Consolidated Freightways Announces Third Quarter Results.Business Editors VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , Wash.--(BUSINESS WIRE)--Oct. 24, 2001 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 results for the third quarter. Revenue of $571.9 million was down 3.5 percent compared to last year. The operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $26.1 million compares to 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 $5.6 million for the same period last year. Total 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. was down one percent and 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). was down 3.2 percent to $17.24. CF's third quarter 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. loss was $29.9 million (-$1.36 per basic share) compared to net income last year of $1.3 million ($0.06 per basic share.) The company explained that factors contributing to the net loss included declines in tonnage and yield, changes in freight mix involving increases in smaller shipments and declines in load factor. The company had fewer capital gains than last year and continued expansion costs at CF AirFreight air·freight n. 1. A system of transporting freight by air. 2. The amount charged for transporting freight by air. air also contributed to the loss. Chief Executive Officer Pat Blake commented: "The continuing economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. is affecting CF's ability to show positive financial results. The impact of the tragic events of September September: see month. 11 on national and international economies-- especially the manufacturing and retail sectors-- compounds this problem and frustrates our efforts to return the company to profitability. "We are working around these major obstacles with a very specific business plan based on reversing yield declines, adjusting freight mix, further improving operational productivity and containing costs," Blake said. "Addressing yield and mix, we have formed a profit-improvement team to review all business with high operating costs operating costs npl → gastos mpl operacionales . This will be an ongoing project. Specific to the small shipment mix issue, our sales team is systematically adjusting our pricing in the under- under- pref. 1. Beneath or below in position: underground. 2. Inferior or subordinate in rank or importance: undersecretary. 3. 500 pound weight bracket In programming, brackets (the [ and ] characters) are used to enclose numbers and subscripts. For example, in the C statement int menustart [4] = ; the [4] indicates the number of elements in the array, and the contents are enclosed in curly braces. . "On the operations side, we have adjusted our freight network to allow better load planning and reduce cost through improved load factor. This improves operational flexibility, yielding greater efficiencies and enabling us to reduce linehaul costs to match various business levels. Over the past month this realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. has resulted in a 1700-pound positive swing in load factor. "Our system-wide terminal process improvement initiative, with a goal to permanently remove $125 million of operational costs by the end of next year, continues to make progress despite the challenges of the depressed economy. For the quarter, P&D productivity improved to 2.47 bills per hour compared to 2.35 last year and dock bills were up to 3.14 from 3.01. "The company's premium service offerings continue to be a focus for our sales force. CF's premium services include expedited PrimeTime service and Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. trans-border service. And more than 25 percent of the company's shipments are now moving in the all-important all-im·por·tant adj. Of the greatest importance; crucial. all  -im·por regional two-day lanes.
"Adjusting our workforce to business levels is a necessary result of this depressed economy. Since June, our hourly workforce has been reduced by over six percent and our management workforce has been reduced by 10 percent. "During these difficult times, CF is pleased with the financial relationship and support from GE Capital. GE Capital has waived the previously reported requirement that CF obtain additional financing. CF is currently in compliance with the GE Capital credit agreement. With the demand for trucking services weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. during a
traditionally strong shipping season, we expect to need additional
financing this quarter. CF is working with other financial institutions
and expects to have long-term financing Long-term financingLiabilities repayable in more than one year plus equity. in place when needed," Blake said. Statements contained in this press release that are not based on historical fact are 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 statements are necessarily dependent on assumptions and future events and are subject to risks and uncertainties which could cause the Company's actual performance to be materially different. Variable factors include general economic conditions; general business conditions of customers served, and other shifts in market demand; pricing pressures, rate levels and capacity in the motor-freight industry; future operating costs, such as employee wages and benefits, fuel prices, and workers compensation and self-insurance self-insurance, n the setting aside of funds by an individual or organization to meet anticipated dental care expenses or dental care claims, and accumulation of a fund to absorb fluctuations in the amount of expenses and claims. claims; weather; tax matters; technology costs; legal claims; timing and amount of capital expenditures; successful execution of operating plans; and execution of the sales plans, freight mix adjustment strategy, yield improvement, revenue enhancement revenue enhancement An increase in revenues, especially by way of increased taxes. Revenue enhancement includes reducing taxpayer deductions and eliminating tax credits. , process and operations improvements, and cost reduction efforts mentioned above. Please see the Company's public filings with the Securities and Exchange Commission for other factors detailed from time to time which could materially affect forward-looking statements. Consolidated Freightways Corporation is comprised of national less-than-truckload carrier Consolidated Freightways, third party logistics provider Redwood redwood: see sequoia; brazilwood. redwood or sequoia Coniferous evergreen timber tree (Sequoia sempervirens) of the family Taxodiaceae, found in the fog belt of west-coastal North America. Systems, Canadian Freightways LTD LTD 1 Laron-type dwarfism 2 Leukotriene D 3 Long-term depression, see there 4. Long-term disability , Transportes CF Alfri-Loder, the company's joint venture in Mexico and CF AirFreight, an air freight air freight n → flete m por avión air freight n → fret aérien air freight air n → Luftfracht f forwarder Forwarder Acts as a travel agent for cargo. A forwarder specializes in arranging the transport and completing required shipping documentation. Some are affiliated with NVOCC services. In the United States they are licensed by the Federal Maritime Commission. . Consolidated Freightways is a transportation company primarily providing less-than-truckload long-haul freight transportation throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. using its system of 300 terminals and over 20,000 employees.
