Pro-Trans Ventures Inc.
TSX VENTURE : PVI

Pro-Trans Ventures Inc.

November 22, 2013 10:49 ET

Pro-Trans Reports Third Quarter 2013 Financial Results

CALGARY, ALBERTA--(Marketwired - Nov. 22, 2013) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

Pro-Trans Ventures Inc. (the "Company") (TSX VENTURE:PVI) today reported financial results for the Company's three and nine months ended September 30, 2013.

"We are pleased with the results for the quarter and the continued profitability trend we have seen throughout this year," stated Mr. Martin Carsky, President and Chief Executive Officer of the Company. "From the fourth quarter of 2012, our worst quarter in the Company's history, we have shown steady improvement throughout each quarter this year. The credit for that lies with our unique business model supported by our talented and dedicated team at Maple Leaf Loading who have worked hard during a challenging period for the Company," added Mr. Carsky.

THIRD QUARTER HIGHLIGHTS

  • Revenue for the third quarter was $15.4 million as compared to $15.5 million in the second quarter
  • EBITDA for the third quarter increased to $1.6 million from $1.2 million in the second quarter
  • Comprehensive income for the third quarter was $0.3 million as compared to a loss of $0.2 million in the second quarter
  • Successfully re-negotiated contract terms with a key customer
  • Completed a short term contract with a new client for an end-to-end logistics solution
  • Extended the repayment term of our convertible debenture

To view the graph "Quarterly EBITDA," please visit the following link: http://media3.marketwire.com/docs/pro-trans_ventures_graph01_nov22.pdf

Summary Financial Results
(millions of Cdn. Dollars) Q4 FY2012 Q1 FY2013 Q2 FY2013 Q3 FY2013
Revenue 10.3 13.3 15.5 15.4
EBITDA (1.2 ) 0.7 1.2 1.6
Comprehensive income/(loss) (1.8 ) (0.3 ) (0.2 ) 0.3

The full version of the Company's financial statements and Management's Discussion and Analysis can be viewed on the Company's website at www.protransventures.com, or on SEDAR at www.sedar.com. All financial information is prepared in accordance with IFRS and all dollar amounts are expressed in Canadian dollars unless otherwise indicated.

OUTLOOK

The financial results for the third quarter continue to demonstrate the trend of improved operating performance shown during 2013 as compared to the results in the fourth quarter of 2012.

Revenues for the third quarter reflect the increased capacity resulting from the arrival of additional power trailers, which enable the Company to more efficiently haul 110 tonnes of coal per load. As well, the revenues include the short term contract with a new client for an end-to-end logistics solution. The business with this new client was concluded at the end of the quarter and the Company does not expect any significant revenue from this customer in the near term.

The Company plans to continue to add additional power trailers to its fleet during the fourth quarter of 2013 and the first quarter of 2014 to service its client's requirement for increased volumes. To effectively manage maintenance of these power trailers, the Company expects to complete the fully integrated onsite maintenance facility, started during the second quarter of 2013, by the end of November 2013. The Company expects this facility to support the increased uptime of the fleet combined with a continued focus on safety from a more robust preventative maintenance program.

The Company continues to closely review its profitability by line of business for each customer, proposing adjustments where necessary. To broaden its revenue and customer base, the Company continues to prospect new customers for brownfield and greenfield opportunities.

ABOUT PRO-TRANS

Pro-Trans is a Calgary based public company listed on the TSX Venture Exchange. The Company is actively involved in specialized transportation and logistics services within Western Canada, primarily through its wholly owned subsidiary, Maple Leaf Loading Ltd. ("Maple Leaf"), based in Prince George, BC. Maple Leaf, a mining support company, offers specialized transportation services related to the management, handling, and transportation of coal and ore concentrates for customers in the mining industry in BC, Alberta, and the Yukon.

NON-IFRS MEASURES

The discussion of financial results in this press release includes reference to EBITDA which is a non-IFRS measure. The Company provides this measure as additional information regarding the Company's financial results and performance. Please refer to the Company's MD&A for the three and nine months ended September 30, 2013 for a definition and reconciliation of this measures to the Company's financial statements.

