Exhibit 99.1
Boyd Bros. Reports Third Quarter Results
CLAYTON, Ala.--(BUSINESS WIRE)--Oct. 31, 2003--Boyd Bros.
Transportation Inc. (NASDAQ/SmallCap: BOYD) today reported financial
results for the third quarter and nine-month period ended September
30, 2003.
Operating revenues for the third quarter ended September 30, 2003,
rose 2% to $34,123,212 from $33,518,768 in the comparable period last
year. The Company posted a net loss for the third quarter of $421,516
or $0.16 per diluted share versus net income of $495,074 or $0.18 per
diluted share in the same period last year.
For the first nine months of 2003, operating revenues rose 4% to
$101,068,819 from $97,144,652 in the same period last year. Net income
for the first nine months of 2003 was $228,241 or $0.08 per diluted
share versus $814,493 or $0.29 per diluted share in the first nine
months of 2002.
The Company's WTI division, which is primarily structured using
owner-operators, accounted for all of Boyd Bros.' revenue growth in
the third quarter as the Boyd division, in which about three-fourths
of the equipment is company-owned, experienced a slight decline in
operating revenues for the quarter. Included in third quarter
operating revenues were fuel surcharges totaling $797,308 and $338,079
in 2003 and 2002, respectively. Logistics revenues totaled $2,253,925
in the third quarter of 2003 versus $1,960,202 in the third quarter of
2002. Operating revenues for the first nine months of 2003 included
fuel surcharges totaling $2,812,162 versus $624,066 in the comparable
2002 period. Logistics revenues totaled $7,414,557 in the first nine
months of 2003 versus $5,338,307 in the first nine months of 2002.
The Company's third quarter loss and lower year-to-date profits
primarily reflected higher insurance and claims expense related to the
establishment of preliminary reserves for two accidents during the
quarter, involving Boyd division company-owned trucks, which resulted
in third-party fatalities. The Company is largely self-insured for
such accident claims. Also during the quarter, the Boyd division
increased its provision for potential bad debts by approximately
$460,000 on owner-operator leases. These items, along with higher
owner-operator costs related to increased revenues in the WTI
division, were partially offset by moderating fuel costs across the
Company's operations and lower interest expense.
Commenting on the announcement, Gail B. Cooper, President and
Chief Executive Officer, said, "During the third quarter, we witnessed
several encouraging trends that reinforce our view that the economy -
and our markets - continue to strengthen. Revenues from our WTI
division advanced 22% for the quarter versus the same period last year
while logistics revenues increased 15%. On the cost side, we were
pleased to see the price of diesel fuel continue to decline from peak
levels earlier this year, resulting in overall lower fuel costs for
the quarter.
"Despite these generally favorable developments, the quarter was
not without its challenges," Cooper continued. "Obviously, our
greatest concern now centers on those affected by the two accidents
that occurred during the quarter. While investigations of the events
are ongoing, we considered it prudent to strengthen our insurance
reserves during the quarter. We also determined during the quarter
that an addition to our reserve was needed for possible losses on
sales-type leases, which we have entered into with many of our
owner-operators, considering the higher turnover we have experienced
among our owner-operators. However, we remain hopeful that these
steps, together with the outlook for continued strengthening in the
economy, will help put us back on course for a return to profitable
operations in the fourth quarter and for the full year 2003."
Boyd Bros. Transportation Inc. is one of the largest flatbed
trucking companies in the United States. The Company provides
transportation services to high-volume, time-sensitive customers,
primarily in the steel and building materials industries, and operates
throughout most of the continental United States. For more information
about the Company, visit Boyd Bros. on the Internet at
www.boydbros.com.
With the exception of historical information, the matters
discussed and statements made in this release constitute
"forward-looking statements" and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Specifically, this release contains forward-looking statements
regarding expectations for the performance of the freight business and
the economy and results in future quarters and for the year. Whenever
possible, the Company has identified these forward-looking statements
(as defined in Section 21E of the Securities Exchange Act of 1934) by
words such as "hopeful," "outlook, " "expects," "anticipates," "may,"
"believes," "projects," "intends," and words of similar import. Such
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results, performance or achievements of
the Company to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. In particular, there can be no assurance
that business conditions and the economy will improve, including the
transportation and construction sectors in particular; that costs
associated with increased insurance and claims costs, and liability
claims for which the Company is self-insured will not have a material
adverse effect on the Company; that the Company will be able to
control internal costs, particularly rising fuel costs that may or may
not be passed on to the Company's customers; or that departures and
defaults by owner-operators will not have a material adverse effect on
the Company. These assumptions, risks and uncertainties included, but
are not limited to, those discussed or indicated in all documents
filed by the Company with the Securities and Exchange Commission,
including the Company's Annual Report on Form 10-K for the year ended
December 31, 2002. The Company expressly disclaims any obligation to
update publicly any forward-looking statements, whether as a result of
new information, future events or otherwise.
BOYD BROS. TRANSPORTATION INC.
Unaudited Consolidated Statements of Income
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- --------------------------
2003 2002 2003 2002
----------- ----------- ------------ -----------
Operating
revenues $34,123,212 $33,518,768 $101,068,819 $97,144,652
Operating
expenses 34,551,496 32,176,948 99,744,806 94,327,216
----------- ----------- ------------ -----------
Operating (loss)
income (428,284) 1,341,820 1,324,013 2,817,436
Other expense (321,185) (515,494) (960,930) (1,419,642)
----------- ----------- ------------ -----------
(Loss) income
before provision
for income
taxes (749,469) 826,326 363,083 1,397,794
(Benefit)
provision for
income taxes (327,953) 331,252 134,842 583,301
----------- ----------- ------------ -----------
Net (loss)
income $ (421,516) $ 495,074 $ 228,241 $ 814,493
=========== =========== ============ ===========
Net (loss)
income per
share-basic $ (0.16) $ 0.18 $ 0.08 $ 0.30
=========== =========== ============ ===========
Net (loss)
income per
share-diluted $ (0.16) $ 0.18 $ 0.08 $ 0.29
=========== =========== ============ ===========
Weighted average
shares
outstanding:
Basic 2,711,393 2,706,781 2,710,914 2,709,122
Diluted 2,711,393 2,825,674 2,951,079 2,767,228
BOYD BROS. TRANSPORTATION INC.
Unaudited Consolidated Balance Sheets
September 30,
--------------------------
2003 2002
------------ -----------
Current assets $ 18,914,585 $19,018,496
Property and equipment, net 52,052,966 56,044,171
Other assets 13,303,655 10,387,843
------------ -----------
Total assets $ 84,271,206 $85,450,510
============ ===========
Current liabilities $ 26,150,736 $22,752,901
Long-term debt 20,739,175 22,360,460
Deferred income taxes 11,423,915 14,272,229
Stockholders' equity 25,957,380 26,064,920
------------ -----------
Total liabilities and stockholders'
equity $ 84,271,206 $85,450,510
============ ===========
CONTACT: Boyd Bros. Transportation Inc., Clayton
Richard C. Bailey, 334-775-1221