Celadon Group Reports December Quarter Results.Business Editors INDIANAPOLIS--(BUSINESS WIRE)--Jan. 14, 2004 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 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 reported its financial and operating results for the three and six months ended December December: see month. 31, 2003, the second fiscal quarter of the Company's fiscal year ending June June: see month. 30, 2004. For the quarter, 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 6.9%, to $97.1 million from $90.8 million for the same quarter last year. Net income increased 48.4%, to $1.5 million from $1.0 million for the same quarter last year. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of improved to $.19 from $.13. For the six months, revenue increased 4.6%, to $192.8 million from $184.4 million in the same period last year. Each of the six month periods included an expense item that the Company considers to be unusual that had been previously announced. During the most recent six month period, the Company recognized a $6.9 million non-cash, after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc used trailers. In the prior year's period, the Company recognized an approximately $550,000 after-tax charge in connection with re-financing outstanding debt. Net income excluding those charges was $2.9 million, or $.36 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, compared with net income of $2.5 million, or $.31 per share for the same period last year. Net loss, including the impairment charge, was $4.0 million, or $.52 per diluted share, compared with net income, including the refinancing Refinancing An extension and/or increase in amount of existing debt. charge, of $1.9 million, or $.24 per diluted share, for the same period last year. Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Steve Russell
-- Average revenue per tractor tractor, in agriculture, vehicle used to pull such equipment as plows, cultivators, and mowers; to power stationary devices such as saws and winches; and to push snowplows and earth-moving implements. per week, our main measure of asset productivity, improved 6.8%, to $2,689, as a result of higher rates per mile and miles per tractor. -- Average revenue per loaded mile increased 3.5%, to $1.306, and average revenue per total mile improved 3.8%, to $1.211, as a result of higher freight rates Noun 1. freight rate - the charge for transporting something by common carrier; "we pay the freight"; "the freight rate is usually cheaper" freightage, freight and a lower percentage of non-revenue miles. -- Average miles per tractor per week improved 2.9%, to 2,221, as a result of improved operational discipline and increased freight demand. -- We continued to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. our customer base by reducing our reliance on automotive freight and increasing our revenue from consumer non-durables. -- The Highway Express operations we acquired in August 2003 have been fully integrated and were accretive to earnings during the quarter. TruckersB2B continued to contribute nicely to our results. For the quarter, Truckers B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business generated revenue of $2.4 million 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. of $0.5 million compared with revenue of $2.0 million and operating income of $0.3 million for the same quarter last year. Revenue reflects fees and rebates only, not the value of the goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. related to these transactions. During the quarter, we reduced our balance sheet debt through a combination of cash flow and financing new tractors and trailers under operating leases Operating Lease A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. Notes: An operating lease is not capitalized it is accounted for as a rental expense. . At December 31, 2003, our total borrowing and capital lease obligations, including current maturities, were $53.2 million, compared with $67.5 million at September September: see month. 