Dynamex Announces Fourth Quarter and FY2000 Results.Business Editors DALLAS--(BUSINESS WIRE)--Oct. 31, 2000 FY2000 Total Same Branch Sales Up 4.5%, Adjusted Same Branch Sales Up 10% Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become equal to $16.2 million in FY2000 and $4.2 million in Q4 Dynamex Inc. (AMEX AMEX See: American Stock Exchange :DDN (Defense Data Network) An Internet-based global communications network created by the U.S. Department of Defense. In April 1996, users were moved to the more modern Defense Information Systems Network (DISN) made up of NIPRnet (Non-classified IP Router Network) and ) today announced fiscal year 2000 revenues and adjusted EBITDA were $251.5 million and $16.2 million, respectively. Fiscal year 2000 revenues increased 4.9% over fiscal year 1999 on one additional business day and adjusted EBITDA increased 10.3% over 1999. The Company posted a net loss of $3.1 million in the quarter and $3.4 million for the fiscal year principally as a result of a $2.3 million charge in the fourth quarter associated with the previously announced preliminary agreement to settle the pending shareholder class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax , $1.0 million of unusual charges associated with temporary accounting assistance in the audit and re-audit process and for legal costs associated with the shareholder lawsuit lawsuit: see procedure; tort. , and increased interest expense. Fourth Quarter and Fiscal Year 2000 Highlights: -- Total Same Branch Sales increased 3.5% in Q4 and 4.5% for FY2000 -- Adjusted Same Branch Sales(1) increased 6.5% in Q4 and 10.1% FY2000 -- Constant F/X Same Branch Sales increased 3.8% in Q4 and 3.7% for FY2000 -- Gross Margin 30.6% in Q4 and 31.7% FY2000 vs. 31.8% in Q4 1999 and 31.7% FY1999 -- Adjusted EBITDA Margin 6.6% in Q4(4)(6) and 6.4% FY2000(5)(6) vs. 6.5% in Q4 1999(2) and 6.1% FY1999(3) -- Adjusted Cash from Operations(7) equal to $10.3 million(5) FY2000 vs. $10.6 million(3) FY1999 -- Bank facility extended to 11/30/2001 and amended to reduce interest rate by 1.00% (1) Adjusted Same Branch Sales excludes the following locations: Canadian Prairies The Canadian prairies is a large area of flat sedimentary land stretching throughout western Canada between the Canadian Shield in the east and the Canadian Rockies. The Canadian prairies – the portion of the Great Plains landform that supports various grasses and shrubs , 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. , Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. and Hartford Hartford, city (1990 pop. 139,739), state capital, Hartford co., central Conn., on the west bank of the Connecticut River; settled as Newtown 1635–36 on the site of a Dutch trading post (1633; abandoned 1654), inc. 1784. . The excluded branches' revenues equal approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 9% of total revenues. (2) Excludes non-recurring and unusual charges and adjustments of $2.4 million. (3) Excludes non-recurring and unusual charges and adjustments of $4.6 million. (4) Excludes non-recurring cost of approximately $450,000 associated with temporary accounting assistance in the audit and re-audit process and for legal costs associated with the shareholder lawsuit. (5) Excludes non-recurring cost of approximately $1.0 million associated with temporary accounting assistance in the audit and re-audit process and for legal costs associated with the shareholder lawsuit. (6) Excludes $2.3 million charge related to preliminary agreement to settle the pending shareholder class action lawsuit. (7) Cash flow from operating activities before changes in current operating assets Operating Assets Another term for working capital. and liabilities. Total Same Branch Sales (revenue per day for operations owned during both periods) slowed in the fourth quarter vs. the fiscal year and third quarter principally as a result of a negative exchange rate effect. Excluding the exchange rate effect, Total Same Branch Sales increased to 3.8% in the fourth quarter from 3.1% in the third quarter and 3.7% for the fiscal year. Adjusted Same Branch Sales, in management's opinion a more appropriate indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. of long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth as discussed below, increased 10.1% in the fiscal year and 6.5% in fourth quarter. Gross margins declined in the fourth quarter and fiscal year 2000 versus prior periods as a result of the continuing shift in business mix to a higher percentage of scheduled distribution and dedicated fleet revenues for regional and national accounts as opposed op·pose v. op·posed, op·pos·ing, op·pos·es v.tr. 1. To be in contention or conflict with: oppose the enemy force. 