Exhibit 99.1
Transport Corporation of America Reports Third Quarter Results
MINNEAPOLIS, Oct. 16 /PRNewswire-FirstCall/ -- Transport Corporation of
America, Inc. (Nasdaq: TCAM), today announced revenues for the third quarter
2003 of $64.1 million, compared with 2002 third quarter revenues of $69.0
million. Third quarter's net income before cumulative effect of a change in
accounting principle was $1.0 million or $0.15 per diluted share, compared
with 2002 third quarter net income of $0.3 million, or $0.03 per diluted
share. The third quarter 2003 results include a pretax gain of $1.3 million
($0.8 million after taxes, or $0.11 per diluted share), related to the
previously announced sale of the Company's Clarksville maintenance facility.
During the third quarter 2003, the Company adopted the provisions the
Financial Accounting Standards Board's Interpretation No. 46, "Consolidation
of Variable Interest Entities," as it relates to the Company's leased
corporate office facility. Accordingly, the Company recorded an asset of
$11.2 million and the related debt of $13.0 million. The Company also
recorded a charge for cumulative effect of a change in accounting principle of
$1.1 million, net of a $0.7 million tax benefit, as part of the initial
adoption of this Interpretation. Including the cumulative-effect adjustment,
the Company reported a net loss of $46,000, or $0.01 per diluted share, for
the third quarter 2003.
Michael Paxton, Chairman, President and Chief Executive Officer,
commented, "Our efforts to drive productivity and network balance have begun
to translate into improved financial performance. We reduced our deadhead
percentage again this quarter, achieving 10.4 percent during the third quarter
compared to 11.3 percent in 2002. Our administrative productivity improved,
with our revenue per non-driver employee increasing by 4.7 percent in the
third quarter over the previous year. In addition, our revenue per loaded
mile improved for the third consecutive quarter and exceeded the same quarter
of the previous year for the first time since the second quarter of 2001. We
ended the third quarter with total debt of $65 million, including the $13
million in debt relating to the corporate office building, which was recorded
during the third quarter. This increase in debt was partially offset by $8
million in other debt reduction during the quarter, continuing our efforts
over the last three years. Additionally, we added several important new
customers during the quarter, building freight opportunities in our core
markets."
Transport America also announced that it has signed an agreement to sell
its corporate office building and lease back approximately two-thirds of the
building that it currently occupies. The agreement is contingent on the buyer
completing due diligence and securing financing for the transaction and is
expected to close late in 2003 or early in 2004. The Company expects
proceeds, net of commissions and other closing costs, of approximately $11.5
million. Concurrent with closing, the Company expects to sign a 13-year lease
with annual base rent of approximately $1 million for the first year.
Year-To-Date Results
For the nine-month period ended September 30, 2003, Transport America
announced revenues of $196.8 million, compared with 2002 year-to-date revenues
of $204.1 million. Net loss before cumulative effect of a change in
accounting principle for the nine-month period was $0.2 million, or $0.03 per
diluted share, compared with a 2002 net loss before cumulative effect of a
change in accounting principle of $2.4 million, or $0.33 per diluted share.
Results in 2003 include a non-cash benefit of $0.2 million after taxes, or
$0.02 per share, for a change in estimate related to the impairment of revenue
equipment recorded in 2002 and a gain of $0.8 million after taxes, or $0.11
per share, relating to the sale of its Clarksville maintenance facility.
Results in 2002 include a non-cash asset impairment charge of $2.5 million
after taxes, or $0.35 per share, for asset impairment charges related to plans
to dispose of approximately 260 tractors without guaranteed residual values
and 500 trailers in excess of the Company's needs.
Net loss, including the cumulative effect of changes in accounting
principles, for the nine-month period ended September 30, 2003 was $1.4
million, or $0.20 per share, compared to $19.1 million, or $2.63 per share, in
2002. Results in 2003 include a non-cash charge of $1.1 million after taxes,
or $0.15 per share, for a change in accounting principle relating to its
corporate office building and a non-cash charge of $0.1 million after taxes,
or $0.01 per share, for a change in accounting principle relating to
environmental disposal costs on tires. Results in 2002 also include a non-
cash goodwill impairment charge of $16.7 million after taxes, or $2.30 per
share.
Outlook
Looking ahead, Paxton commented, "We have made significant improvement
during the third quarter and expect that trend to continue going forward.
Freight demand has strengthened, and our sales organization is successfully
securing new opportunities that drive density and balance in our network.
