EXHIBIT 99.1
[THE INVESTOR RELATIONS COMPANY LETTERHEAD]
For:
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Celadon Group, Inc.
One Celadon Drive
Indianapolis, IN 46235-4207
317-972-7000
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- NEWS RELEASE -
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The Investor Relations Company serves as investor relations counsel to this
company, is acting on the company's behalf in issuing this news release and
receiving compensation thereof. The information contained here in is furnished
for information purposes only and is not to be construed as an offer to buy or
sell securities.
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For further Information:
AT THE COMPANY IN CHICAGO
Steve Russell, Chairman, or Paul Will, CFO Karl Plath or Brien Gately
317-972-7000 847-296-4200
FOR IMMEDIATE RELEASE
CELADON GROUP ANNOUNCES THIRD-QUARTER RESULTS
- EPS OF SIX CENTS VS FOUR CENTS IN PRIOR YEAR
- HIGHER FUEL COSTS AND ADVERSE WEATHER IMPACT RESULTS
- EIGHTH CONSECUTIVE QUARTER OF YEAR-OVER-YEAR EPS GAINS
INDIANAPOLIS, APRIL 25, 2003--Celadon Group, Inc. (Nasdaq: CLDN) today reported
net income for the third quarter ended March 31, 2003, increased to $0.5
million, or six cents per diluted share, compared with net income of $0.3
million, or four cents per diluted share in the prior year's comparable period.
Higher cost of diesel fuel, net of surcharges, adversely affected the March 2003
diluted earnings per share by nine cents as compared with March 2002.
Consolidated revenue for the three months ended March 31, 2003, was $90.7
million, a 15 percent increase over $78.7 million reported for the same period a
year earlier.
Net income for the nine months ended March 31, 2003, increased to $3.3 million,
or 37 cents per diluted share, excluding a non-cash charge of $0.9 million, or
seven cents per share on a diluted basis, related to a new banking arrangement
the company entered into in September 2002. This result compares with net income
of $0.6 million, or eight cents per diluted share, in the prior year's nine
month period. Consolidated revenue for the nine months ended March 31, 2003 was
$275.1 million, a 14 percent increase over the $241.0 million reported for the
same period a year earlier.
Trucking operating income decreased slightly to $1.8 million in the third
quarter from $1.9 million a year earlier. Higher fuel costs, net of the
surcharge, worse winter weather, and a weak economy offset increased revenue,
better rates, lower deadhead and generally more efficient operations. The
average U.S. Department of Energy reported cost of over-the-road diesel fuel
increased to $1.62 per gallon in the March 2003 quarter from $1.19 per gallon in
the prior-year quarter.
Steve Russell, Chairman and Chief Executive Officer, stated that, "Despite
higher fuel costs, a weak economy, and difficult weather conditions, we were
able to record our eighth consecutive quarter of year-over-year improved
earnings per share. Loaded rate per mile was up over 2.4 percent, excluding the
fuel surcharge. Deadhead declined to 7.6 percent from 8.2 percent in the prior
year's period. Automotive business has been reduced significantly and replaced
with consumer non-durables. In March, Celadon won the First Place Award for
Safety among large fleets based on U.S. Department of Transportation rankings
for 2002, compared with Third Place in 2001. Despite adverse exogenous factors,
we are a much better company today than we were a year ago and we will focus on
continued improvement of controllable aspects of the business."
TruckersB2B operating income decreased to $0.2 million from $0.3 million a year
ago. Although the number of using fleets increased, due to difficult economic
conditions, the amount of goods purchased declined.
Paul Will, Chief Financial Officer, said, "Our balance sheet improved as well
compared with June 30, 2002 with bank debt reduced to $27 million from $39
million, and total balance sheet debt reduced to $70 million from $97 million."
Celadon Group, Inc. is a truckload carrier headquartered in Indianapolis, that
operates in the U.S., Canada and Mexico, and, is the majority owner of
TruckersB2B, Inc., which is a provider of cost benefits to about 14,000 member
fleets. Please visit the company's websites at: www.celadongroup.com and
www.truckersb2b.com.
The discussion set forth above as well as oral statements made by officers of
the company relating thereto, may contain forward looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such comments
are based upon information currently available to management and management's
perception thereof as of the date of this press release. Actual results of the
company's operations could materially differ from those forward-looking
statements. Such differences could be caused by a number of factors including,
but not limited to, potential adverse affects of regulation; changes in
competition and the effects of such changes; increased competition; change in
fuel prices; changes in economic, political or regulatory environments; changes
in the availability of a stable labor force; ability of the company to hire
drivers meeting company standards; changes in management strategies;
environmental or tax matters; and risks described from time to time in reports
filed by the company with the Securities and Exchange Commission. Readers should
take these factors into account in evaluating any such forward-looking
statements.
