Vitran Corporation Inc.
TSX : VTN
NASDAQ : VTNC

Vitran Corporation Inc.

July 21, 2005 06:30 ET

Vitran Reports Record $0.38 Diluted EPS in 2005 Q2 on 12 Percent Revenue Rise

TORONTO, ONTARIO--(CCNMatthews - July 21, 2005) - Vitran Corporation Inc. (TSX:VTN)(NASDAQ:VTNC) -

Extends Earnings Increase Streak to 15 Consecutive Quarters

REMINDER:

Vitran management will conduct a conference call and webcast today, July 21 at 11:00 a.m. (ET), to discuss the Company's 2005 second quarter results.

Conference call dial-in: 800/621-5175

Live Webcast: www.vitran.com (select "Investor Relations")

Vitran Corporation Inc. (TSX:VTN)(NASDAQ:VTNC), a North American transportation and logistics firm, today announced record quarterly financial results for the 2005 second quarter ended June 30, 2005 (all figures reported in $U.S.).

Vitran achieved net income of $4.8 million, or 0.38 per diluted share, on revenue of $105.1 million in the second quarter of 2005. In the comparable 2004 quarter, Vitran recorded net income of $4.4 million, or $0.34 per diluted share, on revenue of $93.9 million.

"The second quarter was another record for Vitran, with the Company achieving diluted earnings of $0.38 per share, yet perhaps the most important development during the quarter was the closing of our Chris Truck Line (CTL) acquisition on May 31, 2005. CTL further expands our U.S. freight coverage in the Midwestern and Southwestern U.S. by four new states and an additional 19 terminals. As previously stated, we expect CTL's contribution to be accretive to Vitran's 2005 full-year earnings results. Subsequent to the acquisition, we continue to maintain a strong financial position, with $12.7 million in cash and $29.8 million in available credit," stated Vitran President and Chief Executive Officer Rick Gaetz.

During the six-month period ended June 30, 2005, Vitran recorded net income of $7.6 million, or $0.59 per diluted share, on revenue of $199.0 million. In the prior year period, the Company achieved net income of $6.0 million, or $0.47 per diluted share, on revenue of $181.1 million.

Segmented Results

Income from operations at Vitran's LTL (less-than-truckload) segment rose 20 percent during the 2005 second quarter to $6.6 million, highlighted by a 12 percent revenue increase at the U.S. business unit and a seven percent rise in revenue from the Canadian business unit. The LTL segment's consolidated OR (operating ratio) improved to 92.3, versus 92.7 in the year ago quarter. The U.S. LTL unit achieved an eight percent quarter over prior year quarter improvement in revenue per hundredweight and a five percent increase in revenue per shipment. The Canadian LTL operation also recorded solid Q2 results with a 12 percent increase in revenue per shipment and revenue per hundredweight jumping 10 percent.

Vitran's Truckload segment achieved a 47 percent income from operations increase during the quarter, and lowered its OR to 92.0. The Logistics segment achieved 41 percent higher operating income, improving its OR to 93.6.

Following the close of the quarter, in early July, Vitran Logistics commenced operations of a 125,000 square foot dedicated distribution facility in Calgary on behalf a leading Canadian retail apparel and footwear company.

Guidance Update

Following the closure of the Chris Truck Line acquisition on May 31, 2005, management raised its 2005 diluted earnings per share guidance for the year to $1.35 to $1.47.

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.

Statements in the press release regarding management's future expectation, beliefs, goals, plans, or prospects constitute forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. For this purpose, any statements that are contained herein that are not statements or historical fact may be deemed to be forward-looking statements made pursuant to the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Without limiting the foregoing, the words "believes", "anticipates", "plans" "intends", "will", "should", "expects", "projects", and similar expressions are intended to identify forward-looking statements. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual result, future circumstances or events to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, economic factors, demand for the Company's services, fuel price fluctuations, the availability of employee drivers and independent contractors, risks associated with geographic expansion, capital requirements, claims exposure and insurance costs, competition, government regulation changes, environmental hazards and other risks detailed from time-to-time in the Company's public disclosure documents or other filing with the Canadian and United States securities commissions or other securities regulatory bodies. The forward-looking statements are made as of the date hereof, and the Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.



