Algoma Central Corporation Announces 2015 First Quarter Results

(TSX : ALC)

ST. CATHARINES, ON, May 1, 2015 /CNW/ -  Algoma Central Corporation ("Algoma" – www.algonet.com) is reporting first quarter revenues for 2015 of $51,628 compared to $51,738 for the same period in 2014.  Increases in the Domestic Dry-Bulk and Real Estate segments were offset by reductions in the Product Tankers and Ocean Shipping segments.

The segment loss after income taxes was $21,146 compared to $20,311 for the first quarter in 2014. The increase in the loss was due primarily to reduced earnings in the Ocean Shipping segment as a result of a regulatory dry-docking. The Domestic Dry-Bulk, Product Tanker and Real Estate segment earnings after income taxes were all higher in 2015 when compared to the same period for 2014.

Net loss and basic loss per share were $22,992 and $0.59, respectively, compared to $21,866 and $0.56, respectively, for the same period last year.

The results from operations are as follows:

		Three Months Ended
		March 31				Favourable
		2015		2014		(Unfavourable)
Revenues
	Domestic Dry-Bulk	$	18,923	$	13,798	$	5,125
	Product Tankers	18,645		20,340		(1,695)
	Ocean Shipping	10,705		16,700		(5,995)
	Real Estate	7,929		7,229		700
		$	56,202	$	58,067	$	(1,865)
	Revenues of the joint ventures	(4,574)		(6,329)		1,755
		$	51,628	$	51,738	$	(110)

			Three Months Ended
			March 31				Favourable
			2015		2014		(Unfavourable)
Operating (loss) income net of income tax
	Domestic Dry-Bulk		$	(25,469)	$	(25,937)	$	468
	Product Tankers		3,228		1,734		1,494
	Ocean Shipping		658		3,684		(3,026)
	Real Estate		437		208		229
			(21,146)		(20,311)		(835)
Not specifically identifiable to segments
	Net gain on translation of foreign-denominated
		monetary assets and liabilities	332		720		(388)
	Interest expense ,net		(2,629)		(3,220)		591
	Interest income		434		292		142
	Income tax recovery		17		653		(636)
			$	(22,992)	$	(21,866)	$	(1,126)
Basic loss per common share			$	(0.59)	$	(0.56)	$	(0.03)

Cash Dividends

The Board of Directors has authorized payment of a quarterly cash dividend to shareholders of $0.07 per common share.  The cash dividend is payable on June 1, 2015 to shareholders of record on May 18, 2015. 

Annual General Meeting of Shareholders

Algoma is holding its annual general meeting of shareholders today, Friday May 1,  2015 at 11:30 a.m. EST at the St. Catharines Golf and Country Club. A recording of the meeting will be avaialble on the Company's website at www.algonet.com following the meeting.

About Algoma Central Corporation

Algoma Central Corporation operates the largest Canadian flag fleet of dry and liquid bulk carriers operating on the Great Lakes - St. Lawrence Waterway, including 17 self-unloading dry-bulk carriers, seven gearless dry bulk carriers and seven product tankers. Algoma also has interests in ocean dry-bulk and product tanker vessels operating in international markets. Algoma provides ship management services for other ship owners and owns a diversified ship repair and steel fabricating facility active in the Great Lakes and St. Lawrence regions of Canada. In addition, Algoma owns and manages commercial real estate properties in Sault Ste. Marie, St. Catharines and Waterloo, Ontario.

Cautionary Statements

This press release may include forward-looking information within the meaning of applicable securities laws including information concerning the business and future results of Algoma. Forward-looking statements in this press release include statements about the purchase of vessels by Algoma. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by this information. The statements in this press release are made as of the date of this release and are based on current expectations. Algoma undertakes no obligation to update forward-looking information, other than as required by law, or to comment on analyses, expectations, or statements made by third-parties in respect of Algoma, its financial or operating results or its securities. Algoma cautions that all forward-looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward-looking information, and that actual future results could be affected by a number of factors, many of which are beyond Algoma's control, including economic circumstances, technological changes, weather conditions and the material risks and uncertainties identified by Algoma and discussed on pages 12 to 16 of Algoma's Annual Information Form for the year ended December 31, 2014, which is available on SEDAR at www.sedar.com.

SOURCE Algoma Central Corporation

Ken Bloch Soerensen, President and CEO, 905-687-7885; Peter D. Winkley, CPA, CA, Vice President, Finance and CFO, 905-687-7897