CONSOLIDATED FREIGHTWAYS CORPORATION
STATEMENTS OF CONSOLIDATED OPERATIONS
(Dollars in thousands except per share amounts)
For the Three Months Ended
September 30,
--------------------------------
2001 2000
------------- -------------
REVENUES $ 571,947 $ 592,902
------------- -------------
COSTS AND EXPENSES
Salaries, wages and benefits 381,181 372,923
Operating expenses 113,164 109,279
Purchased transportation 56,231 54,010
Operating taxes and licenses 17,079 16,932
Claims and insurance 15,587 21,490
Depreciation 14,776 12,674
------------- -------------
598,018 587,308
------------- -------------
OPERATING INCOME (LOSS) (26,071) 5,594
------------- -------------
OTHER INCOME (EXPENSE)
Investment income 167 339
Interest expense (2,334) (1,273)
Miscellaneous, net 236 (95)
------------- -------------
(1,931) (1,029)
------------- -------------
Income (loss) before income taxes (28,002) 4,565
Income taxes 1,923 3,244
------------- -------------
NET INCOME (LOSS) $ (29,925) $ 1,321
============= =============
Basic average shares outstanding 22,045,529 21,507,159
Diluted average shares outstanding 22,045,529 21,531,817
Basic Earnings (Loss) per Share: $ (1.36) $ 0.06
============= =============
Diluted Earnings (Loss) per Share: $ (1.36) $ 0.06
============= =============
CONSOLIDATED FREIGHTWAYS CORPORATION
STATEMENTS OF CONSOLIDATED OPERATIONS
(Dollars in thousands except per share amounts)
For the Nine Months Ended
September 30,
----------------------------------
2001 2000
--------------- ---------------
REVENUES $ 1,736,940 $ 1,772,632
--------------- ---------------
COSTS AND EXPENSES
Salaries, wages and benefits 1,146,796 1,130,554
Operating expenses 340,123 336,040
Purchased transportation 169,371 149,465
Operating taxes and licenses 49,910 53,492
Claims and insurance 46,750 57,001
Depreciation 41,553 39,596
--------------- ---------------
1,794,503 1,766,148
--------------- ---------------
OPERATING INCOME (LOSS) (57,563) 6,484
--------------- ---------------
OTHER INCOME (EXPENSE)
Investment income 557 1,231
Interest expense (6,227) (3,580)
Miscellaneous, net (77) (4,327)
--------------- ---------------
(5,747) (6,676)
--------------- ---------------
Loss before income taxes (63,310) (192)
Income taxes 3,491 1,359
--------------- ---------------
NET LOSS $ (66,801) $ (1,551)
=============== ===============
Basic average shares outstanding 21,929,171 21,439,193
Diluted average shares outstanding 21,929,171 21,439,193
Basic Loss per Share: $ (3.05) $ (0.07)
=============== ===============
Diluted Loss per Share: $ (3.05) $ (0.07)
=============== ===============
CONSOLIDATED FREIGHTWAYS CORPORATION
CONDENSED BALANCE SHEETS
(Dollars in thousands)
September 30, December 31,
2001 2000
------------ ------------
ASSETS
Current assets $ 515,060 $ 509,735
Property, plant and equipment, net 367,454 348,794
Other assets 88,030 68,153
------------ ------------
------------ ------------
Total Assets $ 970,544 $ 926,682
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 495,565 $ 395,458
Long-term debt 15,100 15,100
Other long-term liabilities 275,152 263,940
Shareholders' equity 184,727 252,184
Total Liabilities and
------------ ------------
Shareholders' Equity $ 970,544 $ 926,682
============ ============
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