Celadon Group Reports Record June Quarter and Full Fiscal Year Results.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 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 months and fiscal year ended June 30, 2006. Revenue for the quarter increased approximately 8.3% to $126.7 million in the 2006 quarter from $117.0 million in the 2005 quarter. Freight revenue, excluding fuel surcharges, was up 2.3% to $107.4 million in the 2006 quarter from $105.0 million in the 2005 quarter. Net income increased approximately 49% to $6.4 million in the 2006 quarter from $4.3 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 over 42% to $0.27 in the 2006 quarter from $0.19 for the same quarter last year. The June quarter marked the best earnings per share in the history of the Company. For the full year, revenue increased 9.9% to $480.2 million from $436.8 million for the prior year. Freight revenue, excluding fuel surcharges, was up 3.7% to $414.5 million for the 2006 fiscal year from $399.7 million in the 2005 fiscal year. Net income for the 2006 fiscal year was $20.5 million, or $0.88 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 $12.6 million, or $0.55 per diluted share, for the prior year, or an increase of 60%. During the quarter, the company completed a 3-for-2 stock split effected in the form of a 50% stock dividend paid on June 15, 2006. This raised the outstanding shares to approximately 23.1 million. The company previously completed a 3-for 2 stock split effected in the form of a 50% stock dividend paid on February 15, 2006. 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
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. , excluding fuel surcharge An overcharge or additional cost. A surcharge is an added liability imposed on something that is already due, such as a tax on tax. It also refers to the penalty a court can impose on a fiduciary for breaching a duty. , as a percentage of freight revenue) of 90%. Operating ratio improved to 90.3% in the June 2006 quarter, from 92.9% in the prior year's June quarter. Net income increased by 49% to $6.4 million from $4.3 million, and pre-tax earnings as a percent of freight revenue increased to 9.5% from 6.8% in the June 2005 quarter. "Our performance has improved significantly over the past four years and we believe our future results will be assisted by a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. relationship between freight demand and truckload truck·load n. The quantity that a truck can hold. truckload n → camión m lleno capacity. Even though we believe the capacity growth in our industry continues to be constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. by a shortage of qualified drivers, we are pleased that our continued commitment to the quality of life of our drivers has allowed us to increase our average seated line-haul tractors by about 100 over the past four months. Miles per truck per week were similar in both the June 2006 and June 2005 quarters. "During the quarter, we continued to strengthen our balance sheet through improving cash flow. The improved cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses has allowed us to pay cash for equipment since the June 2005 quarter, while earnings have resulted in over $120 million in 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. at June 30, 2006, from less than $100 million at June 30, 2005. "In summary, we are pleased with our performance in the June 2006 quarter, and, we believe we will be able to continue to execute on our strategic plan and produce positive results going forward." Celadon has been included in the Russell 3000 Index The Russell 3000 Index is a stock market index of US stocks. The ticker is "RUA" or similar. See Russell Indexes page for main discussion. See also the iShares Russell 3000. and NASDAQ Global Select Market, effective July 1, 2006. Conference Call Information An investor conference call is scheduled for Friday, July 28, at 10:30 a.m. ET. Steve Russell and other members of management will discuss the results of the quarter and the year. To listen and participate in the question-and-answer exchange, dial 866-700-6979 (international calls 617-213-8836) pin number 39513593 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 September 28, 2006 by dialing 888-286-8010 (international calls 617-801-6888) and entering call back code 26088885. This call is being webcast by Thomson/CCBN and can be accessed 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. . In this press release, these statements include, without limitation, statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc anticipated capacity constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. and freight demand in the industry, driver turnover, execution of our strategic plan, and our expected future results. The following factors, among others, could cause actual results to differ materially from those in forward-looking statements: the risk that our perception of industry fundamentals is incorrect; excess 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. and trailer In communications, a code or set of codes that make up the last part of a transmitted message. See trailer label. 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 That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). amounts; elevated experience in the frequency or severity of claims relating to 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 self-insured Self fund Health insurance adjective Referring to the practice of carrying an individual health insurance policy for oneself; self insurance is usually more expensive than group insurance 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 resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. 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 in·ter·mod·al adj. Relating to transportation by more than one means of conveyance, as by truck and rail: intermodal transport. competitors; regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. that increase costs or decrease efficiency, including revised hours-of-service requirements for drivers; our ability to identify acceptable acquisition candidates, consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. acquisitions, and integrate acquired operations; the timing of, and any rules relating to, the opening of the border to Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum 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 im·pede tr.v. im·ped·ed, im·ped·ing, im·pedes To retard or obstruct the progress of. See Synonyms at hinder1. [Latin imped 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.
