Transportation Components, Inc. Reports Financial Results for Q2
13 August 1999
Transportation Components, Inc. Reports Financial Results for Second Quarter and Six Months Ended June 30, 1999
HOUSTON, Aug. 12 -- Transportation Components, Inc.
(TransCom USA) today announced financial results for the second
quarter and six months ended June 30, 1999.
For the quarter ended June 30, 1999, the Company reported net income of
$1.6 million, or $.09 per diluted share, on revenues of $81.1 million,
compared with net income of $24,000, or $.01 per diluted share, on revenues of
$3.8 million for the second quarter of 1998. Founded in October 1997,
TransCom had no operations until its initial public offering on June 24, 1998,
when it acquired its nine founding companies.
For the six months ended June 30, 1999, the Company earned $3.6 million,
or $.20 per diluted share, on revenues of $159.4 million, compared with a net
loss of $4.8 million, or $1.34 per diluted share, on revenues of $3.8 million,
for the six months ended June 30, 1998. The results for the six months ended
June 30, 1998 included a nonrecurring, noncash compensation charge of
$4.9 million related to common stock issued to TransCom's management and
consultants in the first quarter of 1998.
"We are pleased with the quick pace of our integration efforts," commented
T. Michael Young, Chairman and Chief Executive Officer. "Because of the
critical importance of installing common operating and financial systems
throughout the TransCom family of companies, we have accelerated our
implementation schedule. These systems should be substantially installed by
the end of 1999."
Young continued, "We have also made substantial progress in implementing
product line commonality, which is important to maximizing our purchasing
discounts and in marketing to and servicing national and regional customers.
Administrative expenses, however, will remain higher than we would like until
our systems have been fully implemented and our integration efforts are
further along."
Reporting on significant events, Young said, "TransCom has just been named
the preferred provider for a national fleet company. In addition, a TransCom
company was recently selected to be the exclusive crane supplier for
Halliburton Energy Services, a major oilfield service company, as a result of
Halliburton's standardization efforts. While we can't estimate the amount of
business these selections may represent, we believe they present significant
future business opportunities for our company."
TransCom USA (http://www.transcomusa.net) 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 97 locations in the United States, Canada and Mexico, TransCom USA has a
customer base that includes common carriers, private and rental fleets,
independent repair shops, specialty OEMs and other end users.
Some statements in this news release, especially regarding potential
revenues, are forward-looking and involve both known and unknown risks and
uncertainties that may cause actual results to differ from the results or
other expectations implied by those forward-looking statements. These risks
and uncertainties include, but are not limited to, those Risk Factors set
forth in the Company's latest Form 10-K and subsequent periodical filings with
the Securities and Exchange Commission. These filings are available at the
Securities and Exchange Commission's web site at http://www.sec.gov.
Transportation Components, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
1999 1998 1999 1998
(In thousands, except per share information)
Revenues $81,108 $3,786 $159,350 $3,786
Cost of sales 56,481 2,664 110,244 2,664
Gross profit 24,627 1,122 49,106 1,122
Selling, general
& administrative
expenses 20,509 1,027 40,340 5,877
Income (loss) from
operations 4,118 95 8,766 (4,755)
Other income (expense):
Interest expense (1,366) (29) (2,614) (29)
Other income, net 294 (12) 522 (12)
Income (loss) before
income taxes 3,046 54 6,674 (4,796)
Provision for
income taxes 1,424 30 3,092 30
Net income (loss) $1,622 $24 $3,582 $(4,826)
Income (loss) per share
Basic $.09 $.01 $.20 $(1.34)
Diluted $.09 $.01 $.20 $(1.34)
Average number of common and potential
common shares used in per share calculations:
Basic 17,727,815 4,238,489 17,727,815 3,589,334
Diluted 19,339,510 4,268,999 19,334,080 3,594,269
TRANSPORTATION COMPONENTS, INC.
CONSOLIDATED BALANCE SHEETS
June 30 December 31
1999 1998
(Unaudited)
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents $3,994 $4,090
Accounts receivable, net of allowance for
bad debts of $2,050 and $1,978 41,084 38,474
Receivables from related parties 100 92
Notes receivable, current 967 962
Inventories 67,577 71,354
Prepaid expenses and other 1,733 2,027
Deferred tax asset 5,770 3,439
Total current assets 121,225 120,438
Property and equipment, net 12,643 12,604
Notes receivable, net 1,538 1,854
Notes receivable from related parties 840 822
Goodwill, net 87,212 81,832
Other assets 1,162 1,355
Total assets $224,620 $218,905
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $40,341 $41,342
Payables to related parties 1,861 1,764
Current portion of long-term debt 903 1,651
Other current liabilities 332 237
Total current liabilities 43,437 44,994
Long-term debt, less current portion 62,510 59,091
Deferred tax liability 2,917 2,875
Payables to related parties 14,242 14,068
Total liabilities 123,106 121,028
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par,
5,000,000 shares authorized, none issued --- ---
Common stock, $0.01 par, 102,000,000 shares
authorized, 17,727,815 shares outstanding 177 177
Additional paid-in capital 102,393 102,414
Retained (deficit) (1,056) (4,714)
Total stockholders' equity 101,514 97,877
Total liabilities and
stockholders' equity $224,620 $218,905