TransForce’s Revenues $4.5B in Q1, Expects Bright 2015

by Sergio Gonzalez

MONTREAL, QC – TransForce CEO Alain Bédard says he expects the company’s “2015 total revenue to approach $4.5 billion,” after favorable first quarter results.

“Despite negative impacts from lower oil prices and harsh winter conditions that affected the East Coast. TransForce generated strong first-quarter results which reflect last year’s significant acquisitions, operating improvements and a favorable effect from currency variations due to our business mix,” Bédard says.

TransForce reported a total revenue of $1.03 billion in Q1, which reflects a 34 percent increase equalling $261.3 million. Net of fuel surcharge, revenue increased by 36 percent reaching $926.2 million. This increase includes acquisitions made by the company in the previous year, and the appreciation of US-dollar denominated revenue.

“The U.S. economy remains robust, while a weaker Canadian currency should create momentum in the Central Canada manufacturing sector to offset weakness in Western Canada resulting from lower oil prices,” Bédard says. “Given this business environment, we continue to expect 2015 total revenue to approach $4.5 billion and basic [earnings per share] to be in the range of $1.85 – $2.00.”

Income from operating activities was reported as $45 million, which represents 4.9 percent of revenue before fuel surcharge. This value increased by 35 percent from the $33.2 million reported last year. The increase includes $14.3 million earned from acquisitions and $2.8 million from existing gains (but affected in part by a reduction of $5.4 million in the value of gains on sale of assets.) EBIT increased in every sector except for Waste Management, which remained stable.

Net income for the company was $14.0 million ($0.13 per share, fully diluted), a stark difference from last year’s $5.9 million ($0.06 per share, fully diluted).

TransForce generated a solid free cash flow of $40.5 million ($0.40 per share) in the first quarter of 2015. This reported value increased 51 percent, from $26.7 million ($0.27 per share) a year ago. This free cash flow was mainly used to reduce long-term debt.

The company paid a net amount of $35.3 million during this quarter.

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