Algoma Central Corporation Announces Operating Results for the Three and Six Months Ended June 30, 2016

(TSX : ALC)

ST. CATHARINES, ON, Aug. 5, 2016 /CNW/ - Algoma Central Corporation ("Algoma" – www.algonet.com) today announced results for the three and six months ended June 30, 2016.

The Company is reporting 2016 second quarter revenues of $96,202 compared to $125,336 for the same period in 2015  The decrease in revenue occurred mainly in  Domestic Dry-Bulk and was due to reduced customer demand in all major commodities and the impact of fuel costs that are passed on directly to customers as part of the freight rate. Revenues in the Product Tanker segment decreased due primarily to diminished volumes on the East Coast and lower fuel prices. Partially offsetting these decreases was an improvement in the Ocean Shipping segment revenue due to more revenue days resulting from the addition of two vessels to the fleet in early January.

Revenues for the six months ended June 30, 2016 of $136,679 were $32,566 lower than revenues for the same period in the prior year. Domestic Dry-Bulk revenues decreased by $38,592, Product Tanker segment experienced a decrease of $13,602 and the Ocean Shipping segment had an increase of $19,628.

Segment operating earnings after income taxes for the 2015 second quarter includes a gain on cancelled shipbuilding contracts in the amount of $10,212. Excluding this item from the segment results, the earnings for the second quarter of 2015 would have been $12,748. Despite the significant drop in revenues, earnings for the 2016 second quarter of $12,069 were only $679 lower than last year. Improvements in earnings were realized in the Domestic Dry-Bulk, Ocean Shipping and the Global Short Sea Shipping segments. The Product Tanker segment had a decrease in segment earnings.  

The segment operating earnings after income taxes for both the 2016 and 2015 six - month periods include gains on shipbuilding contracts in the amount of $16,196 and $10,212, respectively. Excluding these items from the segment results, the loss for the six- months ended 2016 would have been $12,639 which compares to a loss for the 2015 six-month period of $11,609.

Net earnings and basic earnings per share from continuing operations for the 2016 second quarter were $11,981 and $0.31, respectively, compared to $22,379 and $0.58, respectively, for the same period last year. Net earnings and basic earnings per share from continuing operations for the 2016 six-months were $4,022 and $0.10, respectively, compared to a loss of $1,397 and $0.04 for 2015.

	Three Months				Six Months
	Ended June 30				Ended June 30
Revenues	2016		2015		2016		2015
Domestic Dry-Bulk	$	64,112	$	95,440	$	75,771	$	114,363
Product Tankers	16,041		19,513		24,556		38,158
Ocean Shipping	16,049		10,383		36,352		16,724
	$	96,202	$	125,336	$	136,679	$	169,245
	Three Months				Six Months
	Ended June 30				Ended June 30
Net Earnings (Loss) from Continuing Operations	2016		2015		2016		2015
Operating (loss) earnings net of income tax
Domestic Dry-Bulk	$	7,984	$	6,071	$	(19,731)	$	(18,021)
Gain on shipbuilding contracts	-		10,212		16,196		10,212
	7,984		16,283		(3,535)		(7,809)
Product Tankers	1,636		3,246		128		6,965
Ocean Shipping	3,762		6,077		11,030		7,297
Global Short Sea Shipping	902		—		1,392		—
Corporate	(2,215)		(2,646)		(5,458)		(5,277)
	12,069		22,960		3,557		1,176
Not specifically identifiable to segments
Net (loss) gain on foreign currency translation	2,468		1,707		2,443		2,039
Interest expense	(3,023)		(2,597)		(5,959)		(5,226)
Interest income	434		310		921		744
Income tax recovery	33		(1)		3,060		(130)
	$	11,981	$	22,379	$	4,022	$	(1,397)

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, six gearless dry bulk carriers and six product tankers. The Company has announced 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 and has a 50% in two other ocean dry-bulk vessels. 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 2016, Algoma announced a new strategic initiative to grow into attractive global niche markets, beginning with a fifty percent interest in a pneumatic cement carrier business.

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