UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
or
[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________________to ___
Commission file number 0-23210
TRISM, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 13-3491658
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4174 Jiles Road, Kennesaw, Georgia 30144
(Address of principal executive offices) (Zip
Code)
770-795-4600
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing
requirements for the past 90 days
___ Yes X No
As of July 31, 1997, 5,737,337 shares of TRISM, INC.'s
common stock, par value $.01 per common share were
outstanding.
TRISM, INC.
TABLE OF CONTENTS
Part I FINANCIAL INFORMATION Page
Item 1. Financial Statements 1
Item 2. Management's Discussion and Analysis 5
of Financial Condition and Results
of Operations
Part II OTHER INFORMATION
Item 1. Legal Proceedings 10
Item 4. Submission of Matters to a Vote of
Security Holders 11
Item 6. Exhibits and Reports on Form 8-K 11
-i-
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
TRISM, INC.
Consolidated Balance Sheets
(In Thousands)
(Unaudited)
June 30, December 31,
1997 1996
ASSETS
Current assets:
Cash and cash equivalents $ 7,330 1,468
Restricted and insurance deposits 947 1,188
Accounts receivable, net 50,322 57,503
Materials and supplies 1,641 2,450
Prepaid expenses 19,485 18,711
Current portion of deferred income 5,823 5,139
taxes
Total current assets 85,548 86,459
Property and equipment, net 112,970 123,052
Other assets 21,976 22,986
Total assets $ 220,494 232,497
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 10,966 10,791
Checks issued in excess of bank 4,754 4,567
balance
Claims and insurance accruals 6,916 6,012
Accrued expenses and other 8,771 6,551
Note payable to J.B. Hunt -- 2,500
Current maturities of long-term debt 12,518 11,845
Total current liabilities 43,925 42,266
Long-term debt, less current maturities 138,595 148,878
Claims, insurance accruals and other 6,108 6,443
Deferred income taxes 5,625 6,160
Total liabilities 194,253 203,747
Stockholders' equity
Common stock; $.01 par; 10,000,000 shares
authorized; 5,903,337 shares issued at
June 30, 1997, and December 31, 1996 59 59
Additional paid-in capital 37,327 37,327
Loans to stockholders (368) (368)
Accumulated deficit (9,228) (6,719)
Treasury stock, at cost, 166,000 shares
at June 30, 1997 and December 31, 1996 (1,549) (1,549)
Total stockholders' equity 26,241 28,750
Total liabilities and $220,494 232,497
stockholders'equity
See accompanying notes to the consolidated financial
statements.
TRISM, INC.
Consolidated Statements of Operations
(In Thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
1997 1996 1997 1996
Revenues $81,340 79,228 159,073 152,268
Operating expenses:
Salaries, wages and fringe 28,706 28,701 57,045 56,082
benefits
Purchased transportation 15,343 13,915 30,063 27,831
Operating supplies and
expenses 11,684 11,965 23,768 23,098
Operating taxes and licenses 7,120 7,298 14,177 14,283
Depreciation and amortization 4,732 5,272 9,532 10,611
General supplies and expenses 4,205 4,442 8,549 8,640
Claims and insurance 2,953 2,524 5,815 4,878
Communications and utilities 1,265 1,484 2,660 3,047
Loss (Gain) on sale of
equipment 214 55 397 (25)
Restructuring charge 0 0 3,000 0
Total operating expenses 76,222 75,656 155,006 148,445
Income from operations 5,118 3,572 4,067 3,823
Interest expense and other, net 3,739 3,394 7,554 7,202
Income (loss) before income
tax expense (benefit) 1,379 178 (3,487) (3,379)
Income tax expense (benefit) 482 (329) (978) (1,688)
Net earnings (loss) $ 897 507 (2,509) (1,691)
Earnings (loss) per common $ .16 .09 (.44) .29
share
See accompanying notes to the consolidated financial
statements.
TRISM, INC.
