Contrans Q3 profit shrinks to $8.1M; revenue grows to $153.3 million

WOODSTOCK, Ont. – Trucking services company Contrans Group Inc. (TSX:CSS) reported Monday a third-quarter profit of $8.1 million, down from $9.6 million a year ago, due in large part to the sale of its garbage collection business.

The company, which agreed in July to be bought by Montreal-based TransForce Inc. (TSX:TFI), said Monday the profit amounted to 24 cents per share for the quarter ended Sept. 30 compared with 28 cents per share year ago.

Revenue rose to $153.3 million from $140.5 million.

Contrans sold its garbage collection business to GFL Environmental Inc. earlier this year for $72 million.

From continuing operations, Contrans said it earned $8.1 million or 24 cents per share for its latest quarter, down from $8.7 million or 26 cents per share a year ago.

“Demand for truckload transportation services was strong in the third quarter,” chairman and CEO Stan Dunford said Monday in a statement accompanying the results. “This resulted in an increase in revenue over the third quarter of 2013 and contributed to improved asset utilization.”

Dunford reiterated that the Contrans board continues to support the takeover bid from TransForce.

TransForce has offered to pay $495 million or $14.60 per share in cash and assume $85 million of debt to acquire Contrans.

In addition, Contrans would pay its shareholders a special dividend of 40 cents per share, with the cash coming from the sale of the garbage collection business.