Vitran - Consolidation

Management Discussion and Analysis

Financial Highlight	Third Quarter 2000	Letter to Shareholders	Annual Report	E-Alerts
Press Release	ETL Environmental	Management Discussion	TSE	AMEX

Liquidity and Capital Resources

In 2000, cash flow from operations before working capital changes for the year was $22.5 million compared to $20.8 million in 1999.

Non-cash working capital increased by $0.3 million as business volumes increased, but the extent of the increase was reduced due to the more effective accounts receivable collection.

During the year the Company increased its available credit under the revolving and non-revolving term bank credit facility from $55.0 million to $62.5 million.

The Company reduced interest-bearing debt by $9.5 million from $86.5 million at December 31, 1999 to $77.0 million at the end of 2000. The interest-bearing debt is comprised of bank overdraft of $4.3 million, US$36.3 million drawn under the revolving term facility, US$11.3 million of Senior Note borrowings and other debt of $1.4 million. Interest-bearing debt as a percentage of total capital decreased from 54.2% in 1999 to 48.6% in 2000. During the year, the Company repaid US$22.5 million of the Senior Notes using US$18.8 million from our existing credit facilities and the remainder with cash on hand.

Capital expenditures for the year amounted to $10.9 million compared to $17.1 million in 1999. Land and buildings for future growth accounted for $4.7 million while the remaining $6.2 million was invested in revenue equipment, information technology, and other machinery and equipment. Management expects that the existing working capital, together with available revolving facilities, will be sufficient to fund operating and capital requirements in 2001, as well as to service principal debt repayment requirements of $12.2 million.

The Company continues to generate strong cash flow from operations and interest-bearing debt as a percentage of capital declined to less than 50% in 2000.

Debt to Total Capital percent	Cash from Operations dollars in millions
Interest-bearing debt to total capital percentage decreased to 48.6% in 2000 from 54.2% in 1999.	Cash flow from operations before working capital changes increased to $22.5 million in 2000 from $20.8 million in 1999.

The accompanying consolidated financial statements of Vitran Corporation are the responsibility of management and have been prepared in accordance with generally accepted accounting principles and, where appropriate, reflect estimates based on management's judgment. In addition, all other information contained in the annual report is also the responsibility of management.

The Company maintains systems of internal accounting and administrative controls designed to provide reasonable assurance that the financial information provided is accurate and complete and that all assets are properly safeguarded.

The Board of Directors is responsible for ensuring that management fulfills its responsibility for financial reporting and is ultimately responsible for reviewing and approving the consolidated financial statements. The Board appoints the Audit Committee comprised of non-management directors that meets with management and KPMG LLP, the external auditors, at least once a year to review among other things, accounting policies, annual financial statements, the results of the external audit examination, and the management discussion and analysis included in the annual report. The Audit Committee reports its finding to the Board of Directors so that the Board may properly approve the financial statements.

Last Updated: May 29, 2001