Allied Holdings Reports Q2 Results
21 July 1998
Allied Holdings Reports Record Second Quarter Results
DECATUR, Ga., July 2l -- Allied Holdings, Inc.
today reported record earnings for the second quarter ended June 30, 1998.
Revenues for the second quarter of 1998 were $280.6 million, compared with
revenues of $112.6 million for the second quarter last year, an increase of
149 percent. Net income was $7.7 million during the second quarter of 1998,
versus $3.5 million during the second quarter of 1997, a 120 percent increase.
Basic earnings per share for the second quarter of 1998 were $0.99 and diluted
earnings per share were $0.98, versus basic and diluted earnings per share of
$0.45 in the second quarter of 1997. The Company's second quarter earnings
were the highest quarterly earnings in the Company's sixty-four year history.
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. In
addition, Allied's Automotive Group, combined with Ryder's Automotive Group,
had a 7 percent increase in the number of vehicles delivered during the second
quarter of 1998 versus the second quarter of 1997 due to increases in new
vehicle production and sales.
Commenting on the second quarter results, Robert J. Rutland, Allied's
chairman and chief executive officer, said, "Our second quarter of 1998, in
addition to being historic because of record earnings, was also the first
quarter that the Axis Group posted an operating profit since its inception two
years ago. The Axis Group recorded an operating profit of approximately
$700,000 led by strong port-processing and carrier management activities
during the quarter, together with contributions from Axis' recent venture in
Brazil."
Revenues for the six-month period ended June 30, 1998, were $534.0
million, versus revenues of $209.0 million reported for the same period last
year, a 156 percent increase. Net income was $8.4 million for the first six
months of 1998, compared with net income of $3.7 million for the comparable
six-month period a year ago, an increase of 127 percent. Basic earnings per
share for the first six months of 1998 were $1.08 and diluted earnings per
share were $1.07, versus basic and diluted earnings per share of $0.48 during
the first six months of 1997.
A. Mitchell Poole, Jr., Allied's president and chief operating officer,
said, "Our second quarter revenues and earnings more than doubled, even with
the General Motors work stoppages, due to increased vehicle deliveries from
the Ryder Automotive Carrier Group acquisition and increased new vehicle
production and sales." Mr. Poole added, "We estimate that the work stoppages
at most General Motors manufacturing plants reduced second quarter earnings by
approximately $0.10 per share. Additionally, until they are settled, these
work stoppages will have a continuing adverse effect on the Company. We
estimate the work stoppages have reduced third quarter revenues by
approximately $10 million to date, and will reduce revenues by approximately
$5 million per week until full production is resumed." "As a result of the
work stoppages, together with seasonal manufacturing plant downtime,
approximately 30 percent of the Company's workforce is on a temporary layoff,"
stated Mr. Poole.
Allied Holdings, Inc. is the parent company of several subsidiaries
engaged in the automotive distribution business. The Allied Automotive Group
(AAG), through its subsidiaries, is the largest motor carrier in North America
specializing in the delivery of automobiles and light trucks. AAG 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. Allied Holdings' Axis Group, through its
subsidiaries, 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 the most 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,
labor disputes involving the Company or its significant customers, risks
associated with conducting business in foreign countries 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 SECOND QUARTER EARNINGS RELEASE
(In Thousands, Except Per Share Data)
For the Three Months Ended
June 30
1998 1997
Revenues $280,641 $112,576
Net income $7,697 $3,513
Earnings per share:
Basic $0.99 $0.45
Diluted $0.98 $0.45
Weighted average common shares outstanding:
Basic 7,748 7,725
Diluted 7,861 7,725
For the Six Months Ended
June 30
1998 1997
Revenues $534,031 $208,969
Net income $8,387 $3,711
Earnings per share:
Basic $1.08 $0.48
Diluted $1.07 $0.48
Weighted average common shares outstanding:
Basic 7,747 7,725
Diluted 7,860 7,725