61% Increase in Net Income Highlights a Record Quarter for Vitran; 11th Consecutive Quarter of Improved Net Income.TORONTO Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing -- Vitran Corporation Inc. (AMX AMX American Motors Experimental AMX Aeromexico Aerovias de Mexico (ICAO code) AMX Air Mobility Express AMX Amberjacks (FAO fish species code) AMX Alabama Motor eXpress : VVN VVN Virtual Voice Network VVN Very Very Nice (gaming) VVN Vereniging voor de Verenigde Naties (Dutch) , TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension : VTN VTN Victoria Telecommunity Network VTN Vitronectin VTN VeriSign Trust Network VTN Valentine, Nebraska (Airport Code) VTN Vatan (Bosnian Moslem Party, Kosovo) VTN Virtual Telephone Number ), a North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. transportation and logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. firm, today announced record quarterly results for the three-month period ended June June: see month. 30, 2004. During the 2004 second quarter, Vitran achieved a 61% period-over-period increase in net income, earning $4.4 million, or $0.34 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share ($0.36 per basic share), on revenues of $93.9 million, a 12% increase. In the comparable 2003 three-month period, Vitran had net income of $2.7 million, or $0.27 per diluted share ($0.29 per basic share) on revenues of $84.1 million (all figures reported in $U.S.). As previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). , Vitran adopted the fair value method of expensing stock options. During the quarter, the Company recorded a $58,000 non-cash stock option expense. Per share results for the second quarter are based on 12.3 million basic (12.8 million diluted) and 9.5 million basic (9.9 million diluted) weighted average shares outstanding during the 2004 and 2003 three-month periods, respectively. The increase in the year-over-year weighted average share count reflects the Company's equity offering in December December: see month. 2003. "We were able to build on the momentum we established late in the first quarter at all operating segments and achieve record quarterly results. We lowered our consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: operating ratio Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: (OR) to 93.8% from 95.2% in the year-ago quarter, and achieved double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. revenue growth and strong operating performances at all three of our business segments, resulting in Vitran's 11th quarter in a row with a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. net income comparison versus the same period in the prior year," stated President and Chief Executive Officer Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a E. Gaetz. For the six-month period ended June 30, 2004, despite the impact of the CN strike on 2004 first quarter results, Vitran achieved a 46% increase in net income to $6.0 million, or $0.47 per diluted share ($0.50 per basic share), on revenues of $181.1 million. In the first half of 2003, the Company recorded net income of $4.1 million, or $0.42 per diluted share ($0.43 per basic share), on $161.6 million in revenues. Per share results for the first six months of 2004 are based on 12.2 million basic (12.7 million diluted) weighted average shares outstanding, compared to 9.5 million basic (9.9 million diluted) weighted average shares outstanding in the first half of 2003. The year-over-year difference in the share count is primarily a result of Vitran's aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. December 2003 equity offering. Segmented Results Income from operations for Vitran's LTL LTL - Linear Temporal Logic (less than truckload Less-Than-Truckload (LTL) shipping is the transportation of relatively small freight. The alternatives to LTL carriers are parcel carriers or full truckload carriers. Parcel carriers usually handle small packages and freight that can be broken down in to units less than 150 US ) segment during the 2004 second quarter increased 28% to $5.5 million, with approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 10% revenue growth at both the Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. and the U.S. divisions, compared to the 2003 second quarter. The consolidated LTL OR improved significantly - both sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen and year-over-year - to 92.8% during the period, compared to 93.8% in the 2003 second quarter. The Vitran Logistics and Truckload truck·load n. The quantity that a truck can hold. truckload n → camión m lleno segments also achieved significantly improved profitability during the 2004 second quarter. The Truckload segment increased revenue 8% to $9.2 million, and posted income from operations of $0.5 million in 2004, compared to $0.2 million in the 2003 second quarter. Revenue and income from operations improvements were primarily driven by better yield management. The Logistics segment increased revenue 23% to $8.8 million, and recorded income from operations of $0.4 million for the 2004 second quarter, compared to $0.2 million in the 2003 three-month period. A new distribution centre in the Toronto