TMX group TMXmoney

Trimac Transportation Ltd. (TMA)
Exchange: Toronto Stock Exchange
$5.830
May 22, 2013, 2:16 AM EDT
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Trimac Announces First Quarter Results

CALGARY, May 15 /CNW/ - Trimac Income Fund (TSX Symbol TMA.UN) (the "Fund") today released the financial results of the Fund and Trimac Transportation Services Limited Partnership ("Trimac" or the "Partnership") for the first quarter ended March 31, 2009.

                                                         Three months
Partnership                                             ended March 31
(millions of dollars)                                  2009         2008
                                                -------------------------

Revenues                                               64.1         76.8
EBITDA(1)                                               5.5          7.0
Net (loss) earnings                                    (0.7)         0.6

                                                         Three months
                                                        ended March 31
Fund                                                   2009         2008
                                                -------------------------

Distributable cash per unit(1)(2)                   $0.1106      $0.1127
Distributions per unit(1)                           $0.1200      $0.2313
Basic (loss) earnings per unit                     $(0.0050)     $0.0382
Fully diluted (loss) earnings per unit             $(0.0449)     $0.0200
Weighted average number of units outstanding
 used in computing basic (loss) earnings per
 unit                                            12,584,679   12,551,319

Number of units outstanding used in computing
 diluted (loss) earnings per unit                25,304,697   24,107,340

(1) EBITDA, distributable cash per unit and distributions per unit are
    not recognized measures under generally accepted accounting
    principles (GAAP) and do not have a standardized meaning prescribed
    by GAAP. Therefore, these amounts may not be comparable to similar
    measures presented by other issuers. Management considers EBITDA and
    distributable cash to be key measures that indicate the ability of
    the Fund to meet its capital and financing commitments.
(2) Distributable cash available will fluctuate on a monthly basis due to
    seasonal cash flows, sustaining capital incurred, income taxes, and
    interest paid. See "Distributable Cash" for additional commentary.

Trimac's revenue in the three-month period ended March 31, 2009 ("current period") decreased by $12.7 million or 16.5 percent from the three-month period ended March 31, 2008 ("prior period"). Contributing to this decrease was a $5.5 million reduction in revenue from fuel surcharges. As previously reported by Trimac, the impact of changes in fuel prices on profitability has generally been neutral. In addition, revenue was affected by competitive pressures and reduced levels of activity in the construction, drilling, mining, automotive, and forestry industries. EBITDA decreased by $1.5 million or 21.4 percent from the prior period. Expressed as a percent of revenue, EBITDA was 8.6 percent in the current period suffering only a moderate decline from the 9.1 percent recorded in the prior period as various cost reduction programs were implemented to mitigate lower volumes.

Divisional highlights in the first quarter were as follows:

-   Western division revenue declined by $7.7 million or 16.8 percent and
    EBITDA decreased by $1.3 million or 25.0 percent over the prior
    period.

-   Eastern division revenue decreased by $4.2 million or 15.5 percent
    and EBITDA declined by $0.3 million or 25.0 percent over the prior
    period.

-   Bulk Plus Logistics experienced improved profitability as EBITDA
    increased by $0.6 million on lower revenue than the prior period.
    This increase was primarily due to the non-recurrence of one time
    costs in the prior period.

In commenting on the results for the first quarter, Jeffrey J. McCaig, Chairman and CEO of Trimac, said:

"Despite the challenging operating environment in Canada, Trimac was able to maintain a relatively stable EBITDA margin when compared to the first quarter of 2008 as a result of proactive cost management. Trimac's management is continuing to implement cost controls and pursuing additional profitable business in an attempt to mitigate the impact of the current recession."

For comments regarding management's outlook for the remainder of 2009 please see Trimac's Management's Discussion and Analysis for the three-month period ended March 31, 2009.

