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Vitran reports 2009 second quarter results

PR Newswire
posted: 128 DAYS 21 HOURS AGO

TORONTO, July 23 /PRNewswire-FirstCall/ - Vitran Corporation Inc. (NASDAQ: VTNC, TSX: VTN), a North American transportation and logistics firm, today announced financial results for the second quarter of 2009 and the six-month period ended June 30, 2009 (all figures reported in $U.S.).

Vitran reported net income of $0.4 million, or $0.03 per diluted share, on revenues of $158.7 million for the quarter ended June 30, 2009. In the comparable 2008 three-month period, the Company achieved net income of $4.6 million, or $0.34 per diluted share on revenue of $196.0 million. The fluctuation in fuel surcharge and foreign exchange on Vitran's Canadian operations accounted for $26.4 million of the revenue decline for the second quarter of 2009 compared to the second quarter of 2008. Therefore consolidated revenue declined 5.6% adjusting for the change in fuel surcharge and foreign exchange rates on Canadian dollar denominated revenue.

"We are pleased with our second sequential quarter of financial improvements given the general economy and the current transportation pricing environment in North America which remain extremely challenging. On a consolidated basis the Company returned to profitability, led by a positive contribution from our LTL segment and very rewarding results from our supply chain business," stated Vitran President and Chief Executive Officer Rick Gaetz.

"We continue to make the Company stronger by executing our single entity operating plan in the United States. Our primary challenge is to ensure that our sequential quarterly shipment and tonnage improvements more than offset the weakness in the pricing environment.

"Our Logistics business performed very well in the quarter, in fact, equaled its all-time best profitability despite continued downward pressures on the North American retail economy. I look forward to continued commercial success in our supply chain business."

Segmented Results

The LTL (less-than-truckload) segment posted income from operations for the 2009 second quarter of $1.2 million, with an OR (operating ratio) of 99.1% compared to income from operations of $8.5 million and an OR of 94.9% in the comparable period a year ago. In the comparable second quarters, shipments and tonnage declined 7.9% and 12.6% respectively in the LTL segment. On sequential quarterly basis our daily shipment count and daily tonnage measures improved 9.3% and 6.1% respectively in the second quarter of 2009 compared to the first quarter of 2009.

Vitran Logistics posted income from operation of $1.4 million and an OR of 92.3% in the second quarter of 2009 compared to income from operations of $0.8 million and OR of 95.7% in the second quarter of 2008. The Truckload segment achieved income from operations during the three-month period ended June 30, 2009 of $256,000, compared to $321,000 in 2008, and the TL OR was 97.0%, compared to an OR of 96.2% in the prior year second quarter.

About Vitran Corporation Inc.

Vitran Corporation Inc. is a North American group of transportation companies offering less-than-truckload, logistics, truckload, and freight brokerage services. To find out more about Vitran Corporation Inc. (NASDAQ:VTNC, TSX:VTN), visit the website at www.vitran.com.

This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Forward-looking statements may be generally identifiable by use of the words "believe", "anticipate", "intend", "estimate", "expect", "project", "may", "plans", "continue", "will", "focus should" "endeavor" or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on current expectations and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially from those expressed or implied by such forward-looking statements.

Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Vitran's actual results, performance or achievements to differ materially from those projected in the forward-looking statements. Factors that may cause such differences include, but are not limited to, technological change, increases in fuel costs, regulatory changes, the general health of the economy, seasonal fluctuations, unanticipated changes in railroad capacities, exposure to credit risks, changes in labour relations and competitive factors. More detailed information about these and other factors is included in the annual MD A on Form 10K under the heading "General Risks and Uncertainties." Many of these factors are beyond the Company's control; therefore, future events may vary substantially from what the Company currently foresees. You should not place undue reliance on such forward-looking statements. Vitran Corporation Inc. does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

                               (tables follow)

                           Vitran Corporation Inc.
                         Consolidated Balance Sheets
               (in thousands of United States dollars, US GAAP)


