Algoma Central Corporation (“Algoma” or “the Company”) (TSX: ALC), a leading provider of marine transportation services, today announced its results for the year ended December 31, 2017.
All amounts reported below are in thousands of Canadian dollars, except for per share data and unless otherwise noted. Fiscal 2017 highlights include:
“Fiscal 2017 was a year of growth, and this was made possible by our dedicated employees and our loyal customers,” said Ken Bloch Soerensen, President and CEO of Algoma. “We achieved profitable growth under changing market conditions and advanced further into global short sea shipping,” Mr. Soerensen added.
Net earnings from continuing operations, which excludes income from discontinued real estate operations, was $32,367 in 2017 compared to $10,596 for 2016. Earnings for both years are affected by certain specific transactions and events, as follows:
Net earnings from continuing operations excluding the specific transactions mentioned above for 2017 was $31,774 compared to $29,867 for 2016.
Results from continuing operations for the fourth quarter and for fiscal 2017 were as follows:
Three Months | Twelve Months | |||||||||||
Ended December 31 | Ended December 31 | |||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||
Revenues | ||||||||||||
Domestic Dry-Bulk | $ | 89,346 | $ | 86,550 | $ | 278,265 | $ | 244,221 | ||||
Product Tankers | 26,697 | 19,609 | 86,274 | 63,004 | ||||||||
Ocean Self-Unloaders | 19,838 | 21,233 | 74,912 | 72,179 | ||||||||
135,881 | 127,392 | 439,451 | 379,404 | |||||||||
Investment Properties | 2,868 | 3,186 | 11,599 | 12,002 | ||||||||
$ | 138,749 | $ | 130,578 | $ | 451,050 | $ | 391,406 | |||||
Three Months | Twelve Months | |||||||||||
Ended December 31 | Ended December 31 | |||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||
Net Earnings from Continuing Operations | ||||||||||||
Operating earnings net of income tax
Domestic Dry-Bulk |
$ | 15,312 | $ | 16,465 | $ | 29,057 | $ | 9,407 | ||||
Impairment Expense | - | (27,519) | - | (27,519) | ||||||||
Unrealized (loss) gain on foreign currency contracts | (510) | (5,539) | 593 | (5,539) | ||||||||
Gain on cancellation of shipbuilding contracts | - | - | - | 22,322 | ||||||||
14,802 | (16,593) | 29,650 | (1,329) | |||||||||
Product Tankers | 643 | 3,076 | 3,475 | 8,207 | ||||||||
Impairment Expense | - | (3,837) | - | (3,837) | ||||||||
643 | (761) | 3,475 | 4,370 | |||||||||
Ocean Self-Unloaders |
4,342 | 5,692 | 12,442 | 18,971 | ||||||||
Global Short Sea Shipping | 945 | 416 | 3,474 | 2,542 | ||||||||
Segment earnings (loss) | 20,732 | (11,246) | 49,041 | 24,554 | ||||||||
Corporate |
(3,028) | (3,782) | (11,156) | (11,508) | ||||||||
Not specifically identifiable to segments: |
||||||||||||
Investment properties | 512 | 1,266 | (167) | 3,958 | ||||||||
Net gain (loss) on foreign currency translation | 323 | (19) | 2,260 | 3,505 | ||||||||
Interest expense | (737) | (2,607) | (4,843) | (9,824) | ||||||||
Interest income | 306 | 1,142 | 1,205 | 1,142 | ||||||||
Income tax expense | (4,210) | (3,974) | (3,973) | (1,231) | ||||||||
Net earnings (loss) from continuing operations | 13,898 | (19,220) | 32,367 | 10,596 | ||||||||
Net earnings from discontinued operations | (530) | 7,467 | 23,828 | 22,719 | ||||||||
Net earnings (loss) | $ | 13,368 | $ | (11,753) | $ | 56,195 | $ | 33,315 | ||||
Basic Earnings (Loss) per Share | ||||||||||||
Continuing operations | $ | 0.36 | $ | (0.50) | $ | 0.83 | $ | 0.27 | ||||
Discontinued operations | (0.02) | 0.19 | 0.61 | 0.58 | ||||||||
$ | 0.34 | $ | (0.31) | $ | 1.44 | $ | 0.85 | |||||
Cash Dividends
The board of directors declared a dividend of $0.09 per common share to shareholders. The cash dividend was paid on March 1, 2018 to shareholders of record on February 15, 2018.
Normal Course Issuer Bid
On January 24th, the Company announced the launch of a normal course issuer bid. Further details of this bid are contained in the 2018 Information Circular.
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
President
and CEO
+1 905-687-7885
or
Peter D. Winkley, CPA, CA
Chief
Financial Officer
+1 905-687-7897