Welcome!

News Feed Item

Celadon Group Reports June Quarter And Full Fiscal Year Results And Declares Dividend

INDIANAPOLIS, Aug. 6, 2014 /PRNewswire/ -- Celadon Group Inc. (NYSE: CGI) today reported its financial and operating results for the three months and fiscal year ended June 30, 2014, the fourth fiscal quarter of the Company's fiscal year ending June 30, 2014.

Celadon Logo

 

Revenue for the quarter increased 21.4% to $197.4 million in the June 2014 quarter from $162.6 million in the June 2013 quarter.  Freight revenue, which excludes fuel surcharges, increased 22.3% to $160.7 million in the June 2014 quarter from $131.4 million in the June 2013 quarter.  Net income increased $8.3 million to $15.5 million in the 2014 quarter from $7.2 million for the same quarter last year.  Earnings per diluted share increased to $0.65 in the June 2014 period from $0.31 for the same quarter last year.  Included in net income and earnings per share was approximately $8.8 million and $0.36 related to the sale of the minority ownership interest in Truckers, B2B, LLC in the 2014 quarter.

For the twelve months ended June 30, 2014, revenue increased 23.7% to $759.3 million in 2014 from $613.6 million for the same period last year.  Freight revenue, which excludes fuel surcharges, increased 25.8% to $615.4 million in 2014 from $489.0 million for the same period last year. Net income increased 12.4% to $30.7 million in 2014 from $27.3 million for the same period last year.  Earnings per diluted share increased to $1.29 in 2014 from $1.17 for the same period last year.

Paul Will, President and Chief Executive Officer, made the following comments:  "We were pleased with the improvements we have seen in our operating metrics in the June 2014 quarter.  We have seen strong freight volumes and an increasing seated count at the end of the quarter, which has continued into the September 2014 quarter.  The June 2014 quarter was negatively impacted by approximately $1.4 million, or $0.03 per share, for severance and contractual buyouts primarily related to previous acquisitions as we continue to generate synergies and cost savings from the integration of these acquisitions.  Operations, maintenance and fuel expenses increased primarily due to the older equipment associated with our most recent acquisitions and aging equipment associated with our existing fleet, which will be improved significantly in future periods as we continue to refresh the tractor fleet.

"The average age of the Company's tractor fleet, which includes tractors from recent acquisitions, has increased to 1.8 years as of June 2014.  We took delivery of 225 trucks during the second half of the June quarter and have on order 575 trucks to replace the acquisition equipment and continue to refresh the remaining fleet, which we expect will improve fuel economy and help bring down our overall maintenance costs to more historical levels.  Gains on sales of assets were $2.2 million in the June 2014 quarter compared with $0.6 million in the June 2013 quarter. 

"We increased our average seated tractor count by 421, or 15%, to 3,191 in the June 2014 quarter compared to 2,770 in the June 2013 quarter, 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 that now has several locations and our acquisitions over the past year.  We believe this will position us well as truck capacity is being constrained by an extremely challenging driver market, as well as the increase in fleet failures due to higher equipment costs and a burdening government regulatory environment.  We believe the favorable freight trend will continue due to these factors.

"Our primary focus over the past year has been to expand our service offerings to our customers and grow our capacity of seated tractors, which has resulted in freight revenue growth for the June 2014 quarter of approximately 22% over the June 2013 quarter.  This growth 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.  The business generated from acquisitions has been instrumental in our ability to add truck capacity and density in our current operating lanes.  Although we have incurred transition and integration costs in the June 2014 quarter, we believe these costs and future synergies related to these acquisitions should benefit Celadon in future quarters. 

"Our average revenue per tractor per week increased $67, or 2.3%, to $3,001 in the June 2014 quarter, from $2,934 in the June 2013 quarter.  This was attributable to the increased tractor utilization and revenue per loaded mile during the June 2014 quarter.  Our average revenue per loaded mile increased to $1.62 per mile in the June 2014 quarter from $1.59 in the June 2013 quarter.

"Our balance sheet remains solid and we retain significant liquidity to support the growth of our business. At June 30, 2014 we had $259.0 million of stockholders equity.  Our cash flow generated from operations will allow us to effectively continue to execute on our growth strategy."

On August 6, 2014, the Board of Directors approved a regular cash dividend to shareholders for the quarter ending September 30, 2014.  The quarterly cash dividend of two cents ($0.02) per share of common stock will be payable on October 17, 2014 to shareholders of record at the close of business on October 3, 2014.

Conference Call Information

An investor conference call is scheduled for Thursday, August 7 at 11:00 a.m. ET.  Management will discuss the results of the quarter.  To pre-register for the call please follow the links on our website at http://investors.celadontrucking.com.  For those without internet access or unable to pre-register, please dial in by calling  1-866-652-5200 (or 1-412-317-6060) a few minutes prior to the start time.  A replay will be available through September 8 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. The company also owns Celadon Logistics Services, which provides freight brokerage services, freight management, as well as supply chain management solutions, including warehousing and distribution services.

