M.S. Carriers, Inc. Reports Increase In Revenue In First Quarter 2001
Contact: Joe Barrow (901) 344-4401
Memphis, Tenn. (April 17, 2001) -- M.S. Carriers, Inc. (NASDAQ: MSCA), an
irregular route truckload carrier, reports the following results for the quarter
ending March 31, 2001:
Three Months Ended March 31
2001 2000 % Change
---- ---- --------
Revenues $ 182.2 $ 167.1 9.0%
Operating Income $ 6.7 $ 9.9 -31.8%
Net Income $ 1.1 $ 4.6 -77.0%
Diluted Earnings Per Share $ 0.09 $ 0.38 -76.3%
(In millions except per share data)
Operating revenues for the first quarter of 2001 increased nine percent to
$182.2 million from $167.1 million in the same period 2000. Operating income
for the first quarter of 2001 was $6.7 million, a 31.8 percent decrease from
$9.9 million in the same period 2000. Net income for the quarter ending March
31, 2001 was $1.1 million, a 77.0 percent decrease from $4.6 million in the
first quarter of 2000. Diluted earnings per share for the first quarter of 2001
were nine cents, a decrease of 76.3 percent from 38 cents for the same quarter
last year.
Mike Starnes, chairman and chief executive officer said: "Softness in the
truckload freight markets during the first quarter of 2001 lowered our operating
margins primarily through a greater percentage of non-revenue miles. The months
of January and February 2001 were particularly affected by this factor. Market
conditions improved in March but were still down compared to last year.
"We are progressing with the merger with Swift Transportation that was announced
December 11, 2000. During this quarter, M.S. Carriers accrued $0.02 per share
for merger related expenses. We expect to close the merger in the second
quarter of 2001."
M.S. Carriers will hold a conference call on April 18, 2001 at 9:00a.m. CDT
regarding the first quarter earnings. The call may be accessed at (888) 423-
3275 in the United States or (612) 332-0418 Internationally. The conference
call will be available for replay from 12:30 p.m. CDT, April 18, 2001 until
12:00 p.m. CDT, April 25, 2001 at (800) 475-6701 in the United States and (320)
365-3844 Internationally using access code 582787.
This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. This
information is in accordance with the company's current expectations and is
subject to certain risks and uncertainties that could cause actual results to
differ materially from those set forth in the forward-looking statements. With
respect to M.S. Carriers' financial results these uncertainties include, without
limitation, the following: M.S. Carriers will have reasonable success recruiting
and retaining experienced drivers and owner operators at the company's current
compensation level; demand and pricing for the markets served by M.S. Carriers
will remain at current levels; fuel will remain available and without rapid
price fluctuations; and the company's accident experience will remain at
historical levels. With respect to
1
the proposed merger transaction with Swift these uncertainties include, without
limitation, the following: the inability to obtain governmental approvals of the
merger on the proposed terms and schedule; the failure of M.S. Carriers and
Swift stockholders to approve the merger; the risk that the businesses will not
be integrated successfully; the risk that the revenue synergies and costs
savings anticipated from the merger may not be fully realized or may take longer
to realize than expected; the risk that additional insurance and claims reserves
and expenses may be incurred; disruptions from the merger making it more
difficult to maintain relationships with customers, employees or suppliers; and
increased competition and its effects on pricing, spending, third-party
relationships and revenues. Additional factors that could cause results to
differ materially from those described in the forward-looking statements can be
found in the 2000 Annual Report on Form 10-K of M.S. Carriers with the
Securities Exchange Commission.
This press release is being filed with the SEC pursuant to Rule 425 under the
Securities Act of 1933.
