Allied Holdings Reports Third Quarter Results
22 October 1998
Allied Holdings Reports Third Quarter Results
DECATUR, Ga., Oct. 22 -- Allied Holdings, Inc.
today reported results for the third quarter ended September 30, 1998.
Revenues for the third quarter of 1998 were $217.5 million, compared with
revenues of $91.4 million for the third quarter last year, an increase of
138 percent. The Company experienced a net loss of $5.0 million during the
third quarter of 1998, versus a loss of $5.7 million during the third quarter
of 1997. The basic and diluted loss per share for the third quarter of 1998
were $0.64, versus a basic and diluted loss per share of $0.73 in the third
quarter of 1997.
The Company acquired Ryder's Automotive Carrier Group on
September 30, 1997 and its results have been included with Allied's since the
date of the acquisition which has increased revenues in 1998. However,
revenues during the third quarter of 1998 were impacted by work stoppages at
most General Motors manufacturing plants. The Company estimates that the work
stoppages reduced third quarter revenues by approximately $30 million and net
earnings by approximately $5.1 million, or $0.65 per share. The 1997 third
quarter results also include a charge of $5.2 million, or $0.67 per share,
which the Company recorded to write down rigs and terminal facilities idled or
closed as a result of the Ryder acquisition. Excluding the effect of the
General Motors work stoppages in 1998 and the acquisition related charge in
1997, the Company's third quarter earnings would have been $0.02 per share in
1998 versus a loss of $0.06 per share in 1997.
Revenues for the nine-month period ended September 30, 1998, were
$751.5 million versus revenues of $300.4 million reported for the same period
last year, a 150 percent increase. Net income was $3.4 million for the first
nine months of 1998, compared with a net loss of $2.0 million for the
comparable nine month period a year ago. Basic and diluted earnings per share
for the first nine months of 1998 were $0.44, versus a basic and diluted loss
per share of $0.25 during the first nine months of 1997.
A. Mitchell Poole, Jr., Allied's president and chief operating officer,
said, "The third quarter is historically our slowest due to seasonal closings
of automotive manufacturing plants for vacations and model change-overs.
However, in the third quarter of 1998 we were significantly impacted by an
eight-week work stoppage at most General Motors manufacturing plants. General
Motors has resumed production and the Allied Automotive Group's delivery
volumes are returning to their pre-strike levels, and at many locations they
exceed the pre-strike levels." Mr. Poole added, "The Axis Group was also
impacted by the strike as it operates processing facilities that prepare
General Motors vehicles for delivery to dealers or for export. Overall we are
pleased with the year-over-year improvement in our operating results excluding
the strike impact, and we continue to be excited about the strategic growth
prospects for the Axis Group."
Robert J. Rutland, Allied's chairman and chief executive officer, said,
"New vehicle sales in the United States and Canada are advancing at a healthy
rate, up approximately 7 percent in September, and new vehicle production is
forecasted to grow in the fourth quarter of 1998 and into 1999 as General
Motors increases production to offset the strike impact. We are therefore
optimistic that Allied will continue to post increases in earnings for the
fourth quarter of 1998 and calendar 1999 as the new vehicle market remains
stable and we continue to realize the synergies and efficiencies from the
Ryder Automotive Carrier Group acquisition."
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 Third Quarter Earnings Release
(In Thousands, Except Per Share Data)
For the Three Months Ended
September 30,
1998 1997
Revenues $217,468 $91,384
Net Loss ($4,960) ($5,674)
Loss Per Share --
Basic and Diluted ($0.64) ($0.73)
Weighted average
common shares
outstanding:
Basic and Diluted 7,748 7,725
For the Nine Months Ended
September 30,
1998 1997
Revenues $751,499 $300,353
Net income (loss) $3,427 ($1,963)
Net income (loss)
Per Share --
Basic and Diluted $0.44 ($0.25)
Weighted average
common shares
outstanding:
Basic 7,747 7,725
Diluted 7,858 7,725