CNF Inc. Takes Fourth-Quarter Write-Off.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)--Jan. 28, 2002 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. (NYSE NYSE See: New York Stock Exchange :CNF) today reported a fourth-quarter net loss for common shareholders of $4.45 per share, including unusual items totaling $4.57 per share. Excluding the unusual items, the company had net income of 12 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . Unusual items in the fourth quarter included: -- a $3.93 per share loss for the cost of the company's previously announced decision to cease the operations of its airline subsidiary in conjunction with a restructuring of Emery Worldwide, -- a 49 cents per share loss for the cost of the airline after its operations were suspended on August 13 while also bearing the expenses of a fleet of contractor aircraft, -- 12 cents per share for an additional loss due to the previously announced business failure in 2001 of a Menlo Logistics customer, and -- a 3 cents per share net loss from corporate charges. Fourth-quarter revenue totaled $1.14 billion. Including unusual items, the company reported a net loss to common shareholders of $217.1 million and a $337.0 million loss from operations. Cash and equivalents stood at over $400 million at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . The effective tax rate for the fourth quarter of 2001 was 38.4 percent. For the year 2001, CNF reported a net loss for common shareholders of $8.26 per share, including the net effect of unusual items and discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. that reduced earnings by $8.96 per share. Excluding the unusual items and discontinued operations, the company had net income of 70 cents per share. Unusual items for the year 2001 included: -- an $8.33 per share loss for restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. 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). Worldwide and the airline subsidiary, -- a 71 cents per share loss for duplicate DUPLICATE. The double of anything. 2. It is usually applied to agreements, letters, receipts, and the like, when two originals are made of either of them. Each copy has the same effect. fleet costs, -- 61 cents per share for losses at Menlo Menlo (Mionnloch) is a small village in the parish of Castlegar, on the outskirts of Galway, Ireland. Its name was re-used by Irish colonists in America. It is bordered by Lough Corrib and the River Corrib, to the North West. Logistics due to the failure of a customer, -- a 6 cents per share loss for costs of a legal settlement, -- a 5 cents per share net loss for corporate charges, and -- an 80 cents per share gain from discontinued operations following a cash settlement with 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. Postal Service related to the former Priority Mail contract. Full-year revenue totaled $4.86 billion. Including unusual items, the company reported a net loss for shareholders of $402.9 million and a $660.7 million loss from operations. Gregory L. Quesnel Quesnel or Quesnell may refer to: Places
Contraction of have not. haven't have not haven't have seen since 1998. Nevertheless, during the year we took several major steps we believe will improve our results and position us for growth as the economy improves. On December December: see month. 5, we announced the formation of a new company, Menlo Worldwide Menlo Worldwide is a global supply chain company based in San Mateo, California which operates in approximately 14 countries worldwide. Its core business offerings include 3rd-party logistics and 4th-party supply chain management. , that combines the strengths of 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. , Menlo Logistics and Vector SCM (1) (Software Configuration Management, Source Code Management) See configuration management. (2) See supply chain management. into a leading provider of supply chain services on a global basis. The new company has been well received by customers, investors and employees. CNF also begins the year with a strong cash and liquidity position and the financial flexibility to meet our needs and pursue growth opportunities." Beginning with the first quarter of 2002, CNF's results will be reported along with three primary lines of business -- Con-Way Con-way, Inc. (NYSE: CNW) is a $ 4.2 billion freight transportation and logistics company with businesses in less-than-truckload and full truckload freight services, truckload brokerage, logistics, warehousing, supply chain management and trailer manufacturing, based in San , Menlo Worldwide and Other. "Looking at the first quarter, 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. at Con-Way is expected to be flat to slightly down from last year's first quarter, with yields expected to be down in the mid-single-digit range. Con-Way's earnings are anticipated to be below the first quarter of 2001. At Menlo Worldwide's Emery Forwarding unit, volume in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. is expected to be down from last year's first quarter in the mid to high 20 percent range while yield is expected to decline in the low to mid-single-digit range reflecting a planned product mix change toward more revenue from second-day and deferred freight. Internationally, Emery's volumes are currently 20 percent below last year's. International gross margin is expected to be flat or improve slightly. At the Menlo Worldwide Logistics unit, revenue and 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. are expected to decline slightly. The Vector SCM unit is expected to report a small loss," said Quesnel. CNF's tax rate is expected to be 40 percent in the first quarter. Con-Way Transportation Services For the fourth quarter, Con-Way Transportation Services reported: -- operating income of $35.7 million, down 33 percent from $53.4 million in the year-ago period, -- revenue of $463 million, down 6 percent from last year's $490.4 million, -- regional carrier tonnage per day declined 4 percent, and -- LTL LTL - Linear Temporal Logic tonnage per day declined 3 percent. For the year 2001, Con-Way reported: -- operating income of $157.5 million, down 31 percent from $227.3 million in 2000, -- revenue of $1.9 billion, down 6 percent from $2.0 billion, -- $19.2 million of losses (compared with $8.2 million in 2000) from developing businesses, -- regional carrier tonnage per day declined 4 percent, and -- LTL tonnage per day declined 3 percent. "Despite the challenges presented by the recession-reduced tonnage levels, Con-Way achieved record productivity levels," said Quesnel. "Con-Way continues to pursue its strategy of broadening its revenue and product bases with new services that require minimal capital investments. Con-Way Air Express, its new forwarding service introduced in 2001, is off to a good start and earlier this month Con-Way introduced Con-Way Full Load, a truckload truck·load n. The quantity that a truck can hold. truckload n → camión m lleno brokerage service." Emery Worldwide For the fourth quarter, Emery Worldwide reported: -- an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $366.4 million, including $311.7 million of restructuring charges and $38.8 million of duplicate aircraft costs, compared with operating income of $14.5 million in the year-ago period, -- revenue of $460.0 million, down 36 percent from $723.8 million a year ago, which included $80.7 million from the Express Mail contract that was terminated August 26, 2001, -- 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 per day declined 39 percent, -- international revenue per day fell 23 percent, -- North American air freight tonnage per day was 36 percent lower, -- international air freight tonnage per day fell 20 percent, -- North American yield declined 4 percent primarily due to the planned product mix change. For the year 2001, Emery reported: -- an operating loss of $790.3 million, including $652.2 million of restructuring charges, $55.8 million of aircraft costs and a $4.7 million loss from a legal settlement, compared with operating income of $28.4 million in 2000, which included an $11.9 million loss from the termination of certain aircraft leases, -- revenue of $2.0 billion, down 22 percent from $2.6 billion in 2000, -- North American air freight revenue per day fell 28 percent, -- international revenue per day declined 13 percent, and -- North American yield improved 4 percent. "This was a pivotal year at Emery as revenue dropped due to the recession and the loss of postal revenues. It also had to deal with major restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). issues," said Quesnel. "Emery is now positioned as a global forwarder Forwarder Acts as a travel agent for cargo. A forwarder specializes in arranging the transport and completing required shipping documentation. Some are affiliated with NVOCC services. In the United States they are licensed by the Federal Maritime Commission. using contracted aircraft in North America. We estimate this new structure will reduce transportation expenses by about $100 million per year going forward." Menlo Logistics For the fourth quarter, Menlo Logistics reported: -- an operating loss of $2.7 million, including the additional $9.5 million unusual loss from the previously announced business failure of a customer (or operating income of $6.8 million excluding the unusual loss), compared with operating income of $8.6 million in the prior-year period, and -- revenue of $219.4 million, up 1 percent from $216.7 million in the prior-year period. For the year, Menlo Logistics reported: -- an operating loss of $15.8 million, including a $47.5 million unusual loss consisting mostly of the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of a customer receivable (or operating income of $31.6 million excluding the unusual loss), compared with operating income of $33.3 million in 2000, and -- revenue of $898.2 million, up 1 percent from $890.8 million in the prior year. "The additional loss at Menlo due to a customer bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most in 2001 was unexpected and was caused by the deepening deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. Noun 1. deepening - a process of becoming deeper and more profound recession, which made it impossible to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose the majority of the warehouse space we had leased for the account," said Quesnel. Other CNF's "Other" operations, which include the results of Vector SCM, Road Systems and corporate activities, reported an operating loss of $3.6 million in the fourth quarter. For the year, other operations reported an operating loss of $12.0 million, versus operating income of $1.0 million in 2000. "We are extremely pleased by the performance of Vector SCM in its first full year of operations," said Quesnel. Conference Call CNF will host a conference call for shareholders and the investing community to discuss fourth-quarter results at 11:00 a.m. Eastern time (8:00 a.m. Pacific) on Tuesday, January 29. The call can be accessed by dialing (866) 254-5942 and is expected to last approximately one hour. Callers are requested to dial in at least five minutes before the start of the call. The call will also be available through a live web cast at www.streetevents.com and in the investor relations Investor relations The process by which the corporation communicates with its investors. section of the CNF web site at www.cnf.com. An audio replay will be available for 48 hours following the call at (800) 475-6701, access code 622087. The replay will also be available for 48 hours on demand at the web sites providing access to the live call. CNF (NYSE:CNF) is a $4.9 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 In communications, a code or set of codes that make up the last part of a transmitted message. See trailer label. manufacturing. 