|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 Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay 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. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Feb. 12, 2016 06:00 AM EST Reads: 247
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
Feb. 12, 2016 05:45 AM EST Reads: 455
Silver Spring Networks, Inc. (NYSE: SSNI) extended its Internet of Things technology platform with performance enhancements to Gen5 – its fifth generation critical infrastructure networking platform. Already delivering nearly 23 million devices on five continents as one of the leading networking providers in the market, Silver Spring announced it is doubling the maximum speed of its Gen5 network to up to 2.4 Mbps, increasing computational performance by 10x, supporting simultaneous mesh communic...
Feb. 12, 2016 05:00 AM EST
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Feb. 12, 2016 02:30 AM EST Reads: 224
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
Feb. 12, 2016 12:45 AM EST Reads: 405
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Feb. 12, 2016 12:00 AM EST Reads: 281
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
Feb. 11, 2016 10:00 PM EST Reads: 124
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze 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. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Feb. 11, 2016 03:45 PM EST Reads: 418
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, 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. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Feb. 11, 2016 02:45 PM EST Reads: 444
The Quantified Economy represents the total global addressable market (TAM) for IoT that, according to a recent IDC report, will grow to an unprecedented $1.3 trillion by 2019. With this the third wave of the Internet-global proliferation of connected devices, appliances and sensors is poised to take off in 2016. In his session at @ThingsExpo, David McLauchlan, CEO and co-founder of Buddy Platform, will discuss how the ability to access and analyze the massive volume of streaming data from mil...
Feb. 11, 2016 01:45 PM EST
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.
Feb. 11, 2016 01:45 PM EST
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of 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, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Feb. 11, 2016 01:30 PM EST Reads: 444
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
Feb. 11, 2016 12:00 PM EST Reads: 218
WebSocket is effectively a persistent and fat pipe that is compatible with a standard web infrastructure; a "TCP for the Web." If you think of WebSocket in this light, there are other more hugely interesting applications of WebSocket than just simply sending data to a browser. In his session at 18th Cloud Expo, Frank Greco, Director of Technology for Kaazing Corporation, will compare other modern web connectivity methods such as HTTP/2, HTTP Streaming, Server-Sent Events and new W3C event APIs ...
Feb. 11, 2016 12:00 PM EST
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze 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. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
Feb. 11, 2016 11:30 AM EST Reads: 253
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, 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. Avere delivers a more modern architectural approach to storage that doesn’t require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbuilding of data centers ...
Feb. 11, 2016 11:30 AM EST
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
Feb. 11, 2016 11:00 AM EST Reads: 135
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.
Feb. 11, 2016 10:15 AM EST
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
Feb. 11, 2016 09:15 AM EST Reads: 209
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, 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. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...
Feb. 11, 2016 09:00 AM EST Reads: 118