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| 8-K - FORM 8-K FILING DOCUMENT - VITRAN CORP INC | document.htm |
EXHIBIT 99.1
Vitran Reports 2010 Year-End and Fourth Quarter Operating Results
| REMINDER: |
| Vitran management will conduct a conference call and webcast today: February 10, at 10:00 a.m. ET, |
| to discuss the Company's 2010 fourth quarter results. |
| Conference call dial-in: 1-888-396-8049 or 416-764-8646 (International) |
| Live Webcast: www.vitran.com (select "Investor Relations") |
TORONTO, Feb. 10, 2011 (GLOBE NEWSWIRE) -- Vitran Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), a North American transportation and supply chain firm, today announced year-end and quarterly financial results for the twelve and three-month periods ended December 31, 2010 (all figures reported in $U.S.).
For the year ended December 31, 2010, Vitran posted consolidated revenue of $673 million a 13% increase compared to $595 million for the 2009 year. Vitran reported a net loss from continuing operations of $38.1 million and a $2.34 loss per diluted share for the year ended 2010. These results include a non-cash tax valuation allowance in continuing operations of $38.9 million included in deferred tax expense for the year. Excluding the impact of the tax valuation allowance, earnings from continuing operations were $0.05 per diluted share for 2010 compared to a loss from continuing operations of $0.32 per diluted share for 2009.
For the 2010 fourth quarter, Vitran reported consolidated revenue improvement of 10% to $172 million compared to $156 million in the 2009 fourth quarter. Including the aforementioned non-cash deferred tax valuation allowance, net loss from continuing operations for the quarter was $40.2 million and a $2.47 loss per diluted share. Excluding the impact of the tax valuation allowance, loss from continuing operations was $0.08 per diluted share for the 2010 fourth quarter compared to a loss from continuing operations of $0.15 per diluted share for the 2009 fourth quarter.
During the fourth quarter of 2010, the Company sold the majority of the assets of its Truckload segment. The proceeds and net working capital from the sale were approximately $5.0 million.
"The 2010 fourth quarter and year was a period of significant milestones. We divested ourselves of our non-core truckload operation, while retaining 20% of the newest trailing fleet to be redeployed in our core LTL operation. Our continuing operations returned Vitran to profitability for the year and our supply chain segment posted record revenue and income from operations. On a consolidated basis, we reduced our debt to a five year low, dropped our leverage ratio back to 2007 levels and earned another 50 basis point reduction in our interest rate spreads," stated President and Chief Executive Officer Rick Gaetz.
"Although the fourth quarter was not as good as we had planned financially, our LTL daily shipment count and daily tonnage in the quarter exceeded the 2009 fourth quarter. Pricing in our U.S. LTL business unit continued its positive trend improving from the third quarter of 2010. These positives were offset by higher than expected insurance-related expenses and purchased transportation costs."
"Lastly we continue to advance the previously announced Milan LTL acquisition and still anticipate closing the transaction on February 19, 2011. With this added density in our existing region and expanded territory in the southern states that this transaction brings, coupled with our pre-existing pricing and activity momentum, we believe Vitran is well positioned to take advantage of the improving economic environment in 2011," concluded Mr. Gaetz.
Segmented Results
The LTL (less-than-truckload) segment posted a loss from operations for the 2010 fourth quarter of $1.7 million, with an OR (operating ratio) of 101.1% compared to a loss from operations of $2.6 million and an OR of 101.9% in the comparable period a year ago. In the comparable fourth quarters, shipments and tonnage increased 4.8% and 1.4%, respectively, in the LTL segment. The Supply Chain Operation segment for the 2010 fourth quarter posted an increase in revenue of 23% to $26.5 million, an 11% improvement in income from operations to $2.1 million and a 91.9% OR.
About Vitran Corporation Inc.
Vitran Corporation Inc. is a North American group of transportation companies offering less-than-truckload and supply chain services. To find out more about Vitran Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), visit the website at www.vitran.com.
The Vitran Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7302
This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Forward-looking statements may be generally identifiable by use of the words "believe", "anticipate", "intend", "estimate", "expect", "project", "may", "plans", "continue", "will", "focus", "should", "endeavor" or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on current expectations and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially from those expressed or implied by such forward-looking statements.
Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Vitran's actual results, performance or achievements to differ materially from those projected in the forward-looking statements. Factors that may cause such differences include, but are not limited to, technological change, increases in fuel costs, regulatory changes, the general health of the economy, seasonal fluctuations, unanticipated changes in railroad capacities, exposure to credit risks, changes in labour relations and competitive factors. More detailed information about these and other factors is included in the annual MD&A on Form 10K under the heading "General Risks and Uncertainties." Many of these factors are beyond the Company's control; therefore, future events may vary substantially from what the Company currently foresees. You should not place undue reliance on such forward-looking statements. Vitran Corporation Inc. does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
(tables follow)
| Vitran Corporation Inc. | ||
| Consolidated Balance Sheets | ||
| (in thousands of United States dollars, US GAAP) | ||
| Dec 31, 2010 | Dec 31, 2009 | |
| (audited) | (audited) | |
| Assets | ||
| Current assets: | ||
| Accounts receivable | $ 72,212 | $ 65,393 |
| Inventory, deposits and prepaid expenses | 9,761 | 11,086 |
| Income and other taxes receivable | -- | 683 |
| Current assets of discontinued operations | 1,683 | 4,651 |
| Deferred income taxes | 110 | 3,495 |
| 83,766 | 85,308 | |
| Property and equipment | 138,847 | 143,606 |
| Intangible assets | 8,268 | 10,766 |
| Goodwill | 14,453 | 14,113 |
| Long-term assets of discontinued operations | -- | 5,072 |
| Deferred income taxes | -- | 35,473 |
| $ 245,334 | $ 294,338 | |
| Liabilities and Shareholders' Equity | ||
| Current liabilities: | ||
| Bank overdraft | $ 3,906 | $ 105 |
| Accounts payable and accrued liabilities | 68,955 | 63,361 |
| Income and other taxes payable | 154 | -- |
| Current liabilities of discontinued operations | 2,410 | 2,085 |
| Current portion of long-term debt | 19,545 | 17,125 |
| 94,970 | 82,676 | |
| Long-term debt | 49,838 | 72,956 |
| Other | 519 | 2,919 |
| Deferred income taxes | 1,160 | -- |
| Shareholders' equity: | ||
| Common shares | 99,658 | 99,584 |
| Additional paid-in capital | 4,838 | 4,264 |
| Retained earnings (deficit) | (10,901) | 29,281 |
| Accumulated other comprehensive income | 5,252 | 2,658 |
| 98,847 | 135,787 | |
| $ 245,334 | $ 294,338 | |
| (Consolidated Statements of Income follows) | ||
| Vitran Corporation Inc. | ||||
| Consolidated Statements Of Income | ||||
| (Unaudited) | ||||
| (in thousands of United States dollars except per share amounts, US GAAP) | ||||
|
Three months ended Dec 31, |
Twelve months ended Dec 31, |
|||
| 2010 | 2009 | 2010 | 2009 | |
| Revenue | $ 171,576 | $ 156,171 | $ 672,556 | $ 595,321 |
| Operating expenses | 168,070 | 153,570 | 647,299 | 577,555 |
| Depreciation and amortization expense | 4,396 | 4,720 | 18,410 | 18,966 |
| 172,466 | 158,290 | 665,709 | 596,521 | |
| Income (loss) from continuing operations before undernoted |
(890) |
(2,119) |
6,847 |
(1,200) |
| Interest expense, net | 1,512 | 2,204 | 7,327 | 9,496 |
| Loss from continuing operations before income taxes | (2,402) | (4,323) | (480) | (10,696) |
| Income (recovery) taxes | 37,806 | (1,843) | 37,569 | (6,089) |
| Net loss from continuing operations | (40,208) | (2,480) | (38,049) | (4,607) |
| Discontinued operations, net of tax | (2,735) | 143 | (2,133) | 635 |
|
Net loss |
(42,943) |
(2,337) |
(40,182) |
(3,972) |
| Basic and Diluted income (loss) per share | ||||
| Net loss from continuing operations | $ (2.47) | $ (0.15) | $ (2.34) | $ (0.32) |
| Discontinued operations | $ (0.17) | $ 0.01 | $ (0.13) | $ 0.04 |
| Net loss | $ (2.63) | $ (0.14) | $ (2.47) | $ (0.28) |
| Weighted average number of shares: | ||||
| Basic | 16,299,643 | 16,266,441 | 16,277,522 | 14,293,747 |
| Diluted | 16,299,643 | 16,349,985 | 16,277,522 | 14,381,147 |
| (Statements of Cash Flows follows) | ||||
| Vitran Corporation Inc. | ||||
| Consolidated Statements Of Cash Flows | ||||
| (Unaudited) | ||||
| (in thousands of United States dollars, US GAAP) | ||||
|
Three months ended Dec 31, |
Twelve months ended Dec 31, |
|||
| 2010 | 2009 | 2010 | 2009 | |
| Cash provided by (used in): | ||||
| Operations: | ||||
| Net loss | $ (42,943) | $ (2,337) | $ (40,182) | $ (3,972) |
| Items not involving cash from operations: | ||||