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. Certain statements in this news release 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. All statements other than statements of historical fact are forward-looking statements including any projections and objectives of management for future operations, any statements concerning proposed new products or services, any statements regarding future economic conditions or performance, statements of belief and any statements or assumptions underlying the foregoing. Specific factors that could cause actual earnings, results of operations and other matters to differ materially from those discussed in such forward-looking statements include: changes in general business and economic conditions, the creditworthiness Creditworthiness The condition in which the risk of default on a debt obligation by that entity is deemed low. Creditworthiness Eligibility of an individual or firm to borrow money. of the Company's customers and their ability to pay for services rendered, increasing competition and pricing pressure, changes in fuel prices, the effects of the suspension and subsequent termination of the operations of Emery Worldwide Airlines' (EWA EWA Enterprise Wireless Alliance EWA Electronic Warfare Associates, Inc. EWA Energy from Waste Association (UK) EWA Engineered Wood Association EWA Edgewood Arsenal EWA Earl Walls Associates ) fleet of aircraft, uncertainties regarding EWA's termination claim under its former Priority Mail contract with the United States Postal Service postal service, arrangements made by a government for the transmission of letters, packages, and periodicals, and for related services. Early courier systems for government use were organized in the Persian Empire under Cyrus, in the Roman Empire, and in medieval (USPS (1) (Uninterruptible Switching Power Supply) A power supply for a computer that contains its own battery and uninterruptible power supply (UPS) circuitry. See power supply and UPS. ), uncertainties regarding EWA's termination settlement request and other claims under the former Express Mail contract with the USPS, labor matters, enforcement of and changes in governmental regulations, environmental and tax matters (including claims made by the Internal Revenue Service with respect to aircraft maintenance tax matters), the Department of Transportation investigation relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Emery Worldwide's handling of hazardous materials and aircraft maintenance, the February 2000 crash of an EWA aircraft and related litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , and matters relating to the company's 1996 spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. of Consolidated Freightways Consolidated Freight was the 3rd biggest trucking company in the US. In the 1930s they started their own truck manufacturing operation, Freightliner, now part of DaimlerChrysler. Corporation. The factors included here and in Item 7 of our 2000 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 financial position or results of operations.
CNF INC.
STATEMENTS OF CONSOLIDATED OPERATIONS
(Dollars in thousands except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
REVENUES $1,142,699 $1,439,724 $4,862,731 $5,572,377
Costs and
Expenses
Operating
expenses 1,010,309 1,189,038 4,209,882 4,611,079
General and
administrative 119,933 131,601 496,056 506,986
Depreciation 37,769 42,659 165,203 164,346
Restructuring
and related
charges 311,710 -- 652,241 --
----------- ----------- ----------- -----------
1,479,721 1,363,298 5,523,382 5,282,411
OPERATING INCOME
(LOSS) (337,022) 76,426 (660,651) 289,966
Other Expense,
net (11,964) (8,107) (35,282) (28,770)
----------- ----------- ----------- -----------
Income (Loss)
from Continuing
Operations
before Taxes (348,986) 68,319 (695,933) 261,196
Income Tax
Benefit
(Provision) 133,997 (28,376) 262,367 (109,880)
----------- ----------- ----------- -----------
INCOME (LOSS)
FROM CONTINUING
OPERATIONS
BEFORE
ACCOUNTING
CHANGE (214,989) 39,943 (433,566) 151,316
----------- ----------- ----------- -----------
Gain (Loss) from
Discontinuance,
net of tax -- -- 38,975 (13,508)
Cumulative Effect
of Accounting
Change, net of
tax -- -- -- (2,744)
----------- ----------- ----------- -----------
Net Income (Loss) (214,989) 39,943 (394,591) 135,064
Preferred Stock
Dividends 2,112 2,108 8,283 8,261
----------- ----------- ----------- -----------
NET INCOME (LOSS)
APPLICABLE TO
COMMON
SHAREHOLDERS $ (217,101) $ 37,835 $ (402,874) $ 126,803
=========== =========== =========== ===========
Weighted-Average
Common Shares
Outstanding
Basic shares 48,825,287 48,572,881 48,752,480 48,490,662
Diluted
shares(a) 48,825,287 55,918,030 48,752,480 55,901,374
Earnings (Loss)
per Common Share
Basic
Net Income
(Loss) from
Continuing
Operations $ (4.45) $ 0.78 $ (9.06) $ 2.95
Gain (Loss)
from
Discon-
tinuance,
net of tax -- -- 0.80 (0.28)
Accounting
Change,
net of tax -- -- -- (0.06)
----------- ----------- ----------- -----------
Net Income
(Loss)
Applicable
to Common
Shareholders $ (4.45) $ 0.78 $ (8.26) $ 2.61
=========== =========== =========== ===========
Diluted(a)
Net Income
(Loss) from
Continuing
Operations $ (4.45) $ 0.70 $ (9.06) $ 2.65
Gain (Loss)
from
Discon-
tinuance,
net of tax -- -- 0.80 (0.24)
Accounting
Change,
net of tax -- -- -- (0.05)
----------- ----------- ----------- -----------
Net Income
(Loss)
Applicable
to Common
Shareholders $ (4.45) $ 0.70 $ (8.26) $ 2.36
========== =========== =========== ===========
(a) In 2000, includes the dilutive effect of stock options, Series B
(TASP) preferred stock and Series A "TECONs", convertible
preferred stock of subsidiary trust.
