Revenue up 20.1%, gross margin up 23.8%, EBITDA up
2.4%
TORONTO,
Nov. 27, 2013 /CNW/ - Wheels Group
Inc. ("Wheels" or the "Company") (TSXV: WGI, OTCQX: WGIJF) today
announced its results for the quarter ended September 30, 2013.
Revenue for the quarter ended September 30, 2013 was $88.4 million, representing an increase of
$14.8 million or 20.1% over
$73.6 million reported in the quarter
ended October 31, 2012. Revenue from
MSM Group ("MSM") acquired on October 1,
2012 was $9.3 million of the
increase, while revenue from the remainder of the operations
increased $5.5 million or 7.9%.
Revenue for the nine months ended September
30, 2013 was $261.5 million,
representing an increase of $57.4
million or 28.2% over $204.0
million reported in the nine months ended October 31, 2012. Revenue from MSM was
$32.3 million of the increase, while
revenue from the remainder of the operations increased $25.1 million or 12.5%.
Gross margin for the quarter ended September 30, 2013 was $12.1 million, an increase of $2.3 million or 23.8% over the quarter ended
October 31, 2012. MSM contributed
$1.8 million, while gross margin from
the remainder of the operations increased $0.6 million or 6.2%. Gross margin for the nine
months ended September 30, 2013 was
$34.6 million, an increase of
$7.9 million or 29.8% over the nine
months ended October 31, 2012. MSM
contributed $6.4 million, while gross
margin from the remainder of the operations grew by $1.5 million or 5.9%.
Adjusted EBITDA for the quarter ended
September 30, 2013 increased 2.4% to
$2.2 million. Adjusted EBITDA for the
nine months ended September 30, 2013
increased 22.3% to $6.3 million from
$5.2 million for the nine months
ended October 31, 2012. Adjusted
EBITDA as a percentage of revenue for the nine months ended
September 30, 2013 was 2.4%,
comparable with 2.5% for the nine months ended October 31, 2012.
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Financial Highlights 1 |
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For the quarter
ended |
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For the nine
months ended |
(in millions of dollars, except per
share data and
number of shares outstanding) |
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September 30,
2013 |
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October 31,
2012 |
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September 30,
2013 |
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October 31,
2012 |
Revenue |
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88.4 |
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73.6 |
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261.5 |
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204.0 |
Gross margin for the period |
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12.1 |
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9.8 |
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34.6 |
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26.7 |
Net income (loss) for the period |
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0.0 |
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(0.3) |
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(0.7) |
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(0.8) |
Earnings per share 2 |
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Basic |
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0.00 |
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0.00 |
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(0.01) |
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(0.01) |
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Diluted |
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0.00 |
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0.00 |
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(0.01) |
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(0.01) |
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Adjusted EBITDA 3 |
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2.2 |
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2.2 |
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6.3 |
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5.2 |
Adjusted EBITDA per share 2, 3 |
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0.02 |
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0.02 |
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0.07 |
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0.06 |
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Weighted average number of common
shares outstanding |
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89,556,568 |
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88,230,481 |
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89,556,568 |
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87,782,845 |
1 |
Comparison with the quarter end and nine months ended October
31, 2012 due to change in fiscal year end to December 31 from
January 31. Results reflect the acquisition of Wheels MSM
completed on October 1, 2012. |
2 |
Based on weighted average number of common shares
outstanding. |
3 |
See Adjusted EBITDA below. |
Net income for the quarter ended September 30, 2013 was $Nil or $0.00 per share compared to a net loss of
$0.3 million in the prior year
quarter. Net loss for the nine months ended September 30, 2013 was $0.7 million or $0.01 per share, compared to a net loss of
$0.8 million for the nine months
ended October 31, 2012.
In the Canadian segment, revenue for the third
quarter increased $9.0 million or
25.8% to $44.1 million. Revenue for
the nine months increased $33.6
million or 36.6% to $125.3
million. In the US segment, revenue for the three months
increased $6.4 million or 16.4% to
$45.2 million. Revenue for the nine
months increased 22.8% or $25.8
million to $138.7 million.
"Wheels delivered solid growth in the first nine
months of the year with contributions from both existing operations
and acquisitions," said Doug Tozer,
Chief Executive Officer of Wheels. "We continue to invest in the
business, while focusing on appropriate measures to improve the
efficiency of our operations. Our non-asset model remains central
to our approach as we maintain flexibility in delivering the best
solutions possible for our customers regardless of mode or service.
As revenue grows, we expect EBITDA and EBITDA margins to
expand."
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's 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 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
at 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 26 offices throughout the
US and Canada. Wheels has been
named one of Canada's 50 Best
Managed Companies since 1997, with Platinum status since 2003.
Wheels has been named one of North
America's Top 100 Third-Party Logistics ("3PL") Companies,
one of the Top 100 Food 3PL's and one of the Top Five Intermodal
Marketing Companies.
Neither the TSX Venture Exchange, nor its
Regulation Services Provider accepts responsibility for the
adequacy or accuracy of this release.
SOURCE Wheels Group Inc.