Welcome!

Microsoft Cloud Authors: Andreas Grabner, Stackify Blog, Liz McMillan, David H Deans, Automic Blog

News Feed Item

Contrans Group Inc. Announces Third Quarter Results

TSX:CSS

WOODSTOCK, ON, Nov. 12, 2012 /CNW/ -

Financial Highlights

($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  
Gross margin   24.1   21.4     21.6   21.6     70.5   21.4     58.2   20.7  
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)                                        
  - basic   33,694         35,794         33,961         35,794      
  - diluted     33,747           35,794           33,977           35,794      
Dividend declared per share $ 0.10       $ 0.10       $ 0.30       $ 0.30      
Depreciation   6.0         4.5         16.7         12.1      
Amortization of intangibles $ 1.1       $ 1.1       $ 3.1       $ 3.1      
(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 Contrans' shareholders."

RESULTS FROM OPERATIONS

Revenue

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.

CASH FLOW

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.

SEASONALITY

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.

FORWARD-LOOKING STATEMENTS

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.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus intern...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
SYS-CON Events announced today that EARP Integration will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. EARP Integration is a passionate software house. Since its inception in 2009 the company successfully delivers smart solutions for cities and factories that start their digital transformation. EARP provides bespoke solutions like, for example, advanced enterprise portals, business intelligence systems an...
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
SYS-CON Events announced today that Hitachi Data Systems, a wholly owned subsidiary of Hitachi LTD., will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City. Hitachi Data Systems (HDS) will be featuring the Hitachi Content Platform (HCP) portfolio. This is the industry’s only offering that allows organizations to bring together object storage, file sync and share, cloud storage gateways, and sophisticated search and...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry’s single source for the cloud. Fusion’s advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs ofte...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs oft...
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
The 21st International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo Silicon Valley Call for Papers is now open.
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...