Vitran Corporation Inc.
TSX : VTN
NASDAQ : VTNC

Vitran Corporation Inc.

October 20, 2005 10:32 ET

Vitran Reports Record Diluted EPS Of $0.42 In 2005 Q3 On 20 Percent Increase In Revenue

TORONTO, ONTARIO--(CCNMatthews - Oct. 20, 2005) - Vitran Corporation Inc. (TSX:VTN)(NASDAQ:VTNC) -



REMINDER:
Vitran management will conduct a conference call and webcast today,
October 20 at 1:00 p.m. (ET), to discuss the Company's 2005 third
quarter results.
Conference call dial-in: 800/732-9492
Live Webcast: www.vitran.com (select "Investor Relations")


- Earnings Increase Streak Continues at 16 Straight Quarters -

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

For the quarter, Vitran posted all-time records for net income of $5.4 million, earnings per diluted share of $0.42 and revenue of $116.2 million. In the comparable three-month period in the prior year, Vitran recorded net income of $4.5 million, or $0.36 per diluted share, on revenue of $97.0 million.

Vitran President and Chief Executive Officer Rick Gaetz, stated, "With the first full quarter following the closing of our Chris Truck Line (CTL) acquisition, we are delighted to report another period of record operating results, our 16th consecutive quarter with year-over-year earnings improvement. Importantly, CTL met our expectations and contributed to our improved LTL segment operating ratio.

"Although Vitran's 2005 Q3 results were an all-time record, our reported results for the quarter would have been even better had it not been for the negative impact of both a prolonged strike at the Port of Vancouver, that was eventually resolved in mid-August, and two third quarter accidents that took place at our Truckload Segment."

At September 30, 2005, the Company had $10.9 million in cash on hand and an additional $24.6 million of available credit as it continues to seek additional accretive acquisitions in the U.S. that will further expand Vitran's growing North American presence.

For the nine-month period ended September 30, 2005, Vitran achieved net income of $12.9 million, or $1.01 per diluted share, on revenue of $315.2 million. In the year earlier period, the Company reported net income of $10.6 million, or $0.83 per diluted share, on revenue of $278.1 million.

Segmented Results

Income from operations at Vitran's LTL (less-than-truckload) segment rose 31 percent during the 2005 third quarter to $7.7 million, led by a 27 percent revenue increase at the U.S. LTL business unit - buoyed by the CTL acquisition - and eight percent higher revenue from the Canadian business unit. The LTL segment's consolidated OR (operating ratio) improved 50 basis points to 92.0, compared to 92.5 in the year-ago quarter. During the period, yields continued to show improvement at both the U.S. and Canadian LTL units. Vitran's U.S. LTL business unit achieved an eight percent increase in revenue per shipment, and a 10 percent quarter over prior year quarter improvement in revenue per hundredweight. Its Canadian LTL business unit posted a 15 percent increase in revenue per shipment and revenue per hundredweight rose approximately 10 percent.

Vitran's Logistics segment recorded 49 percent higher income from operations and an OR improvement to 94.8 in the 2005 third quarter, versus 95.9 in the prior year quarter. The Truckload segment had operating income of $0.4 million on revenue of $8.9 million during the three-month period.

Guidance Update

Vitran management maintained its 2005 diluted earnings per share guidance of $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)

Sept. 30, 2005 Dec. 31, 2004
Assets (Unaudited)
Current assets:
Cash and cash equivalents $ 10,809 $ 7,375
Marketable securities -- 33,087
Accounts receivable 52,885 40,124
Inventory, deposits and prepaid
expenses 7,354 5,924
Future income tax assets 1,675 3,667
-------------------------------
72,723 90,177
Capital assets 63,683 37,563
Goodwill 63,990 45,304
-------------------------------
$ 200,396 $ 173,044
-------------------------------
-------------------------------

Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable & accrued liabilities $ 42,333 $ 33,377
Income and other taxes payable 750 2,399
Current portion of long-term debt 5,283 3,030
-------------------------------
48,366 38,806

Long-term debt 12,622 11,507
Future income tax liabilities 4,847 3,546

Shareholders' equity:
Common shares 63,361 60,798
Contributed surplus 797 323
Retained earnings 67,298 54,972
Cumulative translation adjustment 3,105 3,092
-------------------------------
134,561 119,185
-------------------------------
$ 200,396 $ 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 Nine Months
Ended September 30, Ended September 30,

2005 2004 2005 2004
-----------------------------------------------
Revenues $ 116,226 $ 96,995 $ 315,217 $ 278,072
Operating expenses 96,061 82,269 262,947 236,508
Selling, general and
administrative expenses 10,399 7,267 29,011 23,631
Other income (6) (29) (33) (142)
-----------------------------------------------
106,454 89,507 291,925 259,997
Income from operations
before depreciation 9,772 7,488 23,292 18,075
Depreciation expense 1,954 1,295 4,802 3,835
-----------------------------------------------
Income from operations
before undernoted 7,818 6,193 18,490 14,240

Interest expense, net 171 7 209 87

Income from operations
before income taxes 7,647 6,186 18,281 14,153

Income taxes 2,271 1,644 5,355 3,575
-----------------------------------------------
Net income $ 5,376 $ 4,542 $ 12,926 $ 10,578
-----------------------------------------------
-----------------------------------------------

Earnings per share:
Basic $ 0.43 $ 0.37 $ 1.04 $ 0.86
-----------------------------------------------
-----------------------------------------------
Diluted $ 0.42 $ 0.36 $ 1.01 $ 0.83
-----------------------------------------------
-----------------------------------------------

