TRIMAC TRANSPORTATION LTD Calgary, Alberta - May 8, 2015 - Trimac Transportation Ltd. (TSX: TMA) ("Trimac" or the "Company"), Canada's leader in bulk trucking, announces the release of its financial results for the three months ended March 31, 2015 ("current quarter").
Highlights for the first quarter:• Free cash flow increased $3.6 million primarily due to reduced capital expenditures in the current quarter.
• Capital expenditures decreased $5.4 million in the current quarter as Trimac continues to "right size" its fleet.
• Selling and administrative costs remained flat compared to the first quarter of 2014.
• National Tank Services third party revenue increased 36.6 percent as a result of higher volumes in the current quarter.
• Revenue before fuel surcharges decreased 2.1 percent (or $2.0 million), EBITDA decreased $1.5 million and earnings before income tax declined $0.7 million for the current quarter. These decreases were primarily from reduced volumes from lower customer demand, severe weather in the East causing operating inefficiencies, customer plant issues, a customer mine closure and the impact of low oil prices in Western Canada.
Selected Financial HighlightsThree months ended March 31 (in millions of dollars, except per share data) 2015 2014 Variance | |
Financial Results Revenue: Bulk Trucking revenue before fuel surcharges National Tank Services third party revenue Bulk Plus Logistics EBITDA Bulk Trucking National Tank Services Bulk Plus Logistics Earnings before income tax expense: Bulk Trucking National Tank Services Bulk Plus Logistics Share Information: Cash dividends declared per share Earnings per share (basic) Earnings per share adjusted Other Information: Net property, plant and equipment additions | |
Financial Results Revenue: Bulk Trucking revenue before fuel surcharges National Tank Services third party revenue Bulk Plus Logistics EBITDA Bulk Trucking National Tank Services Bulk Plus Logistics Earnings before income tax expense: Bulk Trucking National Tank Services Bulk Plus Logistics Share Information: Cash dividends declared per share Earnings per share (basic) Earnings per share adjusted Other Information: Net property, plant and equipment additions | 83.3 86.7 ‐3.9% 5.6 4.1 36.6% 5.0 5.1 ‐2.0% |
Financial Results Revenue: Bulk Trucking revenue before fuel surcharges National Tank Services third party revenue Bulk Plus Logistics EBITDA Bulk Trucking National Tank Services Bulk Plus Logistics Earnings before income tax expense: Bulk Trucking National Tank Services Bulk Plus Logistics Share Information: Cash dividends declared per share Earnings per share (basic) Earnings per share adjusted Other Information: Net property, plant and equipment additions | 93.9 95.9 ‐2.1% 7.1 9.0 ‐21.1% 1.1 0.9 22.2% 1.0 0.8 25.0% |
Financial Results Revenue: Bulk Trucking revenue before fuel surcharges National Tank Services third party revenue Bulk Plus Logistics EBITDA Bulk Trucking National Tank Services Bulk Plus Logistics Earnings before income tax expense: Bulk Trucking National Tank Services Bulk Plus Logistics Share Information: Cash dividends declared per share Earnings per share (basic) Earnings per share adjusted Other Information: Net property, plant and equipment additions | 9.2 10.7 ‐14.0% 1.2 2.3 ‐47.8% 0.6 0.4 50.0% 0.9 0.7 28.6% |
Financial Results Revenue: Bulk Trucking revenue before fuel surcharges National Tank Services third party revenue Bulk Plus Logistics EBITDA Bulk Trucking National Tank Services Bulk Plus Logistics Earnings before income tax expense: Bulk Trucking National Tank Services Bulk Plus Logistics Share Information: Cash dividends declared per share Earnings per share (basic) Earnings per share adjusted Other Information: Net property, plant and equipment additions | 2.7 3.4 ‐20.6% 0.07 0.07 0.08 0.11 0.08 0.11 1.4 6.8 |
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OutlookWe expect low oil prices to continue to stifle growth in the Western Canadian economy which will impact demand in the industries we serve. We will continue to focus on our operational excellence strategy to be a low cost provider by closely monitoring costs, rationalizing capital expenditures and improving asset utility wherever possible. Trimac's diversification by customer, industry, product and geographical footprint mitigates some of the risks posed by the current economic downturn related to the Western Canadian operations.
Declaration of Quarterly DividendThe Board of Directors today declared a dividend of $0.07 per share on the Class A shares, payable on July 15, 2015 to shareholders of record at the close of business on June 30, 2015. This dividend is designated as an eligible dividend pursuant to subsection 89(14) of the Income Tax Act (Canada) and any provincial legislation pertaining to eligible dividends.
Forward‐Looking StatementsCertain information included in this news release constitutes "forward‐looking statements". Trimac cautions that, by their nature, these forward‐looking statements are based on suppositions, risks, and uncertainties as well as on management's best possible evaluation of future events. Trimac cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Such forward‐looking statements are not guarantees of future performance and the actual results or performance of Trimac or the transportation industry may be materially different from the outlook or any future results or performance implied by such statements. Please see "Forward‐Looking Statements" in Trimac's MD&A for the three months ended March 31, 2015 for a discussion of the material factors that could cause actual results to differ from the forward‐looking information contained herein and the material factors and assumptions that were applied in preparing such forward‐ looking information.
Non‐GAAP Financial MeasureEBITDA and adjusted earnings per share are financial measures not prescribed by IFRS and may not be comparable to similar measures presented by other issuers. Management considers these non‐GAAP measures useful in evaluating the performance of Trimac's operations. These measures should be considered in addition to, not a substitute for, the financial performance measures prepared in accordance with IFRS.
Profile
Trimac is Canada's largest provider of bulk trucking services with operations from coast to coast. In addition, through its National Tank Services division, Trimac performs repairs, maintenance, trailer fabrication and tank‐trailer cleaning services for both the Trimac fleet and for third party commercial customers. Trimac also provides third party transportation logistics services in Canada and the United States through its wholly owned subsidiary Bulk Plus Logistics. Shares of Trimac Transportation Ltd. are traded on the Toronto Stock Exchange under the symbol TMA.
For more detailed information, please visit our website at www.trimac.com or SEDAR at www.sedar.com and review our MD&A and the unaudited condensed consolidated interim financial statements for the Company.
For further information please contact:
Edward V. Malysa Scott D. Calver
President & Chief Operating Officer Vice President & Chief Financial Officer
Trimac Transportation Ltd. Trimac Transportation Ltd. Telephone: 403‐298‐5100 Telephone: 403‐298‐5100
Facsimile: 403‐298‐5146 Facsimile: 403‐298‐5146
You are invited to join us on a conference call at 9:30 a.m. Eastern Time on Monday, May 11th, 2015. To join the call, please dial 1‐866‐
696‐5910 and enter pass code 8176216 at least 10 minutes prior to the start time of the call. An audio playback of the call will be available starting Tuesday, May 12th, 2015 on our website at http://www.trimac.com/page/eventscalendar.
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