Coach USA, Inc. Announces Record Third Quarter Results
4 November 1998
Coach USA, Inc. Announces Record Third Quarter Results; Diluted EPS of $0.81 on a 48% Revenue Increase
HOUSTON--Nov. 3, 1998--Coach USA, Inc., , the largest motorcoach company in the United States, today announced record results for the quarter ended September 30, 1998.Revenues increased 48% to $232.9 million for the quarter ended September 30, 1998 from $157.1 million for 1997. Third quarter 1998 net income, before extraordinary items, increased 66% to $21.8 million compared to $13.1 million for the similar period in 1997. Diluted earnings per share, before extraordinary items, rose to $0.81 for the period ended September 30, 1998 compared to $0.60 for the corresponding 1997 period.
For the nine months ended September 30, 1998, the company reported revenues of $579.6 million compared with $392.4 million for the first nine months of 1997. Net income, before extraordinary items, for the first nine months of 1998 was $39.7 million, or $1.58 per diluted share, compared with $25.1 million, or $1.18 per diluted share, in the first nine months of 1997.
Increased revenues for the quarter resulted from both acquisitions and continued strong internal growth. Profitability increased as a result of implementation of the Company s operational and financial synergies.
Richard Kristinik, Chairman and CEO, stated, "We are very pleased with our strong results this quarter. The third quarter is traditionally our strongest seasonal quarter due to our tour and charter business. Same store revenue growth remains strong with continuing expansion opportunities throughout the company. We are proceeding with our initiatives to consolidate several facilities and we expect to see increased operating efficiencies in 1999."
Commenting on the acquisition program, Mr. Kristinik stated, "Our acquisition program remains very active. We are continuing our focus on strategic acquisitions and tuck-in opportunities and have a significant unused credit facility enabling us to continue these efforts at a strong pace."
Since its IPO in May 1996, Coach USA has completed over 70 acquisitions. Coach USA s current annualized revenue run rate is over $870.
Coach USA is the largest provider of motorcoach services in the United States.
Note: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current plans and expectations of Coach USA, Inc. and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward- looking statements.
Important factors that could cause actual results to differ include, among others, risks associated with acquisitions, fluctuations in operating results because of acquisitions and variations in stock prices, changes in government regulations, competition, risks of operations, and growth of the newly acquired businesses.
COACH USA, INC.
Statements of Income
For the three and nine months ended September 30, 1998 & 1997
(Unaudited - In thousands except for EPS)
Three Months Ended Nine Months Ended
9/30/98 9/30/97(1) 9/30/98 9/30/97(1)
Revenue $ 232,916 $ 157,109 $ 579,552 $ 392,353
Operating Expenses 161,777 111,547 419,388 288,565
Gross Profit 71,139 45,562 160,164 103,788
S, G & A Expenses 22,929 15,859 63,426 43,007
Amortization 2,513 1,037 5,586 2,380
Merger costs -
poolings (2) 0 524 0 918
Operating Income 45,697 28,142 91,152 57,483
Interest and Other
Expenses 9,979 6,861 26,149 15,544
Income Before
Income Taxes 35,718 21,281 65,003 41,939
Provision for
Income Taxes 13,930 8,203 25,352 16,839
Income before
extraordinary items 21,788 13,078 39,651 25,100
Extraordinary items
(net of income taxes) (111) (203) (537) (602)
Net Income $ 21,677 $ 12,875 $ 39,114 $ 24,498
Weighted Avg. Shares
-Basic 25,288 21,555 23,684 21,312
Weighted Avg. Shares
-Diluted 27,434 23,187 25,868 22,773
EPS - Basic (3):
EPS $ 0.86 $ 0.60 $ 1.65 $ 1.15
EPS (before
extraordinary items)$ 0.86 $ 0.61 $ 1.67 $ 1.18
EPS(2) $ 0.86 $ 0.63 $ 1.67 $ 1.22
EPS - Diluted (3):
EPS $ 0.81 $ 0.57 $ 1.56 $ 1.11
EPS (before extraordinary
items) (2) $ 0.81 $ 0.58 $ 1.58 $ 1.14
EPS (2) $ 0.81 $ 0.60 $ 1.58 $ 1.18
Depreciation 12,720 8,490 33,440 22,419
Amortization 2,513 1,037 5,586 2,380
EBITDA 60,930 38,193 130,178 83,200
Note 1: Prior to the acquisitions, the pooled companies were managedas independent private companies. In conjunction with the
acquisitions, certain stockholders of the pooled companies have
agreed to reductions in salaries and benefits and have entered
into employment agreements. Accordingly, the pro forma data for
the three and nine months ended September 30, 1997, includes an
adjustment to present compensation at the level the stockholders
agreed to receive subsequent to the acquisitions. In addition,
the pro forma data presents the incremental provision for income
taxes as if all entities had been subject to federal and state
income taxes throughout the periods.
Note 2: The above pro forma net income for the three and nine months
ended September 30, 1997 includes non-recurring acquisition costs
associated with certain poolings-of-interest transactions of $524
and $918, respectively. Excluding these costs, pro forma net
income before extraordinary items would have been $13,602 and
$26,018 for the three and nine months ended September 30, 1997,
respectively.
Note 3: All earnings per share data presented above have been
calculated in accordance with the new Statement of Financial
Accounting Standards No. 128. The diluted earnings per share data
presented above reflects the dilutive effect, if any, of stock
options, warrants and convertible subordinated notes which were
outstanding during the periods presented.
