MONTREAL, QUEBEC--(Marketwired - March 2, 2015) - TransForce Inc. (TSX:TFI)(OTCQX:TFIFF), a North American leader in the transportation and logistics industry, today announced its results for the fourth quarter and fiscal year ended December 31, 2014.

"TransForce completed several significant business acquisitions in 2014, including Contrans, our largest ever. These network additions in all business segments expanded our service offering, geographic reach and, above all, our pool of talent. Going forward, these strengths will be leveraged by further improving operating efficiency and asset utilization with the stated objectives to maximize cash flow generation and create lasting shareholder value, as we have always done with previous acquisitions and as we constantly do with existing operations," said Alain Bédard, Chairman, President and Chief Executive Officer of TransForce.

Financial highlights Quarters ended
Dec. 31,
Years ended
Dec. 31,
(in millions of dollars, except per share data) 2014 2013 2014 2013
Total revenue 1,074.0 792.6 3,714.7 3,109.7
Revenue excluding fuel surcharge 946.9 708.0 3,262.5 2,783.3
Income from operating activities (EBIT(1)(4)) 79.9 43.5 275.5 209.4
Free cash flow2 93.5 58.5 321.8 223.1
Adjusted net income(3)(4) 47.5 23.3 176.7 123.6
Per share - diluted ($) 0.45 0.25 1.74 1.29
Net income4 43.2 12.3 153.4 101.7
Per share - diluted ($) 0.41 0.13 1.51 1.08
Weighted average shares outstanding ('000s) 102,437 92,777 99,437 92,589
(1) Earnings before finance income and costs and income taxes.
(2) Net cash from operating activities, less additions to property and equipment, plus proceeds from sale of property and equipment and assets held for sale.
(3) Excluding the after-tax effect of changes in the fair value of derivatives, net foreign exchange gain or loss, and items not in the Company's normal business.
(4) Before $27.8 million goodwill impairment (after tax $25.5 million) in Q2 2014 and $63.1 million impairment of intangible assets (after tax $39.3 million) in Q4 2013.

"In the fourth quarter, acquisitions boosted total revenue above the one-billion mark for the first time ever and, accompanied by efficiency gains across most of our existing network, resulted in strong increases in EBIT and adjusted net income. Excluding fuel surcharge, the EBIT margin rose 230 basis points in the Package and Courier ("P&C") segment driven by improved returns from right-sizing U.S. same-day delivery activities and combining certain operations to enhance network efficiency. In the Less-Than-Truckload ("LTL") segment, existing operations accounted for the majority of the year-over-year EBIT growth as a result of asset rationalization and higher yields. The EBIT margin before fuel surcharge gained 50 basis points in the Truckload ("TL") segment, as a 220 basis point improvement from existing operations was largely offset by non-cash intangible amortization charges of acquired businesses. Finally, in the Waste Management segment, the Veolia assets are generating insufficient returns and our priority is to optimize these operations to unlock synergies," added Mr. Bédard.


Total revenue reached $1,074.0 million, up $281.4 million, or 36%. Net of fuel surcharge, revenue increased 34% to $946.9 million. This increase reflects acquisitions completed in the previous twelve months, including Contrans which was consolidated as of November 14, 2014. Excluding acquisitions, revenue remained relatively stable.

EBIT1 amounted to $79.9 million, or 8.4% of revenue before fuel surcharge, up 84% from $43.5 million, or 6.1% of revenue, a year earlier. This increase reflects a $15.4 million contribution from acquisitions as well as a significant $21.7 million improvement from existing operations mainly driven by efficiency gains. EBIT rose in every segment with the exception of Waste Management where EBIT remained relatively stable. During the quarter, the Company incurred $3.4 million of acquisition-related costs in connection with the offer to purchase all Contrans shares, of which $0.7 million impacted EBIT.

Adjusted net income, which excludes the after-tax effect of changes in the fair value of derivatives, net foreign exchange gain or loss, transaction costs on acquisitions and impairment charges, more than doubled to $47.5 million, or $0.45 per share, fully diluted, up from $23.3 million last year, or $0.25 per share, fully diluted. Net income for the fourth quarter of 2014 amounted to $43.2 million, or $0.41 per share, fully diluted, versus $12.3 million, or $0.13 per share, fully diluted, in the fourth quarter of 2013, excluding an after-tax impairment charge of $39.3 million.

Driven by a higher cash flow from operating activities, TransForce concluded the fourth quarter of 2014 with a strong free cash flow generation of $93.5 million, or $0.91 per share, up 60% from $58.5 million, or $0.63 per share a year ago. This free cash flow was used to partially finance the acquisition of Contrans and to repurchase common shares for a cash consideration of $22.9 million.


