Continental American Transportation Inc. reports record freight volumes and plans expansion of its fleet.CALHOUN, Ga.--(BUSINESS WIRE)--July 31, 1996--Continental American Transportation 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 OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :COAW) announced record volume from its Carpet Transport Inc. (CTI (Computer Telephone Integration) Combining data with voice systems in order to enhance telephone services. For example, automatic number identification (ANI) allows a caller's records to be retrieved from the database while the call is routed to the appropriate party. ) subsidiary during the quarter ended June 30, 1996. Carpet Transport consolidated a record 16.1 million pounds of carpet for the last week ended June 30, 1996, and 62.4 million pounds of carpet for the month of June. This represented over $3 million in outbound consolidated billings for the week of June, which resulted in total billings of over $7 million for the month of June. The volume reported during the month of June were historical records for Carpet Transport, eclipsing historical months by over 15%. The increased business combined with Continental's cost cutting during the last quarter has prompted the board of Continental to approve the expansion of its tractor fleet. Continental is currently finalizing the purchase of 300 new tractors to be delivered over the next 12 months. Pursuant to the transaction the company will trade out 200 existing tractors as the new units are being delivered. Continental estimates that over the next four quarters, the company will realize an estimated $3.5 million gain on the sale of the 200 units. Timothy Holstein, Continental's 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. stated: "Since taking operating control of Carpet Transport, we have increased sales by 50% and reduced our fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). by 5%. I believe the surge in business at Carpet Transport was a combination of increased volume at the mills, and area that we have 25% market square, and the return of customers once our service reached a satisfactory level. The expansion of our team base from 50 to 150 has dramatically improved services to the Southwest and California, two areas of business that increased by 100% compared to six months ago. While our vacancy rate of empty tractors is 3.5%, this is still far below the industry average of 8%, which is attributed in large part to the condition of our fleet, which is considered one of the finest in the industry. The determining factors attributed to our decision to expand the fleet in the next fiscal year was improvement of Carpet Transport's sales, cash flow, 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. , and the residual economic benefit of selling 200 units. The gain from the sale of its equipment will improve our financial results and provide additional working capital for expansion." Continental American Transportation Inc. is a trucking company with operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. engaged in the transportation of food, beverages and textiles. Continental ranks in the top 20 specialized trucking companies based on its present revenue base of $90 million in sales. CONTACT: Investor Resource Services Christy chris·ty n. Variant of christie. Miller, 407/647-8444 |
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