ENP Newswire -
Release date- 01082014 -
For the current quarter revenue before fuel surcharges increased
Higher volumes with existing customers in petroleum hauling, dry bulk and pressure commodities contributed to the bulk trucking segment's revenue growth, as well as rate increases with various customers. In addition, new business and some campaign hauling in pressure and dry bulk commodities and in
For the current year revenue before fuel surcharges improved
These improvements were partially offset by some business losses in pressure and resource commodities. National Tank Services' third party revenue growth was attributable to higher volumes from existing customers and some new business while
Operating expenses, which includes direct costs net of fuel surcharge revenue (net direct costs) and selling and administrative costs, for the current quarter increased, as a result of the revenue growth, 4.4 percent over the prior quarter to
In the bulk trucking segment revenue growth resulted in increased driver and leased operator remuneration, higher permits and toll costs, and higher maintenance costs. Additional maintenance costs also contributed to the rise in operating expenses while reduced training and insurance costs partially mitigated the increase as well as lower salary, office, management incentive and rental costs.
These reductions relate to administration streamlining and nonrecurring expenses relating to the corporate office move in May, 2013. National Tank Services' operating expenses increased
For the current year, operating expenses as a percentage of revenue before fuel surcharges decreased slightly from 88.5 percent to 88.3 percent. Operating inefficiencies from severe winter weather in the first quarter drove operating expenses up in the bulk trucking segment causing unscheduled maintenance requirements, escalating fuel costs and higher accident costs.
Revenue growth and start up costs for the new business awarded in the bulk trucking segment also contributed to the increase in operating expenses, which included increased driver and leased operator remuneration and higher maintenance, permits and tolls and facility costs. Reduced training and cleaning costs partially offset this increase as well as lower selling and administrative costs resulting from our administration restructuring that was previously mentioned. National Tank Services' operating expenses were higher due to higher revenue volumes and increased wage costs and
EBITDA increased 12.7 percent in the current quarter to
Earnings per share for the current quarter increased to
'Trimac is focused on operational excellence to lower our operating costs, improve asset utilization and increase both market share and profitability. We expect revenue growth in the back half of 2014 to be similar to the first half of the year,' commented
Declaration of Quarterly Dividend
The Board of Directors today declared a dividend of
Forward Looking Statements
Certain information included in this news release constitutes 'forward looking statements'. Trimac cautions that, by their nature, these forward looking statements are based on suppositions, risks, and uncertainties as well as on management's best possible evaluation of future events. Trimac cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty.
Such forward looking statements are not guarantees of future performance and the actual results or performance of Trimac or the transportation industry may be materially different from the outlook or any future results or performance implied by such statements.
Non GAAP Financial Measures
Net direct costs, adjusted EBITDA, adjusted net income, cash generated from operations, operating ratio before interest and tax, adjusted free cash flow and earnings per share adjusted are financial measures not prescribed by IFRS and are not likely to be comparable to similar measures presented by other issuers. Management considers these non GAAP measures useful in evaluating the performance of Trimac's operations.
These measures should be considered in addition to, not a substitute for, the financial performance measures prepared in accordance with IFRS.
Trimac also provides third party transportation logistics services in
For more detailed information, please visit our website at www.trimac.com or SEDAR at www.sedar.com and review our MD&A and the unaudited condensed consolidated interim financial statements for the Company.
President & Chief Operating Officer
Tel: 403 298 5100
Fax: 403 298 5146
Tel: 403 298 5100
Fax: 403 298 5146
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