TransForce Announces 2015 Fourth Quarter and Year-End Results
(firmenpresse) - MONTREAL, QUEBEC -- (Marketwired) -- 02/11/16 --
TransForce Inc. (TSX: TFI)(OTCQX: TFIFF), a North American leader in the transportation and logistics industry, today announced its results for the fourth quarter and fiscal year ended December 31, 2015. During the year, TransForce ceased its U.S. rig moving operations and announced the sale of its Waste Management segment, which was completed on February 1, 2016. Results for these activities are accordingly presented as discontinued operations in the Company''s financial statements. Data for corresponding periods of the previous year have been restated.
"The sudden and rapid decline in the price of oil caught most by surprise in 2015. It caused a significant decline in economic activity in Canada and a serious deterioration in the U.S. energy market. Our decentralized and diversified business model enabled us to rapidly adapt to the evolving market conditions. TransForce moved decisively to reduce its exposure in operations affected by the downturn. We accelerated cost-savings initiatives, adjusted supply to demand in several areas and discontinued unprofitable rig moving operations. Our rigorous execution allowed TransForce to conclude the year with a strong free cash flow. In 2015, our geographical revenue distribution was approximately 47% from Eastern Canada, 16% from Western Canada and 37% from the United States," said Alain Bedard, Chairman, President and Chief Executive Officer of TransForce.
"We also moved proactively to unlock shareholder value by initiating the sale of our Waste Management segment for $800 million. This transaction, completed earlier this month, allowed TransForce to realize the full value of this business which, in our view, had never been fully recognized. The monetization of Waste Management positions TransForce to continue its growth through selective acquisitions and to repurchase shares under its normal course issuer bid. In keeping with our proven strategy, we will invest in initiatives that generate superior returns, meet our main objective of generating cash flow and creating lasting value for our shareholders," added Mr. Bedard.
FOURTH-QUARTER RESULTS
Total revenue from continuing operations reached $1.03 billion, up 4% over last year. Net of fuel surcharge, revenue from continuing operations rose 9% to $938.7 million. This increase reflects acquisitions completed in the previous twelve months and the effect of local currency appreciation on U.S.-dollar denominated revenue. Before fuel surcharge and acquisitions, revenue decreased slightly, as lower Less-Than-Truckload (LTL) volume and reduced activity in Specialized Truckload (TL) divisions servicing the oil and gas industry were partially offset by revenue increase from U.S. e-commerce initiatives in the Package and Courier (P&C) segment and organic growth in the Logistics segment.
Operating income from continuing operations was stable year-over-year at $66.5 million. As a percentage of revenue before fuel surcharge, operating income stood at 7.1% of revenue in the fourth quarter of 2015, versus 7.7% a year earlier. The stability in operating income reflects a positive contribution from acquisitions, higher gains on the disposition of property and equipment compared to last year''s fourth quarter and the effect of local currency appreciation on U.S.-dollar denominated operating income, offset by lower revenue and margins from existing operations, mainly for LTL and Specialized TL divisions servicing the oil and gas industry.
Net income from continuing operations reached $40.6 million, or $0.41 per diluted share, up from $32.4 million, or $0.31 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, was $42.9 million, or $0.43 per diluted share, versus $43.3 million last year, or $0.41 per diluted share. Including net income from discontinued operations, net income stood at $43.6 million, or $0.44 per diluted share, compared with $43.2 million last year, or $0.41 per diluted share.
Net cash from continuing operations stood at $136.8 million, while free cash flow from continuing operations amounted to $125.8 million, or $1.29 per share, in the fourth quarter of 2015. Discontinued operations provided a further cash flow of $24.8 million.
YEAR-END RESULTS
For 2015, total revenue from continuing operations amounted to $4.03 billion, up 19% from $3.40 billion a year earlier. Net of fuel surcharge, revenue from continuing operations rose 23% to $3.63 billion. Operating income from continuing operations increased 21% to $276.5 million, or 7.6% of revenue before fuel surcharge, versus $227.6 million, or 7.7% of revenue before fuel surcharge, last year. Net income from continuing operations reached $145.7 million, or $1.43 per diluted share, versus $116.2 million, or $1.15 per diluted share, a year ago. Adjusted net income from continuing operations stood at $185.6 million, or $1.82 per diluted share, up from $155.9 million, or $1.54 per diluted share, last year. Including net income from discontinued operations, net income was $163.4 million, or $1.60 per diluted share, compared with $127.9 million, or $1.26 per diluted share, in the previous year.
Net cash from continuing operations reached $358.8 million, while TransForce generated free cash flow from continuing operations of $291.5 million in 2015, equivalent to $2.91 per share. Discontinued operations provided a further cash flow of $78.0 million resulting from Waste Management operations and the sale of excess assets. This free cash flow was returned to shareholders through the repurchase of $121.8 million in common shares and dividend payments of $68.6 million. TransForce also reimbursed a net amount of $139.1 million in long-term debt.
SEGMENTED RESULTS FROM CONTINUING OPERATIONS
OUTLOOK
"As we look ahead, the U.S. economy remains healthy driven by higher consumer confidence and spending, which bodes well for P&C and TL. In Canada, low oil prices have continued to depress the economy while the effects of a weak currency have yet to provide a boost to the manufacturing sector. It may take some time to reverse this situation, but we expect benefits from investments in productivity and cost reduction measures will help mitigate these negative effects. In 2016, TransForce will be proactive in repurchasing its common shares. Free cash flow will be used to reimburse debt and reward shareholders by buying back shares," concluded Mr. Bedard.
CONFERENCE CALL
TransForce will hold a conference call for analysts and portfolio managers on Friday, February 12, 2016 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, February 26, 2016, by dialling 1-800-585-8367 or 416-621-4642 and entering passcode 20576721.
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 from continuing operations, adjusted earnings from continuing operations 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: 11.02.2016 - 16:21 Uhr
Sprache: Deutsch
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