MONTREAL, Que. — TransForce Inc. says its quarterly income ended Jan. 5, was $7.3 million, up nine per cent from $6.7 million in 2001.
However, net income for the third quarter was $4.5 million compared to $5.1 million for the corresponding quarter last year. The resulting earnings per share were one penny to $0.11 for the quarter.
“Strong cost containment at all levels of the organization significantly limited the detrimental effects that North American economic weakness might otherwise have had,” added Alain Bedard, president and chief executive officer of TransForce. “Furthermore, we have been doing extremely well in terms of cash flow generation, which has permitted us to substantially reduce our debt load and improve our balance sheet.”
Its wholly- owned subsidiaries operate in one or more of the four industry sectors, that is, less than truckload (LTL), truckload, specialized transport and logistical and warehousing services.
“In addition, with the acquisition of the majority of the assets of Daily Motor Freight Inc., the strategic alliance with R & L Carriers and the expected North American recovery, TransForce is well-positioned for the future,” adds Bedard.
Until the November 2001 acquisition, Daily Motor Freight had been a subsidiary of TCT Logistics, which has since gone into recievership. TransForce estimates the deal for Daily will boost TransForce’s annual revenues by approximately $31 million. Kenneth Lockett continues to direct the operations of Daily as president with the existing management and employees expected to remain in place.
“This was a win-win transaction for both our Company and TCT Logistics. We have acquired a good business, skilled work-force and talented management team,” says Bedard. “Daily Motor Freight’s less-than-truckload operations provide an excellent match with our existing services.”
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