Home » Wheels Group Announces 4th Quarter and Year End 2012 Results

Wheels Group Announces 4th Quarter and Year End 2012 Results

fleetnewsdaily | April 16, 2013

Financial Results Capsule Summary: Revenue up 5.7%, Gross Margin up 20.8%, EBITDA up 13.5% in Shortened 11-Month Period.

Wheels Group Inc. (“Wheels” or the “Company”) (TSXV: WGI) has announced its results for the fourth quarter and year ended December 31, 2012.

As part of an internal corporate reorganization, the Company changed its fiscal year end to December 31 from January 31. This change was made in order to simplify and streamline financial reporting and tax planning. As a result of this change in fiscal year end, the current reporting periods addressed are the periods of two months and eleven months ended December 31, 2012, compared to the prior year reporting periods of three and twelve months ended January 31, 2012. However, to assist in assessing the Company’s results, comparison has been provided with unaudited figures for the two months and eleven months ended December 31, 2011, where appropriate.

Revenue for the eleven months ended December 31, 2012 was $260.0 million, an increase of $14.1 million or 5.7% over the $245.9 million reported in the prior twelve months ended January 31, 2012. Revenue for the eleven months ended December 31, 2012 increased $34.6 million, or 15.3%, over the comparable unaudited eleven month period ended December 31, 2011, consisting of $25.1 million in revenue from Logistics and MSM, as well as a $9.5 million or 4.2% increase in revenue from existing customers and new customers from the nonMSM/Logistic operations of the Company (“Existing & New Customers”).

In the Canadian segment, revenue for the eleven months ended December 31, 2012 was $119.3 million, an increase of $24.9 million or 26.4%, over the comparable eleven month period ended December 31, 2011. Revenue from Logistics and MSM contributed $19.2 million, while revenue increased $5.7 million, or 6.0%, from Existing & New Customers. In the US segment,
revenue for the eleven months ended December 31, 2012 increased $9.4 million or 7.1% to $141.6 million over the comparable eleven month period ended December 31, 2011. Revenue from MSM contributed $5.8 million while revenue from Existing & New Customers grew $3.6 million or 2.7%.

Consolidated gross margin for the eleven months ended December 31, 2012 increased $6.0 million or 20.8% to $34.7 million compared to the twelve months ended January 31, 2012. Gross margin for the eleven months ended December 31, 2012 increased $8.7 million or 33.7% over the comparable eleven month period ended December 31, 2011. Logistics and MSM contributed $7.9 million while gross margin grew 3.3% from Existing and New Customers.

Adjusted EBITDA for the eleven months ended December 31, 2012 increased 13.5% to $7.3 million compared to$6.4 million for the twelve months ended January 31, 2012, primarily due to the increase in gross margin partially offset by increased investment in acquisition, sales and business development functions to support strategic growth plans.

“2012 was a year of significant milestones for the Company,” said Doug Tozer, Chief Executive Officer of Wheels. Mr. Tozer added, “as Wheels marked its 25th year of operations and first year as a public company, we integrated two acquisitions, strengthened our senior leadership team with key hires and made significant investments in sales and business development in both Canada and the US. The Company demonstrated solid growth in 2012 despite a shorter reporting period, with MSM and Logistics contributing positively to our results. While general economic conditions remain uncertain, the Company continued to see signs of recovery in the first quarter. Further benefits from our acquisitions combined with investments made in 2012 position Wheels well for double
digit revenue growth in 2013.”

About Wheels
Founded in 1988, Wheels is a leading North American third party logistics (3PL) supply chain logistics provider.
As a non-asset provider, the Company develops advanced supply chain solutions delivered through its qualified
partner network of over 6,000 truck, rail, air and ocean carriers. Wheels serves consumer goods, food and beverage, manufacturing and retail clients through 26 offices throughout the US and Canada. Wheels has been named one of Canada’s 50 Best Managed Companies since 1997, Platinum since 2003. Wheels has been named one of North America’s Top 100 3PL Companies, one of the Top 100 Food 3PL’s and one of the Top Five IMC’s (intermodal marketing companies).