Allied Holdings Reports Second Quarter Results
22 July 1999
Allied Holdings Reports Second Quarter Results
DECATUR, Ga., July 22 -- Allied Holdings, Inc.
today reported results for the second quarter ended June 30, 1999. Revenues
for the second quarter of 1999 were $287.0 million, compared with revenues of
$280.6 million for the second quarter last year. Net income was $4.1 million
during the second quarter of 1999, versus net income of $7.7 million during
the second quarter of 1998. Basic and diluted earnings per share were
$0.53 in the second quarter of 1999, versus basic earnings per share of
$0.99 and diluted earnings per share of $0.98 in the second quarter of 1998.
Revenues for the six-month period ended June 30, 1999, were $548.2 million,
versus revenues of $534.0 million reported for the same period last year. Net
income was $0.1 million for the first six months of 1999, compared with net
income of $8.4 million for the comparable six-month period a year ago.
Commenting on the results, A. Mitchell Poole, Jr., Allied's president and
chief operating officer, said: "During the second quarter, the number of
vehicles we delivered per load continued to be impacted by the increasing size
and weight of vehicles manufactured. New vehicle production and sales are on
a record pace led by increasing demand for light trucks. Throughout the
second quarter we have been discussing the load average decline with the
manufacturers. We have been successful at resolving the issue with certain
customers and we are continuing the discussions with the others. The result
will be an increase in the revenue generated per vehicle delivered."
Mr. Poole added: "The Axis Group had a very active second quarter. Axis
began operations in the United Kingdom and Canada and started work on a number
of new Kar-Tainer contracts. In addition, the automotive market in Brazil
increased from the lows experienced in the first quarter. As a result, Axis
was profitable in the second quarter and we expect Axis to remain profitable
in the future."
Referring to the new contract with the International Brotherhood of
Teamsters in the United States, Robert J. Rutland, Allied's chairman and chief
executive officer, said: "We were very pleased to have negotiated a new
contract without having a work stoppage that would have been disruptive and
costly to the industry and our customers. During the second quarter, much
attention was focused on the contract negotiations and the related contingency
planning, which caused inefficiencies and diverted attention from operations.
Now that the contract has been ratified, we intend to refocus ourselves on
improving our operational efficiency and look forward to operating under the
new contract for the next four years."
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,
the highly competitive nature of the automotive distribution industry,
dependence on the automotive industry, labor disputes involving the Company or
its significant customers, the dependence on key personnel who have been hired
or retained by the Company, the availability of strategic acquisitions or
joint venture partners, changes in regulatory requirements which are
applicable to the Company's business, risks associated with conducting
business in foreign countries, changes in vehicle sizes and weights which may
impact vehicle deliveries per load, the ability to increase the rates charged
to customers, and problems related to information technology systems and
computations that must be made by the Company or its customers and vendors in
1999, 2000 or beyond. 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
1999 Second Quarter Earnings Release
(In Thousands, Except Per Share Data)
For the Three Months Ended
June 30
1999 1998
Revenues $ 286,984 $ 280,641
Net income $ 4,132 $ 7,697
Earnings per share
Basic $ 0.53 $ 0.99
Diluted $ 0.53 $ 0.98
Weighted average common shares
outstanding
Basic 7,792 7,748
Diluted 7,800 7,861
For the Six Months Ended
June 30
1999 1998
Revenues $ 548,233 $ 534,031
Net income $ 127 $ 8,387
Earnings per share
Basic $ 0.02 $ 1.08
Diluted $ 0.02 $ 1.07
Weighted average common shares
outstanding
Basic 7,791 7,747
Diluted 7,807 7,860