TransForce Announces Steady First Quarter Growth
- Increased quarterly revenues by 7% to $464.8 million
- Increased EBITDA by 7% to $52.7 million
- Generated $45 million in cash flow from operating activities, an increase of 10% from the same
period in 2006
- Completed previously announced acquisition of Westfreight Systems Inc. and Westfreight
Holdings (U.S.A.) Inc.
MONTREAL, April 24 2007 - TransForce Income Fund (TSX: TIF.UN), the leader in the Canadian
transportation and logistics industry, today announced continued growth in its financial results for
the first quarter ended March 31, 2007.
The Fund increased quarterly revenues by 7% to $464.8 million compared with $433.8 million in
the same period a year earlier. EBITDA (earnings before interest, taxes, depreciation and
amortization and equivalent to operating income on TransForce’s financial statements) was $52.7
million for the quarter, an increase of 7% from the $49.1 million reported for the first quarter of
Cash flow from operating activities, before net change in non-cash working capital balances, was
$45 million in the first quarter, compared with $41 million in the first quarter of 2006.
Although the Fund’s sustaining capital expenditures for 2007 overall are expected to be similar to
2006, they are more heavily weighted towards the first two quarters. In the first quarter of 2007,
net capital expenditures were $13.1 million, compared with $4.6 million a year earlier. As a result,
total distributable cash was $31.1 million compared with $33.2 million a year ago
TransForce increased its regular monthly distributions during the first quarter to $0.1325 per unit.
The Fund’s normal distribution payout ratio, or cash distributed as a percent of cash available for
distribution, was 102.2% for the first quarter of 2007, compared with 87.8% for the same period
“The first quarter is traditionally slower than the balance of the year and I am pleased that we were
able to improve our year-over-year results in key areas in the latest quarter,” said Alain Bédard
Chairman, President and CEO of TransForce Income Fund. We were pleased to be able to increase
our distributions in the quarter and remain confident that the capital investments we are making
now will generate further increased value for our unitholders in the future.”
During the first quarter of 2007, TransForce completed the previously announced acquisition of
Westfreight Systems Inc. and Westfreight Holdings (U.S.A.) Inc.
Westfreight specializes in over-dimensional and heavy haul transportation services as well as being
a less-than-truckload and truckload van and flatbed service provider. With a focus on serving the oil
and gas industry, its primary service lanes are between Alberta and the Texas and Oklahoma
regions. Last year, the Company generated revenues of approximately $47 million.
This acquisition strengthens TransForce’s existing capabilities, offered through UTL Transportation
Services, in the heavy-haul and full-load segment of the energy sector and complements the crossborder
less-than-truckload service provided to the energy sector by Canadian Freightways.
Management Conference Call
TransForce will host a conference call for investors to discuss the results for the first quarter of 2007
on April 25 at 9:30 am Eastern Time. Participating from the Fund will be Alain Bédard, Chairman,
President and Chief Executive Officer, and Salvatore Vitale Chief Financial Officer.
To participate in the teleconference, investors are invited to call 1-877-690-6763. A recording of the
call will be available until midnight May 2, 2007 by dialing
1-800-558-5253 or 416-626-4100 and entering passcode 21336826. Media are invited to
participate in listen-only mode and to use the media contact listed below for further information.
The included financial statements for the quarters ended March 31, 2007 and 2006 and are an
integral part of this news release.