EX-99.1 2 c91440exv99w1.htm PRESS RELEASE exv99w1
 

EXHIBIT 99.1

(SMS TRANSPORTATION, INC LOGO AND NEWS RELEASE)

January 25, 2005

FOR IMMEDIATE RELEASE

SCS Transportation, Inc. Announces 2004 Results

29% Increase in Full-Year Net Income

(KANSAS CITY, Mo.) — SCS Transportation, Inc. (NASDAQ: SCST) today reported full-year 2004 revenue of $982.3 million, up 19 percent from $827.4 million in 2003. Net income increased 29 percent to $19.3 million for 2004, compared with $14.9 million in 2003. Earnings per share for 2004 were $1.26, up 27 percent from $0.99 per share the previous year.

Results for 2004 include costs of $0.08 per share related to Saia’s first-half acquisition of Clark Bros., Inc. and previously announced charges for an increase in the actuarially estimated liability of Jevic workers’ compensation claims, of which $0.18 per share related to prior-year claims. In addition, 2004 results benefited by $0.12 per share from the sale of assets.

“Our most significant strategic event in 2004 was the successful acquisition by Saia of trucking operations in the Midwest and Plains States — expanding the Saia service area for customers and adding to earnings in the first year of the integration,” said Bert Trucksess, chairman, president and chief executive officer.

“We are also pleased to report continued strong growth in core operating profitability in our second full year as an independent public company. We are optimistic about prospects for 2005, as we expect ongoing improvement from company-specific initiatives, as well as favorable industry supply-demand fundamentals,” added Trucksess.

Fourth-quarter revenue was $251.9 million, up 21 percent from $207.5 million a year earlier. Net income of $4.6 million and earnings per share of $0.30 were both unchanged from the fourth quarter of 2003. Fourth-quarter 2004 results reflect the previously announced $0.15 per share charge for an increase in the actuarially estimated liability of workers’ compensation claims at Jevic. In addition, the fourth quarter of 2004 benefited from a reduction in income taxes related to the favorable resolution of various tax matters of $0.04 per share, compared to a similar $0.06 per share benefit in the fourth quarter of 2003.

 


 

SCS Transportation Announces 2004 Results
Page 2

Operating Companies

Saia revenue was $165.6 million in the fourth quarter, up 28 percent from a year earlier. Operating income for Saia was $10.1 million, up 36 percent from the prior-year quarter. Saia’s fourth-quarter operating ratio was 93.9 percent, an improvement from 94.3 percent a year earlier. Saia less-than-truckload (LTL) tonnage rose 19 percent from the prior-year quarter and LTL revenue per hundredweight, excluding fuel surcharge, was up 3 percent. Adjusted for the pro forma effects of the Clark acquisition, Saia revenue was up 13 percent and operating income was up 25 percent, both over the fourth quarter of 2003.

Jevic fourth-quarter revenue was $86.3 million, up 11 percent from the prior-year quarter. Operating income for Jevic was $0.6 million, which includes the $3.8 million workers’ compensation charge. Excluding the workers’ compensation charge, Jevic’s fourth-quarter operating ratio improved to 94.9 percent versus 96.2 percent a year earlier due primarily to property gains. Revenue growth was boosted by strong yield performance in both LTL and truckload segments, along with modest tonnage growth.

Outlook and Financial Position

Based on current trends and conditions, management expects 2005 earnings per share in a range of $1.65 to $1.80.

The Company is planning for net capital expenditures of approximately $60 million in 2005 and is evaluating several strategic real estate opportunities within existing geography that could add up to $25 million. In 2004, net capital expenditures were $56 million.

SCS Transportation ended 2004 financially strong with a debt to total capital ratio of 37 percent, down from 38 percent at December 31, 2003. The Company’s 2004 Clark acquisition, as well as its 2004 capital expenditures, were substantially funded from cash and cash flows from operations.

Conference Call

SCS Transportation will hold its quarterly conference call on Wednesday, January 26, 2005, at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). Hosting the call will be Bert Trucksess, chairman, president and CEO, and Jim Bellinghausen, vice president of finance and CFO. To participate, please dial 1-800-275-8866, or 1-706-634-4936 for international calls. Callers should dial in five to ten minutes before the starting time. This call will be webcast live via the Company’s web site at www.scstransportation.com and will be archived on the site for 30 days.

