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TNT FREIGHTWAYS REPORTS 23.4 PERCENT INCREASE IN THIRD QUARTER NET INCOME

 TNT FREIGHTWAYS REPORTS 23.4 PERCENT
 INCREASE IN THIRD QUARTER NET INCOME
 ROSEMONT, Ill., Oct. 19 /PRNewswire/ -- TNT Freightways Corporation (NASDAQ: TNTF) today reported that results of operations for the third quarter ended Sept. 26, 1992 continued to show the same significant improvement in revenue and earnings as was reported in the first two quarters of the company's year. Operating income rose 37 percent to $13,068,000 compared to $9,537,000 for the third quarter a year ago. Revenue for the quarter increased 17 percent to $204,030,000 from $174,510,000 for the same period last year, and net income for the third quarter was $7,007,000 compared to $5,676,000 last year, an increase of 23.4 percent. Earnings per share for the quarter increased to 39 cents from 34 cents in 1991 on approximately 8 percent more shares outstanding.
 Operating income for the nine months ended Sept. 26, 1992 increased 35 percent to $32,409,000, compared to $23,981,000 last year, and revenue for the period increased 17 percent to $582,798,000 from $498,531,000 for the same period a year ago. Net income for the nine months in the current year increased 30.3 percent to $17,264,000 from $13,250,000 for the previous year. Earnings per share for the first nine months amounted to 97 cents compared to 79 cents in the first nine months of 1991, an increase of 23 percent on approximately 6 percent higher shares outstanding.
 All of the company's regional trucking subsidiaries, except TNT Red Star, showed double digit revenue, tonnage and shipment increases, both for the quarter and for the nine months, compared to similar periods for the previous year. Cam Carruth, president and CEO commented that, "these increases result from market share gains and also, in the case of TNT Dugan, TNT Reddaway and TNT United, geographic expansion. At TNT Red Star, however, revenue for the quarter increased only 1.4 percent, and for the nine month period, 3.4 percent compared to last year, primarily as a result of a continued weak economy in the northeast, over capacity in TNT Red Star's operating territory, and a continued emphasis in the region on significant price discounting as a result of these two factors."
 Carruth added that, "although there is little sign of a strong economic recovery, TNT Holland, the company's largest subsidiary, achieved record revenue, shipment and on-time service levels at an operating ratio of 89.6. TNT Bestway, TNT Red Star, TNT Dugan and TNT United all showed improvements in their operating ratio in the current quarter compared to the same period of the previous year. TNT Reddaway had an impressive 23 percent increase in revenue; however, the operating ratio rose to 89.5 from 87.4, primarily as a result of additional workers compensation costs."
 During the quarter, LTL revenues rose 15.8 percent, shipment count 11.7 percent and tonnage 14.2 percent, with an average weight per shipment increase of 2.2 percent compared to the 1991 quarter. A sluggish economy and a continued emphasis on price discounting limited price increases to 1.4 percent over the previous year.
 TNT Auto Warehousing, the company's automobile port processing and refurbishing business, had a difficult quarter and experienced a 17 percent reduction in revenue. A decrease in foreign car imports resulted in lower revenues at the port facilities, and fewer automobiles returned from rental companies reduced refurbishing revenues. The division incurred a small loss for the quarter compared to a profit in the third quarter of last year.
 The company's logistics subsidiaries, TNT Contract Logistics and Nationwide Logistics, were profitable for the quarter. In July 1992, TNT Contract Logistics acquired the business of TMS Carriers, a profitable dedicated service operation with revenue for its last fiscal year of $7.2 million.
 TNT Distribution expanded its operations to Denver and is currently assessing opportunities in the eastern United States. This division is profitable and growing at a satisfactory rate.
 During the first nine months, the company had net capital expenditures of $43 million, primarily for the purchase of additional revenue equipment, terminal facilities and the acquisition of TMS, referred to above.
 TNT Freightways operates a group of regional less-than-truckload general commodities motor carriers in the United States. These regional trucking subsidiaries provide overnight and second-day delivery service throughout the United States and into Canada. The company, through TNT Auto Warehousing, also operates an automobile port processing and refurbishing business.
