Vitran Corporation Inc.
TSX : VTN
NASDAQ : VTNC

Vitran Corporation Inc.

April 25, 2007 16:06 ET

Vitran Reports 2007 First Quarter Results

TORONTO, ONTARIO--(CCNMatthews - April 25, 2007) - Vitran Corporation Inc. (TSX:VTN)(NASDAQ:VTNC) -



REMINDER:
Vitran management will conduct a conference call and webcast
tomorrow, April 26, at 10:00 a.m. ET, to discuss the Company's
2007 first quarter results
Conference call dial-in: 800/530-8983
Live Webcast: www.vitran.com (select "Investor Relations")


Vitran Corporation Inc. (TSX:VTN)(NASDAQ:VTNC), a North American transportation and logistics firm, today announced financial results for the 2007 first quarter, the three-month period ended March 31, 2007 (all figures reported in $U.S.).

Vitran earned net income of $3.4 million, or $0.25 per diluted share, on revenue of $154.1 million for the quarter. The Company's operating results included the contribution of PJAX Freight System, which closed at the beginning of October 2006. In the comparable 2006 three-month period, Vitran recorded net income of $3.8 million, or $0.28 per diluted share ($0.29 including the cumulative effect of a change in accounting principle), on revenue of $115.1 million.

"2007 is off to a reasonably good start given the challenges of a soft economic environment," stated Vitran President and Chief Executive Officer Rick Gaetz. "Our newly acquired LTL companies are performing on-plan, Vitran's existing and new customers are seeing the value in our inter-regional sales offerings, and we are pleased with the additional business."

"The all-important integration of our U.S. LTL operating system - combining the best of Vitran's legacy I.T. system with the I.T. platform that PJAX had previously been utilizing - is proceeding well, and when the system is completed and fully operational later this year, it will allow us to operate more efficiently and effectively, especially with our inter-regional and cross-border service offerings," added Mr. Gaetz.

Segmented Results

Income from operations at Vitran's LTL (less-than-truckload) segment rose 22.9 percent to $6.2 million in the first quarter of 2007. LTL segment revenue grew 39.8 percent to $136.2 million, and the LTL OR (operating ratio) was 95.4 for the three-month period, versus an OR of 94.8 in the prior year quarter. In the 2007 first quarter, LTL revenue per hundredweight, including fuel surcharge, declined 0.6 percent. Excluding PJAX, which had shorter average lengths of haul, LTL revenue per hundredweight rose 2.8 percent during the period. Reflecting contributions from the newly acquired carriers, tonnage increased 40.7 percent, and the number of shipments rose by approximately 50 percent during the quarter. Revenue per shipment was lower by 6.5 percent during the three-month period.

The Logistics segment achieved income from operations in the 2007 first quarter of $440,000, compared to $514,000 in the year-ago period. The segment's OR was 95.4, versus 94.5 in the year-earlier quarter. The Truckload segment recorded income from operations during the quarter of $295,000 and its OR was 96.5.

Management's 2007 EPS Guidance

Vitran maintains its full-year 2007 diluted earnings per share (EPS) guidance of between $1.60 and $1.70.

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)

Mar. 31, 2007 Dec. 31, 2006
(unaudited) (audited)
Assets
Current assets:
Cash and cash equivalents $ 1,543 $ 1,454
Accounts receivable 73,061 66,051
Inventory, deposits and prepaid expenses 10,409 10,796
Income and other taxes receivable 2,885 -
Deferred income taxes 2,768 1,720
------------ ------------
90,666 80,021

Property and equipment 145,560 145,129
Intangible assets 15,327 15,888
Goodwill 118,400 117,146
Other assets 124 150
------------ ------------
$ 370,077 $ 358,334
------------ ------------
------------ ------------

Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 74,074 $ 67,916
Income and other taxes payable - 1,275
Current portion of long-term debt 15,758 15,724
------------ ------------
89,832 84,915

Long-term debt 92,536 93,139
Other liabilities 1,928 -
Deferred income taxes 8,693 6,983

Shareholders' equity:
Common shares 77,040 76,913
Additional paid-in capital 1,815 1,607
Retained earnings 94,320 90,933
Accumulated other comprehensive income 3,913 3,844
------------ ------------
177,088 173,297
------------ ------------
$ 370,077 $ 358,334
------------ ------------
------------ ------------



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

Three months Three months
Ended ended
Mar. 31, 2007 Mar. 31, 2006
Revenue $ 154,136 $ 115,127
Operating expenses 128,456 97,121
Selling, general and administrative expenses 15,099 10,743
Other expense (income) 29 (116)
Depreciation and amortization expense 4,945 2,407
------------ ------------
148,529 110,155

