- Increased revenues by 23% to $595.5 million
- Increased EBITDA by 27% to $82.3 million
- Increased pre-tax earnings 31% to $38.4 million
Montreal, October 30, 2008 – TransForce Inc. (“TransForce” or “the Company”) (TSX: TFI - T), the leader in the Canadian transportation and logistics industry, today announced significant growth in its key results for the third quarter of 2008, ended September 30, 2008.
“While industry conditions continued to be weak in the third quarter, TransForce maintained its disciplined growth strategy to increase revenues and its careful operating management to drive significant EBITDA growth,” said Alain Bédard, Chairman, President and Chief Executive Officer of TransForce Inc. “Once again the skills and experience of our people have produced solid results for our shareholders.”
Third Quarter Results
In the quarter, TransForce delivered significant year-over-year increases across key financial
For the three months ended September 30, 2008 the Company increased revenues by 23% to $595.5 million from $486.2 million in the same period of 2007. This increase was partly due to significant acquisitions in the past year that accounted for $45.6 million in additional revenue in the quarter.
TransForce increased third quarter EBITDA by 27% to $82.3 million from $65.1 million a year ago. (EBITDA is earnings before interest, taxes, depreciation and amortization and equivalent to operating income on TransForce’s financial statements). Significant acquisitions contributed $8.1 million of EBITDA in the quarter. The remaining increase is from the Company’s organic operations including cost containment efforts and
The Company’s earnings before income taxes were $38.4 million compared with $29.2 million in the third quarter of 2007. Included in the earnings before income taxes is a $2.0 million loss on interest rate swap contracts. The contracts have allowed the Company to fix the rate of interest on $185 million of variable rate debt at an effective rate of 5.58% at September 30, 2008.
Earnings per share were $0.31 per share compared with $0.33 in the same period of 2007. Earnings per share were affected by TransForce’s conversion from an income trust to a corporation in the second quarter, and the corresponding change to income tax expense.
“With the economy and business environment facing challenges not seen in almost 80 years, many businesses are reviewing their strategies and looking for new efficiencies their operations. TransForce has always focused on a disciplined approach and this is reflected in the strong performance of our businesses under these conditions,” said Mr. Bédard. “In the third quarter, each of our operating segments increased its revenues, which we consider a remarkable achievement in the current environment.
Through the first nine months of 2008, ended September 30, TransForce increased revenues to $1.72 billion from $1.45 billion in the same period of 2007. The Company also increased EBITDA to $206.1 million from $181.9 million in 2007. Excluding non-recurring items, relating to TransForce’s conversion from an income trust to a corporation during the second quarter of 2008, EBITDA increased to $214.8 million in the period. Earnings before income taxes were $80.7 million compared with $78.6 million in the same period of 2007. Before non-recurring items, earnings before income taxes were $89.4 million through the first three quarters of 2008.
Earnings per share were $0.75 per share or $0.87 per share excluding non-recurring items, through the first three quarters of 2008, consistent with earnings per share of $0.88 in the same period of 2007.
“Our businesses continue to deliver results while adjusting to fluctuations in the financial markets, oil prices, exchange rates and various segments of the economy,” said Mr. Bédard. “Through the first three quarters of 2008, four of our five operating segments increased revenues while maintaining their percentage of diversified contributions to TransForce revenues from the prior year. This, among other factors, enabled the Company to recently confirm its 2008 year-end EBITDA guidance of $275 million to $280 million as disclosed on March 27, 2008. While it’s difficult to look forward with any certainty in this environment, the current trend towards a lower Canadian dollar and lower fuel costs should be positive for TransForce.”
Management Conference Call
TransForce will host a conference call for investors to discuss the results of the third quarter later today, October 30, 2008, at 9:00 Eastern Time. Participating from the Company will be Alain Bédard, Chairman, President and Chief Executive Officer, and Salvatore Vitale, Chief Financial Officer.
To participate in the conference call, investors are invited to call 1-800-896-0105 A recording of the call will be available until midnight November 6, 2008, by dialing 1-800-558-5253 or 416-626-4100 and entering
The financial statements for the periods ended September 30, 2008 and 2007 included below are an integral part of this news release.