Continental American Transportation reports loss in 1st quarter.CALHOUN, Ga.--(BUSINESS WIRE)--Nov. 21, 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) reported consolidated results for the three months ended Sept. 30, 1996, with transportation revenue of $19,658,693, 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. of $279,565 and a net loss of $678,349, or $.15 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . This compares with transportation revenue of $3,044,361, an 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 $193,250 and a net loss of $233,466 or $.10 per share for the first quarter of the prior year. The company's depreciation and amortization for the three-month period was $2,244,722 compared to $331,674 for the same period last year. The revenues of the company are presented on a consolidated basis and are cumulative results from operations of the company's three subsidiaries, Blue Mack Transport reported revenue of $2,795,557 and a net loss of $76,948 or $.02 loss for the three months ended Sept. 30, 1996. Carpet Transport reported revenue of $15,347,415 and a net loss of $191,550 or $.04 loss per share. Chase brokerage reported revenue of $1,713,934 and net income of $356,123 or $.08 income per share. The parent incurred general and administrative expenses resulting in a net loss of $501,606 or $.11 loss per share. In addition, the Continental posted a loss of $264,375 or $.06 loss per share attributable to depreciation of excess value of equipment and amortization of goodwill resulting from the 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. acquisition. Several factors are attributed to the lower than expected revenues and the corresponding net loss for the quarter. In particular, the revenue reported by Carpet Transport was 18% lower than anticipated. This is attributed to the less than expected utilization of revenue equipment. The 650 tractor fleet of Carpet Transport averaged $7,870 in revenue per tractor per month versus $10,195 the previous quarter or a 33% drop. This is partly due to the lower inbound in·bound 1 adj. Bound inward; incoming: inbound commuter traffic. Adj. 1. inbound produce freight rates Noun 1. freight rate - the charge for transporting something by common carrier; "we pay the freight"; "the freight rate is usually cheaper" freightage, freight . The consolidation of A&P Transportation into CTI during the fourth quarter yielded only administrative efficiency but with no corresponding operational revenue results. Conversely, Blue Mack's operating performance improved as the loss from operations was $31,093, an operating ratio Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: of 101% versus last year's 108% operating ratio. The Blue Mack fleet averaged better than expected $9,800 revenue per tractor. 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: "The results from this quarter are disappointing from an operational perspective, which translated into a lower than expected decrease in revenues and corresponding profitability. We did not expect our fleet's utilization would decrease when we merged the CTI and A&P operations on May 1, 1996, however, the operational problems have been identified, are being addressed and will be corrected this quarter. The results of these changes should get us back on track to meet our annual internal projections. On a positive note, despite the reduced utilization and corresponding revenue, we still achieved positive 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 of $3,280,000 during the quarter, a direct result of our cost reduction programs initiated in May of 1996. The reduction of 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). , greater utilization of our equipment, the infusion of our new tractors, and implementation of a modern management information system during the next two quarters are the ingredients needed to meet our forecasted results." Continental American Transportation Inc. is a trucking and logistics management Logistics Management is that part of Supply Chain Management that plans, implements, and controls the efficient, effective, forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet 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. This press release contains certain forward looking information that is subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Without limitation these risks and uncertainties include economic recessions or downturns is customer's business cycles, rapid fluctuations in fuel pricing or availability, increase in interest rates, and the availability of qualified drivers. Readers are urged to carefully review and consider the various disclosures made by the company in this press release and in the company's periodic reports on its form 10K and 10Q. -0-
CONTINENTAL AMERICAN TRANSPORTATION INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
Sept. 30,
1996 1995
Operating Revenues $19,658,693 3,044,361
Operating Expenses
Purchased transportation 1,719,951 504,367
Salaries and benefits 6,210,808 1,275,904
Operating supplies and expenses 5,995,718 606,513
Operating taxes and licenses 131,479 88,134
Claims and insurance 434,917 81,148
Communications and utilities 354,225 33,998
General and administrative 2,281,641 350,368
(Gain)/Losses sale of equipment 5,667 (34,495)
Depreciation and amortization 2,244,722 331,674
Total operating expenses 19,379,128 3,237,611
Operating Income 279,565 (193,250)
Other income
Interest expense (981,698) (56,745)
Other Income 23,784 16,529
(Loss) before income taxes (678,349) (233,466)
Provision for income taxes -- --
Net Income (loss) (678,349) (233,466)
Net (loss) Per Share (.15) (.10)
Weighted Average
Common Shares Outstanding 4,623,153 2,312,656
CONTACT: Continental American Transportation Erik Bailey, CFO See Chief Financial Officer. 706/625-4500 |
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