Celadon Reports Lower Earnings
Indianapolis-based Celadon Group Inc. (NYSE: CGI) is reporting a fiscal fourth quarter profit of $7.2 million, compared to $9 million for the same period the previous year. Despite the decrease, Chief Executive Officer Paul Will credits expanded recruiting efforts and a recently-established training school for a quarterly boost in several operating metrics. July 29, 2013
INDIANAPOLIS, Ind. - Celadon Group Inc. (NYSE: CGI) today reported its financial and operating results for the three months ended June 30, 2013, the fourth fiscal quarter of the Company’s fiscal year ending June 30, 2013.
Revenue for the quarter increased 3.2% to $162.6 million in the 2013 quarter from $157.5 million in the 2012 quarter. Freight revenue, which excludes fuel surcharges, increased 5.7% to $131.4 million in the 2013 quarter from $124.3 million in the 2012 quarter. Net income decreased 20.0% to $7.2 million in the 2013 quarter from $9.0 million for the same quarter last year. Earnings per diluted share decreased 20.5% to $0.31 in the 2013 quarter from $0.39 for the same quarter last year.
For the fiscal year ended June 30, 2013, revenue increased 2.4% to $613.6 million in 2013 from $599.0 million for the same period last year. Freight revenue, which excludes fuel surcharges, increased 2.9% to $489.0 million in 2013 from $475.1 million for the same period last year. Net income increased 7.1% to $27.3 million in 2013 from $25.5 million for the same period last year. Earnings per diluted share increased 4.5% to $1.17 in 2013 from $1.12 for the same period 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 146, or 5.6%, to 2,770 in the June 2013 quarter compared with 2,624 in the March 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 previously announced Hyndman acquisition which was completed in May 2013. Our average revenue per tractor per week increased $43, or 1.5%, to $2,941 in the June 2013 quarter, from $2,898 in the March 2013 quarter. In addition, our average revenue per loaded mile increased to $1.59 per mile in the June 2013 quarter from $1.55 in the June 2012 quarter.
“The average age of the Company’s tractor fleet was 1.4 years as of June 2013, compared to 1.5 years as of June 2012 and the average age of the trailer fleet was 2.2 years as of June 2013 compared with 2.8 years as of June 2012. Gains on sales of assets were $0.6 million in the June 2013 quarter compared with $3.2 million in the June 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 June 30, 2013, we had $225.7 million of stockholders' equity and our earnings before interest, taxes, depreciation and amortization was $27.7 million in the current June 2013 quarter. Our increased cash flow generated from operations will allow us to effectively continue to execute on our growth strategy.”
On July 28, 2013, the Board of Directors approved a regular cash dividend to shareholders for the quarter ending June 30, 2013. The quarterly cash dividend of two cents ($0.02) per share of common stock will be payable on October 18, 2013 to shareholders of record at the close of business on October 4, 2013.
Conference Call Information
An investor conference call is scheduled for Tuesday, July, 30, 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 855-410-0553 (or 646-583-7389) pin number 720996 a few minutes prior to the start time. A replay will be available through August 30 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.
Group: Celadon Group Inc.