Vitran Reports 2012 Year-End and Fourth Quarter Results

Vitran Reports 2012 Year-End and Fourth Quarter Results                                    REMINDER:   Vitran management will conduct a conference call and webcast today: February                             20, at 10:00 a.m. ET,              to discuss the Company's 2012 fourth quarter results.     Conference call dial-in: 1-888-396-8049 or 416-764-8646 (International)            Live Webcast: www.vitran.com (select "Investor Relations")  TORONTO, Feb. 20, 2013 (GLOBE NEWSWIRE) --Vitran Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), a North American transportation firm, today announced year-end and quarterly financial results for the twelve- and three-month periods ended December 31, 2012 (all figures reported in $U.S.).  Year and fourth quarter ended December 31, 2012 highlights:    *Annual revenue increased 2.4% to $702.9 million for the 2012 year.   *Fourth quarter revenue decreased 4.7% to $164.3 million compared to a year     ago.   *Non-GAAP basis adjusted loss from continuing operations of $0.67 per share     for the fourth quarter of 2012 and adjusted loss from continuing     operations of $1.66 per share for the 2012 fiscal year.   *Agreement signed on February 12, 2013 to sell Supply Chain Operation for     $97.0 million.  For the year ended December 31, 2012, Vitran posted revenue of $702.9 million or 2.4% increase compared to $686.2 million for the 2011 year. Vitran reported a net loss from continuing operations of $42.6 million, or $2.60 per share for the year ended 2012 compared to net loss from continuing operations of $20.8 million, or $1.27 per share for the year ended 2011.  For the fourth quarter of 2012, Vitran reported consolidated revenue decreased to $164.3 million compared to $172.5 million in the fourth quarter of 2011. Net loss from continuing operations was $18.0 million or $1.09 per share for the fourth quarter of 2012 compared to a net loss from continuing operations of $10.0 million or $0.61 per share in the comparable quarter.  At the end of the fourth quarter of 2010, in accordance with FASB ASC 740-10, Vitran temporarily discontinued recording an income tax recovery and deferred tax asset for its U.S. operations. On a non-GAAP basis that would include adjusting for a tax recovery on Vitran's U.S. operations, the Company recorded an adjusted loss from continuing operations of $0.67 per share for the fourth quarter of 2012 and adjusted loss from continuing operations of $1.66 per share for 2012. Adjusted loss from continuing operations was $0.25 per share for the fourth quarter of 2011 and $0.62 per share for 2011. The adjusted loss from continuing operations for 2011 excludes the impact of a $1.0 million one-time write off of deferred financing costs related to Vitran's previous senior credit agreement and a $2.1 million charge recorded in 2011 related to the sale of facilities and write-down to estimated fair value for the remaining vacant properties held for sale.  As previously announced on February 12, 2013, Vitran signed an agreement to sell its Supply Chain Operation (SCO) business to Legacy Supply Chain for $97.0 million in cash proceeds, subject to working capital adjustments. The sale of the SCO business is expected to close by March 1, 2013, upon completion of the Legacy financing, and is subject to customary conditions for this type of transaction. Vitran intends to use a portion of the net proceeds from this transaction to fully reduce its outstanding debt under its senior revolving credit facility, and will have approximately $50.0 million of remaining cash on the balance sheet. The operating results of the segment have been recorded as a discontinued operation.  "This marks a new beginning for Vitran Corporation as a pure LTL company. With the pending sale of our SCO business, expected to close March 1, 2013, Vitran will continue to focus on building a premier North American LTL company," stated Vitran President and Chief Executive Officer Rick Gaetz.  "We are very pleased with the progress being made in U.S. LTL by the new management team, with additional key members joining Vitran part-way through the third quarter. Unfortunately, this progress is not yet reflected in the operating results.However, our service product to our customer is greatly improved, we are achieving efficiencies throughout the operations and our commercial effort is organized and targeted.The use of our new technology continues to be optimized helping to drive all our efforts to improve results at U.S. LTL.  "Our mission in 2013 is clear: to create earnings momentum in U.S. LTL, by delivering a solid service product to our customers, thereby allowing us to grow density, revenue and yield.Canadian LTL will continue its commercial momentum built on a nicely profitable 2012 and we will focus efforts on our trans-border product offering which sets Vitran apart in the market place.Finally, I would like to thank all of our employees for their hard work and dedication and look forward to a significantly improved 2013," concluded Mr. Gaetz.  Operating Results  The Company posted a loss from operations in its LTL division for the 2012 fourth quarter of $15.3 million compared to $4.2 million for the 2011 fourth quarter, adjusted for the real estate losses. The LTL division posted an OR (operating ratio) of 109.3% compared to an OR of 102.4% in the comparable period a year ago.On a year over year basis, shipments and tonnage both increased 1.8% and 0.5% respectively, in the LTL division.  About Vitran Corporation Inc.  