Continental American Transportation Inc. projects $2.8 million revenues in latest quarter, declares 3% stock dividend.PHILADELPHIA--(BUSINESS WIRE)--Jan. 17, 1996--Continental American Transportation Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:COAW) announced Wednesday that it expects to post revenues of approximately $2.8 million in the second quarter ended Dec. 31, 1995, and that the company's board of directors has declared a 3% stock dividend for all shareholders of record on Jan. 30, 1996. Continental expects to show an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. in the December quarter from its Blue Mack Transport Inc. operating subsidiary, although the company projects a loss of approximately $150,000 for the quarter, primarily related to professional expenses related to the pending acquisition of Carpet Transport Inc. and two affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. , A&P Transportation Inc. and Chase Brokerage Inc. Company management said it has secured the necessary commitments to close the acquisition, previously announced Nov. 16, 1995. The transaction is valued at $17,290,000 in equity- and asset-based lending Asset-Based Lending A business loan secured by collateral (assets). The loan, or line of credit, is secured by inventory, accounts receivable and/or other balance-sheet assets. Also known as "commercial finance" or "asset-based financing". and remains on track for scheduled closing in February 1996, according to company management. Timothy Holstein, president and chief executive officer of Continental American Transportation Inc., stated: "By declaring the 3% dividend, we wanted to demonstrate to our shareholders that we appreciate their support. This is the most immediate way to provide a reasonable return to our shareholders, since we believe the current stock price does not yet represent the true value of our company. That should begin to change as the positive effects of the integration of Blue Mack, Herr's Transport and Carpet Transport more fully take shape and are quantitatively measured in the third and fourth quarters." In a further development, the company announced that it has responded to comments from the National Association of Securities Dealers National Association of Securities Dealers (NASD) Nonprofit organization formed under the joint sponsorship of the investment bankers' conference and the SEC to comply with the Maloney Act, which provides for the regulation of the OTC market. relating to its application for listing on the 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 Small Cap Market, and anticipates a favorable determination from the NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). in the near future. Continental American Transportation Inc. is an acquisition-oriented company engaged in the management of operating businesses in the transportation, distribution and logistics of wholesale and retail goods. CONTACT: Continental American Transportation Inc. Brian Henninger, 610/327-8275 or Investor Resource Services Inc., Winter Park, Fla. Dixie Campbell, 407/657-1300 |
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