Contrans Q2 profit soars to $36.8 million thanks to growth, gain on sale of unit

WOODSTOCK, Ont. – Contrans Group Inc. (TSX:CSS) earned a $36.8-million profit in its second quarter, as the trucking company sold its waste collection business and increased earnings at its remaining operations.

The profit amounted to $1.07 per diluted share, up from 24 cents per share or $8.1 million in total in the second quarter of 2013.

Excluding the sale of the waste collection business, Contrans earned $10 million or 29 cents per share from continuing operations for the three months ended June 30, up from $7.4 million or 21 cents per share in a year earlier.

Revenue from continuing operations increased to $153.7 million from $132.6 million.

Woodstock-based Contrans provides trucking services in Canada and parts of the United States.

Last week, the company’s board announced its support of a friendly takeover offer by Montreal-based TransForce (TSX:TFI).

TransForce is offering to pay $495 million or $14.60 per share in cash and assume $85 million of debt to acquire Contrans. In addition, Contrans would pay its shareholders a special dividend of 40 cents per share, with the cash coming from the sale of the waste transportation business.