Allied Holdings Reports First Quarter Results
21 April 1998
Allied Holdings Reports First Quarter Results
DECATUR, Ga., April 2l --Allied Holdings, Inc.
today reported results for the first quarter ended March 31, 1998. Revenues
for the first quarter of 1998 were $253.4 million, compared with revenues of
$96.4 million for the first quarter last year, an increase of 163 percent.
Net income was $690,000 during the first quarter of 1998, versus $198,000
during the first quarter of 1997, or $0.09 per diluted share in 1998, versus
$0.03 per diluted share in 1997, an increase of 200 percent. The significant
increase in the Company's revenues was primarily attributable to the
acquisition of Ryder's Automotive Carrier Group which was completed on
September 30, 1997. The operating results of Ryder's Automotive Carrier Group
have been included with Allied's since the date of the acquisition. The
combined companies had a 5 percent increase in the number of vehicles
delivered during the first quarter of 1998 versus 1997 which led to the
significant increase in net income.
Commenting on the results, A. Mitchell Poole, Jr., Allied's president and
chief operating officer, said: "Our earnings of $0.09 per share in the first
quarter of 1998 compare to a loss of $0.12 per share on a pro forma basis
reflecting the Ryder Automotive Carrier Group acquisition as if it occurred on
January 1, 1997, excluding any cost savings resulting from the acquisition.
While revenues during our first quarter are historically low due to
manufacturing plant downtime, the significant improvement in earnings
underscores the fact that the acquisition is very accretive and we are getting
the cost savings from the acquisition that we had anticipated. In addition,
the Allied Automotive Group's vehicle deliveries have increased due to rail-
car shortages, and it is anticipated that this will continue for the remainder
of 1998. Overall, we are very pleased with the way we have started 1998 and
with the progress we have made to date on the acquisition integration, and we
look forward to improved operating results for the balance of 1998." Mr.
Poole added, "During the first quarter, the Axis Group began processing
Volkswagen Beetles at Axis' port processing facility in Wilmington, Delaware.
Axis also invested in an automotive logistics venture in Brazil. We should
begin to see the benefit of these activities during the second quarter as well
as increased revenues from Kar-Tainer, Axis' containerized vehicle shipping
subsidiary. This should lead to improved operating results for the Axis
Group."
Allied Holdings, Inc. is the parent company of several subsidiaries
engaged in the automotive distribution and logistics business. The Allied
Automotive Group ("AAG") is the largest motor carrier in North America
specializing in the delivery of automobiles and light trucks. AAG transports
automobiles and light trucks 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
provides logistics solutions to the United States and international automotive
markets. Axis utilizes innovative methods of distribution, as well as
traditional and emerging technologies to help customers solve complex
transportation, inventory and logistics problems.
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
1998 FIRST QUARTER EARNINGS RELEASE
(In Thousands, Except Per Share Data)
(Unaudited)
For the Three Months Ended
March 31
1998 1997
Revenues $253,390 $ 96,393
Net income $ 690 $ 198
Net income per common share
- basic and diluted $ 0.09 $ 0.03
Weighted average common shares outstanding 7,746 7,725
SOURCE Allied Holdings, Inc.