FORWARD-LOOKING INFORMATION

This press release contains certain statements or disclosures relating to Pro-Trans that are based on the expectations of Pro-Trans as well as assumptions made by and information currently available to Pro-Trans which may constitute forward-looking information under applicable securities laws. In particular, this press release contains forward-looking information related to the future financial and operational performance of the Corporation with respect to the Corporations customer base, the addition of new equipment and the completion of an on-site maintenance facility. Such forward looking information involves material assumptions and known and unknown risks and uncertainties, certain of which are beyond Pro-Trans' control. Many factors could cause the performance or achievement by Pro-Trans to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking information. Pro-Trans' Annual Information Form, Management's Discussion and Analysis and other documents filed with securities regulatory authorities (accessible through the SEDAR website at www.sedar.com) describe certain risks, material assumptions and other factors that could influence actual results. Pro-Trans disclaims any intention or obligation to publicly update or revise any forward looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

Neither the TSX Venture Exchange, nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss)
Three Months Ended September 30, Nine Months Ended September 30,
2013 2012 2013 2012
$ $ $ $
Revenue:
Operating 15,301,310 18,003,198 43,993,341 53,420,509
Leasing 75,141 75,140 225,421 225,420
15,376,451 18,078,338 44,218,762 53,645,929
Expenses:
Operating 11,760,893 13,499,372 34,560,144 40,576,793
Depreciation 895,483 750,330 2,578,885 2,142,300
Equipment rentals and leases 969,718 1,213,967 3,021,017 3,511,663
General and administrative 988,916 1,065,778 3,093,854 3,108,298
Amortization of intangible asset 50,000 50,000 150,000 150,000
Net finance costs 421,541 382,430 1,221,302 1,126,966
Gain on sale of property, plant and equipment (31,599 ) (171,591 ) (168,073 ) (181,706 )
Share-based compensation 14,951 - 79,797 -
Income (loss) before income taxes 306,548 1,288,052 (318,164 ) 3,211,615
Income tax expense (benefit)
Current - 244,435 - 512,034
Deferred 87,500 38,719 (45,500 ) 293,359
Net income (loss) and comprehensive income (loss) for the period 219,048 1,004,898 (272,664 ) 2,406,222
Weighted average shares outstanding 26,641,033 26,256,903 26,438,068 26,256,903
Earnings (loss) per share - basic $0.01 $0.04 ($0.01 ) $0.10
Earnings (loss) per share - diluted $0.01 $0.03 ($0.01 ) $0.07
Condensed Consolidated Interim Statements of Financial Position
September 30, December 31,
2013 2012
$ $
Assets
Current assets:
Cash 264,700 7,956
Accounts receivable 7,793,119 4,249,118
Corporate income taxes receivable 244,564 1,006,502
Inventories 1,605,414 1,332,229
Prepaid expenses and deposits 1,850,354 1,684,438
11,758,151 8,280,243
Prepaid deposits on leases 173,610 260,726
Property, plant and equipment 23,062,637 22,811,252
Goodwill and intangible assets 8,823,754 8,973,754
TOTAL ASSETS 43,818,152 40,325,975
September 30, December 31,
2013 2012
$ $
Liabilities and Shareholders' Equity
Current liabilities
Bank indebtedness 3,780,229 134,280
Accounts payable and accrued liabilities 6,708,546 4,970,648
Deferred revenue and customer deposits 407,542 1,562,541
Current portion of long term debt 410,674 291,566
Current portion of obligations under capital leases 14,425,077 13,474,622
Current portion of due to former shareholder 119,549 159,319
Demand loans payable 475,592 571,442
26,327,209 21,164,418
Non-current liabilities
Long term debt - 80,935
Obligations under capital leases - 1,473,227
Convertible debenture loan 4,783,759 4,609,124