2. to on-demand On-Demand refers to a service or feature which addresses the user's need for instant gratification and immediacy of use. In most cases the value proposition for an on-demand service is wrapped up in the fact that the user or consumer of the service avoids a significant up-front revenues. Gross margins also were pressured by higher driver commissions to offset rising fuel prices and very low unemployment rates. Conversely con·verse 1 intr.v. con·versed, con·vers·ing, con·vers·es 1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak. 2. the change in business mix also resulted in lower SG&A expenses as a percent of sales in the fourth quarter and fiscal year 2000 versus prior periods as a result of fewer administrative requirements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc scheduled distribution and dedicated fleet revenues. EBITDA margin (adjusted for non-recurring expenses associated with the audit, system conversions, legal expenses, and the shareholder settlement) increased slightly in the fourth quarter and fiscal year vs. prior year periods as the Company begins to benefit from its infrastructure investments for technology, facilities and management. In addition to the non-recurring expenses, the earnings loss in the fourth quarter and fiscal year was worsened from approximately $625,000 of higher interest expense and bank fees. Rick McClelland McClelland is the surname of:
-- Expand our national North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. network, -- Build a strong platform infrastructure of systems and people, -- Expand our Same Day Delivery service menu (on-demand, scheduled distribution, dedicated fleet management, and outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. services), -- Promote our services to regional and national accounts, and -- Form strategic relationships with firms that offer complimentary services. "Our growth rate has been somewhat effected by attrition Attrition The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry. Notes: associated with email eroding the document business that has been declining for some time, especially in markets like New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , Seattle Seattle (sēăt`əl), city (1990 pop. 516,259), seat of King co., W Wash., built on seven hills, between Elliott Bay of Puget Sound and Lake Washington; inc. 1869. , Vancouver Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing and Dallas. We also continue to focus our resources on the most profitable work as evidenced by our recent decision to exit $4.0 million of marginally mar·gin·al adj. 1. Of, relating to, located at, or constituting a margin, a border, or an edge: the marginal strip of beach; a marginal issue that had no bearing on the election results. 2. profitable business in several locations in 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 . "At the same time, we continue to focus on selling our national same-day service (humour, operating system) same-day service - An ironic term used to describe long response time, particularly with respect to MS-DOS system calls (which ought to require only a tiny fraction of a second to execute). menu to multi-market accounts. We operate the only national same-day transportation network in Canada enabling Dynamex to provide service on a local, regional and national basis. More than half our revenue in Canada and one-third in the U.S. is generated by regional and national accounts. Dynamex has a presence in most major U.S. markets and we intend to leverage regional and national sales opportunities with our existing and future client base. "To that end, in an effort to complete our service network in the U.S. we have been aggressively increasing our coverage by focusing on the development of a network of 'Service Partners'. This involves entering into agreements with high quality local and regional same day delivery organizations in cities where Dynamex does not have a physical presence. Currently, we have signed agreements with 250 such companies in numerous metropolitan markets. The agreements address issues such as rates, uniformed drivers, insurance limits and on-time performance criteria criteria (krītēr´ē  ),n. etc. A number of these Service Partners are also integrating their systems with Dynamex and taking advantage of dxNow(R) to communicate efficiently with us and receive internet orders from their current customers. A number of our clients already take advantage of this network when they use our nationwide Next Flight Out service 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. . "Given this development of the U.S. network, we are in the process of expanding the national sales team, and have recently positioned a National Accounts Director in Dallas. The purpose of this position is to (a) leverage / expand the relationships we currently have with large shipper SHIPPER. One who ships or puts goods on board of a vessel, to be carried to another place during her voyage. In general, the shipper is bound to pay for the hire of the vessel, or the freight of the goods. 