| Depreciation and amortization expense | 4,396 | 4,720 | 18,410 | 18,966 |
| Deferred income taxes | 37,609 | (2,687) | 37,919 | (6,972) |
| Share-based compensation expense | 144 | 136 | 574 | 739 |
| Loss (gain) on sale of property and equipment | (46) | 154 | (151) | (286) |
| Loss (income) from discontinued operations | 2,735 | (143) | 2,133 | (635) |
| Change in non-cash working capital components | 6,198 | 7,409 | (583) | (1,121) |
| Continuing operations | 8,093 | 7,252 | 18,120 | 6,719 |
| Discontinued operations | 2,359 | 326 | 3,882 | 1,916 |
| 10,452 | 7,578 | 22,002 | 8,635 | |
| Investments: | ||||
| Purchase of property and equipment | (4,539) | (1,052) | (9,287) | (5,007) |
| Proceeds on sale of property and equipment | 535 | 479 | 1,836 | 1,657 |
| Additional payments due to acquisition of subsidiary | -- | (1,000) | -- | (1,000) |
| Proceeds on sale of selected Frontier assets | 3,011 | -- | 3,011 | -- |
| (993) | (1,573) | (4,440) | (4,350) | |
| Financing: | ||||
| Revolving credit facility and bank overdraft | (7,639) | (653) | (1,559) | 948 |
| Proceeds from long-term debt | 3,500 | -- | 3,500 | -- |
| Repayment of long-term debt | (4,036) | (4,092) | (14,480) | (19,396) |
| Repayment of capital leases | (946) | (1,283) | (4,358) | (5,804) |
| Issue of Common Shares upon exercise of stock options | 1 | -- | 74 | 333 |
| Issue of Common Shares in private placement, net | -- | -- | -- | 21,318 |
| Financing costs | -- | -- | -- | (414) |
| (9,120) | (6,028) | (16,823) | (3,015) | |
| Effect of translation adjustment on cash | (339) | 23 | (739) | (1,270) |
| Increase in cash and cash equivalents | -- | -- | -- | -- |
| Cash and cash equivalent position, beginning of period | -- | -- | -- | -- |
| Cash and cash equivalent position, end of period | $ -- | $ -- | $ -- | $ -- |
| Change in non-cash working capital components: | ||||
| Accounts receivable | $ 8,912 | $ 7,694 | $ (6,819) | $ (3,294) |
| Inventory, deposits and prepaid expenses | 1,329 | 354 | 1,325 | 711 |
| Income and other taxes recoverable/payable | 92 | 962 | (683) | 28 |
| Accounts payable and accrued liabilities | (4,135) | (1,601) | 5,594 | 1,434 |
| $ 6,198 | $ 7,409 | $ (583) | $ (1,121) | |
| (additional financial information follows) | ||||
| Supplementary Segmented Financial Information | |||||||
| (in thousands of United States dollars) (Unaudited) | |||||||
|
For the quarter ended Dec 31, 2010 |
For the quarter ended Dec 31, 2009 |
||||||
| Revenue |
Inc. from Operations |
OR% | Revenue |
Inc. from Operations |
OR% | ||
| LTL | $ 145,095 | $ (1,669) | 101.1 | LTL | $ 134,705 | $ (2,618) | 101.9 |
| SCO | $ 26,481 | $ 2,140 | 91.9 | SCO | $ 21,465 | $ 1,927 | 91.0 |
|
For the twelve months ended Dec 31, 2010 |
For the twelve months ended Dec 31, 2009 |
||||||
| Revenue |
Inc. from Operations |
OR% | Revenue |
Inc. from Operations |
OR% | ||
| LTL | $ 581,594 | $ 4,570 | 99.2 | LTL | $ 519,215 | $ (2,648) | 100.5 |
| SCO | $ 90,962 | $ 6,899 | 92.4 | SCO | $ 76,106 | $ 5,480 | 92.8 |
| LTL SEGMENT – Statistical Information | ||
| (Unaudited) | ||
|
For the quarter ended Dec 31, 2010 |
||
| ($U.S.) |
LTL Division |
Q. over Q. % Change |
| Revenue (000's) | $ 145,095 | * 6.2% |
| No. of Shipments | 959,905 | 4.8% |
| Weight (000's lbs) | 1,418,946 | 1.4% |
| Revenue per shipment | $ 151.16 | * 1.3% |
| Revenue per CWT | $ 10.23 | * 4.7% |
|
For the twelve months ended Dec 31, 2010 |
||
| ($U.S.) |
LTL Division |
Q. over Q. % Change |
| Revenue (000's) | $ 581,594 | * 9.1% |
| No. of Shipments | 3,946,952 | 6.5% |
| Weight (000's lbs) | 5,867,822 | 6.8% |
| Revenue per shipment | $ 147.35 | * 2.5% |
| Revenue per CWT | $ 9.91 | * 2.2% |
| * All % changes have been normalized for the impact of foreign exchange fluctuation, period over period |
| Non-GAAP Measures | ||
|
Three months ended Dec 31, |
Twelve months ended Dec 31, |
|
| 2010 | 2010 | |
| Net loss from continuing operations | $ (40,208) | $ (38,049) |
| Tax Valuation allowance from continuing operations | 38,879 | 38,879 |
|
Adjusted net income (loss) from continuing operations |
(1,329) |
830 |
| Weighted average shares outstanding: | ||
| Basic | 16,299,643 | 16,277,522 |
| Diluted | 16,299,643 | 16,361,547 |
| Adjusted basic and diluted income (loss) per share from continuing operations |
(0.08) |
0.05 |
CONTACT: Richard Gaetz, President/CEO
Sean Washchuk, VP Finance/CFO
Vitran Corporation Inc.
416/596-7664