Dynamex Announces First Quarter Fiscal Year 2006 Results.DALLAS Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. -- 17th graph graph, figure that shows relationships between quantities. The graph of a function y=f (x) is the set of points with coordinates [x, f (x)] in the xy-plane, when x and y are numbers. , first sentence of release should read: The Company continues to expect FY 2006 net income to range from $1.05 to $1.15 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share (sted The Company continues to expect FY 2006 net income to range from $1.00 to $1.10 per fully diluted share). Also, table header (1) In a disk or tape file, a set of data that resides permanently at the beginning. It may be used for identification only (type of file, date of last update, etc.), or it may describe the structural layout of the contents, as is common with many document and database formats. for fourth table should read 2005 (sted 2003). The corrected release reads: DYNAMEX ANNOUNCES FIRST QUARTER FISCAL YEAR 2006 RESULTS Dynamex 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 :DDMX): First Quarter Highlights: --Net income of $3.2 million, $0.27 diluted earnings per common share. --Share buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may to date reaches 571,000 shares, 4.9% of outstanding shares. Dynamex Inc. (NASDAQ: DDMX), the leading provider of same-day delivery and logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. services in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , today announced net income of $3.2 million or $0.27 fully diluted net income per share for the FY 2006 first quarter compared to $3.2 million or $0.27 per fully diluted share in the prior year. Sales increased 18.3% to $91 million this quarter compared to the prior year. The current year quarter had one more business day than the prior year quarter. On a sales per day basis, sales increased 16.5%. The exchange rate between the Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents and the U.S. dollar was 8.1% higher this quarter than the same quarter last year. Excluding the impact of the stronger Canadian dollar, sales per day increased 13.5%. Also during the quarter, the price of fuel spiked spike 1 n. 1. a. A long, thick, sharp-pointed piece of wood or metal. b. A heavy nail. 2. A spikelike part or projection, as: a. dramatically due to hurricanes in the Gulf Coast of the U.S. The Company estimates that higher fuel surcharges account for between 3% and 4% of the increase in sales this quarter. Selling, general and administrative ("SG&A") expenses increased 17.3% to $19 million compared to the same quarter last year. As a percentage of sales, SG&A expenses were 21.0% in current year quarter compared to 21.2% in the prior year. Over twenty percent of the increase is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the stronger Canadian dollar. The current year quarter includes charges totaling approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $320,000 for severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when payments and bonus awards. As well, the investment the Company is making in the sales organization, the IT infrastructure and in mid-level management and capacity managers in field operations negatively impacted the leverage we normally achieve from increased sales. Management expects this to improve over the remaining quarters of this fiscal year. 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. declined 4.5% compared to the prior year quarter. Purchased transportation costs, the largest component of cost of sales represented 65.4% of sales in the current year quarter compared to 63.3% in the prior year. The impact of route optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. for certain customers last year, rapidly escalating fuel prices that were not recovered timely due to fuel surcharge An overcharge or additional cost. A surcharge is an added liability imposed on something that is already due, such as a tax on tax. It also refers to the penalty a court can impose on a fiduciary for breaching a duty. mechanisms in certain contracts, "Greenfield Greenfield, town (1990 pop. 18,666), seat of Franklin co., NW Mass., at the confluence of the Deerfield and Green rivers, near their junction with the Connecticut; settled 1686, set off from Deerfield and inc. 1753. " operations in North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. and Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and where margins are lower during initial phases and the continuing shift in business mix are the primary reasons for the increase in purchased transportation costs. Income tax expense was $1.7 million, 35.1% of income before taxes in the current year quarter compared to $1.8 million, 36.5% of income before taxes in the prior year. The current year period benefited from a lower effective 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. income tax rate. First Quarter Highlights "I am pleased that earnings for the quarter were slightly ahead of projections," said Dynamex 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. , Rick McClelland McClelland is the surname of:
See peg. and our operations in the southeast Southeast or south east is the ordinal direction halfway between south and east. It the opposite of northwest. Southeast or South East can refer to: "Based on our first quarter performance and the underlying trends in our business, we believe the strategic and tactical choices we made during fiscal 2005 have positioned the Company for increased growth and profitability," added McClelland. "Our national account base and sales pipeline remain strong. Sales overheads are in place and the sales organization has been substantially strengthened. We continue to be extremely focused on growth and managing our overall costs and expenses, especially purchased transportation costs. "Dynamex is a non-asset based transportation and logistics firm with direct costs that are largely variable with revenue," concluded McClelland. "This model has historically produced strong levels of cash flow and during this quarter we were able to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. this by implementing an open market share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program designed to be accretive and funded with available cash. Our repurchases to date total 571,000 shares or 4.9% of our total outstanding stock." Long-Term Debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. Total long-term debt was $9.3 million at October October: see month. 31, 2005 compared to zero at July July: see month. 31, 2005. The stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program, along with the growth in accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , were the primary reasons for the increase. The Company intended to use excess cash from Canada to fund the stock repurchase program. However, management had not completed its analysis of the most tax efficient method for cash repatriation Repatriation The process of converting a foreign currency into the currency of one's own country. Notes: If you are American, converting British Pounds back to U.S. dollars is an example of repatriation. at the end of the first quarter. The Company will repatriate repatriate To bring home assets that are currently held in a foreign country. Domestic corporations are frequently taxed on the profits that they repatriate, a factor inducing the firms to leave overseas the profits earned there. the Canadian cash as a regular dividend before the end of the 2005 calendar year and reduce outstanding debt. Margins The gross margin was 26.9% of sales in the current quarter, down from 28.3% in the same quarter last year. The impact of rapidly escalating fuel prices, "Greenfield" operations in Florida and North Carolina and seasonality in the business of certain customers contributed to the decline in the gross margin. Management expects the gross margin percentage to improve slightly during the remainder of this fiscal year. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
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 Net cash used in operating activities was $2.0 million compared to $1.8 million in the prior year. This increase is primarily attributable to the growth in accounts receivable. The increase in U.S. receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed , above the growth in sales, was primarily attributable to delayed payments from Florida based customers due to hurricane Wilma Hurricane Wilma was the most intense hurricane ever recorded in the Atlantic basin. Exceeding the 21 storms of the 1933 season, Wilma was the twenty-second storm (including the subtropical storm discovered in reanalysis), thirteenth hurricane, sixth major hurricane, and fourth . Payments on those accounts were received in November November: see month. . In Canada, several large accounts paid slower this quarter than in prior periods, there was a normal delay in payment from new customer startups and there was an increase in customers utilizing third-party payment companies that tends to delay payment. We have been addressing these issues and we expect to see considerable improvement by the end of the FY 2006 second quarter. Net cash provided from operations before working capital changes was $4.7 million in the current year compared to $4.9 million in the prior year. Depreciation and Amortization Depreciation and amortization ("D&A") in the current quarter increased to $494,000 from $376,000 in the first quarter last year due principally to implementation of the DECS DECS Department of Education, Culture and Sports (Filipino; Kagawaran ng Edukasyon, Kultura at Palakasan; Philippines) DECS Domino Enterprise Connection Services (Lotus) system in the fourth quarter of FY 2005. As a percent of sales, D&A was 0.5%, the same percentage as the prior year. Interest Expense Interest expense for the three months ended October 31, 2005 was $84,000, 46% below the prior year period but higher than plan due to the delay in repatriation of cash from Canada. This decrease from the prior year is primarily attributable to lower average outstanding debt. Outlook The following outlook for FY 2006 is provided in connection with Regulation FD and to ensure that all investors continue to have equal access to information. The following outlook contains 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. that involve assumptions regarding Company operations and future prospects. Caution should be taken that the actual results could differ materially from those stated or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in this and other Company communications. The Company continues to expect year-over-year sales growth of between 8% and 12% for FY 2006. The Company continues to expect FY 2006 net income to range from $1.05 to $1.15 per fully diluted share. Investor Call The Company will host an investor conference call on Thursday Thursday: see week. , December December: see month. 