Financial Highlights

                                                      Three months ended
                                                            March 31
                                                -------------------------
(millions of dollars)                                  2009         2008
-------------------------------------------------------------------------

Revenues                                               64.1         76.8

  Direct costs                                         48.0         58.3
  Selling and administrative                           10.6         11.5
                                                -------------------------

EBITDA(1)                                               5.5          7.0
  Depreciation net of gains on disposal of
   capital assets                                       5.0          5.1
                                                -------------------------

Operating earnings                                      0.5          1.9
  Interest expense (net)                                1.0          1.2
                                                -------------------------

(Loss) earnings before taxes                           (0.5)         0.7
  Income tax expense                                    0.2          0.1
                                                -------------------------

Net (loss) earnings                                    (0.7)         0.6
                                                -------------------------
                                                -------------------------

As a percentage of revenue(2)
------------------------------------------------
  Direct costs                                        74.9%        75.9%
  Selling and administrative                          16.5%        15.0%
  EBITDA(1)                                            8.6%         9.1%
  Depreciation                                         7.8%         6.6%
  Operating earnings                                   0.8%         2.5%



                                                      As at        As at
                                                   March 31, December 31,
(millions of dollars)                                  2009         2008
                                                -------------------------
Total assets                                          147.2        152.7
Total long-term liabilities                            48.7         47.2

(1) EBITDA (earnings before interest, taxes, depreciation and
    amortization) is not a recognized measure under GAAP, does not have a
    standardized meaning prescribed by GAAP and, therefore, may not be
    comparable to similar measures presented by other issuers. Management
    believes that EBITDA is a useful complementary measure of cash
    available for distribution before debt servicing expense, capital
    expenditures and income taxes.
(2) Direct costs, selling and administrative and depreciation, expressed
    as a percentage of revenue, were impacted by significant fluctuations
    in fuel surcharge revenue between the prior and current period. For
    additional commentary regarding these expenses please see page 7 and
    8 of Trimac's Management's Discussion and Analysis for the
    three-month period ended March 31, 2009.



                         Distributable Cash

The table below illustrates distributable cash to unitholders beginning
with net cash provided by the Partnership's operations.


                                                      Three months ended
                                                            March 31
(millions of dollars except unit amounts,       -------------------------
 certain percentages and number of units)              2009         2008
-------------------------------------------------------------------------

Net cash provided by operations                         5.0          8.5
Net change in non-cash working capital(1)              (0.7)        (2.9)
                                                -------------------------
Cash provided by operations                             4.3          5.6
Less adjustments for:
  Net sustaining capital expenditures (net of
   proceeds)(2)(3)                                     (1.2)        (2.5)
  Provision for long-term unfunded
   contractual operational
   obligations(4)                                       0.1            -
                                                -------------------------
Total estimated cash available for
 distribution (before public
 expenses)                                              3.2          3.1
Percentage of available cash distributable to
 unitholders(5)                                         50%          52%
                                                -------------------------

Cash available for distribution to
 unitholders (before public
 expenses)                                              1.6          1.6
Public expenses(6)                                     (0.2)        (0.2)
                                                -------------------------
Distributable cash from operations(2)(7)                1.4          1.4
Distributions declared and payable                      1.5          2.9

Distributable cash per unit(2)(7)                    0.1106       0.1127
Distributions declared per unit(9)                   0.1200       0.2313
Payout ratio(2)(7)                                   108.5%       205.2%

Weighted average number of units outstanding     12,584,679   12,551,319

Net capital expenditures
  Sustaining capital expenditures(2)                    2.1          3.4
  Proceeds on disposal of replaced assets              (0.9)        (0.9)
                                                -------------------------
  Net sustaining capital expenditures(2)(3)             1.2          2.5
  Growth capital expenditures(2)(8)                     0.7          2.5
                                                -------------------------
                                                        1.9          5.0
                                                -------------------------
                                                -------------------------

(1) Changes in non-cash operating assets and liabilities are not included
    in the calculation of distributable cash. Working capital investments
    are funded through a combination of cash flow not distributed and the
    use of credit facilities available to the Partnership.
(2) Distributable cash from operations, sustaining capital expenditures,
    net sustaining capital expenditures, payout ratio, and growth capital
    expenditures are not measures recognized by GAAP, do not have
    standardized definitions prescribed by GAAP and may not be comparable
    to similarly named measures presented by other issuers.
(3) Net sustaining capital expenditures refers to capital expenditures,
    net of proceeds on disposal of assets replaced, which are necessary
    to sustain current revenue levels. See "Capital Expenditures" on
    page 8 of this press release.
(4) Represents a provision for cash requirements relating to a long-term
    incentive plan and an executive pension liability. During the current
    period, a partial reversal of $0.1 million previously provided for
    was recorded.
(5) Percentage is equal to weighted average number of units outstanding
    of 12,584,679 divided by fully diluted units of 25,304,697.
(6) Represents expenses associated with the Fund's status as a reporting
    issuer.
(7) Distributable cash available will fluctuate on a monthly basis due to
    seasonal cash flows, sustaining capital expenditures incurred, income
    taxes paid and interest costs on outstanding debt.
(8) Cash used to fund growth capital expenditures does not affect
    distributable cash to unitholders where financing is available for
    these purposes. The Partnership funds growth capital from
    undistributed cash from operations, cash available from distributions
    on non-cash exchangeable shares and, to the extent available,
    existing lines of credit.
(9) Effective January 2009 the monthly distribution per unit was reduced
    from $0.0771 to $0.04.

