Allied Holdings Reports Third Quarter Results
24 October 2000
Allied Holdings Reports Third Quarter Results
Loss of $0.58 Per Share in Line with Revised Estimates;
Nine-Month Earnings Increase Approximately $4.9 Million Over Prior Year
DECATUR, Ga., Oct. 24 Allied Holdings, Inc.
today announced third quarter and year-to-date nine-month financial results.
The company reported a net loss for the third quarter ending September 30,
2000 of $4.6 million or $0.58 per share, versus a net loss of $3.8 million or
$0.49 per share for the same period last year. Revenues for the third quarter
of 2000 were $236.3 million, compared to revenues of $240.1 million for the
third quarter last year.
These results were in-line with revised expectations announced last month.
Allied Holdings told investors the company expected to post a loss of between
$0.50 to $0.60 per share for the third quarter, primarily caused by the loss
of business due to the Firestone tire recall and extended plant shutdowns by
other automotive manufacturers, which resulted in an approximate loss of
$2.4 million. Allied's subsidiary company, Allied Automotive Group, hauls
vehicles produced at the three Ford plants where new vehicle production was
halted to free up replacement tires for use in the Firestone recall.
Results for the nine-month period ending September 30, 2000 improved
significantly when compared to the prior year. Net income was $1.2 million
for the first nine months of 2000, an increase of approximately $4.9 million
compared to a loss of $3.7 million for the same period last year. Earnings
for the first nine months were $0.16 per share, compared to a loss of $0.47
per share for the nine-month period in 1999. Revenues for the nine-month
period ended September 30, 2000, were $815.1 million, an improvement of 3.4%
over revenues of $788.3 million for the same nine-month period of 1999.
A. Mitchell Poole, Jr., Allied Holdings, Inc.'s vice chairman and CEO,
said, "we are not pleased with our third quarter results, however our
year-to-date revenues and earnings indicate that the company's long-range
goals can be achieved. Our operating companies remain committed to finding
ways to reduce costs, eliminate unnecessary expenses and operate our
businesses in the most efficient manner possible. The management teams now in
place are dedicated to identifying methods to improve operating performance in
every area and return value to our investors and shareholders.
"During the third quarter, we reached an agreement to extend our business
relationship with our largest customer, which was mutually beneficial to both
parties. We continue to remain optimistic concerning our business plans going
forward and are confident that our strategic initiatives will contribute to
improved earnings. We continue to monitor higher automotive inventory levels
and recently announced incentive programs for their potential impact on
production levels."
ALLIED HOLDINGS, INC. AND SUBSIDIARIES
2000 THIRD QUARTER EARNINGS RELEASE
(In Thousands, Except Per Share Data)
For the Three Months Ended
September 30
2000 1999
Revenues $236,347 $240,058
Net loss ($4,610) ($3,823)
Loss per share-Basic and diluted ($0.58) ($0.49)
Weighted average common shares outstanding 7,961 7,818
For the Nine Months Ended
September 30
2000 1999
Revenues $815,128 $788,291
Net income (loss) $1,244 ($3,696)
Earnings (loss) per share-Basic and diluted $0.16 ($0.47)
Weighted average common shares outstanding 7,924 7,818
ALLIED HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands)
September 30 December 31
2000 1999
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $4,604 $13,984
Short-term investments 58,369 44,325
Receivables, net of allowance for
doubtful accounts 124,764 121,058
Inventories 7,916 7,949
Deferred tax assets 16,369 16,119
Prepayments and other current assets 23,779 22,182
Total current assets 235,801 225,617
PROPERTY AND EQUIPMENT, NET 258,684 287,838
OTHER ASSETS:
Goodwill, net 95,986 93,104
Other 42,770 43,361
Total other assets 138,756 136,465
Total assets $633,241 $649,920
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $150 $185
Trade accounts payable 37,321 42,931
Accrued liabilities 85,280 85,655
Total current liabilities 122,751 128,771
LONG-TERM DEBT, less current maturities 330,907 330,101
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS 10,336 11,973
DEFERRED INCOME TAXES 35,560 37,409
OTHER LONG-TERM LIABILITIES 67,648 74,752
STOCKHOLDERS' EQUITY:
Common stock, no par value; 20,000 shares
authorized, 8,246 and 7,997 shares outstanding
at September 30, 2000 and December 31, 1999,
respectively 0 0
Additional paid-in capital 45,515 44,437
Retained earnings 28,147 26,903
Cumulative other comprehensive income,
