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Vitran First
Quarter Net Incomes Rises 117% On 16 Revenue Gain |
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TORONTO, ONTARIO--(July 28, 1998) -- Vitran
Corporation Inc. (Nasdaq: VVN,
TSE: VTNA), a North American
transportation and logistics firm, today announced record second quarter financial results
and strong six-month results for the periods ended June 30, 1998 (all figures reported in
Canadian dollars).
Revenues for the three months ended June 30, 1998
rose 10% to $98,491,000, compared to $89,761,000 in the 1997 second quarter, and operating
income increased 24% to $5,308,000, compared to $4,268,000 in the prior year period. Net
income during the 1998 second quarter rose 39% to $2,637,000, or $0.28 per basic
share ($0.25 fully diluted), compared to net income of $1,897,000, or $0.20 per share
($0.19 fully diluted) in the second quarter of 1997. Per share results are based on
9,535,204 (10,404,604 fully diluted) and 9,415,478 (10,079,673 fully diluted) weighted
average shares outstanding during the 1998 and 1997 second quarter periods, respectively.
Revenues for the first six months of 1998 rose
13% to $190,905,000, versus $169,521,000 in the comparable prior year period, and
operating income increased 29% to $8,052,000, compared to $6,245,000 in the first half of
1997. Net income during the six-month period rose 53% to $3,558,000, or $0.38 per share
($0.34 fully diluted), compared to $2,322,000, or $0.25 per share ($0.23 fully diluted)
during the year-ago period. Per share results are based on 9,487,613 (10,357,013 fully
diluted) and 9,412,018 (10,079,673 fully diluted) weighted average shares outstanding
during the 1998 and 1997 six-month periods, respectively.
Commenting on Vitran's strong results, President
and Chief Executive Officer, Richard D. McGraw, stated, "The second quarter
represents the seventh consecutive quarterly gain in earnings and in our consolidated
operating ratio (OR). Importantly, Vitran's second quarter financial performance included
revenue and operating income increases at all of our transportation divisions.
The OR (total operating expenses inclusive of
depreciation, exclusive of interest and taxes as a percentage of revenues), is an
important benchmark used in the transportation industry to measure operating efficiency
and productivity, and during the quarter it improved significantly to 94.6, versus 97.0 in
the 1998 first quarter, and 95.2 in the comparable prior year period. Our core LTL
(less-than-truckload) division, second quarter OR improved from 93.3 in 1997 to 93.1, in
the current period. We are encouraged by the continuing trend of consolidated and LTL OR
improvements, and remain focused on further lowering these numbers in coming
quarter."
Looking forward, Mr. McGraw, concluded, "We
continue to pursue our long-term strategy to combine internal growth with complementary,
U.S. regional LTL acquisitions. Our long-term objective is to expand our North American
transportation coverage to better meet the needs of our growing customer base, with the
goal of enhancing sharehold value."
Vitran Corporation Inc. is a North American group
of transportation companies offering less-than-truckload, truckload, intermodal marketing,
truck brokerage and logistics under. Trans Western Express, Overland Transportation
System, The Freight Connection and other corporate names.
REMINDER: Vitran management will conduct
a conference call today, July 28th at 10:00 a.m. EDT, to discuss the Company's 1998 second
quarter results. The conference all number is: 888/ 209-4006
This news announcement contains certain
forward-looking information that is subject to certain risks and uncertainties as
indicated from time to time in the Company's 20-F and other filings with the Securities
and Exchange Commission. Included among these risks and uncertainties are the future
performance of the economy, competitive and pricing pressures, fuel costs and other
factors impacting the transportation industry.
Vitran
Corporation Inc.
Balance Sheet
June 30, 1998 (unaudited)
(in thousands of Canadian dollars) |
| Current assets |
$67,629 |
| Fixed assets |
48,751 |
| Goodwill and other assets |
41,808 |
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$158,188 |
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| Current liabilities |
$45,112 |
| Long-term debt |
49,696 |
| Other liabilities |
6,862 |
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$101,670 |
| Minority interest |
638 |
| Shareholders' equity |
55,880 |
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$158,188 |
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Vitran
Corporation Inc.
Statements Of Income
( Canadian dollars)
(in thousands, except share and per share amounts) |
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3 Months Ended June 30, (unaudited) |
6
Months Ended June 30, unaudited) |
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1998 |
1997 |
1998 |
1997 |
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| Revenues |
$98,491 |
$89,761 |
$190,905 |
$169,521 |
| Operating Expenses |
79,571 |
73,665 |
156,477 |
141,107 |
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| Gross Profit |
18,920 |
16,096 |
34,428 |
28,414 |
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| Selling, General and
Administrative Expenses |
11,442 |
9,835 |
22,154 |
18,292 |
| Depreciation and
Amortization |
2,170 |
1,993 |
4,222 |
3,877 |
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| Income from
Operations |
5,308 |
4,268 |
8,052 |
6,245 |
| Gain/ (loss) on Sales of
Assets |
(204) |
(74) |
(232) |
(80) |
| Net Interest Expense |
1,135 |
1,261 |
2,395 |
2,537 |
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| Income/(loss)
before income taxes |
3,969 |
2,933 |
5,425 |
3,628 |
| Income tax expense/
(recovery) |
1,306 |
988 |
1,821 |
1,216 |
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| Income/
(loss) before the undernoted |
2,663 |
1,945 |
3,604 |
2,412 |
| Other items |
(26) |
(48) |
(46) |
(90) |
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| Net
income (loss) |
$2,637 |
$1,897 |
$3,558 |
$2,322 |
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| Earning (loss)
per share |
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| -- Basic |
$0.28 |
$0.20 |
$0.38 |
$0.25 |
| -- Fully Diluted |
$0.25 |
$0.19 |
$0.34 |
$0.232 |
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| Weighted average
shares outstanding Basic |
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| -- Basic |
9,535,204 |
9,415,478 |
9,487,613 |
9,412,018 |
| -- Fully Diluted |
10,404,604 |
10,079,673 |
10,357,135 |
10,079,673 |
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| * Vitran's financial
statements are prepared in accordance with Canadian Generally Accepted Accounting
Principles (GAAP). |
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