Boyd Bros. Transportation Reports Fourth Quarter Results, Returning to Profitable Operations for Full Year 2002.Business Editors CLAYTON, Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--Feb. 4, 2003 Boyd Bros BROS Brothers BROS Benefits and Retirement Operations Section (King County, Washington) BROS Barnes and Richmond Operatic Society (London, UK) . Transportation Inc. (NASDAQ/SmallCap: BOYD) today reported financial results for the fourth quarter and year ended December 31, 2002. Highlights of the Company's report included higher operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the quarter and year, a reduction in its net loss for the final quarter of 2002 versus the same period in 2001, as well as an overall return to profitability during the year following net losses in 2001 and 2000. For the year ended December 31, 2002, operating revenues rose 2% to $126,254,368 from $123,856,279 in 2001. Boyd Bros.' pre-tax income for 2002 was $934,581, marking a sharp reversal of the pre-tax loss of $401,662 it reported in 2001, while net income for 2002 totaled $474,432 or $0.17 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share versus a net loss of $406,700 or $0.14 per diluted share in 2001. In the fourth quarter ended December 31, 2002, operating revenues rose 1% to $29,733,782 from $29,470,244 in the year-earlier quarter. The Company cut its pre-tax loss for the fourth quarter 49% to $463,113 from $915,604 in the same period last year. The net loss for the fourth quarter was $339,961 or $0.13 per diluted share, an improvement of 46% versus the net loss of $626,717 or $0.23 per diluted share in the same quarter of 2001. "The final quarter of the year reflected the continuation of a difficult operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. for our company and our industry, with some statistics already confirming a dramatic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the economy from the third quarter," said Gail B. Cooper, President and Chief Executive Officer. "These conditions clearly affected freight levels - more significantly at the close of 2002 - and limited our potential for revenue growth during the quarter and year. Additionally, fuel costs remained high throughout the year, surging noticeably in the fourth quarter, and we experienced considerable cost pressures elsewhere in our operations. It is in the context of these challenging operating conditions that the Company's results for 2002 become more significant, as we made steady progress during the year to improve our business over 2001 and return Boyd Bros. to stronger and profitable operations for the year. Perhaps nothing demonstrates this turnaround better than the Company's pre-tax income for 2002, which rebounded to nearly $1 million from combined pre-tax losses of almost $1.5 million in the previous two years." Cooper noted that both of the Company's divisions achieved higher operating revenues in 2002, although the growth at its WTI WTI West Texas Intermediate WTI Western Transportation Institute (Montana State University) WTI World Tribunal on Iraq WTI With The Idea (used in chess to point to the idea behind a specific move) division was more significant. During 2002, the mix of the Company's fleet shifted more to owner-operators, which resulted in lower salaries and wages for the year as Company drivers operated a smaller portion of the fleet. This shift in operator mix, in turn, increased the cost of independent contractors A person who contracts to do work for another person according to his or her own processes and methods; the contractor is not subject to another's control except for what is specified in a mutually binding agreement for a specific job. , the gain on sale of tractors to owner-operators under lease-purchase arrangements, and the Company's reserve for bad debts reserve for bad debts See allowance for doubtful accounts. from owner-operators under lease agreements, while reducing operating supplies and depreciation and amortization expense for a smaller Company-owned fleet. Fuel costs continued to rise in 2002, especially in the fourth quarter, but the increase was mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. to some extent by an increasing mix of owner-operated power units and the pass-through of a portion of the fuel cost increase via surcharges. The Company's operating results for 2002 also benefited from higher gains on the disposition of property and equipment, other than the sale and leaseback sale and leaseback The sale of a fixed asset that is then leased by the former owner from the new owner. A sale and leaseback permits a firm to withdraw its equity in an asset without giving up use of the asset. Also called leaseback. of power equipment to owner-operators, as well as lower interest expense due both to reduced borrowings and lower prevailing interest rates. "As we face the onset of another year marked by much economic and political uncertainty - circumstances that will dictate the extent and pace of any recovery that may occur in 2003 - we recognize that there are many factors beyond our control," Cooper added. "Clearly, these factors can and will influence our operations next year. With these uncertainties in mind, we will remain committed to continuing the progress we witnessed in 2002 - controlling our costs, improving efficiencies in our operations, maintaining the highest possible safety levels, and growing our customer base by emphasizing the Company's financial strength and resiliency The ability to recover from a failure. The term may be applied to hardware, software or data. to shippers who demand solid, stable and dependable carriers during these cautious times." Boyd Bros. Transportation Inc. is one of the largest flatbed trucking A flatbed truck is a type of truck which can be either articulated or rigid. It has an entirely flat, level body with absolutely no sides or roof. This allows for quick and easy loading of goods, and consequently they are used to transport heavy loads that are not delicate or companies in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company provides transportation services to high-volume, time-sensitive customers, primarily in the steel and building materials Building materials used in the construction industry to create . These categories of materials and products are used by and construction project managers to specify the materials and methods used for . industries, and operates throughout most of the continental United States United States territory, including the adjacent territorial waters, located within North America between Canada and Mexico. Also called CONUS. . For more information about the Company, visit Boyd Bros. on the Internet at www.boydbros.com. With the exception of historical information, the matters discussed and statements made in this release constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Specifically, this release contains forward-looking statements regarding the likely benefits from cost reductions; the internal initiatives being undertaken by the Company to improve performance, increase accountability and provide proper incentives for better execution; expectations regarding the freight business and the economy; and results in future quarters and for the year. Whenever possible, the Company has identified these forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934) by words such as "will" and words of similar import. Forward-looking statements contained in this release involve certain assumptions, risks and uncertainties that could cause actual results to differ materially from those included in or contemplated by the statements. In particular, there can be no assurance that the Company's internal initiatives to improve performance, increase accountability and provide proper incentives for better execution will be successful; that business conditions and the economy will improve, including the transportation and construction sectors in particular; that costs associated with increased insurance and claims costs, and liability claims for which the Company is self-insured will not have a material adverse affect on the Company; that the Company will be able to recruit and retain qualified drivers; that the Company will be able to control internal costs, particularly rising fuel costs that may or may not be passed on to the Company's customers; that departures and defaults by owner-operators will not have a material adverse affect on the Company; or that the cost of complying with governmental regulations that are applicable to the Company will not have a material adverse affect on the Company. These assumptions, risks and uncertainties include, but are not limited to, those discussed or indicated in all documents filed by the Company with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2001. The Company expressly disclaims any obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
BOYD BROS. TRANSPORTATION INC.
Unaudited Financial Highlights
Three Months Ended Year Ended
December 31, December 31,
------------------------- ---------------------------
2002 2001 2002 2001
----------- ----------- ------------ ------------
Operating
revenues $29,733,782 $29,470,244 $126,254,368 $123,856,279
Operating
income
(loss) (81,699) (386,142) 2,738,167 2,219,410
Pre-tax
income
(loss) (463,113) (915,604) 934,581 (401,662)
Provision
(benefit)
for income
taxes (123,152) (288,887) 460,149 5,038
Net income
(loss) $(339,961) $(626,717) $474,432 $(406,700)
Net income
(loss) per
share -
Basic $(0.13) $(0.23) $0.18 $(0.14)
Diluted $(0.13) $(0.23) $0.17 $(0.14)
Weighted
average
shares
outstanding
Basic 2,709,962 2,752,903 2,709,333 2,829,614
Diluted 2,709,962 2,752,903 2,788,234 2,829,614
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