Filed by Swift Transportation Co., Inc.
Commission File No. 0-18605
Pursuant to Rule 425 under the Securities Act of 1933 and
deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934
Subject Company: M.S. Carriers, Inc.
Commission File No. 0-14781
Date: April 18, 2001
Certain information in this filing consists of forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. With
respect to M.S. Carriers' financial results these statements include, but are
not limited to: M.S. Carriers will have reasonable success recruiting and
retaining experienced drivers and owner operators at the company's current
compensation level; demand and pricing for the markets served by M.S. Carriers
will remain at current levels; fuel will remain available and without rapid
price fluctuations; and the company's accident experience will remain at
historical levels. Actual results may differ from those set forth in the
forward-looking statements. With respect to the proposed merger transaction with
Swift these risks and uncertainties include: the ability to obtain governmental
approvals of the merger on the proposed terms and schedule; the failure of
Swift's and M.S. Carriers' stockholders to approve the merger; the risk that the
businesses will not be integrated successfully or that integration costs will
exceed our estimates; the risk that the revenue and other synergies and cost
savings from the merger may not be fully realized or may take longer to realize
than expected; fluctuating stock market levels; the difficulty the stock market
may have in valuing the business model of the combined company; and disruption
from the merger making it more difficult to maintain relationships with
customers, employees or suppliers.
A discussion of these and other factors that could cause M.S. Carriers results
to differ materially from those described in the forward-looking statements can
be found in the most recent Annual Report on Forms 10-K of M.S. Carriers, filed
with the Securities and Exchange Commission and available at the Securities and
Exchange Commission's internet site (http://www.sec.gov). Swift undertakes no
obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise. Further, nothing
herein shall constitute adoption or approval of any analyst report regarding
Swift, nor any undertaking to update or comment upon analysts' expectations in
the future.
The proposed merger transaction between Swift and M.S. Carriers will be
submitted to the companies' stockholders for their consideration. Swift will
file a registration statement on Form S-4 that will include a joint proxy
statement/prospectus. Stockholders should read the joint proxy
statement/prospectus regarding the proposed transaction that will be filed with
the SEC and mailed to stockholders. The joint proxy statement/prospectus will
contain important information that stockholders should consider. Stockholders
will be able to obtain a free copy of the joint proxy statement/prospectus, as
well as other filings containing information about Swift and M.S. Carriers,
without charge, at the SEC's internet site (http://www.sec.gov). Copies of the
joint proxy statement/prospectus and the SEC filings that will be incorporated
by reference in the joint proxy statement/prospectus can also be obtained,
without charge, by directing a request to: Swift Transportation Co., Inc., 2200
South 75th Avenue, Phoenix, AZ 85043, Attention: Chief Financial Officer
(602-269-9700). Swift and M.S. Carriers and certain other persons named below
may be deemed to be participants in the solicitation of proxies of Swift's and
M.S. Carriers' stockholders to approve the transaction. The participants in this
solicitation may include the directors and executive officers of Swift and M.S.
Carriers. A detailed list of the names and interests of Swift's directors and
officers is contained in Swift's proxy statement for its 2000 annual meeting,
and a detailed list of the names and interests of M.S. Carriers' directors and
officers is contained in M.S. Carriers' proxy statement for its 2000 annual
meeting.
As of the date of this communication, none of the foregoing participants
individually beneficially owns in excess of 5% of Swift's common stock, or 5% of
M.S. Carriers' common stock, except that Jerry Moyes, CEO of Swift beneficially
owns more than 5% of the common stock of Swift and Michael S. Starnes, CEO of
M.S. Carriers, beneficially owns more than 5% of the common stock of M.S.
Carriers. Certain employees of M.S. Carriers, including participants, may
receive accelerated vesting of their stock options in connection with the merger
in accordance with their existing stock option agreements. In addition, certain
officers of M.S. Carriers, as a condition to the closing of the merger, will
enter into employment agreements that will become effective upon completion of
the merger. A description of the employment agreements will be contained in the
joint proxy statement/prospectus.
The communication filed herewith is a press release of M.S. Carriers issued
April 17, 2001.
FINAL FOR RELEASE
M.S. Carriers, Inc. Reports Increase In Revenue In First Quarter 2001
Contact: Joe Barrow (901) 344-4401
Memphis, Tenn. (April 17, 2001) -- M.S. Carriers, Inc. (NASDAQ: MSCA), an
irregular route truckload carrier, reports the following results for the quarter
ending March 31, 2001:
Three Months Ended March 31
2001 2000 % Change
Revenues $ 182.2 $ 167.1 9.0%
Operating Income $ 6.7 $ 9.9 -31.8%
Net Income $ 1.1 $ 4.6 -77.0%
Diluted Earnings Per Share $ 0.09 $ 0.38 -76.3%
(In millions except per share data)
Operating revenues for the first quarter of 2001 increased nine percent to
$182.2 million from $167.1 million in the same period 2000. Operating income for
the first quarter of 2001 was $6.7 million, a 31.8 percent decrease from $9.9
million in the same period 2000. Net income for the quarter ending March 31,
2001 was $1.1 million, a 77.0 percent decrease from $4.6 million in the first
quarter of 2000. Diluted earnings per share for the first quarter of 2001 were
nine cents, a decrease of 76.3 percent from 38 cents for the same quarter last
year.
