SCS Transportation, Inc. Reports Record 2005 Results; 2005 Earnings Per Share Increase 21% Excluding Real Estate Gain.KANSAS CITY Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , Mo. -- SCS SCS, n strain/counterstrain, an approach of applying pressure to certain tender points in the muscles or joints to decrease or remove the pain sensed at the point of palpation. Transportation, 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 : SCST SCST Society for College Science Teachers SCST Society of Commercial Seed Technologists SCST Supply Chain Systems Transformation SCST Shanghai Commission of Science and Technology SCST Submarine Combat System Trainer SCST Status Check Set ), today reported full-year 2005 revenue of $1.1 billion, an increase of 12 percent from 2004. 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: 2005 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. improved significantly to $54.6 million, including a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern real estate gain of $7.0 million, compared with 2004 operating income of $40.8 million. Net income was $27.5 million, including $4.4 million after tax from the real estate gain, up from $19.3 million in 2004. Earnings per share were $1.82, including the real estate gain of $0.29, up from $1.26 in 2004. "For the third consecutive year, SCS Transportation delivered significantly improved earnings," said Bert Trucksess, chairman, president and chief executive officer. "Revenue surpassed $1 billion in 2005 and we achieved record results in earnings per share, even excluding a large real estate gain. We further strengthened our financial position, providing flexibility to take advantage of future opportunities. As we enter 2006, we are also encouraged by the strength of our consolidated fourth-quarter trends." Fourth-quarter revenue grew 14 percent to $288.3 million, from $251.9 million in the fourth quarter of 2004. Consolidated fourth-quarter operating income was $19.3 million, including the real estate gain, up from $9.1 million in the prior-year quarter. Net income was $10.7 million, up from $4.6 million in the fourth quarter of 2004. Earnings per share were $0.73, including the real estate gain, compared with earnings per share of $0.30 a year earlier. Saia Fourth-Quarter Operations --Revenue increased 22 percent to $202.4 million versus the prior-year quarter. --LTL tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. increased 13 percent and LTL LTL - Linear Temporal Logic yield grew 8 percent from a year earlier. --Operating income increased 33 percent and Saia's operating ratio Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: improved to 93.4 percent, both excluding the real estate gain. "Saia, a leading multi-region LTL carrier and our largest subsidiary, continues to excel in serving customers across its 30-state territory, delivering top-line growth and increased profitability," Trucksess said. "We believe Saia's prospects are very favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. and we expect to build upon the positive momentum of this business. We continue to evaluate geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. expansion opportunities and we believe the business is well-positioned to benefit from industry consolidation." Jevic Fourth-Quarter Operations --Revenue was $87.2 million, up 1 percent from the prior-year quarter. --Total tonnage was down 2 percent and overall yields were up 4 percent from a year earlier. --Operating income was $0.7 million and Jevic's operating ratio was 99.2 percent. Jevic's fourth-quarter 2004 operating income was $0.6 million, which included a charge of $3.8 million for an increase in estimated liability for workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. claims. "Profitability at Jevic, our hybrid hybrid (hī`brĭd), term applied by plant and animal breeders to the offspring of a cross between two different subspecies or species, and by geneticists to the offspring of parents differing in any genetic characteristic (see genetics). LTL and truckload carrier Merrian-Webster online dictionary defines truckload as " a load or amount that fills or could fill a truck". A truckload carrier is a trucking company that generally contracts an entire trailer-load to a single customer. business, has not been acceptable in recent years and, in August 2005, we gave Dave Gorman
David James Gorman (born March 2, 1971) is a documentary comedian and humorist. He performs comedy shows on stage in which he tells stories of extreme adventures and presents the evidence to a mandate A judicial command, order, or precept, written or oral, from a court; a direction that a court has the authority to give and an individual is bound to obey. A mandate might be issued upon the decision of an appeal, which directs that a particular action be taken, or upon a for change as the new President 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 Jevic. He is leading the evaluation and implementation of initiatives designed to improve current operations and profitability while maintaining high and consistent levels of service performance. We remain focused on growing Jevic's LTL tonnage, improving cost effectiveness and enhancing revenue quality, all with the goal of significantly improving profitability," Trucksess said. Financial Position and Outlook Based on consensus economic forecasts for 2006 and 2007 and ongoing consolidation in the LTL trucking industry, SCS Transportation expects to continue to benefit from a favorable supply-demand environment. The Company's operational priorities for 2006 include, among others, continued revenue growth and profit improvement in the current Saia geography geography, the science of place, i.e., the study of the surface of the earth, the location and distribution of its physical and cultural features, the areal patterns or places that they form, and the interrelation of these features as they affect humans. , potential expansion of Saia's geographic reach, and progress on the profit improvement program being implemented at Jevic. Total debt at December December: see month. 31, 2005, was $114.9 million, compared with $122.8 million at December 31, 2004. Debt to total capital stood at 33.5 percent at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , compared with 36.6 percent a year earlier. Net capital expenditures in 2005 were $53.7 million, including net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $8.8 million from the real estate sale. Including the delay of several originally planned 2005 expenditures, the company is planning net capital expenditures in 2006 of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $85 million plus up to an additional $25 million for real estate projects in Saia's existing geography. Conference Call SCST will hold a conference call to discuss annual and fourth-quarter results on Wednesday Wednesday: see week. , January January: see month. 25, 2006, at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). To participate in the call, please dial 1-800-275-8866 or dial 1-706-634-4936 for international calls. Callers should dial in five to 10 minutes in advance of the conference call. This call will be webcast live via the company web site at www.scstransportation.com and will be archived on the site. A replay of the call will be available two hours after the completion of the call through February February: see month. 1, 2006. The replay is available by dialing 1-800-642-1687 and using conference code 3703389. The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. can access the call via Thomson StreetEvents (www.streetevents.com), a password-protected event management site. SCS Transportation, Inc. provides trucking transportation and supply chain solutions to a broad base of customers 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. . With annual revenue of $1.1 billion, the Company focuses on regional and interregional in·ter·re·gion·al adj. Of, involving, or connecting two or more regions: interregional migration; interregional banking. less-than-truckload (LTL), and selected truckload truck·load n. The quantity that a truck can hold. truckload n → camión m lleno (TL) and time-definite services. Operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. are Saia, a multi-region LTL carrier based A transmission system that generates a fixed frequency (carrier) to contain the data being transmitted. See carrier. in Duluth Duluth (dəl  th`), city (1990 pop. 85,493), seat of St. Louis co., NE Minn., at the west end of Lake Superior, at the head of lake navigation and opposite Superior, Wis.; inc. 1870. , Ga., and Jevic, a
hybrid LTL and truckload carrier based in Delanco, N.J. Headquartered in
Kansas City, Mo., SCST has approximately 9,000 employees nationwide.The Securities and Exchange Commission encourages companies to disclose forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information so that investors can better understand the future prospects of a company and make informed investment decisions. This news release contains these types of statements, which are "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. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Words such as "anticipate," "estimate," "expect," "project," "intend," "may," "plan," "predict," "believe" and similar words or expressions are intended to identify forward-looking statements. We use such forward-looking statements regarding our future financial condition and results of operations and our business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets in this release. Investors should not place undue reliance on such forward-looking statements, and the Company undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements reflect the present expectation of future events of our management and are subject to a number of important factors, risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. These factors and risks include, but are not limited to, general economic conditions; the effects and outcomes of strategic evaluations; cost and availability of qualified drivers, fuel, purchased transportation, property, revenue equipment and other operating assets Operating Assets Another term for working capital. ; governmental regulations, including but not limited to Hours of Service, engine emissions emissions npl → émissions fpl emissions npl → Emissionen pl , compliance with recent legislation requiring companies to evaluate their internal control over financial reporting and Homeland Security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States ; dependence on key employees; inclement in·clem·ent adj. 1. Stormy: inclement weather. 2. Showing no clemency; unmerciful. in·clem weather; labor relations; integration risks; effectiveness of company-specific performance improvement initiatives; competitive initiatives and pricing pressures; terrorism terrorism, the threat or use of violence, often against the civilian population, to achieve political or social ends, to intimidate opponents, or to publicize grievances. risks; self-insurance self-insurance, n the setting aside of funds by an individual or organization to meet anticipated dental care expenses or dental care claims, and accumulation of a fund to absorb fluctuations in the amount of expenses and claims. claims, equity-based compensation and other expense volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the ; the Company's determination from time to time whether to purchase any shares under the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. program; and other financial, operational and legal risks and uncertainties detailed from time to time in the Company's SEC filings.
SCS Transportation, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
December December
31, 31,
2005 2004
--------- ---------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 16,865 $ 7,499
Accounts receivable 126,823 110,044
Prepaid expenses and other 30,557 35,721
--------- ---------
Total current assets 174,245 153,264
PROPERTY AND EQUIPMENT:
Cost 620,899 569,526
Less: Accumulated depreciation 275,366 248,914
--------- ---------
Net property and equipment 345,533 320,612
GOODWILL AND OTHER ASSETS 34,963 34,862
--------- ---------
Total assets $554,741 $508,738
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and checks outstanding $ 54,941 $ 33,193
Wages and employees' benefits 43,490 35,761
Other current liabilities 33,156 28,981
Current portion of long-term debt 5,000 1,263
--------- ---------
Total current liabilities 136,587 99,198
OTHER LIABILITIES:
Long-term debt 109,913 121,547
Deferred income taxes 58,062 57,662
Claims, insurance and other 21,787 17,789
--------- ---------
Total other liabilities 189,762 196,998
SHAREHOLDERS' EQUITY:
Common stock 14 15
Additional paid-in capital 194,398 205,800
Deferred compensation trust (1,322) (1,116)
Retained earnings 35,302 7,843
--------- ---------
Total shareholders' equity 228,392 212,542
--------- ---------
Total liabilities and shareholders' equity $554,741 $508,738
========= =========
SCS Transportation, Inc. and Subsidiaries
Consolidated Income Statements
For the Quarter and Year Ended December 31, 2005 and 2004
(Amounts in thousands, except per share data)
(Unaudited)
Fourth Quarter Year Ended
------------------- ---------------------
2005 2004 2005 2004
--------- --------- ----------- ---------
OPERATING REVENUE $288,320 $251,938 $1,098,031 $982,270
OPERATING EXPENSES:
Salaries, wages and
employees' benefits 154,475 141,211 594,644 549,511
Purchased transportation 27,661 23,282 99,134 92,099
Operating expenses and
supplies 64,767 51,000 235,292 187,096
Operating taxes and
licenses 10,580 9,941 42,146 38,017
Claims and insurance 6,855 6,687 32,645 27,758
Depreciation and
amortization 12,075 12,011 48,204 47,968
Operating (gains) and
losses (7,381) (1,333) (8,676) (3,067)
Integration charges - - - 2,054
--------- --------- ----------- ---------
Total operating expenses 269,032 242,799 1,043,389 941,436
--------- --------- ----------- ---------
OPERATING INCOME 19,288 9,139 54,642 40,834
NONOPERATING EXPENSES:
Interest expense 2,535 2,439 9,773 9,735
Other, net (399) (166) (519) (312)
--------- --------- ----------- ---------
Nonoperating expenses,
net 2,136 2,273 9,254 9,423
INCOME BEFORE INCOME TAXES 17,152 6,866 45,388 31,411
Income tax provision 6,437 2,239 17,929 12,152
--------- --------- ----------- ---------
NET INCOME $ 10,715 $ 4,627 $ 27,459 $ 19,259
========= ========= =========== =========
Average common shares
outstanding - basic 14,386 14,940 14,707 14,858
========= ========= =========== =========
Average common shares
outstanding - diluted 14,724 15,347 15,048 15,312
========= ========= =========== =========
Basic earnings per share $ 0.74 $ 0.31 $ 1.87 $ 1.30
========= ========= =========== =========
Diluted earnings per share $ 0.73 $ 0.30 $ 1.82 $ 1.26
========= ========= =========== =========
SCS Transportation, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Year Ended December 31, 2005 and 2004
(Amounts in thousands)
(Unaudited)
2005 2004
-------- --------
OPERATING ACTIVITIES:
Net cash from operating activities $83,353 $54,894
INVESTING ACTIVITIES:
Acquisition of property and equipment (67,596) (67,113)
Proceeds from disposal of property and equipment 13,895 10,670
Acquisition of subsidiary, net of cash received - (23,549)
-------- --------
Net cash used in investing activities (53,701) (79,992)
FINANCING ACTIVITIES:
Repayment of long-term debt (8,002) -
Repurchase of common stock (12,903) -
Proceeds from stock option exercises 619 1,727
-------- --------
Net cash from (used in) financing activities (20,286) 1,727
-------- --------
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS 9,366 (23,371)
CASH & CASH EQUIVALENTS, BEGINNING OF PERIOD 7,499 30,870
-------- --------
CASH & CASH EQUIVALENTS, END OF PERIOD $16,865 $ 7,499
======== ========
Saia Motor Freight Line, Inc.
Financial Information
For the Quarter and Year Ended December 31, 2005 and 2004
(Amounts in thousands)
Fourth Quarter Year Ended
---------------- % ---------------- %
2005 2004 Change 2005 2004 Change
---------------- ------ ---------------- ------
Operating revenue
(excluding fuel
surcharge) 178,508 152,747 16.9 679,906 607,810 11.9
Operating revenue 202,438 165,647 22.2 754,038 645,374 16.8
Operating income 20,419 10,090 55,294 35,823
Real estate (gain) and
integration charges(a) (7,036) - (7,036) 2,054
Operating ratio 89.9 93.9 92.7 94.4
Operating ratio
excluding real estate
gain and integration
charges(a) 93.4 93.9 93.6 94.1
Fourth Quarter
--------------------- %
2005 2004 Change
--------------------- --------
Workdays
F/S Revenue LTL 186,544 153,440 21.6
TL 15,894 12,207 30.2
Total 202,438 165,647 22.2
Revenue excluding LTL 186,090 153,018 21.6
revenue recognition TL 15,855 12,173 30.2
adjustment Total 201,945 165,191 22.2
Tonnage LTL 806 715 12.7
TL 174 148 18.0
Total 980 863 13.6
Shipments LTL 1,436 1,285 11.7
TL 24 20 20.5
Total 1,460 1,305 11.9
Revenue/cwt. LTL 11.55 10.70 7.9
TL 4.55 4.13 10.3
Total 10.30 9.58 7.6
Revenue/cwt. LTL 10.08 9.81 2.8
(excluding fuel TL 4.46 4.08 9.2
surcharge) Total 9.08 8.83 2.9
Revenue/shipment LTL 129.62 119.10 8.8
TL 660.71 611.25 8.1
Total 138.35 126.61 9.3
Pounds/shipment LTL 1,123 1,113 0.9
TL 14,513 14,815 (2.0)
Total 1,343 1,322 1.6
Fourth Quarter
-------------------
Amount/Workday
------------------- %
2005 2004 Change
------------------- ----------
Workdays 61 61
F/S Revenue LTL 3,058.1 2,515.4 21.6
TL 260.6 200.1 30.2
Total 3,318.7 2,715.5 22.2
Revenue excluding LTL 3,050.7 2,508.5 21.6
revenue recognition TL 259.9 199.6 30.2
adjustment Total 3,310.6 2,708.1 22.2
Tonnage LTL 13.21 11.72 12.7
TL 2.85 2.42 18.0
Total 16.06 14.14 13.6
Shipments LTL 23.54 21.06 11.7
TL 0.39 0.33 20.5
Total 23.93 21.39 11.9
Revenue/cwt. LTL
TL
Total
Revenue/cwt. LTL
(excluding fuel TL
surcharge) Total
Revenue/shipment LTL
TL
Total
Pounds/shipment LTL
TL
Total
(a) - Integration charges of $2.1 million incurred in the first half
of 2004 consist of employee retention and stay bonuses,
communications, re-logoing the fleet of Clark Bros., technology
integration and other items in connection with the integration of the
operations of Clark Bros. A $7.0 million gain was recognized on the
sale of real estate in 4Q05. Management believes that excluding these
charges and the real estate gain more accurately reflects the core
operating performance of Saia.
Jevic Transportation, Inc.
Financial Information
For the Quarter and Year Ended December 31, 2005 and 2004
(Amounts in thousands)
Fourth Quarter Year Ended
--------------- % ---------------- %
2005 2004 Change 2005 2004 Change
-------------- ------ ---------------- ------
Operating revenue
(excluding fuel
surcharge) 76,113 79,404 (4.1) 309,779 316,722 (2.2)
Operating revenue 87,161 86,291 1.0 345,272 336,896 2.5
Operating income 666 586 3,127 8,886
Actuarial workers'
compensation charge(a) - 3,800 - 4,400
Operating ratio 99.2 99.3 99.1 97.4
Operating ratio excluding
actuarial charge(a) 99.2 94.9 99.1 96.1
Fourth Quarter
--------------- %
2005 2004 Change
-------------- ------
Workdays
F/S Revenue LTL 54,436 55,525 (2.0)
TL 30,190 27,520 9.7
Other 2,535 3,246 (21.9)
Total 87,161 86,291 1.0
Revenue excluding LTL 54,121 55,364 (2.2)
revenue recognition TL 30,016 27,440 9.4
adjustment Other 2,535 3,246 (21.9)
Total 86,672 86,050 0.7
Tonnage LTL 242 257 (5.5)
TL 301 300 0.4
Total 543 557 (2.3)
Shipments LTL 199 217 (8.0)
TL 35 35 0.7
Total 234 252 (6.8)
Revenue/cwt. LTL 11.16 10.79 3.5
TL 4.99 4.58 9.0
Total 7.74 7.44 4.0
Revenue/cwt. LTL 9.70 9.89 (2.0)
(excl. fuel TL 4.33 4.19 3.2
surcharge) Total 6.72 6.82 (1.4)
Revenue/shipment LTL 271.40 255.34 6.3
TL 848.10 780.72 8.6
Total 358.32 328.62 9.0
Pounds/shipment LTL 2,431 2,367 2.7
TL 17,012 17,065 (0.3)
Total 4,641 4,421 5.0
Fourth Quarter
-----------------
Amount/Workday
----------------- %
2005 2004 Change
---------------- ------
Workdays 61 62
F/S Revenue LTL 892.4 895.6 (0.4)
TL 494.9 443.9 11.5
Other 41.6 52.4 (20.6)
Total 1,428.9 1,391.9 2.7
Revenue excluding LTL 887.2 893.0 (0.6)
revenue recognition TL 492.1 442.6 11.2
adjustment Other 41.6 52.4 (20.6)
Total 1,420.9 1,388.0 2.4
Tonnage LTL 3.97 4.14 (4.0)
TL 4.94 4.84 2.0
Total 8.91 8.98 (0.7)
Shipments LTL 3.27 3.50 (6.5)
TL 0.58 0.57 2.3
Total 3.85 4.07 (5.3)
Revenue/cwt. LTL
TL
Total
Revenue/cwt. LTL
(excl. fuel TL
surcharge) Total
Revenue/shipment LTL
TL
Total
Pounds/shipment LTL
TL
Total
(a) Charges of $3.8 million in 4Q04 and $1.9 million in 3Q04 recorded
to reflect actuarially estimated liability of workers' compensation
claims, of which $4.4 million relates to increases in actuarial
estimates for prior-year claims.
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