Income from operations before undernoted 5,607 4,972

Interest expense, net 2,064 176

Income from operations before income taxes 3,543 4,796

Income taxes 156 1,173
------------ ------------

Net income from continuing operations $ 3,387 $ 3,623

Cumulative effect of change in accounting
principle $ - $ 141
------------ ------------

Net income $ 3,387 $ 3,764
------------ ------------
------------ ------------

Income per share
Basic:
Net income from continuing operations $ 0.25 $ 0.29
Cumulative effect of change in accounting
principle $ - $ 0.01
Net income $ 0.25 $ 0.30

Diluted:
Net income from continuing operations $ 0.25 $ 0.28
Cumulative effect of change in accounting
principle $ - $ 0.01
Net income $ 0.25 $ 0.29

Weighted average number of shares:
Basic 13,438,065 12,652,075
------------ ------------
------------ ------------
Diluted 13,651,872 12,934,751
------------ ------------
------------ ------------



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

Three months Three months
ended ended
Mar. 31, 2007 Mar. 31, 2006
Cash provided by (used in):
Operations:
Net income $ 3,387 $ 3,764
Items not involving cash from operations:
Cumulative effect of change in accounting
principle - (141)
Depreciation and amortization expense 4,945 2,407
Deferred income taxes 967 377
Stock based compensation expense 208 190
Loss (gain) on sale of property and
equipment 29 (116)
Change in non-cash working capital
components (3,697) 1,955
------------ ------------
5,839 8,436

Investments:
Purchase of property and equipment (4,550) (1,878)
Proceeds on sale of property and equipment 71 170
Additional payment due to acquisition of
subsidiary (538) -
Acquisition of business assets - (2,251)
------------ ------------
(5,017) (3,959)

Financing:
Revolving credit facility 3,284 (2,985)
Repayment of long-term debt (2,255) (1,321)
Repayment of capital leases (1,640) -
Issue of Common Shares upon exercise of
stock options 127 321
------------ ------------
(484) (3,985)

Effect of translation adjustment on cash (249) (114)

Increase in cash position 89 378
Cash position, beginning of period 1,454 14,592
------------ ------------
Cash position, end of period $ 1,543 $ 14,970
------------ ------------
------------ ------------

Change in non-cash working capital
components:
Accounts receivable $ (7,010) $ (2,346)
Inventory, deposits and prepaid expenses 387 188
Income and other taxes payable (4,525) (412)
Other liabilities 1,928 -
Accounts payable and accrued liabilities 5,523 4,525
------------ ------------
$ (3,697) $ 1,955
------------ ------------
------------ ------------


Supplementary Segmented Financial Information
(000's of $U.S.) (Unaudited)

---------------------------------------------------------------------------
For the quarter ended For the quarter ended
March 31, 2007 March 31, 2006
---------------------------------------------------------------------------
Revenue Inc. from OR% Revenue Inc. from OR%
Operations Operations
---------------------------------------------------------------------------
LTL 136,157 6,230 95.4 LTL 97,423 5,068 94.8
---------------------------------------------------------------------------
LOG 9,663 440 95.4 LOG 9,412 514 94.5
---------------------------------------------------------------------------
TL 8,316 295 96.5 TL 8,292 410 95.1
---------------------------------------------------------------------------


LTL SEGMENT - Statistical Information
(Unaudited)

-------------------------------------------------------------
For the quarter ended
March 31, 2007
-------------------------------------------------------------
($U.S.) LTL Q. over Q.
Division % Change
-------------------------------------------------------------
Revenue (000's) $ 136,157 39.8
-------------------------------------------------------------
No. of Shipments 993,376 49.5
-------------------------------------------------------------
Weight (000's lbs) 1,467,846 40.7
-------------------------------------------------------------
Revenue per shipment $ 137.06 (6.5)
-------------------------------------------------------------
Revenue per CWT $ 9.28 (0.6)
-------------------------------------------------------------

Contact Information

  • Vitran Corporation Inc.
    Richard Gaetz
    President/CEO
    (416) 596-7664
    or
    Vitran Corporation Inc.
    Sean Washchuk
    VP Finance/CFO
    (416) 596-7664
    Website: www.vitran.com
    or
    Jaffoni & Collins Incorporated
    Robert Rinderman
    (212) 835-8500
    or
    Jaffoni & Collins Incorporated
    Steven Hecht
    (212) 835-8500
    Email: VTNC@jcir.com