Boyd Bros. Announces Third Quarter Results; Reports Per Share Earnings of $0.08 for Quarter on Higher Revenues.

Business Editors & Transportation Writers

CLAYTON, Ala.--(BUSINESS WIRE)--Oct. 29, 2001

Boyd Bros. Transportation Inc. (Nasdaq/SmallCap:BOYD) today reported results for the third quarter and nine months ended September 30, 2001. Highlights of the quarter's financial performance included an increase in operating revenues, marking the first upturn in the Company's business since early 2000, and an ongoing turnaround in profits versus the same period last year.

For the quarter ended September 30, 2001, operating revenues increased 4% to $32,457,010 from $31,202,168 last year. The Company reported net income for the third quarter of 2001 of $230,210 or $0.08 per share compared with a net loss of $65,104 or $0.02 per share in the same period last year.

For the first nine months of 2001, operating revenues declined 3% to $94,386,035 versus $97,628,842 in the same period last year. Net income for the first nine months of 2001 was $220,018 or $0.08 per share compared with net income of $374,611 or $0.12 per share in the year-earlier period.

Commenting on the announcement, Gail B. Cooper, President and Chief Executive Officer, said, "We are pleased to report that the Company continued to post profitable operations in the third quarter, an accomplishment that is particularly significant considering the ongoing deterioration we witnessed in the general economy during that time and the added uncertainty created by the terrorist attacks on our nation in September. After seeing pressure on revenues for more than a year, due to soft freight volume and intense competitive conditions, we are gratified that the strategies we have pursued to streamline our operations and enhance our service levels to customers have produced top-line growth, along with our second consecutive quarter of profitable operations. These improved results are a tribute to the leadership and focus of our management team and the dedicated efforts of our drivers and employees throughout the Company."

Cooper noted that, during the third quarter, the Company set aside additional reserves for potentially uncollectible accounts receivable due to the bankruptcy of a major customer operating in the steel industry, which represents one of Boyd Bros.' largest freight categories. This additional specific reserve, together with an additional amount related to another customer that declared bankruptcy earlier this year, totaled approximately $300,000 on a pre-tax basis. Boyd Bros. cannot predict the extent to which these customers may continue to utilize its services in the future, or what portion of its current accounts receivable ultimately may prove to be uncollectible.

"We know that many of the factors that influence our business are beyond our immediate command, so our goal this year has been to improve in the areas over which we have control," she added. "Quite literally, we have examined virtually every process within the Company's operations - from driver training to safety, from systems to billing - in order to identify cost savings or efficiencies that will improve the way we do business and enhance our profit potential. For example, earlier this year we changed the way we recruit and train drivers, shifting our emphasis to hiring more seasoned drivers. This has resulted in a significant improvement in safety trends and, while we have not eliminated accidents or losses, we did see our insurance and claims costs decline in September to their lowest levels in more than a decade. Much of the payoff from similar efforts cannot be so clearly discerned; nevertheless, we believe our operations will benefit going forward from the investments we are making now to streamline our operations, enhance the professionalism of our drivers, and improve our service capabilities."

Concluding, Cooper said the Company remains cautious in its outlook for the near-term, particularly over the next two quarters because of the seasonally slower nature of the winter months ahead. "While it is impossible at this point to gauge the full repercussions of the events of September 11 and thereafter, and how they will affect our customers and markets going forward, we do know they will very likely place additional pressure on an already tenuous industry environment. We believe that, overall, the flatbed segment of trucking has not yet reached bottom and we expect the next several months will remain challenging for us and our competitors, with soft and erratic freight levels and highly competitive conditions. Early indications from our own bookings in October, historically a strong month for Boyd Bros., support this view.

"Consequently, we believe the fourth quarter will at best be a breakeven period for us, which would still result in the Company remaining profitable for the full year in 2001," she continued. "And while we expect to post ongoing improvements in our operations, following on the progress we have reported for the last six months, we will likely begin 2002 with a loss in the first quarter. Of course, we believe that many smaller and less well capitalized competitors will have an even more difficult time confronting challenges ahead and, as a result, we would not be surprised to see a significant number of these firms exit the industry in the first half of 2002. If this occurs as we expect, it would have a positive impact on Boyd Bros. by reducing excess capacity in the segment and helping to bring about a more favorable competitive climate in the second half of next year."

Boyd Bros. Transportation Inc. is one of the largest flatbed trucking companies in the United States. The Company provides transportation services to high-volume, time-sensitive customers, primarily in the steel and building materials industries, and operates throughout most of the continental United States. For more information about the Company, visit Boyd Bros. on the Internet at www.boydbros.com.

Certain of the statements contained in this release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among other things, business conditions and growth in the economy, including the transportation and construction sectors in particular; competitive factors, including price pressures and the ability to recruit and retain qualified drivers; the ability to control internal costs, particularly rising fuel costs that may or may not be passed on to the Company's customers; departures and defaults by owner-operators; the cost of complying with governmental regulations that are applicable to the Company; costs associated with increased insurance and claims expenses; and other risk factors referenced in the Company's periodic filings with the Securities and Exchange Commission.

                    BOYD BROS. TRANSPORTATION INC.
                    Unaudited Financial Highlights

                      Three Months Ended          Nine Months Ended
                         September 30,               September 30,
                   ------------------------   ------------------------
                       2001         2000          2001         2000
                   -----------  -----------   -----------  -----------
Operating revenues $32,457,010  $31,202,168   $94,386,035  $97,628,842
Operating income       980,432      896,131     2,605,551    3,694,896
Pre-tax income
  (loss)               402,016      (72,382)      513,943      805,713
Provision (benefit)
  for income taxes     171,806       (7,278)      293,925      431,102
Net income (loss)     $230,210     $(65,104)     $220,018     $374,611
Net income (loss) per
   share - basic and
   diluted            $   0.08     $  (0.02)     $   0.08     $   0.12
Weighted average
  shares outstanding 2,794,140    3,000,223     2,855,465    3,128,890