                                               June 30, 2009   Dec. 31, 2008
                                                  (unaudited)       (audited)
    Assets
    Current assets:
      Accounts receivable                       $     72,230    $     65,741
      Inventory, deposits and prepaid expenses        12,881          12,063
      Income and other taxes receivable                1,992             792
      Deferred income taxes                            2,175           1,877
                                                ------------    ------------
                                                      89,278          80,473
    Property and equipment                           148,729         152,602
    Intangible assets                                 12,017          13,279
    Goodwill                                          17,302          17,057
    Deferred income taxes                             32,365          30,181
                                                ------------    ------------
                                                $    299,691    $    293,592
                                                ------------    ------------
                                                ------------    ------------
    Liabilities and Shareholders' Equity
    Current liabilities:
      Bank overdraft                            $      4,798    $      3,912
      Accounts payable and accrued
       liabilities                                    64,626          63,495
      Current portion of long-term debt               18,075          16,925
                                                ------------    ------------
                                                      87,499          84,332
    Long-term debt                                    96,838          93,477
    Other                                              3,732           4,540
    Shareholders' equity:
      Common shares                                   77,500          77,500
      Additional paid-in capital                       3,965           3,525
      Retained earnings                               31,337          33,253
      Accumulated other comprehensive loss            (1,180)         (3,035)
                                                ------------    ------------
                                                     111,622         111,243
                                                ------------    ------------
                                                $    299,691    $    293,592
                                                ------------    ------------
                                                ------------    ------------

                 (Consolidated Statements of Income follows)



                           Vitran Corporation Inc.
                      Consolidated Statements Of Income
                                 (Unaudited)
       (in thousands of United States dollars except per share amounts,
                                   US GAAP)

                                     Three months             Six months
                                    ended June 30,          ended June 30,
                                   2009        2008        2009        2008
                                   ----        ----        ----        ----
    Revenue                   $  158,682  $  195,990  $  298,317  $  373,497
    Operating expenses           151,698     182,737     289,160     352,758
    Depreciation and
     amortization expense          4,947       5,205       9,974      10,765
                              ----------  ----------  ----------  ----------
                                 156,645     187,942     299,134     363,523

    Income (loss) from
     operations before
     undernoted                    2,037       8,048        (817)      9,974

    Interest expense, net          2,514       2,122       4,710       4,252

    Income (loss) from
     operations before
     income taxes                   (477)      5,926      (5,527)      5,722

    Income (recovery) taxes         (917)      1,349      (3,611)         11
                              ----------  ----------  ----------  ----------

      Net income (loss)       $      440  $    4,577  $   (1,916) $    5,711
                              ----------  ----------  ----------  ----------
                              ----------  ----------  ----------  ----------

    Basic and Diluted income
     (loss) per share -
      Net income (loss)       $     0.03  $     0.34  $    (0.14) $     0.42

    Weighted average number
     of shares:
      Basic                   13,498,159  13,483,159  13,498,159  13,474,258
      Diluted                 13,592,162  13,630,974  13,498,159  13,621,759


                     (Statements of Cash Flows follows)



                           Vitran Corporation Inc.
                    Consolidated Statements Of Cash Flows
                                 (Unaudited)
               (in thousands of United States dollars, US GAAP)

                                     Three months             Six months
                                    ended June 30,          ended June 30,
                                   2009        2008        2009        2008
                                   ----        ----        ----        ----
    Cash provided by (used in):

    Operations:
      Net income (loss)       $      440  $    4,577  $   (1,916) $    5,711
      Items not involving
       cash from operations:
        Depreciation and
         amortization expense      4,947       5,205       9,974      10,765
        Deferred income taxes       (966)      1,302      (3,286)        104
        Share-based
         compensation expense        206         292         440         569
        Gain on sale of
         property and equipment       (8)       (134)       (437)       (133)
      Change in non-cash working
       capital components         (6,817)     (9,419)     (7,313)    (10,532)
                              ----------  ----------  ----------  ----------
                                  (2,198)      1,823      (2,538)      6,484
    Investments:
      Purchase of property
       and equipment              (1,822)     (2,040)     (3,449)     (9,148)
      Proceeds on sale of
       property and equipment         98         261       1,145         452
                              ----------  ----------  ----------  ----------
                                  (1,724)     (1,779)     (2,304)     (8,696)
    Financing:
      Revolving credit facility
       and bank overdraft          8,453       4,703      13,079      11,328
      Repayment of long-term
       debt                       (2,268)     (2,575)     (4,536)     (5,146)
      Repayment of capital
       leases                     (1,392)     (2,001)     (3,212)     (4,242)
      Issue of Common Shares
       upon exercise of stock
       options                         -           -           -         178
                              ----------  ----------  ----------  ----------
                                   4,793         127       5,331       2,118

