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COMPETITION WATCH: Slow and steady growth a key to Contrans’ success

WOODSTOCK, Ont. -- The transportation services of Contrans Income Fund started strong in the first quarter of 2006 ...


WOODSTOCK, Ont. — The transportation services of Contrans Income Fund started strong in the first quarter of 2006 with a $12 million increase in revenue from the same quarter a year earlier.

“We are off to a great start in 2006,” stated Stan Dunford, chairman and CEO. “Contrans recorded its best first quarter operating performance since becoming an income trust in 2002. We have continued to redeploy the proceeds from the sale of our school bus business last summer in a manner that has been accretive to our unitholders. We are pleased with the performance of the acquisitions that we have made to date which have included an expanded presence in Alberta. We also experienced healthy internal growth in several of our core operations.”

Acquisitions generated additional revenues of $8.3 million and additional EBT of $0.6 million in the first quarter of 2006 compared to the same period in 2005. In addition, certain of the Contrans’ operations have grown internally.

“Although the market appears to be attracted to rapid growth companies, we are quite satisfied to grow at a more manageable rate. Admittedly, this disciplined approach towards growth does not make for great headlines and is conservative,” noted Dunford. “However, it has been part of a successful formula for Contrans even before we became a trust and is a key component of the sustainability of our distributions.”


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