Celadon Revenue Up, Profit DownPosted: Updated:
Indianapolis-based Celadon Group Inc. (NYSE: CGI) is reporting fiscal first quarter net income of $6.6 million, down from $8.3 million during the same period the previous year. Despite the lower profit, the company says revenue increased due to multiple acquisitions and establishing a training program at its headquarters.
October 29, 2013
Indianapolis, Ind. -- Celadon Group Inc. (NYSE: CGI) today reported its financial and operating results for the three months ended September 30, 2013, the first fiscal quarter of the Company’s fiscal year ending June 30, 2014.
Revenue for the quarter increased 14.2% to $175.1 million in the 2014 quarter from $153.3 million in the 2013 quarter. Freight revenue, which excludes fuel surcharges, increased 16.3% to $142.0 million in the 2014 quarter from $122.1 million in the 2013 quarter. Net income decreased 20.5% to $6.6 million in the 2014 quarter from $8.3 million for the same quarter last year. Earnings per diluted share decreased 22.2% to $0.28 in the 2014 quarter from $0.36 for the same quarter last year.
Paul Will, President and Chief Executive Officer, made the following comments: "We are pleased with our overall improvement in our operating statistics. The increase in average seated tractor count of 288, or 10.5%, to 3,024 in the September 2013 quarter compared with 2,736 in the September 2013 quarter was a significant operating metric improvement that resulted in increased revenue for the quarter. This increase was a result of expanding our recruiting efforts at terminal locations, having established a driving school and training program at our Indianapolis headquarters as well as the acquisition of select assets and liabilities of Houg Special Services, Inc. based in Commerce City, Colorado, Land Span, Inc. based in Lakeland, Florida, TCI Logistics, Inc. based in Kernersville, North Carolina and Hoss Cartage and Distribution, Inc. based in Ayr, Ontario, which were all completed in the back half of the September 2013 quarter. The business generated from these acquisitions should help us continue to add truck capacity and density in our current operating lanes, while benefiting from future operating synergies over time. This strategy should position Celadon to better serve our customers now and especially in the near future as we believe truck capacity will continue to tighten for the truckload industry. Our average revenue per tractor per week increased $14, or 0.5%, to $2,913 in the September 2013 quarter, from $2,899 in the September 2012 quarter. In addition, our average revenue per loaded mile increased to $1.597 per mile in the September 2013 quarter from $1.562 in the September 2012 quarter.
“The average age of the Company’s tractor fleet was 1.4 years as of September 2013 and the average age of the trailer fleet was 2.4 years as of September 2013. Gains on sales of assets were $1.2 million in the September 2013 quarter compared with $1.9 million in the September 2012 quarter. The Company has completed its current tractor and trailer refresh cycle.
"We believe we have put in place a lean cost structure, upgraded and expanded the fleet to one of the newest in the industry, broadened service offerings to customers, and positioned the Company to allow it to expand margins and profitability.
"Our balance sheet remains solid and we retain significant liquidity to support the growth of our business. At September 30, 2013, we had $234.3 million of stockholders' equity and our earnings before interest, taxes, depreciation and amortization was $26.7 million in the current September 2013 quarter. Our increased cash flow generated from operations will allow us to effectively continue to execute on our growth strategy."
On October 24, 2013, the Board of Directors approved a regular cash dividend to shareholders for the quarter ending December 31, 2013. The quarterly cash dividend of two cents ($0.02) per share of common stock will be payable on January 17, 2014 to shareholders of record at the close of business on January 6, 2014.
Conference Call Information
An investor conference call is scheduled for Tuesday, October, 29, at 11:00 a.m. ET. Management will discuss the results of the quarter. To listen and participate in a questions-and-answers exchange, simply dial 888-517-2470 (or 630-827-6818) pin number 7416832 a few minutes prior to the start time. A replay will be available through November 29 at http://investors.celadontrucking.com.
Celadon Group Inc. (www.celadongroup.com), through its subsidiaries, primarily provides long-haul, full-truckload freight service across the United States, Canada and Mexico. The company also owns Celadon Logistics Services, which provides freight brokerage; Celadon Dedicated Services, which provides supply chain management solutions, such as warehousing and dedicated fleet services.
Source: Celadon Group Inc.