30, 2003. During the quarter we accepted delivery of 359 new tractors and 700 new trailers and disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of 155 and 356 older units. The strength of our operating performance more than offset the effects of a spike A burst of extra voltage in a power line that lasts only a few nanoseconds. See power surge, power swell, sag and surge suppression. (jargon) spike - To defeat a selection mechanism by introducing a (sometimes temporary) device that forces a specific result. in the exchange rate of the Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents , which affects us because we pay approximately 450 employees and owner-operators in that currency. We estimate that the difference in exchange rates negatively impacted our earnings by $.08 per share compared with the same quarter last year. Even with this item, the improvement in our operating performance is apparent. Overall, our pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern margin improved 120 basis points, and excluding this item, our pretax margin would have improved 190 basis points. Looking forward, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the Company's opportunities for additional improvement. We intend to continue our yield management efforts and believe a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. relationship between truckload truck·load n. The quantity that a truck can hold. truckload n → camión m lleno capacity and freight demand will support further increases in our revenue per mile given the current economic outlook. The new hours-of-service regulations that became effective January January: see month. 4 may cause some disruptions in freight patterns and productivity. However, thus far, we are not experiencing any significant issues, and we believe that intense preparation with our customers and our longer average length of haul position us better than many competitors to address these changes. We also believe that the benefits of upgrading our revenue equipment will lower expenses and improve driver acceptance of our fleet, and that these benefits will outweigh out·weigh tr.v. out·weighed, out·weigh·ing, out·weighs 1. To weigh more than. 2. To be more significant than; exceed in value or importance: The benefits outweigh the risks. the costs. We expect the average age of our tractor fleet to be approximately 2.0 years at June 30, 2004, compared with 2.7 years at June 30, 2003. Finally, although there is no doubt that industry wide competition for drivers is growing and could require additional increases in compensation or result in unmanned tractors, we have received a strong response to our recent driver wage increase and have had large recruiting classes for the past several weeks. On balance, we feel well-positioned for the remainder of our fiscal year." Conference Call Information An investor conference call is scheduled for Thursday Thursday: see week. , January 15, at 10:00 a.m. (Eastern). Steve Russell and other members of management will discuss the results of the quarter. To listen and participate in a questions-and-answers exchange, simply dial (201) 689-8359 at least five minutes prior to the start time. Otherwise, you may listen to the call via website: http://www.viavid.net/detailpage.aspx?sid=00001911 Celadon Group, Inc. is a truckload carrier Merrian-Webster online dictionary defines truckload as " a load or amount that fills or could fill a truck". A truckload carrier is a trucking company that generally contracts an entire trailer-load to a single customer. headquartered in Indianapolis that operates in the U.S., Canada and Mexico. Celadon is also the majority owner of TruckersB2B, Inc., which is a provider of cost benefits to more than 15,000 member fleets. Please visit the company's websites at: www.celadongroup.com and www.truckersb2b.com. The discussion set forth above as well as oral statements made by officers of the company relating thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. , may contain forward looking statements within the meaning 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. Such comments are based upon information currently available to management and management's perception thereof as of the date of this press release. Actual results of the company's operations could materially differ from those 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. . Such differences could be caused by a number of factors including, but not limited to, potential adverse affects of regulation; changes in competition and the effects of such changes; increased competition; change in fuel prices; changes in economic, political or regulatory environments; changes in the availability of a stable labor force; ability of the company to hire drivers meeting company standards; changes in management strategies; environmental or tax matters; and risks described from time to time in reports filed by the company with the Securities and Exchange Commission. Readers should take these factors into account in evaluating any such forward-looking statements.
- tables follow -
Consolidated Balance Sheets
(Dollars in thousands, except par value)
December 31, June 30,
2003 2003
--------------------------
ASSETS (unaudited)
-------------
Current assets:
Cash and cash equivalents $774 $1,088