Weighted average
number of shares
Basic 12,584,358 12,339,956 12,481,840 12,241,013
-----------------------------------------------
-----------------------------------------------
Diluted 12,921,695 12,774,744 12,819,872 12,730,065
-----------------------------------------------
-----------------------------------------------

(Statement of Cash Flows follows)



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

Three Three Nine Nine
months months months months
Ended Ended Ended Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2005 2004 2005 2004
Cash provided by
(used in):
Operations:
Net income $ 5,376 $ 4,542 $ 12,926 $ 10,578
Items not involving
cash from operations:
Depreciation expense 1,954 1,295 4,802 3,835
Future income taxes 2,030 1,726 2,677 1,557
Stock based
compensation
expense 181 119 474 177
Gain on sale of
capital assets (6) (29) (33) (142)
--------------------------------------------
9,535 7,653 20,846 16,005
Change in non-cash
working capital
components (3,961) (480) (6,658) (7,221)
--------------------------------------------
5,574 7,173 14,188 8,784
Investing:
Purchase of capital
assets (10,806) (915) (17,651) (3,993)
Proceeds on sale of
capital assets 50 28 88 242
Acquisition of
subsidiary (1,693) -- (28,192) --
Marketable securities 3,193 (148) 31,974 (439)
--------------------------------------------
(9,256) (1,035) (13,781) (4,190)
Financing:
Revolving credit
facility 5,074 -- 5,074 --
Repayment of
long-term debt (570) (2,169) (1,710) (6,146)
Issue of Common
Shares upon exercise
of stock options 18 503 60 1,402
Repurchase of Common
Shares (65) -- (921) --
--------------------------------------------
4,457 (1,666) 2,503 (4,744)
Effect of translation
adjustment on cash 498 63 524 229
--------------------------------------------
Increase (decrease)
in cash position 1,273 4,535 3,434 79
Cash position,
beginning of period 9,536 7,961 7,375 12,417
--------------------------------------------
Cash position, end
of period $ 10,809 $ 12,496 $ 10,809 $ 12,496
--------------------------------------------
--------------------------------------------

Change in non-cash
working capital
components:
Accounts receivable $ (5,886) $ (2,343) $ (9,717) $ (9,179)
Inventory, deposits
and prepaid expenses 534 (1,077) (921) (393)
Income and other taxes
recoverable/payable (1,565) (1,019) (1,649) (1,078)
Accounts payable and
accrued liabilities 2,956 3,959 5,629 3,429
--------------------------------------------
$ (3,961) $ (480) $ (6,658) $ (7,221)
--------------------------------------------
--------------------------------------------


(additional financial information follows)



LTL Statistical Information - U.S. and CDN Divisions

For the quarter ended
September 30, 2005
---------------------------------------------------------------------
U.S. LTL Q. over Q. CDN LTL Q. over Q.
($U.S.) Division % Change ($CDN) Division % Change
---------------------------------------------------------------------
Revenue Revenue
(000's) $ 56,824 26.7 (000's) $ 47,350 7.6
---------------------------------------------------------------------
No. of No. of
Shipments 459,192 17.3 Shipments 221,415 (6.4)
---------------------------------------------------------------------
Weight Weight
(000's lbs) 640,602 14.9 (000's lbs) 434,082 (1.9)
---------------------------------------------------------------------
Revenue per Revenue
shipment $ 123.76 8.0 per shipment $ 213.85 15.0
---------------------------------------------------------------------
Revenue Revenue
per CWT $ 8.87 10.2 per CWT $ 10.91 9.6
---------------------------------------------------------------------


For the nine months ended
September 30,2005
---------------------------------------------------------------------
Yr. Yr.
U.S. LTL over Yr. CDN LTL over Yr.
($U.S.) Division % Change ($CDN) Division % Change
---------------------------------------------------------------------
Revenue Revenue
(000's) $ 149,460 15.1 (000's) $ 133,808 6.1
---------------------------------------------------------------------
No. of No. of
Shipments 1,250,312 9.6 Shipments 645,642 (6.4)
---------------------------------------------------------------------
Weight Weight
(000's lbs) 1,743,199 5.8 (000's lbs) 1,260,687 (4.5)
---------------------------------------------------------------------
Revenue per Revenue per
shipment $ 119.54 5.1 shipment $ 207.25 13.4
---------------------------------------------------------------------
Revenue per Revenue
CWT $ $ 8.62 8.8 per CWT 10.61 11.1
---------------------------------------------------------------------



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


For the quarter ended For the quarter ended
September 30, 2005 September 30, 2004
---------------------------------------------------------------------
Inc. from Inc. from
Revenue Operations OR% Revenue Operations OR%
---------------------------------------------------------------------
LTL 96,658 7,734 92.0 LTL 78,727 5,895 92.5
---------------------------------------------------------------------
LOG 10,652 551 94.8 LOG 8,936 370 95.9
---------------------------------------------------------------------
TL 8,916 441 95.1 TL 9,332 565 93.9
---------------------------------------------------------------------



For the nine months For the nine months
ended Sept. 30, 2005 ended Sept. 30, 2004
---------------------------------------------------------------------
Inc. from Inc. from
Revenue Operations OR% Revenue Operations OR%
---------------------------------------------------------------------
LTL 259,191 17,620 93.2 LTL 224,943 13,459 94.0
---------------------------------------------------------------------
LOG 29,144 1,531 94.7 LOG 25,872 1,142 95.6
---------------------------------------------------------------------
TL 26,882 1,901 92.9 TL 27,527 1,500 94.5
---------------------------------------------------------------------


Contact Information

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