Vitran reported a 18.0% increase in consolidated revenues to $185.4 million in the first quarter of 2011 compared to $157.1 in the first quarter of 2010. Adjusting for the impact of foreign exchange on Vitran's Canadian operations consolidated revenue increased 16.0% in the comparable first quarters. Vitran recorded a net loss from continuing operations of $0.2 million, or $0.01 per diluted for the quarter ended March 31, 2011 compared to a net loss of $1.3 million, or $0.08 per diluted share 2010 three-month period.
On- a non-GAAP basis, that would include Vitran's normal income tax provision for its U.S. operations, the Company recorded earnings from continuing operations of $0.02 per diluted share in the 2011 first quarter compared to a loss from continuing operations of $0.08 per diluted share in the 2010 first quarter. At the end of the fourth quarter of 2010, in accordance with FASB ASC 740-10, Vitran temporarily discontinued recording an income tax provision for its U.S. operations.
"We are pleased to have posted an adjusted first quarter profit of 2 cents per diluted share, it was a significant improvement compared to the first quarter of 2010 particularly given the severe winter weather and sharp increase in full costs this quarter," stated Vitran President and Chief Executive Officer Rick Gaetz.
"During the first quarter we accomplished another significant milestone adding five new southern states to our operating footprint through the acquisition of Milan Express Inc's LTL operation on February 19, 2011.
This acquisition along with growth in our legacy LTL and Supply Chain operations contributed to the improvement in the first quarter revenue.
"The LTL pricing environment continues to firm and we believe yield will improve in the coming months. Our Supply Chain Operation performed well driven by increased activity levels throughout our North America infrastructure. We believe our operating discipline will pave the way for continued growth in the year.
"Our consolidated debt, although slightly higher than the 2010 year end figure due to the Milan acquisition, still remains near the 5 year low.
The Company maintained its leverage ratio and lowest possible interest rate spreads within its credit agreement. At the end of the quarter, 77.0% of the Company's total debt was incurring interest at a rate of less than 3%.
"Finally we are pleased with our financial results for the first quarter and believe we have an opportunity to improve in the quarters ahead as we more efficiently manage the increased density in our LTL operations and eventually begin to cross sell our customers into our five new states of North Carolina, South Carolina, Georgia, Alabama and Mississippi," concluded Mr. Gaetz Segmented Results.
The LTL (less-than-truckload) segment posted improvements in revenue and results from operations. Revenue improved to $159.0 million for the first quarter of 2011 compared to $137.0 million in the first quarter of 2010. The segment recorded income from operations for the 2011 first quarter of $0.9 million, with an OR (operating ratio) of 99.4% compared to a loss from operations of $0.6 million and an OR of 100.5% in the comparable period a year ago.
The Supply Chain Operation segment recorded an increase in revenue of 31.2% to $26.4 million, a 53.3% improvement in income from operations to $2.1 million and a 92.1% OR in the first quarter of 2011.