1 Bouv. Inst. n. 1030. organizations, and (b) target other firms that are logical 'target accounts' for Dynamex focusing on certain vertical market segments. "All of this supports one of our top priorities. To leverage the infrastructure we created -- our people, our services, our systems, our Branch Office Network and our Service Partners." Mr. McClelland continued, "With respect to operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , we recently reconfigured the field operation management organization. We now have three General Managers responsible for the day-to-day day-to-day adj. 1. Occurring on a routine or daily basis: the day-to-day movements of the stock market. 2. 'front line' operations of Dynamex. One person is responsible for the 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. Operation and the two in the U.S.A. are responsible for our East and West Regions. The purpose of the change was to configure See configuration. (software) configure - A program by Richard Stallman to discover properties of the current platform and to set up make to compile and install gcc. Cygnus configure was a similar system developed by K. the business with the fewest possible number of management layers and thereby keep the structure lean and responsive. "Finally, we intend to remain flexible and alert to any opportunity to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. shareholder value in the short-to-mid term. The capital markets for both debt and equity obviously are not strong right now. Valuation multiples have declined and we want to avoid the acquisition of a lot more debt if that also comes with significant integration risks and challenges. "But that said, we have successfully navigated through a challenging period and we are well positioned to take advantage of any legitimate opportunity. Operationally and financially your company is very sound. We have never been better positioned in the marketplace in terms of our service menu, area of service and line management quality. "There is good overall strength in the transportation 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. marketplace. The supply chain continues to play an important role in corporate strategy. Our industry remains large and fragmented frag·ment n. 1. A small part broken off or detached. 2. An incomplete or isolated portion; a bit: overheard fragments of their conversation; extant fragments of an old manuscript. 3. . We have the network and the systems that we can leverage. We're we're Contraction of we are. we're we are there with real solutions. We're unique. We have the experience and we're ready."
Same Branch Sales Growth (Increase over prior year period)
------------------------
Actual F/X Rates Constant F/X Rates(1)
---------------- ------------------
Consolidated Total Adjusted(2) Total Adjusted(2)
------------ ------ -------- ------ --------
Fiscal Year 2000 4.5% 10.1% 3.7% 9.2%
------------------- ------ -------- ------ --------
Fourth Quarter 2000 3.5% 6.5% 3.8% 6.8%
Third Quarter 2000 4.1% 8.7% 3.1% 7.7%
Second Quarter 2000 4.9% 10.2% 3.3% 8.6%
First Quarter 2000 5.6% 15.3% 4.4% 14.1%
Fiscal Year 1999 1.7% N./A. 3.5% N./A.
Actual F/X Rates
----------------
United States Total Adjusted(2)
------------- ------ --------
Fiscal Year 2000 3.8% 10.2%
------------------- ------ --------
Fourth Quarter 2000 4.1% 7.4%
Third Quarter 2000 4.3% 9.9%
Second Quarter 2000 3.1% 9.3%
First Quarter 2000 3.8% 14.5%
Actual F/X Rates Constant F/X Rates(1)
---------------- ------------------
Canada Total Adjusted(2) Total Adjusted(2)
------ ------ -------- ------ --------
Fiscal Year 2000 6.0% 9.8% 3.3% 7.0%
------------------- ------ -------- ------ --------
Fourth Quarter 2000 2.5% 4.7% 3.2% 5.5%
Third Quarter 2000 3.9% 6.1% 0.8% 3.0%
Second Quarter 2000 8.8% 12.3% 3.8% 7.1%
First Quarter 2000 9.2% 17.0% 5.5% 13.1%
-------------------
(1) Constant foreign exchange rates between the U.S. and Canada.
(2) Adjusted Same Branch Sales excludes the following locations:
Canadian Prairies, Dallas, Boston and Hartford. The excluded
branches' revenues equal approximately 9% of total revenues.