    Effect of translation
     adjustment on cash             (871)       (171)       (489)         94
                              ----------  ----------  ----------  ----------

    Increase in cash and cash
     equivalents                       -           -           -           -
    Cash and cash equivalent
     position, beginning
     of period                         -           -           -           -
                              ----------  ----------  ----------  ----------
    Cash and cash equivalent
     position, end of period  $        -  $        -  $        -  $        -
                              ----------  ----------  ----------  ----------
                              ----------  ----------  ----------  ----------

    Change in non-cash working
     capital components:
      Accounts receivable     $   (6,422) $  (11,905) $   (6,489) $  (19,576)
      Inventory, deposits
       and prepaid expenses       (1,130)       (512)       (818)       (913)
      Income and other taxes
       recoverable/payable          (414)       (163)     (1,137)        968
      Accounts payable and
       accrued liabilities         1,149       3,161       1,131       8,989
                              ----------  ----------  ----------  ----------
                              $   (6,817) $   (9,419) $   (7,313) $  (10,532)
                              ----------  ----------  ----------  ----------
                              ----------  ----------  ----------  ----------

                 (additional financial information follows)

                Supplementary Segmented Financial Information
             (in thousands of United States dollars) (Unaudited)

    -----------------------------------  ------------------------------------
    For the                              For the
    quarter ended                        quarter ended
    June 30, 2009                        June 30, 2008
    -----------------------------------  ------------------------------------
                      Inc. from                             Inc. from
             Revenue  Operations   OR%             Revenue  Operations   OR%
    -----------------------------------  ------------------------------------
    LTL    $ 131,667  $   1,157   99.1   LTL     $ 168,161  $   8,541   94.9
    -----------------------------------  ------------------------------------
    LOG    $  18,569  $   1,433   92.3   LOG     $  19,314  $     831   95.7
    -----------------------------------  ------------------------------------
    TL     $   8,446  $     256   97.0   TL      $   8,515  $     321   96.2
    -----------------------------------  ------------------------------------


    -----------------------------------  ------------------------------------
    For the six                          For the six
    months ended                         months ended
    June 30, 2009                        June 30, 2008
    -----------------------------------  ------------------------------------
                      Inc. from                             Inc. from
            Revenue   Operations   OR%             Revenue  Operations   OR%
    -----------------------------------  ------------------------------------
    LTL    $ 247,030  $  (1,527) 100.6   LTL     $ 317,576  $  10,678   96.6
    -----------------------------------  ------------------------------------
    LOG    $  34,831  $   1,854   94.7   LOG     $  39,074  $   1,551   96.0
    -----------------------------------  ------------------------------------
    TL     $  16,456  $     448   97.3   TL      $  16,847  $     700   95.8
    -----------------------------------  ------------------------------------



                    LTL SEGMENT - Statistical Information
                                 (Unaudited)

             ---------------------------------------------------
                            For the quarter ended
                                June 30, 2009
                                -------------
             ---------------------------------------------------
                                         LTL          Q. over Q.
             ($U.S.)                   Division        % Change
             ---------------------------------------------------
             Revenue (000's)      $     131,667      * (18.7%)
             ---------------------------------------------------
             # of Shipments           955,708           (7.9%)
             ---------------------------------------------------
             Weight (000's lbs)       1,387,349          (12.6%)
             ---------------------------------------------------
             Revenue per shipment $      137.77      * (11.8%)
             ---------------------------------------------------
             Revenue per CWT      $        9.49      *  (7.0%)
             ---------------------------------------------------


             ---------------------------------------------------
                           For the six-months ended
                                June 30, 2009
                                -------------
             ---------------------------------------------------
                                         LTL          Q. over Q.
             ($U.S.)                   Division        % Change
             ---------------------------------------------------
             Revenue (000's)      $     247,030      * (18.2%)
             ---------------------------------------------------
             # of Shipments         1,809,376          (10.2%)
             ---------------------------------------------------
             Weight (000's lbs)       2,664,016          (13.4%)
             ---------------------------------------------------
             Revenue per shipment $      136.53      *  (8.9%)
             ---------------------------------------------------
             Revenue per CWT      $        9.27      *  (5.5%)
             ---------------------------------------------------

    * All % changes have been normalized for the impact of foreign exchange
        fluctuation, period over period

SOURCE Vitran Corporation Inc.

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