| 9503 East 33rd Street Indianapolis, IN 46235-4207 (800) CELADON (317) 972-7000 |
For more information:
Jeryl Desjarlais April 25, 2013
Communications Manager
(800) CELADON Ext. 7070
(317) 972-7070 Direct
jdesjarlais@celadongroup.com
CELADON GROUP REPORTS THIRD FISCAL QUARTER FINANCIAL RESULTS
AND DELCARES DIVIDEND
INDIANAPOLIS – Celadon Group Inc. (NYSE : CGI) today reported its financial and operating results for the three months ended March 31, 2013, the third fiscal quarter of the Company’s fiscal year ending June 30, 2013.
Revenue for the quarter decreased 2.4% to $149.6 million in the 2013 quarter from $153.3 million in the 2012 quarter. Freight revenue decreased 1.9% to $118.7 million in the 2013 quarter from $121.0 million in the 2012 quarter. Net income decreased 22.8% to $4.4 million in the 2013 quarter from $5.7 million for the same quarter last year. Earnings per diluted share decreased 24% to $0.19 in the 2013 quarter from $0.25 for the same quarter last year.
For the nine months ended March 31, 2013, revenue increased 2.2% to $451.0 million in 2013 from $441.5 million for the same period last year. Freight revenue, which excludes fuel surcharges, increased 1.9% to $357.6 million in 2013 from $350.8 million for the same period last year. Net income increased to $20.0 million in 2013 from $16.6 million for the same period last year. Earnings per diluted share increased to $0.86 in 2013 from $0.73 for the same period last year.
Paul Will, President and Chief Executive Officer, made the following comments: “The quarter was impacted by several factors when compared with prior year. Due to leap year in 2012 and an early Easter in 2013, there were basically two fewer business days. In addition, winter weather storms in 2013 resulted in decreased availability for freight movements compared with the prior year. Our benefits expense related to medical claims negatively impacted the 2013 quarter by approximately three cents in earnings per share compared with prior year due to some unusually high medical claims that were incurred in the quarter.
“We are pleased with the increase in average revenue per tractor per week of $99, or 3.5%, to $2,898 in the March 31, 2013 quarter from $2,799 in the prior year period. However, we are disappointed in the decrease in the average seated line-haul tractors of 227, or 8%, to 2,624 in the March 31, 2013 quarter from 2,851 in the March 31, 2012 quarter. To address this shortfall, we have expanded recruiting efforts at terminal locations, as well as established a driving school and training program at our Indianapolis headquarters. These actions have already produced positive results as our seated count has increased by over 70 since March 31, 2013.
“The average age of the Company’s tractor fleet was 1.2 years as of March 31, 2013, compared to 1.6 years as of March 31, 2012 and the average age of the trailer fleet was 2.0 years as of March 31, 2013 compared with 3.2 years as of March 31, 2012. The Company has completed its current tractor refresh cycle and will be complete on the trailer side in the June quarter.
“We believe we have put in place a lean cost structure, upgraded and expanded the fleet to one of the newest in the industry, broadened service offerings to customers, and positioned the Company to allow it to expand margins and profitability.
“Our balance sheet remains solid and we retain significant liquidity to support the growth of our business. At March 31, 2013, we had $220.1 million of stockholders' equity, and $4.5 million in cash and cash equivalents.”
On April 25, 2013, the Board of Directors approved a regular cash dividend to shareholders for the quarter ending March 31, 2013. The quarterly cash dividend of two cents ($0.02) per share of common stock will be payable on July 14, 2013 to shareholders of record at the close of business on July 5, 2013.
Conference Call Information
An investor conference call is scheduled for Friday, April, 26, at 11:00 a.m. ET. Steve Russell and other members of management will discuss the results of the quarter. To listen and participate in a questions-and-answers exchange, simply dial 855-410-0553 (or 646-583-7389) pin number 234998 a few minutes prior to the start time. A replay will be available through May 26th at http://investors.celadontrucking.com.
Celadon Group Inc. (www.celadongroup.com), through its subsidiaries, primarily provides long-haul, full-truckload freight service across the United States, Canada and Mexico. The company also owns Celadon Logistics Services, which provides freight brokerage; Celadon Dedicated Services, which provides supply chain management solutions, such as warehousing and dedicated fleet services; and owns a minority interest in TruckersB2B (www.truckersb2b.com) which provides cost savings to member fleets.
