Algoma Central Corporation (“Algoma” or “the Company”) (TSX: ALC), a leading provider of marine transportation services, today announced its results for the three months ended March 31, 2018.
All amounts reported below are in thousands of Canadian dollars, except for per share data and unless otherwise noted. First quarter 2018 highlights include:
“We are very pleased with the 2018 first quarter results. We saw strong revenues, a significant reduction in our net loss compared to last year and a continuation of tight cost management,” said Ken Bloch Soerensen, President and CEO of Algoma. “We are optimistic about 2018 as we see strong demand in Product Tankers and recent contract renewals in Domestic Dry-Bulk, with improved rates and longer terms,” Mr. Soerensen added.
Net loss and basic loss per share from continuing operations for the 2018 first quarter was $7,453 and $0.19, respectively, compared to a loss of $19,431 and $0.50, respectively for the same period last year.
Results from continuing operations for three months ended March 31, 2018 and 2017 are as follows:
Three Months | ||||||||||||||
Ended March 31 | ||||||||||||||
2018 | 2017 | |||||||||||||
Revenues | ||||||||||||||
Domestic Dry-Bulk | $ | 18,201 | $ | 18,401 | ||||||||||
Product Tankers | 19,335 | 11,681 | ||||||||||||
Ocean Self-Unloaders | 18,904 | 18,657 | ||||||||||||
56,440 | 48,739 | |||||||||||||
Investment Properties | 3,303 | 3,088 | ||||||||||||
Corporate | 745 | 265 | ||||||||||||
$ | 60,488 | $ | 52,092 | |||||||||||
Three Months | ||||||||||||||
Ended March 31 | ||||||||||||||
2018 | 2017 | |||||||||||||
Operating (loss) earnings net of income tax | ||||||||||||||
Domestic Dry-Bulk | $ | (15,200 | ) | $ | (15,008 | ) | ||||||||
Unrealized loss of foreign currency exchange contracts | 4,800 | (1,003 | ) | |||||||||||
(10,400 | ) | (16,011 | ) | |||||||||||
Product Tankers | 681 | (2,431 | ) | |||||||||||
Ocean Self-Unloaders | 1,466 | 1,723 | ||||||||||||
Global Short Sea Shipping | 1,881 | 666 | ||||||||||||
(6,372 | ) | (16,053 | ) | |||||||||||
Investment Properties | 401 | 696 | ||||||||||||
Corporate | (1,852 | ) | (2,388 | ) | ||||||||||
Segment loss | (7,823 | ) | (17,745 | ) | ||||||||||
Not specifically identifiable to segments: | ||||||||||||||
Foreign currency gain (loss) | 2,725 | (950 | ) | |||||||||||
Interest expense | (1,236 | ) | (858 | ) | ||||||||||
Interest income | 207 | 204 | ||||||||||||
Income tax expense | (1,326 | ) | (82 | ) | ||||||||||
Net loss from continuing operations | (7,453 | ) | (19,431 | ) | ||||||||||
Net earnings from discontinued operations | - | 326 | ||||||||||||
Net loss | $ | (7,453 | ) | $ | (19,105 | ) | ||||||||
Basic and Diluted (Loss) Earnings per Share | ||||||||||||||
Continuing operations | $ | (0.19 | ) | $ | (0.50 | ) | ||||||||
Discontinuing operations | - | 0.01 | ||||||||||||
$ | (0.19 | ) | $ | (0.49 | ) | |||||||||
Cash Dividends
The board of directors declared a dividend of $0.10 per common share to shareholders. The cash dividend will paid on June 1, 2018 to shareholders of record on May 18, 2018.
Normal Course Issuer Bid
In the first quarter of 2018, the Company announced the launch of a Normal Course Issuer Bid. Between January 24, 2018 and May 3, 2018 Algoma acquired 28,400 shares at an average price of 14.75.
About Algoma Central
Algoma Central Corporation is a publicly traded company which operates the largest 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 dry-bulk vessels operating in international markets. Algoma has expanded into international short sea markets through it 50% interests in NovaAlgoma Cement Carriers and NovaAlgoma Short Sea Carriers. Algoma Central trades on the Toronto Stock Exchange under the symbol “ALC”. For more information, please visit www.algonet.com.
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Algoma Central Corporation
Ken Bloch Soerensen, +1 905-687-7885
President
and CEO
or
Peter D. Winkley, CPA, CA, +1 905-687-7897
Chief
Financial Officer