CALGARY — The bulk-trucking operation Trimac Transportation Ltd. has released its second quarter earnings showing a 9.4 percent increase in profit despite lower revenue.
Net income moved from $3.2 million in the second quarter of 2014 to $3.5 million in the most recent quarter, or an increase in basic earnings from $0.11 to $0.12.
Revenue before fuel surcharges fell 2.4 percent during the same time frame to $74.2 million. Fuel surcharge revenue alone declined 59% to $5.7 million.
Operating earnings were unchanged from a year ago at $5.7 million.
“Despite reduced revenue in the western Canadian provinces due to lower economic activity resulting from low oil and gas prices, Trimac has made significant inroads from the execution of their strategic plan that commenced in 2014,” the company said in a statement.
Implementation of a strategic plan has resulted in lower administration costs, reduced capital expenditures and operating efficiencies despite lower revenue, according to the company. Trimac estimates the company is 30 percent to about 50 percent through the process of implementing the plan, while the majority of the remaining initiatives will be implemented over the next 18 months.
In Trimac’s bulk trucking business revenue before fuel surcharge fell 3.9 percent from a year ago to $81.9 million in the second quarter of this year while third party revenue in its national tank services operation increased 23.9 percent to $5.7 million. Its bulk plus logistics business was nearly unchanged with $5 million in revenue.
Earning before interest, taxes, deprecation and amortization (EBITDA) for all three operations combined fell 3.5 percent to $11.1 million, though there were surges of 44.4 percent and 22.2 percent, respectively, in the national tank services and bulk plus logistics operations.
“Despite lower revenue in our western Canadian operations, we are very pleased that the execution of our operational excellence strategy is starting to generate positive results with a year-over-year increase in net income and earnings per share in the current quarter,” said Ed Malysa, president and chief operating officer.
According to Trimac, low oil prices not only impacted the oil and gas industry, but had a trickle down negative affect on many of the industries it serves.
“Although the Canadian economy was less robust than expected, our customers are not anticipating real growth for the remainder of the year and we anticipate more of the same volatility in revenue for the balance of the year,” Trimac said in a statement.
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