Revenue Up 36.6%, Gross Margin Up 38%, EBITDA Up
32.2%
TORONTO,
March 26, 2014 /CNW/ - Wheels
Group Inc. ("Wheels" or the "Company") (TSXV: WGI) (OTCQX:
WGIJF) today announced its results for the fourth quarter and
year ended December 31, 2013.
Revenue for the year was $355.2 million, an increase of $95.3 million or 36.6% over the prior year eleven
month period ended December 31, 2012.
Gross margin was $47.9 million, an
increase of $13.2 million or 38.0%.
Adjusted EBITDA was $9.6 million, an
increase of $2.3 million or 32.2%.
Adjusted EBITDA as a percentage of revenue for the year was 2.7%
compared to 2.8% for the prior year eleven month period.
Revenue for the quarter ended December 31, 2013 was $93.8 million, an increase of $37.8 million or 67.6%, compared to $56.0 million in the prior year two month period
ended December 31, 2012. Gross margin
for the quarter was $13.2 million, an
increase of $5.2 million or 65.4%.
Adjusted EBITDA for the quarter prior to the impact of
restructuring costs was $3.3 million,
an increase of $1.2 million or 55.8%.
Adjusted EBITDA as a percentage of revenue for the quarter was
3.6%, compared to 3.8% for the prior year two month period.
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Financial Highlights |
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For the quarter
ended4 |
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For the year
ended4 |
(in millions of dollars, except per
share data and number of
shares outstanding) |
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Three months
ended |
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Two months
ended |
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Twelve months
ended |
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Eleven months
ended |
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Dec 31, 2013 |
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Dec 31, 20123 |
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Dec 31, 2013 |
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Dec 31, 20123 |
Revenue |
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93.8 |
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56.0 |
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355.2 |
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260.0 |
Gross margin |
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13.2 |
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8.0 |
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47.9 |
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34.7 |
Net income (loss) |
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0.7 |
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0.9 |
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(0.0) |
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0.1 |
Earnings per
share1 |
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- Basic |
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0.01 |
|
0.01 |
|
0.00 |
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0.00 |
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- Diluted |
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0.01 |
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0.01 |
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0.00 |
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0.00 |
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Adjusted EBITDA2 |
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3.3 |
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2.1 |
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9.6 |
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7.3 |
Adjusted EBITDA per share1, 2 |
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0.04 |
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0.02 |
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0.11 |
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0.08 |
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Weighted average number of common shares
outstanding |
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89,556,568 |
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88,105,822 |
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89,556,568 |
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88,105,822 |
1 |
Based on weighted average number of common shares
outstanding. |
2 |
See Adjusted EBITDA below. |
3 |
Results reflect the acquisition of Wheels MSM ("MSM") completed
on October 1, 2012. |
4 |
As a result of a change in fiscal year end in
the prior year, the corresponding reporting periods for the quarter
and year ended December 31,
2013 are two months and eleven months ended December 31, 2012
respectively. |
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As the Company changed its fiscal year end in
the prior year, comparison is provided with unaudited figures for
the three months and twelve months ended December 31, 2012 to assist in assessing the
Company's results.
Revenue for the year ended December 31, 2013 increased $74.8 million or 26.7% over the comparable
unaudited twelve month period ended December
31, 2012. Revenue from MSM was $35.9
million of the increase, while revenue from the remainder of
the operations increased $38.9
million or 14.4%. Revenue for the quarter ended December 31, 2013 increased $8.3 million or 9.7% over the comparable
unaudited three month period ended December
31, 2012.
In the Canadian segment, revenue for the year
was $175.6 million, an increase of
$46.8 million or 36.3% over the
comparable twelve month period. Revenue from MSM was $18.7 million of the increase, while revenue from
the remainder of the segment increased $28.1
million or 22.7%. Revenue for the quarter was $50.3 million, an increase of $8.1 million or 19.1% over the comparable
unaudited three month period.
In the US segment, revenue for the year ended
December 31, 2013 was $183.3 million, an increase of $30.6 million or 20.0% over the comparable twelve
month period. Revenue from MSM was $19.2
million of the increase, while revenue from the remainder of
the segment increased $11.4 million
or 7.8%. Revenue for the quarter was $44.6
million, an increase of $0.7
million or 1.7% over the comparable unaudited three month
period.
Gross margin for the year ended December 31, 2013 increased $10.4 million or 27.8% over the comparable
unaudited twelve month period. MSM contributed $7.0 million of the increase, while gross margin
from the rest of the operations grew $3.4
million or 9.8%. Gross margin for the quarter increased
$1.1 million or 8.6% over the
comparable unaudited three month period.
"Wheels produced solid results in 2013. This
included strong organic growth with positive contributions from our
acquisitions, Wheels MSM and BBL," said Doug Tozer, Wheels Chief Executive Officer. "We
continued to invest in the business to further enhance our service
offerings and sales capabilities. Even with this investment,
adjusted EBITDA for the year increased significantly over the prior
year. We made management changes in the fourth quarter to
streamline our operations and better align Wheels' business units
to support our continued growth."
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,
discontinued operations overhead adjustment 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's 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
Canadian securities laws. 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 services and capital expenditures.
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 detailed under the "RISK FACTORS"
section of the Company's latest Annual Information Form and 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 may 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, power disruptions, transportation
disruptions, damage to equipment, adverse weather conditions or
otherwise, the ability of the Company to obtain equipment,
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 respond to competitive pressures in the marketplace, including
the entry of new competitors, direct marketing efforts by railroads
or marketing efforts of asset-based carriers, the ability of the
Company to successfully protect its data from cyber-attack, the
ability of the Company to maintain or enhance its information
technology systems, fuel shortages or fluctuations in fuel prices,
the ability of the Company to 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 the Company's expectations, and global
economic performance, including the financial condition of its
customers, particularly, in the retail, consumer products and
durable goods sectors.
The Company 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
at www.sedar.com.
About Wheels
Founded in 1988, Wheels is a leading North
American third party logistics (3PL), supply chain logistics
provider. As a non-asset provider, the Company 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 26 offices throughout Canada and the US. Wheels has been named one
of Canada's Best Managed Companies
since 1997, Platinum since 2003. Wheels has been named one of
North America's Top 100 3PL
Companies and one of the Top 100 Food 3PL's.
Neither the TSX Venture Exchange, nor its
Regulation Services Provider accepts responsibility for the
adequacy or accuracy of this release.
SOURCE Wheels Group Inc.