Trimac reports improved Q2-2012 net income of $2.6 million, an increase of 43.5%

Highlights for the second quarter:

• Trimac's Board of Directors will increase dividend rate by 12%, effective Q3
• EBITDA for the quarter increased 21.3% to $9.7 million
• New three-year contract and business award to transport limestone aggregate for Hammerstone Corporation in Fort McMurray
• Acquired all of the issued and outstanding shares of Liquid Cargo Lines Limited on July 30, 2012
• Cash generated from operations per share improved by 16.6%

CALGARY, July 31, 2012 /PRNewswire/ - Trimac Transportation Ltd. (TSX Symbol TMA) ("Trimac" or the "Company"), Canada's leader in bulk trucking, is pleased to announce the release of its financial results for the second quarter ended June 30, 2012 ("current quarter").  Trimac is also pleased to announce that it is increasing the dividend rate for the third quarter.  Dividend payments on a quarterly basis will increase from $0.0625 per share to $0.07 per share.

Trimac's consolidated revenue, including fuel surcharges, for the three-month period ended June 30, 2012 increased by $3.7 million (or 4.5%) as compared to the same period in the prior year ("comparative quarter"). This increase was the result of incremental revenues earned from the Fortress Trucking Limited acquisition of $3.3 million and the Benson Tanklines Ltd. acquisition of $1.1 million.

Direct costs net of fuel surcharge revenue (net direct costs) expressed as a percentage of revenue before fuel surcharges, decreased in the current quarter to 72.0% from 73.7% in the comparative quarter.  Improved productivity due to continued monitoring of trip standards and a higher quality of revenue contributed to this decrease.  Net direct costs in actual dollar amounts increased $1.1 million over the comparative quarter.  Excluding net direct costs from the Fortress and Benson acquisitions of $2.6 million, net direct costs decreased $1.5 million due to the decreased revenue volumes and strong cost controls.

Selling and administrative costs as a percentage of revenue before fuel surcharges increased slightly to 15.4% from 15.3%.  In absolute dollars selling and administrative costs increased to $11.7 million from $11.1 million in the comparative quarter.

EBITDA closed the current quarter at $9.7 million compared to $8.0 million in the comparative quarter, an increase of 21.3%.  This increase was primarily the result of the improvement in productivity and strong cost controls. 

Effective July 30, 2012 Trimac acquired all of the issued and outstanding shares of Liquid Cargo Lines Limited ("LCL").  LCL, based out of Mississauga, Ontario since 1953, has provided specialized bulk transportation deliveries throughout Ontario, Quebec and the United States with a focus in chemicals and asphalt.  The assets of LCL include 42 trailers, 22 company owner power units in addition to 8 owner operator units and a lease of a 13 acre property in Mississauga, Ontario. 

"We are very pleased with the LCL acquisition and the start-up of the UFA and Hammerstone contracts awarded earlier this year," commented Edward V. Malysa, President and Chief Operating Officer of Trimac.  "We are looking forward to the continued improved results for the balance of 2012.  In addition, Trimac is committed to recruiting and retention initiatives to support our growth and maintain our competitive advantage as a preferred place to work in the bulk trucking industry."

Financial Highlights

Declaration of Quarterly Dividend

The Board of Directors today declared a dividend of $0.07 per share on the Class A common shares, payable on October 15, 2012 to shareholders of record at the close of business on September 28, 2012.

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, 2012 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 financial statements for the Company.

You are invited to join us on a conference call (conference ID 8894886) at 9:00 a.m. Eastern Time on Thursday, August 2, 2012.  For North American participants, please dial 1- 866-322-8032 or for international participants, please dial ++1-416-640-3406 at least 10 minutes prior to the start time of the call.  An audio playback of the call will be available starting Friday, August 3, 2012 on our website at http://www.trimac.ca/page/eventscalendar.

SOURCE Trimac Transportation Ltd.