Algoma Central Corporation Reports Financial Results for the 2024 First Quarter
Robust performance in product tankers and ocean self-unloader fleets drive strongest first quarter in five years
"Algoma's first quarter results surpassed the past five years," said
Financial Highlights: First Quarter 2024 Compared to First Quarter 2023
-
Net loss decreased 12% to
$17,253 compared to$19,640 in 2023. Basic and diluted loss per share were$0.44 compared to$0.51 . Results for 2023 included a$3,481 after-tax gain on the sale of two vessels in the Product Tankers segment. -
EBITDA for the first three months of
$(861) is near break-even and the best first quarter EBITDA performance ever for the Company. -
Revenue for Product Tankers increased 6% to
$34,046 compared to$32,081 in 2023, driven primarily by a 3% increase in revenue days, largely due to having seven vessels operating at full capacity, coupled with higher freight rates on new vessels. Segment operating earnings increased$2,832 to$3,976 . -
Although Ocean Self-Unloaders segment revenue decreased 3% to
$43,199 compared to$44,385 , operating earnings increased 69% to$8,354 compared to$4,952 in 2023, primarily due to the reduced numbers of vessels on dry-dock this quarter. -
Domestic Dry-Bulk segment revenue decreased 10% to
$31,075 compared to$34,499 in 2023, reflecting a 6% decrease in revenue days. Operating loss increased 6% to$35,613 compared to$33,643 in 2023. -
Global Short Sea Shipping segment equity earnings were$1,832 compared to$1,998 for the prior year. Earnings were impacted by lower rates for the mini-bulker and handy-size fleets and higher off-hire time due to dry-dockings in the handy-size fleet. The decrease was largely offset by increased earnings in the cement fleet.
Consolidated Statement of Earnings
For the three months ended |
|
2024 |
|
|
2023 |
|
||
Revenue |
$ |
109,214 |
|
$ |
111,604 |
|
||
Operating expenses |
|
(108,998 |
) |
|
(117,560 |
) |
||
Selling, general and administrative expenses |
|
(11,641 |
) |
|
(10,387 |
) |
||
Depreciation and amortization |
|
(17,128 |
) |
|
(15,996 |
) |
||
Operating loss |
|
(28,553 |
) |
|
(32,339 |
) |
||
|
|
|
||||||
Interest expense |
|
(4,659 |
) |
|
(5,125 |
) |
||
Interest income |
|
908 |
|
|
965 |
|
||
Gain on sale of assets |
|
364 |
|
|
4,736 |
|
||
Foreign exchange gain |
|
123 |
|
|
370 |
|
||
|
|
(31,817 |
) |
|
(31,393 |
) |
||
|
|
|
||||||
Income tax recovery |
|
11,013 |
|
|
9,464 |
|
||
Net earnings from investments in joint ventures |
|
3,551 |
|
|
2,289 |
|
||
|
|
|
||||||
Net loss |
$ |
(17,253 |
) |
$ |
(19,640 |
) |
||
|
|
|
||||||
Basic loss per share |
$ |
(0.44 |
) |
$ |
(0.51 |
) |
||
Diluted loss per share |
$ |
(0.44 |
) |
$ |
(0.51 |
) |
EBITDA
The Company uses EBITDA as a measure of the cash generating capacity of its businesses. The following table provides a reconciliation of net loss in accordance with GAAP to the non-GAAP EBITDA measure for the three months ended
EBITDA(1) |
|
|
||||||
For the three months ended |
|
2024 |
|
|
2023 |
|
||
Net loss |
$ |
(17,253 |
) |
$ |
(19,640 |
) |
||
Depreciation and amortization |
|
22,333 |
|
|
20,947 |
|
||
Interest and tax recovery |
|
(5,530 |
) |
|
(4,057 |
) |
||
Foreign exchange loss (gain) |
|
(63 |
) |
|
(353 |
) |
||
Net gain on sale of assets |
|
(348 |
) |
|
(4,736 |
) |
||
EBITDA (1) |
$ |
(861 |
) |
$ |
(7,839 |
) |
Select Financial Performance by Business Segment
For the years ended |
|
2024 |
|
|
2023 |
|
||
Domestic Dry-Bulk |
|
|
||||||
Revenue |
$ |
31,075 |
|
$ |
34,499 |
|
||
Operating loss |
|
(35,613 |
) |
|
(33,643 |
) |
||
Product Tankers |
|
|
||||||
Revenue |
|
34,046 |
|
|
32,081 |
|
||
Operating earnings |
|
3,976 |
|
|
1,144 |
|
||
Ocean Self-Unloaders |
|
|
||||||
Revenue |
|
43,199 |
|
|
44,385 |
|
||
Operating earnings |
|
8,354 |
|
|
4,952 |
|
||
Corporate and Other |
|
|
||||||
Revenue |
|
894 |
|
|
639 |
|
||
Operating loss |
|
(5,270 |
) |
|
(4,792 |
) |
The MD&A for the three months ended
2024 Business Outlook(2)
In the Domestic Dry-Bulk segment, we expect a softening in demand for domestic dry-bulk capacity with de-icing salt volumes dropping more than anticipated due to the record mild winter across the
In the Product Tanker segment, we anticipate customer demand to remain steady in 2024 and for fuel distribution patterns within
Internationally, in the Ocean Self-Unloaders segment, volumes are expected to improve modestly for the remainder of the year and vessel utilization is expected to improve in 2024 with substantially fewer dry-dockings compared to 2023. Two out of the three newbuild kamsarmax-based ocean self-unloader orders are scheduled to begin construction this year. In our
Normal Course Issuer Bid
Effective
Cash Dividends
The Company's Board of Directors authorized payment of a quarterly dividend to shareholders of
Notes
(1) Use of Non-GAAP Measures
The Company uses several financial measures to assess its performance including earnings before interest, income taxes, depreciation, and amortization (EBITDA), free cash flow, return on equity, and adjusted performance measures. Some of these measures are not calculated in accordance with Generally Accepted Accounting Principles (GAAP), which are based on International Financial Reporting Standards (IFRS) as issued by the
(2) Forward Looking Statements
Algoma Central Corporation’s public communications often include written or oral forward-looking statements. Statements of this type are included in this document and may be included in other filings with Canadian securities regulators or in other communications. All such statements are made pursuant to the safe harbour provisions of any applicable Canadian securities legislation. Forward-looking statements may involve, but are not limited to, comments with respect to our objectives and priorities for 2024 and beyond, our strategies or future actions, our targets, expectations for our financial condition or share price and the results of or outlook for our operations or for the Canadian,
By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that our assumptions may not be correct and that actual results may differ materially from such predictions, forecasts, conclusions or projections. We caution readers of this document not to place undue reliance on our forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240430139896/en/
President & CEO
905-687-7890
E.V.P. & Chief Financial Officer
905-687-7897
Source: