Vital Logistics Ltd. Ranks No. 232 on the 2015 PROFIT 500
September 17, 2015
– PROFIT magazine unveils 27th annual list of Canada’s Fastest-Growing Companies –
Vancouver, BC (September 17, 2015) Canadian Business and PROFIT today ranked Vital Logistics Ltd. No. 232 on the 27th annual PROFIT 500, the definitive ranking of Canada’s Fastest-Growing Companies. Published in the October issue of Canadian Business and at PROFITguide.com, the PROFIT 500 ranks Canadian businesses by their five-year revenue growth.
Vital Logistics Ltd. made the 2015 PROFIT 500 list with five-year revenue growth of 256%.
“The PROFIT 500 represent the highest tier of entrepreneurialism in Canada,” says James Cowan, Editor-in-chief of PROFIT and Canadian Business. “They should be lauded for the positive economic contributions they’ve made to their communities—and the entire country. They are examples of what can be accomplished with innovation, discipline and determination."
"We wouldn't be here without the support of our customers," says CEO Matt Gruben
Vital Logistics Ltd. is a recognized leader in Freight Brokerage and Freight Forwarding. We provide our clients with a wide range of shipping and support services to ease the stress of their shipping departments. Our unique ability to combine multiple partnerships with first class carriers allows us to provide the service and attention that every shipment demands. This benefits our clients while at the same time ensures that their clients receive 100% satisfaction.
Our experience has uncovered that in order for shipments to be treated with importance, you must be a large corporation moving a large volume of product. At Vital Logistics Ltd., we understand that small and medium sized enterprises also require and are entitled to first-class logistics services. This is why we take pride in providing customers with exceptional service and great rates that help them gain a competitive edge in their market place regardless of their size or shipping needs.
Our high volume discount agreements allow our clients to secure freight pricing that is significantly more aggressive compared with what is typically offered directly by premium carriers. Our customers are not bound to minimum spending thresholds and are always treated with “major account” status.
Vital Logistics Ltd. corporate culture is founded on a commitment to provide a service that is amplified; from pickup to delivery. We monitor each order closely so you do not have to. Our mandate is to find ways to improve our service and attention to clients by partnering with the most reputable carriers in the industry. We keep clients informed of industry trends and new technologies that improve the efficiency of their business for a supply chain and logistical standpoint.
UPS Releases 4Q Results
January 01, 2015
Atlanta, February 03, 2015
Customers Recognize UPS for High Service Levels
Cyber Monday Deliveries up 12%
Fourth Quarter 2014 Adjusted EPS of $1.25
Global 4Q Shipments Rise 8.1%
Expects 2015 Pension and Currency Headwinds of $240M
UPS Projects 2015 Earnings Per Share Growth of 6-to-12%
Reaffirms Long-Term EPS Growth of 9-to-13%
UPS (NYSE: UPS) today announced fourth quarter 2014 adjusted diluted earnings per share of $1.25, flat to the prior-year period. On a GAAP basis, fourth quarter 2014 diluted earnings were $0.49 per share, compared to $1.25 in 2013.
On Jan. 23, the company announced its expected fourth quarter results, which were consistent with today's final announcement. UPS reported that operating results in the U.S. Domestic segment were negatively impacted by higher than expected peak related expenses.
"UPS customers were delighted with the high quality service we delivered during the holiday season," said David Abney, UPS chief executive officer. "However, the financial results were below our expectations.
"As we move into 2015, we will address this disparity with both cost and revenue actions," continued Abney. "We will take actions necessary to improve profitability by increasing operational efficiency and adjusting price where appropriate. Our growth strategy is sound and we reaffirm our long-term target of 9%-to-13% earnings per share growth."
UPS delivered 1.3 billion packages during the fourth quarter, an increase of 8.1% over the same period last year. For calendar year 2014, the company completed delivery of 4.6 billion packages, up 6.8% over 2013.
During peak season 2014, UPS:
Hired 100,000 temporary employees
Delivered 572 million packages worldwide in December
Experienced a 12% increase in both Cyber Monday and Peak Day deliveries, exceeding company projections, and
Peak Day scheduled deliveries exceeded 35 million packages, more than 100% above an average day
As previously reported, fourth quarter GAAP financial results include two special items. First, discount rates used to calculate company-sponsored pension and postretirement liabilities at year-end decreased significantly during 2014. This resulted in a non-cash, mark-to-market, after-tax charge of $670 million. Second, the company recorded an after-tax charge of $22 million relating to a previously announced transfer of certain healthcare liabilities.
For the year ended Dec. 31, UPS generated $3.4 billion in free cash flow, after making after-tax contributions of $800 million to company-sponsored pension plans, as well as $1.5 billion to transfer certain union employees to multiemployer healthcare plans in the second quarter. In addition, the company invested $2.3 billion in capital expenditures during the year.
In 2014, UPS paid dividends of $2.4 billion, an increase of 8.1% per share over the prior year. The company also repurchased more than 26 million shares for approximately $2.7 billion.
U.S. Domestic Package
U.S. Domestic fourth quarter revenue climbed 7.5% to $10 billion. Daily package volume increased 6.6% with Deferred Air and Ground up 11% and 7.1%, respectively.
Fourth quarter adjusted operating profit was $1.1 billion, a 5.3% drop from the prior-year period. Operating expense increased more than $200 million primarily due to higher than anticipated peak related costs. Decreased productivity, higher contract carrier rates as well as overtime and training hours contributed to the excess costs.
Total revenue per package was down 0.8%, as lower fuel surcharges and changes in product mix offset increases in base rates. UPS SurePost product grew 28% in the fourth quarter.
