Consolidated Freightways Announces Third Quarter Growth in Revenue and Tonnage.MENLO PARK Menlo Park. 1 Residential city (1990 pop. 28,040), San Mateo co., W Calif.; inc. 1874. Electronic equipment and aerospace products are manufactured in the city. Menlo College and a Stanford Univ. research institute are there. 2 Uninc. , Calif.--(BUSINESS WIRE)--Oct. 18, 1999-- Consolidated Freightways Consolidated Freight was the 3rd biggest trucking company in the US. In the 1930s they started their own truck manufacturing operation, Freightliner, now part of DaimlerChrysler. Corporation (Nasdaq:CFWY CFWY Consolidated Freightways ) today announced third quarter revenue of $625.5 million, a 9.5 percent improvement over the same period last year. Revenue through the first nine months improved 6.3 percent over last year to $1.77 billion. Net income for the quarter and through the first nine months were respectively $4.7 million ($0.21 per basic share) and $14.0 million ($0.62 per basic share) compared with last year's third quarter of $9.2 million ($0.41 per basic share) and $23.7 million ($1.03 per basic share) through the first nine months. 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. for the quarter was $9.7 million, compared with $17.4 million last year. Operating income through the first nine months was $27.9 million compared with $47.7 million last year. Less than truckload Less-Than-Truckload (LTL) shipping is the transportation of relatively small freight. The alternatives to LTL carriers are parcel carriers or full truckload carriers. Parcel carriers usually handle small packages and freight that can be broken down in to units less than 150 US tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. increased by 2.8 percent and total tonnage grew by 3.1 percent for the quarter. Total shipments increased by 5.0 percent. For the quarter, revenue per hundredweight hun·dred·weight n. pl. hundredweight or hun·dred·weights Abbr. cwt 1. A unit of weight in the U.S. Customary System equal to 100 pounds (45.36 kilograms). rose 4.0 percent to $16.57 from $15.93 last year. W. Roger Curry, chief executive officer, commented on the quarter. "Our investment of operating resources and CF team energy in our system-wide service improvement initiative is paying off. Service has improved nearly ten percent this quarter and continual service improvement is our long-range long-range adj. 1. Of, suitable for, or reaching long distances: long-range missiles. 2. Requiring or involving an extended span of time: long-range planning. objective. "We also have seen a change in our freight The price or compensation paid for the transportation of goods by a carrier. Freight is also applied to the goods transported by such carriers. The liability of a carrier for freight damaged, lost, or destroyed during shipment is determined by contract, statute, or mix since the first of the year and this has resulted in less profitable growth than expected. The closures of two major LTL LTL - Linear Temporal Logic carriers brought freight into our system that has had an adverse effect on our profile. As well, we have seen a larger number of lighter shipments in our network with more costly handling characteristics. "I am confident, though, in the aggressive plan developed by our team enabling us to make progress in our efforts to improve our yield and mix of freight and return to our long term strategy of profitable growth." The company also announced that it has signed and closed a new unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. credit facility in the amount of $175 million from a consortium of banks headed by ABN Amro ABN AMRO Algemene Bank Nederland-Amsterdam Roterdam Bank (Dutch bank) and including Bank One and Union Bank. The new facility is a 3-year revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. and replaces a $150 million secured line of credit. The primary purpose of the facility is to satisfy the company's letters of credit requirements. The refinancing Refinancing An extension and/or increase in amount of existing debt. also increases CF's flhould not be relied upon as predictions of the future. Such statements are dependent on assumptions that may anada 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. using its system of 350 terminals and 21,000 employees. The company also provides international freight services between the U.S. and more than 80 countries.
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CONSOLIDATED FREIGHTWAYS CORPORATION
STATEMENTS OF CONSOLIDATED INCOME
(Dollars in thousands except per share amounts)
For the Three Months Ended
September 30,
REVENUES $ 13,175
Depreciation 619 1,428
Interest expense (922) (980)
Miscellaneous, net (56) (279)
------------ ------------
(359) 169
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Income before income taxes 9,364 17,566
Income taxes 4,634 8,335
------------ ------------
NET INCOME $ 4,730 $ 9,231
============ ============
Basic average shares outstanding 22,564,538 22,710,557
Diluted average shares outstanding 22,564,538 22,710,557
Basic Earnings per Share: $ 0.21 $ 0.41
============ ============
Diluted Earnings per Share: $ 0.21 $ 0.41
============ ============
CONSOLIDATED FREIGHTWAYS CORPORATION
STATEMENTS OF CONSOLIDATED INCOME
(Dollars in thousands except per share amounts)
For the Nine Months Ended
September 30,
------------ ------------
1999 1998
------------ ------------
REVENUES $ 1,773,536 $ 1,668,720
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COSTS AND EXPENSES
Salaries, wages and benefits 1,134,290 1,079,802
Operating expenses 299,224 264,730
Purchased transportation 176,475 149,261
Operating taxes and licenses 52,479 50,768
Claims and insurance 43,797 39,316
Depreciation 39,394 37,140
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1,745,659 1,621,017
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OPERATING INCOME 27,877 47,703
------------ ------------
OTHER INCOME (EXPENSE)
Investment income 2,273 3,843
Interest expense (2,840) (2,947)
Miscellaneous, net (641) (1,157)
------------ ------------
(1,208) (261)
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Income before income taxes 26,669 47,442
Income taxes 12,681 23,721
------------ ------------
NET INCOME $ 13,988 $ 23,721
============ ============
Basic average shares outstanding 22,599,509 22,928,421
Diluted average shares outstanding 22,874,547 23,716,953
Basic Earnings per Share: $ 0.62 $ 1.03
============ ============
Diluted Earnings per Share: $ 0.61 $ 1.00
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CONSOLIDATED FREIGHTWAYS CORPORATION
CONDENSED BALANCE SHEETS
(Dollars in thousands)
September 30, December 31,
1999 1998
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ASSETS
Current assets $499,073 $479,441
Property, plant and equipment, net 361,721 360,772
Other assets 80,150 50,177
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Total Assets $940,944 $890,390
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $397,645 $359,504
Long-term debt 15,100 15,100
Other long-term liabilities 250,020 249,068
Shareholders' equity 278,179 266,718
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Total Liabilities and
Shareholders' Equity $940,944 $890,390
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