Exhibit 99.2
INVESTOR PRESENTATION MATERIALS, PART II, DATED DECEMBER 4, 2002
POWERPOINT PRESENTATION
SLIDE 1
Transport America - Driving To Exceed Expectations
Investor Overview - December 2002
SLIDE 2
Forward Looking Statement:
This presentation contains discussions of items which may constitute
forward-looking statements within the meaning of federal securities laws.
Although management believes that expectations reflected in such forward-looking
statements are based on reasonable assumptions, it can give no assurances that
its expectations will be achieved. For full details on risk factors, please
refer to the company's filings with the SEC.
SLIDE 3
Company Profile:
Provides wide range of truckload carriage and logistics services in various
lengths of haul in the United States and parts of Canada.
Provides high-quality, customized transportation and logistics services that
allow it to be a preferred partner or core carrier to major shippers.
Serves as an integral part of the distribution system of many of its major
customers.
SLIDE 4
Company Profile:
Provides specialized equipment, such as temperature-controlled trailers,
trailers designed to support decking, multi-stop loading and unloading, and
sophisticated electronic transaction capabilities.
Possesses a sophisticated information management system making it a
technological leader in the industry.
SLIDE 5
Company Profile - Brief History:
Founded in 1984
IPO in 1994
Operating philosophy at inception: High concentration of quality shippers
willing to pay fair price for outstanding customer service
Focus on revenue generation rather than network balance
SLIDE 6
Company Profile - Brief History:
From 1996-2001 revenues grew at a compounded annual growth rate of 10.8%
Jim Aronson, the founder of TCAM, died in December 1999
Mike Paxton, a TCAM Board member since 1995, appointed President, and CEO in
November 2001
SLIDE 7
Major Customers:
Hon Company
3M Company
Toys-R-Us
Federal Express
Ford Motor Company
General Mills
P.P.G. Industries
Polaris Industries
S.C. Johnson & Sons
United Sugars Corp.
Eagle Global Logistics
Dupont Freight Hauled
Ashley Furniture
Arctic Cat
Target Corporation
Wal-Mart/Sam's Club
Anderson Windows
Golden Valley Foods
SLIDE 8
Map of Service Center Locations
SLIDE 9
[PIE CHART]
Freight Hauled:
Dept. Store Mer. 8.6%
Paper 1.0%
Grocery 30.6%
Industrial 13.8%
Express 9.8%
Cont. and Pack. 0.0%
Office & Home 12.5%
Auto 6.9%
Building 4.0%
3rd Party Log. 7.5%
Rec Veh. 4.1%
Misc. 1.4%
-------------
100.00%
=============
SLIDE 10
Current Operating Plan:
Our mission is to exceed the expectations of our three primary constituents:
Our employees, who perform the work - we will provide a work environment that
exceeds their needs and those of their families
Our customers, who trust us with their products - we will supply services that
surpass their expectations and those of their customers
Our shareholders, who entrust their future in us - we will maintain a superior
level of financial performance and strength
SLIDE 11
Current Operating Plan:
We are focusing on three strategic priorities to achieve best of class in our
industry:
Consistent Profitable Growth
Operational Excellence
Organizational Excellence
SLIDE 12
Key Programs:
Consistent Profitable Growth
Primary Focus on building network balance and lane density
Secondary Focus on reducing dependency on highly concentrated customer base
Transport America is leveraging its Transcom System (Oracle-based transportation
management platform) to analyze the profitability of our customers by region and
lane...Strategic Profitability Assessment Program (SPA)
Continued focus on exceptional customer service
SLIDE 13
Key Programs:
Operational Excellence
Initiated Business Process Reengineering programs to improve productivity of
internal processes
Teams comprised of employees at various levels and functional expertise in the
organization
2002 focus on order cycle, customer service and asset utilization
Numerous changes implemented throughout the Company
Introduced three major systems programs to improve driver and fleet efficiency
Image Scanning
Fuel and Route
Driver and Load
SLIDE 14
Key Programs:
Operational Excellence
Implementing plan to streamline Service Center network and to provide
maintenance for Owner/Operators
Converting cost centers to profit centers
Continued focus on strengthening the Balance Sheet
Debt reduction
Working capital improvement
Elimination of goodwill
Sale of under-utilized assets
Re-evaluation of capital spending plan
SLIDE 15
Key Programs:
Organizational Excellence
Added industry depth and experience to Management Team:
Rick Lane, Vice President of Sales and Marketing, hired in May.
Recently Vice President of Sales - National Accounts at Covenant...20+
years of experience
Ron Kipp, Vice President of Operations, hired in October. Recently
Vice President of Specialized Carriers at Schneider...25 years of
experience
Dan Flanagan, Director of Facilities, hired in September.
