Allied Holdings Files Quarterly Report on Form 10-Q For the Quarter Ended March 31, 2004
DECATUR, Ga., May 18, 2004 -- Allied Holdings, Inc. (AMEX:AHI) announced today that it has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q for the quarter ended March 31, 2004. The consolidated statements of cash flows included with the Form 10-Q differ from the consolidated statements of cash flows included with Allied's May 4, 2004 press release announcing its first quarter financial results as a result of Allied's reclassification of certain borrowings and repayments in connection with certain insurance financing arrangements. Such items, which were previously included in Allied's cash flows from operating activities, are now shown as cash flows from financing activities.
As a result of this reclassification, net cash provided by operating activities was changed from the previously reported $5.4 million to $15.5 million used in operating activities for the quarter ended March 31, 2004. In addition, net cash provided by financing activities was changed from the previously reported $12.0 million to $32.9 million for the quarter ended March 31, 2004. This reclassification also decreased cash from operating activities and increased cash from financing activities by $7.3 million, respectively, for the quarter ended March 31, 2003. The 2004 changes were more extensive because Allied's current insurer accelerated its funding requirements for premiums and estimated funding of self insured losses for 2004 by requiring all funding to be paid in the first quarter. In 2003, Allied's previous insurance arrangements permitted such amounts to be paid throughout the year.
There were no changes in Allied's consolidated balance sheets or statements of operations and there was no change in cash and cash equivalents as a result of this reclassification. The consolidated statements of cash flows is attached to this press release.
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 finished vehicle continuum, and include car-hauling, intramodal transport, inspection, accessorization and dealer prep. Allied, through its subsidiaries, is the leading company in North America specializing in the delivery of new and used 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, including statements regarding whether additional classifications are necessary and the effect of the reclassifications on certain line items of the Company's financial 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 of the Company to comply with the terms of its current debt agreements the ability of the Company to obtain financing in the future and the Company's highly leveraged financial position. 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: For additional information about Allied, please visit our website at www.alliedholdings.com.
ALLIED HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
For the Three Months Ended
March 31,
2004 2003
(Restated)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ($9,048) ($5,664)
Adjustments to reconcile net loss
to net cash provided by (used in)
operating activities:
Interest expense paid in kind -- 369
Amortization of deferred
financing costs 704 1,012
Depreciation and amortization 10,386 12,024
(Gain)/loss on disposal of
operating assets, net (1,137) 264
Foreign exchange loss (gain),
net 155 (1,018)
Deferred income taxes -- (4,401)
Compensation expense related
to stock options and grants 195 60
Amortization of Teamsters
Union contract costs -- 600
Change in operating assets and
liabilities:
Receivables, net of
allowance for doubtful
accounts (8,541) 2,810
Inventories (74) (226)
Prepayments and other
current assets (7,117) (2,039)
Accounts and Notes
Payable (8,680) (11,149)
Accrued liabilities 7,637 (2,146)
Net cash provided by
(used in) operating
activities (15,520) (9,504)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and
equipment (4,847) (5,878)
Increase in restricted cash and
cash equivalents (8,234) (2,686)
Increase in restricted investments -- (2,442)
Proceeds from sale of property and
equipment 1,826 11
Decrease in the cash surrender
value of life insurance -- 1
Net cash used in
investing activities (11,255) (10,994)
CASH FLOWS FROM FINANCING ACTIVITIES:
Additions to revolving credit
facilities, net 16,870 8,471
Repayment of long-term debt (5,167) (2,226)
Payment of deferred financing
costs -- (407)
Proceeds from insurance premium
financing 26,124 8,193
Repayments of insurance premium
financing (5,194) (854)
Proceeds from issuance of common
stock 303 57
Other, net -- (12)
Net cash provided by
financing activities 32,936 13,222
EFFECT OF EXCHANGE RATE CHANGES ON
CASH AND CASH EQUIVALENTS 132 85
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 6,293 (7,191)
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD 2,148 9,448
CASH AND CASH EQUIVALENTS AT END OF
PERIOD $8,441 $2,257