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 months ended March 31, 2018.
All amounts reported below are in thousands of Canadian dollars, except for per share data and unless otherwise noted. First quarter 2018 highlights include:
- A 61% reduction in net loss for the first quarter to $7,453 compared to a net loss in the first quarter of 2017 of $19,105. Results from the first quarter typically reflect a loss due to the closing of the canal system and the winter weather conditions on the Great Lakes – St. Lawrence Waterway.
- The Domestic Dry-Bulk segment loss of $10,400 in the first quarter of 2018 compared to the loss of $16,011 in the prior year, was due primarily to a foreign currency gain in 2018.
- Revenue for Product Tankers was up 65% and earnings were up $3,112 due to higher demand from our major customer.
- Joint venture earnings increased by $2,087 of which $1,215 is in Global Short Sea earnings.
- Re-organization of the NovaAlgoma Short Sea Carrier fleet resulted in an expansion of the fleet from 15 vessels to 20 vessels.
- Two new Equinox class vessels, the Algoma Sault and the Algoma Innovator arrived in Canada in the first quarter of 2018 and began operations at the end of March.
- Reached an agreement with the shipyard in Croatia, receiving significant discounts on the balance outstanding on remaining vessels in exchange for extending delivery deadlines.
“We are very pleased with the 2018 first quarter results. We saw strong revenues, a significant reduction in our net loss compared to last year and a continuation of tight cost management,” said Ken Bloch Soerensen, President and CEO of Algoma. “We are optimistic about 2018 as we see strong demand in Product Tankers and recent contract renewals in Domestic Dry-Bulk, with improved rates and longer terms,” Mr. Soerensen added.
Net loss and basic loss per share from continuing operations for the 2018 first quarter was $7,453 and $0.19, respectively, compared to a loss of $19,431 and $0.50, respectively for the same period last year.
Results from continuing operations for three months ended March 31, 2018 and 2017 are as follows:
|Ended March 31|
|Ended March 31|
|Operating (loss) earnings net of income tax|
|Unrealized loss of foreign currency exchange contracts||4,800||(1,003||)|
|Global Short Sea Shipping||1,881||666|
|Not specifically identifiable to segments:|
|Foreign currency gain (loss)||2,725||(950||)|
|Income tax expense||(1,326||)||(82||)|
|Net loss from continuing operations||(7,453||)||(19,431||)|
|Net earnings from discontinued operations||-||326|
|Basic and Diluted (Loss) Earnings per Share|
The board of directors declared a dividend of $0.10 per common share to shareholders. The cash dividend will paid on June 1, 2018 to shareholders of record on May 18, 2018.
Normal Course Issuer Bid
In the first quarter of 2018, the Company announced the launch of a Normal Course Issuer Bid. Between January 24, 2018 and May 3, 2018 Algoma acquired 28,400 shares at an average price of 14.75.
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.