MONTREAL, QUEBEC--(Marketwired - April 20, 2016) -

• Revenue before fuel surcharge from continuing operations up 1% to $866.7 million
• Adjusted net income from continuing operations* of $31.5 million, or $0.32 per diluted share*, versus $27.5 million last year, or $0.26 per diluted share
• 32 % increase in free cash flow from continuing operations* to $24.7 million, or $0.25 per share*
• Sale of Waste Management business for $800 million generating a pre-tax gain of $559.2 million
• Proceeds from the sale of Waste Management used to reimburse $705.4 million in debt and repurchase $63.6 million in common shares
  ^* This is a non-IFRS measure. For a reconciliation, please refer to the "Non-IFRS Measures" section below.

TransForce Inc. (TSX:TFI)(OTCQX:TFIFF), a North American leader in the transportation and logistics industry, today announced its results for the first quarter ended March 31, 2016. In 2015, TransForce ceased its U.S. rig moving operations and completed the sale of its Waste Management segment on February 1, 2016. Results for these activities are accordingly presented as discontinued operations in the Company's financial statements. Data for corresponding periods of the previous year have been restated.

"The first quarter of 2016 produced mixed results for TransForce. We recorded higher volume in the Package and Courier (P&C) segment driven by increased e-commerce activity in the United States, but a weak Canadian economy continues to restrain organic growth in other business segments. While lower volume negatively affected operating income, optimization initiatives to adapt supply to demand resulted in higher profitability in the P&C and Less-than-Truckload (LTL) segments. We sold our Waste Management operations for $800 million generating a pre-tax gain of $559.2 million. The proceeds were used to reimburse a significant amount of debt and to repurchase 2.9 million common shares during the quarter. TransForce now has greater financial flexibility and will use free cash flow to further reimburse debt, repurchase shares or proceed with selective acquisitions," said Alain Bédard, Chairman, President and Chief Executive Officer of TransForce.

FIRST-QUARTER RESULTS

Total revenue from continuing operations reached $934.2 million, down 3% over last year. Net of fuel surcharge, revenue from continuing operations rose 1% to $866.7 million. This increase reflects acquisitions completed in the previous twelve months and the effect of local currency appreciation on U.S.-dollar denominated revenue. Before fuel surcharge and acquisitions, revenue decreased due to lower LTL volume and reduced activity in specialized Truckload (TL) divisions servicing the oil and gas industry. 

Operating income from continuing operations totalled $40.3 million, compared with $44.0 million last year. As a percentage of revenue before fuel surcharge, operating income stood at 4.6% of revenue in the first quarter of 2016, versus 5.1% a year ago. The reduction in operating income reflects lower revenue and margins in the TL and Logistics segments, partially offset by improvement in the P&C and LTL segments resulting from optimization measures.

Net income from continuing operations reached $15.3 million, or $0.15 per diluted share, up from $13.0 million, or $0.12 per diluted share, a year ago. Adjusted net income from continuing operations, which excludes amortization of intangible assets related to business acquisitions, net changes in the fair value of derivatives, net foreign exchange gain or loss, and items not in the Company's normal business, net of tax, was $31.5 million, or $0.32 per diluted share, up from $27.5 million last year, or $0.26 per diluted share. Considering the gain, net of taxes, on the sale of Waste Management operations, net income amounted to $503.6 million, or $5.09 per diluted share, versus $14.0 million last year, or $0.13 per diluted share.

Reflecting disciplined capital investment, free cash flow from continuing operations amounted to $24.7 million, or $0.25 per share, in the first quarter of 2016, up from $18.7 million, or $0.18 per share, a year earlier.

SEGMENTED RESULTS FROM CONTINUING OPERATIONS

FINANCIAL POSITION

During the quarter, TransForce completed the sale of the Waste Management segment for $800 million. The Company used proceeds from this transaction to reimburse $705.4 million in long-term debt and to repurchase up to 2.9 million common shares for a consideration of $63.6 million, mostly as part of a substantial issuer bid program completed on March 28, 2016. As a result, TransForce's long-term debt to equity ratio as at March 31, 2016 stood at 0.61, compared with 1.57 as at December 31, 2015.

OUTLOOK

"Looking ahead, the U.S. economy remains healthy driven by resilient consumer spending, which bodes well for the P&C and TL segments. In Canada, the economy remains depressed by low oil prices, while the effects of a weak currency have yet to provide a significant boost to the manufacturing sector. In this context, TransForce's decentralized and diversified business model will allow the Company to rapidly benefit from market opportunities as they arise. In addition, our disciplined capital management ensures that we invest in initiatives that generate superior returns, meet our main objective of generating cash flow and create lasting value for shareholders," concluded Mr. Bédard. 

CONFERENCE CALL

TransForce will hold a conference call for analysts and portfolio managers on Wednesday, April 20, 2016 at 4:00 p.m. Eastern Time, to discuss these results. Business media are also invited to listen to the call. Interested parties can join the call by dialling 1-877-223-4471. A recording of the call will be available until midnight, May 4, 2016, by dialling 1-800-585-8367 or 416-621-4642 and entering passcode 78110912.

ABOUT TRANSFORCE

TransForce Inc. is a North American leader in the transportation and logistics industry operating across Canada and the United States through its subsidiaries. TransForce creates value for shareholders by identifying strategic acquisitions and managing a growing network of wholly-owned operating subsidiaries. Under the TransForce umbrella, companies benefit from financial and operational resources to build their businesses and increase their efficiency. TransForce companies service the following segments:

• Package and Courier; 
• Less-Than-Truckload; 
• Truckload;
• Logistics.

TransForce Inc. is publicly traded on the Toronto Stock Exchange (TSX:TFI) and the OTCQX marketplace in the U.S. (OTCQX:TFIFF). For more information, visit http://www.transforcecompany.com.

FORWARD-LOOKING STATEMENTS

Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of TransForce. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for TransForce's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.

NON-IFRS MEASURES

Adjusted net income from continuing operations, adjusted earnings from continuing operations per share, free cash flow from continuing operations and free cash flow from continuing operations per share are financial measures not prescribed by IFRS and are not likely to be comparable to similar measures presented by other issuers. Management considers these to be useful information to assist investors in evaluating the Company's profitability, liquidity and ability to generate funds to finance its operations. These measures do not have any standardize meaning under IFRS and could be calculated differently by other companies. These measures should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS.

Note to readers: Consolidated financial statements and Management's Discussion & Analysis are available on TransForce's website at www.transforcecompany.com.