Allied Holdings Reports Improved First Quarter Results
DECATUR, Ga., April 23 Allied Holdings, Inc. today reported results for the first quarter ended March 31, 2002. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter of 2002 were a positive $16.4 million, a significant improvement over the negative $8.2 million of EBITDA reported during the first quarter last year. EBITDA for the first quarter of 2001 included a $5.0 million charge for severance and workforce reduction expenses.
Revenues for the first quarter of 2002 were $213.3 million compared to revenues of $218.2 million in the first quarter last year. The Company reported a net loss of $1.2 million, or $0.14 per share, during the first quarter of 2002, versus a net loss of $18.9 million, or $2.35 per share during the first quarter last year. The first quarter 2002 net loss included a $1.7 million after-tax gain on the early extinguishment of the Company's subordinated notes and a $550,000 after-tax gain on the sale of assets. The first quarter 2001 net loss included an after-tax charge of $3.2 million for severance and workforce reduction expenses.
Commenting on the results, Hugh E. Sawyer, Allied's President and Chief Executive Officer, said, ``While the Company experienced a net loss during the first quarter, Allied did make a small net profit in the month of March. This was the first month the Company has been profitable since September 2000, excluding extraordinary gains. Net income for the month of March 2002, excluding the one-time gains discussed above, was $550,000.'' Mr. Sawyer added, ``During the first quarter of 2002, the Company experienced a $24.6 million improvement in EBITDA versus our results in the first quarter of 2001. Allied's performance has improved due to the execution of our turnaround initiatives which included raising pricing, eliminating non- contributory expenses and assets, and closing non-performing locations.''
``We are particularly gratified to report signs of economic progress despite lower revenues in the first quarter of 2002 compared to the first quarter of last year.'' Sawyer added, ``Although Allied is still a challenging turnaround and we have much more to accomplish, I remain cautiously optimistic that we will achieve a stable operating platform in fiscal 2002.''
During the first quarter of 2002, the Company repaid $9.1 million of long- term debt, compared to borrowings of long-term debt of $13.2 million in the first quarter of 2001. The Company received $2.2 million of proceeds from the sale of property and equipment in the first quarter of 2002 compared to $400,000 of proceeds in the first quarter last year. In addition, capital expenditures were $2.6 million in the first quarter of 2002 compared to $7.6 million in the first quarter last year.
``We continue to focus on de-leveraging the Company and repaid $9 million of long-term debt in the first quarter,'' Mr. Sawyer said. ``We sold our investment in Brazil earlier this month, which generated $2.7 million of cash to pay down debt. Also, during the first quarter we initiated a new fleet refurbishment program that is expected to enable the Company to refurbish approximately 15% of our active fleet this year. We will strive to continue to de-leverage the Company while at the same time making strategic investments in the people, equipment and core processes needed to better serve our clients.''
About Allied Holdings
Allied Holdings, Inc. is the parent company of several subsidiaries engaged in providing distribution and transportation services of new and used vehicles to the automotive industry. The services of Allied's subsidiaries span the entire finished vehicle distribution continuum, and include logistics, car-hauling, intramodal transport, inspection, accessorization, and dealer prep. Allied, through its subsidiaries, is the largest company in North America specializing in the delivery of vehicles.
Statements in this press release that are not strictly historical are ``forward looking'' statements. Such statements include, without limitations, any statements containing the words ``believe,'' ``anticipate,'' ``estimate,'' ``expect,'' ``intend,'' ``plan,'' ``seek,'' and similar expressions. Investors are cautioned that such statements are subject to certain risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks and uncertainties include economic recessions or extended or more severe downturns in new vehicle production or sales, the highly competitive nature of the automotive distribution industry, the ability to comply with the terms of its debt agreements, the ability of the Company to obtain financing in the future, the Company's highly leveraged financial position, dependence on the automotive industry, labor disputes involving the Company or its significant customers, the dependence on key personnel who have been hired or retained by the Company, the availability of strategic acquisitions, dispositions, or joint venture partners, changes in regulatory requirements which are applicable to the company's business, risks associated with conducting business in foreign countries, and changes in vehicle sizes and weights which may impact vehicle deliveries per load. Investors are urged to carefully review and consider the various disclosures made by the Company in this press release and in the Company's reports filed with the Securities and Exchange Commission.