Recently Director of Maintenance at M.S. Carriers...10+ years of
experience
SLIDE 16
Key Programs:
Organizational Excellence
Reorganizing Fleet Management team to focus on "driver ownership"
Introduced company-wide incentive plan based on EBT goal
Introduced MBO & Performance Review program based on annual plan objectives
SLIDE 17
[BAR CHART]
Customer Paid Miles
millions
Q1 Q2 Q3
2002 45.5 47.0 46.8
2001 42.1 44.6 46.0
SLIDE 18
[BAR CHART]
Number of Power Units at Year-End
Company Owned Owner Operator
1985 211 60
1986 242 87
1987 424 96
1988 570 85
1989 654 76
1990 662 73
1991 646 100
1992 633 155
1993 666 216
1994 677 303
1995 779 415
1996 775 445
1997 891 448
1998 1078 922
1999 1256 811
2000 1286 743
2001 1306 746
Sept 2002 1132 821
SLIDE 19
Revenue per Tractor / Week
[BAR CHART]
2002 2001
---- ----
Q1 $2,594 $2,492
Q2 $2,689 $2,529
Q3 $2,746 $2,690
SLIDE 20
Empty Miles Percent
[LINE GRAPH]
2002 2001
---- ----
January 13.20% 13.40%
February 12.40% 12.50%
March 12.50% 12.10%
April 12.20% 12.60%
May 11.90% 12.90%
June 11.30% 12.30%
July 11.80% 13.00%
August 11.20% 12.30%
September 10.80% 12.10%
SLIDE 21
Annualized trailing twelve month's revenue per non-driver
[BAR CHART]
000's
Q1 01 Q2 01 Q3 01 Q4 01 Q1 02 Q2 02 Q3 02
539.67 540.17 545.08 555.38 569.71 578.71 584.58
SLIDE 22
Debt Reduction
[BAR CHART]
$ millions
Mar-00 Jun-00 Sep-00 Dec-00 Mar-01 Jun-01 Sep-01 Dec-01 Mar-02 Jun-02 Sep-02
146.00 140.70 128.10 118.50 112.30 106.30 99.60 92.40 85.00 80.00 75.80
Term Debt, capital leases, and credit facility
SLIDE 23
Highlights
Year-to-date revenue performance includes recovery of over $16 million in lost
Sears business
5.5% of 2002 revenues generated from new customers
Revenue/tractor/week is approaching our peak efforts in 1997
Monthly empty miles percentage in September was below 10.8%
Revenue per non-driver employee has increased 7% since 2000 and ranks well above
peer average
Service levels at 98 - 99% on-time performance for total customer base
SLIDE 24
Highlights
Five prestigious awards received by TCAM in the last six months:
Best Buy - Quality Partnership Award
FedEx - Carrier of the Year
FedEx - Outstanding Performance
SC Johnson - Southeast Carrier of the Year for 2001
United Sugar - Carrier of the Year for 2001 - 2002
SLIDE 25
2002 2002 Change vs. 2001
3rd Quarter Y-T-D 3rd Quarter Y-T-D
Linehaul Revenues $63.5m $189.8m 0.10% 3.40%
(excluding assessorial & fuel
surcharge)
Revenue per Total Mile $1.25 $1.24 (1.2%) (2.0%)
(excluding fuel
surcharge)
Operating Ratio* 97.30% 97.70% (100 bps) (50 bps)
Loaded Miles Driven 46.8m 139.4m 1.50% 5.00%
Empty Miles % 11.30% 11.90% 110 bps 70 bps
Revenue / Tractor / Week $2,746 $2,675 2.10% 5.70%
Revenue / Non-driver
employee $604,620 $587,206 4.00% 7.00%
* Excluding impairment charges
SLIDE 26
Performance:
Debt and Capital Lease Obligations at September 30, 2002 at $75.8 million...48%
reduction since March 2000:
Market Dynamics:
Shares outstanding (@9/30/02) 7.26 million
Market Capitalization (@ 11/26/02) $35.5 million
Average Volume 3,000
Key Ratios:
Share Price (@ 11/26/02) $4.90
Book Value / Share (@ 9/30/02) $8.50
EBITDA / Share (ttm @ 9/30/02)* $4.74
Debt / Equity 1.3x
* Excluding impairment charge
SLIDE 27
Summary:
Strong management team in place
Business fundamentals improving
Significant balance sheet improvement
Excellent cash generation
Well positioned for 2003
SLIDE 28
Transport America - Driving To Exceed Expectations
Investor Overview - December 2002