(tables follow)



VITRAN CORPORATION INC.
CONSOLIDATED BALANCE SHEETS
(in thousands of United States dollars)

June 30, 2005 Dec. 31, 2004
Assets
Current assets: $ 9,536 $ 7,375
Marketable securities 3,193 33,087
Accounts receivable 46,999 40,124
Inventory, deposits and prepaid
expenses 7,888 5,924
Future income tax assets 3,269 3,667
------------- -----------
70,885 90,177
Capital assets 53,500 37,563
Goodwill 61,901 45,304
------------- -----------
$ 186,286 $ 173,044
------------- -----------
------------- -----------

Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable & accrued
liabilities $ 39,377 $ 33,377
Income and other taxes payable 2,315 2,399
Current portion of long-term debt 4,531 3,030
------------- -----------
46,223 38,806

Long-term debt 8,866 11,507
Future income tax liabilities 3,814 3,546

Shareholders' equity:
Common shares 63,367 60,798
Contributed surplus 616 323
Retained earnings 61,964 54,972
Cumulative translation adjustment 1,436 3,092
------------- -----------
127,383 119,185
------------- -----------
$ 186,286 $ 173,044
------------- -----------
------------- -----------

(Statements of Income follows)



VITRAN CORPORATION INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands of $U.S., except share and per share amounts)

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

2005 2004 2005 2004
---- ---- ---- ----

Revenues $ 105,050 $ 93,931 $ 198,991 $ 181,077
Operating expenses 86,742 78,665 166,886 154,239
Selling, general and
administrative
expenses 9,795 8,201 18,612 16,364
Other expense
(income) (17) (37) (27) (113)
------- ------- -------- --------
96,520 86,829 185,471 170,490
Income from operations
before depreciation 8,530 7,102 13,520 10,587
Depreciation expense 1,517 1,232 2,848 2,540
------- ------- -------- --------
Income from operations
before undernoted 7,013 5,870 10,672 8,047

Interest expense, net 86 37 38 80

Income from operations
before income taxes 6,927 5,833 10,634 7,967

Income taxes 2,131 1,446 3,084 1,931
------- ------- -------- --------
Net income $ 4,796 $ 4,387 $ 7,550 $ 6,036
------- ------- -------- --------
------- ------- -------- --------

Earnings per share:
Basic $ 0.39 $ 0.36 $ 0.61 $ 0.50
------- ------- -------- --------
------- ------- -------- --------
Diluted $ 0.38 $ 0.34 $ 0.59 $ 0.47
------- ------- -------- --------
------- ------- -------- --------

Weighted average
number of shares
Basic 12,447,300 12,266,703 12,429,732 12,190,998
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Diluted 12,778,285 12,771,784 12,767,134 12,716,553
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------

(Statement of Cash Flows follows)



VITRAN CORPORATION INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands of United States dollars)

Three Three Six Six
months months months months
Ended Ended Ended Ended
Jun. 30, Jun. 30, Jun. 30, Jun. 30,
2005 2004 2005 2004

Cash provided by (used in):
Operations:
Net income $ 4,796 $ 4,387 $ 7,550 $ 6,036
Items not involving cash
from operations
Depreciation expense 1,517 1,232 2,848 2,540
Future income taxes 82 (465) 647 (169)
Stock based compensation
expense 164 58 293 58
Gain on sale of capital
assets (17) (37) (27) (113)
-------- -------- --------- ---------
6,542 5,175 11,311 8,352
Change in non-cash working
capital components 254 3,448 (1,995) (6,741)
-------- -------- --------- ---------
6,796 8,623 9,316 1,611
Investments:
Purchase of capital assets (623) (1,443) (6,845) (3,078)
Proceeds on sale of capital
assets 24 79 38 214
Acquisition of subsidiary (26,499) -- (26,499) --
Marketable securities 27,412 (146) 28,781 (291)
-------- -------- --------- ---------
314 (1,510) (4,525) (3,155)
Financing:
Repayment of long-term debt (570) (2,168) (1,140) (3,977)
Issue of Common Shares upon
exercise of stock options 25 548 42 899
Repurchase of Common Shares (164) -- (856) --
-------- -------- --------- ---------
(709) (1,620) (1,954) (3,078)
Effect of translation
adjustment on cash (630) 108 (676) 166
-------- -------- --------- ---------
Increase (decrease) in cash
position 5,771 5,601 2,161 (4,456)
Cash position, beginning of
period 3,765 2,360 7,375 12,417
-------- -------- --------- ---------
Cash position, end of period $ 9,536 $ 7,961 $ 9,536 $ 7,961
-------- -------- --------- ---------
-------- -------- --------- ---------

