MONTREAL, Que. — TransForce Income Fund this week announced what it termed significant increases in all key financial measures for the third quarter and nine months of 2006 which ended September 30.
TransForce increased its total revenue for the third quarter to $454 million from $384 million in the same period last year. EBITDA (Earnings before interest, taxes, depreciation and amortization), equivalent to operating income on TransForce’s financial statements, was $67.2 million for the quarter, an increase of 26.3% from $53.2 million for the same period last year.
For the first nine months of 2006, TransForce generated revenue of $1.4 billion, compared with $1.1 billion for the same period of 2005.
EBITDA, equivalent to operating income, was $180.5 million for the first nine months of 2006, an increase of 28.6% from the $140.4 million reported a year earlier.
During the third quarter, TransForce announced the acquisition of Byers Transportation System Inc., a less-than-truckload carrier headquartered in Edmonton, Alberta. Byers is expected to add approximately $70 million in annual revenue to TransForce, and serves more than 1,500 communities in Alberta, British Columbia, Northwest Territories and the Yukon, as well as through partner connections to the United States.
The Fund also acquired Howard’s Transport Services Inc. of Stony Plain, Alberta, a specialized oilfield services company founded in 1979 that moves a variety of heavy equipment, including drill rigs. It generates annual revenues of approximately $20 million.
Subsequent to the end of the third quarter, TransForce announced the sale of the non-core hazardous waste operations of Services Matrec Inc. for cash proceeds of $31.8 million.
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