net of tax (7,155) (4,240)
Common stock in treasury, at cost, 62 and
29 shares at September 30, 2000 and
December 31, 1999, respectively (468) (186)
Total stockholders' equity 66,039 66,914
Total liabilities and stockholders' equity $633,241 $649,920
ALLIED HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
(Unaudited)
For the Three Months Ended For the Nine Months Ended
September 30 September 30
2000 1999 2000 1999
REVENUES $236,347 $240,058 $815,128 $788,291
OPERATING EXPENSES:
Salaries, wages and
fringe benefits 132,704 134,198 441,817 428,971
Operating supplies
and expenses 40,953 41,345 140,837 135,827
Purchased
transportation 23,513 22,866 79,967 77,395
Insurance and claims 11,226 11,695 36,369 37,572
Operating taxes and
licenses 9,650 8,743 31,491 30,555
Depreciation and
amortization 15,051 14,865 45,686 43,242
Rents 2,114 2,254 6,613 6,622
Communications and
utilities 1,335 2,062 5,550 6,489
Other operating
expenses 2,785 3,563 8,534 8,489
Total operating
expenses 239,331 241,591 796,864 775,162
Operating (loss)
income (2,984) (1,533) 18,264 13,129
OTHER INCOME (EXPENSE):
Equity in earnings
of joint ventures,
net of tax 1,502 1,519 4,201 1,616
Interest expense (8,321) (8,129) (25,070) (23,296)
Interest income 1,644 716 3,653 1,336
(LOSS) INCOME BEFORE
INCOME TAXES (8,159) (7,427) 1,048 (7,215)
INCOME TAX BENEFIT 3,549 3,604 196 3,519
NET (LOSS) INCOME ($4,610) ($3,823) $1,244 ($3,696)
PER COMMON SHARE --
BASIC AND DILUTED ($0.58) ($0.49) $0.16 ($0.47)
COMMON SHARES
OUTSTANDING
-- BASIC AND DILUTED 7,961 7,818 7,924 7,818
ALLIED HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
For the Nine Months Ended
September 30
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $1,244 ($3,696)
Adjustments to reconcile net income
(loss) to net cash provided by (used in)
operating activities:
Depreciation and amortization 45,686 43,242
Loss on sale of property and equipment 97 781
Deferred income taxes 104 2,415
Compensation expense related to
stock options and grants 452 441
Equity in earnings of joint ventures (4,201) (1,616)
Amortization (payment) of
Teamsters Union signing bonus 1,850 (9,654)
Change in operating assets and liabilities:
Receivables, net of allowance
for doubtful accounts (2,366) (17,034)
Inventories (7) (933)
Prepayments and other current assets (1,717) (2,655)
Trade accounts payable (6,587) (8,089)
Accrued liabilities (8,633) (15,239)
Total adjustments 24,678 (8,341)
Net cash provided by (used in)
operating activities 25,922 (12,037)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (15,972) (38,290)
Proceeds from sale of property and equipment 799 1,108
Purchase of business, net of cash acquired (8,185) (1,879)
Investment in joint venture 0 (80)
(Increase) decrease in short-term investments (14,044) 7,425
Increase in the cash surrender value of
life insurance (128) (47)
Net cash used in investing activities (37,530) (31,763)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt, net 771 55,930
Proceeds from issuance of common stock 626 211
Repurchase of common stock (282) 0
Other, net 1,894 841
Net cash provided by financing activities 3,009 56,982
EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS (781) 107
NET (DECREASE) INCREASE IN CASH
AND CASH EQUIVALENTS (9,380) 13,289
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 13,984 21,977
CASH AND CASH EQUIVALENTS AT END OF PERIOD $4,604 $35,266
ALLIED HOLDINGS, INC. AND SUBSIDIARIES
2000 THIRD QUARTER EARNINGS RELEASE
OPERATING DATA
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT 30 SEPT 30
2000 1999 2000 1999
ALLIED HOLDINGS,
EXCLUDING AAG
-- CANADA:
REVENUES $195,219,000 $202,684,000 $672,397,000 $658,029,000
OPERATING INCOME ($5,740,000) ($1,848,000) $5,112,000 $6,414,000
OPERATING RATIO 102.94% 100.91% 99.24% 99.03%
VEHICLES DELIVERED 1,988,238 2,286,182 6,927,529 7,355,212
LOADS DELIVERED 243,194 284,053 855,242 912,394
VEHICLES PER LOAD 8.18 8.05 8.10 8.06
REVENUE PER VEHICLE $98.19 $88.66 $97.06 $89.46
PERCENT DAMAGE
FREE DELIVERY 99.4% 99.4% 99.5% 99.4%
NUMBER OF
AVERAGE ACTIVE
RIGS 3,947 4,354 4,047 4,355
AVERAGE EMPLOYEES
DRIVERS 4,890 5,141 5,030 4,909
OTHERS 2,240 2,525 2,347 2,412
ALLIED AUTOMOTIVE
GROUP -- CANADA:
REVENUES $41,128,000 $37,374,000 $142,731,000 $130,262,000
OPERATING INCOME $2,756,000 $315,000 $13,152,000 $6,715,000
OPERATING RATIO 93.30% 99.16% 90.79% 94.85%
VEHICLES DELIVERED 535,276 526,038 2,030,044 1,867,343
LOADS DELIVERED 69,426 67,470 259,265 240,634
VEHICLES PER LOAD 7.71 7.80 7.83 7.76
REVENUE PER VEHICLE $76.84 $71.05 $70.31 $69.76
PERCENT DAMAGE
FREE DELIVERY 99.5% 99.6% 99.6% 99.6%
NUMBER OF
AVERAGE ACTIVE RIGS 833 855 827 863
AVERAGE EMPLOYEES
DRIVERS 1,222 1,236 1,239 1,185
OTHERS 563 586 567 581