 


 

SCS Transportation Announces 2004 Results
Page 3

A replay of the call also will be available from two hours after completion through February 2, 2005, by dialing 1-800-642-1687 and using conference code 3257745.

SCS Transportation, Inc. provides trucking transportation and supply chain solutions to a broad base of customers across the United States. With annual revenue approaching $1 billion, the Company focuses on regional and interregional less-than-truckload (LTL) and selected truckload (TL) services. Operating subsidiaries are Saia, a multi-region LTL carrier based in Duluth, Ga., and Jevic, a hybrid LTL and truckload carrier based in Delanco, N.J. Headquartered in Kansas City, Mo., SCST has approximately 8,300 employees nationwide.

     The Securities and Exchange Commission encourages companies to disclose forward-looking information so that investors can better understand the future prospects of a company and make informed investment decisions. This news release contains these types of statements, which are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.

     Words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “predict,” “believe” and similar words or expressions are intended to identify forward-looking statements. We use such forward-looking statements regarding our future financial condition and results of operations and our business operations in this release. All forward-looking statements reflect the present expectation of future events of our management and are subject to a number of important factors, risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. These factors and risks include, but are not limited to, general economic conditions; labor relations; cost and availability of qualified drivers, fuel, purchased transportation and operating assets; governmental regulations, including but not limited to Hours of Service, engine emissions, compliance with recent legislation requiring companies to evaluate their internal control over financial reporting and Homeland Security; dependence on key employees; inclement weather; integration risks; competitive initiatives and pricing pressures; terrorism risks; self-insurance claims, equity-based compensation and other expense volatility; and other financial, operational and legal risks and uncertainties detailed from time to time in the Company’s SEC filings.

# # #

     
INVESTOR CONTACT:
  Greg Drown
  SCS Transportation, Inc.
  816-714-5906
  gdrown@scstransportation.com
 
   
MEDIA CONTACT:
  Dick Johnson
  Johnson Strategic Communications, Inc.
  913-649-8885
  dick@johnsonstrategic.com

Editor’s note: Photography, video B-roll and logos for SCS Transportation are available upon request.

 


 

SCS Transportation, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)

                 
    December 31,     December 31,  
    2004     2003  
ASSETS
               
 
               
CURRENT ASSETS:
               
Cash and cash equivalents
  $ 7,499     $ 30,870  
Accounts receivable
    110,044       93,283  
Prepaid expenses and other
    35,721       30,361  
 
           
Total current assets
    153,264       154,514  
 
               
PROPERTY AND EQUIPMENT:
               
Cost
    569,526       519,715  
Less: Accumulated depreciation
    248,914       227,322  
 
           
Net property and equipment
    320,612       292,393  
 
               
GOODWILL AND OTHER ASSETS
    34,862       17,159  
 
           
Total assets
  $ 508,738     $ 464,066  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
 
               
CURRENT LIABILITIES:
               
Accounts payable and checks outstanding
  $ 33,193     $ 27,545  
Wages and employees’ benefits
    35,761       30,779  
Other current liabilities
    28,981       30,552  
Current portion of long-term debt
    1,263        
 
           
Total current liabilities
    99,198       88,876  
 
               
OTHER LIABILITIES:
               
Long-term debt
    121,547       116,510  
Deferred income taxes
    57,662       50,623  
Claims, insurance and other
    17,789       18,475  
 
           
Total other liabilities
    196,998       185,608  
 
               
SHAREHOLDERS’ EQUITY:
               
Common stock
    15       15  
Additional paid-in capital
    205,800       201,743  
Deferred compensation trust
    (1,116 )     (760 )
Retained earnings (deficit)
    7,843       (11,416 )
 
           
Total shareholders’ equity
    212,542       189,582  
 
           
Total liabilities and shareholders’ equity
  $ 508,738     $ 464,066  
 
           


 

SCS Transportation, Inc. and Subsidiaries
Condensed Consolidated Income Statements
For the Quarter and Year Ended December 31, 2004 and 2003
(Amounts in thousands, except per share data)
(Unaudited)

                                 
    Fourth Quarter     Year Ended  
    2004     2003     2004     2003  
OPERATING REVENUE
  $ 251,938     $ 207,456     $ 982,270     $ 827,359  
 
