Exhibit 99.1
[ROADWAY CORPORATION LOGO]
CONTACT:
John M. Hyre
Investor and Public Relations
(330) 258-6080
ROADWAY CORPORATION'S ANNUAL EARNINGS $1.64 PER SHARE
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AKRON, Ohio - January 23, 2002 - Roadway Corporation (NASDAQ: ROAD) today
reported revenues of $2.79 billion for the year ended December 31, 2001, down
8.2%, when compared to revenues of $3.04 billion in 2000.
Net income for the year decreased 45.5% to $30,837,000, or $1.64 per share
(diluted), when compared to net income of $56,542,000, or $2.98 per share, for
2000. For Roadway Express and its subsidiaries, which constituted 99% of the
Company's annual volume in 2001, business levels as indicated by total tonnage
were down 12.6%. Less-than-truckload (LTL) tonnage was down 12.5%, and truckload
tonnage decreased by 13.0%. In 2001, revenue per ton increased 4.0% versus last
year.
For the 16 weeks constituting the Company's fourth quarter, revenues were down
9.3% to $867,497,000, when compared with revenues of $956,015,000 for the fourth
quarter of 2000. Net income for the quarter declined 46.3% to $13,651,000, or
$.73 per share (diluted), when compared to net income of $25,435,000, or $1.34
per share, during the same period in 2000. During the quarter, Roadway Express
and its subsidiaries' tonnage was down 13.2% compared to fourth quarter 2000.
For the quarter, LTL tons decreased 13.0%, and truckload tonnage was down 13.6%.
Revenue per ton, net of year-over-year fuel surcharge reductions of 2.2%, was
3.4% higher than the same period last year.
Michael W. Wickham, Chairman of the Board of Directors and CEO of Roadway
Corporation, stated, "Due to the continuing downturn in the national economy,
our business volumes were depressed going into the fourth quarter. With the
events of September 11, they dipped even further, but fairly quickly returned to
their previously soft levels. These results reflect our strategy to keep costs
variable. All of our employees did an excellent job managing expenses in a very
difficult economic period. Our results also reflect the fact that our pricing
environment continued to be relatively stable."
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ROADWAY CORPORATION
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FOURTH QUARTER 2001
"The year followed a pattern similar to the fourth quarter. We saw continued
softness in volumes due to the general economy, however, we were able to
exercise tight cost controls that would not have been possible just a few years
ago. Even so, in 2001, we undertook a number of significant strategic growth
initiatives to increase shareholder value and better serve our customers. After
forming a holding company, we successfully completed the acquisition of Arnold
Industries. We also became a partner in an exciting new joint venture, Integres
Global Logistics, which powers Roadway Air, an important new customer offering,"
Wickham added.
"Since we completed the purchase of Arnold on November 30, this year's results
only include New Penn and Arnold Transportation Services for the month of
December, which is historically a very slow month for our industry. We do expect
New Penn and ATS to materially contribute to our financial performance going
forward. Additionally, New Penn's knowledge and expertise in the next-day ground
business will figure prominently in our growth plans," Wickham said.
"Looking forward, we expect the dismal economic conditions we experienced in
2001 to continue in the first quarter of 2002. The opening quarter of the year
will be extremely challenging, as it is traditionally our slowest period. We
will continue to manage our costs in line with anticipated business volumes. We
plan to continue investing in our business, as our strategy currently calls for
$105 million in capital expenditures during the year. The inclusion of New Penn
and Arnold Transportation Services will add to the Company's top line growth and
should offer some protection for profit margins during this difficult period.
Overall, we expect to post a profitable first quarter, but don't look for
margins to be any better than last year's first quarter. The people at all of
our companies are focused on providing excellent service at a good price so we
can grow our business and get all of our laid-off employees back to work,"
Wickham concluded.
