Vitran Corp. on Wednesday, Feb. 8, announced year-end and quarterly financial results for the 12- and three-month periods ended Dec. 31. For the year, Vitran posted revenue of $806 million or 20 percent increase compared to $673 million for the 2010 year. Vitran reported a net loss from continuing operations of $14.0 million compared to net loss from continuing operations of $38.1 million. The 2010 results included a non-cash tax valuation allowance in continuing operations of $38.9 million, which was recorded in deferred tax expense.
For the fourth quarter of 2011, Vitran reported consolidated revenue improvement of 20 percent to $205 million compared to $172 million in the fourth quarter of 2010. Net loss from continuing operations was $8.1 million compared to a net loss from continuing operations of $40.2 million. The 2010 fourth- quarter results included the aforementioned non-cash tax valuation allowance.
“Despite a solid year at both Canadian LTL and supply chain operation, we did not achieve the momentum we expected in our U.S. LTL business,” said Rick Gaetz, president and chief executive officer. “Although the U.S. operations experienced a wage increase in 2011, which totaled $12.0 million annualized in the fourth quarter, we did not take advantage of a reasonable operating environment to improve results.”
Plagued by bad weather around the Milan acquisition and a less-than-acceptable service level for a period of six months, Vitran was impacted by high operating expenses in many parts of its business that contributed to weak results, Gaetz said. “We are making progress, but we are not yet monetizing the changes that are occurring in the business,” he said. “Our mission in 2012 is simple – to create earnings momentum in U.S. LTL.”