Consolidated Statements of Cash Flows
(In Thousands)
(Unaudited)
Six Months Ended
June 30,
1997 1996
Cash flows from operating activities:
Net loss $(2,509) $(1,691)
Adjustments to reconcile net loss to
net cash provided by (used in)
operating activities:
Depreciation and amortization 9,866 10,924
Restructuring charge, net 1,675 -
Loss (gain) on sale of assets 397 (25)
Income tax benefit (978) (1,688)
Provision for uncollectible receivables 645 398
Changes in:
Accounts receivable 6,536 (10,337)
Prepaid expenses (774) (2,538)
Accounts payable 175 2,741
Claims and insurance accruals 569 (240)
Accrued liabilities 545 1,062
Other 516 (664)
Net cash provided by (used in) 16,663 (2,058)
operating activities
Cash flows from investing activities:
Refund of restricted deposits 241 130
Proceeds from sale of property and 2,648 2,709
equipment
Purchases of property and equipment (2,014) (11,015)
Collection (issuance) of notes 514 (824)
receivable
Net cash provided by (used in) 1,389 (9,000)
investing activities
Cash flows from financing activities:
Net (repayment) proceeds under (11,417) 9,242
revolving credit agreement
Repayment of long-term debt (8,574) (4,817)
Proceeds from issuance of long-term 7,881 6,632
debt
Payment of deferred loan costs (80) -
Net cash (used in) provided by (12,190) 11,057
financing activities
Increase (decrease) in cash and cash
equivalents 5,862 (1)
Cash and cash equivalents, beginning of 1,468 643
period
Cash and cash equivalents, end of $ 7,330 $ 642
period
Supplemental cash flow information:
Cash paid during the period for:
Interest (net of $315,000 capitalized $ 7,420 $ 6,857
in 1996)
Income tax payments $ 57 $ 51
See accompanying notes to the consolidated
financial statements.
TRISM, INC.
Notes to Consolidated Financial Statements
(Unaudited)
1. Accounting Policies
The 1996 Annual Report on Form 10-K for TRISM, Inc. includes a
summary of significant accounting policies and should be read
in conjunction with this Form 10-Q. The statements for the
periods presented are condensed and do not contain all
information required by generally accepted accounting
principles to be included in a full set of financial
statements. In the opinion of management, all adjustments
(consisting of only normal recurring adjustments) necessary to
present fairly the financial position as of June 30, 1997 and
December 31, 1996 and the results of operations and cash flows
for the periods ended June 30, 1997 and 1996, respectively
have been included. The results of operations for any interim
period are not necessarily indicative of the results of
operations to be expected for the entire year.
2. Accounting Pronouncements
In February 1997, the Financial Accounting Standards Board
issued SFAS No. 128, Earnings per Share (SFAS No. 128), which
the Company is required to adopt in 1997. SFAS No. 128
specifies the computation, presentation and disclosure
requirements for earnings per share in order to be
substantially similar to International Accounting Standards.
The adoption of SFAS No. 128 is not expected to have a
material impact on the Company's earnings per share or other
per share disclosures.
3. Corporate Restructuring
In February 1997, the Company announced an organizational
restructuring to consolidate certain sales, operations, and
administrative functions and reengineer business processes to
reduce overhead and increase operational efficiency. During
the first quarter of 1997, the Company recorded a $3 million
restructuring charge for the estimated costs associated with
the termination of certain employees of $1.5 million, the
closing of unproductive facilities of approximately $0.6
million and the remainder for outside consultant and other
costs. As of June 30, 1997, restructuring expenses of $1.3
million reduced the original provision.
4. Long-Term Debt
In December 1996, the Company temporarily increased the maximum amount
of its revolving credit facility to $25 million (Facility)
The Facility provides for the issuance of standby letters of
credit which reduce the availability of cash advances and
amounted to approximately $9.0 million as of June 30, 1997.
On July 15, 1997, the Company refinanced its Facility with a
$45.0 million credit line (Revolver). The proceeds of the
Revolver were used to retire the Facility loan and are
available for the Company's working capital needs. The
Revolver matures July 15, 2000 and contains provisions for a
letter of credit subline of $15 million, bears interest at the
Prime rate plus .25% or LIBOR plus 2.25%, and is secured by
accounts receivable. The Revolver also includes certain
covenants applicable once availability under the Revolver
falls below certain levels.
5. Contingencies
Under CERCLA and similar state laws, a transporter of
hazardous substances may be liable for the costs of responding
to the release or threatened release of hazardous substances
from disposal sites if such transporter selected the site for
disposal. Because it is the Company's practice not to select
the sites where hazardous substances and wastes will be
disposed, the Company does not believe it will be subject to
material liability under CERCLA and similar laws. Although
the Company has been identified as a "potentially responsible
party" (PRP), solely because of its activities as a
transporter of hazardous substances, at two sites, the Company
does not believe it will be subject to material liabilities at
such sites.
