EXHIBIT 99.1
(SCS TRANSPORTATION, INC. LOGO) NEWS RELEASE
FOR IMMEDIATE RELEASE
FEBRUARY 16, 2004
SCS TRANSPORTATION ANNOUNCES ACQUISITION OF CLARK BROS.,
EXPANDING SAIA INTO MAJOR MIDWESTERN MARKETS
(KANSAS CITY, Mo.) - SCS Transportation, Inc. (NASDAQ: SCST) today announced it
has acquired Clark Bros. Transfer, Inc., a Midwestern less-than-truckload
carrier operating in ten states. The operations of Clark Bros. will be
integrated into Saia later this spring, bringing the benefits of Saia
transportation service to major Midwestern markets including Chicago,
Minneapolis, St. Louis and Kansas City. The expanded Saia will serve 29 states
with 127 terminals.
In 2003, Clark Bros. recorded revenue of $66 million and $4 million in operating
income, generating an operating ratio of 93.9 percent. SCS Transportation
expects the acquisition and integration to be accretive to earnings beginning in
2004, with additional revenue synergies going forward.
"This acquisition expands the ability of Saia to offer seamless, top-quality LTL
service to current and new customers in multiple regions," said Bert Trucksess,
chairman, president and chief executive officer of SCS Transportation. "We
greatly enhance the value Saia delivers for customers, employees and
shareholders by adding the Midwest and Plains states to our current Saia service
in the South, Southwest, Pacific Northwest and West."
James D. Clark, president of Clark Bros., commented: "As a family-owned business
for the past 68 years, our primary concern has been the long-term interests of
our customers and employees. Joining Saia and SCS Transportation ensures a
promising future as part of a growing, financially strong company with a
first-rate reputation and commitment to customer service."
SCS Transportation Announces Acquisition
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Clark Bros., based in Norfolk, Neb., has approximately 600 employees and has
been serving customers since 1936. With approximately 370 tractors and 600
trailers, Clark Bros. currently serves Colorado, Illinois, Iowa, Kansas,
Minnesota, Missouri, Nebraska, South Dakota, Texas and Wisconsin.
Saia, based in Duluth, Ga., had 2003 revenues of $521 million, with operating
income of $27.7 million and an operating ratio of 94.7 percent. Saia currently
has about 5,200 employees and owns approximately 2,250 tractors and 7,750
trailers. Saia currently serves Alabama, Arizona, Arkansas, California,
Colorado, Florida, Georgia, Idaho, Louisiana, Mississippi, Nevada, New Mexico,
North Carolina, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah,
Virginia and Washington.
In addition to providing a platform for greater revenue and profit growth, the
acquisition maintains the financial strength and flexibility of SCS
Transportation. The total consideration of $30.5 million includes three
components:
o $21.7 million for the purchase of all outstanding Clark Bros. equity
o $6.0 million for the assumption of debt, all of which will be repaid
shortly after closing
o $2.8 million in consideration to structure the transaction as an asset
sale for tax purposes.
The transaction is being financed from cash balances, existing revolving credit
capacity, and a $6.2 million seller note.
CONFERENCE CALL AND OTHER INFORMATION
SCS Transportation will hold a conference call to discuss the acquisition on
Tuesday, February 17, 2004, at 12:00 p.m. Eastern Time (11:00 a.m. Central
Time). Hosting the call will be Bert Trucksess, chairman, president and CEO, Jim
Bellinghausen, vice president of finance and CFO, and Rick O'Dell, president and
CEO of Saia. To participate, please dial 1-800-275-8866, or 1-706-634-4936 for
international calls. Callers should dial in five to ten minutes before the
starting time. This call will be webcast live via the company's web site at
www.scstransportation.com and will be archived on the site for 90 days. A replay
of the call
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will also be available from two hours after completion through February 24,
2004, by dialing 1-800-642-1687 and using conference code 5570236. Supplemental
information about the Saia expansion, including a map of the new coverage area,
is available at our web site.
SCS Transportation, Inc. (NASDAQ: SCST) provides trucking transportation and
supply chain solutions to 72,000 customers across the United States. With 2003
revenues of $827 million, the company focuses on regional and interregional
less-than-truckload (LTL) and selected truckload (TL) services. Operating
subsidiaries are Saia, a multi-region LTL carrier based in Duluth, Ga., and
Jevic, a hybrid LTL & truckload carrier based in Delanco, N.J. Headquartered in
Kansas City, Mo., SCST has approximately 7,700 employees nationwide.
The Securities and Exchange Commission encourages companies to disclose
forward-looking information so that investors can better understand the future
prospects of a company and make informed investment decisions. This news release
contains these types of statements, which are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
Words such as "anticipate," "estimate," "expect," "project," "intend,"
"plan," "predict," "believe" and similar words or expressions are intended to
identify forward-looking statements. We use such forward-looking statements
regarding our future financial condition and results of operations and our
business operations in this release. All forward-looking statements reflect the
present expectation of future events of our management and are subject to a
number of important factors, risks, uncertainties and assumptions that could
cause actual results to differ materially from those described in the
forward-looking statements. These factors and risks include, but are not limited
to, general economic conditions; labor relations; cost and availability of
qualified drivers; governmental regulations, including but not limited to Hours
of Service, engine emissions and Homeland Security; cost and availability of
fuel; inclement weather; integration risks; competitive initiatives and pricing
pressures; self-insurance claims and other expense volatility; and other
financial, operational and legal risks and uncertainties detailed from time to
time in the Company's SEC filings.
# # #
INVESTOR CONTACT: Greg Drown
SCS Transportation, Inc.
816-714-5906
gdrown@scstransportation.com
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MEDIA CONTACT: Dick Johnson
Johnson Strategic Communications Inc.
913-649-8885
dick@johnsonstrategic.com