TransForce

TransForce Inc.
Public
Traded as TSX: TFI
OTCQX: TFIFF
Industry Transport and Logistics
Founded 1957
Founder Emond brothers
Headquarters Saint-Laurent, Montreal, Canada
Key people
Alain Bédard Chairman, President & CEO
André Bérard Director
Revenue C$3,140.256 mil (2012)Increase17%[1]
SteadyC$154.2 mil (2012)Increase51%[1]
Total assets C$2,114.1 mil (2012)Steady[2]
Total equity C$727.4 mil (2012)Increase6%[1]
Number of employees
21,330 (Dec 2011)
14,700 (June 2011)[3]
Divisions 68
Subsidiaries TST Overland Express
Website www.transforcecompany.com

Transforce is a Canadian transport and logistics company based in Montreal, Quebec. It operates across Canada through 4 business segments, and in parts of the United States through partnerships (one is with Estes Express Lines). It has Canada's largest LTL business,[4] largest trucking fleet[5] and ranked 14th in terms of revenue in 2005 among North American LTL carriers[6] (however more recent lists such as suggest it may be closer to top 5 (2010 1st qtr revenue transforce $466.1 million versus 5th ranked US company $359.9 million[7]). Its trucking fleet consists of 6700 power units and 12000 trailers.[8] Two thirds of business comes from operations in Eastern Canada while the rest is from Western Canada.

The company's main source of growth has been complete takeovers (it holds no stakes in other companies) of smaller trucking companies (35 since 1992) which are then made into subsidiaries, though more recently organic growth contributed to the 53% rise in freight in the first half of 2010.[9] In December 2010 it attempted to enter the US market when it approached Dallas based Dynamex with a $248 million takeover offer. In the 12 months leading up to October 31, 2010 Dynamex made $418 million in revenue (about a quarter as much as Transforce).[10] Even though TransForce cut its trucking fleet by 100 power units in 2010 revenue didn't fall, the result of improved equipment efficiency.[11] The company is currently controlled by the Saputo family (Emanuele (Lino) and Joey are 2 of the company's 8 board members).[12][13] Former Quebec premier Lucien Bouchard is a member of the board of directors, representing the interests of Davies Ward Phillips & Vineberg.[14]

For 2012 all of the revenue growth came from the package and courier segment attributable to newly acquired Dynamex (1q2011) and Loomis Express (2q2011); the existing customer base experienced lower shipping volumes.[1] In 2012 each business unit contributed the following to total revenue (before eliminations): Package and Courier 36.5% (2011 35.3%, 2010 19.2%), Less-Than-Truckload 20.4% (2011 18.4%, 2010 26.2%), Truckload 19.0% (2011 22.7%, 2010 29.6%), Specialized Services 24.0% (2011 23.6%, 2010 25.6%).[15] Top customer's contributed 55% of total revenue between January and June 2011; They are involved in the retail (21%), energy (18%), services (12%), automotive (8%), waste management (6%), metals & mining (6%) and forestry (5%) industries.[3]

History

Business segments and divisions

Part of the company's strategy has been to give subsidiaries (most were at one time independent companies) a certain level of autonomy. That allows each subsidiary to continue to cater to different regional markets, giving the parent company access to more markets. TransForce then uses its influence and cash flow to help increase the capacity of each subsidiary (like it did in 2010 when its purchase of a 52 door cross dock terminal in Calgary tripled the capacity of TST overland and expanded its shipping network).[23] For the 2010 year, overall revenue increased slightly (8.4%) but LTL revenue decreased 5.9% (because of lower prices and the stronger Canadian dollar); the company's takeover of ATS Retail Solutions together with an agreement signed by Canpar with the Ontario government, improved results for the package-courier business.[11]

In 2011 TransForce's adjusted profit (excludes the effects of derivatives and foreign exchange rates) was $102.5 million (up 43%) on revenue of $2,690.53 million (up 34%, for the 4q revenue up 46%, profit up 63%).[15][24] Newly acquired Dynamex and Loomis Express contributed revenues of $202 million for Transforce in 2011. They accounted for virtually all of the change in fourth quarter sales and $608 million of the $688 million increase over the year.

References

  1. 1 2 3 4 "TransForce Q4 ending December 31, 2012" (PDF).
  2. "TransForce Inc. company snapshot". FPinfomart.ca. Retrieved 2010-05-01.
  3. 1 2 "TransForce Inc 2011 Second Quarter Report" (PDF). 2011-08-02.
  4. "transforce in buying mood". 2009-09-10.
  5. "transforce expands its waste section". todaystrucking.com. 2010-03-02.
  6. "top 50 trucking companies". 2007-01-04.
  7. "Arkansas Best Widens 1st quarter loss". 2010-04-26.
  8. "transforce profile". ft.com. Retrieved 2010-04-26.
  9. "TransCore’s freight index continues to rise above 2009". 2010-08-20.
  10. 1 2 "TransForce makes move into U.S. with bid for Dynamex". 2010-12-15.
  11. 1 2 "TransForce 2010 Results". 2011-02-25.
  12. "transforce operations look stable". Montreal Gazette. 2010-02-26.
  13. "headwinds for transforce". 2008-05-18.
  14. "Transorce Inc. Board of Directors". Retrieved 2011-02-26.
  15. 1 2 "TransForce Fourth Quarter and Annual Results". 2012-02-29.
  16. "renewal annual information form" (PDF). 2007.
  17. "R&G Ellis". 2008-10-23.
  18. "OSC". 2002-10-31.
  19. "trucking mergers and acquisitions in Canada and the US". 2005-06-22.
  20. "transforce mergers and acquisitions". Retrieved 2010-04-26.
  21. "TransForce gets richer; buys Concord". August 4, 2011.
  22. "COMPETITION WATCH: TransForce acquires I.E. Miller Services". November 11, 2011.
  23. "TransForce acquires new trucking terminal in Calgary, looks to expand in West". 2010-07-07.
  24. "Transforce Inc. Management Discussion and Analysis Third Quarter 2011" (PDF). November 1, 2011.
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