- Revenue before fuel surcharge from continuing operations up 18% to $971.1 million

- Operating income of $88.0 million, up 9% from $80.4 million last year

- Adjusted net income from continuing operations(i) of $60.6 million, or $0.60 per diluted share(i), versus $58.1 million last year

- Repurchase of nearly 2.6 million common shares for $62.0 million during the third quarter

(i) This is a non-IFRS measure. For a reconciliation, please refer to the "Non-IFRS Measures" section below.

/EINPresswire.com/ -- MONTREAL, QUEBEC -- (Marketwired) -- 10/22/15 -- TransForce Inc. (TSX: TFI)(OTCQX: TFIFF), a North American leader in the transportation and logistics industry, today announced its results for the third quarter ended September 30, 2015. TransForce is ceasing its U.S. rig moving operations and results for these activities are accordingly presented as discontinued operation in the Company's financial statements. Data for corresponding periods of the previous year have been restated.

"TransForce's relentless focus on high-return activities produced strong results. We recorded solid organic growth in the Waste Management and Logistics segments, while the acquisition of Contrans lifted revenue and operating income in the Truckload ("TL") segment. Certain economic challenges affected business activity in the Package and Courier ("P&C") and Less-than-Truckload ("LTL") segments whereas TL divisions servicing the oil and gas industry experienced another difficult quarter due to difficult market conditions. That persistent weakness led to the decision to cease our residual U.S. rig moving business. In keeping with TransForce's operating principles, remaining assets will be sold or redeployed to higher-return activities. This disciplined capital allocation and constant emphasis on maximizing free cash flow generation attest to our fundamental commitment of enhancing shareholder value," said Alain Bedard, Chairman, President and Chief Executive Officer of TransForce.

----------------------------------------------------------------------------
                                  Quarters ended Sept.     Nine months ended
Financial highlights                                30              Sept. 30
(in millions of dollars, except
 per share data)                       2015       2014       2015       2014
----------------------------------------------------------------------------
Total revenue from continuing
 operations                         1,067.5      948.2    3,157.9    2,546.4
Revenue before fuel surcharge
 from continuing operations           971.1      823.8    2,846.9    2,221.4
Operating income from continuing
 operations(1)                         88.0       80.4      245.2      192.4
Net cash from continuing
 operations                           102.9      104.9      261.0      174.6
Free cash flow from continuing
 operations(2, 3)                      60.7      101.7      185.9      183.2
Adjusted net income from
 continuing operations(4)              60.6       58.1      170.2      135.6
  Per share - diluted(5) ($)           0.60       0.58       1.65       1.35
Net income from continuing
 operations                            43.0       38.6      130.2      104.5
  Per share - diluted ($)              0.43       0.38       1.27       1.04
Net income                             41.6       41.5      119.8       84.8
  Per share - diluted ($)              0.41       0.41       1.16       0.84
Weighted average shares
 outstanding ('000s)                 99,209     98,627    101,016     98,438
----------------------------------------------------------------------------

(1)  Earnings before finance income and costs, and income taxes.
(2)  This is a non-IFRS measure. For a reconciliation, please refer to the
     "Non-IFRS Measures" section below.
(3)  Net cash from continuing operations, less additions to property and
     equipment, plus proceeds from sale of property and equipment and assets
     held for sale.
(4)  Excluding amortization of intangible assets related to acquisitions,
     net changes in the fair value of derivatives, net foreign exchange gain
     or loss, net income or loss from discontinued operation and items not
     in the Company's normal business, net of tax.
(5)  Adjusted net income from continuing operations divided by the weighted
     average number of diluted common shares outstanding.

THIRD-QUARTER RESULTS

Total revenue from continuing operations reached $1.07 billion, up 13% over last year. Net of fuel surcharge, revenue from continuing operations increased 18% to $971.1 million. This increase reflects the acquisitions completed in the previous twelve months, as well as the effect of local currency appreciation on US-dollar denominated revenue. Before fuel surcharge and acquisitions, revenue was essentially stable, as lower P&C and LTL volume and reduced activity in TL divisions servicing the oil and gas industry was offset by organic growth in the Waste Management and Logistics segments.

Operating income from continuing operations amounted to $88.0 million, or 9.1% of revenue before fuel surcharge, up 9% from $80.4 million, or 9.8% of revenue before fuel surcharge, a year earlier. The increase in operating income reflects the contribution from acquisitions and the effect of local currency appreciation on US-dollar denominated operating income, partially offset by lower gains on the disposition of property and equipment compared with last year and lower volume for existing operations.

