Celadon Group Reports Fourth Quarter and Year End Results
INDIANAPOLIS--Aug. 9, 2002--Celadon Group, Inc.| -- | Quarter's earnings at 14 cents, up from prior year loss of 36 cents |
| -- | Fourth Quarter Revenue up 17% to $96 million from adjusted $82 million |
| -- | TruckersB2B revenue and profit up significantly |
Celadon Group, Inc. today announced financial results for the fiscal 2002 fourth quarter and year ended June 30, 2002.
Fourth-quarter net income was $1.1 million, or 14 cents per share, on 8,000,000 diluted shares outstanding, compared with a loss of $2.7 million, or 36 cents per share, based on 7,540,000 diluted shares outstanding in the prior year's comparable period. Consolidated net loss for the last year's June quarter, excluding the loss related to the divestiture of the Company's flatbed division, was $0.5 million, or 5 cents per diluted share.
Consolidated revenues for the three months ended June 30, 2002 was $96.0 million, a 17 percent increase over an adjusted $81.8 million in the June 2001 quarter. The adjusted revenues for last year's June quarter exclude revenues from the flatbed division, which was sold at the end of June 2001. Including these revenues, reported revenue in the prior year's comparable period was $88.1 million.
Consolidated operating income increased to $3.6 million in the June 2002 quarter from $1.5 million in the June 2001 quarter. "Higher operating income is being driven by significantly increased revenue associated with the successful integration of various former Burlington Motor Carriers' customers, as well as the continued success of our cost reduction efforts. Revenue related to these customers more than offset a decline related to reduced fuel surcharges," said Stephen Russell, Chairman and Chief Executive Officer.
Consolidated revenues for fiscal 2002 increased approximately 7 percent to $337.0 million compared to adjusted fiscal 2001 revenue of $314.8 million. The adjusted revenues for fiscal 2001 exclude revenues from the divested flatbed division and higher pass-through revenues related to U.S. border-crossing costs. Net income increased to $1.7 million, or 22 cents a share, on 7,753,000 diluted shares outstanding for fiscal 2002 compared with a loss of $5.3 million, or 70 cents a share, on 7,649,000 diluted shares outstanding in fiscal 2001.
"Expenses associated with on-boarding of over 300 tractors and related trailers, as well as integration of these tractors and drivers into our system negatively impacted the quarter. The June quarter was favorably impacted by $380,000 as a result of the early adoption of the provisions of the Financial Standards Accounting Board Statement 142 on good will, in part offset by the $150,000 operating income earned by the divested flatbed division in the June 2001 quarter," he added.
"The results for the quarter demonstrate the company's continued upward trend and represents the fourth consecutive quarter of improved profitability. Further, we are hopeful that the Mexican border will open in accordance with the provision of NAFTA within the next eight weeks. Celadon is uniquely positioned to benefit as a consequence of our ownership of a Mexican trucking company and our density in the traffic lanes between the U.S. and Mexico," Russell added.
TruckersB2B generated operating income of $273,000 in this year's fourth quarter compared with $91,000 in the prior year's comparable period. TruckersB2B revenue was $2.0 million in the June 2002 quarter, an increase of 60% over prior year's comparable period. Revenue reflects fees and rebates only, not the value of the goods and services related to these transactions.
Paul Will, Chief Financial Officer, stated, "We are pleased with the speed at which the new customers from Burlington have been added to our revenue base. Further, the effect of the cost reductions implemented in 2000 and 2001, coupled with the added revenue, are now translating to significant gains in operating results."
Conference Call Information
An investor conference call is scheduled for Monday, August 12, at 10:00 a.m. (Eastern). Stephen Russell and Paul Will will discuss the results of the quarter and year end, as well as the outlook for 2003. To listen and participate in a questions-and-answers exchange, simply dial (888) 881-4892 at least five minutes prior to the start time. Otherwise, you may listen to the call via website: http://viavid.com/vvasx/0000063000000000.asx
Celadon Group, Inc. is a truckload carrier headquartered in Indianapolis, that operates in the U.S., Canada and Mexico, and, is the majority owner of TruckersB2B, Inc., which is a provider of cost benefits to over 12,000 member fleets. Please visit the company's websites at: www.celadongroup.com and www.truckersb2b.com.
The discussion set forth above as well as oral statements made by officers of the company relating thereto, may contain forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such comments are based upon information currently available to management and management's perception thereof as of the date of this press release. Actual results of the company's operations could materially differ from those forward-looking statements. Such differences could be caused by a number of factors including, but not limited to, potential adverse affects of regulation; changes in competition and the effects of such changes; increased competition; change in fuel prices; changes in economic, political or regulatory environments; changes in the availability of a stable labor force; ability of the company to hire drivers meeting company standards; changes in management strategies; environmental or tax matters; and risks described from time to time in reports filed by the company with the Securities and Exchange Commission. Readers should take these factors into account in evaluating any such forward-looking statements.