During the current period the Partnership's cash provided by operations decreased by $1.3 million. This was offset by a reduction in net sustaining capital expenditures of $1.3 million and a decrease in the provision for unfunded long-term executive compensation plans of $0.1 million. The Fund's distributable cash was $1.4 million in the current period, a similar amount to that recorded in the prior period.

Distributions in the current period were paid using cash generated from operations including cash retained in the business relating to non-cash exchangeable shares. Due to the seasonal nature of the Partnership's business and the timing of sustaining capital purchases, the amount of distributable cash may vary from quarter to quarter. Trimac's Board of Directors approves the level of monthly distributions based upon estimated cash flow on an annual basis, less estimated cash required for debt service, cash taxes, other amounts (including sustaining capital expenditures, working capital and provisions) to stabilize the monthly amount of distributions to unitholders. Growth capital expenditures are funded from undistributed cash from operations, cash available from notional distributions on non-cash exchangeable shares, and, to the extent available, cash and existing lines of credit.

Distributable cash from operations is not a defined term under GAAP but is determined by the Partnership as net cash provided by operations for the period, adjusted to remove specific non-cash items, including changes in working capital, and reduced by sustaining capital expenditures, provisions for funding long- term liabilities, provisions for committed capital purchases in progress and public costs.

Management believes that distributable cash from operations is a useful supplemental measure of performance as it provides investors with an indication of the amount of cash available for distribution to unitholders. Investors are cautioned, however, that distributable cash from operations should not be construed as an alternative to using net income as a measure of profitability or as an alternative to the statement of cash flows. In addition, the Fund's method of calculating distributable cash from operations may not be comparable to calculations used by other issuers.

                          Operating Results

Revenue
-------------------------------------------------------------------------
                     Three months ended March 31
-------------------------------------------------------------------------
(millions of
 dollars)        2009              2008       Gross Revenue   Net Revenue
-------------------------------------------------------------------------
                      Tran-             Tran-
                      spor-             spor-
                 Fuel   ta-        Fuel   ta-
          Total  Sur-  tion Total  Sur-  tion
            Re- char-   Re-   Re- char-   Re-   Var-          Var-
          venue   ges venue venue   ges venue  iance      %  iance      %
-------------------------------------------------------------------------

Bulk
 trucking
----------

Western
 division  38.0   3.0  35.0  45.7   6.6  39.1  (7.7) -16.8%  (4.1) -10.5%
Eastern
 division  22.9   1.7  21.2  27.1   3.6  23.5  (4.2) -15.5%  (2.3)  -9.8%
-------------------------------------------------------------------------

Total bulk
 trucking  60.9   4.7  56.2  72.8  10.2  62.6 (11.9) -16.3%  (6.4) -10.2%
-------------------------------------------------------------------------

Bulk Plus
 Logistics  3.2     -   3.2   3.9     -   3.9  (0.7) -17.9%  (0.7) -17.9%
-------------------------------------------------------------------------

Other         -     -     -   0.1     -   0.1  (0.1)         (0.1)
-------------------------------------------------------------------------

Total
 revenue   64.1   4.7  59.4  76.8  10.2  66.6 (12.7) -16.5%  (7.2) -10.8%
-------------------------------------------------------------------------

For the current period, total revenue decreased by $12.7 million or 16.5 percent from the prior period. Fuel surcharges as a percentage of bulk trucking revenue totalled approximately 7.7 percent in comparison to 14 percent in the prior period, resulting in a decrease of $5.5 million. Trimac has fuel surcharge programs in place with substantially all of its customers and the impact of changes in fuel prices on profitability has generally been neutral. Revenue net of fuel surcharges decreased by $7.2 million or 10.8 percent from the prior period primarily as a result of business losses and lower volumes with existing customers.

