Celadon Group Reports March Quarter Results.Business Editors INDIANAPOLIS--(BUSINESS WIRE)--April 19, 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-CLDN) today reported its financial and operating results for the three and nine months ended March 31, 2004, the third 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 8.9%, to $98.8 million from $90.7 million for the same quarter last year. Net income increased 180.0%, to $1.4 million from $0.5 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 $0.17 from $0.06. For the nine months, revenue increased 6.0%, to $291.6 million from $275.1 million in the same period last year. Each of the nine month periods included an expense item the Company considers to be unusual that had been previously announced. During the most recent nine month period, the Company recognized a $6.9 million or $0.86 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 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 a $550,000 or $0.06 per diluted share after-tax charge in connection with re-financing outstanding debt. Net loss, including the impairment charge, was $2.6 million, or $0.34 per diluted share, compared with net income, including the refinancing Refinancing An extension and/or increase in amount of existing debt. charge, of $2.4 million, or $0.30 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 7.4%, to $2,696, as a result of higher rates per mile and miles per tractor. -- Average revenue per loaded mile increased 4.5%, to $1.332, and average revenue per total mile improved 4.6%, to $1.232, 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 2.7%, to 2,188, 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 average age of our tractor fleet decreased to 2.3 years at March 31, 2004, from 2.75 years at March 31, 2003, contributing to lower maintenance costs and better fuel mileage MILEAGE. A compensation allowed by law to officers, for their trouble and expenses in travelling on public business. 2. The mileage allowed to members of congress, is eight dollars for every twenty miles of estimated distance, by the most usual roads, from his . The new federal hours of service regulations that became effective January January: see month. 4, 2004, had a minimal impact on the quarter. Our average length of haul and low percentage of loads with in-transit stops caused the new rules to impact our operations less than some other carriers. Through advanced preparation with our customers, we were able to negotiate compensation for those loads that unduly affected the productivity of our drivers and equipment. Although truckload carriers 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. may face greater challenges from the hours of service rules as freight levels increase seasonally, we believe Celadon is well-positioned to continue to offer high-quality service while improving our productivity. 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 $1.6 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 $0.3 million compared with revenue of $1.4 million and operating income of $0.2 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 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 March 31, 2004, total borrowings and capital lease obligations, including current maturities, were $50.5 million, compared with $53.2 million at December December: see month. 31, 2003. During the quarter, we accepted delivery of 242 new tractors and 250 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 258 and 685 older units, respectively. As we continue our fleet upgrade, 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. 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. During the quarter, we bought call options on that currency to minimize further risk. We estimate that the difference in exchange rates negatively impacted our earnings by $.07 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 250 basis points, and excluding this item, pretax margin would have improved 380 basis points. Looking forward, we expect to continue with our plan of using operational discipline to drive improved financial results. Based on the freight environment during the first half of April, available economic data, and the efforts of our sales force on the street, we expect freight rates to continue to increase and freight demand to support strong equipment utilization for at least the next year. High fuel prices and driver availability are the two main areas of risk we foresee fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. . Competition for drivers has become intense, and could affect productivity. However, the driver pay increase we implemented in January and our new tractor program have actually improved our percentage of trucks with drivers at March 31 compared with the same time last year, giving us reason for optimism. We do not anticipate further compensation increases for drivers at this time, but if an increase is required, we expect it to be covered by higher freight rates. Based on our assumptions of strong freight demand, fuel prices at current levels, no material increase in unmanned tractors, and continuation of our fleets upgrade, we expect additional opportunities for improvement in our financial results. Conference Call Information An investor conference call is scheduled for Tuesday Tuesday: see week. , April 20, 2004, at 11:00 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: www.viavid.net/detailpage.aspx?sid=00001B1D Celadon Group, Inc. is a truckload carrier headquartered in Indianapolis Indianapolis (ĭn'dēənă`pəlĭs), city (1990 pop. 731,327), state capital and seat of Marion co., central Ind., on the White River; selected 1820 as the site of the state capital (which was moved there in 1825), inc. 1847. that operates in the U.S., Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. . Celadon is also the majority owner of TruckersB2B, Inc., which is a provider of cost benefits to more than 16,000 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 consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (Dollars in thousands, except par value)
