CNF Inc. Reports 16 Percent Increase in First-Quarter Earnings.Business Editors PALO ALTO Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif.--(BUSINESS WIRE)--April 19, 2000 CNF CNF Configuration (File Name Extension) CNF Conference CNF Conjunctive Normal Form CNF Could Not Find CNF Chin National Front (Burma) CNF Canadian Nature Federation CNF Cornell NanoScale Facility Inc. today reported first quarter net income for common shareholders of $35.8 million or 66 cents 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 without non-recurring gains, up 16 percent from net income of $31.0 million or 58 cents per diluted share in the first quarter of 1999. When non-recurring gains are included, net income for first-quarter 2000 was 69 cents per diluted share of which 3 cents was a gain from the sale of securities. This compares with 74 cents per diluted share in the same quarter a year ago, which included 16 cents from the settlement of a lawsuit. First-quarter 2000 operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was $73.4 million, compared with $66.1 million in the same quarter a year ago when the settlement gain is excluded, an 11 percent increase. Revenue for the first quarter of 2000 was $1.46 billion, up 17 percent, and the effective tax rate was 42.5 percent, compared with 43.5 percent a year ago. Con-Way Transportation Services reported record first-quarter operating income of $58.1 million, an increase of 8 percent from the same quarter a year ago. Its revenue of $510.5 million was a record for any quarter, and up 18 percent from first-quarter 1999. "Con-Way had another excellent quarter of profits due to the strength of the economy and stable prices, which resulted in improved yield," said Gregory L. Quesnel, CNF president and chief executive officer. "Con-Way continues to incur start-up costs for Con-Way Integrated Services In computer networking, IntServ or integrated services is an architecture that specifies the elements to guarantee quality of service (QoS) on networks. IntServ can for example be used to allow video and sound to reach the receiver without interruption. , which is developing its customer base and expanding the scope of its operations. "We're pleased to announce that we expect Con-Way to surpass $2 billion in revenue this year for the first time in its history," Quesnel added. Con-Way regional carrier tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. increased 9 percent in the first quarter and LTL LTL - Linear Temporal Logic tonnage also rose 9 percent. Emery Worldwide Emery Worldwide was a cargo airline, once was one of the leading carriers in the cargo airline world. Emery started in 1946 and was the first freight forwarder to receive a carrier certificate from the United States Government. reported first-quarter operating income of $7.4 million, more than double the $3.6 million it earned in the same quarter a year ago. Revenue totaled $601.2 million, up 14 percent. "Revenue and profit growth at Emery emery: see corundum. emery Granular rock consisting of a mixture of the mineral corundum (aluminum oxide, Al2O3) and iron oxides such as magnetite (Fe3O4) or hematite (Fe2O3). were driven by our international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. ," Quesnel said. "Results from our North American operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. were disappointing and were affected by higher than normal expense for aircraft due to planned maintenance aimed at improving fleet productivity," said Quesnel. North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. air freight air freight n → flete m por avión air freight n → fret aérien air freight air n → Luftfracht f revenue was flat in the first quarter while international air freight revenue grew 25 percent. North American air freight tonnage declined 4 percent while international tonnage increased 21 percent in the first quarter. Menlo Logistics reported first-quarter operating income of $7.6 million, up 68 percent on a 31 percent increase in revenue to $209.9 million. "This was Menlo's best quarter ever," said Quesnel. "Menlo's financial results in the quarter benefited from start-up fees and profits from several new projects brought on line." CNF's "Other" operations had operating income of $311,000 in the first quarter of 2000. This segment includes income from the operations of the Priority Mail contract and Road Systems, a trailer manufacturing company. The Priority Mail contract recorded break-even results in the first quarter on revenue of $135.2 million, which was up 14 percent from the same quarter a year ago. As previously announced, the company continues negotiations with the U.S. Postal Service The U.S. Postal Service (USPS) processes and delivers mail to individuals and businesses within the United States. The service seeks to improve its performance through the development of efficient mail-handling systems and operates its own planning and engineering programs. to resolve pricing and operational issues involving the Priority Mail contract. Beginning in the third quarter of 1999, the company began being paid a provisional rate for its services that is below its cost of operating under the contract. Therefore, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , the company is recognizing unbilled un·billed adj. 1. Not having been billed or charged for: unbilled medical charges. 2. Appearing, as in a movie, without being credited: an unbilled walk-on. revenues sufficient only to recover costs. No profit has been recognized since the second quarter of 1999. The company recognized $20.3 million of unbilled revenue in the first quarter of 2000 and has recognized $144.1 million in unbilled revenue since the beginning of the contract. CNF (NYSE NYSE See: New York Stock Exchange :CNF) is a $5.6 billion management company of global supply chain services with businesses in regional trucking, air freight, ocean freight, customs brokerage, global logistics management Logistics Management is that part of Supply Chain Management that plans, implements, and controls the efficient, effective, forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet and trailer manufacturing. Certain statements in this news release, including statements regarding anticipated earnings, constitute "forward looking statements" and are subject to a number of risks and uncertainties, and should not be relied upon as predictions of future events. The factors discussed above and in Item 7 of the company's 1999 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. as well as other filings with the Securities and Exchange Commission, could cause actual results and other matters to differ materially from those in such forward looking statements. As a result, no assurance can be given as to future results of operations or financial condition.
CNF INC.
CONDENSED STATEMENTS OF CONSOLIDATED INCOME
(Dollars in thousands except per share amounts)
Three Months Ended
March 31,
2000 1999
REVENUES
Con-Way Transportation Services $ 510,516 $ 433,379
Emery Worldwide 601,238 529,421
Menlo Logistics 209,903 160,559
Other 141,096 131,964
------------ ------------
$ 1,462,753 $ 1,255,323
OPERATING INCOME
Con-Way Transportation Services $ 58,116 $ 53,947
Emery Worldwide 7,352 3,551
Menlo Logistics 7,638 4,556
Other 311 20,541(c)
------------ ------------
73,417 82,595
OTHER EXPENSE, NET (5,013)(b) (7,734)
Income before income taxes 68,404 74,861
Income taxes 29,072 32,565
Net income 39,332 42,296
Preferred stock dividends 2,034 2,027
NET INCOME AVAILABLE
TO COMMON SHAREHOLDERS $ 37,298 $ 40,269
Average Common Shares Outstanding
Basic 48,417,660 47,925,476
Diluted (a) 56,073,670 55,814,095
EARNINGS PER COMMON SHARE
Basic $ 0.77(b) $ 0.84(c)
Diluted (a) $ 0.69(b) $ 0.74(c)
(a) Includes the dilutive effect of stock options, Series B (TASP)
preferred stock and Series A "TECONS" convertible preferred stock
of subsidiary trust.
(b) Includes a $2.6 million net gain ($0.03 per basic and diluted
share) on the sale of securities in March 2000.
(c) Includes a $16.5 million net gain ($0.19 per basic share and $0.16
per diluted share) on a lawsuit settled in January 1999.
CNF INC.
CONDENSED BALANCE SHEETS
(Dollars in thousands)
March 31, December 31,
2000 1999
ASSETS
Current assets $1,283,064 $1,200,233
Property, plant and equipment, net 1,144,296 1,131,034
Other assets 720,059 717,743
Total Assets $3,147,419 $3,049,010
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities $1,016,135 $1,049,154
Long-term debt and guarantees 534,679 433,446
Other long-term liabilities
and deferred credits 473,236 473,462
Preferred stock - Subsidiary Trust 125,000 125,000
Shareholders' equity 998,369 967,948
Total Liabilities
and Shareholders' Equity $3,147,419 $3,049,010
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