Vitran Corporation Inc.
TSX : VTN
NASDAQ : VTNC

Vitran Corporation Inc.

July 19, 2007 06:36 ET

Vitran Reports 2007 Second Quarter Operating Results

TORONTO, ONTARIO--(Marketwire - July 19, 2007) - Vitran Corporation Inc. (TSX:VTN)(NASDAQ:VTNC) -



REMINDER:
Vitran management will conduct a conference call and webcast today, July 19
at 10:00 a.m. (ET), to discuss the Company's 2007 second quarter results.
Conference call dial-in: 800/728-2149
Live Webcast: www.vitran.com (select "Investor Relations")


Vitran Corporation Inc. (TSX:VTN)(NASDAQ:VTNC), a North American transportation and logistics firm, today announced quarterly financial results for the 2007 second quarter ended June 30, 2007 (all figures reported in $U.S.).

Vitran achieved net income of $5.5 million, or $0.41 per diluted share, on revenue of $170.1 million for the 2007 second quarter. In the comparable 2006 quarter, Vitran recorded net income of $5.8 million, or $0.45 per diluted share, on revenue of $123.6 million.

"Vitran continues to be impacted by overall softness in the North American economy, which has adversely affected LTL freight levels and to a lesser degree, industry pricing," stated Vitran President and Chief Executive Officer Rick Gaetz.

"Our recent acquisitions continue to perform on-plan and Vitran remains well-positioned for future growth with the expected launch of our new hybrid operating system and the completion of the operational integration -- both of which are slated to be finished later this year. Once these critical elements are in place we will be aggressively rolling out the Company's inter-regional cross-selling offerings, as well as focusing on further expanding Vitran's cross-border business. Lastly, we also continue to seek complementary, accretive LTL acquisitions in regions Vitran is not yet serving," concluded Mr. Gaetz.

During the six-month period ended June 30, 2007, Vitran achieved net income of $8.9 million, or $0.65 per diluted share, on revenue of $324.3 million. In the comparable first half of 2006, the Company reported net income of $9.5 million, or $0.74 per diluted share, on revenue of $238.8 million.

Segmented Results

Income from operations at Vitran's LTL (less-than-truckload) segment improved 12.0 percent during the 2007 second quarter to $9.0 million, and the LTL segment's OR (operating ratio) during the three-month period was 94.0, compared to a Q2 '06 OR of 92.4. The LTL segment posted a 58.0 percent increase in shipments and a 41.4 percent increase in tonnage. Revenue per hundredweight increased 1.3 percent and revenue per shipment fell 9.4 percent, during the period.

The Logistics segment achieved 15.2 percent growth in income from operations during the second quarter, and its OR improved to 93.4, compared to 93.8 for the 2006 period. Income from operations at the Truckload segment, which was also impacted by the sluggish freight environment during the three-month period, was $405,000, on an OR of 95.1, versus income from operations of $530,000 and an OR of 93.5, for the year-ago period.

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. (TSX:VTN)(NASDAQ:VTNC), 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." Additional information regarding non-GAAP measures is also included on Form 10K. 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.



Vitran Corporation Inc.
Consolidated Balance Sheets
(in thousands of United States dollars, US GAAP)

June 30, 2007 Dec. 31, 2006
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 1,047 $ 1,454
Accounts receivable 79,415 66,051
Inventory, deposits and prepaid expenses 9,713 10,796
Income taxes receivable 4,347 -
Deferred income taxes 3,227 1,720
------------ ------------
97,749 80,021

Property and equipment 154,770 145,129
Intangible assets 14,766 15,888
Goodwill 119,136 117,146
Other 125 150
------------ ------------
$ 386,546 $ 358,334
------------ ------------
------------ ------------

Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 72,584 $ 67,916
Income and other taxes payable - 1,275
Current portion of long-term debt 16,353 15,724
------------ ------------
88,937 84,915

Long-term debt 99,089 99,139
Other 2,089 -
Deferred income taxes 11,826 6,983

Shareholders' equity:
Common shares 77,168 76,913
Additional paid-in capital 2,018 1,607
Retained earnings 99,853 90,933
Accumulated other comprehensive income 5,566 3,844
------------ ------------
184,605 173,297
------------ ------------
$ 386,546 $ 358,334
------------ ------------
------------ ------------

(Statements of Income follows)



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

Three Months Six Months
Ended June 30, Ended June 30,

2007 2006 2007 2006
---- ---- ---- ----

Revenues $ 170,144 $ 123,641 $ 324,280 $ 238,768
Operating expenses 140,780 101,307 269,236 198,428
Selling, general and
administrative expenses 15,283 11,737 30,382 22,480
Other income (101) (40) (72) (156)
Depreciation and amortization
expense 5,109 2,509 10,054 4,916
---------- ---------- ---------- ----------
161,071 115,513 309,600 225,668

Income from operations before
undernoted 9,073 8,128 14,680 13,100

Interest expense, net 2,115 171 4,179 347

Income from operations before
income taxes 6,958 7,957 10,501 12,753

Income taxes 1,425 2,181 1,581 3,354
---------- ---------- ---------- ----------

Net income from continuing
operations $ 5,533 $ 5,776 $ 8,920 $ 9,399
---------- ---------- ---------- ----------

Cumulative effect of change
in accounting principle - - - 141

Net income $ 5,533 $ 5,776 $ 8,920 $ 9,540
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------

Income per share:

Basic
-----
Net income from continuing
operations $ 0.41 $ 0.45 $ 0.66 $ 0.74
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Cumulative effect of a change
in accounting principle - - - 0.01
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Net income $ 0.41 $ 0.45 $ 0.66 $ 0.75
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------