NOTE:
ALLIED HOLDINGS, INC. AND SUBSIDIARIES
2002 FIRST QUARTER EARNINGS RELEASE
(In Thousands, Except Per Share Data)
(Unaudited)
For the Three Months Ended
March 31
2002 2001
Revenues $213,259 $218,179
Net loss after extraordinary gain on
early extinguishment of debt ($1,156) ($18,862)
Loss per share - basic and diluted ($0.14) ($2.35)
Weighted average common shares
outstanding - basic and diluted 8,252 8,020
ALLIED HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands)
March 31, December 31
2002 2001
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $19,615 $10,543
Short-term investments 64,658 64,794
Receivables, net of allowance
for doubtful accounts 62,684 72,292
Inventories 5,241 5,349
Deferred tax assets 34,334 32,403
Prepayments and other current
assets 17,490 18,921
Total current assets 204,022 204,302
PROPERTY AND EQUIPMENT, NET 202,436 214,641
OTHER ASSETS:
Goodwill, net 90,174 90,230
Other 30,820 24,219
Total other assets 120,994 114,449
Total assets $527,452 $533,392
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Current maturities of long-
term debt $3,507 $2,625
Trade accounts payable 37,713 40,232
Accrued liabilities 88,978 82,963
Total current
liabilities 130,198 125,820
LONG-TERM DEBT, less current
maturities 276,534 286,533
POSTRETIREMENT BENEFITS OTHER THAN
PENSIONS 9,535 9,363
DEFERRED INCOME TAXES 21,612 21,383
OTHER LONG-TERM LIABILITIES 72,803 72,296
STOCKHOLDERS' EQUITY:
Common stock, no par value;
20,000 shares authorized,
8,252 and 8,293 shares
outstanding at March 31,
2002 and December 31,
2001, respectively --- ---
Additional paid-in capital 46,603 46,520
Treasury stock, 139 shares at
cost at March 31, 2002 and
December 31, 2001,
respectively (707) (707)
Retained deficit (20,050) (18,894)
Accumulated other
comprehensive loss, net of
tax (9,076) (8,922)
Total stockholders'
equity 16,770 17,997
Total liabilities and
stockholders' equity $527,452 $533,392
ALLIED HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
(Unaudited)
For the Three Months Ended
March 31
2002 2001
REVENUES $213,259 $218,179
OPERATING EXPENSES:
Salaries, wages and fringe
benefits 118,536 131,717
Operating supplies and expenses 30,905 41,442
Purchased transportation 21,779 23,296
Insurance and claims 10,571 13,289
Operating taxes and licenses 8,463 8,626
Depreciation and amortization 13,663 15,191
Rents 1,354 2,070
Communications and utilities 1,992 2,038
Other operating expenses 3,260 3,856
Total operating
expenses 210,523 241,525
Operating income
(loss) 2,736 (23,346)
OTHER INCOME (EXPENSE):
Equity in earnings of UK and
Brazil joint ventures, net of
tax --- 1,209
Interest expense (8,122) (8,466)
Interest income 272 964
Other, net 822 167
(7,028) (6,126)
LOSS BEFORE INCOME TAXES &
EXTRAORDINARY ITEM (4,292) (29,472)
INCOME TAX BENEFIT 1,431 10,610
NET LOSS BEFORE EXTRAORDINARY ITEM (2,861) (18,862)
EXTRAORIDINARY GAIN ON EARLY
EXTINGUISHMENT OF DEBT, NET OF TAX 1,705 ---
NET LOSS ($1,156) ($18,862)
BASIC & DILUTED NET LOSS PER COMMON
SHARE:
NET LOSS BEFORE EXTRAORDINARY ITEM ($0.35) ($2.35)
EXTRAORDINAY GAIN ON EARLY
