TORONTO, Aug. 13, 2014 /CNW/ - Wheels Group Inc.
("Wheels" or the "Company") (TSXV: WGI) today announced its
results for the three months and six months ended June 30, 2014.
Revenue for the quarter ended June 30,
2014 was $94.2 million,
representing an increase of $6.0
million or 6.9% over $88.2
million reported in the quarter ended June 30, 2013. Revenue for the six months ended
June 30, 2014 was $182.1 million, representing an increase of
$9.1 million or 5.2% over
$173.1 million reported in the six
months ended June 30, 2013.
Gross margin for the quarter was $12.4
million, an increase of $0.6
million or 4.9% over the prior year quarter. Gross margin
for the six months was $22.9 million,
an increase of $0.4 million or 1.8%
over the prior year period.
Adjusted EBITDA for the quarter was $2.0
million, a decrease of $0.6
million or 23.9%, from the prior year quarter impacted by a
foreign exchange loss in the quarter of $0.5
million. Adjusted EBITDA as a percentage of revenue for the
quarter was 2.1%, down from 3.0% in the prior year quarter.
Adjusted EBITDA for the six months was $2.9
million, a decrease of $1.2
million or 29.5% from the prior year period. Adjusted EBITDA
as a percentage of revenue for the six months was 1.6%, down from
2.4% for the prior year period.
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|
|
Financial
Highlights
|
For the quarter
ended
|
For the six months
ended
|
(in millions of
dollars, except per share data
and number of shares outstanding)
|
June 30,
2014
|
June 30,
2013
|
June 30,
2014
|
June 30,
2013
|
Revenue
|
94.2
|
88.2
|
182.1
|
173.1
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Gross margin for the
period
|
12.4
|
11.8
|
22.9
|
22.5
|
Net loss for the
period
|
(0.3)
|
(0.1)
|
(1.7)
|
(0.8)
|
Net loss per share
1
|
|
|
|
|
- Basic
|
(0.00)
|
(0.00)
|
(0.02)
|
(0.01)
|
- Diluted
|
(0.00)
|
(0.00)
|
(0.02)
|
(0.01)
|
|
|
|
|
|
Adjusted
EBITDA2
|
2.0
|
2.6
|
2.9
|
4.1
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Adjusted EBITDA per
share 1, 2
|
0.02
|
0.03
|
0.03
|
0.05
|
|
|
|
|
|
Weighted average
number of common shares
outstanding
|
89,556,568
|
89,556,568
|
89,556,568
|
89,556,568
|
1Based on weighted average number of common shares
outstanding.
2See Adjusted EBITDA below.
Net loss for the quarter was $0.3
million or $0.00 per share,
compared to net loss of $0.1 million
or $0.00 per share in the prior year
quarter. Net loss for the six months was $1.7 million or $0.02 per share, compared to a net loss of
$0.8 million or $0.01 per share for the prior year period.
In the Canadian segment, revenue for the quarter increased
$4.4 million or 10.9% to $45.1 million. Revenue for the six months
increased $9.9 million or 12.2% to
$91.1 million. In the US segment,
revenue for the second quarter increased $1.8 million or 3.7% to $50.0 million. Revenue for the six months was
$92.7 million compared to
$93.4 million in the prior year six
month period.
"The Company returned to a more normal operating environment in
the second quarter following the adverse effects of the severe
weather conditions and capacity constraints experienced in the
first quarter. Revenue and gross margin grew in the second quarter
however, results were negatively impacted by a change in mix of
transportation services including reduced margin contribution from
a large customer in the Canadian segment and a foreign exchange
loss." said Doug Tozer, Chief
Executive Officer of Wheels. "We continue to optimize and
streamline Wheels' operations. A facilities consolidation
initiative in Canada will see our
value added warehousing and distribution and LTL operations brought
under one roof in the third quarter. We expect business conditions
will remain competitive through 2014 but are confident that Wheels'
multi-mode, non-asset model positions us well to adapt and respond
to our customer's needs."
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 20 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.