Allied Holdings Reports Fourth Quarter and Year-End Results and Announces Plans to List its Common Stock on The New York Stock Exchange
11 February 1998
Allied Holdings Reports Fourth Quarter and Year-End Results and Announces Plans to List its Common Stock on The New York Stock Exchange
DECATUR, Ga., Feb. 11 -- Allied Holdings, Inc.
today reported results for the fourth quarter and year ended December 31,
1997. Revenues for the fourth quarter of 1997 were $281.2 million, compared
with revenues of $104.4 million for the fourth quarter last year, an increase
of 169 percent. Net income was $4.4 million during the fourth quarter of
1997, versus $2.4 million during the fourth quarter of 1996, or $0.56 per
share in 1997, versus $0.31 per share in 1996, an increase of 81 percent. The
significant improvement in the Company's operating results were primarily due
to contributions from the recently completed acquisition of Ryder's Automotive
Carrier Group together with increases in new vehicle production and sales,
especially in Canada, which led to an increase of approximately 150 percent in
the number of vehicles delivered by the Company in the fourth quarter of 1997
versus 1996. On September 30, 1997, the Company completed the acquisition of
Ryder Automotive Carrier Services, Inc. and RC Management Corp. from Ryder
System, Inc. . The operating results of Ryder's Automotive Carrier
Group have been included with Allied's since the date of the acquisition.
Revenues for the year ended December 31, 1997, were $581.5 million, versus
revenues of $392.6 million reported for 1996, a 48 percent increase. Net
income in 1997 was $7.6 million, or $0.98 per share, compared with net income
of $4.9 million, or $0.64 per share in 1996, an increase of 53 percent
(excluding a one time charge related to the acquisition of Ryder's Automotive
Carrier Group recorded in 1997 and an extraordinary loss on the early
extinguishment of debt recorded during 1996).
Commenting on the results, A. Mitchell Poole, Jr., Allied's president and
chief operating officer, said, "We are very pleased with the Company's fourth
quarter results having benefitted from the inclusion of Ryder's Automotive
Carrier Group and improvements in our Canadian operations. We have completed
all duplicate terminal consolidations in Canada and are beginning to realize
the cost savings associated with making the Canadian operations more
efficient. We have started consolidating the duplicate terminals in the
United States and are pleased with the results to date." Mr. Poole added, "We
recently announced that our logistics subsidiary, Axis Group, has joined with
Coimex Trading Company of Vitoria, Brazil to become an equity partner in a
newly formed Brazilian firm, Axis Sinimbu Logistica Automotiva ("ASL"). ASL
will provide automotive supply chain logistics services to the growing
automotive industry in Mercosur."
Allied also announced that it has filed an application to list its common
stock on the New York Stock Exchange, and anticipates trading will begin
within the next few weeks. Commenting on the switch to the NYSE, Robert J.
Rutland, Allied's chairman and chief executive officer, said, "We believe that
Allied's stock will trade more efficiently on the New York Stock Exchange,
which should benefit our stockholders. The Nasdaq Stock Market has been very
supportive of Allied's stock since Allied's initial public offering; however,
we believe it is in the best interest of our stockholders to move to the
NYSE."
Allied Holdings, Inc. is the parent company of several subsidiaries
engaged in the automotive distribution business. The Allied Automotive Group
is the largest motor carrier in North America specializing in the delivery of
automobiles and light trucks. The Automotive Group transports for all major
domestic and foreign manufacturers primarily from manufacturing plants, rail
ramps, ports and auctions to automobile dealers throughout the United States
and Canada. The Axis Group identifies new and innovative methods of
distribution as well as better uses of traditional and emerging technologies
to help customers solve the most complex transportation, inventory management
and logistics problems. Axis is the global logistics services arm of the
Allied Holdings, Inc. family of companies which specialize in distribution and
logistics services for the automotive industry.
Statements in this press release that are not strictly historical are
"forward-looking" statements. 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 downturns in new vehicle production or sales
and the ability to integrate the acquisition of Ryder's Automotive Carrier
Group. 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.
ALLIED HOLDINGS, INC. AND SUBSIDIARIES
1997 FOURTH QUARTER EARNINGS RELEASE
(IN THOUSANDS, EXCEPT PER SHARE DATA)
For the Three Months Ended
December 31
1997 1996
Revenues $281,177 $104,373
Net income $ 4,365 $ 2,399
Net income per share $ 0.56 $ 0.31
Weighted average common
shares outstanding 7,736 7,725
For the Twelve Months Ended
December 31
1997 1996
Revenues $581,530 $392,547
Income before charge for acquisition
related realignment and
extraordinary item $ 7,575 $ 4,921
Net income $ 2,402 $ 3,986
Income per share before charge for
acquisition related realignment
and extraordinary item $ 0.98 $ 0.64
Net income per share $ 0.31 $ 0.52
Weighted average common shares
outstanding 7,728 7,725
SOURCE Allied Holdings, Inc.