EXTINGUISHMENT OF DEBT 0.21 ---
NET LOSS ($0.14) ($2.35)
COMMON SHARES OUTSTANDING - BASIC AND
DILUTED 8,252 8,020
ALLIED HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
For the Three Months Ended
March 31
2002 2001
(Unaudited) (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ($1,156) ($18,862)
Adjustments to reconcile net loss
to net
cash provided by operating
activities:
Depreciation and amortization 13,663 15,191
Amortization of deferred
financing costs 1,045 ---
Gain on sale of assets (822) (167)
Deferred income taxes (1,767) (10,593)
Compensation expense related
to stock options and grants 59 69
Equity in earnings of joint
ventures --- (1,209)
Amortization of Teamsters
Union signing bonus 600 600
Change in operating assets and
liabilities excluding
effect of businesses
acquired:
Receivables, net of
allowance for doubtful
accounts 9,473 15,161
Inventories 99 232
Prepayments and other
current assets 1,405 504
Trade accounts payable (2,467) (4,348)
Accrued liabilities 6,878 15,855
Total adjustments 28,166 31,295
Net cash provided by
operating activities 27,010 12,433
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and
equipment (2,626) (7,579)
Proceeds from sale of property and
equipment 2,185 436
Investment in joint ventures --- (464)
Decrease (increase) in short-term
investments 136 (8,993)
Decrease (increase) in the cash
surrender value of life insurance 183 (120)
Net cash used in
investing activities (122) (16,720)
CASH FLOWS FROM FINANCING ACTIVITIES:
(Repayment) proceeds from issuance
of long-term debt, net (9,117) 13,193
Payment of deferred financing
costs (8,803) ---
Proceeds from issuance of common
stock 24 85
Other, net 125 (2,427)
Net cash (used in)
provided by financing
activities (17,771) 10,851
EFFECT OF EXCHANGE RATE CHANGES ON
CASH
AND CASH EQUIVALENTS (45) (1,068)
NET INCREASE IN CASH AND CASH
EQUIVALENTS 9,072 5,496
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 10,543 2,373
CASH AND CASH EQUIVALENTS AT END OF
PERIOD $19,615 $7,869
ALLIED HOLDINGS, INC. AND SUBSIDIARIES
2002 FIRST QUARTER EARNINGS RELEASE
OPERATING DATA
(Unaudited)
THREE MONTHS ENDED
MARCH 31
2002 2001
ALLIED HOLDINGS, EXCLUDING AAG -
CANADA & AXIS
REVENUES $171,579,000 $175,143,000
OPERATING LOSS ($462,000) ($21,090,000)
OPERATING RATIO 100.27% 112.04%
VEHICLES DELIVERED 1,666,594 1,829,222
LOADS DELIVERED 205,873 226,307
VEHICLES PER LOAD 8.10 8.08
REVENUE PER VEHICLE $102.95 $95.75
PERCENT DAMAGE FREE DELIVERY 99.7% 99.6%
NUMBER OF
AVERAGE ACTIVE RIGS 3,092 3,415
AVERAGE EMPLOYEES
DRIVERS 3,168 3,892
OTHERS 1,991 2,373
ALLIED AUTOMOTIVE GROUP - CANADA:
REVENUES $35,031,000 $36,881,000
OPERATING INCOME (LOSS) $3,035,000 ($1,804,000)
OPERATING RATIO 91.34% 104.89%
VEHICLES DELIVERED 533,468 534,231
LOADS DELIVERED 70,803 70,293
VEHICLES PER LOAD 7.53 7.60
REVENUE PER VEHICLE $65.67 $69.04
PERCENT DAMAGE FREE DELIVERY 99.8% 99.7%
NUMBER OF
AVERAGE ACTIVE RIGS 740 862
AVERAGE EMPLOYEES
DRIVERS 1,107 1,223
OTHERS 504 528
AXIS GROUP:
REVENUES $6,649,000 $6,155,000
OPERATING INCOME (LOSS) $163,000 ($452,000)