 to $150.2 million or $2.00 per
unit fully diluted, from $77.7 million or $1.13 per fully diluted in 2004.
“TransForce delivered strong operating results throughout in 2005 and delivered value to
unitholders through $1.2863 per unit in regular distributions as well as $0.65 per unit in special
distributions for a total payout of $1.9363 per unit,” said Mr. Bédard.
Increase in regular distributions
The Fund today announced a further increase in its regular monthly distributions from $0.1175 per
unit to $0.125 per unit payable on March 15, 2006 to unitholders of record on February 28, 2006.
On an annualized basis, this raises TransForce distributions from $1.41 per unit to $1.50 per unit.
TransForce raised its regular monthly distribution twice during 2005, increasing it from $0.1025 to
$0.10625 in the second quarter of the year, and to $0.11 in the third quarter. In the fourth quarter
of the year, the Fund announced another increase in its regular monthly distribution to $0.1175,
beginning with the February 15, 2006 distribution.
“Our record annual financial performance is a result of the strength of our ongoing operations as
well as the contribution from acquisitions which not only added revenue but enhanced our strategic
position. In 2005, we expanded our transborder business, increased our presence in Western
Canada, enhanced our capabilities in specialized trucking, and created a new platform for growth in
waste management,” Mr. Bedard said. “We are very pleased with TransForce’s rapid development
and with our ability to provide unitholders with sustainable, growing distributions.”
During the fourth quarter, TransForce completed the acquisitions of Groupe 2 B Inc, Rebel Transport
Ltd., Express Golden Eagle Inc. and Le Groupe Fortier, bringing the number of acquisitions for 2005
to 13. Subsequent to the year end, TransForce announced the agreement to acquire Kos Corp.
Oilfield Transportation Ltd. These acquisitions were financed mostly through credit facilities.
TransForce intends to keep the financial flexibility required to sustain its ongoing growth and in that
context is reviewing the possibility of a unit offering, if and when deemed appropriate.
Appointment to Board of Trustees
TransForce today also announced that Ronald D. Rogers C.A. has joined the Board of Trustees.
Based in Calgary, Mr. Rogers is also a director and chair of the audit committees of Corus
Entertainment Inc., Pizza Pizza Royalty Income Fund, and The Brick Furniture Company. Previously,
he was Senior Vice President and Chief Financial Officer of Shaw Communications Inc. He has also
held senior financial and operating positions with Moore Corporation, the Crown Management Board
of Saskatchewan and Warrington Inc. Mr. Rogers joins the Board after the retirement of Bernard
Belanger who was a trustee of TransForce and a director of its predecessor companies since 1986.