Mike Starnes, chairman and chief executive officer said: "Softness in the
truckload freight markets during the first quarter of 2001 lowered our operating
margins primarily through a greater percentage of non-revenue miles. The months
of January and February 2001 were particularly affected by this factor. Market
conditions improved in March but were still down compared to last year.
"We are progressing with the merger with Swift Transportation that was announced
December 11, 2000. During this quarter, M.S. Carriers accrued $0.02 per share
for merger related expenses. We expect to close the merger in the second quarter
of 2001."
M.S. Carriers will hold a conference call on April 18, 2001 at 9:00a.m. CDT
regarding the first quarter earnings. The call may be accessed at (888) 423-3275
in the United States or (612) 332-0418 Internationally. The conference call will
be available for replay from 12:30 p.m. CDT, April 18, 2001 until 12:00 p.m.
CDT, April 25, 2001 at (800) 475-6701 in the United States and (320) 365-3844
Internationally using access code 582787.
This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. This
information is in accordance with the company's current expectations and is
subject to certain risks and uncertainties that could cause actual results to
differ materially from those set forth in the forward-looking statements. With
respect to M.S. Carriers' financial results these statements include, but are
not limited to: M.S. Carriers will have reasonable success recruiting and
retaining experienced drivers and owner operators at the company's current
compensation level; demand and pricing for the markets served by M.S. Carriers
will remain at current levels; fuel will remain available and without rapid
price fluctuations; and the company's accident experience will remain at
historical levels. With respect to the proposed merger transaction with Swift
these uncertainties include, without limitation, the following: the inability to
obtain governmental approvals of the merger on the proposed terms and schedule;
the failure of M.S. Carriers and Swift stockholders to approve the merger; the
risk that the businesses will not be integrated successfully; the risk that the
revenue synergies and costs savings anticipated from the merger may not be fully
realized or may take longer to realize than expected; the risk that additional
insurance and claims reserves and expenses may be incurred; disruptions from the
merger making it more difficult to maintain relationships with customers,
employees or suppliers; and increased competition and its effects on pricing,
spending, third-party relationships and revenues. Additional factors that could
cause results to differ materially from those described in the forward-looking
statements can be found in the 2000 Annual Report on Form 10-K of M.S. Carriers
with the Securities Exchange Commission.
M.S. CARRIERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
31-Mar-01 31-Dec-00
ASSETS
CURRENT ASSETS:
CASH & CASH EQUIV. $ 287,532 $ 442,188
ACCTS RECEIVABLE:
TRADE, NET 83,785,713 84,547,281
AFFILIATE 11,007,081
OFFICERS & EMPLOYEES 1,718,019 1,657,217
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85,503,732 97,211,579
RECOVERABLE INCOME TAXES 5,991,776 3,080,972
DEFERRED INCOME TAXES 14,078,000 14,113,152
PREPAID EXPENSES & OTHER 13,800,525 8,590,836
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TOTAL CURRENT ASSETS 119,661,565 123,438,727
PROPERTY & EQUIPMENT
LAND & LAND IMPROVEMENTS 13,491,942 13,469,040
BUILDINGS 40,016,991 39,987,066
REVENUE EQUIPMENT 566,742,379 567,967,605
SERVICE EQUIPMENT & OTHER 56,522,084 56,118,261
CONSTRUCTION IN PROGRESS 2,976,729 2,895,443
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679,750,125 680,437,415
LESS ACCUMULATED DEPR & AMORTIZATION 218,730,253 204,637,683
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461,019,872 475,799,732
OTHER ASSETS 20,961,393 21,213,310
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TOTAL ASSETS $ 601,642,830 $ 620,451,769
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LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
ACCOUNTS PAYABLE:
TRADE, NET $ 5,298,319 $ 7,398,017
AFFILIATE 953,385
ACCRUED COMPENSATION AND RELATED COSTS 7,395,997 4,611,314
ACCRUED EXPENSES 15,465,644 13,139,878
CLAIMS PAYABLE 33,752,269 33,842,957
CURR. MATURITIES OF L.T. DEBT 61,171,858 65,558,795
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TOTAL CURRENT LIABILITIES 124,037,472 124,550,961
FAIR MARKET VALUE OF INTEREST RATE SWAPS 3,039,900
LONG-TERM DEBT, LESS CURRENT MATURITIES 186,743,933 207,816,118
DEFERRED INCOME TAXES 70,258,516 69,929,823
STOCKHOLDERS' EQUITY:
COMMON STOCK 112,341 111,685
ADD. PAID IN CAPITAL 61,868,748 60,567,768
RETAINED EARNINGS 161,384,911 160,321,332
NOTES RECEIVABLE FROM OFFICERS (851,719) (851,719)
CUMULATIVE OTHER COMPREHENSIVE LOSS (4,951,272) (1,994,199)
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TOTAL STOCKHOLDERS' EQUITY 217,563,009 218,154,867
-------------- -------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 601,642,830 $ 620,451,769
============== =============
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M.S. CARRIERS, INC. AND SUBSIDIARIES
STATEMENTS OF INCOME
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Three Months Ended