Change in non-cash working
capital components:
Accounts receivable $ (386) $ (1,832) $ (3,747) $ (6,836)
Inventory, deposits and
prepaid expenses (1,779) 690 (1,455) 684
Income and other taxes
recoverable/payable 349 1,226 (412) (59)
Accounts payable and
accrued liabilities 2,070 3,364 3,619 (530)
-------- -------- --------- ---------
$ 254 $ 3,448 $ (1,995) $ (6,741)
-------- -------- --------- ---------
-------- -------- --------- ---------

(additional financial information follows)



LTL Statistical Information - U.S. and CDN Divisions

For the quarter ended
June 30, 2005
---------------------------------------------------------------------
U.S. LTL Q. over Q. CDN LTL Q. over Q.
($U.S.) Division % Change ($CDN) Division % Change
---------------------------------------------------------------------
Revenue Revenue
(000's) $ 50,017 12.3 (000's) $ 45,370 6.5
---------------------------------------------------------------------
No. of No. of
Shipments 420,734 7.0 Shipments 222,661 (5.0)
---------------------------------------------------------------------
Weight Weight
(000's lbs) 579,630 3.6 (000's lbs) 439,136 (3.1)
---------------------------------------------------------------------
Revenue per Revenue per
shipment $ 118.88 4.9 shipment $ 203.76 12.1
---------------------------------------------------------------------
Revenue per Revenue per
CWT $ 8.63 8.4 CWT $ 10.33 9.9
---------------------------------------------------------------------

For the six months ended
June 30,2005
---------------------------------------------------------------------
U.S. LTL Yr. over Yr. CDN LTL Yr. over Yr.
($U.S.) Division % Change ($CDN) Division % Change
---------------------------------------------------------------------
Revenue Revenue
(000's) $ 92,636 9.0 (000's) $ 86,458 5.3
---------------------------------------------------------------------
No. of No. of
Shipments 791,160 5.5 Shipments 424,227 (6.4)
---------------------------------------------------------------------
Weight Weight
(000's lbs) 1,093,598 1.2 (000's lbs) 826,605 (5.8)
---------------------------------------------------------------------
Revenue per Revenue per
shipment $ 117.09 3.3 shipment $ 203.80 12.6
---------------------------------------------------------------------
Revenue per Revenue per
CWT $ 8.47 7.8 CWT $ 10.46 11.9
---------------------------------------------------------------------


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

For the quarter ended For the quarter ended
June 30, 2005 June 30, 2004
---------------------------------------------------------------------
Inc. from Inc. from
Revenue Operations OR% Revenue Operations OR%
---------------------------------------------------------------------
LTL 86,429 6,625 92.3 LTL 75,958 5,533 92.7
---------------------------------------------------------------------
LOG 9,615 615 93.6 LOG 8,768 436 95.0
---------------------------------------------------------------------
TL 9,006 716 92.0 TL 9,205 487 94.7
---------------------------------------------------------------------

For the six months For the six months
ended June 30, 2005 ended June 30, 2004
---------------------------------------------------------------------
Inc. from Inc. from
Revenue Operations OR% Revenue Operations OR%
---------------------------------------------------------------------
LTL 162,533 9,887 93.9 LTL 146,217 7,564 94.8
---------------------------------------------------------------------
LOG 18,492 980 94.7 LOG 16,935 773 95.4
---------------------------------------------------------------------
TL 17,966 1,458 91.9 TL 17,925 933 94.8
---------------------------------------------------------------------


Contact Information

  • Vitran Corporation Inc.
    Richard Gaetz
    President/CEO
    416-596-7664
    or
    Vitran Corporation Inc.
    Sean Washchuk
    VP Finance/CFO
    416-596-7664
    www.vitran.com
    or
    Jaffoni & Collins Incorporated
    Robert Rinderman or Karin Oloffson
    212-835-8500
    VTNC@jcir.com