On a consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: basis, Total Same Branch Sales (revenue per day for operations owned during both periods) increased 4.5% and 3.5% over the prior year period for fiscal year 2000 and the fourth quarter, respectively. Excluding the effect of the change in exchange rates between the U.S. and Canada, Total Same Branch Sales increased 3.7% for the fiscal year and 3.8% in the fourth quarter. In the Company's U.S. operations, Same Branch Sales increased 3.8% for the fiscal year 2000 and 4.1% in the fourth quarter. Same Branch Sales in the Company's Canadian operations increased 6.0% and 2.5% in US dollars for the fiscal year and fourth quarter, respectively. The Canadian operations' growth was aided by favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. exchange rate changes during the entire fiscal year, and decreased by the rate changes in the fourth quarter. Excluding the exchange rate effect, Canadian Same Branch Sales increased 3.3% for the fiscal year and 3.2% in the fourth quarter. The Canadian Same Branch Sales recovered as expected in the fourth quarter 2000 vs. the third quarter results. Management considers the Company's Adjusted Same Branch Sales that excludes branches in the Canadian Prairies, Boston, Hartford and Dallas, a key indicator. The excluded branches accounted for approximately 9% of the Company's revenues in fiscal year 2000 vs. 14% in fiscal year 1999. Adjusted Same Branch Sales increased 10.1% and 6.5% for the fiscal year and the fourth quarter, respectively. As evidenced in the table above, the effect of the exclusion exclusion /ex·clu·sion/ (eks-kloo´zhun) 1. a shutting out or elimination. 2. surgical isolation of a part, as of a segment of intestine, without removal from the body. is declining from previous quarters as the revenue declines at some of the excluded branches were ongoing for more than one year. Bank Agreement and Earnouts Effective July July: see month. 31, 2000, the Company amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. its bank credit agreement. Under the terms of the amended agreement, the facility was extended through November November: see month. 30, 2001 and split into an amortizing term loan of $32.2 million and a revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility of $19.5 million. The revolving credit facility will be governed gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. by an eligible 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 borrowing base agreement. Required principal payments on the amortizing term loan consist of $3.4 million in fiscal year 2001 and then $1.375 million quarterly until maturity, at which time any amounts outstanding under the facility are due. Interest on outstanding borrowings is payable monthly at prime or LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). , plus an applicable margin. The applicable margins for prime range from 0.0% to 1.0%, and for LIBOR from 3.0% to 4.0%, and are based on the ratio of the Company's funded debt Funded Debt Long-term debt that matures after more than one year. Notes: This is usually issued as a bond or a long-term note. See also: Bond, Debt, Maturity, Note Funded debt Debt maturing after more than one year. to EBITDA. This interest margin represents a 1.00% reduction from the previous rates. During the first quarter of fiscal 2001, the Company has reached agreement with three out of four former owners regarding overdue OVERDUE. A bill, note, bond or other contract, for the payment of money at a particular day, when not paid upon the day, is overdue. 2. The indorsement of a note or bill overdue, is equivalent to drawing a new bill payable at sight. 2 Conn. 419; 18 Pick. earnout Earnout A contractual provision stating that the seller of a business is to obtain additional future compensation based on the business achieving certain future financial goals. Notes: The financial goals are usually stated as a percentage of gross sales or earnings. payments. Approximately, $400,000 has been paid to these former owners with the remaining liabilities converted to two-year notes payable. The Company intends to continue negotiation with the one remaining former owner regarding overdue earnout payment that could range from a minimum of $350,000 to a contractural maximum of $4 million. One final future earnout payment is due at the end of November and is estimated between $150,000 and $200,000. Outlook The following outlook is provided in connection with the adoption of new SEC rules governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. fair disclosure (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. which 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. For fiscal year 2001, the Company expects Total Same Branch Sales growth in the 4% to 6% range on 2.5 fewer working days. The rate is lower than the targeted 10% levels as a result of the exiting approximately $4.0 million of marginally profitable business in Canada, an anticipated moderate slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the economy, and continued attrition of the document business. Same Branch Sales in the first quarter are expected to be approximately 3% on