Algoma Central Corporation Announces 2016 First Quarter Results

(TSX : ALC)

ST. CATHARINES, ON, May 10, 2016 /CNW/ - Algoma Central Corporation ("Algoma" – www.algonet.com) today announced results for its 2016 first quarter.

The Company is reporting 2016 first quarter revenues of $40,477 compared to $43,909 for the same period in 2015. The Domestic Dry-Bulk segment saw a decline in revenue due primarily to lower volumes in the salt sector as a result of a milder 2015-2016 winter. The Product Tanker segment revenue decreased due primarily to diminished volumes on the East Coast. Partially offsetting these decreases was a increase in the Ocean Shipping segment revenue in the 2016 first quarter compared to 2015 due primarily to more revenue days resulting from the addition of two vessels to the fleet in early January and the impact of a 2015 regulatory dry-docking on one of its vessels.

The segment operating loss after income taxes in 2016 includes a gain on shipbuilding contracts in the amount of $16,196. Excluding this item from the segment results, the loss for the first quarter of 2016 would have been $24,708 which compares to a loss for the 2015 first quarter of $21,784. 

Net loss and basic loss per share from continuing operations for the 2016 first quarter were $7,959 and $0.20 respectively, compared to $23,776 and $0.61, respectively, for the same period last year.

	Revenues	2016	2015
	Domestic Dry-Bulk	$      11,659	$      18,923
	Product Tankers	8,515	18,645
	Ocean Shipping	20,303	6,341
		$      40,477	$      43,909
	Net Loss from Continuing Operations	2016	2015
	Operating (loss) earnings net of income tax
	Domestic Dry-Bulk	$     (27,715)	$     (24,092)
	Gain on shipbuilding contracts	16,196	—
		(11,519)	(24,092)
	Product Tankers	(1,508)	3,719
	Ocean Shipping	7,268	1,220
	Global Short Sea Shipping	490	—
	Corporate	(3,243)	(2,631)
		(8,512)	(21,784)
	Not specifically identifiable to segments
	Net (loss) gain on foreign currency translation	(25)	332
	Interest expense	(2,936)	(2,629)
	Interest income	487	434
	Income tax recovery	3,027	(129)
		$       (7,959)	$     (23,776)

Additional details on the results can be found in the Company's Interim Condensed Consolidated Financial Statements and Management's Discussion and Analysis for the period.

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 will be paid on June 1, 2016 to shareholders of record on May 18, 2016.

About Algoma Central Corporation

Algoma Central Corporation operates the largest Canadian flag fleet of dry and liquid bulk carriers on the Great Lakes - St. Lawrence Waterway, including 13 self-unloading dry-bulk carriers, seven gearless dry bulk carriers and six product tankers. The Company has construction contracts for seven new Equinox Class domestic dry-bulk vessels as part of its on-going fleet renewal program. Algoma also owns four ocean dry-bulk vessels operating in international markets, has a 50% interest in three other ocean dry-bulk vessels and has a 50% interest in a cement carrier fleet supporting infrastructure projects world-wide. 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.

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