ANUHCO, INC. THIRD QUARTER 1996 REPORT TO SHAREHOLDERS
Anuhco's third quarter 1996 results reflect continued improvements in freight
volumes offset in part by the competitive pricing market in the transportation
industry and the high level of fuel costs experienced so far this year. Also
reflected are some duplicate costs incurred in integrating the Company's
financial services operations. Consolidated income from continuing operations
for the third quarter of 1996 was $505,000, or $0.08 per share, on operating
revenue of $30.0 million; compared to $675,000, or $0.09 per share on operating
revenue of $24.7 million during the same quarter of 1995. Income from
discontinued operations for the third quarter of 1995 was $272,000, or $0.04
per share.
Third quarter operating results for Crouse Cartage Company, Anuhco's general
commodities motor carrier, were up compared to 1995, resulting primarily from
growth in less-than-truckload ("LTL") tonnage which showed a 29.1% improvement.
Third quarter operating income was $981,000 on revenue of $27.9 million versus
$741,000 on revenue of $23.6 million during 1996 and 1995, respectively. The
improvement from growth in LTL tonnage was offset somewhat by continued pressure
on freight rates resulting from industry over-capacity which pushed Crouse
Cartage's revenue per hundredweight down 5.2% compared to the same quarter of
1995 and continued high fuel costs which contributed to an increase in operating
expenses.
Agency Premium Resource, Inc. ("APR") and Universal Premium Acceptance
Corporation ("UPAC"), Anuhco's insurance premium finance subsidiaries, generated
an operating loss of $14,000 on net finance charges and fees earned of $2.1
million for the third quarter of 1996. This loss was the result of certain
duplicate costs incurred while the back office operations of APR and UPAC are
integrated. Some additional integration costs will be incurred through the first
half of 1997. The fully integrated operations of APR and UPAC will provide a
nationwide presence and opportunity for further expansion in this market.
Anuhco continued the second phase of its program to repurchase an additional 10%
of its outstanding shares, approximately 681,300 shares. Through September 30,
1996, Anuhco has repurchased 257,800 shares.
Anuhco continues to maintain a strong cash and investment position of
approximately $24.6 million as of September 30, 1996. In July 1996, AFS,
Anuhco's discontinued operation, paid a dividend of $8.5 million to Anuhco from
its excess cash and investments. After the dividend, AFS had remaining net
assets of approximately $8 million, $6 million of which is in cash and
investments.
In the fourth quarter of 1996, Anuhco will offer a program to repurchase shares
of its common stock from odd lot holders (those shareholders with less than 100
shares) at current market prices. This program will reduce the Company's
administrative costs while providing an opportunity for small shareholders to
sell their shares with no broker commissions.
Timothy P. O'Neil Roy R. Laborde
President Chairman
ANUHCO, INC.
UNAUDITED SUMMARY FINANCIAL STATEMENTS
(in thousands, except per share data)
CONSOLIDATED STATEMENTS OF INCOME
Third Quarter and Nine Months Ended September 30, 1996 and 1995
Third Quarter Nine Months
-------------------------- ---------------------------
1996 1995 1996 1995
----------- ----------- ----------- -----------
Operating Revenues.............................................. $ 30,041 $ 24,651 $ 83,604 $ 73,851
Operating Expenses.............................................. 29,332 23,967 82,275 71,716
----------- ----------- ----------- -----------
Operating Income................................................ 709 684 1,329 2,135
Non-Operating Income............................................ 297 500 931 1,635
----------- ----------- ----------- -----------
Income From Continuing Operations Before Income Taxes........... 1,006 1,184 2,260 3,770
Income Tax Provision............................................ 501 509 1,040 1,621
----------- ----------- ----------- -----------
Income From Continuing Operations............................... 505 675 1,220 2,149
Income From Discontinued Operations............................. -- 272 -- 867
----------- ----------- ----------- -----------
Net Income...................................................... $ 505 $ 947 $ 1,220 $ 3,016
Income Per Share -
Continuing Operations......................................... $ 0.08 $ 0.09 $ 0.18 $ 0.29
Discontinued Operations....................................... 0.00 0.04 0.00 0.11
----------- ----------- ----------- -----------
Total....................................................... $ 0.08 $ 0.13 $ 0.18 $ 0.40
Average Common Shares Outstanding............................... 6,609 7,392 6,878 7,500
CONSOLIDATED BALANCE SHEETS
09/30/96 12/31/95
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ASSETS
------
Cash and Short-Term Investments................................. $ 24,606 $ 33,983
Finance Accounts Receivable, net................................ 36,476 8,290
Other Current Assets............................................ 19,800 26,260
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Total Current Assets.......................................... 80,882 68,533
Operating Property, net......................................... 20,547 16,223
Intangible and Other Assets..................................... 10,286 3,670
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$ 111,715 $ 88,426
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Notes Payable, Secured.......................................... $ 23,440 $ --
Other Current Liabilities....................................... 11,049 7,603
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Total Current Liabilities..................................... 34,489 7,603
Deferred Income Taxes........................................... 637 543
Shareholders' Equity............................................ 76,589 80,280
----------- -----------
$ 111,715 $ 88,426
Anuhco, Inc. 8245 Nieman Road, Suite 100, Lenexa, Kansas 66214
(913) 859-0055