ATS Andlauer Income Fund

ATS Andlauer Income Fund

May 03, 2007 13:32 ET

ATS Andlauer Income Fund Announces Strong First Quarter Results for 2007

- Revenue grows 6.8% - EBITDA up 18.2% - Distributable cash grows by 18.5% per trust unit - Payout ratio 71%

TORONTO, ONTARIO--(CCNMatthews - May 3, 2007) - ATS Andlauer Income Fund (the "Fund")(TSX:ATS.UN) announced today strong results for the first quarter ended March 31, 2007.

"The Fund began 2007 with strong operational and financial performances as a result of continued focus on the management of our business and solid organic growth for the three months ended March 31, 2007," said Michael Andlauer, President and Chief Executive Officer. "We are encouraged by this performance, which features 6.8% growth in revenue, 18.2% growth in EBITDA, 18.5% increase in distributable cash and a 20.3% increase in aggregate distributions declared compared to our first quarter a year ago."

Three months ended
March 31,
2007 2006
(unaudited) (unaudited)
($ thousands, except per Unit amounts)

Earnings Statement Highlights
Revenue 44,414 41,574
Gross margin(1) 16,504 15,635
Gross margin percentage (1) 37.16% 37.61%
Income before non-controlling interest 3,143 2,396
EBITDA (2) 4,807 4,068

Income per Unit
Basic 0.271 0.206
Diluted 0.271 0.206


Balance Sheet Highlights
Total assets 124,293 128,238
Total liabilities 39,694 42,533
Distributions declared per Unit 0.2922 0.2430
(1) See Non-GAAP Measures

Revenue for the three months ended March 31, 2007 was $44.4 million compared to $41.6 million for the same period in 2006, an increase of $2.8 million or 6.83%. The increase was largely the result of the Pharmaceutical and Healthcare vertical which posted growth of $1.8 million in the period ended March 31, 2007 compared to the same period in 2006, with the Entertainment and Consumer Product verticals contributing $1.0 million.

Air freight forwarding and ground revenue excluding fuel surcharges increased by $1.0 million and $1.5 million respectively in the three month period ended March 31, 2007 compared to the same period in 2006. Total fuel surcharge revenue increased by $0.3 million from $3.5 million in 2006 to $3.8 million in 2007.

Cost of sales increased from $25.9 million for the three months ended March 31, 2006 to $27.9 million for the three months ended March 31, 2007; cost of sales as a percentage of revenue increased from 62.39% for the three months ended March 31, 2006 to 62.84% for the three months ended March 31, 2007.

Linehaul and pickup and delivery costs as a percentage of revenue remained fairly consistent quarter over quarter, while handling costs as a percentage of revenue, increased due to higher labour costs in Alberta compared to 2006. As a result, gross margin decreased from 37.61% for the three months ended March 31, 2006 to 37.16% for the same period in 2007.


($ thousands, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
except per unit 2007 2006 2006 2006 2006 2005
amounts) (Q1 07) (Q4 06) (Q3 06) (Q2 06) (Q1 06) (Q4 05)

Revenue 44,414 50,789 42,540 40,775 41,574 51,053
Gross margin (1) 16,504 19,462 15,828 15,289 15,635 20,913
EBITDA (1) 4,807 7,964 5,622 4,096 4,068 9,369
Income before
interest 3,143 6,196 3,974 2,436 2,396 7,750

Income per Unit
Basic 0.271 0.534 0.342 0.210 0.206 0.666
Diluted 0.271 0.533 0.342 0.210 0.206 0.666

Cash and cash
equivalents 753 265 32 1,024 441 264
Total assets 124,293 129,650 124,628 123,058 128,238 132,409
Total current
liabilities 13,408 18,048 12,229 12,165 11,893 19,047
Long-term debt 3,183 3,349 3,749 3,000 7,364 3,948
Unitholders' equity 84,599 85,097 85,401 84,780 85,705 86,054
interest 23,103 23,156 23,249 23,113 23,276 23,360
(1) See Non-GAAP Measures

"We are seeing very positive momentum so far this year. ATSers continue to deliver with excellence, as evidenced in our key operating and financial indicators," stated Michael Andlauer, President and Chief Executive Officer.

Total cash distributions for the quarter were $3.4 million or $0.292 per trust unit resulting in a cash distribution payout ratio of 71%. On an annualized basis, distributions have increased from the prospectus estimate of $0.975 to $1.1688 per trust unit.

The Fund's income before non-controlling interest increased by 31.2% to $3.1 million in the three month period ending March 31, 2007, compared with $2.4 million for the same period 2006.

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 for the period ended March 31, 2007, along with additional information relating to the Fund, including all public filings, are available on and on the Fund's website at


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 ( or at the Fund's website ( 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.


Gross margin is a non-GAAP measure that represents the contribution of operating activities to earnings. It is considered a key measure by management as it reflects the ability of the Fund to generate earnings necessary to fund overhead costs, capital investment and distributions.

EBITDA is a non-GAAP measure that management considers a key measure as an indicator of the ability of the Fund to meet its capital and financing commitments. EBITDA is not a recognized measure under GAAP and does not have a standardized meaning under GAAP and therefore may not be comparable to similar measures presented by other issuers.

Distributable cash are to cash available for distribution to unitholders in accordance with the distribution policies of the Fund described in the prospectus. Distributable cash of the Fund is a measure generally used by Canadian open-ended trusts as an indicator of financial performance and Management believes that prospective investors may consider the cash distributed by the Fund relative to the price of the Units when assessing an investment in Units. The Fund's method of determining distributable cash is derived from EBITDA, which in turn is derived from net income, a measure recognized under GAAP and is also reconciled to cash from operating activities.

Cash distribution payout ratio is a non-GAAP measure that compares distributions paid to available distributable cash which management considers an indicator of the Fund's conservatism and its ability to make distributions to unitholders at current rates in the future.

Contact Information

  • ATS Andlauer Transportation Services GP Inc.
    Michael Andlauer
    President & Chief Executive Officer
    (416) 798-1379 ext 200
    ATS Andlauer Transportation Services GP Inc.
    Brian Mascarenhas
    Vice President & Chief Financial Officer
    (416) 798-1379 ext 200