TORONTO, May 13, 2014 /CNW/ - Wheels Group Inc.
("Wheels" or the "Company") (TSXV: WGI, OTCQX: WGIJF) today
announced its results for the quarter ended March 31, 2014.
Revenue for the quarter was $87.9
million, an increase of $3.0
million or 3.5% compared to $84.9
million for the prior year quarter ended March 31, 2013. Gross margin was $10.5 million, a decrease of $0.2 million or 1.7%. Adjusted EBITDA was
$0.9 million, a decrease of
$0.6 million or 39.6%. Adjusted
EBITDA as a percentage of revenue for the quarter was 1.0%,
compared to 1.7% for the prior year quarter.
Financial
Highlights
|
|
|
For the quarter
ended
|
(in millions of
dollars, except per share data and number of shares
outstanding)
|
March 31,
2014
|
March 31,
2013
|
Revenue
|
|
|
87.9
|
84.9
|
Gross
margin
|
|
|
10.5
|
10.7
|
Net loss
|
|
|
(1.4)
|
(0.6)
|
Loss per share
1
|
|
|
|
|
- Basic
|
|
|
(0.02)
|
(0.01)
|
- Diluted
|
|
|
(0.02)
|
(0.01)
|
|
|
|
|
|
Adjusted EBITDA
2
|
|
|
0.9
|
1.5
|
Adjusted EBITDA per
share 1, 2
|
|
|
0.01
|
0.02
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
|
89,556,568
|
89,556,568
|
1 Based on weighted average number of common shares
outstanding
2 See Adjusted EBITDA below
In the Canadian segment, revenue was $46.0 million, representing an increase of
$5.5 million or 13.5% over the prior
year quarter ended March 31, 2013. In
the US segment, revenue for the quarter was $42.7 million, representing a decrease of
$2.5 million or 5.6% over the prior
year quarter.
"Wheels was not immune from the negative impacts of the extreme
weather conditions and constrained carrier capacity experienced by
the transportation industry in the quarter," said Doug Tozer, Chief Executive Officer of Wheels.
Mr. Tozer added, "Despite these challenges, Wheels' overall revenue
increased 3.5%. The Canadian business fared better with double
digit revenue growth, while the US business was down from the prior
year. We expect business conditions in North America to remain competitive through
the year but we're confident that our strategy, combined with
management changes made in the previous quarter to streamline our
operations, will drive continued growth."
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 Canadian
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 Wheels to access tax losses
and tax attributes, sources and use and sufficiency of cash flows,
Wheels' 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 Wheels 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 detailed under the "RISK FACTORS" section of the
Company's latest Annual Information Form and the "RISKS AND
UNCERTAINTIES" section of the Company's most recent Management's
Discussion and Analysis.
Although Wheels 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 MD&A, Wheels has
made assumptions regarding: there being no significant disruptions
affecting the operations of Wheels, 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 Wheels' expectations; the ability of
the Company to successfully access tax losses and tax attributes;
the ability of Wheels 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.
The Company 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 24 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.