TransForce Inc. reported revenues of $812 million for the quarter ended June 30, 2012, up 25 per cent over the same quarter of 2011. These revenue increases were mainly the result of the acquisitions of Loomis Express, IE Miller and Quik X. Second-quarter net income rose to $34.1 million, up from $26.2 million during the same period last year. For the six months ended June 30, 2012, total revenues reached $1.6 billion, up 32 per cent from $1.2 billion for the same period a year earlier. Net income for the period amounted to $64.2 million, or $0.65 per share, fully diluted, versus $41.2 million, or $0.43 per share, fully diluted, for the first six months of 2011.
During the second quarter, revenues from Package and Courier operations were ahead of revenues during the same period of 2011 by some 30 per cent, which was largely the result of the acquisition of Loomis’ courier business, the company’s Chairman, President and CEO, Alain Bédard, said. The “Package and Courier” business represented 36.2 per cent of revenues, and produced 30.3 per cent of EBIT (earnings before interest and taxes). “In this segment, margins are maintaining their gradual sequential increase, as we continue to aggressively implement profit enhancement measures to return to profitability levels achieved prior to the Dynamex and Loomis Express acquisitions,” said Mr. Bédard. The “Specialized Services” segment produced 25.1 per cent of revenues, but 40.0 per cent of EBIT. “The acquisitions in the energy sector continue to drive our strong performance in both revenues and operating profitability,” said Mr. Bédard.
Outlook
Mr. Bédard commented that “The economic conditions are uncertain. However, as always, our priorities are to further improve operating efficiency and asset utilization, as well as generate strong cash flow. TransForce will remain disciplined with regards to capital utilization, while seeking to maximize return on asset. We will create further shareholder value by focussing on our fundamental objectives of optimizing the profitability of existing businesses and of recent acquisitions.” He also commented that the company intends to use part of its strong cash flow generation capability to repurchase up to seven million shares.
TransForce also announced it is harmonizing the branding of its various Energy Services sector companies. The companies formerly known as KOS Oilfield Transportation and Howard’s Transport Services in Canada, as well as Hemphill-Speedy Trucking and I.E. Miller in the US, will be known as TForce Energy Services. “Our Energy Services sector has evolved from a collection of individual companies with specific strengths to an integrated, multi-disciplined business unit offering extraordinary solutions to clients across North America. We have brought the best of the best together to form North America’s largest and most resourceful rig moving company and set the stage for further broadening our energy service offerings,” added Mr. Bédard.