Aasche Transportation Services, Inc. Announces Q3 Revenues
10 November 1998
Aasche Transportation Services, Inc. Announces Third Quarter Revenues Increase Of 88% and Operating Income Increase of 252%
SHANNON, Ill., Nov. 9 -- Aasche Transportation Services, Inc.
announced today revenues, operating income and earnings for the
third quarter ended September 30, 1998. Revenues for the quarter were $29.5
million, an 88% increase as compared to $15.7 million for the same period in
1997. Operating income for the quarter was $1.9 million, a 252% increase as
compared to $O.5 million for the same period in 1997. Aasche realized net
income for the quarter of $8,000, or $0.00 per basic and diluted share
compared with net income of $3,000, or $O.00 per basic and diluted share for
the third quarter in 1997.
For the nine months ended September 30, 1998, Aasche's revenues increased
62% to $80.8 million, operating income increased 135% to $5.3 million with net
income of $242,000, or $0.05 per basic and diluted share compared to revenues
of $49.8 million, operating income of $2.3 million and net income of $200,000,
or $0.05 per basic and diluted share for the same nine month period in 1997.
The temperature-controlled business segment contributed revenues of $14.5
million, operating income of $1.1 million and net income of $503,000 for the
quarter. Specialty Transportation Services, Inc. ("STS") contributed revenues
of $15 million, operating income of $1.1 million with a net loss of $299,000
for the quarter. Parent company operating expenses were $303,000 with a net
loss for the quarter of $196,000.
STS incurred $1,241,000 ($884,000 after-tax) of acquisition costs during
the third quarter. Excluding acquisition costs, Aasche realized a net profit
of $892,000, or $0.19 and $0.17 per basic and diluted share, respectively, for
the third quarter in 1998. "The temperature-controlled business segment
remains strong and in light of STS' significant revenue growth, we're pleased
with our results," commented Larry L. Asche, Chairman and CEO.
"Since the acquisition, STS has experienced significant revenue growth
that we believe will continue during the remainder of 1998 and thereafter.
With the acquisition costs remaining fixed, we believe STS' significant
revenue growth will result in continually improving operating results for the
remainder of the year and thereafter," stated Leon M. Monachos, CFO.
"We are continuing to benefit from the outsourcing of waste hauling
services from the waste management companies and municipalities," stated Gary
I. Goldberg, President of STS. "We are adding to our established base of
business in the major metropolitan areas of the country we presently serve and
are looking at expanding to other population growth areas," added Mr.
Goldberg.
Aasche, through its operating subsidiaries, Asche Transfer, Inc. and AG
Carriers, Inc., is a leading provider of temperature-controlled,
time-sensitive transportation of frozen foods, juice concentrates, perishable
commodities, household and retail commodities, and tropical foliage. STS, as
an operating subsidiary of Aasche, is a leading provider of municipal solid
waste and bulk industrial transport services. Its shares trade on the Nasdaq
National Market under the symbol ASHE.
This release contains forward-looking statements relating to future
financial results or business expectations. Business plans may change as
circumstances warrant. Actual results may differ materially as a result of
factors over which the company has no control. Such factors include, but are
not limited to: general economic conditions, availability of drivers, labor
costs, interest rates, competition and governmental regulations. These risk
factors and additional information are included in the Company's reports on
file with the Securities and Exchange Commission.
AASCHE TRANSPORTATION SERVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share and share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
NET REVENUES $29,462 $15,658 $80,761 $49,769
OPERATING EXPENSES:
Salaries, wages
and benefits 11,453 5,775 30,359 17,643
Fuel 3,425 2,562 9,841 8,385
Purchased transportation 6,295 2,782 16,853 8,396
Supplies and maintenance 2,824 1,734 7,990 4,932
Depreciation and
amortization 1,643 1,207 5,152 3,848
Taxes and licenses 474 391 1,272 1,273
Insurance 886 513 2,261 1,506
Communications and utilities 365 198 987 622
Gain on disposition
of equipment (409) (519) (457) (583)
Other 604 474 1,183 1,486
Total operating expenses27,560 15,117 75,441 47,508
OPERATING INCOME 1,902 541 5,320 2,261
OTHER (EXPENSES) INCOME:
Interest expense (1,408) (558) (3,633) (1,731)
Warrant accretion expense (214) -- (572) --
Debt issuance cost (76) -- (203) --
Amortization of debt
discount (72) -- (192) --
Minority interest expense (17) -- (46) --
Other 112 25 296 41
INCOME BEFORE INCOME
TAX PROVISION 227 8 970 571
INCOME TAX PROVISION (219) (5) (728) (371)
NET INCOME $8 $3 $242 $200
NET INCOME PER COMMON SHARE:
BASIC $0.00 $0.00 $0.05 $0.05
DILUTED $0.00 $0.00 $0.05 $0.05
Weighted average
common shares
outstanding 4,626,130 4,535,328 4,580,014 4,184,237