Simon Transportation Reports Profitable Second Quarter
12 April 2000
Simon Transportation Reports Profitable Second Quarter
SALT LAKE CITY, April 12 Simon Transportation Services,
Inc. announced today financial results for the fiscal second
quarter and the six months ended March 31, 2000.
Revenues for the second quarter increased 12% to $55.2 million, compared
to $49.3 million for the second quarter of fiscal year 1999. The Company
earned $78,000, or $.01 per diluted share, compared with a net loss of
$1.9 million, or ($0.32) per diluted share for the second quarter of fiscal
year 1999.
For the first six months of fiscal 2000, revenues increased 7% to
$109.0 million, compared with $102.3 million for the first six months of
fiscal 1999. Net loss was $63,000, or ($0.01) per diluted share compared with
a net loss of $1.9 million, or ($0.31) per diluted share for the corresponding
period of fiscal 1999.
Richard D. Simon, Chairman, President and Chief Executive Officer stated:
"Over the past few months, management has taken aggressive steps in an effort
to return the Company to profitability. We have been able to generate
significant results during what is traditionally the most difficult quarter in
the trucking industry. Our sales force has secured more than $9 million in
annualized new business in the first six months of fiscal 2000. In the month
of March, the Company generated record revenue of over $20.4 million."
OPERATING HIGHLIGHTS
-- The Company lowered its operating ratio by 6.5 points compared to the
same period a year ago.
-- The Company lowered its operating ratio for the fourth consecutive
quarter.
-- The Company achieved record average length of haul in March 2000, of
over 1100 miles per load, more than 10% above the averages for the last
quarter and last year.
-- The Company generated 10,533 miles per seated truck in the month of
March.
-- The Company had 135 more running trucks in March than it did at the
same time last year, and the fleet generated 254 more miles per truck
in the month of March than in the same period a year ago.
-- The average number of unseated trucks fell from a high of 154 in
November 1999, to 34 in March 2000, the lowest level in over a year.
-- Deadhead miles fell below 10% in March, the lowest level in the history
of the Company.
-- The Company improved on-time deliveries throughout the second quarter.
-- Fuel efficiency for the quarter improved by .2 miles per gallon from a
year ago, as the Company replaced tractors with newer, more fuel-
efficient models.
-- The Company has extended P/L P/D insurance (first million dollars) for
two years at the 1999 rate.
-- Pricing on new power equipment and trade residuals has been locked in
for the next three years.
-- Pricing on new trailers has been locked in through December 2001.
-- By August 2000, the Company will retire all debt on its last two
terminal facilities and will own all Company properties free of debt.
Simon continued: "We recently were successful in reducing our long
distance phone rates by over 40%, one part of an on-going campaign to cut
costs and overhead expenses. We have continued to emphasize driver retention,
and we are actively recruiting new drivers through our Company-sponsored Simon
Driving School and other schools. The Company anticipates that the high cost
of fuel will be partially offset by its fuel surcharge programs. This is
based on the substantial number of customers who have agreed to pay fuel
surcharges to offset the escalation in fuel prices. The Company is engaged in
the process of re-evaluating rates and adjusting traffic lanes and will be
requesting rate increases from customers. We hope to see future improvement
in many areas of our operations and will continue to monitor the Company's
progress."
Founded in 1955, Simon Transportation Services is an international
truckload carrier specializing in temperature-controlled delivery of food
products throughout the continental United States, Canada and Mexico.
Note: additional information about Simon Transportation Services, Inc.,
may be accessed at http://www.simn.com on the Internet.
This press release contains certain forward-looking statements, including
statements concerning anticipated partial offset of high fuel costs, requests
to customers to increase rates and the Company's hope of future improvement in
many areas of its operations. These forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those projected. Without limitation, these risks and
uncertainties include economic recessions or downturns in customers' business
cycles, excessive increases in capacity within the truckload markets,
decreased demand for transportation services offered by the Company,
availability and compensation of qualified drivers, the potential that
customers may not agree to rate increases, and the possibility that customers
may renege on current fuel surcharge agreements. Readers should review and
consider the various disclosures made by the Company in this press release and
in its reports to its stockholders and periodic reports on Forms 10-K and
10-Q.
SIMON TRANSPORTATION SERVICES INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Mar 31, 2000 Sep 30, 1999
(Unaudited)
ASSETS
Current Assets:
Cash $ 5,649,400 $ 8,658,268
Accounts receivable, net 25,580,027 22,862,685
Operating supplies 1,804,066 1,468,216
Prepaid expenses and other 4,983,431 5,367,117
Total current assets 38,016,924 38,356,286
Property & Equipment 80,109,357 80,851,116
Less Accumulated Depreciation (25,855,404) (23,203,536)
54,253,953 57,647,580
Other Assets 602,974 726,140
$ 92,873,851 $ 96,730,006
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current debt &
capitalized leases $ 7,489,787 $ 9,315,252
Accounts payable &
accrued expenses 11,771,087 11,498,082
Total current liabilities 19,260,874 20,813,334
Long-Term Debt & Capitalized
Leases 10,064,889 12,307,761
Deferred Income Taxes 7,665,063 7,665,063
Stockholders' Equity 55,883,025 55,943,848
$ 92,873,851 $ 96,730,006
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended For the Six Months Ended
Mar 31, 2000 Mar 31, 1999 Mar 31, 2000 Mar 31, 1999
(Unaudited) (Unaudited)
Operating Revenue $55,158,876 $49,271,237 $109,019,258 $102,263,636
Operating Expenses:
Salaries, wages,
and benefits 22,180,866 21,784,521 44,763,524 44,735,465
Fuel & fuel taxes 12,178,214 8,367,331 22,569,814 17,302,681
Operating
supplies and
expenses 6,471,819 7,409,815 13,244,924 14,187,729
Taxes and
licenses 1,771,979 1,901,218 3,390,211 3,915,962
Insurance and
claims 1,588,567 1,760,834 3,012,137 3,117,309
Communications
and utilities 846,681 1,106,483 1,808,018 2,150,189
Depreciation and
amortization 976,618 940,142 2,184,815 2,079,050
Rent 8,599,077 8,716,670 17,403,169 17,121,770
Total operating
expenses 54,613,821 51,987,014 108,376,612 104,610,155
Operating
earnings
(loss) 545,055 (2,715,777) 642,646 (2,346,519)
Net interest
expense (423,309) (381,347) (741,548) (678,034)
Earnings (loss)
before provision
for income taxes 121,746 (3,097,124) (98,902) (3,024,553)
(Provision) benefit
for income taxes (43,829) 1,170,713 35,605 1,143,281
Net earnings (loss) $77,917 $(1,926,411) $(63,297) $(1,881,272)
Basic net earnings
(loss) per common
share $0.01 $(0.32) $(0.01) $(0.31)
Diluted net earnings
(loss) per common
share $0.01 $(0.32) $(0.01) $(0.31)
Basic weighted
average common
shares outstanding 6,110,109 6,109,834 6,110,109 6,123,834
Diluted weighted
average common
shares outstanding 6,110,109 6,109,834 6,110,109 6,123,834