TORONTO, July 22, 2010 (GLOBE NEWSWIRE) -- Vitran Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), a North American transportation and supply chain firm, today announced financial results for the second quarter of 2010 and the six-month period ended June 30, 2010 (all figures reported in $U.S.).

Vitran reported a 293% increase in net income to $1.7 million, or $0.11 per diluted share, on revenues of $179.0 million for the quarter ended June 30, 2010. In the comparable 2009 three-month period, the Company achieved net income of $0.4 million, or $0.03 per diluted share on revenue of $158.7 million. The majority of the consolidated increases in revenue and profitability were driven by significant improvements in the LTL segment.

"We continue to be pleased with the improvement in the LTL segment's results and strong performance in the Supply Chain Operation. Our LTL tonnage increased 10% for the quarter, but most importantly our yield grew sequentially each month from February 2010. Our LTL yield improved 2.1% from the beginning of the quarter to the end of the 2010 second quarter. We believe we can continue to increase yield through the third quarter," stated Vitran President and Chief Executive Officer Rick Gaetz.

"I am also pleased to announce that our Supply Chain Operation has secured contracts with major U.S. retailers to commence operations in two Western United States markets during the third quarter of 2010."

"Lastly, for the third consecutive quarter, Vitran was able to reduce its consolidated leverage ratio resulting in another 50 basis point reduction on our syndicated debt margins starting in the third quarter of 2010," concluded Mr. Gaetz. Revolving and term debt margin reductions have accumulated to 150 basis points over the past three quarters.

Segmented Results

The LTL (less-than-truckload) segment posted income from operations for the 2010 second quarter of $3.9 million, with an OR (operating ratio) of 97.4% compared to income from operations of $1.2 million and an OR of 99.1% in the comparable period a year ago. In the comparable second quarters, shipments and tonnage improved 6.1% and 9.7% respectively in the LTL segment.

The Supply Chain Operation posted income from operations of $1.4 million and an OR of 93.3% in the second quarter of 2010 compared to income from operations of $1.4 million and OR of 92.3% in the second quarter of 2009. The Truckload segment achieved income from operations during the three-month period ended June 30, 2010 of $184,000, compared to $256,000 in 2009, and the Truckload OR was 98.0%, compared to an OR of 97.0% in the prior year second quarter.

About Vitran Corporation Inc.

Vitran Corporation Inc. is a North American group of transportation companies offering less-than-truckload, supply chain, truckload, and freight brokerage services. To find out more about Vitran Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), visit the website at www.vitran.com.

The Vitran Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7302

This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Forward-looking statements may be generally identifiable by use of the words "believe", "anticipate", "intend", "estimate", "expect", "project", "may", "plans", "continue", "will", "focus should" "endeavor" or the negative of these words or other variations on these words or comparable terminology . These forward-looking statements are based on current expectations and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially from those expressed or implied by such forward-looking statements.

Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Vitran's actual results, performance or achievements to differ materially from those projected in the forward-looking statements. Factors that may cause such differences include, but are not limited to, technological change, increases in fuel costs, regulatory changes, the general health of the economy, seasonal fluctuations, unanticipated changes in railroad capacities, exposure to credit risks, changes in labour relations and competitive factors. More detailed information about these and other factors is included in the annual MD&A on Form 10K under the heading "General Risks and Uncertainties." Many of these factors are beyond the Company's control; therefore, future events may vary substantially from what the Company currently foresees. You should not place undue reliance on such forward-looking statements. Vitran Corporation Inc. does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
 
REMINDER:
Vitran management will conduct a conference call and webcast today: July 22, at 11:30 a.m. ET,
to discuss the Company's 2010 second quarter results
Conference call dial-in: 1-888-575-5160 or 416-764-8633 (International)
Live Webcast: www.vitran.com (select "Investor Relations")
 
 
Vitran Corporation Inc.
Consolidated Balance Sheets
(in thousands of United States dollars, US GAAP)
     
  June 30, 2010 Dec. 31, 2009
  (unaudited) (audited)
     
Assets    
Current assets:    
Accounts receivable  $80,796 $69,591
Inventory, deposits and prepaid expenses 10,224 11,539
Income and other taxes receivable 2,770 683
Deferred income taxes 3,465 3,495
  97,255 85,308
     
Property and equipment 140,055 145,792
Intangible assets 9,511 10,766
Goodwill 18,801 18,878
Deferred income taxes 33,857 33,594
  $299,479 $294,338
     
Liabilities and Shareholders' Equity    
Current liabilities:    
Bank overdraft $1,124 $105
Accounts payable and accrued liabilities  71,465 65,446
Current portion of long-term debt 15,927 17,125
  88,516 82,676
     
Long-term debt 72,043 72,956
Other 2,227 2,919
     
Shareholders' equity:    
Common shares 99,584 99,584
Additional paid-in capital 4,560 4,264
Retained earnings 30,080 29,281
Accumulated other comprehensive income 2,469 2,658
  136,693 135,787
  $299,479 $294,338
 
 
Vitran Corporation Inc.
Consolidated Statements Of Income
(Unaudited)
(in thousands of United States dollars except per share amounts, US GAAP)
 