Net income from continuing operations amounted to $43.0 million, or $0.43 per diluted share, versus $38.6 million, or $0.38 per diluted share, a year ago. Adjusted net income from continuing operations, which excludes amortization of intangible assets related to acquisitions, net changes in the fair value of derivatives, net foreign exchange gain or loss, and items not in the Company's normal business, net of tax, reached $60.6 million, or $0.60 per diluted share, up from $58.1 million last year, or $0.58 per diluted share. Including the loss from discontinued operation, net income stood at $41.6 million, or $0.41 per diluted share, versus $41.5 million last year, or $0.41 per diluted share.

Net cash from continuing operations stood at $102.9 million, while free cash flow from continuing operations amounted to $60.7 million, or $0.61 per share, in the third quarter of 2015. The discontinued operation provided a further free cash flow of $19.7 million resulting from the ongoing sale of excess assets. This free cash flow was returned to shareholders through the repurchase of $62.0 million in common shares and dividend payments of $17.1 million during the third quarter.

NINE-MONTH RESULTS

For the first nine months of 2015, total revenue from continuing operations amounted to $3.16 billion, up 24% from $2.55 billion a year earlier. Net of fuel surcharge, revenue from continuing operations rose 28% to $2.85 billion. Operating income from continuing operations increased 27% to $245.2 million, or 8.6% of revenue before fuel surcharge, versus $192.4 million, or 8.7% of revenue before fuel surcharge, last year. Net income from continuing operations reached $130.2 million, or $1.27 per diluted share, up from $104.5 million, or $1.04 per share, a year ago. Adjusted net income from continuing operations stood at $170.2 million, or $1.65 per diluted share, versus $135.6 million, or $1.35 per diluted share, last year. Including the loss from discontinued operation, net income was $119.8 million, or $1.16 per diluted share, compared with $84.8 million, or $0.84 per diluted share, in the previous year. TransForce generated free cash flow from continuing operations of $185.9 million in the first nine months of 2015, equivalent to $1.84 per share.

SEGMENTED RESULTS FROM CONTINUING OPERATIONS

----------------------------------------------------------------------------
(in millions of                                           Nine months ended
 dollars)              Quarters ended Sept. 30                     Sept. 30
                           2015           2014          2015           2014
----------------------------------------------------------------------------
                              $              $             $              $
Revenue(i)
  Package and
   Courier                318.2          296.9         909.7          862.0
  Less-Than-
   Truckload              192.1          197.8         573.5          550.5
  Truckload               362.0          249.1       1,070.5          596.3
  Waste
   Management              57.9           54.4         154.8          137.5
  Logistics                58.9           40.8         190.0          122.3
  Eliminations            (17.9)         (15.2)        (51.6)         (47.3)
----------------------------------------------------------------------------
Total                     971.1          823.8       2,846.9        2,221.4
----------------------------------------------------------------------------

                           % of           % of          % of           % of
                      $ Rev.(i)      $ Rev.(i)     $ Rev.(i)      $ Rev.(i)
Operating
 Income (Loss)
  Package and
   Courier         22.4     7.0   24.4     8.2  63.7     7.0   64.7     7.5
  Less-Than-
   Truckload       12.2     6.3   21.8    11.0  35.0     6.1   46.3     8.4
  Truckload        37.3    10.3   26.2    10.5 104.0     9.7   58.1     9.7
  Waste
   Management      15.3    26.4   11.8    21.6  34.7    22.4   30.6    22.2
  Logistics         6.0    10.1    3.7     9.0  22.6    11.9   12.6    10.3
  Corporate        (5.1)          (7.4)        (14.8)         (19.9)
----------------------------------------------------------------------------
Total              88.0     9.1   80.4     9.8 245.2     8.6  192.4     8.7
----------------------------------------------------------------------------

Note: due to rounding, totals may differ slightly from the sum.
(i) Revenue before fuel surcharge

OUTLOOK

"As the North American economic landscape remains mostly unchanged, we continue to expect organic growth to be restrained in TransForce's main operating markets. As such, adjustments to our 2015 anticipated results strictly reflect the exclusion of the previous negative contribution from discontinued operation. We expect continuing operations to generate total revenue of approximately $4.3 billion, earnings before interest, income tax, depreciation and amortization ("EBITDA") from continuing operations of between $520 million and $540 million (previously $510 million and $530 million), and basic adjusted earnings per share ("EPS") from continuing operations in the range of $2.07-$2.22 (previously $1.97-$2.12). TransForce remains focussed on maximizing free cash flow generation and we expect a total free cash flow of approximately $300 million, consisting of $250 million from continuing operations and $50 million from discontinued operation. Our decentralized structure provides our managers with the ability to rapidly adapt supply to demand and to deploy resources in high-return activities," concluded Mr. Bedard.

