Algoma Central Corp. Reports Operating Results for the Three & Nine Months Ended September 30, 2019 & a 10% Increase in Quar...
06 November 2019 - 11:00PM
Business Wire
Algoma Central Corporation (“Algoma” or “the Company”) (TSX:
ALC), a leading provider of marine transportation services, today
announced its results for the three and nine months ended September
30, 2019.
All amounts reported below are in thousands of Canadian dollars,
except for per share data and unless otherwise noted. Third quarter
2019 highlights include:
- The Product Tanker segment earnings grew 262% driven by higher
rates and having two additional vessels operating in the quarter
compared to last year. The two new tankers enabled us to meet
customer demand with our own vessels, replacing chartered capacity
used in prior periods.
- The Ocean Self-Unloader segment is continuing to experience
strong performance as a result of steady customer demand. This,
combined with three additional ships acquired late in the second
quarter, resulted in 20% earnings growth.
- The Domestic Dry-Bulk segment earnings increased by 3% as a
result of higher freight rates on improved contract terms,
partially offset by fewer ships operating in the fleet compared to
last year and vessel out of service time.
- The Global Short Sea Shipping segment contributed $3,031 to
earnings compared to $1,988 last year. Improved earnings from
cement and gains from vessel sales are the primary drivers.
- Basic earnings per share in the 2019 third quarter were $0.55
compared to $0.51 for the same period in 2018.
EBITDA was $58,448 in the 2019 third quarter versus $49,057 for
the same period in 2018. EBITDA increased in Product Tankers and in
Ocean Self-Unloaders, partially offset by decreases in Domestic
Dry-Bulk and in Global Short Sea Shipping.
Three Months Ended
Nine Months Ended
For the periods ended September 30
2019
2018
2019
2018
Net earnings
$
21,049
$
19,639
$
20,362
$
24,941
Depreciation and amortization
22,365
18,335
62,485
50,159
Interest and taxes
14,792
9,204
19,909
14,754
Other
242
1,879
1,463
(1,932
)
Consolidated EBITDA
$
58,448
$
49,057
$
104,219
$
87,922
"Last year at this time we talked about reviewing options to add
capacity. Fast forward a year and we have added six vessels to
operations that are now fully integrated and contributing to
earnings," said Gregg Ruhl, President & CEO of the Company. "We
are also experiencing steady improvements in freight rates across
our core businesses and look forward to continued improvement in
the fourth quarter," added Mr. Ruhl.
Consolidated revenue for the 2019 third quarter was $167,901, an
increase of 6% compared to $158,729 reported for the same period in
2018. The increase was primarily a result of having additional
tankers and ocean self-unloaders in the fleet supported by improved
rates and strong customer demand in those segments. Revenue
decreased in the Domestic Dry-Bulk segment as a result of the
smaller fleet size and out of service time on two vessels, offset
by higher freight rates and improved contract terms.
There was an increase in net earnings in the quarter to $21,049,
as our core businesses and joint ventures both saw improvements in
operating earnings. This was offset by an increase in interest
expense.
Three Months Ended
Nine Months Ended
For the periods ended September 30
2019
2018
2019
2018
Revenue
$
167,901
$
158,729
$
398,923
$
358,658
Expenses
Operations
(109,589
)
(110,168
)
(291,938
)
(268,039
)
Selling, general and administrative
(7,491
)
(6,751
)
(23,072
)
(21,027
)
(117,080
)
(116,919
)
(315,010
)
(289,066
)
50,821
41,810
83,913
69,592
Depreciation and amortization
(19,227
)
(14,243
)
(50,827
)
(40,927
)
Interest expense
(5,777
)
(4,624
)
(14,361
)
(9,658
)
Interest income
220
1,891
979
2,441
Foreign currency (loss) gain
(372
)
(1,819
)
(976
)
1,521
25,665
23,015
18,728
22,969
Income Tax Expense
(7,758
)
(5,050
)
(1,528
)
(4,148
)
Net Earnings of Joint Ventures
3,142
1,674
3,162
6,120
Net Earnings
$
21,049
$
19,639
$
20,362
$
24,941
Basic earnings per share
$
0.55
$
0.51
$
0.53
$
0.65
Diluted earnings per share
$
0.52
$
0.49
$
0.53
$
0.65
The third quarter MD&A includes further details.
Full three and nine months ended September 30, 2019 results can
be found on the Company’s website at www.algonet.com/investor-relations and on SEDAR at
www.sedar.com.
Normal Course Issuer Bid
During the third quarter of 2019 and nine months ended September
30, 2019, 31,200 and 259,100 shares, respectively, were purchased
for cancellation.
Cash Dividends
The Company’s Board of Directors on November 5, 2019 authorized
payment of a quarterly dividend to shareholders of $0.11 per common
share. The dividend is payable on December 2, 2019 to shareholders
of record on November 18, 2019.
Use of Non-GAAP Measures
There are measures included in this press release that do not
have a standardized meaning under generally accepted accounting
principles (GAAP). The Company includes these measures because it
believes certain investors use these measures as a means of
assessing financial performance. EBITDA is a non-GAAP measure that
does not have any standardized meaning prescribed by IFRS and may
not be comparable to similar measures presented by other companies.
Please refer to the Management’s Discussions and Analysis for the
three and nine months ended September 30, 2019 for further
information regarding non-GAAP measures.
About Algoma Central
Algoma owns and operates the largest fleet of dry and liquid
bulk carriers operating on the Great Lakes - St. Lawrence Waterway,
including self-unloading dry-bulk carriers, gearless dry-bulk
carriers and product tankers. Algoma also owns ocean self-unloading
dry-bulk vessels operating in international markets and a 50%
interest in NovaAlgoma, which owns and operates a diversified
portfolio of dry-bulk fleets serving customers internationally.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191106005323/en/
Gregg A. Ruhl President & CEO 905-687-7890
Peter D. Winkley Chief Financial Officer
905-687-7897
www.algonet.com or www.sedar.com
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