(TSX : ALC)
ST. CATHARINES, ON,
Nov. 8, 2016 /CNW/ - Algoma Central
Corporation ("Algoma" – www.algonet.com) today announced the
results for the three and nine months ended September 30, 2016.
The Company is reporting 2016 third quarter revenues of
$115,333 compared to $125,077 for the same period in 2015. The
decrease in revenue occurred mainly in Domestic Dry-Bulk and was
due to reduced customer demand in major commodities and the impact
of lower fuel costs that are passed on directly to customers as
part of the freight rate. Revenues in the Product Tanker segment
decreased due primarily to reduced customer demand and lower fuel
prices. Partially offsetting these decreases was an improvement in
Ocean Shipping segment revenue due to more revenue days resulting
from the addition of two vessels to the fleet in early January.
Revenues for the nine months ended September 30, 2016 of $252,012 were $42,310 lower than revenues for the same period
in the prior year. Domestic Dry-Bulk revenues decreased by
$49,800, Product Tanker revenues
experienced a decrease of $15,514 and
the Ocean Shipping segment increased $23,004.
Segment operating earnings after income taxes for the 2016 third
quarter of $24,270 includes a gain on
shipbuilding contracts in the amount of $6,126. Excluding this item from the segment
results, the earnings for the third quarter of 2016 would have been
$18,144. Although revenues fell
$9,744, earnings for the 2016 third
quarter of $18,144 were 17% ahead of
last year due primarily to cost control. Improvements in earnings
were realized in all business segments.
Segment operating earnings after income taxes for both the 2016
and 2015 nine-month periods of $27,827 and $16,589
respectively, include gains on shipbuilding contracts in the amount
of $22,322 and $10,067, respectively. Excluding these items from
the segment results, the earnings for the nine- months ended 2016
would have been $5,505 which compares
to earnings for the 2015 nine-month period of $6,522. Improvements in earnings in the Ocean
Shipping and Global Short Sea Shipping segments were more than
offset with decreases in the Domestic Dry-Bulk and Product Tanker
segments, particularly in the first half of 2016.
Net earnings and basic earnings per share from continuing
operations for the 2016 third quarter were $23,568 and $0.61,
respectively, compared to $13,493 and
$0.35, respectively, for the same
period last year. Net earnings and basic earnings per share from
continuing operations for the 2016 nine-months were $27,590 and $0.71,
respectively, compared to earnings of $12,096 and $0.31
for 2015.
Net earnings from discontinued operations for the 2016 third
quarter were $14,934 compared to
$1,350 for the same period last year.
During the third quarter, the Company completed the sale of four
properties resulting in a net gain of $13,070.
|
Three Months
Ended
|
Nine Months
Ended
|
|
September
30
|
September
30
|
|
Revenues
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
|
Domestic
Dry-Bulk
|
$
81,900
|
$
93,108
|
$
157,671
|
$
207,471
|
|
Product
Tankers
|
18,839
|
20,751
|
43,395
|
58,909
|
|
Ocean
Shipping
|
14,594
|
11,218
|
50,946
|
27,942
|
|
|
|
|
|
|
$
115,333
|
$
125,077
|
$
252,012
|
$
294,322
|
|
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
Net Earnings
from
|
September
30
|
September
30
|
|
Continuing
Operations
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
|
Operating earnings
net of income tax
|
|
|
|
|
|
|
|
|
|
Domestic
Dry-Bulk
|
$
12,673
|
$
12,373
|
$
(7,058)
|
$
(5,648)
|
|
Gain (loss) on
shipbuilding
|
|
|
|
|
|
contracts
|
6,126
|
(145)
|
22,322
|
10,067
|
|
18,799
|
12,228
|
15,264
|
4,419
|
|
Product
Tankers
|
5,003
|
3,881
|
5,131
|
9,790
|
|
Ocean
Shipping
|
2,249
|
1,750
|
13,279
|
10,096
|
|
Global Short Sea
Shipping
|
734
|
—
|
2,126
|
—
|
|
Corporate
Office
|
(2,515)
|
(2,439)
|
(7,973)
|
(7,716)
|
|
|
|
|
|
|
Segment operating
earnings
|
|
|
|
|
|
net of income
tax
|
24,270
|
15,420
|
27,827
|
16,589
|
|
Not specifically
identifiable to segments
|
|
|
|
|
Net gain on foreign
currency translation
|
|
|
|
|
1,081
|
1,192
|
3,524
|
3,231
|
|
Interest
expense
|
(2,127)
|
(4,289)
|
(8,086)
|
(9,515)
|
|
Interest
income
|
(52)
|
202
|
869
|
946
|
|
Income tax recovery
(expense)
|
396
|
968
|
3,456
|
845
|
|
|
|
|
|
|
$
23,568
|
$
13,493
|
$
27,590
|
$
12,096
|
About Algoma Central Corporation
Algoma Central Corporation operates the largest Canadian flag
fleet of dry and liquid bulk carriers on the Great Lakes - St.
Lawrence Waterway, including self-unloading dry-bulk carriers,
gearless dry bulk carriers and product tankers. The Company has
announced contracts for seven new Equinox Class domestic dry-bulk
vessels as part of its on-going fleet renewal program. Algoma also
owns ocean dry-bulk vessels operating in international markets.
Algoma provides ship management services for other ship owners. In
2016, Algoma announced a new strategic initiative to grow into
attractive global niche markets, beginning with a fifty percent
interest in a pneumatic cement carrier business.
SOURCE Algoma Central Corporation