Trade receivables, net of allowance for
doubtful accounts of
$1,273 and $1,065 at Dec. 31 and June
30, 2003, respectively 43,259 44,182
Drivers advances and other receivables 3,268 3,432
Prepaid expenses and other current assets 8,143 7,101
Tires in service 4,798 4,714
Income tax receivable 242 ---
Deferred income taxes 5,272 2,296
--------------------------
Total current assets 65,757 62,813
Property and equipment, at cost 116,392 129,319
Less accumulated depreciation and
amortization 46,011 52,352
--------------------------
Net property and equipment 70,381 76,967
Tires in service 2,304 2,207
Goodwill 16,702 16,702
Other assets 2,882 3,384
--------------------------
Total assets $158,025 $162,073
==========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,303 $4,204
Accrued salaries and benefits 7,930 6,748
Accrued insurance and claims 5,039 5,163
Accrued owner-operator expense 2,197 2,728
Accrued fuel expense 3,815 3,138
Other accrued expenses 14,266 11,074
Current maturities of long-term debt 6,110 6,156
Current maturities of capital lease
obligations 10,892 14,960
Income tax payable --- 299
--------------------------
Total current liabilities 54,552 54,470
Long-term debt, net of current maturities 27,687 26,406
Capital lease obligations, net of current
maturities 8,475 13,272
Deferred income taxes 14,042 10,648
Minority interest 25 25
Stockholders' equity:
Preferred stock, $1.00 par value,
authorized 179,985 shares; no
shares issued and outstanding --- ---
Common stock, $0.033 par value, authorized
12,000,000 shares;
issued 7,789,764 shares at Dec. 31 and
June 30, 2003 257 257
Additional paid-in capital 60,188 60,092
Retained deficit (4,775) (761)
Accumulated other comprehensive loss (2,270) (1,947)
Treasury stock, at cost, 38,533 shares
and 96,001 shares at
Dec. 31 and June 30, 2003, respectively (156) (389)
--------------------------
Total stockholders' equity 53,244 57,252
--------------------------
Total liabilities and stockholders'
equity $158,025 $162,073
==========================
Key Operating Statistics
For the three months For the three months
ended December 31, ended December 31,
2003 2002
------------------------------------------
Operating Statistics
(U.S./Canada Truckload)
Average revenue per
loaded mile(a) $1.306 $1.262
Average revenue per total
mile(a) $1.211 $1.167
Average revenue per tractor
per week (a) $2,689 $2,518
Average miles per tractor
per week 2,221 2,158
Average tractors 2,246 2,156
Tractors at end of period (b) 2,809 2,663
Trailers at end of period (b) 7,610 6,976
(a) Excludes fuel surcharge
(b) Total Company Fleet
CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share amounts)
For the three months For the six months
ended December 31, ended December 31,
2003 2002 2003 2002
----------------------------------------
Operating revenue $97,137 $90,827 $192,788 $184,387
Operating expenses:
Salaries, wages and
employee benefits 30,834 27,862 60,665 56,340
Fuel 13,517 11,401 25,931 22,088
Operations and maintenance 8,038 7,818 16,221 15,782
Insurance and claims 3,686 3,132 7,608 6,601
Depreciation, amortization
and impairment charge(1) 3,641 3,051 17,252 6,585
Revenue equipment rentals 6,964 6,145 13,775 12,047
Purchased transportation 19,655 21,896 39,349 44,834
Costs of products and
services sold 1,469 1,293 3,124 2,530
Professional and consulting
fees 542 584 1,070 1,134
Communications and
utilities 1,054 938 2,089 2,001
Operating taxes and
licenses 1,919 1,940 4,020 3,879
General and other operating 1,765 1,615 3,541 3,478
----------------------------------------
Total operating expenses 93,084 87,675 194,645 177,299
Operating income (loss) 4,053 3,152 (1,857) 7,088
Other (income) expense:
Interest income (9) (14) (25) (38)
Interest expense (2) 1,026 1,456 2,161 3,936
Other (income) expense, net 3 (25) 40 (65)
----------------------------------------
Income (loss) before income
taxes 3,033 1,735 (4,033) 3,255
Income tax expense (benefit) 1,507 707 (19) 1,336
----------------------------------------
Net income (loss) $1,526 $1,028 $(4,014) $1,919
========================================
Earnings (loss) per common share:
Diluted earnings (loss) per
share $0.19 $0.13 ($0.52) $0.24
Basic earnings (loss) per
share $0.20 $0.13 ($0.52) $0.25
Weighted average number of common
shares outstanding:
Diluted 8,175 8,061 7,716 8,065
Basic 7,727 7,687 7,716 7,683
1) Includes a $9.8 million pre-tax impairment charge on trailers in
the three months ended September 30, 2003.
2) Includes a $914 thousand pre-tax write-off of unamortized loan
origination costs for refinancing the Company's line of credit in
the three months ended September 30, 2002.
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