Celadon Group Reports First Fiscal Quarter Financial Results, 50% Increase in Earnings Per Share.INDIANAPOLIS -- 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:CLDN CLDN Calling Line Directory Number CLDN Claudin (gene family) ) today reported its financial and operating results for the three months ended Sept. 30, 2006, the first fiscal quarter of the Company's fiscal year ending June 30, 2007. Revenue for the quarter increased 8.3% to $127.7 million in the 2006 quarter from $117.9 million in the 2005 quarter. Freight revenue, which excludes fuel surcharges, was up 4.3% to $107.7 million in the 2006 quarter from $103.3 million in the 2005 quarter. Net income increased 51.1% to $7.1 million in the 2006 quarter from $4.7 million for the same quarter last year. Earnings per diluted share improved by 50% to $0.30 in the 2006 quarter from $0.20 for the same quarter last year. The September quarter marked the highest 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. and net income in the history of the Company. 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
freightage, freight and continued focus on cost controls allowed us to improve our operating ratio Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: by 300 basis points to 89.2% in the September 2006 quarter from 92.2% in the September 2005 quarter. The operating ratio for the September 2006 quarter also represented a sequential improvement over the 90.3% operating ratio we posted for the June 2006 quarter. We define operating ratio as total 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. , net of fuel surcharges, as a percentage of freight revenue. "Average rate per loaded mile increased by 4.2% to $1.539, from $1.477 in the prior year's September quarter, average length of haul increased by about twenty miles per load, and generally costs were in line with expectations. Seated count increased by approximately 150 trucks year over year, driver turnover continues to be about half of the industry average and the number of qualified drivers joining us is up significantly. We continue our policy of hiring only experienced drivers with records that meet our safety standards Safety standards are standards designed to ensure the safety of products, activities or processes, etc. They may be advisory or compulsory and are normally laid down by an advisory or regulatory body that may be either voluntary or statutory. . As part of our ongoing efforts to improve our freight mix, we continued to reduce business related to new automobile production, and now do no business with the "Big Three" U.S. automakers. "Improvement in our freight rates was offset by a decrease in average miles per tractor, resulting in a 3.6% decrease in average freight revenue per tractor per week, from $2,976 to $2,870. Our success in recruiting drivers and growing our fleet resulted in a decrease in miles per truck per week. We believe our October 6, 2006, purchase of the assets of Digby Trucking, of Nashville TN, which operated 250 trucks, will offer an opportunity to increase miles and revenue for our entire fleet. Digby generated approximately $48 million in revenue in the twelve months prior to the acquisition. We have met with their top ten customers, and believe that our reputation for safety, service and technology provides an opportunity to establish a relationship with those customers. We expect to hire up to 150 drivers, which should provide an opportunity for additional miles for our existing fleet. An important part of the Digby customer base was in the food business, which is consistent with our focus on consumer-non-durable freight. "At September 30, 2006, our balance sheet reflected $1.1 million in cash, $11.7 million in borrowings and capitalized leases, and $129.9 million of total stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. . In our first fiscal quarter, we invested approximately $20 million in cash to purchase new tractors. In connection with our acquisition of the assets of Digby, we added approximately $21 million of borrowing on October 6, 2006. "In summary, we believe we will be able to continue to execute on our strategic plan and produce positive results going forward." Conference Call Information An investor conference call is scheduled for Friday, Oct. 20, at 10:00 a.m. Eastern time. Steve Russell and other members of management will discuss the results of the quarter. To listen and participate in the question-and-answer exchange, dial 800-510-0178 (international calls 617-614-3450) pin number 22842534 a few minutes prior to the starting time Noun 1. starting time - the time at which something is supposed to begin; "they got an early start"; "she knew from the get-go that he was the man for her" commencement, get-go, offset, outset, showtime, start, kickoff, beginning, first . A replay will be available through Dec. 20 by dialing 888-286-8010 (international calls 617-801-6888) and entering call back code 24185881. This call is being webcast by Thomson/CCBN and can be accessed via Celadon's web site at www.CeladonGroup.com. Any statistical and financial information that is discussed during the conference call also will be available at www.CeladonGroup.com. Founded in 1985, Celadon Group Inc. (www.CeladonGroup.com) 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 also owns TruckersB2B Inc. (www.TruckersB2B.com) which provides cost savings to about 20,000 member fleets. This press release and statements made by Celadon in its stockholder reports and public filings, as well as oral public statements by Celadon representatives, contain certain forward-looking information, usually identified by words such as "anticipates," "believes," "estimates," "projects," "intends," expects," "plans," or similar expressions. These statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions 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 statements are based upon the current beliefs and expectations of Celadon's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in 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. . With respect to expectations concerning continued execution of the strategic plan and future operating results, as well as with respect to general business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets , the following factors, among others, could cause actual results to differ materially from those in forward-looking statements: excess tractor and trailer capacity in the trucking industry; decreased demand for our services or loss of one or more of our major customers; surplus inventories; recessionary economic cycles and downturns in customers' business cycles; strikes, work slow downs, or work stoppages at our facilities, or at customer, port, border crossing, or other shipping related facilities; our ability to execute our strategic plan; increases in compensation for and difficulty in attracting and retaining qualified drivers and independent contractors A person who contracts to do work for another person according to his or her own processes and methods; the contractor is not subject to another's control except for what is specified in a mutually binding agreement for a specific job. ; increases in insurance premiums and deductible amounts; elevated experience in the frequency or severity of claims relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc accident, cargo, workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. , health, and other matters; fluctuations in claims expenses that result from high self-insured retention amounts and differences between estimates used in establishing and adjusting claims reserves and actual results over time; increases or rapid fluctuations in fuel prices, as well as fluctuations in hedging activities and surcharge collection, the volume and terms of diesel purchase commitments, interest rates, fuel taxes, tolls, and license and registration fees; fluctuations in foreign currency exchange rates; increases in the prices paid for new revenue equipment; increases in interest rates or decreased availability of capital or other sources of financing for revenue equipment; decreases in the resale value of our used equipment; seasonal factors such as harsh weather conditions that increase operating costs operating costs npl → gastos mpl operacionales ; competition from trucking, rail, and intermodal competitors; regulatory requirements that increase costs or decrease efficiency, including revised hours-of-service requirements for drivers; our ability to identify acceptable acquisition candidates, consummate acquisitions, and integrate acquired operations; the timing of, and any rules relating to, the opening of the border to Mexican drivers; challenges associated with doing business internationally; our ability to retain key employees; and the effects of actual or threatened military action or terrorist attacks or responses, including security measures Noun 1. security measures - measures taken as a precaution against theft or espionage or sabotage etc.; "military security has been stepped up since the recent uprising" security that may impede shipping efficiency, especially at border crossings. Readers should review and consider the various disclosures made by Celadon in this press release, stockholder reports, and in its Forms 10-K, 10-Q, and other public filings. Celadon disclaims any such obligation to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise. For a more detailed discussion of these factors, please refer to the various disclosures made by the Company in its press releases, stockholder reports, and filings with the Securities and Exchange Commission. [TABLE OMITTED] [TABLE OMITTED] (a)Freight Revenue excludes fuel surcharges (b)Total fleet, including equipment operated by independent contractors and our Mexican subsidiary, Jaguar. [TABLE OMITTED] |
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