(TSX : ALC)
ST. CATHARINES, ON,
Feb. 22, 2017 /CNW/ - Algoma
Central Corporation ("Algoma" – www.algonet.com), a leading
provider of marine transportation services, today announced its
results for the year ended December 31,
2016.
Fiscal 2016 highlights include:
- Net earnings of $33.3 million and
earnings per share of $0.86,
increases of 29% and 30% respectively compared to 2015.
- Earnings before interest, taxes, depreciation and amortization
(EBITDA[1]) increased by $9.8 million
to $89.3 million.
- Collected all deposits together with accrued interest on
cancelled shipbuilding contracts.
- Acquired 2.5 ocean self-unloaders, doubling our interest in our
international commercial pool.
- Sold five buildings from our discontinued real estate business
for total proceeds of $51.3
million.
- Established NovaAlgoma Cement Carriers with our partner Nova
Marine Carriers, marking our entry into short-sea shipping
globally.
- On December 29, 2016, the Algoma
Innovator, the first of our new 650' self-unloaders was launched by
3Maj Shipyard in Croatia.
Subsequent to the year-end, on February 16,
2017, the Algoma Niagara, our first new 740' self-unloader
was launched at YZJ Shipyard in China.
"We are proud of the achievements of our employees in 2016,"
said Ken Bloch Soerensen, President
and CEO of Algoma. Mr. Soerensen continued, "Their efforts enabled
the Company to deliver profitable results under difficult market
conditions and advance our strategic priority of growing business
in global short-sea shipping."
Net earnings from continuing operations, which excludes income
from our discontinued real estate business, was $7,374 compared to $21,069 for 2015. Earnings for both years are
affected by certain specific transactions and events, as
follows:
- Earnings for both years include gains related to the
cancellation of shipbuilding contracts and the refund of progress
payments made on those contracts. Fiscal 2016 results include a
gain of $26,387 and fiscal 2015
includes a gain of $13,567.
- Earnings for fiscal 2016 reflect a loss of $7,536 resulting from marking to market certain
forward foreign exchange contracts that became ineffective as
hedges for accounting purposes during the fourth quarter.
- Earnings for fiscal 2016 are net of provisions totalling
$42,661 related to impairment of the
carrying value of our Domestic Dry-Bulk and Product Tanker fleets
(2015 - $937) and $5,033 (2015 - $2,686) related to the accelerated depreciation
on certain vessels scheduled for retirement.
_____________________________
1 EBITDA is a non-GAAP measure. Please refer to our 2016
management discussion and analysis for more information.
Net earnings from continuing operations excluding the specific
transactions mentioned above for 2016 were $26,645 compared to $13,071 for 2015. Please see our 2016 management
discussion and analysis for further details.
Results from continuing operations for the fourth quarter and
for fiscal 2016 were as follows:
|
Three
Months
|
|
Twelve
Months
|
|
Ended
December 31
|
|
Ended
December 31
|
|
2016
|
2015
|
|
2016
|
2015
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
Dry-Bulk
|
$
|
86,550
|
$
|
92,081
|
|
$
|
244,221
|
$
|
299,553
|
Product
Tankers
|
19,609
|
16,426
|
|
63,004
|
75,335
|
Ocean
Shipping
|
21,233
|
10,663
|
|
72,179
|
38,605
|
|
$
|
127,392
|
$
|
119,170
|
|
$
|
379,404
|
$
|
413,493
|
|
|
|
|
|
|
Net Earnings from
Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
Dry-Bulk
|
$
|
16,465
|
$
|
9,044
|
|
$
|
9,407
|
$
|
3,396
|
Impairment
expense
|
(27,519)
|
(689)
|
|
(27,519)
|
(689)
|
Unrealized loss of
foreign currency exchange contracts
|
(5,539)
|
-
|
|
(5,539)
|
-
|
Gain (loss) on
shipbuilding contracts
|
-
|
(95)
|
|
22,322
|
9,972
|
|
(16,593)
|
8,260
|
|
(1,329)
|
12,679
|
|
|
|
|
|
|
Product
Tankers
|
3,076
|
2,120
|
|
8,207
|
11,910
|
Impairment
expense
|
(3,837)
|
-
|
|
(3,837)
|
-
|
|
(761)
|
2,120
|
|
4,370
|
11,910
|
Ocean
Shipping
|
5,692
|
2,849
|
|
18,971
|
12,945
|
Global Short Sea
Shipping
|
416
|
-
|
|
2,542
|
-
|
Corporate
|
(3,847)
|
(2,343)
|
|
(11,820)
|
(10,059)
|
|
|
|
|
|
|
Segment (loss)
earnings
|
(15,093)
|
10,886
|
|
12,734
|
27,475
|
|
|
|
|
|
|
Not specifically
identifiable to segments
|
|
|
|
|
|
Net (loss) gain on
foreign currency translation
|
(19)
|
558
|
|
3,505
|
3,789
|
Interest
expense
|
(1,738)
|
(3,765)
|
|
(9,824)
|
(13,280)
|
Interest
income
|
273
|
324
|
|
1,142
|
1,270
|
Income tax (expense)
recovery
|
(3,640)
|
970
|
|
(183)
|
1,815
|
|
|
|
|
|
|
Net (loss) earnings
from continuing operations
|
$
|
(20,217)
|
$
|
8,973
|
|
$
|
7,374
|
$
|
21,069
|
|
|
|
|
|
|
Basic (loss) earnings
per common share
|
$
|
(0.52)
|
$
|
0.23
|
|
$
|
0.19
|
$
|
0.54
|
Consolidated revenues for 2016 were $379,404 compared to the $413,493 reported for fiscal 2015. An increase in
revenue in the Ocean Dry-Bulk segment resulting from an approximate
doubling of our interest in the international commercial pool was
more than offset by volume related decreases in Domestic Dry-Bulk
and Product Tankers. Revenue of the Global Short-Sea Shipping
segment, in which we participate via a joint venture, is not
included in the consolidated revenue figure. Our Global Short-Sea
Shipping venture generated revenues of $17,983. We have a 50% interest in this
venture.
Cash Dividends
The Board of Directors has declared a dividend of $0.07 per common share to shareholders. This cash
dividend will be paid on March 1,
2017 to shareholders of record on February 15, 2017.
In addition, the Board of Directors has approved an increase in
the quarterly dividend to $0.08 per
share beginning with the June
1st, 2017 dividend.
About Algoma Central Corporation
Algoma Central Corporation operates the largest Canadian flag
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. The Company has
announced contracts for seven new Equinox Class domestic dry-bulk
vessels as part of its on-going fleet renewal program. Algoma also
owns ocean dry-bulk vessels operating in international markets.
Algoma provides ship management services for other ship owners. In
2016, Algoma announced a strategic initiative to grow into
attractive global niche markets, beginning with a fifty percent
interest in a pneumatic cement carrier business.
SOURCE Algoma Central Corporation