The western division's revenue decreased by $7.7 million or 16.8 percent. Fuel surcharge revenue was $3.6 million lower than the prior period. Revenue net of fuel surcharges decreased by $4.1 million or 10.5 percent compared to the prior period. Incremental revenue of $1.4 million from the December 5, 2008 acquisition of Canamera Carriers Inc. (Canamera) and increased revenue in the edible product line was offset by net business losses and reduced volumes with existing customers. This reduction in volumes was primarily in response to a slowdown in the construction, oilfield drilling, mining, and forestry industries.

The eastern division's revenue decreased by $4.2 million or 15.5 percent. Fuel surcharge revenue was $1.9 million lower than the prior period. Revenue net of fuel surcharges decreased by $2.3 million or 9.8 percent compared to the prior period. Increased revenue from the industrial gas product line was offset by net business losses and decreased volumes with existing customers. These decreased volumes were primarily the result of continued economic weakness in central Canada, predominantly in the construction, chemical, and automotive industries.

For the current period, Bulk Plus Logistics's (BPL) revenue decreased by $0.7 million or 17.9 percent. This decrease was primarily due to the exiting of a transload management contract in May 2008 and decreased freight brokerage volumes in Canada and the U.S. These decreases were mitigated by a $0.2 million increase in third-party logistics management revenue.

EBITDA - Current period
-------------------------------------------------------------------------
                     Three months ended March 31
-------------------------------------------------------------------------
(millions of                                                      % Rev.
 dollars)             2009  % Rev.   2008  % Rev. Variance    %   change
-------------------------------------------------------------------------
Bulk trucking
-------------------
Western division       3.9   10.3%    5.2   11.4%    (1.3) -25.0%   -1.1%
Eastern division       0.9    3.9%    1.2    4.4%    (0.3) -25.0%   -0.5%
-------------------------------------------------------------------------
Total bulk trucking    4.8    7.9%    6.4    8.8%    (1.6) -25.0%   -0.9%
-------------------------------------------------------------------------
Bulk Plus Logistics    0.8   25.0%    0.2    5.1%     0.6  300.0%   19.9%
-------------------------------------------------------------------------
Other                 (0.1)           0.4            (0.5)
-------------------------------------------------------------------------
Total EBITDA           5.5    8.6%    7.0    9.1%    (1.5) -21.4%   -0.5%
-------------------------------------------------------------------------

EBITDA for the current period totaled $5.5 million, a $1.5 million or 21.4 percent decrease from the prior period. The western division experienced a $1.3 million or 25 percent decrease in the current period, while the eastern division experienced a $0.3 million or 25 percent decrease. These decreases were primarily the result of lower revenue and increased accident claims which were mitigated by lower direct costs, primarily due to various cost reduction programs implemented to reflect lower volumes. BPL's EBITDA was $0.6 million higher than in the prior period as lower revenue was offset by improved profitability. Improved profitability resulted from one time costs in the prior period and a shift in product mix from lower margin revenue to higher margin third-party logistics revenue.

Capital Expenditures

                                                      Three months ended
                                                            March 31
                                                -------------------------
(millions of dollars)                                  2009         2008
-------------------------------------------------------------------------
Gross sustaining capital expenditures                   2.1          3.4
Less: proceeds on disposal of capital assets           (0.9)        (0.9)
                                                -------------------------
Net sustaining capital expenditures                     1.2          2.5
Growth capital expenditures                             0.7          2.5
                                                -------------------------
Net capital expenditures                                1.9          5.0
                                                -------------------------
                                                -------------------------

The Partnership's net capital expenditures, including growth and sustaining capital, totalled $1.9 million in the current period compared to $5.0 million in the prior period. The decrease of $3.1 million over the prior period was due to decreased sustaining capital expenditures of $1.3 million and reduced growth expenditures of $1.8 million.

Gross sustaining capital purchases of $2.1 million were made up primarily of replacement tractors and trailers, accounting for approximately 89 percent of the total, with the balance applicable to other operating assets. Net sustaining capital expenditures were $1.3 million lower than in the prior period due to reduced trailer purchases. Proceeds on the disposal of capital assets were similar to that recorded in the prior period.

