|By PR Newswire||
|November 12, 2012 11:55 AM EST||
WOODSTOCK, ON, Nov. 12, 2012 /CNW/ -
|($CAD millions except per share amounts)|
|Three Months||Nine Months|
|For the periods ended September 30||2012||2011||2012||2011|
|Revenue||- as stated||$||130.9||$||116.2||$||388.2||$||324.9|
|- fuel surcharges||(18.1)||(16.0)||(58.0)||(44.3)|
|Revenue||- transportation services||112.8||100.0||%||100.2||100.0||%||330.2||100.0||%||280.6||100.0||%|
|Direct operating expenses - net of fuel surcharges (1)||88.7||78.6||78.6||78.4||259.7||78.6||222.4||79.3|
|General and administration expenses||12.1||10.7||11.4||11.4||35.9||10.9||32.7||11.7|
|Net financing costs||1.8||1.6||1.4||1.4||5.2||1.6||4.0||1.4|
|Earnings before income taxes||10.2||9.1||8.8||8.8||29.4||8.9||21.5||7.6|
|Income tax expense||3.0||2.7||2.5||2.5||8.8||2.7||6.5||2.3|
|Net earnings and comprehensive income||$||7.2||6.4||%||$||6.3||6.3||%||$||20.6||6.2||%||$||15.0||5.3||%|
|Earnings per share - basic and diluted||$||0.21||$||0.18||$||0.61||$||0.42|
|Weighted average shares outstanding (000s)|
|Dividend declared per share||$||0.10||$||0.10||$||0.30||$||0.30|
|Amortization of intangibles||$||1.1||$||1.1||$||3.1||$||3.1|
Referred to as "direct operating expenses" hereafter. See "Use of
Non-GAAP Financial Measures" below
"I am very pleased to announce that Contrans enjoyed one of its best third quarters" stated Stan G. Dunford, Contrans Group Inc.'s Chairman and Chief Executive Officer. "Our operations have been quite active to start the fourth quarter and 2012 is therefore shaping up to be one of the best years in Contrans' history. This is truly remarkable considering the current market conditions are much weaker than they were prior to the recession when Contrans established a string of record-setting financial performances."
"Internal growth and acquisitions have both contributed to Contrans' success this year" continued Mr. Dunford. "I am particularly proud of how well this growth has been managed. The operating challenges posed by our growth have been met with the tireless efforts and determination of our employees who have effected smooth transitions and integration of our newly acquired business units. I applaud them for their ongoing dedication and professionalism as Contrans continues to expand."
"Contrans' balance sheet remains strong" added Mr. Dunford. "Management
is executing its growth strategy with patience. Backed by financial
strength, however, management can also act quickly and aggressively
when suitable opportunities arise. We welcome the challenge of
rewriting Company financial records and adding long-term value for
RESULTS FROM OPERATIONS
Businesses acquired in 2012 ("acquisitions") contributed approximately $9.3 million of revenue from transportation services ("revenue") in the third quarter of 2012 ("2012 Q3") and $29.2 million in the nine month period ended September 30, 2012 ("YTD"). Contrans' YTD revenue has also increased as a result of contract awards from new customers and from being awarded new lanes from existing customers. Fuel surcharges have increased in 2012 compared to 2011 due to increased revenue and higher average fuel prices.
Direct operating expenses
Acquisitions added approximately $7.7 million in 2012 Q3 to direct operating expenses ($24.1 million YTD). Excluding the impact of acquisitions, provisions for insurance claims were $1.0 million higher in 2012 YTD than in 2011 YTD (no material change in 2012 Q3 compared to 2011 Q3). Depreciation of tractors and trailers was $0.7 million higher in 2012 Q3 than in 2011 Q3 ($2.7 million higher YTD). The impact of these increased costs was mitigated by improved equipment utilization.
General and administration expenses
Acquisitions added approximately $0.9 million of general and administration expenses in 2012 Q3 ($2.3 million YTD). Improved profit performance in 2012 compared to 2011 has resulted in an increase in the provision for management incentive plans by $0.5 million in 2012 Q3 compared to 2011 Q3 ($1.4 million increase 2012 YTD compared to 2011 YTD). This was partially offset by a $0.1 million reduction in compensation expense in 2012 Q3 compared to 2011 Q3 ($0.5 million reduction in 2012 YTD compared to 2011 YTD) due to the graded recognition of stock option expenses. Stock options were issued in 2011 Q2. In 2012 Contrans experienced an improvement in worker safety and as a result, provisions for the Ontario Workplace Safety and Insurance Board's New Experimental Experience Rating program were $0.4 million lower in 2012 Q3 compared to 2011 Q3 ($0.7 million YTD). The provision for doubtful accounts was reduced by $0.4 million in 2011 Q1 but this provision has not changed significantly in 2012. Professional fees of $0.6 million were incurred in the first half of 2012 relating to management's proposal to Contrans' shareholders to eliminate the Company's dual class share structure.
