Vitran Corporation Inc. is a North American group of transportation companies offering less-than-truckload logistics truckload and freight brokerage services. Vitran Corp. Inc. has a market cap of $92 million; its shares were traded at around $6.8099 with a P/E ratio of 48.6 and P/S ratio of 0.1.
Highlight of Business Operations:Revenue decreased 21.3% to $139.6 million for the first quarter of 2009 compared to $177.5 million in the first quarter of 2008. Revenue in the LTL, Logistics and Truckload segments decreased 22.8%, 17.7% and 3.9%, respectively. Revenue for the first quarter of 2009 was impacted by a weaker Canadian dollar and decline in fuel surcharge revenue accounting for approximately $22.0 million of the consolidated revenue decline. Detailed explanations for the fluctuations in revenue are discussed below in “Segmented Results”.
The Company incurred interest expense of $2.2 million in the first quarter of 2009 compared to interest expense of $2.1 million for the same quarter a year ago. The Company s interest rate spread on its syndicated revolving and term debt was 200 bps greater than the first quarter of 2008; however, the underlying decline in average LIBOR borrowings on the syndicated debt partially offset the increase in spread resulting in a $0.1 million increase in interest expense.
The Company incurred a net loss of $2.4 million for the 2009 first quarter compared to net income of $1.1 million for the same quarter in 2008. This resulted in basic and diluted loss per share of $0.17 for the first quarter of 2009 compared to basic and diluted income per share from operations of $0.08 for the first quarter of 2008. The weighted average number of shares for the current quarter was 13.5 million compared to 13.5 million basic and 13.6 million diluted shares in the first quarter of 2008.
Within the syndicated credit facilities at March 31, 2009, interest-bearing debt was $97.2 million consisting of $46.0 million of term debt and $51.2 million drawn under the revolving credit facility. In addition, the Company had $1.6 million of additional term debt and $14.2 million of capital leases for a total of $113.0 million of interest-bearing debt outstanding at March 31, 2009. At March 31, 2008, interest-bearing debt was $126.6 million consisting of $56.7 million of term debt, capital leases of $20.6 million, $48.4 million drawn under the revolving credit facility and a note payable of $0.9 million.
During the first quarter of 2009, the Company repaid $2.3 million of term debt and $1.8 million of capital leases and borrowed $4.6 million on the revolving credit facility. At March 31, 2009, the Company had $23.2 million of unused credit facilities, net of outstanding letters of credit.
The Company generated $1.0 million in proceeds and gains on sale of $0.4 million on the divestiture of surplus equipment and a facility in Louisville, Kentucky. Capital expenditures amounted to $1.6 million for the 2009 first quarter and were primarily funded out of proceeds from sale and operating cash flows. The capital expenditures in 2009 first quarter were for land in Winnipeg, rolling stock and information technology expenditures. In the first quarter of 2008 the majority of capital expenditures were for the purchase of facilities in Kansas City, Kansas; Las Vegas, Nevada; and construction costs of the new LTL service center in Toronto, Ontario. The table below sets forth the Company s capital expenditures for the three-month periods ended March 31, 2009 and 2008.
Read the The complete ReportVTNC is in the portfolios of Charles Brandes of Brandes Investment, PRIMECAP Management.