Reduced growth capital spending of $1.8 million was due to lower current period tractor and trailer purchases and the completion of a transload facility in the prior period. Growth capital expenditures of $0.7 million in the current period consisted of tractor and trailer purchases of approximately 80% with the majority of the remainder being used for a transload facility upgrade. Growth capital purchases are funded from undistributed cash from operations, cash available from notional distributions on non-cash exchangeable shares and, to the extent required, available cash and existing lines of credit.

Net annual capital expenditures relating to sustaining capital requirements will vary from year to year based on: the economic life of the capital assets; historical purchase dates; the mix of life cycles expiring in a given year; other factors affecting equipment cost; disposal proceeds of replaced assets; and, annual equipment utilization. Sustaining capital purchases are funded from the Partnership's net cash provided by operations in the year, cash available from notional distributions on non-cash exchangeable shares and, thereafter, to the extent required, available credit facilities.

You are invited to join management of the Partnership on a conference call at 2:30 p.m. Eastern Time on Friday, May 15, 2009. North American participants, please dial 1-888-300-0053; international participants, please dial ++1 647-427-3420, at least 10 minutes prior to the indicated time.

A playback of the call will be available from 5:30 p.m. Eastern Time on Friday, May 15, 2009 until midnight May 22, 2009. To hear the playback, please dial 1-888-562-2823 (international participants, please dial ++1 402-220-7738) and when prompted please enter the conference ID number 98435332.

Trimac Income Fund
Consolidated Balance Sheet
(unaudited)
-------------------------------------------------------------------------
(thousands of dollars)

                                                      As at        As at
                                                   March 31, December 31,
                                                       2009         2008
                                                          $            $
                                                -------------------------
Assets

Current assets
Cash                                                    125          970
Interest receivable                                     241          241
Distributions receivable                                337          719
Prepaid expenses                                         73          105
                                                -------------------------

                                                        776        2,035

Investment in Trimac Transportation Services
 Limited Partnership                                 65,841       67,412
Note receivable from Trimac Transportation
 Services Inc.                                       35,438       35,438
                                                -------------------------

                                                    102,055      104,885
                                                -------------------------
                                                -------------------------
Liabilities

Current liabilities
Accounts payable and accrued liabilities                 43           74
Due to associated companies and partnerships            178          967
Distributions payable                                   503          970
                                                -------------------------

                                                        724        2,011

Deferred compensation plan                               56           50
                                                -------------------------

                                                        780        2,061

Unitholders' equity                                 101,275      102,824
                                                -------------------------

                                                    102,055      104,885
                                                -------------------------
                                                -------------------------

The Fund commenced business operations on February 25, 2005 and earnings of the Fund's investment in Trimac have been accounted for using the equity method of accounting since commencement. Under this method, the Fund's share of earnings of Trimac, adjusted for the amortization of certain tangible and intangible assets arising from the use of purchase accounting is reflected in the statement of earnings of the Fund as "Share of earnings of Trimac Transportation Services Limited Partnership". The results of operations of the Fund are predominately dependent on the performance of the Partnership.

Trimac Income Fund
Consolidated Statement of Earnings, Comprehensive Income and Unitholders'
Equity
(unaudited)
-------------------------------------------------------------------------
(thousands of dollars, except for per unit amounts and number of units)

                                               Three months Three months
                                                      ended        ended
                                                   March 31,    March 31,
                                                       2009         2008
                                                          $            $
                                                -------------------------

Share of loss of Trimac Transportation
 Services Limited Partnership(1)                       (562)         (28)
  Interest income                                       682          710
  Administrative costs                                 (183)        (202)
                                                -------------------------

Net (loss) earnings                                     (63)         480

Other comprehensive income - share of
 Partnership other comprehensive income                  25           24
                                                -------------------------

Comprehensive (loss) income                             (38)         504

Opening unitholders' equity                         102,824      108,079
Issue of additional units                                 -          125
Distributions declared                               (1,511)      (2,902)
                                                -------------------------

Closing unitholders' equity                         101,275      105,806
                                                -------------------------
                                                -------------------------

Basic (loss) earnings per unit(2)                $  (0.0050)  $   0.0382

Fully diluted (loss) earnings per unit (2)       $  (0.0449)  $   0.0200

Weighted average number of units outstanding
 used in computing basic (loss) earnings per
 unit                                            12,584,679   12,551,319

Number of units outstanding used in computing
 diluted (loss) earnings per unit                25,304,697   24,107,340

(1) The net earnings of the Partnership are allocated between TTSI and
    the Fund based on the terms of the partnership agreement. The
    following is a reconciliation of net earnings recorded in the
    consolidated financial statements of the Partnership to the amount
    recorded by the Fund.



