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TransForce Q3 revenue up 49%, fuelled by acquisitions

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TransForce (TSE:TFI) said Tuesday that its third-quarter revenues spiked 49 percent driven by acquisitions.

The Canadian provider of trucking, fleet management and warehousing services said for the three months ended September 30, revenues rose 49 percent to $743 million versus $499.5 million, seen last year. That beats analyst estimates of $694 million.

The company, which purchased Loomis Express, Dynamex and Speedy Heavy Hauling earlier this year, said its acquisitions added roughly $205 million to revenue.

Net income stood at $19.3 million, or 20 cents per fully diluted share, compared to a year earlier profit of $24.7 million, or 26 cents per fully diluted share. Excluding one-time items, the company reported adjusted earnings of 35 cents per fully diluted share.

Analysts, on average, had expected earnings of 27 cents a share, according to Bloomberg.

In a statement, TransForce chief executive Alain Bédard said: "TransForce generated solid third quarter results despite persistent uncertainty about the North American economy.

"While revenue growth was driven by strategic acquisitions, TransForce delivered a strong 34% increase in the key EBIT metric due to greater operating efficiencies and improved asset utilization, a performance that speaks highly about the quality of our people."

For the quarter, TransForce’s package and courier segment more than tripled to $295.6 million, while less-than-truckload division grew four percent to $137.7 million. The specialized services unit, which includes waste management and energy sector services, grew 21 percent to $153.4 million, up from $127.1 million.

"Finally, specialized services yielded another very solid profit increase as demand was particularly robust in the energy sector," Bedard said.

Transforce, headquartered in Montreal, saw its stock slide 30 cents, or 2.49 percent, to $11.73 on the Toronto Stock Exchange.

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TSX:TFI
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