Dynamex Files Forms 10-Q for First Three Quarters of FY 2000.Business Editors DALLAS--(BUSINESS WIRE)--July 3, 2000 Year-to-Date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. Total Same Branch Sales Up 5%, Core Same Branch Sales Up 11% 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 ) filed its Forms 10-Q for the quarters ending October October: see month. 31, 1999, January January: see month. 31, 2000, and April 30, 2000 on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , June June: see month. 30, 2000. The Forms 10-Q include restated financial results for the quarters ending October 31, 1998, January 31, 1999 and April 30, 1999. BDO Seidman BDO Seidman, LLP is the United States arm of BDO International, one of the largest accounting firms outside of the Big Four. History BDO Seidman, LLP was founded as Seidman and Seidman in New York City in 1910 by Maximillian L. Seidman. , LLP LLP - Lower Layer Protocol reviewed the financial statements for the three months and nine months ending April 30, 2000 in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with new SEC rules mandating independent auditor Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. review of quarterly financial statements. Third Quarter and Year-to-Date Highlights: -- Total Same Branch Sales increased 4.1% in Q3 and 4.9% YTD See Year-to-date. YTD See year to date (YTD). -- Core Same Branch Sales(1) increased 8.7% in Q3 and 11.3% YTD -- Gross Margin 31.6% in Q3 and 32.1% YTD vs. 32.1% in Q3 1999(6) and 32.0% YTD 1999(6) -- 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 Margin 6.3% in Q3(4) and 6.4% YTD(5) vs. 7.1% in Q3 1999(2) and 6.0% YTD 1999(3) -- EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. $(0.05) per share in Q3 and $(0.04) per share YTD vs. $0.03 in Q3 1999(6) and $(0.23) YTD 1999(6) -- Cash from Operations(7) increased 33% from $7.1 million(5) YTD vs. $5.4 million(3) YTD 1999 (1) Core Same Branch Sales excludes Transition Branches (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. Prairies prairies, generally level, originally grass-covered and treeless plains of North America, stretching from W Ohio through Indiana, Illinois, and Iowa to the Great Plains region. , 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. ). Transition Branches' revenues equal approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 10% of Total Branch revenues. (2) Restated. Excludes 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 and related restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs of $53,000. (3) Restated. Excludes non-recurring and unusual charges and adjustments of $2.2 million. (4) Excludes non-recurring temporary costs of approximately $300,000 to assist in the audit and re-audit process and for systems conversion assistance. (5) Excludes non-recurring temporary costs of approximately $550,000 to assist in the audit and re-audit process and for systems conversion assistance. (6) Restated. (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 third quarter vs. year-to-date partly as a result of slower growth in the Company's central Canadian region. Central Canada Central Canada (sometimes the Central provinces) is a region comprised of Canada's two largest and most populous provinces: Ontario and Quebec. Central Canada, with the four Atlantic provinces, form Eastern Canada. has been a high growth area in recent years and May 2000 and mid-month June 2000 revenues indicate fourth quarter growth has returned to higher historical levels. U.S. Same Branch Sales growth in the fourth quarter through mid-June n. 1. the middle part of June. Noun 1. mid-June - the middle part of June period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" is similar to the third quarter growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. . Core 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 11.3% year-to-date and 8.7% in third quarter. Excluding the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. exchange rate effect year-to-date vs. last year, Core Same Branch Sales have increased 10% and are in line with minimum management goals. Year-to-date gross margins are consistent with historical levels. Gross margin in the third quarter is slightly lower 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. 