Continental American Transportation revenues up 180% for quarter.CALHOUN, Ga.--(BUSINESS WIRE)--April 9, 1997--Continental American Transportation Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:COAW) Wednesday announced that preliminary results for the quarter ended March 31, 1997 include operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. up over 180% to $17.5 million versus the prior year quarterly sales of $9.6 million. The increase reflects both new business activities and contributions from recent acquisitions. The company also benefited from increased margins as a result of increased logistic lo·gis·tic also lo·gis·ti·cal adj. 1. Of or relating to symbolic logic. 2. Of or relating to logistics. [Medieval Latin logisticus, of calculation outsourcing services for a number of larger national firms. "We are very pleased with the growth in both our basic transportation services and logistics outsourcing activities. The additional venues have allowed us to recruit a number of new, larger customers, whose transportation requirements are national in scope, and thus offers an opportunity for continued growth over time. We expect a profitable quarter from an operational point of view. We are focused on improving the long-term value of our business and increasing our presence in the market. This growth demonstrates the value of our approach and we expect to see continued improvements during the remainder of the year," stated Timothy Holstein, the chief executive officer of Continental. While operating revenues increased dramatically during the quarter, the company also saw significant gains in non-operating results, stemming largely from the sale of transportation equipment. Results from this area also increased over prior periods, generating over $4.7 million of non-operating revenues and nearly $1.7 million of income. "We are continually looking to improve the operational efficiencies of our business, and the use of newer, lower cost equipment provides us with a real competitive advantage. By properly turning our equipment inventory we gain from lower operating costs operating costs npl → gastos mpl operacionales while contributing to both increased cash flows and profits on a non-operating basis," explained Holstein. The company also stated that it had discussions with a number of parties with regard to potential transactions, which would further enhance its balance sheet. "We believe in a strong balance sheet and income statement. Revenues alone will not provide our shareholders with the value we all desire. Every effort will be made to improve our overall financial strength, while increasing our presence in the market through both internal growth and key acquisitions," stated Holstein. Areas under consideration include debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: or redemption, the possible sale of non-related business interests, or a capital infusion Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. , which would result in the early retirement of debt. The company stated that it had terminated its relationship with a local investment group earlier in the quarter based on their inability to complete a proposed equity transaction. 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. Its transportation operations include Carpet Transport Inc., Chase Brokerage Inc., Blue Mack Inc. and is based in Calhoun. It also owns controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in Bio-Dyne Corp. Inc., a supplier of exercise and weight lifting weight lifting, international sport, also a training technique for athletes in other sports. From the earliest times men have lifted weights as a test of strength. equipment based in Atlanta. This press release contains certain forward looking information that it 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 in customer's business cycles, rapid fluctuations in fuel pricing or availability, increased interest rates, and the availability of qualified drivers. Readers are urged to carefully review and consider the various disclosures made by the company in the press release and the company's periodic reports on its forms 10K and 10Q. CONTACT: Continental American Transportation Erik Bailey, Chief Financial Officer, 706/625-4500 or Investor Relations Investor relations The process by which the corporation communicates with its investors. 407/647-8444, ext. 71 |
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