The Company is a party to certain legal proceedings incidental
to its business, primarily involving claims for personal
injury or property damage arising from the transportation of
freight. The Company does not believe that these legal
proceedings, or any other claims or threatened claims of which
it is aware, are likely to materially and adversely affect the
Company's financial condition. With regard to personal
injury, property damage, workers' compensation claims, and
cargo claims, the Company is and has been covered by
insurance. Such matters may include claims for punitive
damages. It is an open question in some jurisdictions in
which the Company does business as to whether or not punitive
damages awards are covered by insurance.
The Company is a defendant in one additional litigation
pending in the Circuit Court of Jefferson County, Alabama.
The case is captioned Roy A. Reese v. Trism Specialized
Carriers, Inc. and Tri-State Motor Transit Co. It arises from
a lease and consulting agreement between the Company and
plaintiff (Mr. Reese and his wholly owned corporation) dated
August 24, 1992. Plaintiff alleges breach of contract,
promissory fraud, conversion and conspiracy claims arising
from the Company's termination of the contract. He seeks
compensatory and punitive damages. The Company maintains that
it properly terminated the contract because of
misrepresentations and non-performance by plaintiff and his
company, and has asserted certain counterclaims. The case was
tried in August 1996 and plaintiff was awarded $47,000 in
rental fees admitted by TRISM to be due for the use of
plaintiff's trailer equipment after cancellation of the
original contract. All other claims for damages were found in
favor of the defendant (TRISM).
Plaintiff appealed to the Court of Civil Appeals of Alabama
and, on July 11, 1997, that court reversed the lower court
ruling and remanded the case for a new trial. Trism has filed
an Application for Rehearing, and is prepared to appeal to the
Alabama Supreme Court to protect the original jury verdict.
The Company believes that it will again prevail should a
second trial become necessary.
In addition to matters referred to above, the Company is a party
to certain additional lawsuits, none of which is believed to
involve a significant risk of materially and adversely
affecting the Company's financial condition.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
The Private Securities Litigation Reform Act of 1995 provides
a "safe harbor" for forward looking statements. Certain
statements in this Form 10-Q include information that is
forward looking, such as the Company's opportunities to reduce
overhead costs and increase operational efficiency, its
anticipated liquidity and capital requirements and the results
of legal proceedings. The matters referred to in forward
looking statements could be affected by the risks and
uncertainties involved in the Company's business. Subsequent
written and oral forward looking statements attributable to
the Company or persons acting on its behalf are expressly
qualified in their entirety by the cautionary statements in
this paragraph. The following discussion and analysis should
be read in conjunction with the Company's Consolidated
Financial Statements and notes for the year ended December 31,
1996 and period ended June 30, 1996.
Results of Operations
The following table sets forth the percentage change between
periods of certain revenue and expense items.
Three Months Ended Six Months Ended
June 30 June 30
Percentage of
Revenue Basis: 1997 1996 Variance 1997 1996 Variance
Revenue 100% 100% - 100% 100% -
Operating
Expenses:
Salaries, wages and
fringe benefits 35.2% 36.1% 0.9% 35.7% 36.7% 1.0%
Purchased
transportation 18.9% 17.6% (1.3%) 18.9% 18.3% (0.6%)
Operating supplies
and expenses 14.4% 15.1% 0.7% 14.9% 15.2% 0.3%
Operating taxes
and licenses 8.8% 9.2% 0.4% 8.9% 9.4% 0.5%
Depreciation and
amortization 5.8% 6.7% 0.9% 6.0% 7.0% 1.0%
General supplies
and expenses 5.2% 5.6% 0.4% 5.4% 5.7% 0.3%
Claims and 3.6% 3.2% (0.4%) 3.7% 3.2% (0.5)%
insurance
Communication
and utilities 1.6% 1.9% 0.3% 1.7% 2.0% 0.3%
Loss (gain) on
sale of assets 0.2% 0.1% (0.1%) 0.3% - (0.3%)
Restructuring
charge - - - 1.9% - (1.9%)
Total
Operating
Expenses 93.7% 95.5% 1.8% 97.4% 97.5% 0.1%
Income from 6.3% 4.5% 1.8% 2.6% 2.5% 0.1%
operations
Interest and
other, net 4.6% 4.3% (0.3%) 4.8% 4.7% (0.1%)
Income tax expense
(benefit) 0.6% (0.4%) (1.0%) (0.6%) (1.1%) (0.5%)
Net earnings
(loss) 1.1% 0.6% 0.5% (1.6%) (1.1%) (0.5%)
Operating Revenue
Operating revenues increased $2.1 million, or 2.7%, from the
second quarter 1996 to 1997 and $6.8 million, or 4.5% from the
six month period ended 1996 to 1997. The loaded mile ratio
improved .2% from 1996 to comparable periods in 1997 and the
loaded rate per mile improved $.04 and $.06 from the second
quarter 1996 and six month period ended June 1996, respectively.