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. EBITDA margin (adjusted for non-recurring expenses associated with the audit and systems conversions) declined slightly in the third quarter vs. year-to-date as a result of increased infrastructure expenses for technology, facilities and management. In addition to the slightly lower margin and the non-recurring expenses associated with the audit and systems conversions ($300,000 in Q3, $550,000 YTD), the earnings loss in the third quarter was worsened from approximately $425,000 of higher interest expense and bank fees ($250,000 from bank waiver The voluntary surrender of a known right; conduct supporting an inference that a particular right has been relinquished. The term waiver is used in many legal contexts. fee in early February February: see month. , $125,000 from the default interest rate instituted by the banks, and $50,000 from two 0.25% increases in the prime rate during the third quarter). The non-recurring expenses associated with the audit and systems conversions and higher interest expense and bank fees year-to-date have had the effect of decreasing pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income by approximately $1 million. The 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. bank agreement lowers the interest rate by 0.50% from the default rate paid for the last 90 days, but is higher than historical levels. Management intends to explore refinancing Refinancing An extension and/or increase in amount of existing debt. options in order to lower interest expense, but anticipates a higher likelihood of success after completing the audit for fiscal year 2000. In addition, the Transition Branches' income has decreased approximately $500,000 year-to-date vs. the first three quarters of fiscal 1999. Management believes the Transition Branches will be breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations in the fourth quarter and positive contributors to income in fiscal year 2001. Cash from operations before the change in current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. and current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. during the first nine-months of fiscal year 2000 was $7.1 million vs. $5.4 million in fiscal year 1999. 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 increased $4.2 million during the first three quarters of fiscal year 2000, but is expected to decrease by approximately $1 million to $2 million in the fourth quarter. Rick McClelland McClelland is the surname of:
-- Establish a national network 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 and the United States, -- Build a strong infrastructure of systems and people upon which to grow the business, -- Expand our service menu of Same Day Delivery Services (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 accounts that have same-day service requirements on a regional and national basis, and -- Form strategic relationships with firms that offer complimentary services. "Our network has largely been completed. The acquisition plan facilitated the initial part of this goal, but the recent 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 phenomenon combined with the development of dxNow(R) presents a strong and cost effective means to continue our expansion. "dxNow(R) is a set of proprietary tools developed by Dynamex to provide web-based order entry, tracking, tracing and reporting capabilities for our current customers. It is also a marketing tool to attract new customers and an important point of differentiation differentiation, in biology, series of changes that occur in cells and tissues during development, resulting in their specialization. This, in turn, permits a greater variety of organisms. in the same-day delivery market. dxNow(R) is possible as a result of the technology infrastructure and people we have put in place. Currently, our clients place over 55,000 orders per month (5% to 6% of total orders) with Dynamex via dxNow. "On the other hand, dxNow(R) is also a communications gateway between Dynamex operating locations, our alliance partners, and our agent network. By utilizing dxNow(R), we are currently connecting the Dynamex network to local delivery firms across 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 where Dynamex does not have a physical presence. This network can be utilized by traditional users of our services as well as 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. firms that understand how Same Day Transportation solutions can solve 'last mile' challenges and impact buyers' remorse Remorse See also Regret. Ayenbite of Inwit (Remorse of Conscience) Middle English version of medieval moral treatise, c. 1340. [Br. Lit. which results from delivery speed that is unacceptable to our 'point and click/instant gratification' society. The Big Carriers deliver overnight -- Dynamex delivers over lunch. "We have developed substantial momentum related to the rollout of a full service menu of same day delivery services that include: -- Same-day on-demand point to point services (air and ground) -- Scheduled distribution services -- Fleet management service for clients that want to outsource outsource verb To assign specific work to a 3rd party for a specific length of time at an set price and service level Managed care To use outside labor to perform functions–billing and collections, accounting, janitorial services, ER their delivery fleet -- As well, we offer facilities management The management of a user's computer installation by an outside organization. All operations including systems, programming and the datacenter can be performed by the facilities management organization on the user's premises. services (mail room management at approximately 60 sites) and call center management services (approximately 200 employees). "With respect to our national account strategy, we currently derive de·rive v. 1. To obtain or receive from a source. 