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31-Mar
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2001 2000
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Percent of Percent of
Revenue Revenue
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Operating Revenues $182,183,334 $167,068,901
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Operating Expenses:
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Salaries, wages and benefits 66,182,115 36.33% 53,042,521 31.75%
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Operations and maintenance 38,481,921 21.12% 31,511,492 18.86%
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Taxes and licenses 3,890,545 2.14% 3,225,958 1.93%
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Insurance and claims 8,294,694 4.55% 4,991,473 2.99%
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Communications and utilities 2,496,661 1.37% 2,071,188 1.24%
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Depreciation and amortization 16,539,574 9.08% 18,208,486 10.90%
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Gain on disposal of revenue equipment -139,340 -0.08% -12,934 -0.01%
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Rent and purchased transportation 37,440,981 20.55% 42,917,026 25.69%
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Other 2,269,418 1.25% 1,247,191 0.75%
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Total Operating Expenses 175,456,569 96.31% 157,202,401 94.09%
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Operating Income 6,726,765 3.69% 9,866,500 5.91%
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Other Expense (income):
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Interest Expense 4,740,860 2.60% 3,424,101 2.05%
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Other 194,637 0.11% -630,361 -0.38%
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4,935,497 2.71% 2,793,740 1.67%
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Income before income taxes 1,791,268 0.98% 7,072,760 4.23%
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Income taxes 727,689 0.40% 2,458,472 1.47%
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Net income $1,063,579 0.58% $4,614,288 2.76%
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Diluted Earnings per share $0.09 $0.38
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Common Shares & Common Share Equivalents 11,732,694 12,189,276
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Note: Due to the requirements of FAB 101, for 2001 fuel surcharges are now classified as revenue instead of offsetting fuel
expense in operations and maintenance. For comparability, the statement of income for 2000 has been modified to reflect this
change.
M.S. CARRIERS, INC. AND SUBSIDIARIES
OPERATING STATISTICS
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Three Months Ended
31-Mar
2001 2000
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Total Miles 140,082,130 123,738,440
Empty Miles 21,267,241 16,645,696
Empty Mile % 15.18% 13.45%
Trucking Revenue $174,019,380 $150,652,616
Revenue per Mile 1.242 1.218
Revenue per Loaded Mile 1.465 1.407
Ending Company Tractors 3,704 3,430
Ending Leased Owner Operators 689 602
Ending Owner Operators 614 685
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Ending Tractors 5,007 4,717
Beginning Company Tractors 3,733 3,283
Beginning Leased Owner Operators 718 562
Beginning Owner Operators 678 743
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Beginning Tractors 5,129 4,588
Utilization 2,169 2,042
Revenue per Tractor per Week $ 2,695 $ 2,486
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M.S. CARRIERS, INC. AND SUBSIDIARIES
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Product Revenue Statistics
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Three Months Ended
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31-Mar
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Percent of
2001 2000 Change
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Domestic Irregular Route Trucking $104,780 $92,373 13%
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International Irregular Route Trucking 35,570 33,887 5%
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Dedicated Route Trucking 33,669 24,393 38%
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Trucking Revenue 174,019 150,653 16%
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Logistics Revenue - 17,261 -100%
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Inter Divisional Elimination and Other (1) 8,164 (845) N/A
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Total Revenue $ 182,183 $ 167,069 9%
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Trucking Operating Ratio 96.3% 93.9% -2.4 points
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Logistics Operating Ratio N/A 96.1% N/A
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Total Company Operating Ratio 96.3% 94.1% -2.2 points
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(1) For 2001, this includes revenues from the lease purchase program and fuel surcharges. For 2000, this includes intercompany
elimination for logistics revenue and fuel surcharges.
This press release is being filed with the SEC pursuant to Rule 425 under the
Securities Act of 1933.