Boyd Bros. Reports Third Quarter Results.

Business Editors

CLAYTON, Ala.--(BUSINESS WIRE)--Oct. 30, 2000

Boyd Bros. Transportation Inc. (Nasdaq/NM: BOYD) today reported financial results for the third quarter and nine months ended September 30, 2000.

For the quarter ended September 30, 2000, operating revenues fell 12% to $31,202,168 from $35,475,470 last year, reflecting primarily soft freight market conditions, a reduction in the number of owner/operators in its fleet, particularly at its Welborn Transport subsidiary, as well as the Company's recent decision to restructure the logistics and specialized operations of Welborn. This decline in revenues, combined with higher operating costs, particularly fuel, resulted in a net loss for the third quarter of 2000 totaling $65,104 or $0.02 per share. In the third quarter last year, Boyd Bros. reported net income in the same period last year of $982,034 or $0.28 per share.

For the nine-month period ended September 30, 2000, operating revenues declined 1% to $97,628,842 from $98,760,593 last year. Net earnings for the first nine months of 2000 fell 88% to $374,611 or $0.13 per share from $3,058,904 or $0.86 per share in the year-earlier period.

Commenting on the announcement, Gail B. Cooper, President and Chief Executive Officer, said, "We have seen increasing weakness across our freight markets over the past few months, particularly for steel shipments, which is one of our largest markets this time of year. This trend has reduced the number of average loads per week we recorded in the third quarter, the average revenue per load, and our revenue per truck. It also contributed to higher deadhead mileage during the quarter."

Cooper also pointed out that as higher fuel costs and soft freight market conditions reduce the profitability of owner/operators, Boyd Bros. has continued to see a decline in its owner/operator fleet as these independent operators leave the Company. This has reduced the number of available trucks, particularly at the Company's Welborn division, which in turn has had a significant direct impact on Boyd Bros.' revenues. Indirectly, as Boyd Bros. continues to absorb power units into its company-owned fleet with the departure of owner/operators, the Company's operating costs have increased because fuel, taxes and licenses, operating supplies and depreciation - previously incurred by the owner/operators - becomes a Company expense.

Fuel cost, the Company's largest expense category outside of driver salaries and owner/operator costs, jumped 24% during the third quarter versus the same period last year and was up 9% from the second quarter of this year. Year to date, fuel was 28% higher than the same period last year on freight volume that was essentially flat through the first nine months of this year. This single factor has translated into a 240 basis point reduction in the Company's operating ratio, representing a year-over-year swing of $2.3 million in pre-tax profits for the nine-month period.

Concluding, Cooper added: "We are encouraged by the fact that the number of owner/operators at our Welborn division appears to be stabilizing, and the new leadership we have put into place there has begun to implement changes that we believe will benefit the division's operations over time. In the Boyd Bros. division, we also have begun to implement a program to reduce operating costs in non-driver related areas, and we are implementing fuel surcharges and fuel efficiency programs to address rising diesel fuel costs, even though we recognize that fuel costs remain largely beyond our control. As we look ahead to the next few quarters, however, which typically constitute the slowest season of year for us, we believe challenging revenue and cost conditions will continue to pressure our earnings at least through the early part of 2001."

During the third quarter of 2000, the Company's operating ratio was 97.1% compared with 93.7% in the same period last year. The decline in the Company's operating ratio for the period reflected higher fuel costs and reduced fleet efficiency, net of higher gains on the disposition of power equipment. For the first nine months of 2000, the Company's operating ratio was 96.2% compared with 93.2% a year ago.

Statements in this release that are not strictly historical are forward-looking and are based upon current expectations. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. These risks include the availability of qualified drivers, fluctuations in fuel prices, increased interest rates and adverse safety experience, all of which may have a significant effect on the Company's operations and profitability. In a highly competitive business environment, there can be no assurance that the Company's strategies will successfully improve future operating profitability.

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 Boyd Bros., go to at www.boydbros.com.

                    BOYD BROS. TRANSPORTATION INC.
                    Unaudited Financial Highlights
               (In thousands, except per share amounts)

                       Three Months Ended         Nine Months Ended
                          September 30,             September 30,
                    ------------------------  ------------------------
                        2000         1999         2000        1999
                    -----------  -----------  -----------  -----------
Operating revenues  $31,202,168  $35,475,470  $97,628,842  $98,760,593
Operating income        896,131    2,241,829    3,694,896    6,704,623
Pre-tax (loss)
 income                 (72,382)   1,641,627      805,713    5,160,756
(Benefit)provision
 for income taxes        (7,278)     659,593      431,102    2,101,852
Net (loss) income      $(65,104)    $982,034     $374,611   $3,058,904
Net (loss)income
 per share - basic
 and diluted             $(0.02)       $0.28        $0.13        $0.86
Weighted average
 shares outstanding   2,997,975    3,522,757    2,800,211    3,552,829