2. To produce or obtain a chemical compound from another substance by chemical reaction. over 35% of total sales from clients that use Dynamex on a multi-market basis. National and regional accounts in Canada comprise To embrace, cover, or include; to confine within; to consist of. In the law governing patents—grants of an exclusive right or privilege to make, use, or sell an invention or product for a term of years—the term comprise over one-half of our customer base vs. 25% in the U.S. This U.S. multi-market account opportunity represents a key component of our growth strategy along with augmenting our Canadian efforts. "With respect to strategic partnerships, we have a firmly established relationship with Purolator Purolator may refer to:
Mr. McClelland continued, "Our opportunities on a go forward basis lie in leveraging the infrastructure we have created and the reputation we have established. This infrastructure consists of our wide area network, our common 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 platform, and our Oracle 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. with dxNow as our web-based communications gateway to our customers and service partners. "While a number of our initiatives have had the effect of expanding SG&A costs, we believe that we have an infrastructure that is unique and valuable in the same-day delivery industry. It is an infrastructure of systems and people that is well positioned to take advantage of current and emerging opportunities. It is the infrastructure that will support our future growth. We intend to leverage that infrastructure as the means of enhancing margins and rebuilding shareholder value. "We intend to continue to focus on growth with a cognizant cog·ni·zant adj. Fully informed; conscious. See Synonyms at aware. [From cognizance.] Adj. 1. eye on expenses and positive cash flow generation. We will not "shrink shrink Vox populi noun A psychiatrist ourselves to greatness" for short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. profits, but rather we will add the incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. sales to leverage our infrastructure and expand the bottom line." Same Branch Sales Growth (Increase over prior year period) ------------------------
Actual F/X Rates Constant F/X Rates(1)
------------------------- ------------------------
Consolidated Total Core(2) Total Core(2)
------------ ----- ---- ----- ----
Year-to-Date 2000 4.9% 11.3% 3.6% 10.0%
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 Core(2)
------------- ----- ----
Year-to-Date 2000 3.7% 11.2%
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 Core(2) Total Core(2)
------ ----- ---- ----- ----
Year-to-Date 2000 7.2% 11.5% 3.3% 7.5%
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) Core Same Branch Sales excludes Transition Branches (Canadian
Prairies, Dallas, Boston and Hartford). Transition Branches'
revenues equal approximately 10% of Total Branch 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 4.9% and 4.1% over the prior year period for the year-to-date fiscal year 2000 and the third quarter, respectively. Excluding the effect of the change in exchange rates between the U.S. and Canada, Total Same Branch Sales increased 3.6% for the year-to-date and 3.1% in the third quarter. In the Company's U.S. operations, Same Branch Sales increased 3.7% for the year-to-date fiscal year 2000 and 4.3% in the third quarter. Same Branch Sales in the Company's Canadian operations increased 7.2% and 3.9% in US dollars for the year-to-date and third quarter, respectively. The Canadian operations' growth was aided by favorable exchange rate changes year over year. Excluding this favorable exchange rate effect, Canadian Same Branch Sales increased 3.3% for the year-to-date and 0.8% in the third quarter. Consequently, the decrease in the consolidated growth rate in the third quarter resulted from lower growth in Canada somewhat offset by third quarter increase in the U.S. growth rate. The Canadian year-over-year 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. was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a strong comparable third quarter in 1999, a large emergency freight The price or compensation paid for the transportation of goods by a carrier. Freight is also applied to the goods transported by such carriers. The liability of a carrier for freight damaged, lost, or destroyed during shipment is determined by contract, statute, or account's temporary 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. measures, and a general slowdown in next-flight out orders. Revenues in May 2000 and mid-month June 2000 indicate that fourth quarter growth in Canada has returned to higher historical levels. Same Branch Sales in the U.S. in the fourth quarter are trending similar to the third quarter. Management