Roadway 2000 Revenues Surpass $3 Billion: Earnings $2.98 Per Share, Up 25%
AKRON, Ohio--Jan. 23, 2001--Roadway Express, Inc. today reported revenues of $3.04 billion for the year ended December 31, 2000, up 8%, when compared to revenues of $2.81 billion in 1999. This is the first time in Company history that revenues exceeded the $3 billion threshold.Net income for the year increased 23.5% to $56,542,000, or $2.98 per share (diluted), when compared to net income of $45,773,000, or $2.39 per share, for 1999. In 2000, business levels as indicated by total tonnage were flat, as the 1.4% increase in less-than-truckload (LTL) tonnage was offset by a 5.7% decrease in truckload tonnage. In 2000, revenue per ton increased 8% versus last year.
For the 16 weeks constituting the Company's fourth quarter, revenues were up 2.3% to $956,015,000, when compared with revenues of $934,596,000 for the fourth quarter of 1999. Net income for the quarter rose 23.7% to $25,435,000, or $1.34 per share (diluted), when compared to net income of $20,565,000, or $1.07 per share, during the same period in 1999. Fourth quarter tonnage was down 8% compared to fourth quarter 1999. For the quarter, LTL tons decreased 6% and truckload tonnage was down 15.9%. Revenue per ton was 11.2% higher than the same period last year.
Michael W. Wickham, Chairman of the Board of Directors and CEO of Roadway Express, stated, "As the national economy slowed, Roadway and its employees performed well under challenging circumstances. While facing declining tonnage levels in the second half of the year, we were able to increase our net income on both a quarterly and year-over-year basis. We attribute this to stringent cost control, the management of our own capacity through the planned use of equipment leasing and intermodal options, plus a stable pricing environment."
"We anticipate lower business volumes in the first half of 2001 compared to the stronger than normal business levels we experienced in 2000. However, we have cost control measures in place and believe that pricing levels will continue to remain stable. Based on that, we don't expect any significant adverse impact on margins compared to the first half of 2000," Wickham continued.
"During the year, we increased capital spending by 44% to purchase new trailers, pickup and delivery tractors and for information technology hardware. The revenue equipment will reduce short-term rental costs and the information technology will enhance our operations and improve customer service. Next year, capital expenditures are expected to be approximately $90 million," Wickham added.
"Overall, as we look at 2001, we remain committed to our basic strategies of maintaining the excellence of our core LTL service, growth through specialized products and cost containment," Wickham concluded.
Condensed Statements of Consolidated Income, Consolidated Balance Sheets, Consolidated Cash Flows, and Operating Data for Roadway Express' fourth quarter and year ended December 31, 2000, with comparable figures for both in 1999, are as follows:
Condensed Statements of Consolidated Income
Roadway Express, Inc. and Subsidiaries
Fourth Quarter Ended
(Sixteen Weeks)
December 31, 2000 December 31, 1999
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(in thousands, except per share data)
Revenue $ 956,015 $ 934,596
Operating expenses:
Salaries, wages and benefits 583,708 575,836
Operating supplies and expenses 167,963 161,312
Purchased transportation 94,358 100,349
Operating taxes and licenses 23,410 23,312
Insurance and claims 23,448 23,586
Provision for depreciation 18,702 15,231
Loss on sale of operating property 712 226
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Total operating expenses 912,301 899,852
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Operating income 43,714 34,744
Other income, net 377 1,084
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Income before income taxes 44,091 35,828
Provision for income taxes 18,656 15,263
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Net income $ 25,435 $ 20,565
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Earnings per share - basic $ 1.36 $ 1.09
Earnings per share - diluted $ 1.34 $ 1.07
Average shares outstanding - basic 18,657 18,823
Average shares outstanding - diluted 18,928 19,142
Condensed Statements of Consolidated Income
Roadway Express, Inc. and Subsidiaries
Year Ended
December 31, 2000 December 31, 1999
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(in thousands, except per share data)
Revenue $ 3,039,560 $ 2,813,214
Operating expenses:
Salaries, wages and benefits 1,889,928 1,793,594
Operating supplies and expenses 544,774 468,452
Purchased transportation 308,089 289,544
Operating taxes and licenses 78,271 76,113
Insurance and claims 64,442 62,700
Provision for depreciation 55,675 45,492
Loss on sale of operating property 1,969 103
