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

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