region commenced operations during the quarter, contributing to the improvement at the Logistics segment. Mr. Gaetz concluded, "Our balance sheet is healthier than it has ever been, as we have lowered long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. an additional 15% this year, while maintaining a strong cash position. We remain committed to our acquisition strategy to further expand Vitran's North American freight The price or compensation paid for the transportation of goods by a carrier. Freight is also applied to the goods transported by such carriers. The liability of a carrier for freight damaged, lost, or destroyed during shipment is determined by contract, statute, or distribution network, and continue to adhere to adhere to verb 1. follow, keep, maintain, respect, observe, be true, fulfil, obey, heed, keep to, abide by, be loyal, mind, be constant, be faithful 2. our disciplined acquisition criteria criteria (krītēr´ē  ),n. when identifying potential targets." Guidance Based on the results from the first half of 2004, Vitran management is increasing its full year EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. guidance range to $1.05 to $1.12 per diluted share from a range of $0.98 to $1.05 per diluted share. About Vitran Corporation Inc. Vitran Corporation Inc. is a North American group of transportation companies offering less-than-truckload, logistics, truckload, and freight brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. services. To find out more about Vitran Corporation Inc. (AMX: VVN, TSX: VTN), visit the website at www.vitran.com. Information in this news announcement relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc projected growth, improvements in productivity and future results constitutes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Actual results in future periods may differ materially from the forward-looking statements because of a number of risks and uncertainties, including but not limited to economic factors, demand for the Company's services, fuel price fluctuations, the availability of employee drivers and independent contractors A person who contracts to do work for another person according to his or her own processes and methods; the contractor is not subject to another's control except for what is specified in a mutually binding agreement for a specific job. , risks associated with geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. expansion, capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. , claims exposure and insurance costs, competition and environmental hazards 'Environmental hazard' is a generic term for any situation or state of events which poses a threat to the surrounding environment. This term incorporates topics like pollution and Natural Hazards such as storms and earthquakes. . Additional information about these and other factors that could affect the Company's business is set forth in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and other filings with the Securities and Exchange Commission. REMINDER: Vitran management will conduct a conference call today, July July: see month. 22nd at 11:00 a.m. (Eastern), to discuss the Company's 2004 second quarter results. Conference call dial-in: 888/793-1728 Live Webcast: http://www.vcall.com/CEPage.asp?ID=88547
(tables follow)
Vitran Corporation Inc.
Consolidated Balance Sheets
(in thousands of United States dollars)
June 30, 2004 Dec. 31, 2003
Assets (unaudited)
Current assets:
Cash $ 7,961 $ 12,417
Marketable securities 26,533 26,996
Accounts receivable 42,521 35,685
Inventory, deposits and prepaids 5,163 5,847
Future income tax assets 4,576 4,101
--------- ----------
86,754 85,046
Capital assets 34,978 35,102
Goodwill 44,708 44,865
--------- ----------
$ 166,440 $ 165,013
========= ==========
Liabilities and Shareholders' Equity
Current liabilities:
Account payable and accrued liabilities $ 33,562 $ 34,092
Income and other taxes payable 3,948 4,007
Current portion of long-term debt 8,674 8,313
--------- ----------
46,184 46,412
Long-term debt 13,591 17,931
Future income tax liabilities 3,060 2,715
Shareholders' equity:
Capital Stock 60,257 59,358
Contributed surplus 58 --
Retained earnings 46,065 40,029
Cumulative translation adjustment (2,774) (1,432)
--------- ----------
103,605 97,955
--------- ----------
$ 166,440 $ 165,013
========= ==========
(Statements of Income follows)
VITRAN CORPORATION INC.
Statements Of Income
(unaudited)
(in thousands of United States dollars except for share and per
share amounts)
Three Months Six Months
Ended June 30, Ended June 30,
2004 2003 2004 2003
---- ---- ---- ----
Revenues $ 93,931 $ 84,135 $ 181,077 $ 161,600
Operating expenses 78,665 70,656 154,239 137,740
Selling, general
and administrative
expenses 8,201 8,042 16,364 14,975
---------- ---------- ---------- ---------
86,866 78,698 170,603 152,715
---------- ---------- ---------- ---------
Income from operations
before depreciation 7,065 5,437 10,474 8,889
Depreciation expense 1,232 1,364 2,540 2,733
---------- ---------- ---------- ---------
Income from operations
before undernoted 5,833 4,073 7,934 6,156
Interest expense, net (37) (354) (80) (807)
Gain (loss) on sale of
capital assets 37 (140) 113 (100)