 TNT Freightways Corporation
 Revenue and Operating Ratios
 For Regional Carriers
 Thirteen Weeks Ended Sept. 28, 1991 Sept. 26, 1992
 Company (Geographic Region) Operating Operating
 Revenue Ratios(A) Revenue Ratios(A)
 TNT Holland (Midwest) $74,204,000 89.2 $88,192,000 89.6
 TNT Red Star (Northeast) 43,891,000 98.1 44,500,000 97.7
 TNT Reddaway (West Coast) 16,150,000 87.4 19,864,000 89.5
 TNT Bestway (SW & Texas) 21,618,000 99.1 25,534,000 96.3
 TNT United (Rockies, NW) 5,950,000 89.6 7,794,000 89.2
 TNT Dugan (Plains) 6,176,000 90.6 8,421,000 87.7
 Thirty-Nine Weeks Ended Sept. 28, 1991 Sept. 26, 1992
 Company (Geographic Region) Operating Operating
 Revenue Ratios(A) Revenue Ratios(A)
 TNT Holland (Midwest) $209,838,000 89.8 $252,500,000 90.2
 TNT Red Star (Northeast) 127,501,000 99.0 131,779,000 98.6
 TNT Reddaway (West Coast) 44,885,000 88.5 56,328,000 88.2
 TNT Bestway (SW & Texas) 62,156,000 98.7 72,702,000 98.6
 TNT United (Rockies, NW) 16,425,000 91.4 21,095,000 89.6
 TNT Dugan (Plains) 17,668,000 92.4 21,889,000 89.3
 (A) -- Operating ratio as defined by Interstate Commerce Commission is direct operating costs as a percentage of revenue.
 Condensed Consolidated Statements of Income
 Thirteen Weeks Ended Thirty-Nine Weeks Ended
 Sept. 28, Sept. 26, Sept. 28, Sept. 26,
 1991 1992 1991 1992
 Revenue $174,510,000 $204,030,000 $498,531,000 $582,798,000
 Income from
 operations (A) 9,537,000 13,068,000 23,981,000 32,409,000
 Other (expense)
 net 354,000 (556,000) (177,000) (1,798,000)
 Income before
 income tax 9,891,000 12,512,000 23,804,000 30,611,000
 Provision for
 income tax 4,215,000 5,505,000 10,554,000 13,347,000
 Net income 5,676,000 7,007,000 13,250,000 17,264,000
 Net income per
 share $0.34 $0.39 $0.79 $0.97
 Average shares
 outstanding 16,800,000 18,112,500 16,800,000 17,852,885
 (A) -- After deduction for amortization of intangibles of $1,506,000 in the third quarter of 1992 and $2,055,000 in the third quarter of 1991, and after deduction for year-to-date amortization of intangibles of $5,391,000 in 1992 and $6,512,000 in 1991.
 Condensed Consolidated Balance Sheets
 Dec. 28, 1991 Sept. 26, 1992
 ASSETS
 Current assets $89,544,000 $102,643,000
 Due from affiliates 39,803,000 --
 Net property and equipment 169,985,000 193,601,000
 Net intangible assets 89,739,000 85,639,000
 Other assets 1,119,000 3,217,000
 Total assets $390,190,000 $385,100,000
 LIABILITIES & STOCKHOLDERS' EQUITY
 Current portion of long-term debt $3,028,000 $796,000
 Accounts payable and other
 current liabilities 60,421,000 90,579,000
 Total current liabilities 63,449,000 91,375,000
 Long-term debt 12,691,000 32,609,000
 Due to affiliates 88,951,000 --
 Other long-term liabilities 19,319,000 18,690,000
 Total long-term liabilities 120,961,000 51,299,000
 Common stockholders' equity 205,780,000 242,426,000
 Total liabilities and
 stockholders' equity $390,190,000 $385,100,000
 -0- 10/19/92
 /CONTACT: Chris Ellis of TNT Freightways Corp., 708-696-0200/
 (TNTF) CO: TNT Freightways Corporation ST: Illinois IN: TRN SU: ERN


TS -- NY011 -- 1360 10/19/92 08:42 EDT
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