TORONTO, Feb. 10, 2011 (GLOBE NEWSWIRE) -- Vitran Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), a North American transportation and supply chain firm, today announced year-end and quarterly financial results for the twelve and three-month periods ended December 31, 2010 (all figures reported in $U.S.).
For the year ended December 31, 2010, Vitran posted consolidated revenue of $673 million a 13% increase compared to $595 million for the 2009 year. Vitran reported a net loss from continuing operations of $38.1 million and a $2.34 loss per diluted share for the year ended 2010. These results include a non-cash tax valuation allowance in continuing operations of $38.9 million included in deferred tax expense for the year. Excluding the impact of the tax valuation allowance, earnings from continuing operations were $0.05 per diluted share for 2010 compared to a loss from continuing operations of $0.32 per diluted share for 2009.
For the 2010 fourth quarter, Vitran reported consolidated revenue improvement of 10% to $172 million compared to $156 million in the 2009 fourth quarter. Including the aforementioned non-cash deferred tax valuation allowance, net loss from continuing operations for the quarter was $40.2 million and a $2.47 loss per diluted share. Excluding the impact of the tax valuation allowance, loss from continuing operations was $0.08 per diluted share for the 2010 fourth quarter compared to a loss from continuing operations of $0.15 per diluted share for the 2009 fourth quarter.
During the fourth quarter of 2010, the Company sold the majority of the assets of its Truckload segment. The proceeds and net working capital from the sale were approximately $5.0 million.
"The 2010 fourth quarter and year was a period of significant milestones. We divested ourselves of our non-core truckload operation, while retaining 20% of the newest trailing fleet to be redeployed in our core LTL operation. Our continuing operations returned Vitran to profitability for the year and our supply chain segment posted record revenue and income from operations. On a consolidated basis, we reduced our debt to a five year low, dropped our leverage ratio back to 2007 levels and earned another 50 basis point reduction in our interest rate spreads," stated President and Chief Executive Officer Rick Gaetz.
"Although the fourth quarter was not as good as we had planned financially, our LTL daily shipment count and daily tonnage in the quarter exceeded the 2009 fourth quarter. Pricing in our U.S. LTL business unit continued its positive trend improving from the third quarter of 2010. These positives were offset by higher than expected insurance-related expenses and purchased transportation costs."
"Lastly we continue to advance the previously announced Milan LTL acquisition and still anticipate closing the transaction on February 19, 2011. With this added density in our existing region and expanded territory in the southern states that this transaction brings, coupled with our pre-existing pricing and activity momentum, we believe Vitran is well positioned to take advantage of the improving economic environment in 2011," concluded Mr. Gaetz.
The LTL (less-than-truckload) segment posted a loss from operations for the 2010 fourth quarter of $1.7 million, with an OR (operating ratio) of 101.1% compared to a loss from operations of $2.6 million and an OR of 101.9% in the comparable period a year ago. In the comparable fourth quarters, shipments and tonnage increased 4.8% and 1.4%, respectively, in the LTL segment. The Supply Chain Operation segment for the 2010 fourth quarter posted an increase in revenue of 23% to $26.5 million, an 11% improvement in income from operations to $2.1 million and a 91.9% OR.
About Vitran Corporation Inc.
Vitran Corporation Inc. is a North American group of transportation companies offering less-than-truckload and supply chain services. To find out more about Vitran Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), visit the website at .
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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.
CONTACT: Richard Gaetz, President/CEO Sean Washchuk, VP Finance/CFO Vitran Corporation Inc. 416/596-7664