Celadon Group, Inc. (Nasdaq: CLDN)
Key Financial and Operating Statistics
(Unaudited)
(Amounts in thousands, except per share amounts)
FOR THE THREE MONTHS FOR THE NINE MONTHS
MARCH 31, MARCH 31,
2003 2002 2003 2002
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Revenue
Truckload ................................ $ 89,327 $ 77,021 $ 269,793 $ 236,291
TruckersB2B .............................. 1,359 1,716 5,280 4,665
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Total revenue ..................................... 90,686 78,737 275,073 240,956
Operating expenses:
Salaries, wages and employee benefits .... 27,474 23,394 83,814 70,599
Fuel ..................................... 13,604 7,868 35,692 25,556
Operating costs and supplies ............. 7,928 6,613 23,710 21,106
Insurance and claims ..................... 3,361 2,820 9,962 8,290
Depreciation and amortization ............ 3,768 3,057 10,353 9,652
Rent and purchased transportation ........ 26,454 27,122 83,335 81,694
Costs of products and services sold ...... 812 1,023 3,342 2,789
Professional and consulting fees ......... 736 389 1,870 1,166
Communications and utilities ............. 1,068 945 3,069 2,848
Permits, licenses and taxes .............. 1,759 1,628 5,638 4,875
General, administrative and selling ...... 1,706 1,691 5,184 5,483
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Total operating expenses ............ 88,670 76,550 265,969 234,058
Operating income
Truckload ................................ 1,826 1,908 8,259 6,285
TruckersB2B .............................. 190 279 845 613
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Total operating income ............................ 2,016 2,187 9,104 6,898
Other (income) expense:
Interest income .......................... (29) (31) (67) (85)
Interest expense ......................... 1,211 1,721 5,147 5,666
Other (income) expense, net .............. 40 24 (25) 115
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Income before income taxes ........................ 794 473 4,049 1,202
Provision for income taxes ................... 340 195 1,676 584
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Net income ........................................ $ 454 $ 278 $ 2,373 $ 618
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Income per share:
Diluted .................................. $ 0.06 $ 0.04 $ 0.30 $ 0.08
Basic .................................... $ 0.06 $ 0.04 $ 0.31 $ 0.08
Weighted average number of
Common shares outstanding
Diluted .................................. 8,018 7,762 8,049 7,671
Basic .................................... 7,693 7,644 7,687 7,597
FOR THE THREE MONTHS ENDED FOR THE THREE MONTHS ENDED
MARCH 31, MARCH 31,
2003 2002
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Operating Statistics - U.S./Canada Truckload Only:
Average revenue per loaded mile $1.275 $1.244
Average revenue per total mile $1.178 $1.150
Average revenue per tractor per week (*) $2,674 $2,508
Average miles per tractor per week 2,131 2,211
Average tractors 2,182 1,930
Tractors at end of period (**) 2,559 2,625
Trailers at end of period (**) 7,139 6,568
Operating ratio 97.8% 97.2%
*Includes fuel surcharge
**Includes Mexico
(Dollars in thousands)
March 31 June 30,
2003 2002
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ASSETS (unaudited)
Current assets:
Cash and cash equivalents ................................................................ $ 742 $ 299
Trade receivables, net of allowance ...................................................... 46,823 54,796
Accounts receivable - other .............................................................. 4,258 5,728
Prepaid expenses and other current assets ................................................ 7,754 6,222
Tires in service ......................................................................... 4,483 4,181
Deferred income taxes .................................................................... 1,603 1,808
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Total current assets ................................................................. 65,663 73,034
Property and equipment ........................................................................ 133,107 140,142
Less accumulated depreciation and amortization ........................................... 52,263 45,164
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Net property and equipment ........................................................... 80,844 94,978
Tires in service .............................................................................. 2,106 1,982
Goodwill ...................................................................................... 16,702 16,702
Other assets .................................................................................. 3,440 3,335
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Total assets ............................................................................. $ 168,755 $ 190,031
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable ......................................................................... $ 5,557 $ 4,184
Accrued expenses ......................................................................... 9,356 9,460
Salaries and benefits accrual ............................................................ 6,765 7,087
Insurance and claims accrual ............................................................. 5,359 4,274
Owner-operator expense accrual ........................................................... 2,567 3,599
Fuel expense accrual ..................................................................... 4,407 2,823
Bank borrowings and current maturities of long-term debt ................................. 7,552 7,531
Current maturities of capital lease obligations .......................................... 17,628 21,120
Income tax payable ....................................................................... 659 51
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Total current liabilities ............................................................ 59,850 60,129
Long-term debt, net of current maturities ..................................................... 30,018 44,178
Capital lease obligations, net of current maturities .......................................... 14,408 24,193
Deferred income taxes ......................................................................... 8,433 7,590
Minority interest ............................................................................. 25 25
Stockholders' equity:
Preferred stock, $1.00 par value, authorized 179,985 shares; no shares
Issued and outstanding ................................................................... -- --
Common stock, $0.033 par value, authorized 12,000,000 shares; issued
7,789,764 shares ..................................................................... 257 257
Additional paid-in capital ............................................................... 60,055 60,044
Retained deficit ......................................................................... (1,976) (4,349)
Accumulated other comprehensive loss ..................................................... (1,924) (1,581)
Treasury stock, at cost, 96,451 and 112,115 shares at
September 30, 2002 and June 30, 2002, respectively ..................................... (391) (455)
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Total stockholders' equity ........................................................... 56,021 53,916
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Total liabilities and stockholders' equity ............................................... $ 168,755 $ 190,031
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