Celadon Group Announces First Quarter Results; TruckersB2B Reports 350% Sequential Quarterly Revenue Growth
2 November 2000
Celadon Group Announces First Quarter Results; TruckersB2B Reports 350% Sequential Quarterly Revenue Growth
INDIANAPOLIS--Nov. 2, 2000--Celadon Group, Inc. today announced financial results for the fiscal 2001 first quarter ended September 30, 2000.Consolidated revenue for the three months ended September 30, 2000 was $88.4 million, an increase of 7% compared with the 1999 September quarter of $82.7 million. The net loss was $470,000, or six cents a share, compared to a loss of $589,000, or eight cents a share, in the prior year. For the quarter, TruckersB2B, Inc. accounted for a loss of six cents a share. This loss resulted from marketing and administrative costs associated with the new business that began operations in March 2000.
Revenue at TruckersB2B increased to $900,000 in the September 2000 quarter, from $200,000 in the June quarter, which was the first full quarter of operations for the business. The revenue for the September quarter represents over $25 million in purchases made by our member companies through the TruckersB2B network. The Company indicated that TruckersB2B now has over 225,000 member trucks enrolled, represented by over 6,000 separate companies in the U.S. and Canada. Further, in view of current market conditions, the Company has decided to not pursue a public offering for TruckersB2B at this time.
In its trucking activities, revenue in the September quarter rose more than 6% to $87.5 million compared to $82.7 million in the prior September quarter. Approximately $1 million of this increase related to the dedicated warehousing operations for Cummins and Navistar. Operating income declined from $4.4 million to $2.4 million. The principal factor causing this decline was substantially higher fuel costs. As a long haul carrier, fuel is a significant element of cost. Surcharges lag the price changes, and cover only about 70% of the final implementation phase of a new operating system impacted results. Improved utilization of the fleet was offset by a higher percent of deadhead miles compared to prior year's levels.
TruckersB2B is an Internet-based "Business-to-Business" provider of pre-negotiated savings to its members on fuel, tires, freight finding, insurance, and other products and services purchased by small and medium-sized trucking companies and private fleets. TruckersB2B aggregates the volume purchasing capability of its members to achieve a lower cost of goods and services than could usually be obtained by its members individually. The discounts and rebates are provided to TruckersB2B members by leading vendors who are seeking to increase their sales volume and market share by utilizing the TruckersB2B "eMember Marketing" program to complement their traditional marketing methods.
Celadon Group Inc., is a trucking and e-commerce company headquartered in Indianapolis, IN. The Company operates approximately 2,500 line haul tractors and 7,000 trailers. Please visit the company's websites at: www.celadontrucking.com and www.truckersb2b.com.
The discussion set forth above as well as oral statements made by officers of the company relating thereto, may contain forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such comments are based upon information currently available to management and management's perception thereof as of the date of this press release. Actual results of the company's operations could materially differ from those forward looking statements. Such differences could be caused by a number of factors including, but not limited to, potential adverse affects of regulation; changes in competition and the effects of such changes; increased competition; change in fuel prices; changes in economic, political or regulatory environments; changes in the availability of a stable labor force; ability of the company to hire drivers meeting company standards; changes in management strategies; environmental or tax matters; and risks described from time to time in reports filed by the company with the Securities and Exchange Commission. Readers should take these factors into account in evaluating any such forward looking statements.
-- table follows --
For additional information on Celadon Group, Inc. free of charge
via the Internet, please go to
http://www.tirc.com/invest/celadon/index.htm
Celadon Group, Inc.
Consolidated Operating Results
(Unaudited)
(Amounts in thousands, except per share amounts)
Three Months Ended
9/30/00 9/30/99
-------- --------
Revenue
- Truckload $87,518 $82,665
- TruckersB2B 909 ---
-------- --------
Total Revenue 88,427 82,665
Operating income (loss)
- Truckload 2,435 4,415
- TruckersB2B (686) ---
-------- --------
Total operating income 1,749 4,415
Other (income) expense:
Other expense 33 89
Loss on disposition of equipment --- 3,266(a)
Interest expense 2,359 2,030
Interest income (36) (28)
Minority interest in subsidiary (12) ---
-------- ---------
Loss before tax (595) (942)
Benefit for income taxes (125) (353)
-------- ---------
Net loss $(470) $(589)
======= =======
Loss per share:
Diluted $(0.06) $(0.08)
======= =======
Basic $(0.06) $(0.08)
======= =======
Weighted average number of
Common shares outstanding
Diluted 7,783,603 7,771,956
========= =========
Basic 7,783,603 7,771,956
========= =========
(a) Includes a one-time charge related to the early disposition of
company equipment as a result of the Zipp Express, Inc.
acquisition.