Algoma Central Corporation (TSX: ALC) (“Algoma” – www.algonet.com), a leading provider of marine transportation services, today announced its results for the quarter ended September 30, 2017.
“We are very pleased with the results for our third quarter and particularly the sustained strength in our Domestic Dry-Bulk business,” said Ken Bloch Soerensen, Algoma CEO. “We have taken steps to position ourselves to take advantage of improving markets in our core business and to seize opportunities in short-sea shipping globally. We are now seeing these efforts pay off,” Mr. Soerensen continued.
Third quarter highlights include (all amounts in C$000s, except for per share data and unless otherwise noted):
Results for the third quarter were as follows:
Three Months | Nine Months | |||||||||||
Ended September 30 | Ended September 30 | |||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||
Revenues | ||||||||||||
Domestic Dry-Bulk | $ | 89,539 | $ | 81,900 | $ | 188,919 | $ | 157,671 | ||||
Product Tankers | 25,247 | 18,839 | 59,577 | 43,395 | ||||||||
Ocean Self-Unloaders | 18,902 | 14,594 | 55,074 | 50,946 | ||||||||
Investment Properties | 2,868 | 2,895 | 8,731 | 8,816 | ||||||||
$ | 136,556 | $ | 118,228 | $ | 312,301 | $ | 260,828 | |||||
Three Months | Nine Months | |||||||||||
Ended September 30 | Ended September 30 | |||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||
Operating earnings (loss) net of income tax | ||||||||||||
Domestic Dry-Bulk | $ | 15,992 | $ | 12,673 | $ | 13,745 | $ | (7,058) | ||||
Unrealized (loss) gain on foreign currency contracts | (1,291) | - | 1,103 | - | ||||||||
Gain on cancellation of shipbuilding contracts | - | 6,126 | - | 22,322 | ||||||||
14,701 | 18,799 | 14,848 | 15,264 | |||||||||
Product Tankers | 4,596 | 5,003 | 2,832 | 5,131 | ||||||||
Ocean Self-Unloaders | 4,553 | 2,249 | 8,100 | 13,279 | ||||||||
Global Short Sea Shipping | 1,472 | 734 | 2,529 | 2,126 | ||||||||
Corporate | (2,310) | (2,429) | (8,128) | (7,726) | ||||||||
Segment earnings | 23,012 | 24,356 | 20,181 | 28,074 | ||||||||
Not specifically identifiable to segments: | ||||||||||||
Investment properties | 810 | 1,047 | (679) | 2,692 | ||||||||
Gain on foreign exchange | 693 | 1,081 | 1,937 | 3,524 | ||||||||
Interest expense | (1,930) | (2,127) | (4,106) | (8,086) | ||||||||
Interest income | 348 | (52) | 899 | 869 | ||||||||
Income tax (expense) recovery | (416) | 120 | 237 | 2,743 | ||||||||
Net earnings from continuing operations | 22,517 | 24,425 | 18,469 | 29,816 | ||||||||
Net earnings from discontinued operations | 10,251 | 14,077 | 24,358 | 15,252 | ||||||||
Net earnings | $ | 32,768 | $ | 38,502 | $ | 42,827 | $ | 45,068 | ||||
Basic Earnings per Share | ||||||||||||
Continuing operations | $ | 0.58 | $ | 0.63 | $ | 0.47 | $ | 0.77 | ||||
Discontinued operations | 0.26 | 0.36 | 0.63 | 0.39 | ||||||||
$ | 0.84 | $ | 0.99 | $ | 1.10 | $ | 1.16 |
Cash Dividends
The Company also announces a 12.5% increase in its cash dividend to $0.09 per common share. The dividend will be paid on December 1, 2017 to shareholders of record on November 17, 2017.
About Algoma Central
Algoma Central Corporation operates the largest Canadian flag fleet of dry and liquid bulk carriers on the Great Lakes - St. Lawrence Waterway, including self-unloading dry-bulk carriers, gearless dry bulk carriers and product tankers. Algoma also owns ocean self-unloading vessels operating in international markets. Algoma provides ship management services for other ship owners. The Company is expanding into global dry-bulk markets with investments in businesses specializing in pneumatic cement carrying vessels and in short-sea dry-bulk shipping.
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Algoma Central Corporation
Ken Bloch Soerensen
President
and CEO
+1 905-687-7885
or
Peter D. Winkley, CPA, CA
Chief
Financial Officer
+1 905-687-7897