Payable to former shareholders of subsidiary - 79,720
Deferred income taxes 1,806,194 1,851,694
32,917,162 29,259,118
Shareholders' equity
Share capital - common shares 8,879,419 8,851,069
Contributed surplus 1,603,348 1,524,901
Equity component of convertible debt 525,000 525,000
Retained earnings (deficit) (106,777 ) 165,887
10,900,990 11,066,857
Commitments
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 43,818,152 40,325,975
Condensed Consolidated Interim Statements of Changes in Shareholders' Equity
Equity
Portion Retained
Common Shares Contributed Convertible Earnings
Number Amount Surplus Debt (Deficit) Total
$ $ $ $ $
Balances January 1, 2013 26,256,903 8,851,069 1,524,901 525,000 165,887 11,066,857
Grant of options 79,797 79,797
Exercise of options 270,000 28,350 (1,350 ) 27,000
Shares issued on conversion of warrants 1,500,000 - -
Net income (loss) and comprehensive income (loss) for the period (272,664 ) (272,664 )
Balances September 30, 2013 28,026,903 8,879,419 1,603,348 525,000 (106,777 ) 10,900,990
Balances January 1, 2012 23,810,000 8,088,140 2,250,330 525,000 (478,990 ) 10,384,480
Shares issued on conversion of warrants 2,446,903 762,929 (762,929 )
Net income and comprehensive income for the period 1,401,324 1,401,324
Balances September 30, 2012 26,256,903 8,851,069 1,487,401 525,000 1,927,232 11,785,804
Condensed Consolidated Interim Statements of Cashflow
Three Months Ended September 30, Nine Months Ended September 30,
2013 2012 2013 2012
Cash provided by (used in): $ $ $ $
Operations:
Net income (loss) for the period 219,048 1,004,898 (272,664 ) 2,406,222
Adjustments for:
Depreciation and amortization 895,483 750,330 2,578,885 2,142,300
Finance costs 421,541 382,430 1,221,302 1,126,966
Gain on sale of property, plant and equipment (31,599 ) (171,591 ) (168,073 ) (181,706 )
Share-based compensation 14,951 - 79,797 -
Change in prepaid deposits on leases (87,565 ) 29,841 87,116 89,522
Amortization of intangible assets 50,000 50,000 150,000 150,000
Income tax expense (benefit) 87,500 283,154 (45,500 ) 805,393
Changes in items of working capital:
Accounts receivable (526,566 ) (1,503,148 ) (3,544,001 ) (3,166,913 )
Inventories (309,288 ) 67,408 (273,185 ) 46,384
Prepaid expenses and deposits 128,368 (624,274 ) (165,916 ) (645,976 )
Accounts payable and accrued liabilities 412,428 (2,027,035 ) 1,737,898 157,786
Deferred revenue and customer deposits (577,500 ) - (1,154,999 ) -
Interest paid (364,557 ) (320,410 ) (1,046,667 ) (936,895 )
Income tax recovered (paid) 729,678 (127,686 ) 761,938 (388,807 )
Net cash provided by (used in) operating activities 1,061,922 (2,206,083 ) (54,069 ) 1,604,276
Financing:
Proceeds of bank indebtedness 593,361 - 3,645,948 -
Repayment of demand loans payable (32,020 ) (31,744 ) (95,850 ) (95,031 )
Proceeds of long term debt - - 298,464 1,286,947
Repayment of long-term debt (57,062 ) (263,701 ) (260,291 ) (679,065 )
Proceeds from capital lease obligations 953,500 43,808 2,155,388 43,808
Repayment of obligations under capital leases (897,555 ) (1,327,519 ) (2,678,160 ) (3,043,464 )
Repayments to former shareholders of subsidiary (53,107 ) (39,830 ) (119,490 ) (273,509 )
Proceeds on exercise of stock options - - 27,000 -
Net cash provided by (used in) financing activities 507,117 (1,618,986 ) 2,973,009 (2,760,314 )
Investing:
Proceeds on disposal of property, plant and equipment 1,195,681 979,830 2,147,368 1,030,830
Purchase of property, plant and equipment (2,507,007 ) (291,136 ) (4,809,564 ) (1,684,252 )
Net cash used in investing activities (1,311,326 ) 688,694 (2,662,196 ) (653,422 )
Increase (decrease) in cash 257,713 (3,136,375 ) 256,744 (1,809,460 )
Cash, beginning of period 6,987 1,389,576 7,956 62,661
Cash, end of period 264,700 (1,746,799 ) 264,700 (1,746,799 )

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