Motor Cargo Industries Reports Third Quarter EPS
24 October 2000
Motor Cargo Industries, Inc. Reports 62% Increase in Third Quarter EPS
SALT LAKE CITY, Oct. 23 /PRNewswire/ - Motor Cargo Industries, Inc.
announced today results of operations for the third quarter
ended September 30, 2000. Operating revenues for the three months ended
September 30, 2000, increased 4.5% to $34.1 million, compared to $32.6 million
for the corresponding quarter of 1999. Net earnings increased 53.1% to
$1.7 million ($.26 per share diluted) for the three months ended September 30,
2000, compared to $1.1 million ($0.16 per share diluted) for the same period
in 1999. Weighted average shares outstanding (diluted) decreased to
6,724,973 shares for the third quarter of 2000, compared to 6,933,460 for the
third quarter of 1999.
Operating revenues for the nine months ended September 30, 2000, increased
2.7% to $96.3 million, compared to $93.7 million for the corresponding nine
month period of 1999. Net earnings increased 20.5% to $4.0 million
($0.59 per share diluted) for the nine months ended September 30, 2000,
compared to $3.3 million ($0.48 per share diluted) for the same nine month
period of 1999.
Marshall Tate, the Company's President and Chief Executive Officer stated:
"We are very encouraged by our third quarter results and believe the strong
improvement in net earnings is a result of our strategic direction and
execution. During the third quarter, we continued our successful efforts to
improve operating efficiency and tonnage yield. We were able to reduce our
operating ratio to 91.8%, versus 94.3% during the same period of 1999. We
believe the increased efficiency of our operations, together with improved
tonnage yield, will enable us to continue to improve profitability during the
remainder of 2000 and during 2001."
Mr. Tate continued: "In addition to our improved operating efficiency, our
customer service levels remain at or near all time highs. We continue to
believe that this has contributed to increased stability and loyalty in our
customer base, improved stability in yield, and a strong foundation on which
to further expand our market share within the region."
He continued: "While the revenue growth of 4.5% compared to the third
quarter of 1999 was less than the rate we have experienced historically for
this period, total revenues did increase significantly compared to the second
quarter of this year. Our sales organization continued its superb performance
during the third quarter, and we have benefited from a generally stable
pricing environment. Based on early indications, we expect revenue growth to
show further improvement during the fourth quarter of this year, as compared
to the fourth quarter of 1999."
Mr. Tate added: "Our results for the third quarter include approximately
$2.1 million in depreciation and amortization expense, underscoring our
continued strong cash flow. We anticipate that our Newark, California and
Denver, Colorado facilities will be sold during the fourth quarter. We have
replaced both of these facilities. Taxes on the related gains from these
proposed sales will be deferred for tax purposes, and the proceeds should
further bolster our cash reserves."
Motor Cargo Industries, Inc.
Consolidated Statements of Earnings
Three months ended Nine months ended
September 30, September 30,
2000 1999 2000 1999
(unaudited) (unaudited)
Operating revenues $34,098 $32,614 $96,254 $93,698
Operating expenses
Salaries, wages and
benefits 16,922 15,665 47,894 44,166
Operating supplies and
expenses 5,657 5,516 15,748 15,127
Purchased transportation 3,000 3,760 8,849 12,185
Operating taxes
and licenses 1,326 1,275 3,743 3,578
Insurance and claims 857 1,013 2,608 3,168
Depreciation and
amortization 2,144 2,271 6,640 6,511
Communications and
utilities 583 549 1,601 1,443
Building rents 881 775 2,607 2,140
Loss (gain) sale of
equipment (62) (63) (152) (123)
Other non-recurring
expense 0 0 103 0
Total operating
expenses 31,308 30,761 89,641 88,195
Operating income 2,790 1,853 6,613 5,503
Other income (expense)
Interest expenses (33) (32) (121) (101)
Other, net 46 23 97 97
13 (9) (24) (4)
Earnings before
income taxes 2,803 1,844 6,589 5,499
Income taxes 1,088 724 2,567 2,160
NET EARNINGS $ 1,715 $ 1,120 $ 4,022 $ 3,339
Earnings per share:
Basic $ 0.26 $ 0.16 $ 0.59 $ 0.48
Diluted $ 0.26 $ 0.16 $ 0.59 $ 0.48
Weighted-average
shares outstanding
Basic 6,720,693 6,925,040 6,796,755 6,942,855
Diluted 6,724,973 6,933,460 6,799,258 6,945,662
Motor Cargo Industries, Inc.
Summary Consolidated Balance Sheet
September 30, 2000 December 31, 1999
Cash $ 4,471 $ 5,509
Receivables 17,074 16,570
Other Current assets 4,193 5,011
Current Assets 25,738 27,090
Property and Equipment 51,171 52,815
Other assets 2,918 665
Total Assets $ 79,827 $80,570
Current Liabilities $ 12,094 $11,641
Long term obligations 4,190 $ 8,020
Deferred income taxes 7,265 $ 7,267
Stockholders Equity
Common Stock 10,464 11,850
Retained Earnings 45,814 41,792
Total Liabilities and Stockholder Equity $ 79,827 $80,570
Operating Statistics
Three months ended
September 30, 2000
Shipment 249,200
Weight in tons 144,747
Miles 10,090,419
Terminals 44