Transportation Components, Inc. Reports Q3 and Nine Month Results
12 November 1998
Transportation Components, Inc. Reports Third Quarter and Nine Month Financial Results
- Completes Five Acquisitions With Approximately $57 Million
in Annualized Revenue -
HOUSTON, Nov. 12 -- Transportation Components, Inc.
(TransCom USA) today announced financial results for the third
quarter and nine months ended September 30, 1998.
Revenues for the third quarter were $58.4 million, an 11% increase from
$52.8 million in the comparable quarter in 1997. Net income was flat with
last year's third quarter results of $1.8 million, or $0.11 per diluted share.
Pro forma combined revenues for the nine months ended September 30, 1998
rose 15% to $176.8 million over $153.4 million in the same period last year.
Pro forma combined net income grew to $6.2 million, or $0.37 per diluted
share, compared to $5.4 million, or $0.32 per diluted share, in the same
period in 1997, a 16% increase in earnings per diluted share.
The Company also announced the completion of five acquisitions with
annualized revenues of approximately $57 million. These closings encompass
the remaining letters of intent previously announced by the Company. The
firms joining TransCom USA in these transactions include: Marc Industries in
West Palm Beach, Florida; Wes-T-Rans Limited. of Winnipeg, Manitoba; DSS/Pro
Diesel located in Nashville, Tennessee; Phelps Truck & Industrial Supply in
Portage, Indiana; and Hoosier Trailer & Equipment of Fort Wayne, Indiana.
With the completion of these acquisitions, TransCom USA's total annualized
revenue run rate is approximately $320 million.
T. Michael Young, Chairman and Chief Executive, commented, "We are pleased
to report an increase in sales, particularly considering the strong results
recorded in the same quarter last year. Gross margin also expanded as a
result of our product mix together with purchasing synergies that we have only
just begun to realize. In addition, in the past eight weeks, we completed
nine acquisitions with a combined annualized revenue run rate of approximately
$87 million. These are profitable, well-run companies that expand our
geographic scope and strengthen our position in existing markets."
Mr. Young added, "In the near-term, we are focusing our efforts on
aggressively integrating our eighteen companies and are continuing to build
our infrastructure which will increase operating efficiencies. We are
beginning to experience benefits from our purchasing synergies, that will
steadily expand the gross margin and improve profitability. There are many
opportunities for consolidation in the heavy duty truck parts distribution
industry and our acquisition pipeline remains strong, however, we expect to
follow a selective approach as we pursue those acquisition opportunities."
Pro forma combined results assume the Company's IPO and the acquisition of
the Founding Partner Companies occurred at the beginning of the periods
presented, rather than the June 24, 1998 IPO.
TransCom USA is a leading national distributor of replacement parts and
supplies for commercial trucks, trailers, and other heavy duty vehicles and
equipment. The Company also provides value-added services including
remanufacturing, vehicle repair, and machine shop services. With over ninety
locations in the U.S., Canada, and Mexico, TransCom USA's customer base
includes common carriers, private and rental fleets, independent repair shops,
specialty OEMs and other end users.
This press release contains certain forward-looking statements which
involve known and unknown risks, uncertainties or other factors not under the
Company's control which may cause actual results, performance or achievement
of the Company to be materially different from the results, performance or
other expectations implied by these forward-looking statements. These factors
include, but are not limited to, those disclosed in the Company's periodic
filings with the Securities and Exchange Commission.
TRANSPORTATION COMPONENTS, INC.
Pro Forma Combined Statements of Operations
(Dollars in thousands, except per share data)
(unaudited)
Three Months Ended, Nine Months Ended,
9/30/98 9/30/97 9/30/98 9/30/97
Revenues $ 58,423 $52,819 $176,851 $153,389
Cost of sales 41,189 37,631 124,873 108,531
Gross profit 17,234 15,188 51,978 44,858
Selling, general
& administrative 13,674 11,756 39,999 34,554
Operating income 3,560 3,432 11,979 10,304
Other income (expense)
Interest expense (651) (342) (1,287) (1,053)
Other income, net 297 146 112 320
Income before
income taxes 3,206 3,236 10,804 9,571
Provision for
income taxes 1,405 1,398 4,645 4,135
Net income $1,801 $1,838 $6,159 $5,436
Earnings per share
Basic $0.11 $0.11 $0.37 $0.33
Diluted $0.11 $0.11 $0.37 $0.32
Common shares outstanding
Basic 16,512,611 16,512,611 16,512,611 16,512,611
Diluted 16,928,099 16,723,150 16,799,874 16,723,150
TRANSPORTATION COMPONENTS, INC.
Consolidated Balance Sheets
(Dollars in thousands)
(unaudited)
September 30, 1998 June 30, 1998
ASSETS
Current Assets
Cash & cash equivalents $ 3,431 $ 5,567
Accounts receivables, net 29,747 27,927
Receivables from related parties 308 561
Inventories 60,104 56,823
Notes receivables, current 925 1,101
Deferred taxes, current 991 837
Prepaid expenses and other 1,580 1,750
Total current assets 97,086 94,566
Property & equipment 9,060 9,262
Notes receivables, net 2,206 2,292
Notes receivables from
related parties 1,021 1,019
Goodwill, net 54,374 48,283
Deferred taxes 306 508
Other assets, net 1,969 787
Total assets $166,022 $156,717
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and
accrued expenses $29,926 $34,143
Payables to related parties 144 528
Current portion of long term debt2,664 1,941
Deferred taxes, current 2,038 1,570
Other current liabilities 139 501
Total current liabilities 34,911 38,683
Long term debt, less
current portion 36,735 24,324
Deferred tax liability 1,738 2,290
Other liabilities 709 1,037
Total liabilities 74,093 66,334
Stockholders' equity
Common stock 165 165
Additional paid in capital 97,897 98,152
Retained earnings (deficit) (6,133) (7,934)
Total stockholders' equity 91,929 90,383
Total liabilities and
stockholders' equity $166,022 $156,717