focuses on the Company's Core Same Branch Sales that excludes Transition Branches (the 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 , Boston, Hartford and Dallas) where the Company has experienced revenue growth and profitability challenges. The Transition Branches account for approximately 10% of the Company's revenues in the current year-to-date vs. 15% year-to-date in fiscal year 1999. Core Same Branch Sales increased 11.3% and 8.7% for the year-to-date and the third quarter, respectively. Excluding the favorable exchange rate effects, Core Same Branch Sales increased 10.0% for the year-to-date and 7.7% in the third quarter. Core Same Branch Sales in the Company's U.S. operations increased 11.2% year-to-date and 9.9% in the third quarter. Core Same Branch Sales in Canada increased 7.5% and 3.0% for the year-to-date and third quarter, respectively. Management believes Core Same Branch Sales is a more appropriate indicator of the Company's long-term growth and fiscal year 2001 growth prospects. Rick McClelland's comments on growth were, "These core rates of growth are more in line with what we told our investors to expect, and I am pleased that we have been able to re-develop this revenue momentum despite the many distractions of the past year. "I believe the growth rate supports these facts: -- The same-day delivery market is continuing to expand. -- This an industry that is never going away and is growing 5-6% per year. -- Dynamex is achieving core growth rates above industry averages in a period where management's focus has been on building infrastructure and dealing with the past. -- Dynamex is a resilient See resiliency. organization managed by people that know how to respond to the opportunities despite challenging 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 ." The Company will host an investor conference call on Wednesday Wednesday: see week. , July July: see month. 5, 2000 at 1:00 p.m. Eastern time at 800/399-5927. Dynamex is a 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 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), is available at www.dynamex.com and www.dxnow.com. Anyone interested in receiving Dynamex press releases directly should email Jeff MacDowell at jeff.macdowell@dynamex.com with your name, company, and email address See Internet address. or fax number. The Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ending July 31, 1999 and Forms 10-Q for the quarters ending October 31, 1999, January 31, 2000, and April 30, 2000 will be available online at www.dynamex.com under Company Profile and Investor Information, or at www.sec.gov/cgi-bin/srch-edgar?dynamex, or at www.freeedgar.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 possibility that the Company's stock will be delisted from or not resume trading on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. , the outcome of the shareholder class action and 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 (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 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 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.
DYNAMEX INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
April 30, January 31, October 31, July 31,
2000 2000 1999 1999
---------- ----------- ----------- --------
(Unaudited) (Unaudited) (Unaudited)
ASSETS
CURRENT
Cash and cash
equivalents $ 5,860 $ 5,413 $ 4,845 $ 2,933
Accounts
receivable
(net of
allowance for
doubtful
accounts of
$1,230, $1,657,
$1,518 and
$1,320,
respectively) 30,168 28,780 29,460 25,945
Prepaid and
other current
assets 1,688 1,701 1,261 2,488
Deferred income
tax 2,112 2,103 2,094 2,148
-------- -------- -------- --------
TOTAL CURRENT
ASSETS 39,828 37,997 37,660 33,514
Property and
equipment--net 7,878 8,537 8,763 9,308
Intangibles--net 79,201 80,721 81,780 82,860
Deferred income
taxes 2,674 2,832 2,681 2,899
Other assets 1,883 1,768 1,810 1,841
-------- -------- -------- --------
TOTAL ASSETS $131,464 $131,855 $132,694 $130,422
======== ======== ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
CURRENT
Accounts payable
trade $ 4,136 $ 3,567 $ 4,192 $ 6,349
Accrued
liabilities 15,827 15,890 15,936 15,292
Income taxes
payable -- -- -- 117
Current portion
of long-term debt 130 406 191 427
-------- -------- -------- --------
TOTAL CURRENT
LIABILITIES 20,093 19,863 20,319 22,185
Long-term debt 49,910 49,743 50,047 46,690
-------- -------- -------- --------
TOTAL LIABILITIES 70,003 69,606 70,366 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 102 102 102 102
Receivable from
stockholder (26) (51) (77) (102)
Additional paid-in
capital 72,759 72,759 72,759 72,759
Retained earnings (10,655) (10,149) (9,797) (10,202)
Unrealized foreign
currency
translation
adjustment (719) (412) (659) (1,010)
-------- -------- -------- --------
TOTAL STOCKHOLDERS
EQUITY 61,461 62,249 62,328 61,547
-------- -------- -------- --------
TOTAL LIABILITIES
AND STOCKHOLDERS'
EQUITY $131,464 $131,855 $132,694 $130,422
======== ======== ======== ========
DYNAMEX INC.
CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
(In thousands, except per share data)
(Unaudited)
Nine months ended Three months ended
April 30, April 30,
------------------ ------------------
2000 1999 2000 1999
---- ---- ---- ----
(Restated) (Restated)
Sales 187,523 $ 178,850 $ 63,022 $ 61,283
Cost of sales 127,299 121,688 43,083 41,596
------- ------- ------- -------
Gross profit 60,224 57,162 19,939 19,687
Selling, general
and administrative
expenses 48,760 48,558 16,324 15,511
Depreciation and
amortization 6,779 6,889 2,160 2,255
(Gain) loss on
disposal of assets (7) (8) (62) (122)
------- ------- ------- -------
Operating income 4,692 1,723 1,517 2,043
Interest expense 3,976 3,454 1,577 1,179
------- ------- ------- -------
Income (loss)
before taxes 716 (1,731) (60) 864
Income tax expense
(benefit) 1,169 580 446 608
------- ------- ------- -------
Net income (loss) $ (453) $ (2,311) $ (506) $ 256
======= ======= ======= =======
Earnings (loss)
per common share
-- basic: (0.04) $ (0.23) $ (0.05) $ 0.03
======= ======= ======= =======
Earnings (loss) per
common share --
assuming dilution: $ (0.04) $ (0.23) $ (0.05) $ 0.03
======= ======= ======= =======
Weighted average
shares:
Common shares
outstanding 10,207 10,075 10,207 10,085
Adjusted common
shares --
assuming exercise
of stock options 10,207 10,075 10,207 10,222
Three months ended Three months ended
January 31, October 31,
------------------ -------------------
2000 1999 1999 1998
---- ---- ---- ----
(Restated) (Restated)
Sales $ 61,778 $ 58,124 $ 62,723 $ 59,443
Cost of sales 41,919 39,966 42,297 40,126
--------- --------- -------- ----------
Gross profit 19,859 18,158 20,426 19,317
Selling, general
and administrative
expenses 16,403 18,292 16,033 14,755
Depreciation and
amortization 2,301 2,306 2,318 2,328
(Gain) loss on
disposal of assets 1 79 54 35
--------- --------- -------- ----------
Operating income 1,154 (2,519) 2,021 2,199
Interest expense 1,242 1,332 1,157 943
Income (loss) --------- --------- -------- ----------
before taxes (88) (3,851) 864 1,256
Income tax expense
(benefit) 264 (1,107) 459 1,079
--------- --------- -------- ----------
Net income (loss) $ (352) $ (2,744) $ 405 $ 177
========= ========= ======== ==========
Earnings (loss)
per common share
-- basic: $ (0.03) $ (0.27) $ 0.04 $ 0.02
========= ========= ======== ==========
Earnings (loss) per
common share --
assuming dilution:$ (0.03) $ (0.27) $ 0.04 $ 0.02
Weighted average ========= ========= ======== ==========
shares:
Common shares
outstanding 10,207 10,069 10,207 10,069
Adjusted common
shares --
assuming exercise
of stock options 10,207 10,069 10,207 10,127
DYNAMEX INC.
CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
(In thousands, except per share data)
(Unaudited)
Nine months
ended Three months ended
-------- ---------------------------
4/30/00 4/30/00 1/31/00 10/31/99
-------- ------- ------- --------
Sales $187,523 $63,022 $61,778 $62,723
Cost of sales 127,299 43,083 41,919 42,297
------- ------- ------- -------
Gross profit 60,224 19,939 19,859 20,426
Selling, general and
administrative expenses 48,760 16,324 16,403 16,033
Depreciation and amortization 6,779 2,160 2,301 2,318
(Gain) loss on disposal of
assets (7) (62) 1 54
------- ------- ------- -------
Operating income 4,692 1,517 1,154 2,021
Interest expense 3,976 1,577 1,242 1,157
------- ------- ------- -------
Income (loss) before taxes 716 (60) (88) 864
Income tax expense (benefit) 1,169 446 264 459
------- ------- ------- -------
Net income (loss) $ (453) $ (506) $ (352) $ 405
======= ======= ======= =======
Earnings (loss) per common
share - basic: $ (0.04) $ (0.05) $ (0.03) $ 0.04
======= ======= ======= =======
Earnings (loss) per common
share - assuming dilution $ (0.04) $ (0.05) $ (0.03) $ 0.04
======= ======= ======= =======
Weighted average shares:
Common shares outstanding 10,207 10,207 10,207 10,207
Adjusted common shares -
assuming exercise of stock
options 10,207 10,207 10,207 10,207
Selected items as a percentage of sales
----------------------------------------
Sales 100.0% 100.0% 100.0% 100.0%
Cost of sales 67.9% 68.4% 67.9% 67.4%
------- ------- ------- -------
Gross profit 32.1% 31.6% 32.1% 32.6%
Selling, general and
administrative expenses 26.0% 25.9% 26.6% 25.6%
Depreciation and amortization 3.6% 3.4% 3.7% 3.7%
(Gain) loss on disposal of
assets 0.0% -0.1% 0.0% 0.1%
------- ------- ------- -------
Operating income 2.5% 2.4% 1.9% 3.2%
EBITDA margin 6.1% 5.8% 5.6% 6.9%
Proforma for non-recurring charges and adjustments
---------------------------------------------------
Selling, general and
administrative expenses 48,760 16,324 16,403 16,033
less non-recurring charges 550 300 250 --
------- ------- ------- -------
Selling, general and
administrative expenses
- adjusted 48,210 16,024 16,153 16,033
SG&A expenses as % of
revenues - adjusted 25.7% 25.4% 26.1% 25.6%
EBITDA 11,471 3,677 3,455 4,339
plus non-recurring charges 550 300 250 --
------- ------- ------- -------
EBITDA adjusted 12,021 3,977 3,705 4,339
EBITDA margin - adjusted 6.4% 6.3% 6.0% 6.9%
Nine months
ended Three months ended
4/30/99 4/30/99 1/31/99 10/31/98
-------- -------- -------- --------
(Restated)(Restated)(Restated)(Restated)
Sales $178,850 $61,283 $58,124 $59,443
Cost of sales 121,688 41,596 39,966 40,126
------- ------- ------- -------
Gross profit 57,162 19,687 18,158 19,317
Selling, general and
administrative expenses 48,558 15,511 18,292 14,755
Depreciation and amortization 6,889 2,255 2,306 2,328
(Gain) loss on disposal of
assets (8) (122) 79 35
------- ------- ------- -------
Operating income 1,723 2,043 (2,519) 2,199
Interest expense 3,454 1,179 1,332 943
------- ------- ------- -------
Income (loss) before taxes (1,731) 864 (3,851) 1,256
Income tax expense (benefit) 580 608 (1,107) 1,079
------- ------- ------- -------
Net income (loss) $ (2,311) $ 256 $(2,744) $ 177
======= ======= ======= =======
Earnings (loss) per common
share - basic: $ (0.23) $ 0.03 $ (0.27) $ 0.02
======= ======= ======= =======
Earnings (loss) per common
share - assuming dilution $ (0.23) $ 0.03 $ (0.27) $ 0.02
======= ======= ======= =======
Weighted average shares:
Common shares outstanding 10,075 10,085 10,069 10,069