Total revenue reached $3.7 billion in 2014, up 19% from $3.1 billion in 2013, while revenue before fuel surcharge rose 17% to $3.3 billion. EBIT1,4 reached $275.5 million, or 8.4% of revenue before fuel surcharge, up from $209.4 million, or 7.5% of revenue, last year. Adjusted net income amounted to $176.7 million, or $1.74 per share, fully diluted, up 43% from $123.6 million, or $1.29 per share, fully diluted, a year ago, while net income excluding impairment charges was $153.4 million, or $1.51 per share, fully diluted, compared with $101.7 million, or $1.08 per share, fully diluted, last year. Finally, free cash flow stood at $321.8 million, equivalent to $3.24 per share, compared with $223.1 million, or $2.41 per share, in the prior year. Based on the December 31, 2014 closing share price of $29.59, the free cash flow generated by the Company in 2014 represented a free cash flow yield of 10.9%, up from 9.5% for 2013, which is significantly higher than the average yield for the transportation industry.


(in millions of dollars) Quarters ended December 31, Years ended December 31,
2014 2013 2014 2013
$ $ $ $
Revenue before fuel surcharge
Package and Courier 307.0 297.2 1,169.0 1,152.2
Less-Than-Truckload (LTL) 201.9 136.1 752.4 539.8
Truckload (TL) 321.3 158.9 911.1 599.9
Waste Management 56.0 41.5 195.8 156.8
Other segments 77.9 89.9 299.1 397.2
Eliminations (17.2 ) (15.7 ) (64.7 ) (62.6 )
Total 946.9 708.0 3,262.5 2,783.3
$ % of
$ % of
$ % of Rev.* $ % of Rev.*
Income from operating activities (EBIT)
Package and Courier 26.6 8.7 18.9 6.4 91.2 7.8 80.3 7.0
Less-Than-Truckload 14.7 7.3 2.2 1.6 61.1 8.1 40.8 7.6
Truckload 28.8 9.0 13.4 8.5 84.9 9.3 54.4 9.1
Waste Management 12.2 21.7 12.2 29.3 43.2 22.1 40.4 25.8
Other segments 5.3 6.8 (0.4 ) (0.4 ) 22.0 7.4 6.7 1.7
Corporate (7.7 ) (2.8 ) (26.9 ) (13.3 )
Total 79.9 8.4 43.5 6.1 275.4 8.4 209.4 7.5

Note: due to rounding, totals may differ slightly from the sum of individual segmented revenue or EBIT.

* Revenue before fuel surcharge

TransForce also announces the departure of Alain Raquepas as Chief Financial Officer. The Company wishes him all the best in his future endeavours. A selection process has been initiated to name a successor in the best time frame possible.


"TransForce enters 2015 stronger than ever. Last year's acquisitions have bolstered our strength, further added talent to our workforce and solidified our position in the markets we serve. We are confident in our ability to leverage these advantages for shareholders. We expect our U.S. operations to benefit from a robust economy there, as enhanced density in the P&C and TL segments should result in greater efficiency and asset utilization. Although the Canadian economy is lagging, a weaker currency should create momentum to the manufacturing sector in Central Canada to the benefit of LTL and TL operations, where we also stand to gain from last year's acquisitions. Given this business environment, we expect 2015 total revenue to approach $4.5 billion and basic EPS to be in the range of $1.85 - $2.00. Our priority is to use free cash flow to reimburse debt, while excess capital will be deployed in initiatives that generate a superior return on assets and in returning cash to shareholders, as per our stated policy," concluded Mr. Bédard.


TransForce will hold a conference call for analysts and portfolio managers on Tuesday, March 3, 2015 at 8:00 a.m. Eastern Time, to discuss these results. Business media are also invited to listen to the call. Interested parties can join the call by dialling 1-877-223-4471. A recording of the call will be available until midnight, March 10, 2015, by dialling 1-800-585-8367 or 416-621-4642 and entering passcode 68488812.


TransForce Inc. is a North American leader in the transportation and logistics industry operating across Canada and the United States through its subsidiaries. TransForce creates value for shareholders by identifying strategic acquisitions and managing a growing network of wholly-owned operating subsidiaries. Under the TransForce umbrella, companies benefit from corporate financial and operational resources to build their businesses and increase their efficiency. TransForce companies service the following segments:

  • Package and Courier;
  • Less-Than-Truckload;
  • Truckload;
  • Waste Management;
  • Logistics and Other Services.

TransForce Inc. is publicly traded on the Toronto Stock Exchange (TSX:TFI) and the OTCQX marketplace in the U.S. (OTCQX:TFIFF). For more information, visit


Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of TransForce. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for TransForce's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.


EBIT, adjusted net income, adjusted earnings per share and free cash flow are financial measures not prescribed by IFRS and are not likely to be comparable to similar measures presented by other issuers. Management considers these to be useful information to assist investors in evaluating the Company's profitability, liquidity and ability to generate funds to finance its operations. These measures do not have any standardize meaning under IFRS and could be calculated differently by other companies. These measures should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS.

Note to readers: Consolidated financial statements and Management's Discussion & Analysis are available on TransForce's website at

Contact Information:

Alain Bedard
Chairman, President and CEO
TransForce Inc.
(647) 729-4079

Rick Leckner
MaisonBrison Communications
(514) 731-0000