Celadon Group, Inc. comments on expected 4th quarter results.NEW YORK--(BUSINESS WIRE)--Aug. 28, 1995--Celadon Group, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CLDN CLDN Calling Line Directory Number CLDN Claudin (gene family) ) today announced that it expects the results for the fourth quarter and fiscal year ended June June: see month. 30, 1995, to be adversely affected by a tax charge and by a decrease in profitability in its trucking operations, which appears to have been temporary. Because complete information on the financial performance of its freight forwarding operations is not yet available due to a recent conversion to a new computer system, the company expects to report its final results for fiscal 1995 within the next two to three weeks. The Company said an additional charge for income taxes of $0.13 per share will be recorded in fiscal 1995, reflecting a revision in its effective tax rate for the year. During fiscal 1995, the Company had recorded tax expense based upon its fiscal 1994 effective tax rate. Celadon celadon Chinese, Korean, Siamese, and Japanese stoneware decorated with glazes the colour range of which includes greens of various shades, olive, blue, and gray. The colours are the result of a wash of slip (liquefied clay) containing a high proportion of iron that is also stated that while trucking revenue for the quarter ended June 30, 1995, increased approximately 15% over the prior year quarter, the profitability of trucking operations was below the year-ago level. The operating ratio Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: (defined as 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. as a percentage of operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. ) increased to approximately 93% of trucking revenue in the fiscal 1995 fourth quarter, from 87% in the comparable fiscal 1994 period. The increase in the operating ratio was due to a shortage of drivers in the fiscal 1995 fourth quarter, resulting in lower utilization of revenue-generating equipment. The Company said the profitability of its trucking operations appears to have improved thus far in the first quarter of fiscal 1996. Trucking revenue for fiscal 1996 to-date is approximately 21% ahead of the comparable period in fiscal 1995 as driver availability has significantly improved. Celadon also said it has expanded its trucking operations to serve the Wal-Mart-Buckeye distribution center, as well as several other significant clients. For the fourth quarter ended June 30, 1994, Celadon reported revenue of $49.3 million and net income of $1.3 million, or $0.19 per share. For fiscal year ended June 30, 1994, revenue was $180.9 million and net income was $2.9 million, or $0.61 per share. CONTACT: Celadon Group, Inc. Brian L. Reach, 800/839-4227 |
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