ANUHCO, INC.
FIRST QUARTER 1997
REPORT TO SHAREHOLDERS
Fueled by the continued strong performance of Crouse Cartage Company ("Crouse"),
Anuhco's general commodities motor carrier, and the substantially improved
results of Universal Premium Acceptance Corporation ("UPAC") and Agency Premium
Resource, Inc. ("APR"), Anuhco's insurance premium finance operations, Anuhco
increased net income to $632,000, or $0.10 per share, on record operating
revenues of $31.4 million for the first quarter of 1997, compared to net income
of $353,000, or $0.05 per share on operating revenues of $25.2 million for the
first quarter of 1996.
Crouse earned operating income of $791,000 on record revenues of $29.1 million
in the first quarter of 1997, compared to operating income of $499,000 on
revenues of $24.3 million for the first quarter 1996. This improvement was the
principally the result of a 21% increase in less-than-truckload ("LTL") tons
handled. In addition, Crouse achieved a two percent increase in revenue yield
on LTL freight through the combination of a general rate increase, negotiated
increases in contracted rates and the implementation of fuel surcharges.
UPAC and APR reported operating income of $374,000 on net finance charges, fees
and other income earned of $2.2 million, compared to break-even results on net
finance charges, fees and other income earned of $0.9 million for APR in the
first quarter of 1996. The primary factor causing this increase in net finance
charges, fees and other income earned is the inclusion of UPAC's results since
its acquisition by Anuhco on March 29, 1996. Also, contributing to the improved
profitability was the Company's new securitization agreement and the integrated
administrative operations of UPAC and APR. Effective March 1, 1997, all phases
of the Company's premium finance business were combined and are now conducted
under the UPAC name.
Anuhco continues to maintain a strong balance sheet with cash and investments of
$15.1 million, excluding an additional $6.5 million included in net assets of
discontinued operations (included in other current assets), and book value per
share of $11.80 per share at March 31, 1997. Anuhco acquired 25,000 shares in
the first quarter of 1997 under its stock repurchase program. Approximately
225,000 additional shares are authorized to be repurchased under this program.
Effective April 6, 1997, Crouse expanded its LTL service area in Ohio. Through
a network of nine company and agency terminals, Crouse now provides daily,
direct service to approximately 95% of the Ohio market. This expanded service
is expected to positively impact Crouse's existing customer base and attract new
customers. The Company plans to continue to expand its service area during the
next three years throughout the Midwest market.
The Company's outlook for the remainder of 1997 continues to be positive as we
capitalize on the changes we have made in our operations over the last year.
/s/ Timothy P. O'Neil /s/ Roy R. Laborde
Timothy P. O'Neil Roy R. Laborde
President Chairman
April 25, 1997
"Safe Harbor" Statement under Private Securities Litigation Reform Act of 1995
The Company's 1997 outlook and all other statements in this report other than
historical facts are forward-looking statements that involve risks and
uncertainties and are subject to change at any time. The Company derives its
forward-looking statements from forecasts which are based upon assumptions about
many important factors such as the relationship of demand and capacity in the
freight market, the performance of finance and insurance markets, prevailing
short-term interest rates, general market conditions and competitive activities.
While the Company believes that its assumptions are reasonable, it cautions that
there are inherent difficulties in predicting the impact of certain factors,
which could cause actual results to differ materially from anticipated results.
These factors, as and when applicable, are discussed in the Company's filings
with the Securities and Exchange Commission, in particular its most recent Form
10-Q.
ANUHCO, INC.
UNAUDITED SUMMARY FINANCIAL STATEMENTS
(in thousands, except per share data)
CONSOLIDATED STATEMENTS OF INCOME
First Quarter Ended March 31, 1997 and 1996
1997 1996
Operating Revenues.......................... $ 31,388 $ 25,216
Operating Expenses.......................... 30,453 25,022
Operating Income............................ 935 194
Non-Operating Income........................ 215 425
Income Before Income Taxes.................. 1,150 619
Income Tax Provision........................ 518 266
Net Income.................................. $ 632 $ 353
Net Income Per Share ....................... $ 0.10 $ 0.05
Average Common Shares Outstanding........... 6,375 7,136
CONSOLIDATED BALANCE SHEETS
03/31/97 12/31/96
ASSETS
Cash and Short-Term Investments............. $ 15,110 $ 18,978
Finance Accounts Receivable, net............ 15,067 14,554
Freight Accounts Receivable, net............ 10,550 9,233
Other Current Assets........................ 11,740 10,153
Total Current Assets...................... 52,467 52,918
Operating Property, net..................... 23,402 23,390
Intangible and Other Assets................. 12,325 10,504
$ 88,194 $ 86,812
LIABILITIES AND SHAREHOLDERS' EQUITY
Total Current Liabilities................... $ 11,749 $ 11,048
Deferred Income Taxes....................... 1,437 1,203
Shareholders' Equity........................ 75,008 74,561
$ 88,194 $ 86,812
Anuhco, Inc. 8245 Nieman Road, Suite 100, Lenexa, Kansas 66214
(913) 859-0055