Vitran Corporation Inc. is a North American group of transportation companies offering less-than-truckload services throughout the United States and Canada.To find out more about Vitran Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), visit the website at www.vitran.com.  The Vitran Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7302  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)                                                                                                        Dec 31, 2012 Dec 31, 2011                                              (audited)    (audited)                                                           Assets                                                     Current assets:                                            Cash and cash equivalents                     $ 233        $ 1204 Accounts receivable                            65,291       73,439 Inventory, deposits and prepaid expenses       10,131       10,819 Current assets of discontinued operations      11,436       11,093 Deferred income taxes                          92           175                                              87,183       96,730                                                           Property and equipment                         131,640      123,521 Intangible assets                              2,707        4,773 Goodwill                                      5,579        5,458 Long-term assets of discontinued operations    11,388       11,776                                              $ 238,497    $ 242,258                                                             Liabilities and Shareholders' Equity                         Current liabilities:                                        Accounts payable and accrued liabilities      $ 67,744     $ 66,378 Income and other taxes payable                 517          912 Current liabilities of discontinued operations 14,068       14,855 Current portion of long-term debt              3,339        6,817                                              85,668       88,962                                                           Long-term debt                                 101,997      67,072 Deferred income taxes                          1,175        1,251                                                             Shareholders' equity:                                        Common shares                                  99,954       99,746 Additional paid-in capital                     5,708        5,334 Accumulated deficit                            (60,889)     (24,914) Accumulated other comprehensive income         4,884        4,807                                              49,657       84,973                                              $ 238,497    $ 242,258                   (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            Twelve months                               ended Dec 31,            ended Dec 31,                                                                                              2012        2011       2012       2011 Revenue                       $164,329   $172,484  $702,914  $686,242                                                                 Operating expenses            176,928      176,562     725,331     685,857 Depreciation and amortization 3,959       3,684      15,435    14,969                              180,887      180,246     740,766     700,826 Loss from continuing                                             operations before undernoted  (16,558)    (7,762)    (37,852)   (14,584)                                                                 Interest expense, net         1,430        2,457       5,417       6,808                                                                 Loss from continuing operations before income      (17,988)     (10,219)    (43,269)    (21,392) taxes                                                                 Income taxes                  (32)       (253)     (643)      (612)                                                                 Net loss from continuing      (17,956)    (9,966) (42,626) (20,780) operations                                                                 Discontinued operations, net  2,060     1,894    6,651     6,767 of tax                                                                 Net loss                       (15,896)  (8,072) (35,975) (14,013)                                                                 Basic and Diluted income (loss) per share                         Net loss from continuing      $(1.09)    $(0.61)   $(2.60)  $(1.27) operations Discontinued operations       $ 0.12     $0.12     $ 0.41   $0.41 Net loss                      $(0.97)    $(0.49)   $(2.19)  $(0.86)                                                                 Weighted average number of                                       shares: Basic                         16,399,241  16,331,241 16,391,252 16,326,760 Diluted                       16,399,241  16,331,241  16,391,252 16,326,760                        (Statements of Cash Flows follows)                                           Vitran Corporation Inc. Consolidated Statements Of Cash Flows (Unaudited) (in thousands of United States dollars, US GAAP)                                 Three month           Twelve months                                 ended Dec 31,         ended Dec 31,                                2012        2011       2012        2011 Cash provided by (used in):                                      Operations:                                                      Net loss                        $ (15,896) $(8,072) $(35,975) $(14,013) Items