                                                      Three months ended
                                                            March 31,
                                                       2009         2008
                                                          $            $
                                                -------------------------

Net (loss) earnings of the partnership                 (683)         594

  Add: Interest expense on TTSI debt included in
   Partnership earnings                                 671        1,018
-------------------------------------------------------------------------

Adjusted Partnership (loss) earnings                    (12)       1,612

  Less: Purchase price allocation adjustments:

  Increase in amortization of capital assets and
   loss on disposal of capital assets                  (612)        (629)

  Amortization of intangible assets                  (1,010)      (1,011)
-------------------------------------------------------------------------

Partnership earnings after purchase price
 adjustments                                         (1,634)         (28)
-------------------------------------------------------------------------

Share of Partnership loss                              (562)         (28)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

(2) Pursuant to an investor liquidity agreement, holders of TTSI
    Exchangeable Shares have the right to effectively liquidate their
    10,060,405 shares of TTSI and receive units in the Fund. Following
    the full exercise of such liquidation rights, the Fund would own
    100 percent of the Partnership. The number of units used in the
    calculation of diluted earnings per unit assumes full liquidation at
    the beginning of the period.



Trimac Income Fund
Consolidated Statement of Cash Flows
(unaudited)
-------------------------------------------------------------------------
(thousands of dollars)

                                               Three months Three months
                                                      ended        ended
                                                   March 31,    March 31,
                                                       2009         2008
                                                          $            $
                                               --------------------------
Cash provided (used)

Operations
Net (loss) earnings                                     (63)         480
Add items not affecting cash:
  Share of loss from Trimac Transportation
   Services Limited Partnership                         562           28
  Deferred compensation costs                             6            -
                                               --------------------------

Cash provided by operations                             505          508
Net change in non-cash working capital                 (788)         169
                                               --------------------------

Net cash (used in) provided by operations              (283)         677
                                               --------------------------

Investments
Distributions from Trimac Transportation
 Services Limited Partnership                         1,416        2,468
                                               --------------------------

Cash provided by investing activities                 1,416        2,468
                                               --------------------------

Financing
Distributions paid                                   (1,978)      (2,902)
                                               --------------------------

Cash used in financing activities                    (1,978)      (2,902)
                                               --------------------------

(Decrease) increase in cash                            (845)         243
Cash, beginning of year                                 970          404
                                               --------------------------

Cash, end of year                                       125          647
                                               --------------------------
                                               --------------------------

Supplemental information
  Cash received from interest (net)                     682          703


The financial statements included in this news release do not contain the
notes to the statements. Financial statements with note disclosure are filed
with securities regulators.



Trimac Transportation Services Limited Partnership
Consolidated Balance Sheet
(unaudited)
-------------------------------------------------------------------------
(thousands of dollars)

                                                      As at        As at
                                                   March 31, December 31,
                                                       2009         2008
                                                          $            $
                                               --------------------------

Assets

Current assets
Cash                                                  3,217        2,350
Accounts receivable                                  27,674       31,350
Materials and supplies                                1,538        1,626
Due from related parties                              2,587        3,088
Prepaid expenses                                     11,384       10,315
                                               --------------------------

                                                     46,400       48,729

Capital assets                                       89,791       92,708
Intangible assets                                     3,252        3,495
Goodwill                                              6,182        6,182
Other                                                 1,624        1,622
                                               --------------------------

                                                    147,249      152,736
                                               --------------------------
                                               --------------------------

Liabilities

Current liabilities
Bank indebtedness                                         -        1,969
Accounts payable and accrued liabilities             29,837       29,282
Distributions payable                                 3,010        3,080
Income taxes payable                                     66          570
Due to related parties                                    1        1,223
Current maturities of long-term debt                 18,666       18,666
                                               --------------------------

                                                     51,580       54,790

Long-term debt                                       46,280       44,723
Future income taxes                                   1,214        1,207
Other long-term liabilities                           1,227        1,253
                                               --------------------------

                                                    100,301      101,973

Partnership equity                                   46,948       50,763
                                               --------------------------

                                                    147,249      152,736
                                               --------------------------
                                               --------------------------

The Partnership provides bulk trucking services throughout Canada and complementary logistics services in Canada and the United States. Effective January 1, 2005, the Partnership purchased substantially all of the assets of Trimac Transportation Services Inc. ("TTSI") relating to its Canadian bulk trucking business and its North American logistics business. TTSI and certain of its subsidiaries conducted the business operations of the Partnership prior to January 1, 2005.

