Algoma central corporation reports operating results for the three
and nine months ended september 30, 2018
St. catharines, ontario--(business wire)--algoma central corporation (“algoma” or “the company”) (tsx: alc), a leading provider of marine transportation services, today announced its results for the three and nine months ended september 30, 2018. all amounts reported below are in thousands of canadian dollars, except for per share data and unless otherwise noted. third quarter and year to date 2018 highlights include: a 16% increase in revenue in the third quarter and a 14% increase for the nine months ended september 30, 2018 compared to the same periods in 2017. ebitda increased 8% during the third quarter and 32% for the nine months ended september 30, 2018. net earnings from continuing operations increased 35% for the nine months ended september 30, 2018. this was due to higher operating earnings, including higher earnings from joint ventures and a gain on the disposition of assets within the domestic dry-bulk fleet. for the third quarter of 2018: domestic dry-bulk net earnings increased 8% as a result of improved freight rates. product tanker revenue increased 24% compared to 2017. the segment is experiencing strong customer demand from its major customer. subsequent to the quarter, the strong outlook for volumes and sustained levels led the decision to purchase a seventh product tanker. ocean self-unloaders revenue increased 28% compared to the prior year. this was mainly as a result of the fleet being at full utilization with the return of the algoma integrity to the pool. steps were taken to begin the cancellation of four shipbuilding contracts with a croatian shipyard as a result of delays encountered in the construction of the ships. domestic dry-bulk net earnings increased 8% as a result of improved freight rates. product tanker revenue increased 24% compared to 2017. the segment is experiencing strong customer demand from its major customer. subsequent to the quarter, the strong outlook for volumes and sustained levels led the decision to purchase a seventh product tanker. ocean self-unloaders revenue increased 28% compared to the prior year. this was mainly as a result of the fleet being at full utilization with the return of the algoma integrity to the pool. steps were taken to begin the cancellation of four shipbuilding contracts with a croatian shipyard as a result of delays encountered in the construction of the ships. during the third quarter, a new global short sea joint venture, novaalgoma bulk holdings (“nabh”) was created with the purchase of four deep-sea bulkers. “customer demand is strengthening and we expect this will continue to have positive impacts on daily rates in the domestic dry-bulk segment,” said ken bloch soerensen, president and ceo of algoma. “in order to provide capacity, we are currently reviewing options to replace the cancelled vessels and in the meantime we look forward to the arrival of the algoma conveyer from china in early 2019,” mr. soerensen added. results from continuing operations for the third quarter 2018 and the nine months ended september 30, 2018 compared to the same periods in 2017 were as follows: three months nine months unrealized (loss) gain on foreign currency exchange contracts and cancellation of shipbuilding contracts cash dividends on november 12, 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 december 3, 2018 to shareholders of record on november 19, 2018. investor conference call/webcast the conference call will be held on tuesday november 13th, 2018 at 10:00 am est. participants desiring audio only should dial 1-855-327-6837 or 1-631-891-4304 and are asked to dial in 5 minutes before the conference call begins. a live audio webcast of the conference call, which includes a presentation to investors, will also be available on our website at http://www.algonet.com/investor-relations/. immediately following the formal presentations, algoma executives will be available to answer questions. details of the company’s fiscal 2018 third quarter results and the presentation to investors will be available at http://www.algonet.com/investor-relations/ prior to the conference call/webcast. we are not incorporating information contained on the website in this news release. a replay of the conference call will be available from 1:00 pm et on november 13, 2018, until 11:59 pm et, november 27, 2018. to access the replay, call 1-844-512-2921 or 1-412-317-6671, followed by passcode 10005734. normal course issuer bid during the third quarter of 2018 and during the nine months ended september 30, 2018, 39,300 and 91,700 shares, respectively, were purchased for cancellation. use of non-gaap measures there are measures included in this press release that do not have a standardized meaning under generally accepted accounting principles (gaap). the company includes these measures because it believes certain investors use these measures as a means of assessing financial performance. ebitda is a non-gaap measure that does not have any standardized meaning prescribed by ifrs and may not be comparable to similar measures presented by other companies. please refer to page 1 of the management’s discussions and analysis for the three and nine months ended september 30, 2018 for further information regarding non-gaap measures. 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 and a 50% interest in novaalgoma, which includes a diversified portfolio of dry-bulk fleets operating internationally.
