ATS Andlauer Income Fund
TSX : ATS.UN

ATS Andlauer Income Fund

March 22, 2006 09:00 ET

ATS Andlauer Income Fund Announces Results For Year End December 31, 2005

TORONTO, ONTARIO--(CCNMatthews - March 22, 2006) - ATS Andlauer Income Fund (the "Fund") (TSX:ATS.UN) announced today results for the year ending December 31, 2005 which is comprised of the results of operations for the three month period from the commencement of operations on September 30, 2005 to December 31, 2005.

The Fund was established on August 22, 2005 and indirectly acquired certain of the net assets of the Canadian transportation solutions business (the "Business") of ATS Andlauer Transportation Services Inc. (the "Vendor") through the acquisition of an indirect 80.1% interest in ATS Andlauer Transportation Services Limited Partnership ("ATS Andlauer LP") on September 30, 2005.

To provide more meaningful information to the reader, this press release refers to the consolidated operating results of the Fund for the three month period ending December 31, 2005 compared to the pre-acquisition operating results of the Business for the three month period ending December 31, 2004. The pre-acquisition operating results of the Business are unaudited and readers are cautioned that the operating results presented for the three month period ended December 31, 2004 are not the results of the Fund.



Highlights
Three Months Ended December 31,
2005 2004
Pre-Acquisition
--------------------------------------------------------------------
(unaudited)
($ thousands)

Revenue 51,053 42,843
Cost of goods sold 30,140 28,220
--------------------------------------------------------------------
Gross margin 20,913 14,623
Gross margin % 40.96% 34.13%

Terminal 7,597 6,647
Selling 1,240 1,473
Administration 2,707 1,874
Amortization 1,599 195
--------------------------------------------------------------------
7,770 4,434

Interest expense 20 54
--------------------------------------------------------------------
Income before non-controlling
interest 7,750 4,380
--------------------------------------------------------------------
--------------------------------------------------------------------



The Fund delivered a 19.2% increase in revenues of $51.1 million for the three month period ended December 31, 2005 compared with pre-acquisition revenues of the Business of $42.8 million for the three month period ended December 31, 2004. Total gross margin was $20.9 million for the period, an increase of 43.0% from the pre-acquisition gross margin of $14.6 million for the same period in 2004.

"The entire ATS team is to be applauded for their dedication and accomplishments in 2005. Operationally we have posted our best results ever and at the head office level have successfully completed our transition to an income trust. ATSers have worked hard to deliver strong operating results and deliver value to unitholders. Total cash distributions, including a special cash distribution, for the three month period ended December 31, 2005 were $0.581 per trust unit representing approximately 60% of the total annual distribution of $0.975 per trust unit contemplated in our initial public offering", commented Michael Andlauer, President and Chief Executive Officer.

Cash flow from operating activities was $11.5 million and available distributable cash was $9.1 million or $0.785 per Unit (trust units and exchangeable limited partnership units). Total cash distributions of $6.8 million or $0.581 per Unit were declared in the period, including a special cash distribution of $0.334 per Unit, resulting in a cash distribution payout ratio of 74%. Also declared in the period was a special non-cash distribution, in the form of trust units with a value of $0.065 per trust unit.

These special distributions are being made because available distributable cash generated through the fourth quarter, historically the strongest operational quarter of the business, exceeded regular distributions to be paid at the annualized rate of $0.081 per month. This excess was in part due to the historically strong fourth quarter coinciding with the Fund's short initial period of operations for income tax purposes. The special distributions will be paid on March 31, 2006 to unitholders of record at the close of business on December 31, 2005. The special non-cash distribution in the form of trust units will be distributed on a pro rata basis to unitholders of record on December 31, 2005 and will be included in unitholders' income for the 2005 calendar year. Immediately after the pro rata distribution of trust units, the number of outstanding trust units will be consolidated, such that each unitholder will hold, following the consolidation, the same number of trust units as before the non-cash distribution, and there will be no change in the total number of trust units outstanding.

The Fund's income before non-controlling interest increased by 76.9% to $7.8 million in the current period, compared with the pre-acquisition income before non-controlling interest of $4.4 million for the same period 2004. Fully diluted income per unit was $0.67 for the three month period ended December 31, 2005.

The Fund is an open-ended trust that holds, indirectly, securities of ATS Andlauer Transportation Services Limited Partnership ("ATS Andlauer LP"). ATS Andlauer LP is a leading single source transportation solutions provider in Canada, providing integrated trucking, courier, air freight and value added transportation and distribution services to consumer product companies. It operates facilities in 23 centres across Canada and serves approximately 1,400 diversified customers.

The Fund's units trade on the Toronto Stock Exchange under the symbol ATS.UN.

The Financial Statements and Management's Discussion and Analysis, along with additional information relating to the Fund, including all public filings, are available on www.sedar.com and on the Fund's website at www.atsincomefund.ca.

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 the Fund. These statements are based on suppositions and uncertainties as well as on management's evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Fund's 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. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Fund's operations or financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or at the Fund's website (www.ats.ca). Furthermore, the forward-looking statements contained in this news release are made as of the date of this news release, and the Fund undertakes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities law.

Contact Information

  • ATS Andlauer Transportation Services GP Inc.
    Michael Andlauer
    President & Chief Executive Officer
    (416) 798-1379 ext 200
    or
    ATS Andlauer Transportation Services GP Inc.
    Brian Mascarenhas
    Vice President & Chief Financial Officer
    (416) 798-1379 ext 200
    or
    ATS Andlauer Transportation Services GP Inc.
    Suite 600, 190 Attwell Drive
    Etobicoke, Ontario M9W 6H8