This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may be identified by their use of terms or phrases such as "expects," "estimates," "projects," "believes," "anticipates," "plans," "intends," and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those in forward-looking statements: the risk that our perception of additional capacity due to seating trucks and perceived benefits thereof are inaccurate; the risk that our perception of changes in our customer base and perceived benefits thereto are inaccurate; the risk that managing our tractor fleet age does not result in greater flexibility and lower operating expenses; excess tractor and trailer capacity in the trucking industry; decreased demand for our services or loss of one or more of our major customers; surplus inventories; recessionary economic cycles and downturns in customers' business cycles; strikes, work slow downs, or work stoppages at our facilities, or at customer, port, border crossing, or other shipping related facilities; increases in compensation for and difficulty in attracting and retaining qualified drivers and independent contractors; increases in insurance premiums and deductible amounts; elevated experience in the frequency or severity of claims relating to accident, cargo, workers' compensation, health, and other matters; fluctuations in claims expenses that result from high self-insured retention amounts and differences between estimates used in establishing and adjusting claims reserves and actual results over time; increases or rapid fluctuations in fuel prices, as well as fluctuations in hedging activities and surcharge collection, the volume and terms of diesel purchase commitment, interest rates, fuel taxes, tolls, and license and registration fees; fluctuations in foreign currency exchange rates; increases in the prices paid for new revenue equipment and changes in the resale value of our used equipment; increases in interest rates or decreased availability of capital or other sources of financing for revenue equipment; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, and intermodal competitors; regulatory requirements that increase costs or decrease efficiency, including revised hours-of-service requirements for drivers and new emissions control regulations; our ability to identify acceptable acquisition candidates, consummate acquisitions, and integrate acquired operations; the timing of, and any rules relating to, the opening of the border to Mexican drivers; challenges associated with doing business internationally; our ability to retain key employees; and the effects of actual or threatened military action or terrorist attacks or responses, including security measures that may impede shipping efficiency, especially at border crossings.
Readers should review and consider these factors along with the various disclosures by the company in its press releases, stockholder reports, and filings with the Securities Exchange Commission. We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information.
- tables follow -
CELADON GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars and shares in thousands except per share amounts)
(Unaudited)
| | | For the three months ended | | | For the nine months ended | |
| | | March 31, | | | March 31, | |
| | | 2013 | | | 2012 | | | 2013 | | | 2012 | |
| | | | | | | | | | | | | |
| REVENUE: | | | | | | | | | | | | |
| Revenue, before fuel surcharge | | $ | 118,736 | | | $ | 120,988 | | | $ | 357,647 | | | $ | 350,831 | |
| Fuel surcharge revenue | | | 30,902 | | | | 32,321 | | | | 93,400 | | | | 90,638 | |
| Total revenue | | | 149,638 | | | | 153,309 | | | | 451,047 | | | | 441,469 | |
| | | | | | | | | | | | | | | | | |
| OPERATING EXPENSES: | | | | | | | | | | | | | | | | |
| Salaries, wages, and employee benefits | | | 40,334 | | | | 41,720 | | | | 122,373 | | | | 116,842 | |
| Fuel | | | 35,808 | | | | 41,253 | | | | 109,682 | | | | 116,782 | |
| Purchased transportation | | | 32,814 | | | | 26,833 | | | | 89,789 | | | | 81,268 | |
| Revenue equipment rentals | | | 1,653 | | | | 2,332 | | | | 5,303 | | | | 4,238 | |
| Operations and maintenance | | | 7,912 | | | | 10,130 | | | | 23,691 | | | | 30,110 | |
| Insurance and claims | | | 3,495 | | | | 3,527 | | | | 10,984 | | | | 10,245 | |
| Depreciation and amortization | | | 13,796 | | | | 11,563 | | | | 36,004 | | | | 35,507 | |
| Communications and utilities | | | 1,382 | | | | 1,080 | | | | 4,023 | | | | 2,982 | |
| Operating taxes and licenses | | | 2,660 | | | | 2,531 | | | | 7,758 | | | | 7,636 | |
| General and other operating | | | 1,748 | | | | 1,737 | | | | 5,673 | | | | 5,035 | |
| Total operating expenses | | | 141,602 | | | | 142,706 | | | | 415,280 | | | | 410,645 | |
