TORONTO, March 23, 2014 /CNW/ - Wheels Group Inc.
("Wheels" or the "Company") (TSXV: WGI) today announced its
results for the quarter and year ended December 31, 2014.
Revenue for the year ended December 31,
2014 was $375.1 million,
representing an increase of $19.9
million or 5.6% over $355.2
million reported for the year ended December 31, 2013. Revenue for the quarter ended
December 31, 2014 was $100.1 million, representing an increase of
$6.4 million or 6.8% over
$93.8 million reported in the quarter
ended December 31, 2013.
Gross margin for the year was $47.3
million, a decrease of $0.5
million or 1.1% over the prior year. Gross margin for the
quarter was $13.0 million, a decrease
of $0.2 million or 1.8% over the
prior year quarter.
Adjusted EBITDA for the year was $8.3
million, a decrease of $1.3
million or 13.7% from the prior year. Adjusted EBITDA as a
percentage of revenue for the year was 2.2%, down from 2.7% for the
prior year. Adjusted EBITDA for the quarter was $3.3 million a decrease of $0.1 million or 1.9% from the prior year quarter.
Adjusted EBITDA as a percentage of revenue for the quarter was
3.3%, down from 3.6% in the prior year quarter.
Financial
Highlights
|
For the quarter
ended
|
For the year
ended
|
(in millions of
dollars, except per share data and number of
shares outstanding)
|
December 31,
2014
|
December 31,
2013
|
December 31,
2014
|
December 31,
2013
|
Revenue
|
100.1
|
93.8
|
375.1
|
355.2
|
Gross margin for the
period
|
13.0
|
13.2
|
47.3
|
47.9
|
Net income (loss) for
the period
|
0.2
|
0.7
|
(1.1)
|
(0.0)
|
Earning (loss) per
share 1
|
|
|
|
|
- Basic
|
0.00
|
0.01
|
(0.01)
|
0.00
|
- Diluted
|
0.00
|
0.01
|
(0.01)
|
0.00
|
|
|
|
|
|
Adjusted
EBITDA2
|
3.3
|
3.3
|
8.3
|
9.6
|
Adjusted EBITDA per
share 1, 2
|
0.04
|
0.04
|
0.09
|
0.11
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
89,556,568
|
89,556,568
|
89,556,568
|
89,556,568
|
1 Based on weighted average number of common shares
outstanding.
2 See Adjusted EBITDA below.
Net loss for the year was $1.1
million or $0.01 per share,
compared to a net loss of $0.02
million for the prior year. Net income for the quarter was
$0.2 million or $Nil per share,
compared to net income of $0.7
million or $0.01 per share, in
the prior year quarter.
In the Canadian segment, revenue for the year was $182.1 million, an increase of $6.6 million or 3.7% over the prior year. Revenue
for the quarter was $46.9 million, a
decrease of $3.4 million or 6.8% from
the prior year quarter. In the US segment, revenue for the year was
$197.6 million, an increase of
$14.3 million or 7.8% over the prior
year. Revenue for the quarter was $54.9
million, an increase of $10.3
million or 23.1% over the prior year quarter.
"Consolidated revenue for 2014 increased over the prior year.
However, adjusted EBITDA was below 2013 due to the impact of
extreme weather conditions in the first quarter and competitive
market pressures," said Doug Tozer,
Chief Executive Officer of Wheels. "We continued to optimize the
Company's operations, completing the first phase of our Canadian
facility and office consolidation and reducing public company and
related costs, the benefits of which will contribute to 2015
results. Looking ahead, Wheels' previously announced arrangement
agreement with Radiant Logistics is expected to close early in
April. We are excited about the merger and view it as an excellent
opportunity to accelerate the growth of both companies."
Adjusted EBITDA
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 Analysis.
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.
About Wheels
Founded in 1988, Wheels is a leading North American third party
logistics ("3PL") provider. As a non-asset provider, Wheels
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 18 offices throughout
the United States and Canada. Wheels has been named one of
Canada's Best Managed Companies
since 1997, Platinum since 2003, one of North America's Top 100 3PL Companies and one
of the Top 100 Food 3PLs.
Neither the TSX Venture Exchange, nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Wheels Group Inc.