Operating revenue between periods includes the following (000's):
Quarter Ended June 30 Six Months Ended June 30
1997 1996 1997 1996
Market
Heavy Haul $49,161 47,608 92,926 92,187
Secured 28,324 23,806 54,234 46,923
Transport 4,175 8,895 11,529 16,637
Logistics 2,665 1,669 5,840 2,903
Elimination's and
Other (2,985) (2,750 (5,456) (6,382)
$81,340 79,228 159,073 152,268
Operating Income
Operating income for the 1997 second quarter increased 43.3%
over 1996 and 6.4% for the six months ended June 1997 compared
to 1996. The quarterly operating expense ratio improved 1.8%
from the second quarter 1996. The six month operating expense
ratio decreased by 2.0% excluding the $3 million restructuring
charge in the first quarter of 1997.
The improved operating results in 1997 for the Company were
primarily driven by the improved performance at Secured offset
by lower results at Transport and the restructuring charge.
The improvement at Secured is primarily due to improved
conditions in the munitions market, implementation of a
commercial explosives market initiative and improved pricing in
the environmental services market as a result of the 1996
acquisition of the special commodities division of J.B. Hunt
Transport, Inc.
Transport operating income continues to decline due to a
shutdown of its western division and a voluntary 28% decrease in
tractors. The Company is continuing its efforts to remove
itself from this market and the administrative and operations
functions were consolidated into Heavy Haul in April 1997.
1997 operating income results for all other markets are
materially consistent with 1996 results.
Operating income between periods includes the following (000's):
Quarter Ended June 30 Six Months Ended June 30
1997 1996 1997 1996
Market
Heavy Haul $3,786 3,865 5,845 5,183
Secured 3,057 643 5,004 840
Transport (705) (9) (1,451) (500)
Logistics 88 10 200 (58)
Restructuring charge 0 0 (3,000) 0
Elimination's and
Other (1,108) (937) (2,531) (1,642)
$5,118 3,572 4,067 3,823
Operating and Other Expenses
Salaries, wages and fringe benefits dropped .9% and 1% of revenue
from the quarter and six month period ended June 1996 to the
corresponding periods in 1997. The improvement resulted from a
$.4 million and $.6 million reduction in non-driver compensation
for the 1997 quarter and six month period and leveraging these
costs over a larger revenue base.
Purchased transportation increased 1.3% and .6% of revenue for
the quarter and six month period ended June 30, 1997 and 1996,
respectively, as a result of increased brokerage expenses of .5%
of revenue. In addition, operating lease expense increased in
1997 as a result of financing new and replacement tractors and
trailers with operating leases in 1996. The foregoing increase
in operating lease expense is partially offset by a favorable
reduction in depreciation expense over the same time periods.
Operating supplies decreased .7% and .3% of revenue from the
quarter and six month period ended 1996 to 1997, respectively.
The reduction in operating supplies for the 1997 quarter is
attributed to an improvement in fleet fuel efficiency of 5.58
miles per gallon in 1996 as compared to 5.68 miles per gallon in
1997 as well as a reduction in the per gallon cost of fuel of
$1.20 in 1996 as compared to $1.14 in 1997. The favorable
results in the 1997 second quarter offset unfavorable fuel trends
experienced in the first quarter.
