Roadway Reports Record Revenues
25 January 2000
Roadway Reports Record Revenues; 1999 Earnings Up 76% to $2.39 Per Share
AKRON, Ohio--Jan. 25, 2000--Roadway Express, Inc. today reported record revenues of $2.81 billion for the year ended December 31, 1999, up 6.0%, when compared to revenues of $2.65 billion in 1998. Net income for the year increased 76% to $45,773,000, or $2.39 per share (diluted), when compared to net income of $26,034,000, or $1.31 per share, for 1998. In 1999, business levels as indicated by total tonnage were 3.0% above 1998 levels, with less-than-truckload tons increasing 3.2% and truckload tons increasing 2.0%. 1999 revenue per ton increased 2.9% versus last year.For the 16 weeks constituting the Company's fourth quarter, revenues were up 16% to a record $934.6 million, when compared with revenues of $805.9 million for the fourth quarter of 1998. Net income for the quarter rose 110% to $20,565,000, or $1.07 per share (diluted), when compared to net income of $9,790,000, or $0.50 per share, during the same period in 1998. Fourth quarter tonnage was up 10.3% compared to fourth quarter 1998. For the quarter, LTL tons increased 9.7% and truckload tonnage was up 12.6%. Revenue per ton was up 5.2% versus the same period last year.
Michael W. Wickham, Chairman of the Board of Directors and CEO of Roadway Express, stated, "Across the board, our employees did an excellent job during the busiest quarter in our history and for the year overall. The best news is that throughout the year our business levels, on a seasonally adjusted basis, showed increasing momentum. In fact, our second half growth rates were more than double those of the first half and our fourth quarter growth was almost triple that of the first half of the year. While increasing tonnage, we grew our higher-yielding regional and specialized services and tightly managed the costs of handling greatly increased volumes."
"During the year, our average length of haul decreased and our average shipment size increased, reflecting the success of our strategy to grow our regional service offerings and shift the quality of our freight mix. For the year, our regional LTL revenue increased 10.6%, and our specialized market offerings grew 15%, principally due to a 31% increase in revenue from specialized domestic products," Wickham continued.
"Our plan to control costs also proved successful, as our annual operating expenses per ton increased by only 1.8%. At the same time our annual revenue per ton was 2.9% higher on a year-over-year basis. That improved our operating ratio from 98.3 last year to 97.3 this year," Wickham added.
"We feel our strategies are moving us in the right direction while serving our customers and shareholders well. We see opportunities to improve and intend to continue our efforts to enrich our freight mix, grow our higher-yielding regional and specialized services and control costs in 2000," Wickham concluded.
Revenue and earnings for Roadway Express' fourth quarter and for the year ended December 31, 1999, with comparable figures for both in 1998, are as follows:
Sixteen Weeks Ended
(Fourth Quarter)
December 31, 1999 December 31, 1998
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(in thousands, except per share data)
Revenue $ 934,596 $ 805,944
Operating Expense 899,852 790,101
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Operating Income 34,744 15,843
Other Income - Net 1,084 932
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Income Before Income Taxes 35,828 16,775
Provision For Income Taxes 15,263 6,985
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Net Income $ 20,565 $ 9,790
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Earnings per Share -- basic $ 1.09 $ 0.51
Earnings per Share -- diluted $ 1.07 $ 0.50
Average Shares Outstanding -- basic 18,823 19,120
Average Shares Outstanding -- diluted 19,142 19,297
Year Ended
December 31, 1999 December 31, 1998
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(in thousands, except per share data)
Revenue $ 2,813,214 $ 2,654,094
Operating Expense 2,735,998 2,610,034
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Operating Income 77,216 44,060
Other Income - Net 2,529 1,353
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Income Before Income Taxes 79,745 45,413
Provision For Income Taxes 33,972 19,379
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Net Income $ 45,773 $ 26,034
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Earnings per Share -- basic $ 2.43 $ 1.33
Earnings per Share -- diluted $ 2.39 $ 1.31
Average Shares Outstanding -- basic 18,811 19,617
Average Shares Outstanding -- diluted 19,119 19,815
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 the state of the national economy, fuel costs, capacity and rate levels in the motor-freight industry and the success of the Company's operating plans.
Included in the Dow Jones Transportation Average, Roadway Express, Inc. is a leading carrier of industrial goods with a variety of innovative services designed to meet customer needs. Roadway provides seamless service between all 50 states, Canada, Mexico and Puerto Rico including export services to 66 countries. The Company is dedicated to being the most reliable, responsive, efficient -- and safe -- motor carrier in the industry. For additional information, contact the Company at www.roadway.com.