Net financing costs
Net financing costs have increased by $0.3 million in 2012 Q3 compared to 2011 Q3 ($1.1 million YTD). Financing costs increased in 2012 as a result of new equipment financing debt. Contrans' financing income has decreased in 2012 as the Company used cash and short-term investments to pay for three acquisitions and to purchase its own shares for cancellation under a normal course issuer bid ("NCIB") that has been completed.
Contrans has made three acquisitions to date in 2012 for cash consideration of $20.1 million. Details of these acquisitions can be found in note 6 of the attached interim financial statements.
Contrans has invested $23.3 million in total capital expenditures to date in 2012 including $4.8 million of expenditures that have been funded through finance leases. Contrans had invested $4.9 million in tractors and trailers for internal growth initiatives.
Contrans has purchased 1.6 million Class A shares for cancellation for consideration of $13.7 million in 2012 under its NCIB. The NCIB was initiated in November 2011 and was completed on April 4, 2012. The bid resulted in a total of 2.1 million Class A shares being purchased for cancellation at an average cost of $8.42 for total consideration of $17.7 million.
Generally, the second quarter is Contrans' strongest period. Volumes from customers in the construction industry typically increase in the spring, peak in the fall and then decline with the onset of winter. Some manufacturing customers close their plants during the summer and many customers either shut down their production facilities or otherwise reduce shipments during the Christmas holiday season.
USE OF NON-GAAP FINANCIAL MEASURES
Management has included a non-GAAP financial measure, "Direct operating expenses - net of fuel surcharges", to supplement its interim financial statements. This non-GAAP financial measure does not have any standardized meaning prescribed under IFRS and therefore it may not be comparable to similar measures employed by other issuers. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Management believes that it is important to isolate the effects of fuel surcharges, a volatile source of revenue and operating expenses, when analyzing operating results. Accordingly, the percentages in the Financial Highlights table were calculated using revenue from transportation services alone as the base. In addition, operating expenses are stated after netting fuel surcharges against fuel expenses in the Financial Highlights table. Management believes that this facilitates a better comparison of operating expenses and profit margins between periods.
Management's discussion and analysis contains certain forward-looking statements that involve a number of risks and uncertainties. Forward-looking statements relate to future events or future performance and include, but are not limited to, changes in government regulations regarding weights and dimensions of highway equipment, the age and condition of the transportation fleet and the growth of Contrans' business. Often, but not always, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue" or the negative of these terms or other comparable terminology. Such statements reflect the current views and estimates of management with respect to future events, as of the date such statements are made, and they involve known and unknown risks and uncertainties which may cause actual events or results to differ materially from those expressed or implied by forward-looking statements. In evaluating these statements, readers should specifically consider factors such as the risks outlined under "Risk Factors" in Contrans' Annual Information Form, which is available at www.sedar.com. Although Contrans has attempted to identify important factors that could cause actual events, actions or results to differ materially from those described in the forward-looking statements, there may be other factors that cause such events, actions or results to differ. Contrans is under no obligation (and expressly disclaims any such obligation) to update forward-looking statements if circumstances or management's views or estimates change. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements.
SOURCE Contrans Group Inc.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
May. 31, 2016 09:15 PM EDT Reads: 1,014
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
May. 31, 2016 09:00 PM EDT Reads: 2,080
18th Cloud Expo, taking place June 7-9, 2016, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some...
May. 31, 2016 09:00 PM EDT Reads: 3,334
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
May. 31, 2016 08:30 PM EDT Reads: 1,246
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
May. 31, 2016 08:00 PM EDT Reads: 2,509
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
May. 31, 2016 07:15 PM EDT Reads: 1,805
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
May. 31, 2016 07:15 PM EDT Reads: 1,909
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
May. 31, 2016 04:45 PM EDT Reads: 2,666
"What we see what happens when you have a completely networked society and the potential to now drive the value creation and the collaboration and the ecosystems that are possible when you start to be able to connect people and industries together in ways that have never been possible before," explained Esmeralda Swartz, VP of Marketing Enterprise & Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
May. 31, 2016 04:45 PM EDT Reads: 1,915
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
May. 31, 2016 02:30 PM EDT Reads: 1,508
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
May. 31, 2016 02:00 PM EDT Reads: 3,155
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
May. 31, 2016 01:45 PM EDT Reads: 1,811
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
May. 31, 2016 12:30 PM EDT Reads: 1,430
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
May. 31, 2016 12:00 PM EDT Reads: 1,518
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
May. 31, 2016 12:00 PM EDT Reads: 2,641
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
May. 31, 2016 11:45 AM EDT Reads: 2,144
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...
May. 31, 2016 10:15 AM EDT Reads: 2,951
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
May. 31, 2016 09:00 AM EDT Reads: 2,462
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
May. 31, 2016 08:45 AM EDT Reads: 2,435
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
May. 31, 2016 08:00 AM EDT Reads: 2,376