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Dynamex Comments On Operations.


Business Editors & High Tech Writers

DALLAS--(BUSINESS WIRE)--Sept. 26, 2001

Anticipates No Material Adverse Affect from Attacks

Rick McClelland, 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.  of Dynamex Inc., commenting on operations subsequent to the terrorist attacks of September 11th:

"Generally, all Dynamex Business Centers 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 were impacted on the day of the attack as people throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere.  and indeed around the world paused to try to comprehend and understand this tragedy. Business activity levels were affected differently in each market but generally, business was noticeably slower in all locations for the 11th. Most operations returned to near normal levels during the 12th and 13th with New York City New York City: see New York, city.
New York City

City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S.
 being the exception.

"Business activity in Washington, D.C. came to a virtual standstill standstill /stand·still/ (stand´stil?) cessation of activity, as of the heart (cardiac s.) or chest (respiratory s.) .

stand·still
n.
Complete cessation of activity or progress.
 on the day of the attack, but the city and our team in DC came back with a "business as usual" posture on the 12th as a way of sending a strong and clear message. As a result, our operations in DC were at near normal levels on the 12th and have since held strongly.

"On the other hand, New York City was virtually shut down in terms of business activity on both September 11th and 12th. There was massive destruction to infrastructure, immediate heightened security, with related road, bridge, and tunnel closures. All of this served to seriously limit mobility by vehicle and foot for our pick-up and delivery staff.

"Dynamex' 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
 management focused on closing or restricting operations that were perceived to be at risk, as well as gathering and acting on information related to the whereabouts where·a·bouts  
adv.
About where; in, at, or near what location: Whereabouts do you live?

n. (used with a sing. or pl.
 and safety of our staff. I am delighted and relieved to be able to report that none of our people directly fell victim to the attack.

"While our operations in New York City were severely limited initially, we were able to successfully move significant amounts of material that is being used in the rescue efforts into the city. Commodities being moved include everything from hard hats to jackhammers to generators. Our efforts have been on a 24/7 basis since the attack and we are very proud of the labors of our people in this regard.

"We are pleased to report that revenues for our New York operations, which make up approximately 14% of Dynamex' total revenues, were at 85% of pre-attack levels by Monday the 17th, just four business days after the tragedy. Setting aside the affect of the observance of the beginning of Rosh Hashanah Rosh Hashanah

Jewish New Year. Sometimes called the Day of Judgment, Rosh Hashanah falls on Tishri 1 (in September or October) and ushers in a 10-day period of self-examination and penitence that ends with Yom Kippur.
, shipment activity has been strengthening ever since.

"A number of factors allowed our operations in New York to regain momentum quickly.
- We do not have a strong presence in the financial markets or the downtown
area.

- Certain clients that transport three dimensional traffic (products other than
documents) shipped very heavily to support the relief effort. As a result,
distribution activity levels actually increased.

- A large percentage of our revenue in New York relates to outsourcing services
(vehicles and facility management). This contract type work was largely
unaffected by the tragedy.


"In addition, while Dynamex operates in most major cities in the United States, our locations are not linked together as a network - where traffic is moved between operating locations. We have the capability to serve clients on a multi-market basis, but the services we offer are largely local (intra-city) transportation and distribution services. The result being that a significant challenge in a major market like New York City or Washington does not have a negative cascading effect on the balance of our operations. Our operating processes and management structure is largely decentralized de·cen·tral·ize  
v. de·cen·tral·ized, de·cen·tral·iz·ing, de·cen·tral·iz·es

v.tr.
1. To distribute the administrative functions or powers of (a central authority) among several local authorities.
 or localized Translated into the spoken language of the country. See localization. . We are pleased to report that revenues in the United States have come back strongly to near normal levels.

"Dynamex is the leading provider of same day inter-city air services in Canada. These operations were impacted by the embargo embargo (ĕmbär`gō), prohibition by a country of the departure of ships or certain types of goods from its ports. Instances of confining all domestic ships to port are rare, and the Embargo Act of 1807 is the sole example of this in  established by the commercial airlines that lasted for approximately one week after the attack. This was somewhat offset by higher levels of same day inter-city ground activity in both the United States and Canada. The embargo has since been lifted and traffic levels are strengthening there as well.

"While revenues will be negatively impacted for September, the impact on earnings will be mitigated mit·i·gate  
v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates

v.tr.
To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve.

v.intr.
To become milder.
 due to the variable cost structure of the business. In other words Adv. 1. in other words - otherwise stated; "in other words, we are broke"
put differently
, most of our direct costs are tied to revenue and these costs have largely tracked revenues during the past two weeks. We do not anticipate a material adverse affect on the business as a result of the events of September 11th.

"In closing, I want to say that I am extremely proud of the way the people on the Dynamex team have reacted and performed since the attack. Our people have displayed both leadership and an extraordinary commitment to their jobs, each other and our clients. Their performance has been remarkable.

"On behalf of all Dynamex personnel, I would like to express our deepest sympathy to all of those who have been affected directly or indirectly by this tragic event."

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 services package, dxNow(TM), are available at www.dynamex.com and www.dxnow.com.

This release 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. 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 SEC inquiry, 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 to any forward-looking statements contained herein to reflect events and circumstances 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.
COPYRIGHT 2001 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Sep 26, 2001
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