---------- ---------- ---------- ---------
-- (494) 33 (907)
Income from operations
before income taxes 5,833 3,579 7,967 5,249
Income taxes 1,446 855 1,931 1,108
---------- ---------- ---------- ---------
Net income $ 4,387 $ 2,724 $ 6,036 $ 4,141
========== ========== ========== =========
Earnings per share:
Basic $ 0.36 $ 0.29 $ 0.50 $ 0.43
========== ========== ========== =========
Diluted $ 0.34 $ 0.27 $ 0.47 $ 0.42
========== ========== ========== =========
Weighted average number
of shares
Basic 12,266,703 9,511,133 12,190,998 9,533,202
Diluted 12,771,784 9,910,894 12,716,553 9,934,518
(Statement of Cash Flows follows)
VITRAN CORPORATION INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands of United States dollars)
Three months Three months Six months Six months
Ended Ended Ended Ended
Jun. 30, Jun. 30, Jun. 30, Jun. 30,
2004 2003 2004 2003
Cash provided by
(used in):
Operations:
Net income $ 4,387 $ 2,724 $ 6,036 $ 4,141
Items not
involving cash
from operations
Depreciation
and
amortization 1,232 1,364 2,540 2,733
Future income
taxes (465) (38) (169) (280)
Stock based
compensation
expense 58 -- 58 --
Loss (gain) on
sale of capital
assets (37) 140 (113) 100
-------- --------- -------- --------
5,175 4,190 8,352 6,694
Change in non-cash
working capital
components 3,448 (1,745) (6,741) (4,006)
-------- --------- -------- --------
8,623 2,445 1,611 2,688
Investments:
Purchase of capital
assets (1,443) (310) (3,078) (1,592)
Proceeds on sale of
capital assets 79 123 214 291
Purchase of
marketable
securities (146) -- (291) --
-------- --------- -------- --------
(1,510) (187) (3,155) (1,301)
Financing:
Repayment of long-
term debt (2,168) (2,411) (3,977) (3,549)
Issue of Class A
Voting shares
upon exercise of
stock options 548 79 899 171
Repurchase of Class
A Voting shares -- (319) -- (644)
-------- --------- -------- --------
(1,620) (2,651) (3,078) (4,022)
Effect of
translation
adjustment on cash 108 (448) 166 (705)
-------- --------- -------- --------
Increase (decrease)
in cash position 5,601 (841) (4,456) (3,340)
Cash position,
beginning of period 2,360 5,503 12,417 8,002
-------- --------- -------- --------
Cash position, end
of period $ 7,961 $ 4,662 $ 7,961 $ 4,662
======== ========= ======== ========
Change in non-cash
working capital
components:
Accounts
receivable $ (1,832) $ (1,342) $ (6,836) $ (7,094)
Inventory, deposits
and prepaid
expenses 690 713 684 1,054
Income and other
taxes
recoverable/
payable 1,226 468 (59) 530
Accounts payable
and accrued
liabilities 3,364 (1,584) (530) 1,503
-------- --------- -------- --------
$ 3,448 $ (1,745) $ (6,741) $ (4,006)
======== ========= ======== ========
(additional financial information follows)
LTL Statistical Information - U.S. and CDN Divisions
For the quarter ended
June 30, 2004
----------------------------------------------------------------------
($U.S.) U.S. LTL Q. over Q.
Division % Change
----------------------------------------------------------------------
Revenue (000's) $44,538 9.8
----------------------------------------------------------------------
No. of Shipments 393,170 4.0
----------------------------------------------------------------------
Weight (000's lbs) 559,469 9.9
----------------------------------------------------------------------
Revenue per shipment $113.28 5.5
----------------------------------------------------------------------
Revenue per CWT $ 7.96 (0.1)
----------------------------------------------------------------------
----------------------------------------------------------------------
($CDN) CDN LTL Q. over Q.
Division % Change
----------------------------------------------------------------------
Revenue (000's) $42,608 10.3
----------------------------------------------------------------------
No. of Shipments 234,423 8.8
----------------------------------------------------------------------
Weight (000's lbs) 453,153 5.8
----------------------------------------------------------------------
Revenue per shipment $181.76 1.4
----------------------------------------------------------------------
Revenue per CWT $ 9.40 4.2
----------------------------------------------------------------------
Supplementary Segmented Financial Information
(000's of $U.S.)
For the quarter ended
June 30, 2004
----------------------------------------------------------------------
Revenue Inc. from OR%
Operations
----------------------------------------------------------------------
LTL 75,958 5,490 92.8
----------------------------------------------------------------------
LOG 8,768 442 95.0
----------------------------------------------------------------------
TL 9,205 487 94.7
----------------------------------------------------------------------
For the quarter ended
June 30, 2003
----------------------------------------------------------------------
Revenue Inc. from OR%
Operations
----------------------------------------------------------------------
LTL 68,495 4,279 93.8
----------------------------------------------------------------------
LOG 7,124 192 97.3
----------------------------------------------------------------------
TL 8,516 238 97.2
----------------------------------------------------------------------
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