OPERATING SEGMENTS
REVENUES
Con-Way
Transportation
Services $ 462,999 $ 490,438 $1,912,313 $2,044,896
Emery Worldwide 459,953 723,796 2,044,794 2,608,142
Menlo Logistics 219,366 216,707 898,182 890,800
Other 381 8,783 7,442 28,539
----------- ----------- ----------- -----------
$1,142,699 $1,439,724 $4,862,731 $5,572,377
=========== =========== =========== ===========
OPERATING INCOME
(LOSS) BEFORE
SIGNIFICANT
UNUSUAL ITEMS
Con-Way
Transportation
Services $ 35,684 $ 53,373 $ 157,467 $ 227,312(c)
Emery
Worldwide (54,671)(a) 14,539 (138,104)(a)(b) 28,365(d)
Menlo Logistics 6,809 8,564 31,636 33,303
Other (3,585) (50) (11,955) 986
----------- ----------- ----------- -----------
$ (15,763) $ 76,426 $ 39,044 $ 289,966
=========== =========== =========== ===========
Unusual Items
Emery -
Restructuring
and related
charges $ (311,710) $ -- $ (652,241) $ --
Menlo - Loss
on failure
of significant
customer (9,549) -- (47,454) --
----------- ----------- ----------- -----------
Consolidated
operating
results $ (337,022) $ 76,426 $ (660,651) $ 289,966
=========== =========== =========== ===========
(a) Includes fourth-quarter charges of $38.8 million, $23.9 million
after tax ($0.49 per basic and diluted share) and year-to-date
charges of $55.8 million, $34.8 million after tax ($0.71 per
basic and diluted share) related to duplicate airhaul expenses.
(b) Includes costs of $4.7 million, $2.9 million after tax ($0.06 per
basic and diluted share) for a legal settlement.
(c) Includes a $5.5 million loss, $3.2 million after tax, ($0.07 per
basic share and $0.06 per diluted share) from the sale of certain
assets of Con-Way Truckload Services.
(d) Includes an $11.9 million loss, $6.9 million after tax, ($0.14 per
basic share and $0.12 per diluted share) from the termination of
certain aircraft leases.
CNF INC.
CONDENSED BALANCE SHEETS
(Dollars in thousands)
December 31, December 31,
2001 2000
ASSETS
Current assets $ 1,327,846 $ 1,240,335
Property, plant and
equipment, net 1,070,529 1,106,522
Other assets(a) 592,784 898,084
------------ ------------
Total Assets $ 2,991,159 $ 3,244,941
============ ============
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities(b) $ 879,337 $ 958,909
Long-term debt and guarantees 565,815 534,649
Other long-term liabilities
and deferred credits 780,262 564,461
Preferred stock -
Subsidiary Trust 125,000 125,000
Shareholders' equity 640,745 1,061,922
------------ ------------
Total Liabilities and
Shareholders' Equity $ 2,991,159 $ 3,244,941
============ ============
(a) Includes net non-current assets of discontinued operations of $3.1
million and $173.5 million as of December 31, 2001 and December
31, 2000, respectively.
(b) Includes net current liabilities of discontinued operations of
$5.6 million and $68.2 million as of December 31, 2001 and
December 31, 2000, respectively.
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion