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LEASEWAY TRANSPORTATION ANNOUNCES FINANCIAL RESULTS

 CLEVELAND, Oct. 29 /PRNewswire/ -- Leaseway Transportation today made its first announcement of financial results since becoming a publicly held company following its financial reorganization and emergence from Chapter 11 proceedings.
 The company's net earnings for the third quarter ended Sept. 30, 1993 were $303.0 million after giving effect to non-recurring reorganization costs of $10.5 million and an extraordinary gain of $319.5 million recognized upon emergence from Chapter 11. The prior year third quarter net loss of $17.7 million reflected substantial financing costs related to the company's highly leveraged financial position prior to its financial reorganization. For the first nine months of 1993, the company's net earnings were $308.9 million reflecting $13.4 million of non-recurring reorganization costs and the $319.5 million extraordinary gain. The prior year period's net loss of $50.6 million reflected substantially higher financing costs and a one- time charge of $12.7 million as a result of the adoption of SFAS 106 relating to post-retirement health benefits.
 The company reported a loss from operations of $3.8 million for the quarter ended Sept. 30, 1993 compared to a loss of $2.5 million for the same quarter in 1992. Revenues for the quarter were $138.8 million compared to $163.7 million a year ago. Earnings from operations for the first nine months of 1993 were $9.0 million, up $4.6 million from last year's level of $4.4 million. Revenues of $472.6 million were down $70.6 million from the first nine months of 1992.
 Operating results in the automotive distribution services segment for the third quarter of this year were unfavorable when compared to prior year results, primarily reflecting lost revenues in auto carriage operations. Richard A. Damsel, chairman and chief executive officer, said "Our largest customer, General Motors, has been experiencing production difficulty during the 1994 model changeover, and accordingly reduced the number of vehicles released for delivery in the third quarter of this year from the levels we expected earlier. Additionally, competitive pressure from the railroads has caused us to lose some market share to rails during the year. For the nine months, new business and expansion of business with existing customers in our automotive support operations, primarily the hauling of parts to assembly plants and aftermarket parts distribution, have improved operating results and helped to mitigate the downturn in auto carriage operations."
 The company indicated that operating results in its customized distribution segment, which primarily serves the retail and food industries, improved for the third quarter and first nine months of this year compared to the same periods in 1992 despite a substantial reduction in revenue caused by the loss of business with two major customers. In 1992, this segment's operations serving Sears Roebuck & Co. were significantly reduced because of Sears' reconfiguration of its distribution system, and in early 1993 Safeway closed a large distribution operation on the west coast. Third quarter operating results from the company's personnel leasing services operations were slightly below last year's results, but year-to-date operating results improved from the prior year level.
 Leaseway Transportation is a group of companies which provides customized transportation and logistics support services to manufacturers, distributors and retailers.
 LEASEWAY TRANSPORTATION CORPORATION
 Summary of Operations
 (Amounts in Thousands)
 Three Months Ended
 September 30,
 1993 1992
 Revenues
 Automotive Distribution Services $ 65,952 $ 74,880
 Customized Distribution Services 49,195 64,838
 Personnel Leasing Services 23,638 23,949
 Total Revenues $138,785 $163,667
 Operating Profit (Loss) $ (3,835) $ (2,490)
 Financing Costs 1,861 15,066
 Reorganization Costs 10,495 -
 Taxes 300 120
 Loss Before Extraordinary Item -
 Gain on Debt Discharge/Plan
 Settlement, and Cumulative
 Effect of Adoption of SFAS 106 (16,491) (17,676)
 Extraordinary Item - Gain on Debt
 Discharge/Plan Settlement 319,474 -
 Cumulative Effect of Adoption
 of SFAS 106 - -
 Net Earnings (Loss) $302,983 $(17,676)
 Nine Months Ended
 September 30,
 1993 1992
 Revenues
 Automotive Distribution Services $247,774 $259,787
 Customized Distribution Services 153,032 217,190
 Personnel Leasing Services 71,838 66,220
 Total Revenues $472,644 $543,197
 Operating Profit (Loss) $ 8,956 $ 4,356
 Financing Costs 5,336 41,852
 Reorganization Costs 13,362 -
 Taxes 800 360
 Loss Before Extraordinary Item -
 Gain on Debt Discharge/Plan
 Settlement, and Cumulative
 Effect of Adoption of SFAS 106 (10,542) (37,856)
 Extraordinary Item - Gain on Debt
 Discharge/Plan Settlement 319,474 -
 Cumulative Effect of Adoption
 of SFAS 106 - 12,723
 Net Earnings (Loss) $308,932 $(50,579)
 -0- 10/29/93
 /CONTACT: Ron Hutchison of Leaseway, 216-765-5102/


CO: Leaseway Transportation ST: Ohio IN: TRN SU: ERN

BM -- CL016 -- 8568 10/29/93 13:57 EDT
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Publication:PR Newswire
Date:Oct 29, 1993
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