Algoma Central Corporation Reports Operating Results for the Three and Six Months Ended June 30,
2018
Algoma Central Corporation (“Algoma” or “the Company”) (TSX: ALC), a leading provider of marine transportation services, today
announced its results for the three and six months ended June 30, 2018.
All amounts reported below are in thousands of Canadian dollars, except for per share data and unless otherwise noted. Second
quarter and year to date 2018 highlights include:
- An increase in revenue of $15,295 in the second quarter and an increase of $23,691 for the six months
ended June 30, 2018 compared to the same periods in 2017.
- Net earnings and basic earnings per share from continuing operations for the six months ended June
30, 2018 were $5,303 and $0.14 compared to a loss of $4,048 and $0.10, respectively, during the same period last year. The
increase was due to higher operating earnings including higher earnings from joint ventures.
- For the second quarter of 2018:
- Domestic Dry-Bulk revenues increased 11% and net earnings increased 19%, excluding impacts of
gains and losses on foreign currency contracts, compared to 2017. The segment had strong volumes and a 4% increase in daily
rates.
- Product Tankers revenue increased $864 and net earnings increased by $1,127 compared to 2017. The
segment experienced strong volumes and an increase in operating days.
- Ocean Self-Unloaders net earnings increased 54% compared to the prior year. This was mainly as a
result of the Algoma Integrity returning to full operations early in the quarter.
- Global Short Sea Shipping revenue increased $7,831, resulting in a $3,496 increase in net
earnings. Revenue for NACC increased as a result of the addition of three vessels to the fleet.
“We are very happy with the 2018 second quarter results,” said Ken Bloch Soerensen, President and CEO of Algoma. “Compared to
last year, we experienced improved overall revenues, increased vessel utilization and further growth in the Global Short Sea fleet.
The outlook for the second half of 2018 remains positive. Both the Domestic Dry-Bulk and Product Tanker fleets are fully booked for
the season and we are exploring options to add capacity to the dry-bulk fleet,” Mr. Soerensen added.
“We are experiencing limited impact from the trade tensions,” said Gregg Ruhl, Chief Operating Officer of Algoma. “The Domestic
Dry-Bulk fleet has been successful in securing replacement business to fill available days resulting from diversions of iron ore
shipments to US destinations and we expect these changes to be earnings neutral,” Mr. Ruhl added.
Results from continuing operations for the second quarter 2018 and the six months ended June 30, 2018 compared to the same
periods in 2017 were as follows:
|
|
Three Months |
|
Six Months |
|
|
Ended June 30 |
|
Ended June 30 |
| |
|
|
2018 |
|
|
2017 |
|
2018 |
|
|
2017 |
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Domestic Dry-Bulk |
|
$ |
89,944 |
|
$ |
80,979 |
|
$ 108,145 |
|
$ |
99,380 |
| Product Tankers |
|
|
23,513 |
|
|
22,649 |
|
42,848 |
|
|
34,330 |
| Ocean Self-Unloaders |
|
|
23,097 |
|
|
17,515 |
|
42,001 |
|
|
36,172 |
|
|
|
136,554 |
|
|
121,143 |
|
192,994 |
|
|
169,882 |
| Investment Properties |
|
|
2,501 |
|
|
2,775 |
|
5,804 |
|
|
5,863 |
| Corporate |
|
|
387 |
|
|
229 |
|
1,132 |
|
|
494 |
| |
|
$ |
139,442 |
|
$ |
124,147 |
|
$ 199,930 |
|
$ |
176,239 |
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Six Months |
|
|
Ended June 30 |
|
Ended June 30 |
