Vitran reported profit in the first quarter of 2013 of $67.7 million, compared with a net loss of $5.8 million in the first quarter of 2012.
However, Vitran, No. 30 on JOC’s list of Top 50 Trucking Companies, posted a net loss from continuing operations of $17.6 million in the first quarter, compared with a net loss of $7.2 million in the same period last year. The company posted a loss from operations in its less-than-truckload division for the first quarter of 2013 of $14.5 million, versus $4.8 million for the first quarter of 2012. On a year-over-year basis, shipments and tonnage decreased 13.0 percent and 13.1 percent, respectively, in the LTL division.
Quarterly revenue was $161.1 million, decreasing 9.8 percent year-over-year from $178.6 million.
Additionally, Vitran has completed the previously announced divestiture of its supply chain operation for $97.0 million in cash. The company recorded a gain of $84.6 million on the divestiture of its SCO segment. The gain and operating results of the segment have been recorded as a discontinued operation.
“We are very disappointed with Vitran's financial results,” said William Deluce, the company’s interim president and CEO, in a written statement. “I would like to reiterate that management and the board are engaged, determined and understand the urgency to enhance shareholder value in Vitran.”
Nevertheless, he noted that Canadian LTL continues to “meet management’s expectations.”
A search for a new CEO is underway, but the choice will likely depend on what strategy the board decides to pursue, according to Stifel Transportation & Logistics Research Group.
Stifel also noted that the company is probably exploring all options to maximize shareholder value, including sale of the company or sale of just the Canadian division.