SIMON TRANSPORTATION
REPORTS FOURTH QUARTER 2000 AND FISCAL YEAR RESULTS
SALT LAKE CITY, UTAH (PR Newswire) December 14, 2000 ---------- Simon
Transportation Services Inc. (Nasdaq/NMS: SIMN) announced today revenue and
operating results for the fourth quarter and fiscal year ended September 30,
2000.
Revenue for the fourth quarter increased 15.3% to $61.4 million, compared with
$53.3 million for the corresponding quarter of fiscal year 1999. Net loss was
$6.9 million or $1.13 per diluted share, compared with net loss of $0.5 million
or 8 cents per diluted share for the corresponding quarter a year ago.
For fiscal 2000, revenue increased 10.6% to $231.4 million, compared with $209.1
million for fiscal 1999. Net loss was $11.1 million or $1.82 cents per diluted
share, compared with net loss of $3.2 million or 53 cents per diluted share in
fiscal 1999.
During the quarter, Jerry Moyes acquired a controlling interest in Simon
Transportation. As part of this change in ownership and management, the Company
adopted an actuarial method of accounting for accident and workers' compensation
claims in place of its former method. Both methods are acceptable under
generally accepted accounting principles. Using the new method resulted in
increased charges for accident and workers' compensation claims, including a
one-time charge related to the change of $3.9 million.
In addition to the change in accounting method, during the quarter, Simon
experienced the highest driver turnover in its history. Turnover exacerbated
recruiting costs and contributed to increased claims and repair expense, and low
tractor utilization. In addition, high fuel prices continued to affect the
truckload industry, including Simon.
Chief Executive Officer Jon Isaacson, stated, "Management is addressing the
driver turn-over and related issues. Effective after the end of the fourth
quarter, we raised our driver pay 2 cents per mile. One cent of the increase
applies to all drivers at all levels and another cent can be attained based upon
a monthly mileage target. The Company also started an owner-operator program in
mid-October and has added over 30 owner-operators to the fleet. We plan to
continue this growth. We believe these steps will improve our ability to attract
and retain qualified drivers."
Simon Transportation is a truckload carrier providing nationwide, predominantly
temperature-controlled transportation services for major shippers. The Company's
Class A Common Stock trades on the Nasdaq National Market under the symbol
"SIMN".
For additional information contact:
Alban B. Lang, Chief Financial Officer
(801) 924-7000
This press release and statements by the Company in reports to its stockholders
and public filings, as well as oral public statements by Company representatives
may contain certain forward looking information that is subject to certain risks
and uncertainties that could cause actual results to differ materially from
those projected. Without limitation, these risks and uncertainties include
economic recessions or downturns in customers' business cycles, excessive
increases in capacity within the truckload markets, decreased demand for
transportation services offered by the Company, rapid inflation and fuel price
increases, increases in interest rates, the resale value of used equipment, and
the availability and compensation of qualified drivers. Readers should review
and consider the various disclosures made by the Company in this press release
and in its reports to its stockholders and periodic reports on forms 10-K and
10-Q.
SIMON TRANSPORTATION SERVICES INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Sep 30, 2000 Sep 30, 1999
ASSETS (Unaudited)
Current Assets:
Cash 3,331,119 8,658,268
Accounts receivable, net 29,932,630 22,862,685
Operating supplies 1,330,462 1,468,216
Prepaid expenses and other 6,657,644 5,367,117
Total current assets 41,251,855 38,356,286
Property & Equipment 73,788,102 80,851,116
Less Accumulated Depreciation (24,384,568) (23,203,536)
49,403,534 57,647,580
Other Assets 451,603 726,140
------------ ------------
91,106,992 96,730,006
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current debt & capitalized leases 3,437,120 9,315,252
Accounts payable & accrued expenses 21,844,631 11,498,082
Total current liabilities 25,281,751 20,813,334
Long-Term Debt & Capitalized Leases 16,376,791 12,307,761
Deferred Income Taxes 4,604,318 7,665,063
Stockholders' Equity 44,844,132 55,943,848
------------ ------------
91,106,992 96,730,006
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended For the Year Ended
Sep 30, 2000 Sep 30, 1999 Sep 30, 2000 Sep 30, 1999
(Unaudited) (Unaudited)
Operating Revenue 61,429,966 53,280,519 231,396,894 209,143,336
Operating Expenses:
Salaries, wages, and benefits 24,756,265 22,942,693 94,240,163 90,875,731
Fuel & fuel taxes 14,794,616 10,345,003 51,189,390 37,261,969
Operating supplies and expenses 11,108,913 6,237,501 31,575,822 27,872,046
Taxes and licenses 2,757,392 1,773,050 7,829,742 7,318,915
Insurance and claims 5,414,334 1,624,317 10,352,274 6,591,246
Communications and utilities 1,227,201 968,281 4,039,162 4,239,479
Depreciation and amortization 876,663 1,276,480 4,121,893 4,466,114
Rent 10,953,606 8,553,299 37,947,272 34,362,746
Total operating expenses 71,888,990 53,720,624 241,295,718 212,988,246
Operating loss (10,459,024) (440,105) (9,898,824) (3,844,910)
Net interest expense (345,516) (340,853) (1,422,508) (1,353,632)
Loss before benefit for income taxes (10,804,540) (780,958) (11,321,332) (5,198,542)
Benefit for income taxes 3,889,634 295,202 4,075,680 1,965,049
Loss before change in accounting method (6,914,906) (485,756) (7,245,652) (3,233,493)
Change in accounting for accident and
workers' compensation claims, net of
income tax benefit of $2,172,598 - - (3,862,397) -
Net loss (6,914,906) (485,756) (11,108,049) (3,233,493)
Basic and diluted net loss per common share (1.13) (0.08) (1.82) (0.53)
Basic and diluted weighted average
common shares outstanding 6,110,522 6,109,834 6,110,213 6,116,815