TransForce Inc. Announces First Quarter Results
- $452.4 million in revenues
- EBITDA of $44.5 million
- EPS of $0.04 per share
Montreal, April 24, 2009 – TransForce Inc. (“TransForce” or “the Company”) (TSX: TFI - T), the
leader in the Canadian transportation and logistics industry, today announced its results for the first
quarter, ended March 31, 2009.
“While our revenues decreased, we have always been focused on efficiency and this has helped to
maintain margins near historical levels. We have taken action to further reduce equipment and
staffing costs in the face of an economic downturn that was deeper and more sudden than
expected. The slowdown affected three of TransForce segments in the first quarter, but Package and
Courier performed well, holding revenues even with a year earlier,” said Alain Bédard, President and
Chief Executive Officer of TransForce Inc. “We are managing through this period and are working to
remain as profitable as possible and to position our businesses to participate fully in the inevitable recovery.”
First Quarter Results
For the three months ended March 31, 2009 revenues were $452.4 million compared with $526.3
million in the same period of 2008, a decrease of 14%. Revenues excluding fuel surcharges were
$422.2 million compared with $469.5 million in the same period of 2008, a decrease of 10%.
EBITDA (earnings before interest, taxes, depreciation and amortization and equivalent to operating
income on TransForce’s financial statements) was $44.5 million in the quarter, compared with
$56.9 million in the first quarter of 2008, when a favourable class-action settlement increased
EBITDA by $4.5 million. Excluding the one-time $4.5 million increase in the first quarter of 2008,
first quarter 2009 EBITDA decreased by 15%. Year over year EBITDA margin remained steady.
Cash flow from operations, before net changes to non-cash working capital balances related to
operations, was $33.0 million compared with $45.7 million in the first quarter of 2008.
TransForce’s earnings before income taxes were $4.3 million compared with $17.4 million in the
first quarter of 2008.
Earnings per share were $0.04 per share compared with $0.22 per share in the same period of 2008.
During the quarter, TransForce paid out a dividend of $0.10 per share.
“Our immediate focus continues to be operating efficiency, increasing productivity, and adjusting to
demand, .Although year-over-year revenues have declined, we have lowered costs in the past
several quarters and I expect that we will see further results from these efforts as 2009
progresses,” said Mr. Bédard. “Debt reduction is a priority, but we will continue to monitor the
marketplace for opportunities to make smaller, tuck-in acquisitions as part of our longer-term strategy.”
Annual and Special Meeting of Shareholders
TransForce reminds investors that it will host its Annual and Special Meeting of Shareholders later
today, Friday, April 24, 2009.
TransForce invites shareholders, analysts and portfolio managers to attend. At the meeting, Alain
Bédard, Chairman, President and Chief Executive Officer of TransForce will discuss the 2008 results
and the outlook for 2009.
Details of Annual and Special Meeting of Shareholders:
Date: Friday, April 24, 2009
Time: 1:30 pm. ET
Location: TSX Gallery, 130 King Street West, Toronto, ON
First Quarter Management Conference Call
TransForce will host a conference call for investors to discuss the results of the first quarter of 2009
on Monday, April 27, 2009, 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 1-800-954-1053. A recording of
the call will be available until 12:00 a.m., May 4, 2009, by dialing 1-800-558-5253 or
416-626-4100 and entering passcode 21422220.
The financial statements for the periods ended March 31, 2009 and 2008 included below are an
integral part of this news release.