Allied Holdings, Inc. Reports Improved First Quarter Results
25 April 2000
Allied Holdings, Inc. Reports Improved First Quarter Results
DECATUR, Ga., April 25 Allied Holdings, Inc. (NYSE: AHI)
today reported earnings for the first quarter ended March 31, 2000. Revenues
for the first quarter of 2000 were $282.9 million, compared with revenues of
$261.2 million for the first quarter last year, an increase of 8%. The
Company experienced a net loss of $1.0 million, or $0.13 per share during the
first quarter of 2000, an improvement of $3.0 million from the net loss of
$4.0 million, or $0.51 per share posted in the first quarter of 1999.
Revenues and operating results are seasonally lower in the first quarter due
to manufacturing plant downtime in December and early January.
The Company attributed the improved first quarter results to continued
cost control measures begun in the fourth quarter of 1999, a reduction in
cargo claims and on-the-job injuries. Also contributing were higher vehicle
delivery volumes due to higher new vehicle production in the first quarter of
2000, compared to 1999, as well as revenue enhancements. These items more
than offset the impact of higher fuel costs. While the Company has secured
fuel surcharges from its customers, they were in place for only a portion of
the first quarter. The Company estimates that higher fuel costs, net of the
surcharges, reduced earnings in the first quarter of 2000 by approximately
$1.6 million, or $0.20 per share.
The Company also reported that its long-term debt at the end of the first
quarter remained unchanged from year-end. Solid cash flow from operations,
together with reduced capital spending, provided funds sufficient to offset
borrowings for the recently completed CT Group acquisition.
Commenting on the improved results, A. Mitchell Poole, Jr., Allied's chief
executive officer, said: "We are very pleased that 2000 has started strong
with first quarter results that exceeded our expectations. We continue to
accelerate our efforts to reduce costs, maximize operating efficiencies and
increase equipment utilization throughout our network, and work closely with
our customers to enhance revenues. During the first quarter we made advances
in each of these areas, and we expect to continue to make progress in these
areas throughout the balance of the year."
Allied Holdings, Inc. is the parent company of several subsidiaries
engaged in providing logistics, distribution and transportation services to
the automotive industry. The services of Allied's subsidiaries span the
entire finished vehicle distribution continuum, and include logistics, car-
hauling, intramodal transport, inspection, accessorization, and dealer prep.
Allied, through its subsidiaries, is the largest company in North America
specializing in the delivery of new and used vehicles.
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, and changes in vehicle sizes and weights which
may impact vehicle deliveries per load. 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
2000 FIRST QUARTER EARNINGS RELEASE
(In Thousands, Except Per Share Data)
For the Three Months Ended
March 31
2000 1999
Revenues $282,884 $261,249
Net loss ($1,035) ($4,005)
Loss per share-Basic and diluted ($0.13) ($0.51)
Weighted average common shares outstanding 7,898 7,790
ALLIED HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands)
March 31 February 29
2000 2000
(Unaudited) (Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $4,335 $7,324
Short-term investments 53,592 48,738
Receivables, net of allowance
for doubtful accounts 128,986 137,426
Inventories 7,940 7,678
Deferred tax asset 14,605 16,118
Prepayments and other current assets 26,230 22,383
Total current assets 235,688 239,667
PROPERTY AND EQUIPMENT, NET 276,360 279,999
OTHER ASSETS:
Goodwill, net 98,867 92,451
Other 43,603 51,742
Total other assets 142,470 144,193
Total assets $654,518 $663,859
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of
long-term debt $149 $148
Trade accounts payable 42,704 36,722
Accrued liabilities 96,863 89,860
Total current liabilities 139,716 126,730
LONG-TERM DEBT, less current maturities 330,058 353,952
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS 11,949 12,051
DEFERRED INCOME TAXES 35,151 37,142
OTHER LONG-TERM LIABILITIES 72,078 72,847
STOCKHOLDERS' EQUITY:
Common stock, no par value; 20,000 shares
authorized,8,001 shares outstanding
at March 31, 2000 0 0
Additional paid-in capital 44,892 44,813
Retained earnings 25,868 21,364
Cumulative other comprehensive
income, net of tax (4,726) (4,652)
Less treasury stock at cost, 62 shares
at March 31, 2000 (468) (387)
Total stockholders' equity
65,566 61,138
Total liabilities and
stockholders' equity $654,518 $663,859
ALLIED HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
(Unaudited)
For the Three Months Ended
March 31
2000 1999
REVENUES $282,884 $261,249
OPERATING EXPENSES:
Salaries, wages and fringe benefits 154,838 144,645
Operating supplies and expenses 51,582 44,781
Purchased transportation 27,153 25,282
Insurance and claims 12,056 13,617
Operating taxes and licenses
10,859 10,716
Depreciation and amortization 15,242 14,015
Rents 2,326 2,622
Communications and utilities
2,209 2,230
Other operating expenses 2,658 2,156
Total operating expenses 278,923 260,064
Operating income 3,961 1,185
OTHER INCOME (EXPENSE):
Equity in earnings (loss) of joint
ventures, net of tax 901 (774)
Interest expense (8,401) (7,409)
Interest income 1,320 291
(6,180) (7,892)
LOSS BEFORE INCOME TAXES (2,219) (6,707)
INCOME TAX BENEFIT 1,184 2,702
NET LOSS ($1,035) ($4,005)
PER COMMON SHARE - BASIC AND DILUTED ($0.13) ($0.51)
COMMON SHARES OUTSTANDING - BASIC AND DILUTED 7,898 7,790
ALLIED HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
For the Three Months Ended
March 31
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ($1,035) ($4,005)
Adjustments to reconcile net loss to net
cash provided by (used in)
operating activities:
Depreciation and amortization 15,242 14,015
Loss (gain) on sale of
property and equipment 103 (51)
Deferred income taxes (374) (2,424)
Compensation expense related to
stock options and grants 237 146
Equity in (earnings) loss of joint ventures (901) 774
Amortization of Teamsters Union signing bonus 606 0
Change in operating assets and liabilities:
Receivables, net of allowance
for doubtful accounts (8,007) (15,885)
Inventories 5 (1,076)
Prepayments and other current assets (4,059) (4,123)
Trade accounts payable (215) (7,799)
Accrued liabilities 8,553 2,724
Total adjustments 11,190 (13,699)
Net cash provided by (used in)
operating activities 10,155 (17,704)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (3,241) (11,531)
Proceeds from sale of property and equipment 44 146
Purchase of business, net of cash acquired (8,185) 0
Increase in short-term investments (9,267) (2,034)
(Increase) decrease in the cash
surrender value of life insurance (120) 193
Net cash used in
investing activities (20,769) (13,226)
CASH FLOWS FROM FINANCING ACTIVITIES:
(Repayments) proceeds from
issuance of long-term debt, net (79) 29,990
Proceeds from issuance of common stock 218 0
Repurchase of common stock (282) 0
Proceeds from exercise of stock options 0 27
Other, net 1,653 (370)
Net cash provided by financing activities 1,510 29,647
EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS (545) 26
NET DECREASE IN CASH AND CASH EQUIVALENTS (9,649) (1,257)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 13,984 21,977
CASH AND CASH EQUIVALENTS AT END OF PERIOD $4,335 $20,720
ALLIED HOLDINGS, INC. AND SUBSIDIARIES
2000 FIRST QUARTER EARNINGS RELEASE
OPERATING DATA
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31
2000 1999
ALLIED HOLDINGS, EXCLUDING AAG - CANADA:
REVENUES $234,938,000 $217,914,000
OPERATING INCOME(LOSS) $1,080,000 ($781,000)
OPERATING RATIO 99.54% 100.36%
VEHICLES DELIVERED 2,512,650 2,455,940
LOADS DELIVERED 311,812 304,081
VEHICLES PER LOAD 8.06 8.08
REVENUE PER VEHICLE $93.50 $88.73
PERCENT DAMAGE FREE DELIVERY 99.6% 99.5%
NUMBER OF
AVERAGE ACTIVE RIGS 4,253 4,334
AVERAGE EMPLOYEES
DRIVERS 5,242 4,985
OTHERS 2,483 2,225
ALLIED AUTOMOTIVE GROUP - CANADA
REVENUES $47,946,000 $43,335,000
OPERATING INCOME $2,881,000 $1,966,000
OPERATING RATIO 93.99% 95.46%
VEHICLES DELIVERED 688,100 629,436
LOADS DELIVERED 87,322 79,675
VEHICLES PER LOAD 7.88 7.90
REVENUE PER VEHICLE $69.68 $68.85
PERCENT DAMAGE FREE DELIVERY 99.7% 99.7%
NUMBER OF
AVERAGE ACTIVE RIGS 832 878
AVERAGE EMPLOYEES
DRIVERS 1,267 1,115
OTHERS 573 577