not involving cash from                                    operations: Depreciation and amortization   3,959      3,684     15,435    14,969 Deferred income taxes           48         193       10         288 Share-based compensation        102        125       431        501 expense Loss (gain) on sale of property (4)        2,038     (235)      1,945 and equipment Income from discontinued        (2,060)    (1,894)   (6,651)    (6,767) operations Change in non-cash working       9,485     6,013   10,787    (122) capital components Continuing operations           (4,366)    2,087     (16,198)   (3,199) Discontinued operations          929       1,790   6,812     9,136                                (3,437)   3,877    (9,386)    5,937 Investments:                                                     Purchase of property and        (3,642)    (609)     (16,654)   (7,644) equipment Proceeds on sale of property    320        1,385     2,200      1,808 and equipment Acquisition of business assets  --        --       --         (1,737) Continuing operations           (3,322)    776       (14,454)   (7,573) Discontinued operations         (125)      6,454    (883)      6,138                                (3,447)    7,230      (15,337)   (1,435)                                                                 Financing:                                                       Change in revolving credit      (10,881)   (774)     9,830      18,920 facility and bank overdraft Repayment of long-term debt     (3,014)    (5,000)   (4,490)    (16,000) Proceeds from long-term debt    22,299     --        22,299     -- Repayment of capital leases     (437)      (860)     (2,968)    (3,610) Financing costs                 (980)     (2,286)  (980)      (2,286) Issue of common shares upon     --        --       151       83 exercise of stock options                                6,987      (8,920)   23,842     (2,893)                                                                 Effect of foreign exchange      130       (983)    (90)      (405) translation on cash                                                                 Increase (decrease) in cash and 233        1,204    (971)      1,204 cash equivalents Cash and cash equivalents,      --        --       1,204     -- beginning of period Cash and cash equivalents, end  $233      $1,204   $233      $ 1,204 of period                                                                 Change in non-cash working                                       capital components: Accounts receivable             $15,316   $5,909   $8,148    $(9,989) Inventory, deposits and prepaid 1,426      1,482     1,668      601 expenses Income and other taxes payable  --         500       (395)      613 Accounts payable and accrued    (7,257)   (1,878)  1,366    8,653 liabilities                                $9,485    $6,013   $10,787   $(122)                    (additional financial information follows)   Statistical Information (Unaudited) For the quarter ended Dec 31, 2012 ($U.S.)                               LTL                 Q. over Q.                                      Division            % Change Revenue (000's)                       $164,329            * (5.2%) No. of Shipments                      996,115             (5.7%) Weight (000's lbs)                    1,480,907           (5.0%) Revenue per shipment                  $164.97             * (0.5%) Revenue per CWT                       $11.10              * (0.3%)                                                           For the twelve months ended Dec 31, 2012 ($U.S.)                               LTL                 Y. over Y.                                      Division            % Change Revenue (000's)                       $702,914            * 2.8% No. of Shipments                      4,374,202           1.8% Weight (000's lbs)                    6,430,070           0.5% Revenue per shipment                  $160.70             * 0.9% Revenue per CWT                       $10.93              * 2.3%  * All % changes have been normalized for the impact of foreign exchange fluctuation, period over period    Non-GAAP Measures                         Three months  Three months  Twelve months Twelve months                        ended Dec 31, ended Dec 31, ended Dec 31, ended Dec 31,                                                                                     2012         2011         2012          2011 Net loss from          $(17,956) $(9,966)   $(42,626)   $(20,780) continuing operations Real estate losses,    --            1,258         --            1,258 net of tax Fee write off, net of  --            691           --            691 tax Tax valuation allowance from         6,949       3,882       15,480      8,737 continuing operations                                                                Adjusted net loss from $(11,007)   $(4,135)    $(27,146)   $(10,094) continuing operations                                                               Weighted average                                               shares outstanding: Basic                  16,399,241   16,331,241   16,391,252   16,326,760 Diluted                16,399,241   16,331,241   16,391,252   16,326,760 Adjusted basic and diluted loss per share                                         from continuing        $ (0.67)     $ (0.25)     $ (1.66)     $ (0.62) operations  CONTACT: Richard Gaetz, President/CEO          Fayaz Suleman, VP Finance/CFO          Vitran Corporation Inc.          416/596-7664  Vitran Corporation Logo  
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