- tables follow -
Key Financial and Operating Statistics
For the three months ended For the fiscal year ended
June 30, June 30,
2002 2001(a) 2002 2001(a)
---- ------- ---- -------
($000s)
Truckload $94,030 $86,854 $330,321 $347,390
TruckersB2B 2,013 1,255 6,678 4,428
-------- -------- -------- --------
Total Revenue $96,043 $88,109 $336,999 $351,818
Operating expenses:
Salaries, wages
and emp.
benefits 29,773 24,886 100,373 95,956
Fuel 10,491 9,774 36,047 39,818
Operating costs
and supplies 6,982 7,163 28,088 26,756
Insurance and
claims 3,742 2,873 12,032 10,104
Depreciation and
amortization 4,038 3,945 13,690 15,409
Rent and
purchased
transportation 30,450 32,185 112,144 134,094
Cost of products
and services
sold 1,273 726 4,062 2,697
Professional and
consulting fees 497 542 1,663 2,867 (c)
Communications
and utilities 1,055 1,009 3,903 3,985
Permits, licenses
and taxes 1,946 1,249 6,821 6,034
General,
administrative
and selling 2,149 2,296 7,631 9,750
-------- -------- -------- --------
Total operating
expenses 92,396 86,648 326,454 347,470
-------- -------- -------- --------
Operating income (loss)
Truckload $3,374 $1,370 $9,659 $6,644
TruckersB2B 273 91 886 (2,296)(c)
-------- -------- -------- --------
Total operating
income $3,647 $1,461 $10,545 $4,348
Other expense, net 1,923 5,576 (b) 7,621 12,310 (b)
-------- -------- -------- --------
Income (loss)
before income
taxes 1,724 (4,115) 2,924 (7,962)
Provision (benefit)
for income taxes 633 (1,386) 1,215 (2,626)
-------- -------- -------- --------
Net income (loss) $1,091 $(2,729) $1,709 $(5,336)
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Earnings (loss) per Common Share:
Diluted earnings
(loss) Per Share $0.14 $(0.36) $0.22 $(0.70)
Basic earnings
(loss) Per Share $0.14 $(0.36) $0.22 $(0.70)
Average Shares Outstanding:
Diluted 8,000 7,540 7,753 7,649
Basic 7,652 7,540 7,611 7,649
a) Includes the results from the flatbed division that was divested
in June 2001.
b) Includes a one-time charge of $3.7 million related to the sale of
the Company's flatbed division, which was primarily non-cash.
c) Includes a one-time charge of $0.8 million related to the
write-off of the costs associated with the postponed IPO of
TruckersB2B, Inc.
For the three months ended For the fiscal year ended
June 30, June 30,
2002 2001 2002 2001
---- ---- ---- ----
Operating Statistics
(U.S./Canada)
Average revenue
per loaded
mile (1) $1.271 $1.313 $1.262 $1.293
Average revenue
per total
mile (1) $1.168 $1.202 $1.162 $1.187
Avg. revenue per
tractor per
week (1) $2,595 $2,563 $2,480 $2,600
Average miles
per tractor
per week 2,222 2,133 2,134 2,191
Weighted avg.
tractors for
period 2,325 2,083 2,142 2,010
Tractors at end
of period (2) 2,568 2,368 2,568 2,368
Trailers at end
of period (2) 6,758 6,537 6,758 6,537
(1) Includes fuel surcharge
(2) Includes Mexico and Flatbed
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
June 30, June 30,
2002 2001
---- ----
ASSETS
Current assets:
Cash and cash equivalents...................... $299 $794
Trade receivables, net of allowance ........... 54,796 49,911
Accounts receivable - other.................... 5,728 5,722
Prepaid expenses and other current assets...... 6,222 9,015
Tires in service ............................. 4,181 4,455
Income tax recoverable......................... --- 597
Deferred income taxes ........................ --- 1,768
-------- --------
Total current assets ........................ 71,226 72,262
Property and equipment........................... 140,142 144,383
Less accumulated depreciation and amortization. 45,164 42,481
-------- --------
Net property and equipment................... 94,978 101,902
Other assets..................................... 22,019 20,752
-------- --------
Total assets.....................................$188,223 $194,916
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable............................... $4,184 $4,793
Accrued expenses............................... 27,243 25,898
Bank borrowings and current maturities of
long-term debt................................ 7,531 12,394
Current maturities of capital lease obligations. 21,120 15,825
Income tax payable............................. 51 ---
-------- --------
Total current liabilities.................... 60,129 58,910
Long-term debt, net of current maturities ....... 44,178 37,568
Capital lease obligations, net of current
maturities...................................... 24,193 39,458
Deferred income tax.............................. 5,782 6,892
Minority interest................................ 25 25
Stockholders' equity:
Common stock, $.033 par value, authorized
12,000,000 shares; issued 7,789,764........... 257 257
Additional paid-in capital..................... 60,044 59,923
Retained deficit............................... (4,349) (6,058)
Accumulated other comprehensive loss........... (1,581) (1,051)
Treasury stock, at cost, 112,156 and 250,122
shares at June 30, 2002 and 2001, respectively. (455) (1,008)
-------- --------
Total stockholders' equity..................... 53,916 52,063
-------- --------
Total liabilities and stockholders' equity.....$188,223 $194,916
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