Consolidated Balance Sheets
(Dollars in thousands, except par value)
June 30, June 30,
2006 2005
----------- ---------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $1,674 $11,115
Trade receivables, net of allowance for
doubtful accounts of $1,269 and $1,496 in 2006
and 2005, respectively 55,462 55,760
Prepaid expenses and other current assets 10,132 7,391
Tires in service 2,737 3,308
Income tax receivable 5,216 ---
Deferred income taxes 1,867 2,424
----------- ---------
Total current assets 77,088 79,998
Property and equipment, at cost 121,733 88,230
Less accumulated depreciation and amortization 30,466 30,685
----------- ---------
Net property and equipment 91,267 57,545
Tires in service 1,569 1,739
Goodwill 19,137 19,137
Other assets 1,005 2,089
----------- ---------
Total assets $190,066 $160,508
=========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,369 $4,465
Accrued salaries and benefits 16,808 11,928
Accrued insurance and claims 7,048 10,021
Accrued fuel expense 6,481 6,599
Other accrued expenses 12,018 11,270
Current maturities of long-term debt 975 1,057
Current maturities of capital lease obligations 507 788
Income tax payable --- 1,958
----------- ---------
Total current liabilities 48,206 48,086
Long-term debt, net of current maturities 9,608 4,239
Capital lease obligations, net of current
maturities 933 1,260
Deferred income taxes 9,867 8,407
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
40,000,000 shares; issued and outstanding
23,111,367 and 21,935,183 shares at June 30,
2006 and June 30, 2005 763 332
Additional paid-in capital 90,828 89,359
Retained earnings 32,092 11,544
Unearned compensation on restricted stock --- (711)
Accumulated other comprehensive loss (2,256) (2,033)
----------- ---------
Total stockholders' equity 121,427 98,491
----------- ---------
Total liabilities and stockholders' equity $190,066 $160,508
=========== =========
Key Operating Statistics
For the three For the fiscal
months ended year ended
June 30, June 30,
2006 2005 2006 2005
------- ------- ------- -------
Operating Statistics
(U.S./Canada)
Average revenue per loaded mile(a) $1.506 $1.469 $1.491 $1.424
Average revenue per total mile (a) $1.368 $1.346 $1.367 $1.316
Avg. revenue per tractor per week (a) $2,975 $2,934 $2,948 $2,841
Average miles per tractor per week 2,174 2,179 2,157 2,158
Average line-haul tractors 2,366 2,380 2,297 2,322
Tractors at end of period (b) 2,732 2,570 2,732 2,570
Trailers at end of period (b) 7,630 7,468 7,630 7,468
(a)Excluding fuel surcharges
(b)Total fleet, including equipment operated by independent
contractors and our Mexican subsidiary, Jaguar.
CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share amounts)
For the three For the fiscal
months ended year ended
June 30, June 30,
2006 2005 2006 2005
--------- --------- --------- ---------
Freight revenue $107,393 $104,976 $414,465 $399,656
Fuel surcharge revenue $19,279 $11,991 $65,729 $37,107
--------- --------- --------- ---------
Total revenue $126,672 $116,967 $480,194 $436,763
Operating expenses:
Salaries, wages and
employee benefits 38,606 34,981 144,634 133,565
Fuel 29,817 23,674 109,253 81,517
Operations and
maintenance 7,599 7,656 29,411 33,742
Insurance and claims 2,730 4,448 13,697 14,375
Depreciation and
amortization 3,158 3,929 12,442 14,870
Revenue equipment
rentals 9,257 10,296 39,601 35,848
Purchased transportation 18,370 17,650 70,305 73,012
Costs of products and
services sold 1,444 1,299 5,433 4,807
Professional and
consulting fees 500 815 2,698 2,624
Communications and
utilities 1,098 1,048 4,148 4,218
Operating taxes and
licenses 2,143 2,117 8,247 8,507
General and other
operating 1,559 1,559 6,097 6,270
--------- --------- --------- ---------
Total operating
expenses 116,281 109,472 445,966 413,355
Operating income 10,391 7,495 34,228 23,408
Other (income) expense:
Interest income (34) (4) (153) (12)
Interest expense 206 330 933 1,430
Other 6 3 34 13
--------- --------- --------- ---------
Income before income taxes 10,213 7,166 33,414 21,977
Income tax expense 3,825 2,853 12,866 9,397
--------- --------- --------- ---------
Net income $6,388 $4,313 $20,548 $12,580
========= ========= ========= =========
Earnings per common share:
Diluted earnings per
share $0.27(1) $0.19(1) $0.88(2) $0.55(2)
Basic earnings per share $0.28(1) $0.19(1) $0.90(2) $0.56(2)
Weighted average number of
common shares outstanding:
Diluted 23,545(1) 23,130(1) 23,386(2) 23,013(2)
Basic 23,063(1) 22,570(1) 22,828(2) 22,286(2)
(1)Earnings per share amounts and average number of shares
outstanding have been adjusted to give retroactive effect to a
three-for-two stock split effected in the form of a 50% stock
dividend paid on June 15, 2006.
(2)Earnings per share amounts and average number of shares
outstanding have been adjusted to give retroactive effect to two
three-for-two stock splits effected in the form of a 50% stock
dividend paid on February 15, 2006 and June 15, 2006.
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