Arnold Industries, Inc. Announces Record Revenues for 1999
9 February 2000
Arnold Industries, Inc. Announces Record Revenues for 1999
LEBANON, Pa.--Feb. 9, 2000--E. H. Arnold, Board Chairman and President of Arnold Industries, Inc. (AIND-NASDAQ), Lebanon, Pennsylvania, today announced record operating revenues for the Fourth Quarter of 1999 and for the Year 1999.For the Fourth Quarter of 1999, Operating Revenues rose $9,729,581, or 9%. All three Arnold Industries business units contributed to an increase in Operating Income of $568,077, or 4% in the Fourth Quarter. Basic Earnings Per Share in the Fourth Quarter increased from $.38 in 1998 to $.40, a 5% increase.
Operating Revenues for the Year 1999 increased $24,510,639, or 6%. Operating Income for the Year 1999 decreased $352,323, or 1%. Basic Earnings Per Share nevertheless increased from $1.37 for the Year 1998 to $1.40 for the Year 1999, a 2% increase. The increase is due largely to a more favorable tax rate and the Company's repurchase of shares in the open market during the 1999 calendar year.
Set forth below are the Unaudited Consolidated Income Statements of Arnold Industries for the Fourth Quarter of 1999 as compared to the Fourth Quarter of 1998, and for the Year 1999 as compared to the Year 1998.
Fourth Quarter Ended Dec. 31,
1999 1998
Operating Revenues $112,956,375 $103,226,794
Operating Income 16,133,079 15,565,002
Income Before Taxes 15,593,512 15,447,999
Net Income 9,828,991 9,624,444
Share Earnings:
Net income per share-Basic .40 .38
Ave. shares outstanding-Basic 24,649,739 25,057,134
Net income per share-Diluted .40 .38
Ave. shares outstanding-Diluted 24,699,727 25,139,062
Year Ended Dec. 31,
1999 1998
Operating Revenues $428,231,234 $403,720,595
Operating Income 55,844,217 56,196,540
Income Before Taxes 54,843,868 55,841,376
Net Income 34,654,375 35,115,848
Share Earnings:
Net income per share-Basic 1.40 1.37
Ave. shares outstanding-Basic 24,801,592 25,668,457
Net income per share-Diluted 1.39 1.36
Ave. shares outstanding-Diluted 25,002,287 25,801,809
Set forth below is a schedule of the Unaudited Operating
Revenues, Expenses and Operating Income of the less-than-truckload
(LTL), truckload (TL) and warehousing/logistics companies:
(Dollars in Thousands)
Fourth Quarter Ended December 31,
1999 1998
---- ----
Amount % Amount %
------ --- ------ ---
LESS-THAN-TRUCKLOAD
Operating Revenues 56,904 100.0 50,515 100.0
Operating Expenses 44,422 78.1 38,668 76.5
------- ----- ------- -----
Operating Income 12,462 21.9 11,847 23.5
TRUCKLOAD
Operating Revenues 45,489 100.0 44,450 100.0
Operating Expenses 43,334 95.3 42,410 95.4
------- ----- ------- -----
Operating Income 2,155 4.7 2,040 4.6
WAREHOUSING/LOGISTICS
Operating Revenues 10,564 100.0 8,261 100.0
Operating Expenses 9,131 86.4 6,876 83.2
------- ----- ------- -----
Operating Income 1,433 13.6 1,385 16.8
Unallocated corporate
operating income (loss) 83 293
------- -------
Consolidated operating
income 16,133 15,565
======= =======
Year Ended Dec. 31,
1999 1998
Amount % Amount %
LESS-THAN-TRUCKLOAD
Operating Revenues 215,609 100.0 202,910 100.0
Operating Expenses 170,834 79.2 159,812 78.8
------- ----- ------- -----
Operating Income 44,775 20.8 43,098 21.2
TRUCKLOAD
Operating Revenues 175,599 100.0 171,366 100.0
Operating Expenses 169,748 96.7 164,253 95.8
------- ----- ------- -----
Operating Income 5,851 3.3 7,113 4.2
WAREHOUSING/LOGISTICS
Operating Revenues 37,023 100.0 29,445 100.0
Operating Expenses 31,563 85.3 23,913 81.2
------- ----- ------- -----
Operating Income 5,460 14.7 5,532 18.8
Unallocated corporate
operating income (loss) (242) 454
-------- -------
Consolidated operating
income 55,844 56,197
======= =======
Mr. Arnold expressed confidence that the audited figures in the Annual Report for 1999 would not differ materially from the unaudited figures set forth above.
In 1999, New Penn achieved record revenues of $215.6 million, an increase of 6%, and record Operating Income of $44.8 million, an increase of 4%. Operating Revenues grew stronger throughout the year, and New Penn finished the year with an excellent Fourth quarter when revenues increased 13% and Operating Income increased 5%. For the year 1999, it is anticipated that New Penn will once again lead the industry in operating profit margins based upon its operating ratio of 79.2. As reported by the company in its February 2, 2000, release, New Penn also achieved several new records for service quality in 1999 ensuring its reputation as a superior service carrier.
Arnold Transportation Services (ATS), the truckload subsidiary of Arnold Industries, also achieved record revenues of $175.6 million, a 2% increase from the previous year. As previously announced, changes in a key third-party brokerage relationship early in 1999 made revenue comparisons difficult throughout the year.
The continuing driver shortage also contributed to the low rate of growth in 1999. During 1999, ATS received several awards for service quality helping the company to develop key national account customer relationships and to secure new contracts for dedicated service.
Costs associated with changes in the business mix contributed to an 18% decline in 1999 Operating Income. However, Fourth Quarter Operating Income increased 6% despite an increase in the price of fuel. Higher diesel fuel prices are expected to have a negative impact on earnings in the First Quarter.
Arnold Logistics posted record revenues of $37.0 million in 1999, an increase of 26%. Operating Income declined by 1% reflecting significant start-up costs associated with new e-commerce and fulfillment services. Fourth Quarter Operating Income increased 3% compared to the prior year.
Unlike many other e-commerce companies, Arnold Logistics provided to its clients high levels of service throughout the peak-volume Fourth Quarter holiday shipping period as Arnold Logistics maintained its commitment to premium e-commerce fulfillment services. Such premium service is at the heart of the Arnold Logistics strategy to support dynamic e-commerce growth in the future.
Mr. Arnold also announced that the quarterly dividend of 11(cent) per share will be paid March 7, 2000, to stockholders of record on February 23, 2000.
This release contains forward-looking comments that are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed periodically in reports filed by the Company with the Securities and Exchange Commission, including 10-K's, 10-Q's and 8-K's.
Arnold Industries, Inc. is a holding company of transportation and logistics companies. For the year 1999, the Company reported consolidated revenues of $428 million. Business units include New Penn Motor Express, a Northeast regional next-day less-than-truckload carrier, Arnold Transportation Services, an irregular route and dedicated truckload carrier and Arnold Logistics, which provides integrated warehousing, distribution, order fulfillment and contract packaging services.
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