Profit up at CeladonPosted: Updated:
Indianapolis-based Celadon Group Inc. (NYSE: CGI) is reporting net income of $8 million for its fiscal first quarter, compared to $6.6 million in the same quarter the previous year. Chief Executive Officer Paul Will says increased cash flow will allow the company to continue to execute its growth strategy. October 29, 2014
INDIANAPOLIS, Ind. - Celadon Group Inc. (NYSE : CGI) today reported its financial and operating results for the three months ended September 30, 2014, the first quarter of the Company's fiscal year ending June 30, 2015.
Revenue for the quarter increased 10.5% to $193.4 million in the 2015 quarter from $175.1 million in the 2014 quarter. Freight revenue, which excludes fuel surcharges, increased 11.1% to $157.7 million in the 2015 quarter from $142.0 million in the 2014 quarter. Net income increased 21.2% to $8.0 million in the 2015 quarter from $6.6 million for the same quarter last year. Earnings per diluted share increased 21.4% to $0.34 in the 2015 quarter from $0.28 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 231, or 7.6%, to 3,255 in the September 2014 quarter compared with 3,024 in the September 2013 quarter was a significant operating metric improvement that resulted in increased revenue for the quarter. Our average revenue per tractor per week increased $64, or 2.2%, to $2,977 in the September 2014 quarter, from $2,913 in the September 2013 quarter. In addition, our average revenue per loaded mile increased to $1.633 per mile in the September 2014 quarter from $1.597 in the September 2013 quarter.
"We continue to work on driver recruitment and retention as the market remains challenging for qualified drivers. As a result, our costs related to driver training, advertising for experienced drivers, and other recruitment and retention efforts have continued to increase. This, along with economic and safety regulatory issues, has resulted in more constrained truckload capacity for shippers. Their understanding and willingness to adjust rates upward reflects the collective capacity and service challenges currently facing the industry. In addition to initiating and implementing sustainable rate increases, we are continuing to work on cost reduction initiatives as we strive to improve our operating results.
"The average age of the Company's tractor fleet was 1.7 years as of September 2014 and the average age of the trailer fleet was 3.6 years as of September 2014. Gains on sales of assets were $4.6 million in the September 2014 quarter compared with $1.2 million in the September 2013 quarter. The Company is currently in the process of refreshing its tractor and trailer fleets. Included in the gains on sales of assets is equipment sold independent from the disposition of equipment operated in the existing Celadon fleet.
"Our balance sheet remains solid and we retain significant liquidity to support the growth of our business. At September 30, 2014, we had $264.3 million of stockholders' equity and our earnings before interest, taxes, depreciation and amortization was $29.0 million in the current September 2014 quarter. Our increased cash flow generated from operations will allow us to effectively continue to execute on our growth strategy."
On October 29, 2014, the Board of Directors approved a regular cash dividend to shareholders for the quarter ending December 31, 2014. The quarterly cash dividend of two cents ($0.02) per share of common stock will be payable on January 23, 2015 to shareholders of record at the close of business on January 9, 2015.
Conference Call Information
Participants can pre-register for the conference call by navigating to Celadon's Investor Relations Website, http://investors.celadontrucking.com, under the report center menu option. For those without internet access or unable to pre-register may join the conference by dialing 1-412-317-6060 or 1-866-652-5200. A replay of the webcast will be available through December 1, 2014 at http://investors.celadontrucking.com.
Celadon Group, Inc. (www.celadongroup.com), through its subsidiaries, provides long-haul, regional, local, dedicated, intermodal, temperature-controlled, flatbed and expedited freight service across the United States, Canada and Mexico. Celadon also owns Celadon Logistics Services, which provides freight brokerage services, freight management, as well as supply chain management solutions, including warehousing and distribution.
Source: Celadon Group Inc.