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Vitran reports 2008 second quarter diluted EPS of $0.34 on record revenue of $196 million(Canada Newswire English Via Acquire Media NewsEdge) Attention Business/Financial Editors ------------------------------------------------------------------------- REMINDER: Vitran management will conduct a conference call and webcast today, July 23, at 11:00 a.m. ET, to discuss the Company's 2008 second quarter results Conference call dial-in: 800/205-6183 Live Webcast: www.vitran.com (select "Investor Relations") ------------------------------------------------------------------------- TORONTO, July 23 /CNW/ - Vitran Corporation Inc. (NASDAQ: VTNC, TSX: VTN), a North American transportation and logistics firm, today announced financial results for the second quarter of 2008 and the six-month period ended June 30, 2008 (all figures reported in $U.S.). Vitran achieved record revenue of $196.0 million during the three-month period, and net income of $4.6 million, or $0.34 per diluted share. In the comparable 2007 second quarter, the Company reported revenue of $170.1?million, and net income of $5.5 million, or $0.41 per diluted share. "We are pleased with Vitran's top and bottom line performance in the 2008 second quarter, especially in light of the continued economic softness and the challenges of operating in the face of record fuel costs," stated Vitran President and Chief Executive Officer Rick Gaetz. "Our sequential earnings growth was highlighted by a significant 370 basis point improvement in Vitran's LTL (less than truckload) Operating Ratio (OR), compared to the 2008 first quarter. "The sequential improvements were driven by double-digit growth in our revenue per shipment, and a more than seven percent increase in revenue per hundredweight during the period. Cross-border revenue also rose 32 percent, compared to the 2007 second quarter. Most importantly, these gains were achieved in the face of the successful implementation of our new IT operating system. "During the quarter, we announced the launch of the Company's U.S. LTL IT operating platform, which is expected to facilitate revenue growth, increase productivity, streamline our cost structure and help deliver bottom line improvements. With this integral piece of our business model now in place, we are focusing on streamlining Vitran's terminal operations in several Midwestern U.S. states - merging 27 freight facilities into 13 - which is expected to further enhance operating efficiency through the elimination of redundant real estate that came in our PJAX acquisition. With the completion of these initiatives, we will turn our attention to cross-selling Vitran's LTL business both inter-regionally and across the border between the U.S. and Canada." Segmented Results Income from operations at Vitran's LTL (less-than-truckload) segment was $8.5?million in the 2008 second quarter. LTL segment revenue grew 11.6?percent to $168.2 million, and the LTL OR (operating ratio) was 94.9 for the three-?month period, versus an OR of 94.0 in the prior year quarter. LTL metrics improved during the quarter, with revenue per shipment rising 10.2?percent, revenue per hundredweight increasing 7.1 percent. Tonnage rose 2.0?percent, while the number of shipments was down 0.8 percent. Income from operations rose 13.1 percent at Vitran's Logistics segment in the 2008 second quarter to $831,000. The segment's OR was 95.7, versus 93.4 in the year-earlier quarter. The Truckload segment achieved income from operations for the three-month period of $321,000, compared to $405,000 in 2007, and the OR was 96.2 in the quarter, versus a 95.1 OR in the prior year 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. (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) June 30, 2008 Dec. 31, 2007 (unaudited) (audited) Assets Current assets: Accounts receivable $ 93,837 $ 74,261 Inventory, deposits and prepaid expenses 12,238 11,325 Income and other taxes receivable 1,237 2,232 Deferred income taxes 3,205 2,599 ----------- ----------- 110,517 90,417 Property and equipment 166,881 169,062 Intangible assets 14,542 13,645 Goodwill 121,967 124,375 ----------- ----------- $ 413,907 $ 397,499 ----------- ----------- ----------- ----------- Liabilities and Shareholders' Equity Current liabilities: Bank overdraft $ 3,677 $ 390 Accounts payable and accrued liabilities 76,457 67,468 Current portion of long-term debt 16,755 18,144 ----------- ----------- 96,889 86,002 Long-term debt 109,858 109,831 Other 3,560 3,512 Deferred income taxes 8,058 7,810 Shareholders' equity: Common shares 77,424 77,246 Additional paid-in capital 3,005 2,436 Retained earnings 110,189 104,478 Accumulated other comprehensive income 4,924 6,184 ----------- ----------- 195,542 190,344 ----------- ----------- $ 413,907 $ 397,499 ----------- ----------- ----------- ----------- (Consolidated 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, 2008 2007 2008 2007 ---- ---- ---- ---- Revenues $ 195,990 $ 170,144 $ 373,497 $ 324,280 Operating expenses 165,102 140,780 318,201 269,236 Selling, general and administrative expenses 17,769 15,283 34,690 30,382 Other income (134) (101) (133) (72) Depreciation and amortization expense 5,205 5,109 10,765 10,054 ----------- ----------- ----------- ----------- 187,942 161,071 365,523 309,600 Income from operations before undernoted 8,048 9,073 9,974 14,680 Interest expense, net 2,122 2,115 4,252 4,179 Income from operations before income taxes 5,926 6,958 5,722 10,501 Income taxes 1,349 1,425 11 1,581 ----------- ----------- ----------- ----------- Net income $ 4,577 $ 5,533 $ 5,711 $ 8,920 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Basic income per