Trimac Transportation Services Limited Partnership
Consolidated Statement of Earnings, Comprehensive Income and Partnership
Equity
(unaudited)
-------------------------------------------------------------------------
(thousands of dollars)

                                               Three months Three months
                                                      ended        ended
                                                   March 31,    March 31,
                                                       2009         2008
                                                          $            $
                                               --------------------------

Revenue
Transportation revenue                               59,449       66,587
Fuel surcharges                                       4,683       10,164
                                               --------------------------
                                                     64,132       76,751
                                               --------------------------

Operating costs and expenses
Direct                                               47,990       58,343
Selling and administrative                           10,621       11,483
Depreciation and amortization                         5,218        5,416
Gain on sale of assets (net)                           (190)        (377)
                                               --------------------------

Operating expense                                    63,639       74,865
                                               --------------------------

Operating earnings                                      493        1,886

Interest on long-term debt                              984        1,161
Other interest expense                                   23           11
                                               --------------------------
                                                      1,007        1,172
                                               --------------------------

(Loss) earnings before income taxes                    (514)         714

Income tax expense (recovery)
Current                                                 161          126
Future                                                    8           (6)
                                               --------------------------
                                                        169          120
                                               --------------------------

Net (loss) earnings                                    (683)         594

Other comprehensive income - net change in
 cumulative translation adjustments                     100           70
                                               --------------------------

Comprehensive (loss) income                            (583)         664

Opening partnership equity                           50,763       55,186
Distributions declared                               (3,232)      (4,777)
                                               --------------------------

Closing partnership equity                           46,948       51,073
                                               --------------------------
                                               --------------------------

Accumulated other comprehensive (losses)
 income (included in partnership equity)
----------------------------------------------

Opening balance                                         264         (269)
Other comprehensive income                              100           70
                                               --------------------------

Closing balance                                         364         (199)
                                               --------------------------
                                               --------------------------



Trimac Transportation Services Limited Partnership
Consolidated Statement of Cash Flows
(unaudited)
-------------------------------------------------------------------------
(thousands of dollars)

                                               Three months Three months
                                                      ended        ended
                                                   March 31,    March 31,
                                                       2009         2008
                                                          $            $
                                               --------------------------
Cash provided (used)

Operations
Net (loss) earnings                                    (683)         594
Add back (deduct) items not affecting cash:
  Depreciation and amortization                       5,218        5,416
  Gain on sale of assets (net)                         (190)        (377)
  Future income tax expense (recovery)                    8           (6)
  Other non-cash items                                   14           (4)
                                               --------------------------

Cash provided by operations                           4,367        5,623

Net change in non-cash working capital                  671        2,864
                                               --------------------------

Net cash provided by operations                       5,038        8,487
                                               --------------------------

Investments
Purchases of capital assets                          (2,830)      (5,932)
Proceeds on sale of capital assets                      960          943
Increase (decrease) in accounts payable and
 accrued liabilities relating to investing
 activities                                           1,345          (67)
Decrease (increase) in accounts receivable
 relating to investing activities                      5          (37)
Other                                                    65           39
                                               --------------------------

Cash used in investing activities                      (455)      (5,054)
                                               --------------------------

Financing
Increase in long-term debt                            1,557        2,619
Distributions paid                                   (3,304)      (5,557)
                                               --------------------------

Cash used in financing activities                    (1,747)      (2,938)
                                               --------------------------

Increase in cash                                      2,836          495
Cash (bank indebtedness), beginning of year             381         (238)
                                               --------------------------

Cash, end of period                                   3,217          257
                                               --------------------------
                                               --------------------------

Supplemental information
Income taxes paid                                       665           21
Interest paid                                         1,741        2,184

The financial statements included in this news release do not contain the notes to the statements. Financial statements with note disclosure are filed with securities regulators.

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