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ROADWAY CORPORATION
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FOURTH QUARTER 2001
CONDENSED STATEMENTS OF CONSOLIDATED INCOME
ROADWAY CORPORATION AND SUBSIDIARIES
Fourth Quarter Ended
(Sixteen Weeks)
December 31, 2001 December 31, 2000
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(in thousands, except per share data)
Revenue $ 867,497 $ 956,015
Operating expenses:
Salaries, wages and benefits 556,084 583,708
Operating supplies and expenses 143,696 167,963
Purchased transportation 83,683 94,358
Operating taxes and licenses 21,795 23,410
Insurance and claims 13,684 23,448
Provision for depreciation 23,895 18,702
Net (gain) loss on sale of operating property (116) 712
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Total operating expenses 842,721 912,301
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Operating income 24,776 43,714
Other (expense) income, net (1,759) 377
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Income before income taxes 23,017 44,091
Provision for income taxes 9,366 18,656
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Net income $ 13,651 $ 25,435
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Earnings per share - basic $ 0.74 $ 1.36
Earnings per share - diluted $ 0.73 $ 1.34
Average shares outstanding - basic 18,581 18,657
Average shares outstanding - diluted 18,954 18,928
Operating ratio 97.1% 95.4%
Profit margin 1.6% 2.7%
Includes New Penn and ATS for the month of December 2001.
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ROADWAY CORPORATION
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FOURTH QUARTER 2001
CONDENSED STATEMENTS OF CONSOLIDATED INCOME
ROADWAY CORPORATION AND SUBSIDIARIES
Year Ended
December 31, 2001 December 31, 2000
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(in thousands, except per share data)
Revenue $ 2,791,748 $ 3,039,560
Operating expenses:
Salaries, wages and benefits 1,785,117 1,889,928
Operating supplies and expenses 480,529 544,774
Purchased transportation 275,637 308,089
Operating taxes and licenses 71,624 78,271
Insurance and claims 47,728 64,442
Provision for depreciation 71,512 55,675
Net loss on sale of operating property 418 1,969
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Total operating expenses 2,732,565 2,943,148
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Operating income 59,183 96,412
Other (expense) income, net (6,016) 1,872
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Income before income taxes 53,167 98,284
Provision for income taxes 22,330 41,742
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Net income $ 30,837 $ 56,542
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Earnings per share - basic $ 1.67 $ 3.03
Earnings per share - diluted $ 1.64 $ 2.98
Average shares outstanding - basic 18,490 18,662
Average shares outstanding - diluted 18,808 18,992
Operating ratio 97.9% 96.8%
Profit margin 1.1% 1.9%
Includes New Penn and ATS for the month of December 2001.
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ROADWAY CORPORATION
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FOURTH QUARTER 2001
CONDENSED CONSOLIDATED BALANCE SHEETS
ROADWAY CORPORATION AND SUBSIDIARIES
December 31, 2001 December 31, 2000
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(in thousands)
Assets
Current assets:
Cash and cash equivalents $ 122,873 $ 64,939
Other current assets 237,581 328,531
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Total current assets 360,454 393,470
Net carrier operating property 607,925 428,685
Goodwill, net 268,253 16,086
Deferred income taxes 31,054 29,118
Other assets 35,163 3,046
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Total assets $ 1,302,849 $ 870,405
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Liabilities and shareholders' equity
Current liabilities:
Accounts payable $ 216,765 $ 178,890
Other current liabilities 196,328 174,156
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Total current liabilities 413,093 353,046
Long-term liabilities 222,861 177,488
Long-term debt 307,000 -0-
Shareholders' equity 359,895 339,871
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Total liabilities and equity $ 1,302,849 $ 870,405
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ROADWAY CORPORATION
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FOURTH QUARTER 2001
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
ROADWAY CORPORATION AND SUBSIDIARIES
Year Ended
December 31, 2001 December 31, 2000
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(in thousands)
Cash flows from operating activities:
Net income $ 30,837 $ 56,542
Adjustments 86,386 40,442
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Net cash provided by operating activities 117,223 96,984
Net cash (used) by investing activities (469,022) (108,885)
Net cash provided (used) by financing activities 409,679 (3,854)
Effect of exchange rate changes on cash 54 (103)
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Net increase (decrease) in cash
and cash equivalents 57,934 (15,858)
Cash and cash equivalents at beginning of period 64,939 80,797
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Cash and cash equivalents at end of period $ 122,873 $ 64,939
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ROADWAY CORPORATION
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FOURTH QUARTER 2001
OPERATING DATA, EXCLUDES NEW PENN AND ATS
Fourth Quarter Ended
(Sixteen Weeks)
December 31, 2001 December 31, 2000
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LTL tons 1,798,818 2,068,750
Truckload tons 409,898 474,449
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Total tons 2,208,716 2,543,199
LTL shipments 3,803,180 4,417,060
Truckload shipments 49,713 57,312
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Total Shipments 3,852,893 4,474,372
Revenue per LTL ton $ 431.10 $ 424.51
Revenue per truckload ton $ 158.67 $ 164.01
Revenue per ton $ 380.54 $ 375.91
Year Ended
(Fifty-two Weeks)
December 31, 2001 December 31, 2000
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LTL tons 6,018,164 6,874,792
Truckload tons 1,367,007 1,570,801
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Total tons 7,385,171 8,445,593
LTL shipments 12,850,648 14,775,667
Truckload shipments 165,274 191,311
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Total Shipments 13,015,922 14,966,978
Revenue per LTL ton $ 423.88 $ 405.80
Revenue per truckload ton $ 156.37 $ 159.00
Revenue per ton $ 374.37 $ 359.90
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ROADWAY CORPORATION
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FOURTH QUARTER 2001
Roadway Express operates with 12 weeks in each of the first three quarters and
16 weeks in the fourth quarter.
A conference call discussing this quarter's performance with securities analysts
will be simulcast live on the Company's Web site at www.roadwaycorp.com
beginning at 11:00 a.m. (Eastern time) on Wednesday, January 23, 2002. The call
will remain available for playback for the next three weeks.
Note: While most of the information provided herein is historical, some of the
comments made are forward-looking statements. Roadway Corporation's actual
performance may differ from that forecast as a result of variable factors such
as the state of the national economy, capacity and rate levels in the motor
freight industry, fuel prices, the success of Roadway Corporation's operating
plans, including its plans for New Penn and Arnold Transportation Services, and
uncertainties concerning the ongoing impact of terrorism and related costs.
These forward-looking statements reflect management's analysis only as of the
date of this release. Roadway Corporation undertakes no obligation to publicly
revise these forward-looking statements to reflect events or circumstances that
arise after the date hereof. In addition to the disclosure contained herein,
readers should carefully review risks and uncertainties contained in other
documents that Roadway Corporation files from time to time with the Securities
and Exchange Commission.
Included in the Dow Jones Transportation Average, Roadway Corporation (NASDAQ:
ROAD), is a holding company dedicated to identifying opportunities to expand the
transportation-related service offerings available to customers through the
Roadway portfolio of strategically linked companies. Roadway Corporation's
principal operating subsidiaries include: ROADWAY EXPRESS, a leading ISO
9002-certified transporter of industrial, commercial and retail goods in the
two- to five-day regional and long-haul markets. Roadway Express provides
seamless service between all 50 states, Canada, Mexico and Puerto Rico including
export services to 66 countries. NEW PENN MOTOR EXPRESS, a regional, next-day
ground less-than-truckload carrier of general commodities serving twelve states
in the Northeastern United States, with links to the Midwest and Southeast
United States and Ontario, Canada. And, ARNOLD TRANSPORTATION SERVICES, an
irregular route, dedicated truckload carrier serving short-haul markets in the
Northeast, Southeast, Midwest and Southwest regions of the U.S. For additional
information, contact the Company at www.roadwaycorp.com.
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