share - Net income $ 0.34 $ 0.41 $ 0.42 $ 0.66 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Diluted income per share - Net income $ 0.34 $ 0.41 $ 0.42 $ 0.65 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Weighted average number of shares Basic 13,483,159 13,463,374 13,474,258 13,450,790 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Diluted 13,630,974 13,661,467 13,621,759 13,656,765 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (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, 2008 2007 2008 2007 Cash provided by (used in): Operations: Net income $ 4,577 $ 5,533 $ 5,711 $ 8,920 Items not involving cash from operations Depreciation and amortization expense 5,205 5,109 10,765 10,054 Deferred income taxes 1,302 1,628 104 2,595 Share-based compensation expense 292 251 569 459 Gain on sale of property and equipment (134) (101) (133) (72) Change in non-cash working capital components (9,419) (2,066) (10,532) (5,763) ---------- ---------- ---------- ---------- 1,823 10,354 6,484 16,193 Investments: Purchase of property and equipment (2,040) (6,870) (9,148) (11,420) Proceeds on sale of property and equipment 261 167 452 238 Additional payment due to acquisition of subsidiary - (6,383) - (6,921) ---------- ---------- ---------- ---------- (1,779) (13,086) (8,696) (18,103) Financing: Revolving credit facility and bank overdraft 4,703 6,838 11,328 10,122 Repayment of long-term debt (2,575) (2,255) (5,146) (4,510) Repayment of capital leases (2,001) (1,674) (4,242) (3,314) Issue of common shares upon exercise of stock options - 80 178 207 ---------- ---------- ---------- ---------- 127 2,989 2,118 2,505 Effect of translation adjustment on cash (171) (753) 94 (1,002) ---------- ---------- ---------- ---------- Decrease in cash position - (496) - (407) Cash and cash equivalent position, beginning of period - 1,543 - 1,454 ---------- ---------- ---------- ---------- Cash position, end of period $ - $ 1,047 $ - $ 1,047 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Change in non-cash working capital components: Accounts receivable $ (11,905) $ (6,354) $ (19,576) $ (13,364) Inventory, deposits and prepaid expenses (512) 696 (913) 1,083 Income and other taxes receivable/payable (163) (1,301) 968 (3,898) Accounts payable and accrued liabilities 3,161 4,893 8,989 10,416 ---------- ---------- ---------- ---------- $ (9,419) $ (2,066) $ (10,532) $ (5,763) ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Supplemental cash flow information Capital lease additions $ - $ 3,740 $ - $ 3,740 (additional financial information follows) Supplementary Segmented Financial Information (in thousands of United States dollars) (Unaudited) ----------------------------------- ----------------------------------- For the For the quarter ended quarter ended June 30, 2008 June 30, 2007 ----------------------------------- ----------------------------------- Inc. from Inc. from Revenue Operations OR% Revenue Operations OR% ----------------------------------- ----------------------------------- LTL 168,161 8,541 94.9 LTL 150,615 9,002 94.0 ----------------------------------- ----------------------------------- LOG 19,314 831 95.7 LOG 11,225 735 93.4 ----------------------------------- ----------------------------------- TL 8,515 321 96.2 TL 8,304 405 95.1 ----------------------------------- ----------------------------------- ----------------------------------- ----------------------------------- For the six For the six months ended months ended June 30, 2008 June 30, 2007 ----------------------------------- ----------------------------------- Inc. from Inc. from Revenue Operations OR% Revenue Operations OR% ----------------------------------- ----------------------------------- LTL 317,576 10,678 96.6 LTL 286,772 15,232 94.7 ----------------------------------- ----------------------------------- LOG 39,074 1,551 96.0 LOG 20,888 1,175 94.4 ----------------------------------- ----------------------------------- TL 16,847 700 95.8 TL 16,620 700 95.8 ----------------------------------- ----------------------------------- LTL SEGMENT - Statistical Information (Unaudited) -------------------------------------------------- For the quarter ended June 30, 2008 -------------------------------------------------- LTL Q. over Q. ($U.S.) Division % Change -------------------------------------------------- Revenue (000's) $ 168,161 11.6 -------------------------------------------------- No. of Shipments 1,037,700 (0.8) -------------------------------------------------- Weight (000's lbs) 1,587,453 2.0 -------------------------------------------------- Revenue per shipment $ 162.05 10.2 -------------------------------------------------- Revenue per CWT $ 10.59 7.1 -------------------------------------------------- -------------------------------------------------- Year-to-date -------------------------------------------------- LTL Yr.-to-date ($U.S.) Division % Change -------------------------------------------------- Revenue (000's) $ 317,576 10.7 -------------------------------------------------- No. of Shipments 2,015,511 (1.2) -------------------------------------------------- Weight (000's lbs) 3,077,927 1.8 -------------------------------------------------- Revenue per shipment $ 157.57 8.4 -------------------------------------------------- Revenue per CWT $ 10.32 5.3 -------------------------------------------------- >> %SEDAR: 00004231E %CIK: 0000946823 Richard Gaetz, President/CEO, Sean Washchuk, VP Finance/CFO, Vitran Corporation Inc., (416) 596-7664; Robert Rinderman, Steven Hecht, Jaffoni & Collins Incorporated, (212) 835-8500 or [email protected] Copyright ? 2008 Canada Newswire Ltd. 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