Adjusted common shares
- assuming exercise of
stock options 10,075 10,222 10,069 10,127
Selected items as a percentage of sales
----------------------------------------
Sales 100.0% 100.0% 100.0% 100.0%
Cost of sales 68.0% 67.9% 68.8% 67.5%
------- ------- ------- -------
Gross profit 32.0% 32.1% 31.2% 32.5%
Selling, general and
administrative expenses 27.2% 25.3% 31.5% 24.8%
Depreciation and amortization 3.9% 3.7% 4.0% 3.9%
(Gain) loss on disposal of
assets 0.0% -0.2% 0.1% 0.1%
------- ------- ------- -------
Operating income 1.0% 3.3% -4.3% 3.7%
EBITDA margin 4.8% 7.0% -0.4% 7.6%
Proforma for non-recurring charges and adjustments
---------------------------------------------------
Selling, general and
administrative expenses 48,558 15,511 18,292 14,755
less non-recurring charges 2,153 53 2,100 --
------- ------- ------- -------
Selling, general and
administrative expenses
- adjusted 46,405 15,458 16,192 14,755
SG&A expenses as % of
revenues - adjusted 25.9% 25.2% 27.9% 24.8%
EBITDA 8,612 4,298 (213) 4,527
plus non-recurring charges 2,153 53 2,100 --
------- ------- ------- -------
EBITDA adjusted 10,765 4,351 1,887 4,527
EBITDA margin - adjusted 6.0% 7.1% 3.2% 7.6%
DYNAMEX INC.
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(In thousands)
(Unaudited)
Nine months ended
April 30,
2000 1999
-------------- --------------
(Restated)
OPERATING ACTIVITIES
Net income (loss) $ (453) $ (2,311)
Adjustments to reconcile
net income (loss) to net
cash provided by (used in)
operating activities:
Depreciation and
amortization 2,718 2,515
Amortization of
intangible assets 4,061 4,374
Deferred income taxes 261 (1,351)
Loss on disposal of
property and equipment (7) (8)
Changes in current
operating assets and
liabilities:
Accounts receivable (4,223) (560)
Prepaids and other
assets 800 1,541
Accounts payable and
accrued liabilities (746) 687
-------------- --------------
Net cash provided by
operating activities 2,411 4,887
-------------- --------------
INVESTING ACTIVITIES
Payments for acquisitions (241) (11,343)
Purchase of property and
equipment (2,382) (2,861)
-------------- --------------
Net cash used in investing
activities (2,623) (14,204)
-------------- --------------
FINANCING ACTIVITIES
Principal payments on
long-term debt (277) (519)
Net borrowings under line
of credit 3,200 9,680
Net proceeds from sale of
common stock -- 55
Proceeds from shareholder's
note 76 76
Other assets and deferred
offering costs (42) (164)
-------------- --------------
Net cash provided by
financing activities 2,957 9,128
-------------- --------------
EFFECT OF EXCHANGE RATES ON
CASH 182 179
-------------- -------------
NET INCREASE (DECREASE) IN
CASH 2,927 (10)
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 2,933 1,361
-------------- --------------
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 5,860 $ 1,351
============== ==============
SUPPLEMENTAL DISCLOSURE OF
NON-CASH INFORMATION
Cash paid for interest $ 2,909 $ 2,669
============== ==============
Cash paid for taxes $ 1,379 $ 2,134
============== ==============
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES
In conjunction with the
acquisitions described,
liabilities were
assumed as follows:
Fair value of assets
acquired $ 241 $ 16,831
Accrued contingent payments -- (5,000)
Common stock issued in
connection with acquistion -- (398)
Cash paid (241) (11,343)
-------------- -------------
Liabilities assumed and
incurred $ -- $ 90
============== ==============
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