one more working day than FY2000. Dynamex expects gross margins in the 30.5% to 31.5% range for FY2001 as the business mix continues to shift to scheduled distribution and dedicated fleet revenues associated with regional and national accounts as well as higher commissions due to fuel costs impact and low unemployment rates. Generally, the Company's on-demand services provide higher gross margins than do scheduled distribution or fleet management services because driver compensation for on-demand services is generally lower as a percentage of sales from such services. However, scheduled distribution and fleet management services generally have fewer administrative requirements related to order taking, dispatching drivers and billing. As a result of these offsetting variances, the Company's EBITDA margins should not be materially impacted by business mix in any particular period. As the Company pursues new opportunities with national accounts, management anticipates that on-demand revenues will decrease as a percentage of total sales, and therefore that gross margin will decline over-time but EBITDA margins will not be materially impacted by the business mix. SG&A expenses as a percent of sales is expected to continue to decline slightly as continued cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. and 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). are offset by increases in insurance expenses and continued system conversion expenses. EBITDA margins are expected to be in the 6.0% to 7.0% range for FY2001. The Company's effective tax rate will remain high due to higher profits in its Canadian subsidiary than in the U.S. Management is considering proposals to reduce taxes, but the timing and effect are uncertain at this time. The Company expects to spend approximately $3.5 million for capital expenditures during the current fiscal year to complete its front-end front-end adj. 1. Of or relating to the initial phase of a project: a front-end investment. 2. Of or relating to the forward parts of a vehicle: a front-end alignment. systems conversions, continue back-end (programming) back-end - Any software performing either the final stage in a process, or a task not apparent to the user. A common usage is in a compiler. A compiler's back-end generates machine language and performs optimisations specific to the machine's architecture. Oracle implementation and upgrade 2-way mobile data devices for its drivers. The Company will host an investor conference call on Tuesday Tuesday: see week. , October October: see month. 31, 2000, at 11:00 a.m. Eastern time at (800) 388-8975. A telephone replay of the conference call will be available for 24 hours Adv. 1. for 24 hours - without stopping; "she worked around the clock" around the clock, round the clock at 800-428-6051, Passcode 140569. The conference call also will be available on the Internet through Investor Broadcast Networks' Vcall website, located at www.vcall.com and the Company's website at www.dynamex.com. To listen to the live call, please go to the web site 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 90 days. Dynamex is a 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 and www.dxnow.com. This release contains forward-looking statements which 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 outcome of the shareholder class action and SEC inquiry, including the ability to obtain final approval of the settlement, acquisition strategy, competition, foreign exchange, 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 (programming) revision - A release of a piece of software which is not a major release or a bugfix, but only introduces small changes or new features. 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. - Tables follow -
DYNAMEX INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
July 31, July 31,
2000 1999
--------- ---------
ASSETS
CURRENT
Cash and cash equivalents $ 5,600 $ 2,933
Accounts receivable (net of allowance
for doubtful accounts of $940 and
$1,320, respectively) 26,887 25,945
Prepaid and other current assets 2,890 2,488
Deferred income tax 1,518 2,148
--------- ---------
TOTAL CURRENT ASSETS 36,895 33,514
Property and equipment - net 7,225 9,308
Intangibles - net 78,230 82,860
Deferred income taxes 3,273 2,899
Other assets 901 1,841
--------- ---------
TOTAL ASSETS $ 126,524 $ 130,422
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable trade $ 5,517 $ 6,349
Accrued liabilities 16,445 15,292
Income taxes payable 182 117
Current portion of long-term debt 3,729 427
--------- ---------
TOTAL CURRENT LIABILITIES 25,873 22,185
LONG-TERM DEBT 40,928 46,690
OTHER LIABILITIES 1,313 --
--------- ---------
TOTAL LIABILITIES 68,114 68,875
--------- ---------
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; 10,207 and
10,207 outstanding, respectively 102 102
Additional paid-in capital 72,759 72,759
Retained deficit (13,601) (10,202)
Receivable from stockholder -- (102)
Accumulated other comprehensive loss:
Cumulative translation adjustment (850) (1,010)
--------- ---------
TOTAL STOCKHOLDERS' EQUITY 58,410 61,547
--------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 126,524 $ 130,422
========= =========
DYNAMEX INC.
CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
(In thousands, except per share data)
Twelve months ended
July 31,
---------------------------------
2000 1999 1998
--------- --------- ---------
Sales $ 251,475 $ 239,631 $ 208,019
Cost of sales 171,675 163,156 140,037
--------- --------- ---------
Gross profit 79,800 76,475 67,982
Selling, general and administrative
expenses 64,483 66,166 55,866
Depreciation and amortization 8,931 13,211 8,770
Provision for settlement of
shareholder litigation 2,313 -- --
(Gain) loss on disposal of assets 97 205 (199)
--------- --------- ---------
Operating income 3,976 (3,107) 3,545
Interest expense 5,860 4,607 4,228
Other income, net (203) (35) --
--------- --------- ---------
Income (loss) before taxes (1,681) (7,679) (683)
Income tax expense (benefit) 1,718 (1,003) 935
--------- --------- ---------
Net income (loss) $ (3,399) $ (6,676) $ (1,618)
========= ========= =========
Earnings (loss) per common share
- basic and diluted: $ (0.33) $ (0.66) $ (0.20)
========= ========= =========
Weighted average shares:
Common shares outstanding 10,207 10,099 7,937
Selected items as a percentage of
sales - actual
Sales 100.0% 100.0% 100.0%
Cost of sales 68.3% 68.1% 67.3%
--------- --------- ---------
Gross profit 31.7% 31.9% 32.7%
Selling, general and administrative
expenses 25.6% 27.6% 26.9%
Depreciation and amortization 3.6% 5.5% 4.2%
Provision for settlement of
shareholder litigation 0.9% 0.0% 0.0%
(Gain) loss on disposal of assets 0.0% 0.1% -0.1%
--------- --------- ---------
Operating income 1.6% -1.3% 1.7%
EBITDA margin 5.1% 4.2% 5.9%
Proforma for non-recurring charges
and adjustments
Selling, general and administrative
expenses 64,483 66,166 55,866
less non-recurring charges 1,000 4,600 --
--------- --------- ---------
Selling, general and administrative
expenses - adjusted 63,483 61,566 55,866
SG&A expenses as % of revenues
- adjusted 25.2% 25.7% 26.9%
EBITDA 12,907 10,104 12,315
plus non-recurring charges 1,000 4,600 --
plus provision of settlement of
shareholder litigation 2,313 -- --
--------- --------- ---------
EBITDA adjusted 16,220 14,704 12,315
EBITDA margin - adjusted 6.4% 6.1% 5.9%
Three months ended
July 31,
---------------------
2000 1999
--------- ---------
Sales $ 63,952 $ 60,781
Cost of sales 44,376 41,468
--------- ---------
Gross profit 19,576 19,313
Selling, general and administrative
expenses 15,723 17,608
Depreciation and amortization 2,152 6,322
Provision for settlement of
shareholder litigation 2,313 --
(Gain) loss on disposal of assets 104 213
--------- ---------
Operating income (716) (4,830)
Interest expense 1,884 1,153
Other income, net (203) (35)
--------- ---------
Income (loss) before taxes (2,600) (5,983)
Income tax expense (benefit) 549 (1,583)
--------- ---------
Net income (loss) $ (3,149) $ (4,400)
========= =========
Earnings (loss) per common share
- basic and diluted: $ (0.31) $ (0.44)
========= =========
Weighted average shares:
Common shares outstanding 10,207 10,174
Selected items as a percentage of
sales - actual
Sales 100.0% 100.0%
Cost of sales 69.4% 68.2%
--------- ---------
Gross profit 30.6% 31.8%
Selling, general and administrative
expenses 24.6% 29.0%
Depreciation and amortization 3.4% 10.4%
Provision for settlement of
shareholder litigation 3.6% 0.0%
(Gain) loss on disposal of assets 0.2% 0.4%
--------- ---------
Operating income -1.1% -7.9%
EBITDA margin 2.2% 2.5%
Proforma for non-recurring charges
and adjustments
Selling, general and administrative
expenses 15,723 17,608
less non-recurring charges 450 2,447
--------- ---------
Selling, general and administrative
expenses - adjusted 15,273 15,161
SG&A expenses as % of revenues
- adjusted 23.9% 24.9%
EBITDA 1,436 1,492
plus non-recurring charges 450 2,447
plus provision of settlement of
shareholder litigation 2,313 --
--------- ---------
EBITDA adjusted 4,199 3,939
EBITDA margin - adjusted 6.6% 6.5%
DYNAMEX INC.