This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may be identified by their use of terms or phrases such as "expects," "estimates," "projects," "believes," "anticipates," "plans," "intends," and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements.  Actual results may differ from those set forth in the forward-looking statements.  The following factors, among others, could cause actual results to differ materially from those in forward-looking statements: the risk that our perception of additional capacity due to seating trucks and perceived benefits thereof are inaccurate; the risk that our perception of changes in our customer base and perceived benefits thereto are inaccurate; the risk that managing our tractor fleet age does not result in greater flexibility and lower operating expenses; excess tractor and trailer capacity in the trucking industry; decreased demand for our services or loss of one or more of our major customers; surplus inventories; recessionary economic cycles and downturns in customers' business cycles; strikes, work slow downs, or work stoppages at our facilities, or at customer, port, border crossing, or other shipping related facilities; increases in compensation for and difficulty in attracting and retaining qualified drivers and independent contractors; increases in insurance premiums and deductible amounts; elevated experience in the frequency or severity of claims relating to accident, cargo, workers' compensation, health, and other matters; fluctuations in claims expenses that result from high self-insured retention amounts and differences between estimates used in establishing and adjusting claims reserves and actual results over time; increases or rapid fluctuations in fuel prices, as well as fluctuations in hedging activities and surcharge collection, the volume and terms of diesel purchase commitment, interest rates, fuel taxes, tolls, and license and registration fees; fluctuations in foreign currency exchange rates; increases in the prices paid for new revenue equipment and changes in the resale value of our used equipment; increases in interest rates or decreased availability of capital or other sources of financing for revenue equipment; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, and intermodal competitors; regulatory requirements that increase costs or decrease efficiency, including revised hours-of-service requirements for drivers and new emissions control regulations; our ability to identify acceptable acquisition candidates, consummate acquisitions, and integrate acquired operations; the timing of, and any rules relating to, the opening of the border to Mexican drivers; challenges associated with doing business internationally; our ability to retain key employees; and the effects of actual or threatened military action or terrorist attacks or responses, including security measures that may impede shipping efficiency, especially at border crossings.

Readers should review and consider these factors along with the various disclosures by the company in its press releases, stockholder reports, and filings with the Securities Exchange Commission.  We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information.

- tables follow -

 

CELADON GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands except per share amounts)

(Unaudited)








For the three months ended


For the year ended



June 30,


June 30,



2014


2013


2014


2013










REVENUE:









        Freight revenue


$160,662


$131,388


$615,411


$489,035

        Fuel surcharge revenue


36,724


31,213


143,900


124,613

                Total revenue


197,386


162,601


759,311


613,648










OPERATING EXPENSES:









        Salaries, wages, and employee benefits


56,432


43,111


209,938


165,485

        Fuel                                                                                                               


44,391


34,124


171,695


143,807

        Purchased transportation


43,334


35,953


173,940


125,741

        Revenue equipment rentals


1,632


1,670


6,621


6,973

        Operations and maintenance


12,334


8,979


49,709


32,669

        Insurance and claims


4,900


4,267


19,252


15,251

        Depreciation and amortization


13,425


14,763


57,843


50,767

        Communications and utilities


1,733


1,384


6,409


5,408

        Operating taxes and licenses


3,737


2,693


13,275


10,451

        General and other operating


3,290


2,752


11,195


8,424

                Total operating expenses


185,208


149,696


719,877


565,976










                Operating income


12,178


12,905


39,434


48,672










Interest expense


1,227


1,188


5,071


4,931

Interest income


(4)


---


(12)


---

Other income, net


(15,295)


(315)


(15,996)


(994)

                Income before income taxes


26,250


12,032


50,371


44,735

Income tax expense


10,743


4,788


19,690


17,471

Net income


$15,507


$7,244


$30,681


$27,264










Income per common share:









        Diluted 


$0.65


$0.31


$1.29


$1.17

        Basic 


$0.67


$0.32


$1.33


$1.20










        Diluted weighted average shares outstanding


23,874


23,617


23,755


23,393

        Basic weighted average shares outstanding


23,127


22,861


23,014


22,640

 

CELADON GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, 2014 and June 30, 2013

(Dollars and shares in thousands except par value)






(unaudited)




June 30,


June 30,

ASSETS

2014


2013





Current assets:




        Cash and cash equivalents

$15,508


$1,315

        Trade receivables, net of allowance for doubtful accounts of  $942 and $919 at June 30, 2014 and June 30, 2013, respectively

105,968


77,623

        Prepaid expenses and other current assets

26,288


13,434

        Tires in service

2,227


1,245

        Equipment for resale

3,148


9,923

        Income tax receivable

6,395


9,506

        Deferred income taxes

7,651


4,342

Total current assets

167,185


117,388

Property and equipment

643,888


612,236

Less accumulated depreciation and amortization

151,059


115,366

Net property and equipment

492,829


496,870

Tires in service

2,720


1,785

Goodwill

22,810


17,730

Investment in joint venture

---


4,604

Other assets

5,271


2,785

Total assets

$690,815


$641,162





LIABILITIES AND STOCKHOLDERS' EQUITY








Current liabilities:




