TransForce Reports Strong First Quarter Growth and Distribution Increase
- Increased quarterly revenues 37% to $438.2 million
- Increased EBITDA by 43% to $50.2 million
- Increased cash flow by 48% to $41.0 million
- Completed three oilfield services acquisitions
Montreal, April 26, 2006 — TransForce Income Fund (TSX: TIF.UN), the leader in the Canadian
transportation and logistics industry, today announced strong results in all key measures for the
three months ended March 31, 2006.
TransForce increased total revenues to $438.2 million, in the first quarter of 2006, which is 36.6%
higher than the $320.8 million, reported a year earlier.
EBITDA (Earnings before interest, taxes, depreciation and amortization and equivalent to operating
income on TransForce’s financial statements) was $50.2 million for the first quarter, compared with
$35.1 million in the same period of 2005. Cash flow from operating activities for the latest quarter
was $41.0 million, up from $27.8 million a year earlier.
Total distributable cash for the first quarter was $33.2 million, compared with $26.6 million a year
ago. This includes net capital expenditures of $4.6 million for the first quarter of 2006 and $0.6
million for the same quarter of 2005. The Fund’s payout ratio, or cash distributed as a percent of
cash earned, was 87.8% in the quarter ended March 31, 2006.
In the first quarter, TransForce completed the acquisitions of three oilfield services transportation
companies: Kos Corp. Oilfield Transportation Ltd. of Drayton Valley, Alberta; Streeper Contracting of
Fort Nelson, B.C; and Hemphill Trucking, Inc. of Rock Springs, Wyoming.
In addition, in February, 2006, TransForce completed a public offering of 8.25 million fund units for
net proceeds of $143.8 million.
“TransForce performed very well in the first three months of 2006, although the seasonality of our
business means that, traditionally, the first quarter is the weakest. We believe this is encouraging
for the balance of the year,” said Alain Bédard, Chairman of the Board, President and CEO of
TransForce Income Fund. “As well as achieving strong financial performance, our acquisitions were
significant strategic steps in increasing our capacity in oilfield services and enhancing our
unitholders’ participation in the robust energy sector. Our equity offering further strengthened our
financial position providing us with increased flexibility to invest in existing operations or pursue
The TransForce Board of Trustees has increased the regular monthly distribution from $0.125 per
unit to $0.1275 per unit, effective with the distribution payable on June 15, 2006 to unitholders of
record on May 31, 2006. This is the eighth distribution increase since TransForce’s conversion to a
trust in September, 2002, and raises the regular annual distribution rate from $1.50 to $1.53 per unit.
Management Conference Call
TransForce will host a conference call for investors to discuss the first quarter results on Thursday
April 27, 2006 at 9:00 am. Alain Bédard, Chairman, President and Chief Executive Officer, and
Salvatore Vitale Chief Financial Officer will review the quarter ended March 31, 2006.
To participate in the teleconference, investors are invited to call 1-800-721-7178. A recording of the
call will be available until midnight on May 4, 2006 by dialing 416-626-4100 or 1-800-558-5253
and entering reservation number 212 907 51.
The attached financial statements for the quarters ended March 31, 2005 and 2006 are an integral
part of this news release.
For further details, please see the Financial Statements below. The Financial Statements and
Management's Discussion and Analysis can also be found on Sedar at http://www.sedar.com/ and
on the Fund’s website http://www.transforcecompany.com/.