8, 2005 at 10:00 a.m. Central Standard Time. All interested parties may access the call Toll-Free at 1-877-407-8289. A participant will need the following information to access the conference call: Company name - "Dynamex". A telephone replay of the conference call will be available through December 15, 2005 at, Toll-Free, 1-877-660-6853, enter Account Number 3055 and Conference ID Number 179818. The conference call will also be available on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the through CCBN's website, located at www.earnings.com, and the link is also available through the Company's website at www.dynamex.com. To listen to the live call, please go to the website at least fifteen minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. For those who cannot listen to the live broadcast, an Internet replay will be available shortly after the call for 30 days. Dynamex is the leading provider of same-day delivery and logistics services in the United States and Canada. Additional press releases and investor relations Investor relations The process by which the corporation communicates with its investors. information as well as the Company's Internet e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. services package, dxNow(TM), is available at www.dynamex.com. This release contains forward-looking statements that involve assumptions regarding Company operations and future prospects. Although the Company believes its expectations are based on reasonable assumptions, such statements are subject to risk and uncertainty, including, among other things, the effect of changing economic conditions, acquisition strategy, competition, foreign exchange, the ability to meet the terms of current borrowing arrangements, and risks associated with the local delivery industry. These and other risks are mentioned from time to time in the Company's filings with the Securities and Exchange Commission. In light of such risks and uncertainties, the Company's actual results could differ materially from such forward-looking statements. The Company does not undertake any obligation to publicly release any revision to any forward-looking statements contained herein to reflect events and circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or occurring after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrence of unanticipated events. Caution should be taken that these factors could cause the actual results to differ from those stated or implied in this and other Company communications.
DYNAMEX INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands except per share data)
(Unaudited)
October 31, July 31,
2005 2005
---------- ----------
ASSETS
CURRENT
Cash and cash equivalents $ 11,321 $ 11,678
Accounts receivable (net of allowance for
doubtful accounts of $842 and $767,
respectively) 38,544 31,703
Prepaid and other current assets 2,629 3,115
Deferred income tax 1,942 1,992
---------- ----------
Total current assets 54,436 48,488
Property and equipment - net 5,261 5,597
Goodwill 46,464 46,088
Intangibles - net 444 463
Deferred income taxes 7,062 7,625
Other assets 1,441 1,214
---------- ----------
Total assets $ 115,108 $ 109,475
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
CURRENT
Accounts payable trade $ 9,177 $ 11,145
Accrued liabilities 16,376 14,426
---------- ----------
Total current liabilities 25,553 25,571
Long-term debt 9,308 8
---------- -----------
Total liabilities 34,861 25,579
---------- ----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock; $0.01 par value, 10,000
shares authorized; none outstanding -- --
Common stock; $0.01 par value, 50,000 shares
authorized; 11,620 and 11,612 outstanding,
respectively 116 116
Additional paid-in capital 77,396 77,196
Treasury stock, 500 shares (7,792) --
Retained earnings 6,949 3,768
Unrealized foreign currency translation
adjustment 3,578 2,816
---------- ----------
TOTAL STOCKHOLDERS' EQUITY 80,247 83,896
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 115,108 $ 109,475
========== ==========
DYNAMEX INC.
CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
(in thousands except per share data)
Three months ended
October 31,
----------------------
2005 2004
---------- ----------
(Unaudited)
Sales $ 90,569 $ 76,560
Cost of sales:
Purchased transportation 59,220 48,437
Other 6,957 6,414
---------- ----------
66,177 54,851
---------- ----------
Gross profit 24,392 21,709
Selling, general and administrative
expenses
Salaries, wages & employee benefits 13,405 11,388
Other 5,617 4,833
---------- ----------
19,022 16,221
---------- ----------
Depreciation and amortization 494 376
(Gain) loss on disposal of property
and equipment -- 5
---------- -----------
Operating income 4,876 5,107
Interest expense 84 157
Other (income) expense (107) (50)
---------- ----------
Income before taxes 4,899 5,000
Income tax expense 1,718 1,827
---------- ----------
Net income $ 3,181 $ 3,173
========== ==========
Basic earnings per common share: $ 0.28 $ 0.28
Diluted earnings per common share: $ 0.27 $ 0.27
Weighted average shares:
Common shares outstanding 11,543 11,445
Adjusted common shares - assuming
exercise of stock options 11,792 11,695
DYNAMEX INC.
CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
(in thousands except percentage data)
(Unaudited)
Continued
Three months ended
October 31,
------------------
2005 2004
------- -------
Selected items as a percentage of sales:
----------------------------------------
Sales 100.0% 100.0%
Cost of sales:
Purchased transportation 65.4% 63.3%
Other 7.7% 8.4%
------- -------
73.1% 71.7%
------- -------
Gross profit 26.9% 28.3%
Selling, general and
administrative expenses:
Salaries, wages & employee benefits 14.8% 14.9%
Other 6.2% 6.3%
------- -------
21.0% 21.2%
Depreciation and amortization 0.5% 0.5%
(Gain) loss on disposal of property
and equipment 0.0% 0.0%
Operating income 5.4% 6.7%
EBITDA Margin 6.0% 7.2%
EBITDA $ 5,477 $ 5,533
Reconciliation of Non-GAAP Financial Measures:
----------------------------------------------
Net income $ 3,181 $ 3,173
Adjustments:
Income tax expense 1,718 1,827
Interest expense 84 157
Depreciation and amortization 494 376
------- -------
EBITDA $ 5,477 $ 5,533
======= =======
Three months ended
October 31,
----------------------------------
2005 2004
-------------- ---------------
Sales by Service Type
---------------------
On Demand $34,586 38.2% $30,613 40.0%
Scheduled/Distribution 28,248 31.2% 21,970 28.7%
Outsourcing 27,735 30.6% 23,977 31.3%
------- -------
Total Sales $90,569 100.0% $76,560 100.0%
======= =======
Sales by Country
----------------
United States $59,354 65.5% $51,228 66.9%
Canada 31,215 34.5% 25,332 33.1%
------- -------
Total Sales $90,569 100.0% $76,560 100.0%
======= =======
DYNAMEX INC.
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(in thousands)
Three months ended
October 31,
--------------------
2005 2004
--------- ---------
OPERATING ACTIVITIES
Net income $ 3,181 $ 3,173
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 494 376
Amortization of bank financing fees 6 8
Provision for losses on accounts receivable 288 175
Stock option compensation 118 80
Deferred income taxes 614 1,092
(Gain) loss on disposal of property and
equipment -- 5
Changes in current operating assets and
liabilities:
Accounts receivable (7,129) (4,171)
Prepaids and other assets 486 (2,285)
Accounts payable and accrued liabilities (18) (263)
--------- ---------
Net cash provided by operating activities (1,960) (1,810)
--------- ---------
INVESTING ACTIVITIES
Purchase of property and equipment (117) (615)
Purchase of deferred compensation investments (54) (154)
--------- ---------
Net cash used in investing activities (171) (769)
--------- ---------
FINANCING ACTIVITIES
Principal payments on long-term debt (1) (1,700)
Net borrowings under line of credit 9,300 --
Net proceeds from sale of common stock 42 268
Tax benefit realized on exercise of stock
options 40 126
Purchase of treasury stock (7,792) --
Other assets (150) 26
--------- ---------
Net cash used in financing activities 1,439 (1,280)
--------- ---------
EFFECT OF EXCHANGE RATES ON CASH
FLOW INFORMATION 335 644
--------- ---------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (357) (3,215)
CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR 11,678 7,927
--------- ---------
CASH AND CASH EQUIVALENTS,
END OF YEAR $ 11,321 $ 4,712
========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest $ 110 $ 112
========= =========
Cash paid for taxes $ 1,221 $ 855
========= =========
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