TORONTO, Aug. 21, 2013 /CNW/ - Wheels Group Inc. ("Wheels" or the "Company") (TSXV: WGI) today announced its results for the quarter ended June 30, 2013.
Revenue for the quarter ended June 30, 2013 was $88.2 million,
representing an increase of $22.1 million or 33.5% over $66.1 million
reported in the quarter ended July 31, 2012. Revenue from MSM Group
("MSM") acquired on October 1, 2012 was $12.1 million, while revenue
from the remainder of the operations increased $10.0 million or 15.1%.
Revenue for the six months ended June 30, 2013 was $173.1 million,
representing an increase of $42.6 million or 32.7% over $130.4 million
reported in the six months ended July 31, 2012. Revenue from MSM was
$23.0 million of the increase, while revenue from the remainder of the
operations increased $19.6 million or 15%.
Gross margin for the quarter ended June 30, 2013 was $11.8 million, an
increase of $2.6 million or 27.9% over the quarter ended July 31, 2012.
MSM contributed $2.6 million, while gross margin from the remainder of
the operations was comparable to the prior year quarter. The second
quarter of 2012 included unusually strong volumes from refrigerated
transportation services. Gross margin for the six months was $22.5
million, an increase of $5.6 million or 33.2% over the prior year
period. MSM contributed $4.7 million, while gross margin from the
remainder of the operations grew by 5.7%.
Adjusted EBITDA for the quarter ended June 30, 2013 increased 17.4% to
$2.6 million from $2.2 million for the quarter ended July 31, 2012.
Adjusted EBITDA for the six months ended June 30, 2013 increased 36.9%
to $4.1 million from $3.0 million for the six months ended July 31,
2012. Adjusted EBITDA as a percentage of revenue for the six months
ended June 30, 2013 was 2.4%, up from 2.3% for the prior year period.
Financial Highlights 1||
For the quarter ended
For the six months ended
(in millions of dollars, except per share data and number|
of shares outstanding)
|June 30, 2013||July 31, 2012||June 30, 2013||July 31, 2012|
Gross margin for the period
Net income (loss) for the period
Earnings per share 2 || ||
Adjusted EBITDA 3 ||2.6 ||
Adjusted EBITDA per share 2, 3||0.03 ||
Weighted average number of common shares outstanding
Comparison with the quarter end and six months ended July 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.
Based on weighted average number of common shares outstanding.
See Adjusted EBITDA below.
Net loss for the quarter ended June 30, 2013 was $0.1 million or $0.00
per share, compared to net income of $0.7 million in the prior year
quarter. Net loss for the six months ended June 30, 2013 was $0.8
million or $0.00 per share, compared to a net loss of $0.5 million for
the six months ended July 31, 2012.
In the Canadian segment, revenue for the second quarter increased $13.7
million or 50.8% to $40.7 million. Revenue for the six months increased
$24.5 million or 43.3% to $81.2 million. In the US segment, revenue for
the second quarter increased $9.1 million or 23.2% to $48.3 million.
Revenue for the six months increased $19.4 million or 26.2% to $93.4
"Wheels delivered solid growth in the first half of the year," said Doug
Tozer, Chief Executive Officer of Wheels. "The Company had another
record quarter with double digit revenue and margin growth in both
Canada and the US. Despite competitive conditions in the US market, we
anticipate continued growth in revenues in the last half of the year
which will be leveraged across our platform to grow EBITDA and increase
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
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.
Founded in 1988, Wheels is a leading North American third party
logistics (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, Platinum since 2003. Wheels has been
named one of North America's Top 100 3PL Companies, one of the Top 100
Food 3PL's and one of the Top Five IMC's (intermodal marketing
Neither the TSX Venture Exchange, nor its Regulation Services Provider
accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Wheels Group Inc.