TORONTO, Nov. 12, 2014 /CNW/ - Wheels Group Inc.
("Wheels" or the "Company") (TSXV: WGI) today announced its
results for the three months and nine months ended September 30, 2014.
Revenue for the quarter ended September 30, 2014 was $92.9 million, representing an increase of
$4.5 million or 5.1% over
$88.4 million reported in the quarter
ended September 30, 2013. Revenue for
the nine months ended September 30,
2014 was $274.9 million,
representing an increase of $13.5
million or 5.2% over $261.5
million reported in the nine months ended September 30, 2013.
Gross margin for the quarter was $11.4 million, a decrease of $0.7 million or 5.8% over the prior year quarter.
Gross margin for the nine months was $34.3
million, a decrease of $0.3
million or 0.9% over the prior year period.
Adjusted EBITDA for the quarter was $2.2 million comparable to the prior year
quarter. Adjusted EBITDA as a percentage of revenue for the quarter
was 2.3%, down from 2.5% in the prior year quarter. Adjusted EBITDA
for the nine months was $5.1 million,
a decrease of $1.3 million or 19.9%
from the prior year period. Adjusted EBITDA as a percentage of
revenue for the nine months was 1.8%, down from 2.4% for the prior
year period.
Financial
Highlights
|
For the quarter
ended
|
For the nine months
ended
|
(in millions of
dollars, except per share data and number of
shares outstanding)
|
September 30,
2014
|
September 30,
2013
|
September 30,
2014
|
September 30,
2013
|
Revenue
|
92.9
|
88.4
|
274.9
|
261.5
|
Gross margin for the
period
|
11.4
|
12.1
|
34.3
|
34.6
|
Net income (loss) for
the period
|
0.5
|
0.0
|
(1.3)
|
(0.7)
|
Earning (loss) per
share 1
|
|
|
|
|
- Basic
|
0.01
|
0.00
|
(0.01)
|
(0.01)
|
- Diluted
|
0.01
|
0.00
|
(0.01)
|
(0.01)
|
|
|
|
|
|
Adjusted
EBITDA2
|
2.2
|
2.2
|
5.1
|
6.3
|
Adjusted EBITDA per
share 1, 2
|
0.02
|
0.02
|
0.06
|
0.07
|
|
|
|
|
|
Weighted average
number of common
shares outstanding
|
89,556,568
|
89,556,568
|
89,556,568
|
89,556,568
|
1 Based on
weighted average number of common shares outstanding.
2 See Adjusted EBITDA below.
|
Net income for the quarter was $0.5 million or $0.01 per share, compared to net income of $Nil
in the prior year quarter. Net loss for the nine months was
$1.3 million or $0.01 per share, compared to a net loss of
$0.7 million for the prior year
period.
In the Canadian segment, revenue for the quarter
increased $0.01 million or 0.2% to
$44.2 million. Revenue for the nine
months increased $9.9 million or 8.0%
to $135.2 million. In the US segment,
revenue for the third quarter increased $4.7
million or 10.4% to $49.9
million. Revenue for the nine months was $142.6 million compared to $138.6 million in the prior year nine month
period.
"Revenue grew in the US segment in the quarter,"
said Doug Tozer, Chief Executive
Officer of Wheels. "While revenue in the Canadian segment was
comparable to the prior year quarter, gross margin was impacted due
to a change in mix of services including reduced margin from a
large customer. We continue to streamline our operations. Wheels'
LTL operations are now under one roof in our value added
distribution facility and further consolidation is in process with
efficiencies expected to benefit our 2015 results. Looking ahead,
we are encouraged by the strength of Wheels' sales pipeline and our
ability to add and quickly scale new customers while expanding the
services provided to existing customers.
Adjusted EBITDA
The term adjusted EBITDA is used to describe
earnings before any deduction for income taxes, net finance cost,
depreciation, amortization, one-time non-recurring expenses and
share-based compensation. EBITDA and adjusted EBITDA are metrics
used by many investors and analysts to compare organizations on the
basis of ability to generate cash from operations. Management
considers adjusted EBITDA (as defined) to be an indirect measure of
operating cash flows, which is a significant indicator of the
success of any business. EBITDA and adjusted EBITDA are not
intended to be representative of cash flow from operations or
results of operations determined in accordance with IFRS.
EBITDA and adjusted EBITDA are not recognized
measures under IFRS. Wheels' method of calculating EBITDA and
adjusted EBITDA may differ from methods used by other companies,
and accordingly may not be comparable to similar measures presented
by other companies.
The financial statements and related Management
Discussion and Analysis will be available on the Company's website
at www.wheelsgroup.com and on SEDAR at www.sedar.com.
Caution Regarding Forward-Looking
Statements
Certain statements contained in this news release
constitute forward-looking statements within the meaning of certain
securities laws, including the Securities Act (Ontario). Forward-looking statements can be
generally identified by the use of words such as "anticipate",
"continue", "estimate", "expect", "expected", "intend", "may",
"will", "project", "plan", "should", "believe" and similar
expressions. Specifically, forward-looking statements in this news
release include statements respecting certain future expectations
about: prices and demand for commodities, products and services,
capital expenditures, the ability of the Company to access tax
losses and tax attributes, sources and use and sufficiency of cash
flows, the Company's ability to renew its term debt at maturity,
the effect of changes in the exchange and interest rates and the
prices of key services. Forward-looking statements in this news
release describe the expectations of the Company as of the date
hereof. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking statements for a variety of reasons, including
without limitation the RISKS AND UNCERTAINTIES section of the
Company's most recent Management's Discussion and Analysis.
Although the Company believes the expectations
reflected in these forward-looking statements and the assumptions
upon which they are based are reasonable, no assurance can be given
that actual results will be consistent with such forward-looking
statements, and they should not be unduly relied upon. With respect
to the forward-looking statements contained in this news release,
the Company has made assumptions regarding: there being no
significant disruptions affecting the Company's operations, whether
due to labour disruptions, damage to equipment or otherwise; the
ability of Wheels to obtain transportation services and supplies in
a timely manner to carry out its activities and at prices
consistent with current levels or in line with the Company's
expectations; the ability of the Company to successfully access tax
losses and tax attributes; the ability of the Company to obtain
financing on acceptable terms; currency exchange and interest rates
being consistent with current levels or in line with Wheels'
expectations; and global economic performance.
Wheels disclaims any intention or obligation to
update any forward-looking statement even if new information
becomes available, as a result of future events or for any other
reason. The forward-looking statements contained herein are
expressly qualified in their entirety by this cautionary
statement.
Further information can be found in the
disclosure documents filed by Wheels Group Inc. with the securities
regulatory authorities, available under the profile of the Company
on www.SEDAR.com.
About Wheels
Founded in 1988, Wheels is a leading North
American 3PL, supply chain logistics provider. As a non-asset
provider, the Company develops advanced supply chain solutions
delivered through its qualified partner network of over 6,000
truck, rail, air and ocean carriers. Wheels serves consumer goods,
food and beverage, manufacturing and retail clients through 18
offices throughout the US and Canada. Wheels has been named one of
Canada's Best Managed Companies
since 1997, Platinum since 2003. Wheels has been named one of
North America's Top 100
Third-Party Logistics ("3PL") Companies and one of the Top 100 Food
3PL's.
Neither the TSX Venture Exchange, nor its
Regulation Services Provider accepts responsibility for the
adequacy or accuracy of this release.
SOURCE Wheels Group Inc.