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Total operating expenses 2,943,148 2,735,998
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Operating income 96,412 77,216
Other income, net 1,872 2,529
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Income before income taxes 98,284 79,745
Provision for income taxes 41,742 33,972
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Net income $ 56,542 $ 45,773
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Earnings per share - basic $ 3.03 $ 2.43
Earnings per share - diluted $ 2.98 $ 2.39
Average shares outstanding - basic 18,662 18,811
Average shares outstanding - diluted 18,992 19,119
Condensed Consolidated Balance Sheets
Roadway Express, Inc. and Subsidiaries
December 31, 2000 December 31, 1999
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(in thousands)
Assets
Current assets:
Cash and cash equivalents $ 64,939 $ 80,797
Other current assets 315,939 317,539
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Total current assets 380,878 398,336
Net carrier operating property 428,685 380,328
Goodwill, net 16,086 15,360
Deferred income taxes 44,756 37,384
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Total assets $ 870,405 $ 831,408
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Liabilities and shareholders' equity
Current liabilities:
Accounts payable $ 178,890 $ 190,499
Other current liabilities 177,803 172,860
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Total current liabilities 356,693 363,359
Long-term liabilities 173,841 177,094
Shareholders' equity 339,871 290,955
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Total liabilities and equity $ 870,405 $ 831,408
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Condensed Statements of Consolidated Cash Flows
Roadway Express, Inc. and Subsidiaries
Year Ended
December 31, 2000 December 31,1999
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(in thousands)
Cash flows from operating activities:
Net income $ 56,542 $ 45,773
Adjustments 40,442 54,068
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Net cash provided by operating activities 96,984 99,841
Net cash used by investing activities (108,885) (75,731)
Net cash used by financing activities (3,854) (3,756)
Effect of exchange rate changes on cash (103) 211
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Net (decrease) increase in cash
and cash equivalents (15,858) 20,565
Cash and cash equivalents at beginning of
year 80,797 60,232
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Cash and cash equivalents at end of year $ 64,939 $ 80,797
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Operating Data
Roadway Express, Inc. and Subsidiaries
Fourth Quarter Ended
(Sixteen Weeks)
December 31, 2000 December 31, 1999
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LTL tons 2,068,750 2,199,646
Truckload tons 474,449 563,822
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Total tons 2,543,199 2,763,468
LTL shipments 4,417,060 4,697,656
Truckload shipments 57,312 67,282
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Total Shipments 4,474,372 4,764,938
Revenue per LTL ton $ 424.51 $ 385.48
Revenue per truckload ton $ 164.01 $ 153.74
Revenue per ton $ 375.91 $ 338.20
Cost per ton $ 358.72 $ 325.62
Operating ratio 95.4% 96.3%
Profit margin 2.7% 2.2%
Year Ended
(Fifty-two Weeks)
December 31, 2000 December 31, 1999
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LTL tons 6,874,792 6,778,820
Truckload tons 1,570,801 1,664,899
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Total tons 8,445,593 8,443,719
LTL shipments 14,775,667 14,714,583
Truckload shipments 191,311 200,866
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Total Shipments 14,966,978 14,915,449
Revenue per LTL ton $ 405.80 $ 378.23
Revenue per truckload ton $ 159.00 $ 149.70
Revenue per ton $ 359.90 $ 333.17
Cost per ton $ 348.48 $ 324.03
Operating ratio 96.8% 97.3%
Profit margin 1.9% 1.6%
Roadway Express operates with 12 weeks in each of the first three quarters and 16 weeks in the fourth quarter.
While most of the information provided herein is historical, some of the comments made are forward-looking statements. The Company's actual performance may differ from that forecast as a result of variable factors such as the state of the national economy, fuel costs, capacity and rate levels in the motor-freight industry and the success of the Company's operating plans.
Included in the Dow Jones Transportation Average, Roadway Express, Inc. is a leading transporter of industrial and commercial goods with a variety of innovative services designed to meet customer needs. Roadway, an ISO 9002 certified carrier, provides seamless service between all 50 states, Canada, Mexico and Puerto Rico with export services to 66 countries. The Company is dedicated to being the most reliable, responsive, efficient -- and safe -- carrier in the industry. For more information, contact the Company at www.roadway.com.