CONFERENCE CALL

TransForce will hold a conference call for analysts and portfolio managers on Friday, October 23, 2015 at 9:00 a.m. Eastern Time, to discuss these results. Business media are also invited to listen to the call. Interested parties can join the call by dialling 1-877-223-4471. A recording of the call will be available until midnight, October 30, 2015, by dialling 1-800-585-8367 or 416-621-4642 and entering passcode 7218057.

ABOUT TRANSFORCE

TransForce Inc. is a North American leader in the transportation and logistics industry operating across Canada and the United States through its subsidiaries. TransForce creates value for shareholders by identifying strategic acquisitions and managing a growing network of wholly-owned operating subsidiaries. Under the TransForce umbrella, companies benefit from corporate financial and operational resources to build their businesses and increase their efficiency. TransForce companies service the following segments:

--  Package and Courier;
--  Less-Than-Truckload;
--  Truckload;
--  Waste Management;
--  Logistics and Other Services.

TransForce Inc. is publicly traded on the Toronto Stock Exchange (TSX: TFI) and the OTCQX marketplace in the U.S. (OTCQX: TFIFF). For more information, visit http://www.transforcecompany.com.

FORWARD-LOOKING STATEMENTS

Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of TransForce. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for TransForce's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.

NON-IFRS MEASURES

Adjusted net income, adjusted earnings per share, free cash flow from continuing operations and free cash flow from continuing operations per share are financial measures not prescribed by IFRS and are not likely to be comparable to similar measures presented by other issuers. Management considers these to be useful information to assist investors in evaluating the Company's profitability, liquidity and ability to generate funds to finance its operations. These measures do not have any standardize meaning under IFRS and could be calculated differently by other companies. These measures should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS.

----------------------------------------------------------------------------
----------------------------------------------------------------------------
Adjusted net income from continuing      Quarters ended   Nine months ended
 operations                                    Sept. 30            Sept. 30
(unaudited, in thousands of dollars,
 except per share data)                  2015      2014       2015     2014
----------------------------------------------------------------------------
Net income                             41,630    41,548    119,791   84,751
Amortization of intangible assets
 related to acquisitions, net of tax    8,076     7,541     23,648   17,674
Net change in fair value of
 derivatives, net of tax                8,649        (8)    13,402    1,618
Net foreign exchange (gain) loss,
 net of tax                            (1,202)    4,581        542    5,183
Accelerated accretion expense on
 conversion of debentures, net of
 tax                                        -     2,931          -    7,018
Reclassification to income of
 accumulated unrealized gain on
 investment in equity securities,
 net of tax                                 -         -          -   (5,420)
Transaction costs on business
 combinations, net of tax                   -     4,502          -    5,030
Tax on multi-jurisdiction
 distributions                          2,012         -      2,435        -
Discontinued operation, net of tax      1,391    (2,993)    10,381   19,734
----------------------------------------------------------------------------
Adjusted net income from continuing
 operations                            60,556    58,102    170,199  135,588
----------------------------------------------------------------------------
Adjusted EPS from continuing
 operations - basic                      0.61      0.59       1.68     1.38
Adjusted EPS from continuing
 operations - diluted                    0.60      0.58       1.65     1.35
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
----------------------------------------------------------------------------
Free cash flow from continuing           Quarters ended   Nine months ended
 operations                                    Sept. 30            Sept. 30
(unaudited, in thousands of dollars,
 except per share data)                  2015      2014      2015      2014
----------------------------------------------------------------------------
Net cash from continuing operations   102,900   104,872   260,962   174,624
Additions to property and
 equipment(1)                         (54,081)  (22,422) (147,649)  (67,466)
Proceeds from sale of property and
 equipment                             11,906    19,205    52,069    76,003
Proceeds from sale of assets held
 for sale                                   -         -    20,557         -
----------------------------------------------------------------------------
Free cash flow from continuing
 operations                            60,725   101,655   185,939   183,161
----------------------------------------------------------------------------
Free cash flow from continuing
 operations per share(2)                 0.61      1.03      1.84      1.86
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(1)  2014 figures have been restated to include additions that did not
     affect cash.
(2)  Free cash flow from continuing operations divided by the weighted
     average number of common shares outstanding.

Note to readers: Consolidated financial statements and Management's Discussion & Analysis are available on TransForce's website at www.transforcecompany.com.

Contacts:
Investors:
Alain Bedard
Chairman, President and CEO
TransForce Inc.
(647) 729-4079
abedard@transforcecompany.com

Media:
Rick Leckner
MaisonBrison Communications
(514) 731-0000
rickl@maisonbrison.com

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