Diluted
-------
Net income from continuing
operations $ 0.41 $ 0.45 $ 0.65 $ 0.73
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Cumulative effect of change
in accounting principle - - - 0.01
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Net income $ 0.41 $ 0.45 $ 0.65 $ 0.74
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------

Weighted average number of
shares
Basic 13,463,374 12,732,644 13,450,790 12,692,582
----------- ---------- ---------- ----------
----------- ---------- ---------- ----------
Diluted 13,661,467 12,964,761 13,656,765 12,950,673
----------- ---------- ---------- ----------
----------- ---------- ---------- ----------


(Statements of Cash Flows follows)



VITRAN CORPORATION INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands of United States dollars, US GAAP)

Three Three Six Six
months months months months
Ended Ended Ended Ended
Jun. 30, Jun. 30, Jun. 30, Jun. 30,
2007 2006 2007 2006
Cash provided by (used in):
Operations:
Net income $ 5,533 $ 5,776 $ 8,920 $ 9,540
Items not involving
cash from operations
Cumulative effect of
change in accounting
principle - - - (141)
Depreciation and
amortization expense 5,109 2,509 10,054 4,916
Deferred income taxes 1,628 195 2,595 572
Share-based
compensation expense 251 219 459 409
Gain on sale of
property and equipment (101) (40) (72) (156)
Change in non-cash
working capital
components (2,066) (1,509) (5,763) 446
-------- ------------ ------------ -----------
10,354 7,150 16,193 15,586
Investments:
Purchase of property
and equipment (6,870) (9,651) (11,420) (11,529)
Proceeds on sale of
property and equipment 167 1,384 238 1,554
Additional payment due
to acquisition of
subsidiary (6,383) - (6,921) -
Acquisition of business
assets - - - (2,251)
-------- ------------ ------------ -----------
(13,086) (8,267) (18,103) (12,226)
Financing:
Change in revolving
credit facility 6,838 - 10,122 (2,985)
Repayment of long-term
debt (2,255) (631) (4,510) (1,952)
Repayment of capital
leases (1,674) - (3,314) -
Issue of common shares
upon exercise of stock
options 80 158 207 479
-------- ------------ ------------ -----------
2,989 (473) 2,505 (4,458)

Effect of translation
adjustment on cash (753) (63) (1,002) (177)
-------- ------------ ------------ -----------
Increase (decrease) in
cash position (496) (1,653) (407) (1,275)
Cash position, beginning
of period 1,543 14,970 1,454 14,592
-------- ------------ ------------ -----------
Cash position, end of
period $ 1,047 $ 13,317 $ 1,047 $ 13,317
-------- ------------ ------------ -----------
-------- ------------ ------------ -----------
Change in non-cash
working capital
components:
Accounts receivable $(6,354) $ (4,083) $ (13,364) $ (6,429)
Inventory, deposits and
prepaid expenses 696 1,438 1,083 1,626
Income and other taxes
receivable/payable (1,462) 510 (5,987) 98
Other liabilities 161 - 2,089 -
Accounts payable and
accrued liabilities 4,893 626 10,416 5,151
-------- ------------ ------------ -----------
$(2,066) $ (1,509) $ (5,763) $ 446
-------- ------------ ------------ -----------
-------- ------------ ------------ -----------

Supplemental cash flow
information

Capital lease additions $ 3,740 $ - $ 3,740 $ -


(additional financial information follows)



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

-----------------------------------------------------------------
For the quarter ended For the quarter ended
June 30, 2007 June 30, 2006
-----------------------------------------------------------------
Revenue Inc. from OR% Revenue Inc. from OR%
Operations Operations
-----------------------------------------------------------------
LTL 150,615 9,002 94.0 LTL 105,213 8,039 92.4
-----------------------------------------------------------------
LOG 11,225 735 93.4 LOG 10,251 638 93.8
-----------------------------------------------------------------
TL 8,304 405 95.1 TL 8,177 530 93.5
-----------------------------------------------------------------

-----------------------------------------------------------------
For the six months For the six months
ended June 30, 2007 ended June 30, 2006
-----------------------------------------------------------------
Revenue Inc. from OR% Revenue Inc. from OR%
Operations Operations
-----------------------------------------------------------------
LTL 286,772 15,232 94.7 LTL 202,636 13,107 93.5
-----------------------------------------------------------------
LOG 20,888 1,175 94.4 LOG 19,663 1,152 94.1
-----------------------------------------------------------------
TL 16,620 700 95.8 TL 16,469 940 94.3
-----------------------------------------------------------------



LTL SEGMENT - Statistical Information
(Unaudited)

-----------------------------------------------------------------
Combined LTL (in US$) LTL Division Q. vs, Q. % change
-----------------------------------------------------------------
2nd Quarter 2007
Revenue ($ 000's) $ 150,615 43.2%
No. of Shipments 1,085,865 58.0%
Weight (000's lbs) 1,555,693 41.4%
Revenue per shipment $ 138.71 -9.4%
Revenue per CWT $ 9.68 1.3%

-----------------------------------------------------------------
Year-to-date 6 mo. vs. 6 mo. % change
-----------------------------------------------------------------
Revenue ($ 000's) $ 286,772 41.5%
No. of Shipments 2,079,241 53.8%
Weight (000's lbs) 3,023,539 41.0%
Revenue per shipment $ 137.92 -8.0%
Revenue per CWT $ 9.48 0.4%

-----------------------------------------------------------------


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