Fast-growing Canadian express and freight transport group TransForce today announced improvedprofits for the final quarter of 2012 and higher full-year results, boosted by several
acquisitions.The Montreal-based company spent $80.4 million of its “solid” cash flow on new businessacquisitions last year.
In the October-December fourth quarter, TransForce increased revenues to $778.4 million, up from$735.5 million a year ago, mainly driven by the contribution from the acquisitions of Quik X and IEMiller.
Q4 EBIT rose 15% to $64.1 million, or 8.2% of total revenue, up from $55.7 million, or 7.6%, theprevious year. Most of the year-over-year monetary increase in EBIT stemmed from successfulmeasures to optimize operations. Adjusted net income, which excludes the after-tax effect ofchanges in the fair value of derivatives and net foreign exchange gain or loss, rose 12% to $37.8million.
For the year ended December 31, 2012, total revenue reached $3.1 billion, up 17% from $2.7billion a year earlier. The increase was essentially attributable to a $530 million revenuecontribution from significant acquisitions made in 2011.
Reflecting successful optimization measures and greater overall efficiency, EBIT rose 33% to$247.1 million, or 7.9% of total revenue, up from $186.4 million, or 6.9% of total revenue, lastyear. More than half of the year-over-year monetary increase in EBIT stemmed from successfulmeasures to optimize operations. Also, all business segments of TransForce reported a higher EBITmargin in 2012 than a year earlier. Adjusted net income rose 40% to $143.9 million.
The Package and Courier segment had flat revenues of $302.9 million in Q4 but improved its EBITto $26.3 million, which was an 8.7% operating profit margin, from the previous year’s $19.8 millionthe previous year.
For the year as a whole, the division improved its operating profit to $78.3 million, up from$60.6 million last year. The operating profit margin improved to 6.7% from 6.2%. Revenues grew to$1,170 million from $971 million.
“In 2012, TransForce generated the highest revenues in its history and maintained excellentprofitability. Despite a generally weak economy, all business segments reported a higheryear-over-year EBIT margin. Operations generated strong free cash flow, allowing us to repurchasecommon shares, increase our dividend earlier in the year and reimburse long-term debt. It alsoprovided us the flexibility to further invest in our know-how and carry out our disciplinedacquisition strategy. These achievements result from our people’s relentless focus on maximizingefficiency at all levels and on their dedication to providing customer service that issecond-to-none,” said Alain Bédard, Chairman, President and Chief Executive Officer of TransForce.
Looking ahead, Bédard said: “The industry is facing difficult times and we do not seesignificant improvement before the end of 2013. Nonetheless, TransForce is committed to buildshareholder value by maximizing the return on its assets, notably through a constant focus onunlocking synergies from significant acquisitions made in the past two years.
“Rigorous cost controls and further efficiency gains should also generate a strong cash flow,which we will diligently use to invest in leading-edge technology, repurchase shares and reimburselong-term debt. A solid financial position allows TransForce to methodically pursue the executionof its selective acquisition strategy, thus continuing its evolution towards an asset-lightbusiness model,” he concluded.