   Three months ended June 30,   Six months ended June 30,
   2010  2009  2010  2009
Revenue  $ 179,007  $ 158,682  $ 344,938  $ 298,317
Operating expenses 170,076 151,698  330,874  289,160
Depreciation and amortization expense  4,789  4,947   9,724   9,974
  174,865 156,645 340,598 299,134
         
Income (loss) from operations before undernoted 4,142  2,037   4,340  (817)
         
Interest expense, net 1,920 2,514 4,023 4,710
         
Income (loss) from operations before income taxes 2,222 (477) 317 (5,527)
         
Income (recovery) taxes    494    (917)   (482)   (3,611)
         
Net income (loss)  $  1,728  $   440  $ 799   $ (1,916)
         
Basic and Diluted income (loss) per share --        
Net income (loss)  $ 0.11  $ 0.03   $ 0.05   $ (0.14)
         
Weighted average number of shares:        
Basic 16,266,441 13,498,159  16,266,441  13,498,159
Diluted 16,365,410 13,592,162  16,359,079  13,498,159
 
 
Vitran Corporation Inc.
Consolidated Statements Of Cash Flows
(Unaudited)
(in thousands of United States dollars, US GAAP)
     
  Three months ended June 30, Six months ended June 30,
  2010 2009 2010 2009
Cash provided by (used in):        
         
Operations:        
Net income (loss)  $ 1,728  $ 440  $ 799  $ (1,916)
Items not involving cash from operations:        
Depreciation and amortization expense  4,789  4,947   9,724   9,974
Deferred income taxes  138  (966)  (219)  (3,286)
Share-based compensation expense  143  206  296  440
Gain on sale of property and equipment  (20)  (8)  (164)  (437)
Change in non-cash working capital components    (2,471)    (6,817)   (6,180)   (7,313)
   4,307  (2,198)  4,256  (2,538)
Investments:        
Purchase of property and equipment  (1,116)  (1,822)  (3,981)  (3,449)
Proceeds on sale of property and equipment    116    98   826   1,145
   (1,000)  (1,724)  (3,155)  (2,304)
Financing:        
Revolving credit facility and bank overdraft  837  8,453  8,659  13,079
Repayment of long-term debt  (3,447)  (2,268)  (7,355)  (4,536)
Repayment of capital leases  (1,124)  (1,392)  (2,397)  (3,212)
Issue of Common Shares upon exercise of stock options   --   --   --   --
   (3,734)  4,793  (1,093)  5,331
         
Effect of translation adjustment on cash   427   (871)   (8)   (489)
         
Increase in cash and cash equivalents  --  --  --  --
Cash and cash equivalent position, beginning of period  --   --    --    --
Cash and cash equivalent position, end of period  $  --  $ --  $ --  $ --
         
Change in non-cash working capital components:        
Accounts receivable  $ 1,257  $ (6,422)  $ (11,205)  $ (6,489)
Inventory, deposits and prepaid expenses  1,687  (1,130)  1,315  (818)
Income and other taxes recoverable/payable  (1,105)  (414)  (2,309)  (1,137)
Accounts payable and accrued liabilities   (4,310)   1,149    6,019    1,131
   $ (2,471)  $ (6,817)  $ (6,180)  $ (7,313)
 
 
Supplementary Segmented Financial Information
(in thousands of United States dollars) (Unaudited)
   
For the quarter ended June 30, 2010   For the quarter ended June 30, 2009  
  Revenue Inc. from Operations OR%   Revenue Inc. from Operations OR%
LTL $ 148,826  $ 3,856 97.4 LTL $ 131,667  $ 1,157 99.1
LOG $ 20,887  $ 1,401 93.3 LOG $ 18,569  $ 1,433 92.3
TL $ 9,294  $ 184 98.0 TL $ 8,446  $ 256 97.0
               
   
For the six months ended June 30, 2010   For the six months ended June 30, 2009  
  Revenue Inc. from Operations OR%   Revenue Inc. from Operations OR%
LTL $ 285,844  $ 3,233 98.9 LTL $ 247,030  $ (1,527) 100.6
LOG $ 41,012  $ 2,764 93.3 LOG $ 34,831  $ 1,854 94.7
TL $ 18,082  $ 672 96.3 TL $ 16,456  $ 448 97.3
 
 
LTL SEGMENT – Statistical Information
(Unaudited)
 
For the quarter ended June 30, 2010  
($U.S.) LTL Division Q. over Q. % Change
Revenue (000's)  $ 148,826  * 10.0%
No. of Shipments  1,013,792 6.1%
Weight (000's lbs)  1,522,355  9.7%
Revenue per shipment  $ 146.80  *   3.7%
Revenue per CWT  $ 9.78   *   0.2%
 
For the six-months ended June 30, 2010  
($U.S.) LTL Division Q. over Q. % Change
Revenue (000's)  $ 285,844  * 11.1%
No. of Shipments  1,960,111 8.3%
Weight (000's lbs)  2,953,951 10.9%
Revenue per shipment  $ 145.83  * 2.6%
Revenue per CWT  $ 9.68  * 0.2%

* All % changes have been normalized for the impact of foreign exchange fluctuation, period over period
CONTACT:  Vitran Corporation Inc.          Richard Gaetz, President/CEO          Sean Washchuk, VP Finance/CFO          416/596-7664

Vitran Corporation Logo

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