Algoma Central Corporation - Operating Results
May 02, 2014
(In thousand of dollars except per share data)
For the Three Months Ended March 31, 2014 and 2013
ALC-T
ST. CATHARINES, ON, May 2, 2014 /CNW/ - The Corporation is reporting first quarter revenues of $51,738 compared to $50,757 for the same period in 2013. Increases in the Product Tanker, Ocean Shipping and Real Estate segments were partially offset by reductions in the Domestic Dry-Bulk segment.
The segment loss after income taxes was $20,311 compared to $26,211 for the first quarter in 2013. The decrease was due primarily to a reduced loss in the Domestic Dry-Bulk segment due to reduced maintenance costs incurred during the winter lay-up period. The Product Tanker and Ocean Shipping segment earnings after income taxes were approximately the same for the two periods. Earnings of the Real Estate segment were down due to increased costs.
Net loss and basic loss per share were $21,866 and $0.56, respectively, compared to $28,635 and $0.74, respectively, for the same period last year. The lower net loss was driven principally by the lower segment loss.
The results from operations are as follows:
| Favourable | |||||||
| 2014 | 2013 | (Unfavourable) | |||||
| Revenues | |||||||
| Domestic Dry-Bulk | $ | 13,798 | $ | 15,081 | $ | (1,283) | |
| Product Tankers | 20,340 | 19,433 | 907 | ||||
| Ocean Shipping | 10,564 | 9,450 | 1,114 | ||||
| Real Estate | 7,036 | 6,793 | 243 | ||||
| $ | 51,738 | $ | 50,757 | $ | 981 | ||
| Operating loss net of income tax | |||||||
| Domestic Dry-Bulk | $ | (25,937) | $ | (31,855) | $ | 5,918 | |
| Product Tankers | 1,734 | 1,442 | 292 | ||||
| Ocean Shipping | 3,684 | 3,785 | (101) | ||||
| Real Estate | 208 | 417 | (209) | ||||
| (20,311) | (26,211) | 5,900 | |||||
| Not specifically identifiable to segments | |||||||
| Net gain on translation of foreign-denominated | |||||||
| monetary assets and liabilities | 720 | 2,086 | (1,366) | ||||
| Interest expense ,net | (3,220) | (2,511) | (709) | ||||
| Interest income | 292 | 144 | 148 | ||||
| Income tax (expense) recovery | 653 | (2,143) | 2,796 | ||||
| $ | (21,866) | $ | (28,635) | $ | 6,769 | ||
| Basic earnings per common share | $ | (0.56) | $ | (0.74) | $ | 0.18 | |
Cash Dividends
The Board of Directors has authorized payment of a quarterly cash dividend to shareholders of $0.07 per common share. The cash dividend is payable on June 2, 2014 to shareholders of record on May 16, 2014.
Annual General Meeting of Shareholders
Algoma will webcast the annual general meeting of shareholders on Friday May 2, 2014 at 11:30 a.m. EST at http://www.newswire.ca/en/webcast/detail/1328061/1467493.
About Algoma Central Corporation
Algoma Central Corporation owns and operates the largest Canadian flag fleet of dry and liquid bulk carriers operating on the Great Lakes - St. Lawrence Waterway, including 18 self-unloading dry-bulk carriers, six gearless dry bulk carriers and seven product tankers. Algoma also has interests in ocean dry-bulk and product tanker vessels operating in international markets. Algoma owns a diversified ship repair and steel fabricating facility active in the Great Lakes and St. Lawrence regions of Canada. In addition, Algoma owns and manages commercial real estate properties in Sault Ste. Marie, St. Catharines and Waterloo, Ontario.
Cautionary Statements
This press release may include forward-looking information within the meaning of applicable securities laws including information concerning the business and future results of Algoma. Forward-looking statements in this press release include statements about the purchase of vessels by Algoma. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by this information. The statements in this press release are made as of the date of this release and are based on current expectations. Algoma undertakes no obligation to update forward-looking information, other than as required by law, or to comment on analyses, expectations, or statements made by third-parties in respect of Algoma, its financial or operating results or its securities. Algoma cautions that all forward-looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward-looking information, and that actual future results could be affected by a number of factors, many of which are beyond Algoma's control, including economic circumstances, technological changes, weather conditions and the material risks and uncertainties identified by Algoma and discussed on pages 14 to 19 of Algoma's Annual Information Form for the year ended December 31, 2013, which is available on SEDAR at www.sedar.com.
SOURCE Algoma Central Corporation