In February 1997, the Company announced an organizational
restructuring to consolidate certain sales, operations and
administrative functions. During the first quarter of 1997, the
Company recorded a $3 million restructuring charge for the
estimated costs associated with the termination of certain
employees, engagement of an outside consultant and the closing of
unproductive facilities. As of June 30, 1997, restructuring
expenses of $1.3 million reduced the original provision.
Interest expense is consistent in the 1996 and 1997 time periods
due to similar debt levels and terms.
The effective income tax rates for the second quarter and six
months ended June 30, 1997, of approximately 35% and 28%,
respectively, decreased from the corresponding periods in 1996
due to the effect of non-deductible items and projected operating
results for the remainder of the year.
Liquidity and Capital Resources
Net cash provided by operating activities increased by $18.7
million in the six months ended June 1997 as compared to 1996.
This increase is primarily due to improved income from operations
and a decrease in accounts receivable created by an improvement
in the collection period.
In 1997 the Company repaid scheduled debt obligations of $8.6
million and reduced borrowings under the revolving credit
facility by $11.4 million. The Company received proceeds of $7.9
million under certain sale-leaseback arrangements which were used
to refinance certain outstanding indebtedness.
The Company estimates 1997 capital expenditures of approximately
$22 million primarily related to the replacement of tractors and
trailers. Proceeds from the sale of the replaced equipment is
expected to approximate $4.3 million. The Company has financing
commitments for all of its anticipated capitalized expenditures.
The Company believes that it will be able to meet its on-going
capital requirements, scheduled principal payments and working
capital needs with cash flow from operations, availability under
its working capital facility, proceeds from the sale of equipment
and additional borrowing commitments. The Company also has
additional borrowing capacity supported by unencumbered tangible
assets.
In December 1996, the Company temporarily increased the maximum
amount of its revolving credit facility to $25 million
(Facility). The Facility provides for the issuance of standby
letters of credit which reduce the availability of cash advances
and amounted to approximately $9.0 million as of June 30, 1997.
On July 15, 1997, the Company refinanced its Facility with a $45.0
million credit line (Revolver). The proceeds of the Revolver
were used to retire the Facility loan and are available for the
Company's working capital needs. The Revolver matures July 15,
2000 and contains provisions for a letter of credit subline of
$15 million, bears interest at the Prime rate plus .25% or LIBOR
plus 2.25%, and is secured by accounts receivable. The Revolver
also includes certain covenants applicable once availability
under the Revolver falls below certain levels.
Accounting Pronouncements
In August 1997, the Financial Accounting Standards Board issued
SFAS No. 128, Earnings per Share (SFAS No. 128), which the
Company is required to adopt in 1997. SFAS No. 128 specifies
the computation, presentation and disclosure requirements for
earnings per share in order to be substantially similar to
International Accounting Standards. The adoption of SFAS No.
128 is not expected to have a material impact on the Company's
earnings per share or other per share disclosures.
Inflation and Fuel Costs
Inflation can be expected to have an impact on the Company's
earnings; however, the effect of inflation has been minimal over
the past three years. An extended period of inflation or
increase in fuel costs would adversely affect the Company's
results of operations without a corresponding freight rate
increase from customers.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Under CERCLA and similar state laws, a transporter of
hazardous substances may be liable for the costs of responding
to the release or threatened release of hazardous substances
from disposal sites if such transporter selected the site for
disposal. Because it is the Company's practice not to select
the sites where hazardous substances and wastes will be
disposed, the Company does not believe it will be subject to
material liability under CERCLA and similar laws. Although
the Company has been identified as a "potentially responsible
party" (PRP), solely because of its activities as a
transporter of hazardous substances, at two sites, the Company
does not believe it will be subject to material liabilities at
such sites.
The Company is a party to certain legal proceedings incidental
to its business, primarily involving claims for personal
injury or property damage arising from the transportation of
freight. The Company does not believe that these legal
proceedings, or any other claims or threatened claims of which
it is aware, are likely to materially and adversely affect the
Company's financial condition. With regard to personal
injury, property damage, workers' compensation claims, and
cargo claims, the Company is and has been covered by
insurance. Such matters may include claims for punitive
damages. It is an open question in some jurisdictions in
which the Company does business as to whether or not punitive
damages awards are covered by insurance.
The Company is a defendant in one additional litigation
pending in the Circuit Court of Jefferson County, Alabama.
