TransForce Announces Solid 2012 First Quarter Results

• Total revenue increase of 40% to $788.2 million
• EBIT nearly doubled to $47.4 million, up from $24.4 million last year
• Strong increase in adjusted net income to $24.7 million, or $0.25 per share, from $9.3 million, or $0.09 per share a year ago
• Increased quarterly dividend to $0.13 per share from $0.115 per share

MONTREAL, April 26, 2012 /CNW Telbec/ - TransForce Inc. (TSX: TFI), a North American leader in the transportation and logistics industry, today announced its results for the first quarter ended March 31, 2012.

"TransForce generated solid results and built further shareholder value in the first quarter of 2012 by adhering to its core operating principles. Our constant drive to enhance operating efficiency and asset utilization led to a strong increase in our key EBIT metric. On the operating front, we remain proactive with regards to profit enhancement measures at Loomis Express and Dynamex, as we strive to rapidly achieve adequate margins. In parallel, we continue to further optimize our Less-Than-Truckload ("LTL") and Truckload ("TL") asset base and we are pleased to report improved margins in these two business segments, notwithstanding lower revenue in the TL segment. Finally, our strong performance in services to the energy sector was driven by improved efficiencies and cost controls in our existing operations and the acquisition of IE Miller," said Alain Bédard, Chairman, President and Chief Executive Officer of TransForce.

Financial highlights		Quarters ended March 31,
(in millions of dollars, except per share data)		2012	2011
Total revenue		788.2	561.3
Revenue excluding fuel surcharge		707.5	509.0
Income from operating activities (EBIT^1)		47.4	24.4
Free cash flow^2		38.3	45.9
Adjusted net income^3		24.7	9.3
	Per share - diluted ($)	0.25	0.09
Net income for the period		30.2	14.9
	Per share - diluted ($)	0.31	0.15

¹ Earnings before finance income and costs and income taxes.
² Net cash from operating activities less additions to property and equipment plus proceeds from sale of property and equipment.
³ Excluding the after-tax effect of changes in the fair value of derivatives, net foreign exchange gain or loss, and items that are not in the Company's normal business.

FIRST-QUARTER RESULTS
Total revenue increased $226.9 million, or 40%, to $788.2 million mainly as a result of acquisitions completed in 2011 and of Quik X, acquired on January 1, 2012. First-quarter EBIT amounted to $47.4 million, or 6.0% of total revenue, up from $24.4 million, or 4.3% of total revenue in the corresponding period a year earlier. Approximately 50% of the increase in monetary terms reflects the aforementioned acquisitions and the other half stems from stronger margins in the LTL and services to the energy sector segments as well as from successful measures to optimize efficiency and asset utilization.

Adjusted net income, which excludes the after-tax effect of changes in the fair value of derivatives, net foreign exchange gain or loss, and items that are not in the Company's normal business, rose to $24.7 million, or $0.25 per share, fully diluted, up sharply from $9.3 million, or $0.09 per share, fully diluted, last year. Net income for the period stood at $30.2 million, or $0.31 per share, fully diluted, versus $14.9 million, or $0.15 per share, fully diluted, in the first quarter of 2011.

SEGMENTED RESULTS

(in millions of dollars)		Quarters ended March 31,
		2012		2011
		$		$
Total revenue
	Package and Courier	285.8		148.6
	Less-Than-Truckload	166.0		123.1
	Truckload	150.4		153.1
	Specialized Services - Energy	120.4		78.4
	Specialized Services - Others	80.8		72.6
	Eliminations	(15.2)		(14.5)
Total		788.2		561.3
		$	% of Rev.	$	% of Rev.
Income from operating activities (EBIT)
	Package and Courier	13.8	4.8	9.2	6.2
	Less-Than-Truckload	6.0	3.6	(2.4)	(2.0)
	Truckload	8.4	5.6	5.1	3.3
	Specialized Services - Energy	14.9	12.4	6.8	8.7
	Specialized Services - Others	9.1	11.2	8.9	12.2
	Corporate	(4.8)		(3.2)
Total		47.4	6.0	24.4	4.3

SOLID CASH FLOW FROM OPERATIONS
Net cash from operating activities increased 97%, from $24.1 million in the first quarter of 2011 to $47.5 million. Free cash flow for the period amounted to $38.3 million, or $0.40 per share. Investments of $62.7 million made in business acquisitions during the first quarter of 2012 were financed by the cash flow generated over the period and by loans and borrowings.

QUARTERLY DIVIDEND INCREASED TO $0.13 PER SHARE
The Board of Directors of TransForce has approved a 13% dividend increase over its previous quarterly dividend of $0.115 per share and declared a quarterly dividend of $0.13 per outstanding common share of its capital. The dividend is payable on July 16, 2012 to shareholders of record at the close of business on June 30, 2012.

OUTLOOK
"Looking ahead, we remain of the opinion that economic conditions will continue to only marginally improve in 2012. As always, our priorities are to further improve efficiency and asset utilization, as well as generate strong cash flow to continue debt reduction. We will achieve these objectives by adhering to our operating principles, maximizing synergies in our network and continuing our transition to an asset light business model. As a North American leader in its market segments, TransForce is dedicated to offering winning solutions to its customers by investing in initiatives that leverage its know-how and technology. This firm commitment and precise execution of our growth strategy are the cornerstones of value creation for our shareholders," concluded Mr. Bédard.

CONFERENCE CALL
TransForce will hold a conference call for analysts and portfolio managers on Friday, April 27, 2012 at 9:00 a.m. Eastern Time, to discuss these results. Business media are also invited to listen to the call. Interested parties can join the call by dialling 1-888-231-8191. A recording of the call will be available until midnight, May 4, 2012, by dialling 1-855-859-2056 or 416-849-0833 and entering passcode 66324963.

ABOUT TRANSFORCE
TransForce Inc. is a North American leader in the transportation and logistics industry. Operating across Canada and the United States, TransForce creates value for shareholders by identifying strategic acquisitions and managing a growing network of wholly-owned, operating subsidiaries. Under the TransForce umbrella, companies benefit from corporate financial and operational resources to build their businesses and increase their efficiency. TransForce companies service the following segments:

• Package and Courier; 
• Less-Than-Truckload; 
• Truckload, which includes specialized truckload and dedicated services;
• Specialized Services, which includes services to the energy sector, waste management, logistics and ancillary transportation services.

TransForce Inc. (TFI) is publicly traded on the Toronto Stock Exchange (TSX). For more information, visit http://www.transforcecompany.com.

FORWARD-LOOKING STATEMENTS
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of TransForce. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for TransForce's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.

NON-IFRS MEASURES
EBIT, adjusted profit and free cash flow are financial measures not prescribed by IFRS and are not likely to be comparable to similar measures presented by other issuers. Management considers these to be useful information to assist investors in evaluating the Company's profitability, liquidity and ability to generate funds to finance its operations.

Note to readers:	Consolidated financial statements and Management's Discussion & Analysis are available on TransForce's website at www.transforcecompany.com.

 

Investors:      
Alain Bédard
Chairman, President and CEO
TransForce Inc.
[phone]
[email protected] 

Media:
Rick Leckner
MaisonBrison Communications
[phone]
[email protected]