TransForce has announced its results for the fourth quarter and financial year ended December 31, 2014. The company reported full year revenue of C$3.7bn, up by 19% from 2013’s result. It also recorded EBIT of C$275.5m, an increase of 31.57% year-on-year. Accordingly TransForce’s margin stood at 7.45%.
Alain Bedard, Chairman, President and Chief Executive Officer of TransForce said, “TransForce completed several significant business acquisitions in 2014, including Contrans, our largest ever. These network additions in all business segments expanded our service offering, geographic reach and, above all, our pool of talent. Going forward, these strengths will be leveraged by further improving operating efficiency and asset utilization with the stated objectives to maximize cash flow generation and create lasting shareholder value.” These acquisitions were the primary reason behind TransForce’s revenue growth over the year.
“In the fourth quarter, acquisitions boosted total revenue above the one-billion mark for the first time ever and, accompanied by efficiency gains across most of our existing network, resulted in strong increases in EBIT and adjusted net income,” said Bedard.
EBIT grew across the board over the year with the exception of the waste management business. The improvement in EBIT in the Package and Courier segment was driven by improved returns from right-sizing US same-day delivery activities and combining certain operations to enhance network efficiency. In the Less-Than-Truckload segment, existing operations accounted for the majority of the year-over-year EBIT growth as a result of asset rationalization and higher yields. The EBIT improvement in the Truckload segment came largely from efficiency gains in existing operations but was largely offset by non-cash intangible amortization charges of acquired businesses.
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