On a reported basis, fourth quarter 2014 operating profit was down 63% to $444 million as a result of the pension mark-to-market charge and the transfer of certain healthcare liabilities.
International revenue, on a currency-neutral basis, increased 5.9% to $3.4 billion on 4.3% growth in daily package volume. Export shipments were up 5.2% per day, driven primarily by 8.5% growth from Europe, offset somewhat by a decline in Asia export volume. Non-U.S. domestic products were up 3.6% with strong growth in Canada, Spain and Mexico.
Underlying business performance showed positive momentum. However, currency fluctuations contributed $40 million in year-over-year comparison headwinds. In addition, one-time items, including a restructuring charge, weighed on results by approximately $30 million. International adjusted operating profit was $536 million, relatively flat with the prior-year.
Export yield contracted 1.7% on a currency-neutral basis, as a result of lower fuel surcharges, product mix and stronger intra-regional shipment growth. Non-U.S. domestic revenue per package increased 0.8% when adjusted for currency.
On a reported basis, operating profit for the fourth quarter declined 38% to $335 million as a result of the pension mark-to-market charge and the transfer of certain healthcare liabilities.
Supply Chain & Freight
Revenue in the segment increased 7.4% to $2.5 billion, driven by growth in Distribution and UPS Freight. Adjusted operating profit increased 4.7% to $179 million as improvements in Distribution and UPS Freight were offset by declines in the Forwarding unit.
Operating profit for Forwarding was lower, as results in North American Air Freight and Ocean were offset by challenges in International Air Freight.
Distribution revenues increased at a mid-teens growth rate, as demand from Retail and Healthcare customers remained strong. Operating profit expanded over the prior year results.
UPS Freight experienced solid revenue growth of 8.6%, primarily driven by LTL tonnage gains of 4.8% and yield improvements. The business unit expanded operating profit and margin over the prior year.
On a reported basis, operating loss for the fourth quarter 2014 was $25 million as a result of the pension mark-to-market charge and the transfer of certain healthcare liabilities.
"This year will be one of continuous improvement and advances in strategic initiatives that have great potential for the company," said Kurt Kuehn, UPS chief financial officer. "E-commerce growth, operations technology implementation, emerging market expansion and industry specific solutions will provide momentum for UPS as we move throughout the year.
"The company expects growth across all business units," Kuehn continued. "We anticipate full-year 2015 diluted earnings per share of $5.05 to $5.30, a 6%-to-12% increase over our 2014 adjusted results."
UPS CEO David Abney and CFO Kurt Kuehn will discuss fourth quarter results with investors and analysts during a conference call at 8:30 a.m. ET, Feb. 3, 2015. That call is open to listeners through a live Webcast. To access the call, go to www.investors.ups.com and click on "Earnings Webcast."
UPS routinely posts investor announcements on its web site - www.investors.ups.com - and encourages those interested in the company to check there frequently.
We supplement the reporting of our financial information determined under generally accepted accounting principles ("GAAP") with certain non-GAAP financial measures, including, as applicable, "as adjusted" operating profit, operating margin, pre-tax income, net income and earnings per share. The equivalent measures determined in accordance with GAAP are also referred to as "reported" or "unadjusted." We believe that these adjusted measures provide meaningful information to assist investors and analysts in understanding our financial results and assessing our prospects for future performance. We believe these adjusted financial measures are important indicators of our recurring operations because they exclude items that may not be indicative of, or are unrelated to, our core operating results, and provide a better baseline for analyzing trends in our underlying businesses. Furthermore, we use these adjusted financial measures to determine awards for our management personnel under our incentive compensation plans.
We supplemented the presentation of our 2014 and 2013 operating profit, operating margin, pre-tax income, net income and earnings per share with similar measures that excluded the impact of certain transactions. In the fourth quarter of 2014, we recorded a $1.062 billion pre-tax charge ($670 million after-tax) related to mark-to-market loss recognized outside of a 10% corridor for company-sponsored pension and postretirement liabilities and a $36 million pre-tax charge ($22 million after-tax) related to the transfer of postretirement obligations to multiemployer healthcare plans for certain union employees (under non-National Master Agreement). In the second quarter of 2014, we recorded a $1.066 billion pre-tax charge ($665 million after-tax) related to the transfer of postretirement benefit obligations to multiemployer healthcare plans for certain union employees (under the Teamsters National Master Agreement). In the first quarter of 2013, we recorded transactions related to our attempted acquisition of TNT Express N.V. These items included the impact of (1) a pre-tax charge for the TNT termination fee and transaction-related costs of $284 million ($177 million after-tax), and (2) a pre-tax currency gain realized upon the liquidation of a foreign subsidiary of $245 million ($213 million after-tax). We believe these adjusted measures provide additional information that better enables shareowners to focus on period-over-period operating performance.
Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for GAAP operating profit, operating margin, net income and earnings per share, which are the most directly comparable GAAP financial measures. These non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the preceding reconciliations to corresponding GAAP financial measures, provide a more complete understanding of our business. We strongly encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.
Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements, including statements regarding the intent, belief or current expectations of UPS and its management regarding the company's strategic directions, prospects and future results, involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, governmental regulations, our competitive environment, negotiation and ratification of labor contracts, strikes, work stoppages and slowdowns, changes in aviation and motor fuel prices, cyclical and seasonal fluctuations in our operating results, and other risks discussed in the company's Form 10-K and other filings with the Securities and Exchange Commission, which discussions are incorporated herein by reference.