Stock Name: TMA
Amount: CAD 0.0625
Announcement Date: 04/11/2011
Record Date: 28/12/2011
Dividend Detail:
Revenue improved $11.1 million (14.3%) to $88.6 million
Revenue excluding fuel surcharges increased 8.4% to $77.7 million
EBITDA increased 6.4%
Free cash flow increased to $10.8 million from $4.4 million
Adjusted earnings per share increased from $0.14/share to $0.16/share
Credit agreement was renegotiated to increase line, improve terms and
reduce interest rate spreads
CALGARY, Nov. 4, 2011 /CNW/ - Trimac Transportation Ltd. (TSX: TMA) ("Trimac" or the "Company"), Canada's leader in bulk
trucking, is pleased to announce the release of its financial results
for the third quarter ended September 30, 2011 ("current quarter").
Trimac's consolidated revenue, including fuel surcharges, for the
three-month period ended September 30, 2011 increased by $11.1 million
(14.3%) as compared to the same period in the prior year ("prior
quarter"). This increase was the result of increased revenue from
existing customers, new business awards in the petroleum, industrial
gas and woodchip sectors and an increase in fuel surcharge revenue of
$5.1 million. Revenue excluding fuel surcharges improved by 8.4% to
close the current quarter at $77.7 million. For the nine-month period
ended September 30, 2011 ("current year") total revenue increased 13.1%
to $245.1 million as compared to the $216.8 million reported in the
prior nine-month period ("prior year"). The Benson asset acquisition
late in the second quarter contributed $1.8 million in incremental
revenue for the current year.
Direct costs net of fuel surcharge revenue expressed as a percent of
revenue, decreased slightly in the current quarter to 69.8% from 69.9%
in the prior quarter. Improved productivity due to drier weather and
fully-trained new drivers contributed to this decrease. Of the $4.1
million increase in net direct costs, $1.2 million related to costs
from the June 8th Benson acquisition.
EBITDA closed the quarter at $11.6 million compared to $10.9 million in
the prior quarter, a 6.4% increase. Taking into consideration that the
prior quarter comparative results do not include public company costs
incurred by Trimac Income Fund of $0.2 million, EBITDA actually
increased 8.4%. This increase was the result of the increased revenue
volumes and improved productivity and utility and strong cost controls.
New Terms for Credit Facility
For the fourth quarter, Trimac negotiated new terms and increased its
$95 million syndicated revolving credit facility. The new facility has
increased our line from $95 million to $110 million, with an accordion
option for up to $125 million, improved terms and has a reduction in
interest rate spreads of up to 65 bps.
In commenting on the results for the quarter, Edward V. Malysa,
President & Chief Operating Officer of Trimac, said "We are very
pleased with our exceptional results for the third quarter. Our
dedicated professional drivers and support team of mechanics,
technicians and administrative staff all contributed to making this
quarter great. We are well positioned for the remainder of the year
with our investment in new equipment and our increased workforce to
achieve strong results for the rest of 2011. In addition, our new
credit facility will allow us to capitalize on opportunities when they
arise."
Financial Highlights
| | ||||||||||||||
| | Three months ended Sept. 30 | Nine months ended Sept. 30 | ||||||||||||
(unaudited, in millions of dollars except per share data) | 2011 | | 2010 | | Variance | 2011 | | 2010 | | Variance | ||||
Consolidated Financial Results | | | | | | | | | | | ||||
| | | | | | | | | | | | ||||
Transportation revenue | 77.7 | | 71.7 | | 8.4% | 216.2 | | 199.6 | | 8.3% | ||||
| | | | | | | | | | | | ||||
Operating expenses | | | | | | | | | | | ||||
Direct costs | 65.1 | | 55.9 | | 16.5% | 184.7 | | 160.4 | | 15.1% | ||||
Fuel surcharges (1) | (10.9) | | (5.8) | | -87.9% | (28.9) | | (17.2) | | -68.0% | ||||
| | | 54.2 | | 50.1 | | 8.2% | 155.8 | | 143.2 | | 8.8% | |||
| | Percent of revenue | 69.8% | | 69.9% | | | 72.1% | | 71.7% | | | |||
| | | | | | | | | | | | ||||
Selling and administration | 11.9 | | 10.7 | | 11.2% | 34.6 | | 31.0 | | 11.6% | ||||
EBITDA (2) | 11.6 | | 10.9 | | 6.4% | 25.8 | | 25.4 | | 1.6% | ||||
| | Percent of revenue | 14.9% | | 15.2% | | | 11.9% | | 12.7% | | | |||
| | | | | | | | | | | | ||||
Operating earnings | 6.6 | | 6.6 | | 0.0% | 12.5 | | 12.5 | | 0.0% | ||||
Adjusted net income (2) | 4.1 | | 3.7 | | 10.8% | 6.9 | | 7.4 | | -6.8% | ||||
| | | | | | | | | | | | ||||
| | | | | | | | | | | | ||||
Segment Results | | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Revenue before fuel surcharges | | | | | | | | | | |||||
| | Bulk Trucking | 69.5 | | 64.4 | | 7.9% | 192.1 | | 179.4 | | 7.1% | |||
| | Bulk Plus Logistics | 5.0 | | 4.4 | | 13.6% | 14.2 | | 11.6 | | 22.4% | |||
| | National Tank Services | 9.1 | | 7.6 | | 19.7% | 26.5 | | 22.5 | | 17.8% | |||
| | Inter-segment revenue | (5.9) | | (4.7) | | | (16.6) | | (13.9) | | | |||
| | 77.7 | | 71.7 | | 8.4% | 216.2 | | 199.6 | | 8.3% | ||||
| | | | | | | | | | | | ||||
EBITDA | | | | | | | | | | | ||||
| | Bulk Trucking | 9.8 | | 9.1 | | | 20.7 | | 20.8 | | | |||
| | Bulk Plus Logistics | 0.5 | | 0.9 | | | 1.6 | | 2.4 | | | |||
| | National Tank Services | 1.3 | | 0.9 | | | 3.5 | | 2.1 | | | |||
| | 11.6 | | 10.9 | | | 25.8 | | 25.3 | | | ||||
| | | | | | | | | | | | ||||
| | | | | | | | | | | | ||||
Other Information | | | | | | | | | | | ||||
| | | | | | | | | | | | ||||
| | Cash generated from operations | 12.9 | | 10.8 | | | 26.7 | | 24.9 | | | |||
| | Net property, plant and equipment additions | 9.2 | | 4.2 | | | 23.9 | | 11.6 | | | |||
| | Repurchase of common shares | - | | - | | | 5.5 | | - | | | |||
| | Acquisitions | - | | - | | | 4.0 | | 3.3 | | | |||
| | | | | | | | | | | | ||||
| | | | | | | | | | | | ||||
Share Information | | | | | | | | | | | ||||
| | | | | | | | | | | | ||||
| Cash generated from operations per share | 0.50 | | 0.41 | | | 1.03 | | 0.94 | | | |||
| Earnings per share - adjusted (2) | 0.16 | | 0.14 | | | 0.27 | | 0.28 | | | |||
| | | | | | | | | | | ||||
(1) | Management believes it is useful to net fuel surcharge revenue into direct expenses when analyzing operating results. For Trimac, fuel surcharge revenue is considered an expense recovery. | ||||
(2) | Refer to the third quarter management's discussion and analysis for the reconciliation of non-GAAP financial measures. | ||||
Financial Statements
At the time of issuing this press release, the unaudited interim
consolidated financial statements and the related Management Discussion
and Analysis ("MD&A"), including a reconciliation of non-GAAP financial
measures, can be found on the Company's website at www.trimac.ca.
Declaration of Quarterly Dividend
The Board of Directors today declared a dividend of $0.0625 per share on
the Class A common shares, payable on January 16, 2012 to shareholders
of record at the close of business on December 30, 2011. This dividend
is designated as an eligible dividend pursuant to subsection 89(14) of
the Income Tax Act (Canada) and any applicable provincial legislation
pertaining to eligible dividends.
Forward-Looking Statements
Certain information included in this news release constitutes
"forward-looking statements". Trimac cautions that, by their nature,
these forward-looking statements are based on suppositions, risks, and
uncertainties as well as on management's best possible evaluation of
future events. Trimac cautions that its assumptions may not materialize
and that current economic conditions render such assumptions, although
reasonable at the time they were made, subject to greater uncertainty.
Such forward-looking statements are not guarantees of future
performance and the actual results or performance of Trimac or the
transportation industry may be materially different from the outlook or
any future results or performance implied by such statements. Please
see "Forward-Looking Statements" in Trimac's MD&A for the three and
nine month periods ended September 30, 2011 for a discussion on the
material factors that could cause actual results to differ from the
forward-looking information contained herein and the material factors
and assumptions that were applied in preparing such forward-looking
information.
Profile
Trimac is Canada's largest provider of bulk trucking services with
operations from coast to coast. In addition, through its National Tank
Services division, Trimac performs repairs, maintenance and
tank-trailer cleaning services for both the Trimac fleet and for third
party commercial customers. Trimac also provides third party
transportation logistics services in Canada and the United States
through its wholly owned subsidiary Bulk Plus Logistics. Shares of
Trimac Transportation Ltd. are traded on the Toronto Stock Exchange
under the symbol TMA.
For more detailed information, please visit our website at www.trimac.ca or SEDAR at www.sedar.com and review our MD&A and financial statements for the Company.
You are invited to join us on a conference call (conference ID 4711131)
at 10:00 a.m. Eastern Time on Monday, November 7, 2011. For North
American participants, please dial 1- 800-711-9538 or for international
participants, please dial ++1-416-640-5925 at least 10 minutes prior to
the start time of the call. An audio playback of the call will be
available starting Tuesday, November 8, 2011 on our website at http://www.trimac.ca/page/eventscalendar.
For further information:
| Edward V. Malysa | Scott D. Calver |
| President & Chief Operating Officer | Vice President & Chief Financial Officer |
| Trimac Transportation Ltd. | Trimac Transportation Ltd. |
| Telephone: 403-298-5100 | Telephone: 403-298-5100 |
| Facsimile: 403-298-5258 | Facsimile: 403-298-5146 |
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