CALGARY, Alta. — Trimac Income Fund released the financial results of the fund and Trimac Transportation Services for the third quarter of 2006, with significant increases from the same period a year prior.
Net earnings achieved a 44% increase to $5.9 million, while revenues increased by 7% to $83.6 million.
The Western division operations continued their strong revenue growth and enhanced profitability, with improvements in all operations excluding woodchips. As well the Eastern division results continued to rebound with increased revenues and significant improvements in cash flow over the prior year’s quarter.
“The western division is expected to continue to grow as a result of new business awards and the continued strength of the western Canadian economy,” commented Terry Owen, president and CEO of Trimac. “In the eastern division, we look forward to solid performance as a result of restructuring initiatives, although we do anticipate an increasingly competitive tender environment as a result of economic conditions in the Ontario and Quebec market.”
“The hallmark of Trimac’s strategy is stability through diversification within the bulk-trucking sector,” he added. “We are diversified by customer, product, industry and geography. This diversification, together with acquisitions and new business awards, cause us to continue to be optimistic when assessing the outlook for our business.”
On Oct. 1, Trimac acquired the JeffBrett Group of Companies with estimated annual revenues of $10 million. To facilitate growth opportunities, Trimac has reached an agreement with its lenders to expand its line of credit to $45 million, an increase of $20 million.
As for the future of income funds in regards to the new tax legislation, the company can not fully estimate the impact it may have at this time.
“Due to the limited information available at this time, management is unable to assess the impact of the proposed measures on Trimac and its unitholders. Unitholders are encouraged to contact their own financial and tax advisors regarding the potential tax consequences of the federal government’s announcement,” the company said in a news release.
Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry. All posts by Truck News