- Increased quarterly revenues 9% to $456.8 million
- Increased EBITDA 12% to $65.8 million
- Paid special distribution following sale of non-core assets
- Completed two acquisitions in Western Canada
MONTREAL, February 26, 2007 - TransForce Income Fund (TSX: TIF.UN), the leader in the Canadian
transportation and logistics industry, today announced continued strong results for the
fourth quarter and new records for the year ended December 31, 2006.
The Fund increased revenues by 9% in the fourth quarter to $456.8 million compared with
$418.8 million a year earlier. EBITDA (earnings before interest, taxes, depreciation and
amortization and equivalent to operating income on TransForce’s financial statements)
was $65.8 million for the quarter, an increase of 12% from the $59.0 million reported for
the fourth quarter of fiscal 2005.
Cash flow from operating activities, before net change in non-cash items, was $55.9
million in the fourth quarter, compared with $56.5 million in the same quarter of 2005.
Regular distributable cash was $34.7 million compared with $32.2 million a year ago, an
8% increase. Based on normal distributions, the Fund’s payout ratio, or cash distributed
as a percent of cash available for distribution, was 90.3% for the 2006 fourth quarter
compared with 84.0% for the same period last year.
The Fund declared a special distribution of 0.0155 additional trust units for each trust unit
outstanding, valued at $0.2069 per unit, following the successful sale by the Fund of the
hazardous waste operations of its subsidiary Services Matrec Inc. The divested operations
were considered non-core by Matrec management and were sold for net cash proceeds of
In the fourth quarter of 2006, TransForce announced the acquisition of Westfreight
Systems Inc., which was completed during the first quarter of 2007. Westfreight is a
specialized over-dimensional and heavy haul transportation service provider with
complementary LTL and TL van and flatbed services serving the oil and gas industry., The
Fund also completed the acquisition of Byers Transportation Service Inc. during the fourth
The Fund’s Income before Dividends on Tracking Share Units increased by 7% to $37.6
million in the fourth quarter of 2006, compared with $35.0 million in the same quarter of 2005.
TransForce’s Board of Trustees has increased the regular monthly distribution from
$0.1275 per unit to $0.1325 per unit, effective with the distribution payable on April 13,
2007 to unitholders of record on March 30, 2007. This raises the regular annual
distribution rate from $1.53 to $1.59 per unit. This represents the ninth increase in
distribution since the inception of the Fund and results in a 39.5% increase in
distributions since that date.
“The fourth quarter of 2006 saw TransForce add to our current capabilities with new
acquisitions, while increasing our focus by divesting a non-core part of our business,” said
TransForce Chairman, President and CEO Alain Bédard. “The increase in revenue for the
fourth quarter of 2006 is primarily the result of significant acquisitions and continued
strong results from existing subsidiaries.”
For the year ended December 31, 2006 TransForce increased revenues to a record $1.8
billion, up 21% from $1.5 billion in 2005. EBITDA for the year was also a record at $241.7
million, a 24% increase from $194.6 million the previous year.
Cash flow from operating activities, before the change in non-cash items, for the full fiscal
year increased by 20% to $208.2 million compared with $174.2 million in 2005.
TransForce increased regular distributable cash for the year by 21% to $150.3 million
from $124.6 million in 2005. TransForce’s 2006 payout ratio, based on regular
distributions, was 81.9% compared with 78.8% for 2005. After special distributions, the
payout ratio was 78.7% for 2006 and 87.9% for the prior year.
Income Before Dividends on Tracking Share Units, from continuing operations for the
twelve-month period ended December 31, 2006 increased by 16% to $131.7.
“TransForce produced strong operating results throughout 2006 and delivered value to
unitholders through $1.5125 per unit in regular distributions and $0.2069 per unit in
special distributions for a total of $1.7194 per unit,” said Mr. Bédard.