Canada NewsWire
ST. CATHARINES, ON, May 5, 2017
(TSX : ALC)
ST. CATHARINES, ON, May 5, 2017 /CNW/ - Algoma Central Corporation ("Algoma") – www.algonet.com, a leading provider of marine transportation services, today announced its results for the quarter ended March 31, 2017.
First quarter highlights include (all amounts in C$000s, except for per share data and unless otherwise noted):
"Our fiscal 2017 first quarter results reflect a sustainable improvement in Domestic Dry-Bulk earnings partially offset by some weakness in Ocean Self-Unloaders," said Ken Bloch Soerensen, President and CEO of Algoma. "Corporate initiatives to expand in global short sea shipping are bearing fruit, with increased earnings from NovaAlgoma Cement Carriers and the creation of NovaAlgoma Short-Sea Carriers shortly after the end of the quarter," Mr. Soerensen continued.
The net loss from continuing operations for the quarter, which excludes income from our discontinued real estate business, was $20,147 compared to $7,959 for 2016. Earnings for 2016 include a gain of $16,196 from the settlement of certain refund guarantees. Excluding this item, the 2016 loss was $24,155.
Earnings from the discontinued real estate business were $1,042 compared to $1,264 last year. Five of the 14 properties slated for sale were disposed of over the course of fiscal 2016. Marketing of the balance of the properties is in process.
Results from operations for the first quarter were as follows:
Three Months | ||||||
Ended March 31 | ||||||
2017 |
2016 | |||||
Revenues |
||||||
Domestic Dry-Bulk |
$ |
18,401 |
$ |
11,659 | ||
Product Tankers |
11,681 |
8,515 | ||||
Ocean Self-Unloaders |
18,657 |
20,303 | ||||
$ |
48,739 |
$ |
40,477 | |||
Three Months | ||||||
Ended March 31 | ||||||
2017 |
2016 | |||||
Operating (loss) earnings net of income tax |
||||||
Domestic Dry-Bulk |
$ |
(15,008) |
$ |
(27,715) | ||
Unrealized loss of foreign currency exchange contracts |
(1,003) |
- | ||||
Gain on shipbuilding contracts |
- |
16,196 | ||||
(16,011) |
(11,519) | |||||
Product Tankers |
(2,431) |
(1,508) | ||||
Ocean Self-Unloaders |
1,723 |
7,268 | ||||
Global Short Sea Shipping |
666 |
490 | ||||
Corporate |
(2,660) |
(3,243) | ||||
Segment loss |
(18,713) |
(8,512) | ||||
Not specifically identifiable to segments: |
||||||
Net loss on foreign currency translation |
(1,293) |
(25) | ||||
Interest expense |
(1,167) |
(2,936) | ||||
Interest income |
277 |
487 | ||||
Income tax recovery |
749 |
3,027 | ||||
Net loss from continuing operations |
(20,147) |
(7,959) | ||||
Net earnings from discontinued operations |
1,042 |
1,264 | ||||
Net loss |
$ |
(19,105) |
$ |
(6,695) | ||
Basic and Diluted (Loss) Earnings per Share |
||||||
Continuing operations |
$ |
(0.52) |
$ |
(0.20) | ||
Discontinuing operations |
0.03 |
0.03 | ||||
$ |
(0.49) |
$ |
(0.17) |
Cash Dividends
The Board of Directors has declared a cash dividend of $0.08 per common share to be paid on June 1, 2017 to shareholders of record on May 18, 2017. This reflects a 14% increase in the dividend rate.
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.
SOURCE Algoma Central Corporation
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