Roadway Express' First Quarter EPS $.42 Vs. $.32 Year Ago
13 April 1999
Roadway Express' First Quarter EPS $.42 Vs. $.32 Year Ago
AKRON, Ohio--April 13, 1999--Roadway Express, Inc. today reported net income of $7,939,000, or $0.42 per share (diluted) for its first quarter, which ended March 27, 1999. This is an increase of 20% when compared to net income of $6,609,000, or $0.32 per share (diluted), in the first quarter of 1998. The motor carrier's revenue was $605,278,000 for the first quarter of 1999, down 2.6% compared to revenue of $621,663,000 for the first quarter of 1998.First quarter, total tonnage was down 4.2% when compared to the first quarter of 1998. During the quarter, less-than-truckload (LTL) tons were down 3.4% and truckload tonnage was down 7.6%. The decline in tonnage is partially attributable to the fact that the quarter contained one less business day. Operating expenses declined by 3.1% due primarily to reductions in nearly all cost areas, especially in operating supplies and expenses, and insurance and claims costs.
Commenting on the quarter, Michael W. Wickham, Chairman of the Board of Directors and CEO of Roadway Express, stated, "We are pleased to report our best first quarter earnings since 1992. Even though the quarter's revenue and tonnage were down, on a year-over-year basis our net income increased significantly demonstrating that the strategies we established in the fall of 1998 are having a positive impact on our business."
"Our basic strategies remain to control costs, improve yields and better manage our freight mix. Our employees did an excellent job managing our cost control efforts. We made significant progress on yield improvement and we see further opportunities to improve our freight mix. Our commitment to develop new services will continue to play a major role in our ability to improve our freight mix and yields," Wickham said.
Wickham continued, "Our recently announced position of Vice President New Venture Commerce re-enforces our strategy to leverage our network and its capabilities into new, higher-yield business opportunities. Recent examples include our new 2-Day Regional Metro Service in the western United States and the addition of an air option to our already successful Time-Critical Services."
"As the year continues, we are in an excellent position to leverage both our structural capabilities and our financial soundness for improved results," Wickham concluded.
Revenue and earnings (unaudited) for the twelve weeks constituting the Company's first quarter, with comparable figures for 1998, are as follows:
Twelve Weeks Ended
(First Quarter)
March 27, 1999 March 28, 1998
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(in thousands, except per share
data)
Revenue $ 605,278 $ 621,663
Operating Expense 591,806 610,839
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Operating Income 13,472 10,824
Other Income - Net 455 702
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Income Before Income Taxes 13,927 11,526
Provision For Income Taxes 5,988 4,917
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Net Income $ 7,939 $ 6,609
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Earnings per Share -- basic $ 0.42 $ 0.33
Average Shares Outstanding
-- basic 18,827 20,108
Earnings per Share -- diluted $ 0.42 $ 0.32
Average Shares Outstanding
-- diluted 19,012 20,337
Roadway Express operates with 12 weeks in each of the first three quarters and 16 weeks in the fourth quarter.
While most of the information provided herein is historical, some of the comments made are forward-looking statements. The Company's actual performance may differ from that forecast as a result of variable factors such as pricing trends, industry capacity, fuel costs, market demand and the general economy.
Roadway Express is a leading carrier of industrial goods delivering a variety of innovative services designed to meet customer needs. Providing seamless service throughout the entire North American trading market, Roadway offers shippers ocean access to 66 countries on six continents. The Company is dedicated to being the most reliable, responsive, efficient -- and safe -- motor carrier in the transportation industry. For additional information, please contact the Company at www.roadway.com.