                               
OPERATING EXPENSES:
                               
Salaries, wages and employees’ benefits
    141,211       117,513       549,511       465,714  
Purchased transportation
    23,282       19,124       92,099       81,551  
Operating expenses and supplies
    51,000       37,192       187,096       145,363  
Operating taxes and licenses
    9,941       8,246       38,017       32,431  
Claims and insurance
    6,687       6,070       27,758       25,391  
Depreciation and amortization
    12,011       11,124       47,968       44,039  
Operating (gains) and losses
    (1,333 )     (116 )     (3,067 )     (12 )
Integration charges
                2,054        
 
                       
Total operating expenses
    242,799       199,153       941,436       794,477  
 
                       
 
                               
OPERATING INCOME
    9,139       8,303       40,834       32,882  
 
                               
NONOPERATING EXPENSES:
                               
Interest expense
    2,439       2,398       9,735       9,460  
Other, net
    (166 )     (172 )     (312 )     (490 )
 
                       
Nonoperating expenses, net
    2,273       2,226       9,423       8,970  
 
                               
INCOME BEFORE INCOME TAXES
    6,866       6,077       31,411       23,912  
Income tax provision
    2,239       1,523       12,152       8,979  
 
                       
NET INCOME
  $ 4,627     $ 4,554     $ 19,259     $ 14,933  
 
                       
 
                               
Average common shares outstanding — basic
    14,940       14,708       14,858       14,687  
 
                       
 
                               
Average common shares outstanding — diluted
    15,347       15,180       15,312       15,129  
 
                       
 
                               
Basic earnings per share
  $ 0.31     $ 0.31     $ 1.30     $ 1.02  
 
                       
 
                               
Diluted earnings per share
  $ 0.30     $ 0.30     $ 1.26     $ 0.99  
 
                       


 

SCS Transportation, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Year Ended December 31, 2004 and 2003
(Amounts in thousands)
(Unaudited)

                 
    2004     2003  
OPERATING ACTIVITIES:
               
Net cash from operating activities
  $ 54,894     $ 58,270  
 
               
INVESTING ACTIVITIES:
               
Acquisition of property and equipment
    (67,113 )     (55,548 )
Proceeds from disposal of property and equipment
    10,670       5,718  
Acquisition of subsidiary, net of cash received
    (23,549 )      
 
           
Net cash used in investing activities
    (79,992 )     (49,830 )
 
               
FINANCING ACTIVITIES:
               
Proceeds from stock option exercises
    1,727       558  
 
           
Net cash from financing activities
    1,727       558  
 
           
 
               
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS
    (23,371 )     8,998  
CASH & CASH EQUIVALENTS, BEGINNING OF PERIOD
    30,870       21,872  
 
           
CASH & CASH EQUIVALENTS, END OF PERIOD
  $ 7,499     $ 30,870  
 
           


 

Saia Motor Freight Line, Inc.
Financial Information
For the Quarter and Year Ended December 31, 2004 and 2003
(Amounts in thousands)

                                                 
    Fourth Quarter     %     Year Ended     %  
    2004     2003     Change     2004     2003     Change  
Operating revenue (excluding fuel surcharge)
    152,747       125,253       22.0       607,810       502,319       21.0  
Operating revenue
    165,647       129,592       27.8       645,374       520,668       24.0  
Operating income
    10,090       7,404               35,823       27,710          
Integration charges
                        2,054                
Operating ratio
    93.9       94.3               94.4       94.7          
Operating ratio excluding integration charges
    93.9       94.3               94.1       94.7          
                                                         
                                    Fourth Quarter        
            Fourth Quarter     %     Amount/Workday     %  
            2004     2003     Change     2004     2003     Change  
Workdays  
 
                            61       62          
F/S Revenue  
LTL
    153,440       119,135       28.8       2,515.4       1,921.5       30.9  
       
TL
    12,207       10,457       16.7       200.1       168.7       18.6  
       
Total
    165,647       129,592       27.8       2,715.5       2,090.2       29.9  
Revenue excluding  
LTL
    153,018       118,896       28.7       2,508.5       1,917.7       30.8  
revenue recognition  
TL
    12,173       10,436       16.6       199.6       168.3       18.6  
adjustment  
Total
    165,191       129,332       27.7       2,708.1       2,086.0       29.8  
Tonnage  
LTL
    715       601       18.9       11.72       9.69       20.9  
       
