TransForce Announces 2015 Second Quarter Results-Acquisition Strategy Benefits Shareholders
- Revenue before fuel surcharge up 27% to $988.1 million - Adjusted EBIT(i) of $97.8 million, up 23% from $79.5 million last year - Adjusted net income(i) of $71.3 million, or $0.69 per diluted share(i), versus $56.3 million last year - Free cash flow(i) of $98.2 million, or $0.97 per share(i), used to repurchase $52.1 million in common shares (i) These are non-IFRS measures. For a reconciliation, please refer to the "Non-IFRS Measures" section below.
(firmenpresse) - MONTREAL, QUEBEC -- (Marketwired) -- 07/23/15 -- TransForce Inc. (TSX: TFI)(OTCQX: TFIFF), a North American leader in the transportation and logistics industry, today announced its results for the second quarter ended June 30, 2015.
"TransForce delivered solid operating results driven by the contribution from last year''s selective acquisitions. This strategy more than offset the impact of a weaker economy on business volumes and of lower oil prices which affected both our Truckload ("TL") divisions servicing the oil and gas industry and our U.S.-based rig moving activities. The latter''s downsizing, combined with the sale of excess properties throughout the organization, resulted in proceeds of $56.0 million. These proceeds and cash flow from operating activities, led to the generation of a healthy free cash flow of $98.2 million, which was applied to debt reimbursement and benefited shareholders through stock repurchases and dividends," said Alain Bedard, Chairman, President and Chief Executive Officer of TransForce.
SECOND-QUARTER RESULTS
Total revenue reached $1.1 billion, up $208.0 million, or 23%, over last year. Net of fuel surcharge, revenue increased 27% to $988.1 million. This increase reflects the acquisitions completed in the previous twelve months, as well as the effect of local currency appreciation on US-dollar denominated revenue. Before fuel surcharge and acquisitions, revenue decreased due to lower activity in the specialized TL divisions servicing the oil and gas industry as well as in the U.S. rig moving business.
Adjusted EBIT amounted to $97.8 million, or 9.9% of revenue before fuel surcharge, up 23% from $79.5 million, or 10.2% of revenue before fuel surcharge, a year earlier. The increase in EBIT and adjusted EBIT reflects a strong $25.5 million contribution from acquisitions, while existing operations recorded a $7.2 million reduction, essentially due to deteriorating conditions in oil-related markets.
Adjusted net income, which excludes amortization of intangible assets related to acquisitions, the net changes in the fair value of derivatives, net foreign exchange gain or loss, and items not in the Company''s normal business, net of tax, reached $71.3 million, or $0.69 per diluted share, up from $56.3 million last year, or $0.55 per diluted share. Net income amounted to $64.1 million, or $0.62 per diluted share, versus $37.3 million, or $0.37 per diluted share, a year ago.
Reflecting a higher cash flow from operating activities and the sale of excess property and equipment, TransForce generated a solid free cash flow of $98.2 million, or $0.97 per share, in the second quarter of 2015. This free cash flow was mainly returned to shareholders through the repurchase of $52.1 million in common shares and dividend payments of $17.4 million, while long-term debt was reduced by a net amount of $6.1 million during the period.
SIX-MONTH RESULTS
For the first six months of 2015, total revenue amounted to $2.13 billion, up 28% from $1.66 billion a year earlier. Net of fuel surcharge, revenue rose 31% to $1.91 billion. Adjusted EBIT rose 27% to $142.8 million, or 7.5% of revenue before fuel surcharge, versus $112.7 million, or 7.7% of revenue before fuel surcharge, last year. Adjusted net income reached $100.7 million, or $0.97 per diluted share, up from $80.3 million, or $0.79 per diluted share, a year ago, while net income stood at $78.2 million, or $0.75 per diluted share, compared with $43.2 million, or $0.43 per diluted share, in the previous year. TransForce generated free cash flow of $138.7 million in the first half of 2015, equivalent to $1.36 per share.
SEGMENTED RESULTS
OUTLOOK
"We expect organic growth to be restrained in TransForce''s main operating markets due to the North American economy which is more sluggish than initially anticipated. Although the U.S. economy is relatively healthy, lower oil prices have led to an economic contraction in Canada, a situation which threatens to persist through 2015. This will likely more than offset the momentum in Central Canada''s manufacturing sector, resulting from the benefits of a weaker Canadian dollar. Given this economic environment, we adjusted our 2015 anticipated results and now expect total revenue to reach $4.3 billion (previously between $4.4 billion and $4.5 billion), adjusted EBITDA of between $510 million and $530 million (previously $540 million and $560 million), basic adjusted EPS in the range of $1.97 - $ 2.12 (previously $2.15 and $2.30) and free cash flow to exceed $300 million. TransForce''s decentralized structure, coupled with our dedicated teams, provide the flexibility to deal rapidly and effectively with changing business environments at the local level. By strictly adhering to this guiding principle, we will continue to generate a solid free cash flow and optimize the return to our shareholders," concluded Mr. Bedard.
CONFERENCE CALL
TransForce will hold a conference call for analysts and portfolio managers on Friday, July 24, 2015 at 9:00 a.m. Eastern Time, to discuss these results. Business media are also invited to listen to the call. Interested parties can join the call by dialling 1-877-223-4471. A recording of the call will be available until midnight, July 31, 2015, by dialling 1-800-585-8367 or 416-621-4642 and entering passcode 72238681.
ABOUT TRANSFORCE
TransForce Inc. is a North American leader in the transportation and logistics industry operating across Canada and the United States through its subsidiaries. TransForce creates value for shareholders by identifying strategic acquisitions and managing a growing network of wholly-owned operating subsidiaries. Under the TransForce umbrella, companies benefit from corporate financial and operational resources to build their businesses and increase their efficiency. TransForce companies service the following segments:
TransForce Inc. is publicly traded on the Toronto Stock Exchange (TSX: TFI) and the OTCQX marketplace in the U.S. (OTCQX: TFIFF). For more information, visit .
FORWARD-LOOKING STATEMENTS
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of TransForce. These statements are based on suppositions and uncertainties as well as on management''s best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for TransForce''s products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
NON-IFRS MEASURES
Adjusted EBIT, adjusted net income, adjusted earnings per share, free cash flow and free cash flow per share are financial measures not prescribed by IFRS and are not likely to be comparable to similar measures presented by other issuers. Management considers these to be useful information to assist investors in evaluating the Company''s profitability, liquidity and ability to generate funds to finance its operations. These measures do not have any standardize meaning under IFRS and could be calculated differently by other companies. These measures should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS.
Note to readers: Consolidated financial statements and Management''s Discussion & Analysis are available on TransForce''s website at .
Contacts:
Investors:
Alain Bedard
Chairman, President and CEO
TransForce Inc.
(647) 729-4079
Media:
Rick Leckner
MaisonBrison Communications
(514) 731-0000
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Datum: 23.07.2015 - 15:05 Uhr
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