- Revenues increase 3% to $466 million
- EBITDA increases 14% to $50.7 million
- EPS before a $16.3 million non-cash gain increase from $0.04 to $0.11
Montreal, April 23, 2010 –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, 2010. The Company improved its performance on all measures including
revenues, EBITDA and cash flow.
“These improved results directly reflect our disciplined efforts to contain costs and increase
efficiencies,” said Alain Bédard, Chairman, President and Chief Executive Officer of TransForce Inc.
“EBITDA is up 14% over the same period last year while cash flow is up 30%. Over the past several
months, we’ve made significant adjustments to address the pressures of the current economic
environment and these moves are clearly benefitting the Company and our shareholders.”
The first quarter includes a $16.3 million non-cash gain associated with the Matrec subsidiary’s
acquisition of the remaining interest in the Lafleche Environmental Complex. Also there was an
improvement in operating performance. This resulted in net income of $26.6 million compared with
$3.1 million a year ago and earnings per share this quarter of $0.28 versus $0.04 for the same
period last year.
First Quarter Results
For the three months ended March 31, 2010, TransForce reported total revenues of $466.1 million,
a 3% increase over $452.4 million for the same period of 2009. Revenue excluding fuel surcharge
increased 2% to $429.2 million compared with $422.2 million in the first quarter of 2009. Before
the acquisition of ATS, total revenues has a 3% decrease.
TransForce’s operating expenses increased in line with higher revenue; however, during the quarter
TransForce continued to reduce its fixed costs and general and administrative expenses.
In the first quarter, EBITDA (earnings before interest, taxes, depreciation and amortization and
equivalent to operating income on TransForce’s financial statements) increased 14% to $50.7
million from $44.5 million in the same quarter of 2009. EBITDA as a percentage of revenue was
10.9% in the quarter, up from 9.8% for the same period in 2009. Interest expense decreased to
$8.4 million from $9.9 million a year earlier as a result of lower interest rates along with the
Company’s continued efforts to reduce debt.
TransForce generated income before income taxes of $31.2 million in the first quarter (which
included the non-cash gain on business re-evaluation) compared with $4.3 million in the same
quarter of 2009. Net income in the quarter was $26.6 million, or $0.28 per share, compared with
$3.1 million, or $0.04 per share, in the same quarter of 2009. Cash flow from operations increased
30% to $43.5 million in the first quarter from $33.3 million a year ago.
TransForce paid out a dividend of $0.10 per share during the quarter.
“We are encouraged by the results for the first quarter, particularly since seasonality means the first
three months of the year are normally the weakest. While we saw some signs of economic
improvement in the first quarter, most of the improvement was due to the actions we have taken.
We do not expect to see a sustained recovery or increased volumes for our industry until later in
2010, ” said Mr. Bedard. “Therefore, we will keep a close eye on our customers and carefully
manage our costs in line with their activity to ensure we continue to be very well positioned to
leverage revenue gains into higher EBITDA, cash flow and earnings.”
Completed Acquisition of Lafleche Environmental Complex
In March, TransForce announced it had acquired the 50% of Laflèche Environmental Inc.’s landfill
and environmental complex not already owned by Matrec, its waste management subsidiary. The
Company first invested in the Eastern Ontario facility in 2005, when Matrec was acquired, then
subsequently increased its ownership to 50% in 2008. In addition to its valuable landfill operations,
the Lafleche complex provides a range of environmental services including recycling, composting,
soil treatment and waste water treatment, all aimed at diverting waste from landfill. On April 8,
2010 the Ontario Power Authority (OPA) awarded a contract to Laflèche and its partner IGRS for the
production of 4.5 Mw of green power (electricity) from the methane produced by the landfill.
Licensed landfill sites are increasingly rare in Ontario and the Lafleche complex is working to
minimize the materials sent to landfill.
First Quarter Management Conference Call
TransForce’s Chairman, President and Chief Executive Officer Alain Bédard, will host a conference
call for investors to discuss the results of the first quarter on Monday, April 26 , 2010, at 9:00 a.m.
To participate in the conference call, investors are invited to call 1-800-768-2878. A recording of
the call will be available until midnight May 3, 2010, by dialing 1-800-558-5253 or 416-626-4100
and entering passcode 21466040.
The financial statements for the periods ended March 31, 2010 and 2009 included below are an
integral part of this news release.