Trimac Announces its Second Quarter Results

Highlights for the second quarter:

• Revenue for the quarter before fuel surcharges increased 6.4% to $90.4 million from $85.0 million
• Awarded a $11.8 million five year contract with Thompson Creek Mine to begin in late third quarter
• Trimac's corporate office relocated May 13^th, 2013
• Trimac increased its revolving credit facility from $110.0 million to $125.0 million

CALGARY, July 30, 2013 /PRNewswire/ - Trimac Transportation Ltd. (TSX symbol TMA) ("Trimac" or the "Company"), Canada's leader in bulk trucking, announces the release of its financial results for the three months ended June 30, 2013 ("current quarter").

Total revenue for the current quarter increased $4.4 million (or 4.5%) to $101.4 million from the $97.0 million reported for the three months ended June 30, 2012 ("prior quarter").  Revenue before fuel surcharges improved by 6.4% to $90.4 million in the current quarter.  Increases were experienced in all segments.  In the bulk trucking segment revenue before fuel surcharges increased by $3.9 million, which included $1.9 million of incremental revenue from Liquid Cargo Lines Limited which was acquired July 30, 2012.  The Bulk Plus Logistics segment also experienced increased revenue in its transload and freight management operations of $0.5 million while the National Tank Services segment increased third party revenue by $1.0 million.

For the six months ended June 30, 2013 ("current year") revenue before fuel surcharges grew $26.3 million which included $19.1 million of revenue before fuel surcharges from 2012 acquisitions.

For the current quarter, net direct costs (direct costs less fuel surcharge revenue) as a percentage of revenue before fuel surcharges increased to 72.3 percent in the current quarter compared to 71.5 percent in the prior quarter.  The increase was primarily in the bulk trucking segment due to productivity inefficiencies attributable to temporary plant shutdowns, weather related construction delays, and higher maintenance costs attributable to new equipment purchases.  Net direct costs in absolute dollars of $65.4 million increased $4.6 million or 7.6 percent.  Included in the increase were $1.5 million of direct costs relating to Liquid Cargo Lines.

For the current year, net direct costs as a percentage of revenue before fuel surcharges increased slightly to 72.7 percent compared to 72.0 percent in the prior year.  Net direct costs in absolute dollars of $133.4 million increased $20.1 million or 17.7 percent.  The increase included $14.4 million of direct costs relating to the 2012 acquisitions of Liquid Cargo Lines, Fortress Trucking and Northern Resource Trucking.

Selling and administrative costs increased $1.7 million to $14.8 million in the current quarter.  For the current year selling and administrative costs increased $4.3 million.  The increases were mainly attributable to increases in salaries due to annual inflation adjustments, rent and moving costs associated with the corporate office move from downtown Calgary, insurance and legal costs, and administrative costs associated with the previously mentioned 2012 acquisitions.  These costs were partially offset by a decrease in advertising, communications and training costs.  Included in the quarter were approximately $0.9 million of one-time selling and administrative costs.

Net income for the current quarter decreased 41.2 percent to $2.0 million from $3.4 million reported in the prior quarter.  This decrease was attributable to the increases in net direct costs and selling and administrative costs previously noted and an increase in depreciation expense of $0.7 million partially offset by a $0.2 million decrease in income tax expense.  For the current year net income decreased by 8.9 percent to $5.1 million.

Earnings per share were 7 cents in the current quarter compared to 12 cents per share in the prior quarter.

Financial Highlights

Outlook

Management anticipates that revenue will be similar to the prior year for the remainder of 2013 subject to any dramatic change in economic performance in the United States and Asia.  We are pleased with the latest business award from Thompson Creek Mines and look forward to growing the business with them in 2014.  We will continue to focus on cost management during these volatile times to ensure we remain competitive.

Declaration of Quarterly Dividend

The Board of Directors today declared a dividend of $0.07 per share on the Class A shares, payable on October 15, 2013 to shareholders of record at the close of business on September 30, 2013.

Forward-Looking Statements

Certain information included in this news release constitutes "forward-looking statements".  Trimac cautions that, by their nature, these forward-looking statements are based on suppositions, risks, and uncertainties as well as on management's best possible evaluation of future events. Trimac cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Such forward-looking statements are not guarantees of future performance and the actual results or performance of Trimac or the transportation industry may be materially different from the outlook or any future results or performance implied by such statements.  Please see "Forward-Looking Statements" in Trimac's MD&A for the three and six months ended June 30, 2013 for a discussion of the material factors that could cause actual results to differ from the forward-looking information contained herein and the material factors and assumptions that were applied in preparing such forward-looking information.

Profile

Trimac is Canada's largest provider of bulk trucking services with operations from coast to coast.  In addition, through its National Tank Services division, Trimac performs repairs, maintenance and tank-trailer cleaning services for both the Trimac fleet and for third party commercial customers. Trimac also provides third party transportation logistics services in Canada and the United States through its wholly owned subsidiary Bulk Plus Logistics.  Shares of Trimac Transportation Ltd. are traded on the Toronto Stock Exchange under the symbol TMA.

For more detailed information, please visit our website at www.trimac.ca or SEDAR at www.sedar.com and review our MD&A and the condensed consolidated interim financial statements for the Company.

You are invited to join us on a conference call (conference ID number 5383179) at 9:00 a.m. Eastern Time on Wednesday, July 31, 2013.  For North American participants, please dial 1-800-820-0231 or for international participants, please dial ++1-416-640-5926 at least 10 minutes prior to the start time of the call.  An audio playback of the call will be available starting Thursday, August 1, 2013 on our website at http://www.trimac.ca/page/eventscalendar.

SOURCE Trimac Transportation Ltd.