TL
    148       139       5.9       2.42       2.25       7.6  
       
Total
    863       740       16.5       14.14       11.94       18.4  
Shipments  
LTL
    1,285       1,097       17.1       21.06       17.69       19.0  
       
TL
    20       18       11.5       0.33       0.29       13.3  
       
Total
    1,305       1,115       17.0       21.39       17.98       18.9  
Revenue/cwt.  
LTL
    10.70       9.89       8.2                          
       
TL
    4.13       3.75       10.1                          
       
Total
    9.58       8.74       9.7                          
Revenue/cwt.  
LTL
    9.81       9.54       2.9                          
(excluding fuel surcharge)  
TL
    4.08       3.72       9.7                          
       
Total
    8.83       8.44       4.6                          
Revenue/shipment  
LTL
    119.10       108.37       9.9                          
       
TL
    611.25       584.06       4.7                          
       
Total
    126.61       116.00       9.1                          
Pounds/shipment  
LTL
    1,113       1,096       1.6                          
       
TL
    14,815       15,592       (5.0 )                        
       
Total
    1,322       1,328       (0.5 )                        

 


 

Jevic Transportation, Inc.
Financial Information
For the Quarter and Year Ended December 31, 2004 and 2003
(Amounts in thousands)

                                                 
    Fourth Quarter     %     Year Ended     %  
    2004     2003     Change     2004     2003     Change  
Operating revenue (excluding fuel surcharge)
    79,404       75,141       5.7       316,722       295,473       7.2  
Operating revenue
    86,291       77,864       10.8       336,896       306,691       9.8  
Operating income
    586       2,987               8,886       9,434          
Actuarial workers’ compensation charge*
    3,800                     4,400                
Operating ratio
    99.3       96.2               97.4       96.9          
Operating ratio excluding actuarial charge*
    94.9       96.2               96.1       96.9          
                                                         
                                    Fourth Quarter        
            Fourth Quarter     %     Amount/Workday     %  
            2004     2003     Change     2004     2003     Change  
Workdays  
 
                            62       62          
F/S Revenue  
LTL
    55,525       50,970       8.9       895.6       822.1       8.9  
       
TL
    27,520       24,127       14.1       443.9       389.1       14.1  
       
Other
    3,246       2,767       17.3       52.4       44.6       17.3  
       
Total
    86,291       77,864       10.8       1,391.9       1,255.8       10.8  
Revenue excluding  
LTL
    55,364       50,823       8.9       893.0       819.7       8.9  
revenue recognition  
TL
    27,440       24,054       14.1       442.6       388.0       14.1  
adjustment  
Other
    3,246       2,767       17.3       52.4       44.6       17.3  
       
Total
    86,050       77,644       10.8       1,388.0       1,252.3       10.8  
Tonnage  
LTL
    257       259       (0.8 )     4.14       4.17       (0.8 )
       
TL
    300       290       3.4       4.84       4.68       3.4  
       
Total
    557       549       1.4       8.98       8.85       1.5  
Shipments  
LTL
    217       214       1.3       3.50       3.45       1.3  
       
TL
    35       34       4.2       0.57       0.54       4.2  
       
Total
    252       248       1.7       4.07       3.99       1.6  
Revenue/cwt.  
LTL
    10.79       9.82       9.8                          
       
TL
    4.58       4.15       10.3                          
       
Total
    7.44       6.82       9.0                          
Revenue/cwt.  
LTL
    9.89       9.47       4.5                          
(excl. fuel surcharge)  
TL
    4.19       4.00       5.0                          
       
Total
    6.82       6.58       3.7                          
Revenue/shipment  
LTL
    255.34       237.36       7.6                          
       
TL
    780.72       713.35       9.4                          
       
Total
    328.62       302.12       8.8                          
Pounds/shipment  
LTL
    2,367       2,416       (2.0 )                        
       
TL
    17,065       17,203       (0.8 )                        
       
Total
    4,421       4,428       (0.2 )                        

*   Charges of $3.8 million in 4Q04 and $1.9 million in 3Q04 recorded to reflect actuarially estimated liability of workers compensation claims, of which $4.4 million relates to increases in actuarial estimates for prior-year claims.