        Accounts payable

$11,017


$10,401

        Accrued salaries and benefits

13,902


11,197

        Accrued insurance and claims

11,568


10,092

        Accrued fuel expense

11,306


7,461

        Other accrued expenses

33,453


20,070

       Current maturities long term debt

3,690


---

       Current maturities of capital  lease obligations

67,439


25,669

Total current liabilities

152,375


84,890

         Long-term debt

83,497


78,137

        Capital lease obligations, net of current maturities

119,665


190,625

        Deferred income taxes

76,275


61,821

Stockholders' equity:




        Common stock, $0.033 par value, authorized  40,000 shares; issued and outstanding  24,060 and 23,887 shares at June 30, 2014 and June 30, 2013, respectively

794


788

        Treasury stock at cost; 500 and 696 shares at June 30, 2014 and June 30, 2013, respectively

(3,453)


(4,811)

        Additional paid-in capital

107,579


103,749

        Retained earnings

160,068


131,224

        Accumulated other comprehensive loss

(5,985)


(5,261)

Total stockholders' equity

259,003


225,689

Total liabilities and stockholders' equity

$690,815


$641,162

 

 

Key Operating Statistics





For the three months ended

For the year ended


June 30,

June 30,


2014

2013

2014

2013

 

 

Average revenue per loaded mile (*)

 

 

$1.624

 

 

$1.592

 

 

$1.613

 

 

$1.571

Average revenue per total mile (*)

$1.439

$1.410

$1.419

$1.399

Average revenue per tractor per week (*)

$3,001

$2,934

$2,884

$2,883

Average miles per seated tractor per week(**)

2,086

2,081

2,032

2,061

Average seated line-haul tractors (**)

3,191

2,770

3,268

2,707

*Freight revenue excluding fuel surcharge.





**Total seated fleet, including equipment operated by independent contractors and our Mexican subsidiary, Jaguar.






Adjusted Trucking Revenue (^)

$161,239

$136,871

$633,644

$530,503

Asset Light Revenue

16,760

11,928

58,430

43,960

Intermodal Revenue

11,113

6,980

38,846

22,432

Other Revenue

8,273

6,822

28,392

16,752

Total Revenue

$197,386

$162,601

$759,311

$613,647

^Trucking Revenue for US, Canada, Mexico.  Includes Fuel Surcharge.






 

For more information:
Joe Weigel
Director of Marketing & Communications
(800) CELADON Ext. 7006
(317) 972-7006 Direct
[email protected]

Logo - http://photos.prnewswire.com/prnh/20140416/75696

SOURCE Celadon Group Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
As cloud adoption continues to transform business, today's global enterprises are challenged with managing a growing amount of information living outside of the data center. The rapid adoption of IoT and increasingly mobile workforce are exacerbating the problem. Ensuring secure data sharing and efficient backup poses capacity and bandwidth considerations as well as policy and regulatory compliance issues.
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
SYS-CON Events announced today that Outscale will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outscale's technology makes an automated and adaptable Cloud available to businesses, supporting them in the most complex IT projects while controlling their operational aspects. You boost your IT infrastructure's reactivity, with request responses that only take a few seconds.
The 21st International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
SYS-CON Events announced today that Interoute has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Interoute is the owner operator of Europe's largest network and a global cloud services platform, which encompasses over 70,000 km of lit fiber, 15 data centers, 17 virtual data centers and 33 colocation centers, with connections to 195 additional partner data centers. Our full-service Unifie...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs ofte...
SYS-CON Events announced today that Hitachi Data Systems, a wholly owned subsidiary of Hitachi LTD., will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City. Hitachi Data Systems (HDS) will be featuring the Hitachi Content Platform (HCP) portfolio. This is the industry’s only offering that allows organizations to bring together object storage, file sync and share, cloud storage gateways, and sophisticated search and...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Existing Big Data solutions are mainly focused on the discovery and analysis of data. The solutions are scalable and highly available but tedious when swapping in and swapping out occurs in disarray and thrashing takes place. The resolution for thrashing through machine learning algorithms and support nomenclature is through simple techniques. Organizations that have been collecting large customer data are increasingly seeing the need to use the data for swapping in and out and thrashing occurs ...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
While presenting own advanced Robo-Advisory Platform, Michał Różański, Managing Partner at EARP and CEO at Empirica, will illustrate the most important issues of building tailored FinTech software in his session at 20th Cloud Expo. He will share experiences we have gained for over 6 years of developing solutions for financial institutions and FinTech companies, including robo-advisors. We welcome all FinTech innovators interested in how properly implemented technology can move their businesses f...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...