Press releases 2006
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TransForce Delivers Further Growth with Higher Revenues and Cash Flow in Second Quarter

  • Increased quarterly revenue 19.1% to $460.3 million
  • Increased EBITDA 21.2% to $63.2 million
  • Opened new $22 million Canpar Distribution Hub


Montreal, July 24, 2006 — TransForce Income Fund (TSX: TIF.UN), the leader in the Canadian
transportation and logistics industry, today announced significant increases in revenues, EBITDA,
and cash flow for the second quarter ended June 30, 2006.


TransForce improved revenue to $460.3 million in the second quarter of fiscal 2006 compared with
$386.5 million generated in the same period last year. The fuel surcharge component of total
revenue was $45.9 million compared with $29.6 million a year earlier. Second quarter revenue grew
16.1% excluding fuel surcharge over the same period last year.


EBITDA (Earnings before interest, taxes, depreciation and amortization and equivalent to operating
income on TransForce’s financial statements) was $63.2 million for the quarter, up 21.2% from
$52.1 million for the same period last year. Cash flow from operating activities for the latest quarter
was $53.8 million, compared with $45.2 million in the second quarter of 2005.


Distributable cash from ongoing operations was $57.2 million for the quarter compared to $47.2
million last year. Net capex in the quarter was $15.9 million compared to $10.2 million a year
earlier. Scheduled debt repayment totaled $4.6 million in the quarter compared to $3.7 million last
year. This resulted in distributable cash earned of $36.7 million for the quarter, compared with
$33.2 million a year earlier. Distributions from ongoing operations to unitholders and dividends to
tracking shareholders declared were $30.5 million compared with $22.0 million for the comparable
period last year. The Fund’s payout ratio, or cash distributed as a percent of cash earned, was
84.5% in the fiscal 2006 second quarter compared with 72.0% for the same period in 2005.


“TransForce’s continued strength in revenues, EBITDA and cash flow demonstrates the effectiveness
of our strategy,” said Alain Bédard, Chairman of the Board, President and CEO of TransForce Income
Fund. “Our expansion into Western Canada is proving to be both well-timed and profitable, with
strong performance in that region more than compensating for a softening in the transborder
truckload business in Eastern Canada. TransForce’s other businesses in Eastern Canada remain solid. ”


During the quarter, Canpar opened a new, state-of-the-art distribution hub in Toronto, Ontario.
TransForce invested $22 million in the hub, which uses the most advanced technology in North
America to improve the efficiency of Canpar’s operations, increasing both competitiveness and
profitability. The new 170,000 square-foot facility has been named the John Cyopeck Centre in
honour of Canpar’s long-time President and CEO, who was the visionary behind the facility and who
passed away earlier this year. Canpar is the largest Canadian-owned parcel delivery company.


“The technological capabilities of the hub will provide direct benefits to Canpar’s customers,
maximizing flow-through, enhancing security, and increasing efficiency, “said Alain Bédard,
Chairman of the Board, President and CEO of TransForce Income Fund. “The majority of Canpar’s
volume of pickups and deliveries passes through Toronto, ensuring that our investment in this
strategic location will have a substantial positive effect on the business.”


Subsequent to the end of the quarter, TransForce announced the acquisition of Byers Transportation
System, a less-than-truckload carrier based in Western Canada. Byers will add approximately $70
million in annual revenue to TransForce, and serves more than 1,500 communities in Alberta,
British Columbia, Northwest Territories and the Yukon, with has partner connections to the United States.


For the year-to-date, TransForce generated revenue of $898.6 million, compared with $707.3
million for the first six months of 2005. The fuel surcharge component of revenue for the six months
ended June 30 was $84.5 million, compared with $52.4 million for a year earlier. Year-to-date
revenue grew 24.3% excluding fuel surcharge over the same period last year.


EBITDA, equivalent to operating income, was $113.3 million for the first half of 2006, an increase of
29.9% compared with EBITDA of $87.3 million for the same period last year. Cash flow from
operating activities was $94.9 million in the first six months of 2006, compared with $73.0 million
for the same period in 2005.


Over the first six months of 2006, distributable cash from ongoing operations was $100.1 million
compared to $77.7 million last year. Net capex in the period was $20.6 million compared to $10.8
million a year earlier. Scheduled debt repayment totaled $9.5 million in the period compared to
$7.1 million last year. This resulted in distributable cash earned of $70.0 million for the period,
compared with $59.8 million a year earlier TransForce unitholders have received 86.1% of the
Fund’s distributable cash from ongoing operations with the Fund declaring a total of $59.0 million in
distributions and dividends. This compares with 77.3% and $42.4 million respectively a year earlier.


 

Management Conference Call

TransForce will host a conference call for investors to discuss the second quarter and six months
results on July 25 at 9 am e.s.t. Alain Bédard, Chairman, President and Chief Executive Officer Alain
Bédard and Chief Financial Officer Salvatore Vitale will review the quarter ended June 30, 2006.
To participate in the teleconference, investors are invited to call 1-888-489-9492. A recording of the
call will be available until midnight on August 1, 2006 by dialing 1-800-558-5253 or 416-626-4100
and entering passcode 2130-0047.

 

 

Financial Statements

The attached financial statements for the quarters ended June 30, 2005 and 2006 are an integral
part of this news release.