March 31, June 30,
2004 2003
---------------------------
ASSETS (unaudited)
---------------
Current assets:
Cash and cash equivalents $1,533 $1,088
Trade receivables, net of allowance for
doubtful accounts of $1,235 and $1,065 at
March 31 and June 30, 2003, respectively 48,466 44,182
Drivers advances and other receivables 3,632 3,432
Prepaid expenses and other current assets 6,564 7,101
Tires in service 4,771 4,714
Income tax receivable 350 ---
Deferred income taxes 5,968 2,296
---------------------------
Total current assets 71,284 62,813
Property and equipment, at cost 115,252 129,319
Less accumulated depreciation and
amortization 45,668 52,352
---------------------------
Net property and equipment 69,584 76,967
Tires in service 2,036 2,207
Goodwill 16,702 16,702
Other assets 2,763 3,384
---------------------------
Total assets $162,369 $162,073
===========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $7,877 $4,204
Accrued salaries and benefits 7,869 6,748
Accrued insurance and claims 5,801 5,163
Accrued owner-operator expense 2,552 2,728
Accrued fuel expense 2,791 3,138
Other accrued expenses 13,772 11,074
Current maturities of long-term debt 6,101 6,156
Current maturities of capital lease
obligations 9,947 14,960
Income tax payable --- 299
---------------------------
Total current liabilities 56,710 54,470
Long-term debt, net of current maturities 26,664 26,406
Capital lease obligations, net of current
maturities 7,801 13,272
Deferred income taxes 16,162 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 7,810,836 and 7,789,764 shares at
March 31, 2004 and June 30, 2003 257 257
Additional paid-in capital 60,405 60,092
Retained deficit (3,404) (761)
Accumulated other comprehensive loss (2,251) (1,947)
Treasury stock, at cost, 96,001
shares at June 30, 2003 --- (389)
---------------------------
Total stockholders' equity 55,007 57,252
---------------------------
Total liabilities and stockholders'
equity $162,369 $162,073
===========================
Key Operating Statistics
For the three For the three
months ended months ended
March 31, 2004 March 31, 2003
Operating Statistics (U.S./Canada Truckload)
Average revenue per loaded mile(a) $1.332 $1.275
Average revenue per total mile(a) $1.232 $1.178
Average revenue per tractor per week(a) $2,696 $2,510
Average miles per tractor per week 2,188 2,131
Average line-haul tractors 2,289 2,182
Tractors at end of period (b) 2,798 2,559
Trailers at end of period (b) 7,498 7,139
Operating Ratio (c) 96.0% 97.8%
(a) Excludes fuel surcharge
(b) Total Company Fleet, including tractors supplied by
owner-operators and the equipment of our Mexican subsidiary.
(c) Operating expenses as a percentage of operating revenue.
CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share amounts)
For the three For the nine
months ended months ended
March 31, March 31,
2004 2003 2004 2003
-----------------------------------------
Operating revenue $98,822 $90,686 $291,610 $275,073
Operating expenses:
Salaries, wages and employee
benefits 30,540 27,474 91,205 83,814
Fuel 15,083 13,604 41,014 35,692
Operations and maintenance 7,990 7,928 24,211 23,710
Insurance and claims 4,269 3,361 11,877 9,962
Depreciation, amortization
and impairment charge (1) 3,982 3,768 21,234 10,353
Revenue equipment rentals 8,227 5,940 22,002 17,987
Purchased transportation 18,424 20,514 57,773 65,348
Costs of products and services
sold 985 812 4,109 3,342
Professional and consulting fees 708 736 1,778 1,870
Communications and utilities 1,070 1,068 3,159 3,069
Operating taxes and licenses 1,985 1,759 6,005 5,638
General and other operating 1,650 1,706 5,191 5,184
---------------------------------
Total operating expenses 94,913 88,670 289,558 265,969
Operating income (loss) 3,909 2,016 2,052 9,104
Other (income) expense:
Interest income (7) (29) (32) (67)
Interest expense (2) 886 1,211 3,047 5,147
Other (income) expense,
net 195 40 235 (25)
----------------------------------
Income (loss) before income taxes 2,835 794 (1,198) 4,049
Income tax expense
(benefit) 1,464 340 1,445 1,676
----------------------------------
Net income (loss) $1,371 $454 $(2,643) $2,373
==================================
Earnings (loss) per common share:
Diluted earnings (loss) per share $0.17 $0.06 $(0.34) $0.30
Basic earnings (loss) per share $0.18 $0.06 $(0.34) $0.31
Weighted average number of
common shares outstanding:
Diluted 8,248 8,018 7,760 8,049
Basic 7,788 7,693 7,760 7,687
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 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 unamortized loan origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real costs for refinancing the Company's line of credit in the three months ended September 30, 2002. |
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