Algoma central corporation reports operating results for the year
ended december 31, 2017
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 year ended december 31, 2017. all amounts reported below are in thousands of canadian dollars, except for per share data and unless otherwise noted. fiscal 2017 highlights include: consolidated revenue for 2017 was $451,050 compared to the $391,406 reported for 2016. revenue increased in the domestic dry-bulk and product tanker segments as a result of an increase in volume in the majority of sectors and higher customer demand. ocean self-unloaders revenue increased as the algoma integrity rejoined the pool in 2017 after two years in domestic service. the global short sea shipping segment generated revenue of $222,794 compared to $17,983 in 2016. the company has a 50% interest in two joint ventures and revenue from the global short sea shipping segment is not included in the consolidated revenue figure. net earnings of $56,195 and earnings per share of $1.44, increases of 69% and 67% respectively compared to 2016. established a second joint venture, novaalgoma short sea carriers, with nova marine carriers, creating increased presence in international markets. sold seven of the remaining properties held for sale from the discontinued real estate segment for a total pre-tax gain of $28,857. two new equinox class vessels joined the domestic fleet; the algoma niagara, the first self-unloader to be delivered in the class and the algoma strongfield which joined her equinox class gearless sister ships. acquired two river-class vessels from american steamship company, expanding the domestic fleet and capacity. on december 15, 2017 the company announced that it had taken ownership of the algoma innovator from the 3 maj shipyard in croatia. the vessel is the first of the company’s equinox class 650’ self-unloading dry-bulk freighters. subsequent to the year-end, on february 5, 2018, the company took delivery of the algoma sault from the yangzijiang shipyard in china. both vessels are scheduled to join operations for the upcoming navigation season. “fiscal 2017 was a year of growth, and this was made possible by our dedicated employees and our loyal customers,” said ken bloch soerensen, president and ceo of algoma. “we achieved profitable growth under changing market conditions and advanced further into global short sea shipping,” mr. soerensen added. net earnings from continuing operations, which excludes income from discontinued real estate operations, was $32,367 in 2017 compared to $10,596 for 2016. earnings for both years are affected by certain specific transactions and events, as follows: earnings for 2016 included gains of $26,387 related to the cancellation of shipbuilding contracts and the refund of progress payments made on those contracts. the refunds and related interest were collected in full in 2016. earnings for fiscal 2017 reflect a foreign currency exchange gain of $683 compared to a loss of $7,536 in 2016. the loss in 2016 was due to marking-to-market certain forward foreign exchange contracts that became ineffective as hedges for accounting purposes during the fourth quarter of that year. earnings for fiscal 2017 were not subject to any impairment expenses, which in 2016 totalled $42,661. this related to impairment of the carrying value of the domestic dry-bulk and product tanker fleets. net earnings from continuing operations excluding the specific transactions mentioned above for 2017 was $31,774 compared to $29,867 for 2016. results from continuing operations for the fourth quarter and for fiscal 2017 were as follows: domestic dry-bulk ocean self-unloaders corporate not specifically identifiable to segments: cash dividends the board of directors declared a dividend of $0.09 per common share to shareholders. the cash dividend was paid on march 1, 2018 to shareholders of record on february 15, 2018. normal course issuer bid on january 24th, the company announced the launch of a normal course issuer bid. further details of this bid are contained in the 2018 information circular. 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.
