Transport Corporation Of America (TCAM) Inactive
Filed: 7 Feb 06, 12:00am
Exhibit 99.1
Transport Corporation of America, Inc.
1715 Yankee Doodle Road
Eagan, MN 55121
Traded: Nasdaq: TCAM
| COMPANY CONTACTS: | |
|---|---|
| Michael Paxton Chairman, President and CEO (651) 686-2500 | Keith Klein Chief Financial Officer (651) 686-2500 |
MINNEAPOLIS, MINNESOTA, February 7, 2006 –Transport Corporation of America, Inc. (NASDAQ: TCAM), today announced revenues for the fourth quarter 2005 of $65.8 million, compared with 2004 fourth quarter revenues of $65.3 million. Excluding fuel surcharges, revenues decreased to $56.1 million from $58.6 million.
Fourth quarter 2005‘s net loss was $445,000, or $0.07 per share, compared with fourth quarter 2004 net income of $1.1 million, or $0.17 per diluted share. Results in the fourth quarter 2005 include one-time expenses related to the previously announced proposed merger with Goldner Hawn Johnson & Morrison Incorporated of $800,000 after taxes, or $0.12 per share.
For the year ended December 31, 2005, Transport America announced revenues of $254.4 million, compared with 2004 revenues of $258.4 million. Excluding fuel surcharges, revenues decreased to $222.4 million from $239.9 million.
Net income for the year was $596,000, or $0.09 per diluted share, compared with a 2004 net income of $2.0 million, or $0.30 per diluted share. Results in 2005 include one-time expenses related to the pending merger of $979,000 after taxes, or $0.15 per diluted share, and a gain of $182,000 after taxes, or $0.03 per diluted share, relating to the sale of its Garland, Texas maintenance facility.
On October 27, 2005, the Company announced that it had signed a definitive merger agreement to be acquired by an affiliate of Minneapolis-based private equity investment firm, Goldner Hawn Johnson & Morrison Incorporated. On January 27, 2006, the Special Committee of the Board of Directors of Transport America issued notice of a special meeting of shareholders to be held on Tuesday, February 28, 2006; the purpose of which is to vote upon a proposal to approve the Agreement and Plan of Merger providing for the acquisition of Transport America by Patriot Holding Corp., a Minnesota Corporation controlled by Goldner Hawn Johnson & Morrison Incorporated. In light of these developments, the Company has determined to forego its normal quarterly conference call.
Transport Corporation of America, Inc., based in the Minneapolis — St. Paul metropolitan area, provides a wide range of truckload freight carriage and logistics services to customers in the United States, Mexico, and Canada. Transport America focuses on providing time-definite and other responsive services through its team of dedicated and committed employees supported by state-of-the-art technology and information systems.
This news release contains forward-looking statements regarding the Company. The Company wishes to caution readers not to place undue reliance on any forward-looking statements which speak only as of the date made. The following important factors, among other things, in some cases have affected and in the future could affect the Company’s actual results and could cause the Company’s actual financial performance to differ materially from that expressed in any forward-looking statement: (1) Transport America may not be able to complete the proposed merger on the terms described above or other acceptable terms or at all because of a number of factors, including the failure to obtain shareholder approval, the failure of financing or the failure to satisfy the other closing conditions, (2) the highly competitive conditions that currently exist in the Company’s market and the Company’s ability to compete, (3) the Company’s ability to recruit, train, and retain qualified drivers, (4) increases in fuel prices, and the Company’s ability to recover these costs from its customers, (5) the impact of environmental standards and regulations on new revenue equipment, (6) changes in governmental regulations applicable to the Company’s operations, (7) adverse weather conditions, (8) accidents, (9) the financing and resale market for used revenue equipment, (10) changes in interest rates, (11) cost of liability insurance coverage, and (12) downturns in general economic conditions affecting the Company and its customers. The foregoing list should not be construed as exhaustive and the Company disclaims any obligation subsequently to revise or update any previously made forward-looking statements. Unanticipated events are likely to occur.