| |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
2017 |
| Operating Earnings (Loss) Net of Income Tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Domestic Dry-Bulk |
|
$ |
15,126 |
|
$ |
12,761 |
|
$ |
(939) |
|
$ (2,247) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized (loss) gain on foreign currency exchange contracts
|
|
|
(2,454) |
|
|
3,397 |
|
|
1,523 |
|
2,394 |
|
|
|
12,672 |
|
|
16,158 |
|
|
584 |
|
147 |
|
|
|
|
|
|
|
|
|
| Product Tankers |
|
|
1,794 |
|
|
667 |
|
|
2,475 |
|
(1,764) |
| Ocean Self-Unloaders |
|
|
2,802 |
|
|
1,824 |
|
|
4,268 |
|
3,547 |
| Global Short Sea Shipping |
|
|
2,085 |
|
|
390 |
|
|
3,966 |
|
1,056 |
|
|
|
19,353 |
|
|
19,039 |
|
|
11,293 |
|
2,986 |
| Investment Properties |
|
|
91 |
|
|
(1,790) |
|
|
492 |
|
(1,094) |
| Corporate |
|
|
(2,348) |
|
|
(3,374) |
|
|
(4,200) |
|
(5,762) |
| Segment operating earnings (loss) |
|
|
17,096 |
|
|
13,875 |
|
|
7,585 |
|
(3,870) |
|
|
|
|
|
|
|
|
|
| Not specifically identifiable to segments: |
|
|
|
|
|
|
|
|
| Interest expense |
|
|
(2,464) |
|
|
(741) |
|
|
(3,700) |
|
(1,599) |
| Interest income |
|
|
197 |
|
|
201 |
|
|
404 |
|
405 |
| Foreign currency (loss) gain |
|
|
(1,561) |
|
|
1,864 |
|
|
1,164 |
|
914 |
| Income tax recovery (expense) |
|
|
1,177 |
|
|
183 |
|
|
(150) |
|
102 |
|
|
|
|
|
|
|
|
|
| Net earnings (loss) from continuing operations |
|
|
14,445 |
|
|
15,382 |
|
|
5,303 |
|
(4,048) |
|
|
|
|
|
|
|
|
|
| Net earnings from discontinued operations |
|
|
- |
|
|
13,782 |
|
|
- |
|
14,107 |
|
|
|
|
|
|
|
|
|
| Net earnings |
|
$ |
14,445 |
|
$ |
29,164 |
|
$ |
5,303 |
|
$ 10,059 |
|
|
|
|
|
|
|
|
|
| Basic Earnings (Loss) per Share |
|
|
|
|
|
|
|
|
| Continuing operations |
|
$ |
0.38 |
|
$ |
0.40 |
|
$ |
0.14 |
|
$ (0.10) |
| Discontinued operations |
|
|
- |
|
|
0.35 |
|
|
- |
|
0.36 |
| |
|
$ |
0.38 |
|
$ |
0.75 |
|
$ |
0.14 |
|
$ 0.26 |
| Diluted Earnings (Loss) per Share |
|
|
|
|
|
|
|
|
| Continuing operations |
|
$ |
0.36 |
|
$ |
0.37 |
|
$ |
0.14 |
|
$ (0.10) |
| Discontinued operations |
|
|
- |
|
|
0.31 |
|
|
- |
|
0.32 |
| |
|
$ |
0.36 |
|
$ |
0.68 |
|
$ |
0.14 |
|
$ 0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash Dividends
On August 9, 2018 the Company’s Board of Directors authorized payment of a quarterly dividend to shareholders of $0.10 per
common share. The dividend is payable on September 4, 2018 to shareholders of record on August 21, 2018.
Normal Course Issuer Bid
During the second quarter of 2018 and during the six months ended June 30, 2018, 45,800 and 52,400 shares, respectively, were
purchased for cancellation.
About Algoma Central
Algoma Central Corporation is a publicly traded company which operates the largest fleet of dry and liquid bulk carriers on the
Great Lakes - St. Lawrence Waterway, including self-unloading dry-bulk carriers, gearless dry-bulk carriers and product tankers.
Algoma also owns ocean self-unloading dry-bulk vessels operating in international markets. Algoma has expanded into international
short sea markets through it 50% interests in NovaAlgoma Cement Carriers and NovaAlgoma Short Sea Carriers. Algoma Central trades
on the Toronto Stock Exchange under the symbol “ALC”. For more information, please visit www.algonet.com.
Algoma Central Corporation
Ken Bloch Soerensen
President and CEO
+1 905-687-7885
or
Peter D. Winkley, CPA, CA
Chief Financial Officer
+1 905-687-7897
View source version on businesswire.com: https://www.businesswire.com/news/home/20180810005042/en/