Freight rates continue to increase in most markets, and we will continue to
aggressively pursue rate increases. In addition, our cost reduction efforts
continue to make Transport America more competitive, and we expect to
implement new cost-savings initiatives in the fourth quarter. Our biggest
challenge right now is seated capacity. With soft freight in the second
quarter, we experienced an increase in driver turnover. In addition, the
market for new drivers has tightened significantly. We have implemented
several programs to boost our recruiting efforts and increase our seated fleet
percentage. Overall, we are pleased with the progress we have made and expect
continued improvement into 2004."
The Company will host a conference call and webcast on Monday, October 20,
2003 at 10:00 a.m. Central Time. The Internet broadcast can be accessed at
the Company's website, www.transportamerica.com , or at
www.companyboardroom.com .
About Transport America
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 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) the highly competitive
conditions that currently exist in the Company's market and the Company's
ability to compete, (2) the Company's ability to recruit, train, and retain
qualified drivers, (3) increases in fuel prices, and the Company's ability to
recover these costs from its customers, (4) the impact of environmental
standards and regulations on new revenue equipment, (5)changes in governmental
regulations applicable to the Company's operations, (6) adverse weather
conditions, (7) accidents, (8) the financing and resale market for used
revenue equipment, (9) changes in interest rates, (10) cost of liability
insurance coverage, and (11) 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.
Financial Tables to Follow.
TRANSPORT CORPORATION OF AMERICA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three and Nine Months ended September 30, 2003 and 2002
(In thousands, except share and per share amounts)
Three Months Nine Months
(Unaudited) (Unaudited)
2003 2002 2003 2002
Amount % Amount % Amount % Amount %
Operating
revenues $64,069 100.0 $69,002 100.0 $196,808 100.0 $204,054 100.0
Operating
expenses:
Salaries,
wages,
and
benefits 17,019 26.6 19,574 28.4 53,965 27.4 60,232 29.5
Fuel,
maintenance,
and other
expense 9,524 14.9 9,639 14.0 30,057 15.3 28,749 14.1
Purchased
transport-
ation 22,914 35.8 24,310 35.2 70,452 35.8 67,987 33.3
Revenue
equipment
leases 274 0.4 251 0.4 797 0.4 582 0.3
Depreciation
and amorti-
zation 6,342 9.9 6,760 9.8 18,967 9.6 20,870 10.2
Insurance,
claims,
and
damage 2,430 3.8 2,527 3.7 8,827 4.5 8,622 4.2
Taxes and
licenses 1,118 1.7 1,188 1.7 3,433 1.7 3,774 1.8
Communication 565 0.9 634 0.9 1,661 0.8 2,013 1.0
Other general
and
administrative
expenses 2,271 3.5 2,294 3.3 7,341 3.7 6,567 3.2
Impairment of
revenue
equipment 0 0.0 0 0.0 (278) (0.1) 4,741 2.3
Gain on
disposition
of property
and
equipment (1,321) (2.1) (14) (0.0) (1,317) (0.7) (22) (0.0)
Total
operating
ex-
penses 61,136 95.4 67,163 97.3 193,905 98.5 204,115 100.0
Operating
income
(loss) 2,933 4.6 1,839 2.7 2,903 1.5 (61) (0.0)
Interest
expense,
net 1,079 1.7 1,306 1.9 3,199 1.6 4,228 2.1
Earnings
(loss)
before
income
taxes 1,854 2.9 533 0.8 (296) (0.2) (4,289) (2.1)
Income tax
provision
(benefit) 811 1.3 279 0.4 (48) (0.0) (1,928) (0.9)
Earnings
(loss)
before
cumulative
effect of
change in
accounting
principle
1,043 1.6 254 0.4 (248) (0.1) (2,361) (1.2)
Cumulative
effect of
change in
accounting
principle,
net of tax
effect
(1,089) (1.7) 0 0.0 (1,153) (0.6) (16,694) (8.2)
Net earnings
(loss) $(46) (0.1) $254 0.4 $(1,401) (0.7) $(19,055) (9.3)
Earnings
(loss) per
common share
- basic
Before
cumulative
effect of
change
in accounting
principles $0.15 $0.04 $(0.03) $(0.33)
Net earnings
(loss) per
share $(0.01) $0.04 $(0.20) $(2.63)
Earnings
(loss) per
common share
- diluted
Before
cumulative
effect of
change in
accounting
principles $0.15 $0.03 $(0.03) $(0.33)
Net earnings
(loss) per
share
$(0.01) $0.03 $(0.20) $(2.63)
Average common
shares outstanding
Basic 7,141,730 7,256,152 7,181,356 7,244,934
Diluted 7,175,792 7,285,709 7,181,356 7,244,934
TRANSPORT CORPORATION OF AMERICA, INC.
