TransForce Inc., a North American leader in the transportation and logistics industry, announced its results for the fourth quarter and fiscal year ended December 31, 2013. For the year, TransForce produced net income of $101.7 million on revenues of $3.1 billion, compared with net income of $154.2 million on revenues of $3.1 billion during the previous year. For the quarter ended December 31, net income of $12.3 million was reported on revenues of $792.6 million, versus net income of $36.1 million on revenues of $778.4 during the year-ago period.

“Although the fourth quarter produced lower year-over-year results, factors affecting profitability were mostly related to harsh weather. In addition, initiatives to reduce our costs and our asset base in several divisions resulted in additional expenses of about $7.0 million. According to our plan, we proceeded with further facility rationalization and headcount reduction in the Package and Courier (“P&C”) and Less-Than-Truckload (“LTL”) segments. In the Truckload (“TL”) segment, fundamentals remained weak and we continued to proactively adjust supply to demand.

In the Energy sector, Canadian oil sands related activity and EL Farmer’s pipe hauling business in the U.S. produced satisfactory results, but rig moving activity remained anaemic and we took aggressive measures to reduce our asset base in this business. Finally, waste management operations had a very profitable quarter driven by composting activities at the Lafleche environmental complex,” said Alain Bédard, Chairman, President and Chief Executive Officer.

“At the end of 2013, we shut down our Canadian rig moving operations, given low prospects for generating a satisfactory return on assets in the foreseeable future, and we further scaled down corresponding U.S. activities due to much lower revenue. This situation resulted in a non-cash $63.1 million intangible asset impairment charge. We are orderly disposing of assets and proceeds will be used to invest in projects that generate a superior return and a solid cash flow,” added Mr. Bédard.


“Looking ahead, TransForce will benefit from greater density following the acquisitions of Clarke Transport and Clarke Road Transport, as well as from the pending acquisition of Vitran. However, we expect market conditions to remain mostly unchanged in 2014. As this challenging environment limits organic growth, TransForce will pursue its ongoing initiatives to streamline its asset base and cost structure. More efficient networks in the P&C and LTL segments should also produce a higher return on assets and a strong free cash flow generation that will be applied to debt reduction and to carry out our disciplined acquisition strategy. Through a firm commitment to its operating principles and precise execution of its proven strategy, TransForce will remain a lasting source of value creation for its shareholders,” concluded Mr. Bédard.