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(In thousands)
Twelve Months Ended
July 31,
--------------------------------
2000 1999 1998
-------- -------- --------
OPERATING ACTIVITIES
Net income (loss) $ (3,399) $ (6,676) $ (1,618)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation and amortization 3,600 3,067 3,133
Amortization and writedown of
goodwill and other intangibles 5,331 10,144 5,637
Provision for losses on accounts
receivable 1,119 2,109 632
Deferred income taxes 256 (2,824) (1,416)
(Gain) loss on disposal of property
and equipment 97 205 (199)
Provision for settlement of
shareholder litigation 2,313 -- --
Changes in current operating assets
and liabilities:
Accounts receivable (2,061) (1,330) (613)
Prepaids and other current assets 582 2,329 (1,655)
Accounts payable and accrued
liabilities 324 1,993 1,460
-------- -------- --------
Net cash provided by operating
activities 8,162 9,017 5,361
-------- -------- --------
INVESTING ACTIVITIES
Payments for acquisitions (555) (14,055) (35,925)
Purchase of property and equipment (2,707) (3,432) (3,820)
Net proceeds from disposal of
property and equipment 77 283 745
-------- -------- --------
Net cash used in investing activities (3,185) (17,204) (39,000)
-------- -------- --------
FINANCING ACTIVITIES
Principal payments on long-term debt (360) (627) (740)
Net borrowings under line of credit (2,100) 10,680 4,163
Proceeds from issuance of
long-term debt -- -- 55
Proceeds from shareholder receivable 102 102 --
Net proceeds from sale of
common stock -- 58 30,030
Other assets and deferred
financing costs 78 (234) 702
-------- -------- --------
Net cash (used) provided by
financing activities (2,280) 9,979 34,210
-------- -------- --------
-------- -------- --------
EFFECT OF EXCHANGE RATES ON CASH (30) (220) (536)
-------- -------- --------
NET INCREASE (DECREASE) IN CASH 2,667 1,572 35
CASH AND CASH EQUIVALENTS, BEGINNING
OF PERIOD 2,933 1,361 1,326
-------- -------- --------
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 5,600 $ 2,933 $ 1,361
======== ======== ========
SUPPLEMENTAL DISCLOSURE OF NON-CASH
INFORMATION
Cash paid for interest $ 4,215 $ 3,952 $ 3,557
======== ======== ========
Cash paid for taxes $ 1,650 $ 2,436 $ 5,773
======== ======== ========
SUPPLEMENTAL DISCLOSURE OF NON-CASH
INVESTING AND FINANCING ACTIVITIES
Assets acquired, liabilities assumed
and consideration paid for
acquisitions were as follows:
Fair value of assets acquired $ 894 $ 15,330 $ 37,059
Issuance of common stock -- (395) (1,134)
Payable to former owners (339) (880) --
-------- -------- --------
$ 555 $ 14,055 $ 35,925
======== ======== ========
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