Cannon Express, Inc. Announces Operating Results.Business Editors SPRINGDALE Springdale, city (1990 pop. 29,941), Benton and Washington counties, NW Ark.; inc. 1878. It is a poultry-processing center, and there is vegetable canning, printing, and the manufacture of air conditioning ducts, metal and paper products, machinery, transportation , Ark.--(BUSINESS WIRE)--Feb. 10, 2000 Cannon Express, Inc., (AMEX AMEX See: American Stock Exchange :AB) Chairman of the Board Dean Cannon Dean Cannon (born August 2, 1968) in Bitburg, Germany. Cannon is a Representative in the House of Representatives of the U.S. state of Florida. He received his Bachelors degree from the University of Florida, and his Juris Doctorate from the University of Florida as well. , announced the results of its 2nd fiscal quarter and the six months period of fiscal 2000 ended Dec. 31, 1999. Revenues 2nd fiscal quarter 2000 were $21,290,792 compared to $24,091,602 in the 2nd fiscal quarter of 1999. Net loss 2nd fiscal quarter 2000 was $(326,001) compared to Net loss of $(140,140) in the 2nd fiscal quarter of 1999. Per share 2nd fiscal quarter 2000 was 10 cents loss compared to 4 cents loss in the 2nd fiscal quarter of 1999. Average shares and share equivalents outstanding: Fiscal 2000: 3,205,276 Fiscal 1999: 3,219,236 Revenues six months fiscal 2000 were $44,206,225 compared to $48,754,019 in the six months period of fiscal 1999. Net income six months fiscal 2000 was $175,102 compared to $(77,948) net loss in the six months period of fiscal 1999. Per share six months fiscal 2000 was 5 cents net income per share compared to 2 cents loss per share in the six months period of fiscal 1999. Average shares and share equivalents outstanding: Fiscal 2000: 3,209,069 Fiscal 1999: 3,232,057 The Company's revenue continued to be negatively impacted by a shortage of qualified drivers to operate its trucks during the quarter ending 12-31-99. The Company's fleet size decreased to an average of 771 trucks for the quarter ended Dec. 31, 1999 from 875 in the same quarter of the previous year. The Company traded in some of its trucks early due to the driver shortage, and is replacing its older trucks with new trucks emphasizing driver comfort and convenience. In January January: see month. of 2000 the Company implemented an increase in drivers' starting base pay ranging from 2 to 4 cents per mile. The Company believes that it may be necessary to provide additional pay increases for its drivers in the future. Fuel costs continued to increase in the December December: see month. 1999 quarter, averaging 26 cents per gallon gallon: see English units of measurement. higher than in the same quarter of fiscal 1999. The Company's cost of fuel in February February: see month. 1999 averaged 89 cents per gallon. As of the date of this release, the Company's cost of fuel is approximately 10 cents per mile higher than in 1999. The Company experiences approximately a one cent per mile increase in its operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for each 6 cents per gallon increase in the cost of fuel. The Company is pursuing increased rates and fuel surcharges from its customers in order to offset the added expense for drivers' wages and fuel. However, the Company can make no assurances that its efforts to implement rate increases and surcharges to offset increased costs will be effective. 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. This report contains forward-looking statements that are based on assumptions made by management from information currently available to management. These statements address future plans, expectations and events or conditions concerning various matters such as the results of the Company's sales efforts, capital expenditures, 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 capital resources, and accounting matters. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, actual results could differ materially from those currently reported. |
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