2
M.S. CARRIERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
31-Mar-01 31-Dec-00
Assets
Current Assets:
Cash & Cash Equiv. $ 287,532 $ 442,188
Accts Receivable:
Trade, Net 83,785,713 84,547,281
Affiliate 11,007,081
Officers & Employees 1,718,019 1,657,217
-------------- --------------
85,503,732 97,211,579
Recoverable Income Taxes 5,991,776 3,080,972
Deferred Income Taxes 14,078,000 14,113,152
Prepaid Expenses & Other 13,800,525 8,590,836
-------------- --------------
Total Current Assets 119,661,565 123,438,727
Property & Equipment
Land & Land Improvements 13,491,942 13,469,040
Buildings 40,016,991 39,987,066
Revenue Equipment 566,742,379 567,967,605
Service Equipment & Other 56,522,084 56,118,261
Construction in Progress 2,976,729 2,895,443
-------------- --------------
679,750,125 680,437,415
Less Accumulated Depr & Amortization 218,730,253 204,637,683
-------------- --------------
461,019,872 475,799,732
Other Assets 20,961,393 21,213,310
-------------- --------------
Total Assets $ 601,642,830 $ 620,451,769
-------------- --------------
Liabilities & Stockholders' Equity
Current Liabilities:
Accounts Payable:
Trade, Net $ 5,298,319 $ 7,398,017
Affiliate 953,385
Accrued Compensation and Related Costs 7,395,997 4,611,314
Accrued Expenses 15,465,644 13,139,878
Claims Payable 33,752,269 33,842,957
Curr. Maturities of L.T. Debt 61,171,858 65,558,795
-------------- --------------
Total Current Liabilities 124,037,472 124,550,961
Fair Market Value of Interest Rate Swaps 3,039,900
Long-Term Debt, Less Current Maturities 186,743,933 207,816,118
Deferred Income Taxes 70,258,516 69,929,823
Stockholders' Equity:
Common Stock 112,341 111,685
Add. Paid In Capital 61,868,748 60,567,768
Retained Earnings 161,384,911 160,321,332
Notes Receivable from Officers (851,719) (851,719)
Cumulative Other Comprehensive Loss (4,951,272) (1,994,199)
-------------- --------------
Total Stockholders' Equity 217,563,009 218,154,867
Total Liabilities & Stockholders' Equity $ 601,642,830 $ 620,451,769
-------------- --------------
3
M.S. CARRIERS, INC. AND SUBSIDIARIES
STATEMENTS OF INCOME
Three Months Ended
31-Mar
2001 2000
Percent of Percent of
Revenue Revenue
Operating Revenues $182,183,334 $167,068,901
Operating Expenses:
Salaries, wages and benefits 66,182,115 36.33% 53,042,521 31.75%
Operations and maintenance 38,481,921 21.12% 31,511,492 18.86%
Taxes and licenses 3,890,545 2.14% 3,225,958 1.93%
Insurance and claims 8,294,694 4.55% 4,991,473 2.99%
Communications and utilities 2,496,661 1.37% 2,071,188 1.24%
Depreciation and amortization 16,539,574 9.08% 18,208,486 10.90%
Gain on disposal of revenue equipment -139,340 -0.08% -12,934 -0.01%
Rent and purchased transportation 37,440,981 20.55% 42,917,026 25.69%
Other 2,269,418 1.25% 1,247,191 0.75%
------------ ------ ----------- ------
Total Operating Expenses 175,456,569 96.31% 157,202,401 94.09%
------------ ------ ----------- ------
Operating Income 6,726,765 3.69% 9,866,500 5.91%
Other Expense (income):
Interest Expense 4,740,860 2.60% 3,424,101 2.05%
Other 194,637 0.11% -630,361 -0.38%
------------ ------ ----------- ------
4,935,497 2.71% 2,793,740 1.67%
------------ ------ ----------- ------
Income before income taxes 1,791,268 0.98% 7,072,760 4.23%
Income taxes 727,689 0.40% 2,458,472 1.47%
------------ ------ ----------- ------
Net Income $ 1,063,579 0.58% $ 4,614,288 2.76%
Diluted Earnings per share $ 0.09 $ 0.38
Common Shares & Common Share Equivalents 11,732,694 12,189,276
Note: Due to the requirements of FAB 101, for 2001 fuel surcharges are now classified as revenue instead of
offsetting fuel expense in operations and maintenance. For comparability, the statement of income for
2000 has been modified to reflect this change.
4
M.S. CARRIERS, INC. AND SUBSIDIARIES
OPERATING STATISTICS
Three Months Ended
31-Mar
2001 2000
---- ----
Total Miles 140,082,130 123,738,440
Empty Miles 21,267,241 16,645,696
Empty Mile % 15.18% 13.45%
Trucking Revenue $174,019,380 $150,652,616
Revenue per Mile 1.242 1.218
Revenue per Loaded Mile 1.465 1.407
Ending Company Tractors 3,704 3,430
Ending Leased Owner Operators 689 602
Ending Owner Operators 614 685
------------ ------------
Ending Tractors 5,007 4,717
Beginning Company Tractors 3,733 3,283
Beginning Leased Owner 718 562
Operators
Beginning Owner Operators 678 743
------------ ------------
Beginning Tractors 5,129 4,588
Utilization 2,169 2,042
Revenue per Tractor per Week $ 2,695 $ 2,485
5
M.S. CARRIERS, INC. AND SUBSIDIARIES
Product Revenue Statistics
Three Months Ended
31-Mar
01234567890123456789012345678901234567890123456789012345678901234567890123456789
0
Percentage
of
2001 2000 Change
---- ----
Domestic Irregular Route Trucking $ 104,780 $ 92,373 13%
International Irregular Route Trucking 35,570 33,887 5%
Dedicated Route Trucking 33,669 24,393 38%
--------- --------
Trucking Revenue 174,019 150,653 16%
Logistics Revenue - 17,261 100%
Inter Divisional Elimination and Other (1) 8,164 (845) N/A
--------- --------
Total Revenue $ 182,183 $167,069 9%
========= =========
Trucking Operating Ratio 96.3% 93.9% -2.4
points
Logistics Operating Ratio N/A 96.1% N/A
Total Company Operating Ratio 96.3% 94.1% -2.2
points
(1) For 2001, this includes revenues from the lease purchase program and fuel
surcharges. For 2000, this includes intercompany elimination for logistics
revenue and fuel surcharges.