BALANCE SHEET
September 30, 2003 and 2002
(In Thousands)
Unaudited
ASSETS
2003 2002
Current Assets:
Cash and cash equivalents $124 $578
Trade receivables, net of allowances 26,966 30,333
Other receivables 1,924 2,822
Operating supplies 849 1,117
Deferred income taxes 5,537 4,057
Prepaid expenses 2,908 2,805
Total Current Assets 38,308 41,712
Revenue Equipment, At Cost 189,307 204,163
Less: accumulated depreciation (82,995) (85,116)
Revenue Equipment, Net 106,312 119,047
Property and Other Equipment:
Land, buildings, and improvements 28,789 17,624
Other equipment and leasehold
improvements 23,324 24,100
Less: accumulated depreciation (19,067) (16,396)
Property and Other Equipment, Net 33,046 25,328
Revenue, Property and Other
Equipment, Net 139,358 144,375
Other Assets, Net 2,229 2,736
Total Assets $179,895 $188,823
LIABILITIES AND STOCKHOLDERS' EQUITY
2003 2002
Current Liabilities:
Current maturities of Long Term Debt $22,359 $15,989
Current maturities of Capital Lease
Obligations 4,147 5,821
Accounts payable 6,420 5,821
Checks issued in excess of cash
balances 3,107 794
Due to independent contractors 2,587 2,433
Accrued expenses 19,237 15,663
Total Current Liabilities 57,857 46,521
Long-Term Debt & Capital Lease Obligations
Long-term debt less current maturities 24,467 35,749
Capital lease obligations less
current maturities 14,049 18,267
Total Long-Term Debt
& Capital Lease Obligations 38,516 54,016
Deferred Income Taxes 25,143 26,597
Shareholders' Equity:
Common stock 72 72
Additional paid-in capital 29,888 30,502
Retained earnings 28,419 31,115
Total Shareholders' Equity 58,379 61,689
Total Liabilities and Equity $179,895 $188,823
TRANSPORT CORPORATION OF AMERICA, INC.
Selected Consolidated Financial and Operating Data
Three and Nine Months Ended September 30, 2003 and 2002
Three Months Nine Months
2003 2002 2003 2002
Operating Statistics
Company tractors, seated 823 971 823 971
Company tractors, other 212 146 212 146
Independent contractor, seated 775 804 775 804
Total tractors (at end of
period) 1,810 1,921 1,810 1,921
Trailers (at end of period) 5,109 5,624 5,109 5,624
Average total tractors in
service 1,657 1,790 1,749 1,844
Total loaded miles (000's) 43,041 46,621 132,935 139,053
Total miles (000's) 48,027 52,535 148,228 157,864
Trucking revenue per tractor per
week* $2,725 $2,746 $2,687 $2,675
Trucking revenues per loaded mile* $1.417 $1.410 $1.401 $1.415
Trucking revenues per mile* $1.270 $1.252 $1.257 $1.247
Average empty mile percentage 10.4% 11.3% 10.3% 11.9%
Average length of haul, all miles 714 715 725 709
Average annual revenues per non-
driver employee (000's) $633 $605 $635 $587
Financial Data (000's)
Trucking revenue $61,006 $65,749 $186,290 $196,788
Fuel surcharge revenue 2,302 1,492 8,466 2,924
Logistics 761 1,761 2,052 4,342
Total revenue $64,069 $69,002 $196,808 $204,054
Capital expenditures, net of
proceeds $6,566 $6,110 $6,952 $3,636
Total debt and capital lease
obligations $65,022 $75,826 $65,022 $75,826
* Excluding fuel surcharge
SOURCE Transport Corporation of America, Inc.
-0- 10/16/2003
/CONTACT: Michael Paxton, Chairman, President and CEO, +1-651-686-2500,
and Keith Klein, Chief Financial Officer, +1-651-686-2500, both of Transport
Corporation of America, Inc./
/Web site: http://www.transportamerica.com /
(TCAM)
CO: Transport Corporation of America, Inc.
ST: Minnesota
IN: TRN
SU: ERN