TransForce Announces 2015 Third Quarter Results
- Revenue before fuel surcharge from continuing operations up 18% to $971.1 million - Operating income of $88.0 million, up 9% from $80.4 million last year - Adjusted net income from continuing operations(i) of $60.6 million, or $0.60 per diluted share(i), versus $58.1 million last year - Repurchase of nearly 2.6 million common shares for $62.0 million during the third quarter (i) This is a non-IFRS measure. For a reconciliation, please refer to the "Non-IFRS Measures" section below.
(firmenpresse) - MONTREAL, QUEBEC -- (Marketwired) -- 10/22/15 -- TransForce Inc. (TSX: TFI)(OTCQX: TFIFF), a North American leader in the transportation and logistics industry, today announced its results for the third quarter ended September 30, 2015. TransForce is ceasing its U.S. rig moving operations and results for these activities are accordingly presented as discontinued operation in the Company''s financial statements. Data for corresponding periods of the previous year have been restated.
"TransForce''s relentless focus on high-return activities produced strong results. We recorded solid organic growth in the Waste Management and Logistics segments, while the acquisition of Contrans lifted revenue and operating income in the Truckload ("TL") segment. Certain economic challenges affected business activity in the Package and Courier ("P&C") and Less-than-Truckload ("LTL") segments whereas TL divisions servicing the oil and gas industry experienced another difficult quarter due to difficult market conditions. That persistent weakness led to the decision to cease our residual U.S. rig moving business. In keeping with TransForce''s operating principles, remaining assets will be sold or redeployed to higher-return activities. This disciplined capital allocation and constant emphasis on maximizing free cash flow generation attest to our fundamental commitment of enhancing shareholder value," said Alain Bedard, Chairman, President and Chief Executive Officer of TransForce.
THIRD-QUARTER RESULTS
Total revenue from continuing operations reached $1.07 billion, up 13% over last year. Net of fuel surcharge, revenue from continuing operations increased 18% to $971.1 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 was essentially stable, as lower P&C and LTL volume and reduced activity in TL divisions servicing the oil and gas industry was offset by organic growth in the Waste Management and Logistics segments.
Operating income from continuing operations amounted to $88.0 million, or 9.1% of revenue before fuel surcharge, up 9% from $80.4 million, or 9.8% of revenue before fuel surcharge, a year earlier. The increase in operating income reflects the contribution from acquisitions and the effect of local currency appreciation on US-dollar denominated operating income, partially offset by lower gains on the disposition of property and equipment compared with last year and lower volume for existing operations.
Net income from continuing operations amounted to $43.0 million, or $0.43 per diluted share, versus $38.6 million, or $0.38 per diluted share, a year ago. Adjusted net income from continuing operations, which excludes amortization of intangible assets related to acquisitions, 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 $60.6 million, or $0.60 per diluted share, up from $58.1 million last year, or $0.58 per diluted share. Including the loss from discontinued operation, net income stood at $41.6 million, or $0.41 per diluted share, versus $41.5 million last year, or $0.41 per diluted share.
Net cash from continuing operations stood at $102.9 million, while free cash flow from continuing operations amounted to $60.7 million, or $0.61 per share, in the third quarter of 2015. The discontinued operation provided a further free cash flow of $19.7 million resulting from the ongoing sale of excess assets. This free cash flow was returned to shareholders through the repurchase of $62.0 million in common shares and dividend payments of $17.1 million during the third quarter.
NINE-MONTH RESULTS
For the first nine months of 2015, total revenue from continuing operations amounted to $3.16 billion, up 24% from $2.55 billion a year earlier. Net of fuel surcharge, revenue from continuing operations rose 28% to $2.85 billion. Operating income from continuing operations increased 27% to $245.2 million, or 8.6% of revenue before fuel surcharge, versus $192.4 million, or 8.7% of revenue before fuel surcharge, last year. Net income from continuing operations reached $130.2 million, or $1.27 per diluted share, up from $104.5 million, or $1.04 per share, a year ago. Adjusted net income from continuing operations stood at $170.2 million, or $1.65 per diluted share, versus $135.6 million, or $1.35 per diluted share, last year. Including the loss from discontinued operation, net income was $119.8 million, or $1.16 per diluted share, compared with $84.8 million, or $0.84 per diluted share, in the previous year. TransForce generated free cash flow from continuing operations of $185.9 million in the first nine months of 2015, equivalent to $1.84 per share.
SEGMENTED RESULTS FROM CONTINUING OPERATIONS
OUTLOOK
"As the North American economic landscape remains mostly unchanged, we continue to expect organic growth to be restrained in TransForce''s main operating markets. As such, adjustments to our 2015 anticipated results strictly reflect the exclusion of the previous negative contribution from discontinued operation. We expect continuing operations to generate total revenue of approximately $4.3 billion, earnings before interest, income tax, depreciation and amortization ("EBITDA") from continuing operations of between $520 million and $540 million (previously $510 million and $530 million), and basic adjusted earnings per share ("EPS") from continuing operations in the range of $2.07-$2.22 (previously $1.97-$2.12). TransForce remains focussed on maximizing free cash flow generation and we expect a total free cash flow of approximately $300 million, consisting of $250 million from continuing operations and $50 million from discontinued operation. Our decentralized structure provides our managers with the ability to rapidly adapt supply to demand and to deploy resources in high-return activities," concluded Mr. Bedard.
CONFERENCE CALL
TransForce will hold a conference call for analysts and portfolio managers on Friday, October 23, 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, October 30, 2015, by dialling 1-800-585-8367 or 416-621-4642 and entering passcode 7218057.
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 net income, adjusted earnings per share, free cash flow from continuing operations and free cash flow from continuing operations 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: 22.10.2015 - 15:05 Uhr
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