The case is captioned Roy A. Reese v. Trism Specialized
Carriers, Inc. and Tri-State Motor Transit Co. It arises from
a lease and consulting agreement between the Company and
plaintiff (Mr. Reese and his wholly owned corporation) dated
August 24, 1992. Plaintiff alleges breach of contract,
promissory fraud, conversion and conspiracy claims arising
from the Company's termination of the contract. He seeks
compensatory and punitive damages. The Company maintains that
it properly terminated the contract because of
misrepresentations and non-performance by plaintiff and his
company, and has asserted certain counterclaims. The case was
tried in August 1996 and plaintiff was awarded $47,000 in
rental fees admitted by TRISM to be due for the use of
plaintiff's trailer equipment after cancellation of the
original contract. All other claims for damages were found in
favor of the defendant (TRISM).
Plaintiff appealed to the Court of Civil Appeals of Alabama
and, on July 11, 1997, that court reversed the lower court
ruling and remanded the case for a new trial. Trism has filed
an Application for Rehearing, and is prepared to appeal to the
Alabama Supreme Court to protect the original jury verdict.
The Company believes that it will again prevail should a
second trial become necessary.
In addition to matters referred to above, the Company is a party
to certain additional lawsuits, none of which is believed to
involve a significant risk of materially and adversely
affecting the Company's financial condition.
Item 4. Submission of Matters to a Vote of Security Holders
(a) The date of the annual meeting was May 13, 1997.
(b) Not required
(c) The following matters were voted on at the meeting:
(1) The following persons were nominated and elected to serve as
directors of Trism, Inc.:
Affirmative Votes Broker
Name Votes Withheld Abstentions Nonvotes
James M. Revie 4,474,609 141,386 - -
Julian H. Gingold 4,476,079 139,914 - -
Virgil Conway 4,476,026 139,967 - -
James F. Higgins 4,476,207 139,786 - -
William M. Legg 4,476,026 139,967 - -
John L. Ray 4,476,207 139,786 - -
(2) The appointment of Coopers & Lybrand, independent accountants,
was ratified by the following vote:
Affirmative Negative Broker
Votes Votes Abstentions Nonvotes
3,985,093 16,068 614,832 -
Item 6. Exhibits and Reports on Form 8-K
A. Exhibits
The following exhibit is filed as part of this report
Designation Nature of Exhibit
11 Computation of earnings
per Common Share
B. Reports on Form 8-K
During the quarter covered by this report there were no
reports on Form 8-K filed.
Items 2, 3 and 5 of Part II were not applicable and have
been omitted.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned
thereunto duly authorized.
TRISM, INC.
By:/s/James M. Revie
James M. Revie
Director, Chairman of the
Board and Chief Executive
Officer
By:/s/James G. Overley
James G. Overley
Senior Vice President of
Finance, Chief Financial
Officer and Treasurer
Date:August 14, 1997
TRISM, INC.
Exhibit Index
Page
Exhibit Number Description Number
11 Computation of earnings per common share 14
EXHIBIT 11
TRISM, INC.
COMPUTATION OF EARNINGS PER COMMON SHARE
(In thousands, except per share amounts)
(Unaudited)
Three Months Six Months
Ended June 30 Ended June 30
1997 1996 1997 1996
Net earnings (loss) $ 897 $ 507 $(2,509) $(1,691)
Weighted average number of
shares
Primary:
Average common shares 5,737 5,733 5,737 5,733
outstanding
Common share equivalents
resulting from assumed
exercise of stock options - 1 - 1
5,737 5,733 5,737 5,734
Fully diluted:
Average comon shares
outstanding 5,737 5,733 5,737 5,733
Common share equivalents
resulting from assumed
exercise of stock options - 1 - 1
5,737 5,734 5,737 5,734
Earnings (loss) per common
share:
Primary $.16 $.09 $(.44) $(.29)
Fully Diluted $.16 $.09 $(.44) $(.29)
Primary earnings (loss) per common share are computed by dividing
net income (loss), after deduction of undeclared dividends on
redeemable preferred stock, by the weighted average number of
common shares and common share equivalents outstanding during
each presented period. Common share equivalents are computed
using the treasury stock method. Under the treasury stock
method, an average market price is used to determine the number
of common share equivalents for primary earnings (loss) per
common share. The higher of the average or the end of period
market price is used to determine the number of common share
equivalents for fully diluted earnings (loss) per common share.