TRANSPORT CORPORATION OF AMERICA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three and Twelve Months ended December 31, 2005 and 2004
(In thousands, except share and per share amounts)
| Three Months (Unaudited) | Year To Date (Unaudited) | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2005 | 2004 | 2005 | 2004 | |||||||||||||||||||||||
| Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||
| Operating revenues | $ | 65,774 | 100.0 | $ | 65,303 | 100.0 | $ | 254,395 | 100.0 | $ | 258,408 | 100.0 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||
| Salaries, wages, and benefits | 19,948 | 30.3 | 18,764 | 28.7 | 77,924 | 30.6 | 76,129 | 29.5 | ||||||||||||||||||
| Fuel, maintenance, and other expense | 14,584 | 22.2 | 11,904 | 18.2 | 51,009 | 20.1 | 42,909 | 16.6 | ||||||||||||||||||
| Purchased transportation | 17,617 | 26.8 | 18,822 | 28.8 | 72,007 | 28.3 | 79,144 | 30.6 | ||||||||||||||||||
| Revenue equipment leases | 373 | 0.6 | 374 | 0.6 | 1,568 | 0.6 | 1,266 | 0.5 | ||||||||||||||||||
| Depreciation and amortization | 5,743 | 8.7 | 6,064 | 9.3 | 22,548 | 8.9 | 23,757 | 9.2 | ||||||||||||||||||
| Insurance, claims, and damage | 2,352 | 3.6 | 2,672 | 4.1 | 8,585 | 3.4 | 12,496 | 4.8 | ||||||||||||||||||
| Taxes and licenses | 1,074 | 1.6 | 1,213 | 1.9 | 4,431 | 1.7 | 4,604 | 1.8 | ||||||||||||||||||
| Communication | 307 | 0.5 | 449 | 0.7 | 1,513 | 0.6 | 1,788 | 0.7 | ||||||||||||||||||
| Other general and administrative expenses | 2,424 | 3.7 | 2,409 | 3.7 | 9,913 | 3.9 | 9,634 | 3.7 | ||||||||||||||||||
| Merger / Acquisition Expenses | 813 | 1.2 | 0 | 0.0 | 1,104 | 0.4 | 0 | 0.0 | ||||||||||||||||||
| Impairment of sublease office space | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 | 190 | 0.1 | ||||||||||||||||||
| Loss (Gain) on disposition of property and equipment | (33 | ) | (0.1 | ) | 47 | 0.1 | (365 | ) | (0.1 | ) | 25 | 0.0 | ||||||||||||||
| Total operating expenses | 65,202 | 99.1 | 62,718 | 96.0 | 250,237 | 98.4 | 251,942 | 97.5 | ||||||||||||||||||
| Operating income | 572 | 0.9 | 2,585 | 4.0 | 4,158 | 1.6 | 6,466 | 2.5 | ||||||||||||||||||
| Interest expense, net | 669 | 1.0 | 708 | 1.1 | 2,597 | 1.0 | 3,115 | 1.2 | ||||||||||||||||||
| Earnings before income taxes | (97 | ) | (0.1 | ) | 1,877 | 2.9 | 1,561 | 0.6 | 3,351 | 1.3 | ||||||||||||||||
| Income tax provision | 348 | 0.5 | 741 | 1.1 | 965 | 0.4 | 1,314 | 0.5 | ||||||||||||||||||
| Net earnings (loss) | $ | (445 | ) | (0.7 | ) | $ | 1,136 | 1.7 | $ | 596 | 0.2 | $ | 2,037 | 0.8 | ||||||||||||
| Earnings (loss) per common share - basic | $ | (0.07 | ) | $ | 0.17 | $ | 0.09 | $ | 0.30 | |||||||||||||||||
| Earnings (loss) per common share - diluted | $ | (0.07 | ) | $ | 0.17 | $ | 0.09 | $ | 0.30 | |||||||||||||||||
| Average common shares outstanding | ||||||||||||||||||||||||||
| Basic | 6,567,826 | 6,525,692 | 6,557,591 | 6,722,157 | ||||||||||||||||||||||
| Diluted | 6,567,826 | 6,665,496 | 6,694,228 | 6,841,195 | ||||||||||||||||||||||
ASSETS
| 2005 | 2004 | |||||||
|---|---|---|---|---|---|---|---|---|
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 7,461 | $ | 3,714 | ||||
| Trade receivables, net of allowances | 24,607 | 24,610 | ||||||
| Other receivables | 2,473 | 1,170 | ||||||
| Operating supplies | 864 | 800 | ||||||
| Deferred income taxes | 4,684 | 6,316 | ||||||
| Prepaid expenses | 4,523 | 2,626 | ||||||
| Total Current Assets | 44,612 | 39,236 | ||||||
| Revenue Equipment, At Cost | 172,488 | 180,827 | ||||||
| Less: accumulated depreciation | (68,080 | ) | (80,077 | ) | ||||
| Revenue Equipment, Net | 104,408 | 100,750 | ||||||
| Property and Other Equipment: | ||||||||
| Land, buildings, and improvements | 15,195 | 16,516 | ||||||
| Other equipment and leasehold improvements | 19,177 | 21,219 | ||||||
| Less: accumulated depreciation | (18,168 | ) | (18,699 | ) | ||||
| Property and Other Equipment, Net | 16,204 | 19,036 | ||||||
| Revenue, Property and Other Equipment, Net | 120,612 | 119,786 | ||||||
| Other Assets, Net | 1,573 | 2,056 | ||||||
| Total Assets | $ | 166,797 | $ | 161,078 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
| 2005 | 2004 | |||||||
|---|---|---|---|---|---|---|---|---|
| Current Liabilities: | ||||||||
| Current maturities of Long Term Debt | $ | 11,171 | $ | 7,965 | ||||
| Current maturities of Capital Lease Obligations | 2,823 | 9,990 | ||||||
| Accounts payable | 3,974 | 5,026 | ||||||
| Checks issued in excess of cash balances | 2,398 | 1,871 | ||||||
| Due to independent contractors | 912 | 1,157 | ||||||
| Accrued expenses | 21,130 | 21,132 | ||||||
| Total Current Liabilities | 42,408 | 47,141 | ||||||
| Long-Term Debt & Capital Lease Obligations | ||||||||
| Long-term debt less current maturities | 41,892 | 28,336 | ||||||
| Capital lease obligations less current maturities | — | 2,826 | ||||||
| Total Long-Term Debt & Capital Lease Obligations | 41,892 | 31,162 | ||||||
| Deferred Income Taxes | 25,331 | 26,504 | ||||||
| Shareholders’ Equity: | ||||||||
| Common stock | 66 | 65 | ||||||
| Additional paid-in capital | 25,726 | 25,428 | ||||||
| Retained earnings | 31,374 | 30,778 | ||||||
| Total Shareholders’ Equity | 57,166 | 56,271 | ||||||
| Total Liabilities and Equity | $ | 166,797 | $ | 161,078 | ||||
| Three Months | Twelve Months | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2005 | 2004 | 2005 | 2004 | |||||||||||
| Operating Statistics | ||||||||||||||
| Company tractors, seated | 903 | 860 | 903 | 860 | ||||||||||
| Company tractors, other | 130 | 159 | 130 | 159 | ||||||||||
| Independent contractor | 388 | 551 | 388 | 551 | ||||||||||
| Total tractors (at end of period) | 1,421 | 1,570 | 1,421 | 1,570 | ||||||||||
| Trailers (at end of period) | 4,316 | 4,897 | 4,316 | 4,897 | ||||||||||
| Average company tractors in service | 1,353 | 1,551 | 1,394 | 1,607 | ||||||||||
| Total loaded miles (000's) | 32,079 | 36,721 | 133,270 | 157,342 | ||||||||||
| Total miles (000's) | 35,931 | 41,441 | 149,560 | 176,722 | ||||||||||
| Freight revenue per tractor per week* | $ | 3,034 | $ | 2,924 | $ | 2,937 | $ | 2,880 | ||||||
| Fuel surcharge per tractor per week | $ | 577 | $ | 350 | $ | 453 | $ | 226 | ||||||
| Operating revenue per tractor per week | $ | 3,611 | $ | 3,274 | $ | 3,390 | $ | 3,106 | ||||||
| Freight revenues per loaded mile* | $ | 1.586 | $ | 1.532 | $ | 1.554 | $ | 1.494 | ||||||
| Fuel surcharge per loaded mile | $ | 0.303 | $ | 0.183 | $ | 0.240 | $ | 0.118 | ||||||
| Operating revenues per loaded mile | $ | 1.889 | $ | 1.715 | $ | 1.794 | $ | 1.612 | ||||||
| Freight revenues per mile* | $ | 1.416 | $ | 1.357 | $ | 1.385 | $ | 1.330 | ||||||
| Fuel surcharge per mile | $ | 0.270 | $ | 0.162 | $ | 0.214 | $ | 0.105 | ||||||
| Operating revenues per mile | $ | 1.686 | $ | 1.519 | $ | 1.599 | $ | 1.435 | ||||||
| Average empty mile percentage | 10.7 | % | 11.4 | % | 10.9 | % | 11.0 | % | ||||||
| Average length of haul, all miles | 657 | 664 | 658 | 682 | ||||||||||
| Average annual revenues per non-driver employee (000's) | $ | 693 | $ | 659 | $ | 660 | $ | 642 | ||||||
| Financial Data (000's) | ||||||||||||||
| Freight revenue (excluding fuel surcharge) | $ | 50,880 | $ | 56,251 | $ | 207,137 | $ | 235,095 | ||||||
| Fuel surcharge revenue | 9,710 | 6,718 | 31,973 | 18,485 | ||||||||||
| Operating revenue (including fuel surcharge) | $ | 60,590 | $ | 62,969 | $ | 239,110 | $ | 253,580 | ||||||
| Logistics and other revenue | 5,185 | 2,334 | 15,285 | 4,828 | ||||||||||
| Total revenue | $ | 65,775 | $ | 65,303 | $ | 254,395 | $ | 258,408 | ||||||
| Capital expenditures, net of proceeds | $ | 6,091 | $ | 5,377 | $ | 24,308 | $ | 19,027 | ||||||
| Total debt and capital lease obligations | $ | 55,886 | $ | 49,117 | $ | 55,886 | $ | 49,117 | ||||||
| * Excluding fuel surcharge | ||||||||||||||