| | | | | | | | | | | | | | | | | |
| Operating income | | | 8,036 | | | | 10,603 | | | | 35,767 | | | | 30,824 | |
| | | | | | | | | | | | | | | | | |
| Interest expense | | | 1,080 | | | | 1,382 | | | | 3,743 | | | | 4,288 | |
| Interest income | | | 0 | | | | (4 | ) | | | 0 | | | | (56 | ) |
| Other (income) expense, net | | | (400 | ) | | | (199 | ) | | | (679 | ) | | | (696 | ) |
| Income before income taxes | | | 7,356 | | | | 9,424 | | | | 32,703 | | | | 27,288 | |
| Income tax expense | | | 2,978 | | | | 3,766 | | | | 12,683 | | | | 10,717 | |
| Net income | | $ | 4,378 | | | $ | 5,658 | | | $ | 20,020 | | | $ | 16,571 | |
| | | | | | | | | | | | | | | | | |
| Income per common share: | | | | | | | | | | | | | | | | |
| Diluted | | $ | 0.19 | | | $ | 0.25 | | | $ | 0.86 | | | $ | 0.73 | |
| Basic | | $ | 0.19 | | | $ | 0.25 | | | $ | 0.89 | | | $ | 0.75 | |
| | | | | | | | | | | | | | | | | |
| Diluted weighted average shares outstanding | | | 23,522 | | | | 22,974 | | | | 23,315 | | | | 22,783 | |
| Basic weighted average shares outstanding | | | 22,730 | | | | 22,235 | | | | 22,567 | | | | 22,234 | |
Key Operating Statistics
| | | For the three months ended | | | For the nine months ended | |
| | | March 31, | | | March 31, | |
| | | 2013 | | | 2012 | | | 2013 | | | 2012 | |
| Average revenue per loaded mile (*) | | $ | 1.545 | | | $ | 1.529 | | | $ | 1.555 | | | $ | 1.522 | |
| Average revenue per total mile (*) | | $ | 1.374 | | | $ | 1.358 | | | $ | 1.386 | | | $ | 1.356 | |
| Average revenue per tractor per week (*) | | $ | 2,898 | | | $ | 2,799 | | | $ | 2,873 | | | $ | 2,858 | |
| Average miles per seated tractor per week(**) | | | 2,080 | | | | 2,051 | | | | 2,054 | | | | 2,098 | |
| Average seated line-haul tractors (**) | | | 2,624 | | | | 2,851 | | | | 2,686 | | | | 2,671 | |
| *Freight revenue excluding fuel surcharge and our Mexican subsidiary Jaguar. | | | | | | | | | |
| **Total seated fleet, including equipment operated by independent contractors and our Mexican subsidiary, Jaguar. | |
CELADON GROUP, INC
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2013 and June 30, 2012
(Dollars and shares in thousands except par value amounts)
| | | (unaudited) | | | | |
| | | March 31, | | | June 30, | |
| ASSETS | | 2013 | | | 2012 | |
| | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 4,529 | | | $ | 33,646 | |
| Trade receivables, net of allowance for doubtful accounts of $924 and $1,007 at March 31, 2013 and June 30, 2012, respectively | | | 66,826 | | | | 67,615 | |
| Prepaid expenses and other current assets | | | 15,036 | | | | 10,910 | |
| Tires in service | | | 959 | | | | 1,805 | |
| Equipment held for resale | | | 12,569 | | | | 7,908 | |
| Deferred income taxes | | | 3,948 | | | | 4,160 | |
| Total current assets | | | 103,867 | | | | 126,044 | |
| Property and equipment | | | 580,868 | | | | 483,327 | |
| Less accumulated depreciation and amortization | | | 110,184 | | | | 112,871 | |
| Net property and equipment | | | 470,684 | | | | 370,456 | |
| Tires in service | | | 1,384 | | | | 2,487 | |
| Goodwill | | | 17,483 | | | | 16,702 | |
| Investment in unconsolidated companies | | | 4,266 | | | | 3,491 | |
| Other assets | | | 3,267 | | | | 1,531 | |
| Total assets | | $ | 600,951 | | | $ | 520,711 | |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable | | $ | 5,202 | | | $ | 7,734 | |
| Accrued salaries and benefits | | | 10,472 | | | | 13,854 | |
| Accrued insurance and claims | | | 9,525 | | | | 10,138 | |
| Accrued fuel expense | | | 10,229 | | | | 6,029 | |
| Other accrued expenses | | | 21,018 | | | | 17,911 | |
| Current maturities of capital lease obligations | | | 24,878 | | | | 45,135 | |
| Income taxes payable | | | 927 | | | | 1,483 | |
| Total current liabilities | | | 82,251 | | | | 102,284 | |
| Capital lease obligations, net of current maturities | | | 187,765 | | | | 185,436 | |
| Long term debt, net of current maturities | | | 64,772 | | | | --- | |
| Deferred income taxes | | | 46,047 | | | | 38,210 | |
| Stockholders' equity: | | | | | | | | |
| Common stock, $0.033 par value, authorized 40,000 shares; issued and outstanding 23,897 and 23,984 shares at March 31, 2013 and June 30, 2012, respectively | | | 788 | | | | 791 | |
| Treasury stock at cost, 707 and 1,155 shares at March 31, 2013 and June 30, 2012, respectively | | | (4,880 | ) | | | (7,966 | ) |
| Additional paid-in capital | | | 103,219 | | | | 101,154 | |
| Retained earnings | | | 124,437 | | | | 105,765 | |
| Accumulated other comprehensive loss | | | (3,448 | ) | | | (4,963 | ) |
| Total stockholders' equity | | | 220,116 | | | | 194,781 | |
| Total liabilities and stockholders' equity | | $ | 600,951 | | | $ | 520,711 | |
