EX-99.1 2 c94425exv99w1.htm PRESS RELEASE exv99w1
 

Exhibit 99.1

(SCS Transportation)

April 20, 2005

SCS Transportation, Inc. Announces First-Quarter EPS of $0.26

(KANSAS CITY, Mo.) – SCS Transportation, Inc. (NASDAQ: SCST) today reported first-quarter 2005 revenue of $253.3 million, up 12 percent from $225.3 million a year earlier. Net income rose 52 percent to $4.0 million for the first quarter, from $2.6 million in the prior-year quarter. Earnings per share were $0.26, up from $0.17 in the first quarter of 2004. The prior-year results included $1.0 million, or $0.04 per share, in integration charges.

Consolidated operating income in the first quarter of 2005 was $9.2 million, up from $6.8 million in the prior-year quarter, which included the integration charges. The first quarter of the year is generally the weakest due to seasonally lower volumes and winter weather effects.

“We reached a milestone of $1 billion in revenues for SCS Transportation in the past 12 months,” said Bert Trucksess, chairman, president and chief executive officer. “As we move through 2005, Saia continues to build on its performance gains and pursue additional growth opportunities, while Jevic is taking important steps to improve core profitability.”

Update on Operating Companies

Saia revenue was $167.0 million in the first quarter, up 17 percent from a year earlier. Saia operating income was $9.0 million, up 47 percent from the prior-year quarter, which included a $1 million integration charge in connection with the February 2004 acquisition of Midwestern trucking operations. Saia operating income, excluding impact of 2004 integration charges, improved 26 percent and first-quarter operating ratio improved 40 basis points to 94.6 percent. Less-than-truckload (LTL) tonnage for Saia rose 9 percent from the first quarter of 2004, and LTL revenue per hundredweight, excluding fuel surcharge, was up 3 percent.

Jevic revenue was $86.3 million in the first quarter, up 5 percent from a year earlier. Operating income for Jevic was $0.5 million in the first quarter, compared to $1.9 million in the first quarter of 2004. The operating ratio for the quarter was 99.4 percent. Pricing continued to be strong, but weaker than expected volumes and higher operating expenses impacted profitability. After

 


 

SCS Transportation Announces First Quarter EPS of $0.26
Page 2

completing an organizational realignment in January, we believe Jevic is making progress in improving service consistency and implementing cost efficiency initiatives.

Holding company operating expenses, compared with a year earlier, were favorably impacted by $0.9 million due to the effects of relative stock price performance on equity-based compensation plans.

Financial Position

Net capital expenditures for the quarter were $15 million. Cash flows enabled the Company to reduce its debt to total capital ratio to 35.6 percent at March 31, 2005, compared with 36.6 percent at December 31, 2004. SCS Transportation ended the first quarter of 2005 well positioned for further growth opportunities.

Conference Call

SCS Transportation will hold its quarterly conference call on Wednesday, April 20, 2005, at 5:00 p.m. Eastern Time (4:00 p.m. Central Time). 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. A replay of the call also will be available from two hours after completion through April 27, 2005, by dialing 1-800-642-1687 and using conference code 4978786.

SCS Transportation, Inc. provides trucking transportation and supply chain solutions to a broad base of customers across the United States. With annual revenue now exceeding $1 billion, the Company focuses on regional and interregional less-than-truckload (LTL) and selected truckload (TL) and time-definite 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 8,900 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. Investors should not place undue reliance on such forward-looking statements, and the Company undertakes no obligation to publicly update or revise any forward-looking

 


 

SCS Transportation Announces First Quarter EPS of $0.26
Page 3

statements. 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; effectiveness of company-specific performance improvement initiatives; 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

 


 

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

 
                 
    March 31,     December 31,  
    2005     2004  
ASSETS
               
CURRENT ASSETS:
               
Cash and cash equivalents
  $ 10,809     $ 7,499  
Accounts receivable
    114,801       110,044  
Prepaid expenses and other
    32,714       35,721  
 
           
Total current assets
    158,324       153,264  
PROPERTY AND EQUIPMENT:
               
Cost
    580,206       569,526  
Less: Accumulated depreciation
    255,531       248,914  
 
           
Net property and equipment
    324,675       320,612  
GOODWILL AND OTHER ASSETS
    34,500       34,862  
 
           
Total assets
  $ 517,499     $ 508,738  
 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
CURRENT LIABILITIES:
               
Accounts payable and checks outstanding
  $ 38,927     $ 33,193  
Wages and employees’ benefits
    32,595       35,761  
Other current liabilities
    32,884       28,981  
Current portion of long-term debt
          1,263  
 
           
Total current liabilities
    104,406       99,198  
OTHER LIABILITIES:
               
Long-term debt
    120,127       121,547  
Deferred income taxes
    57,478       57,662  
Claims, insurance and other
    18,012       17,789  
 
           
Total other liabilities
    195,617       196,998  
SHAREHOLDERS’ EQUITY:
               
Common stock
    15       15  
Additional paid-in capital
    206,760       205,800  
Deferred compensation trust
    (1,114 )    (1,116 )
Retained earnings
    11,815       7,843  
 
           
Total shareholders’ equity
    217,476       212,542  
 
           
Total liabilities and shareholders’ equity
  $ 517,499     $ 508,738  
 
           


 

SCS Transportation, Inc. and Subsidiaries
Condensed Consolidated Income Statements
For the Quarter Ended March 31, 2005 and 2004
(Amounts in thousands, except per share data)
(Unaudited)

                 
    2005     2004  
OPERATING REVENUE
  $ 253,288     $ 225,276  
OPERATING EXPENSES:
               
Salaries, wages and employees’ benefits
    140,687       127,943  
Purchased transportation
    21,016       20,152  
Operating expenses and supplies
    52,134       42,137  
Operating taxes and licenses
    10,427       9,140  
Claims and insurance
    8,450       6,481  
Depreciation and amortization
    11,669       11,622  
Operating (gains) and losses
    (334 )     9  
Integration charges
          1,004  
 
           
Total operating expenses
    244,049       218,488  
 
           
OPERATING INCOME
    9,239       6,788  
NONOPERATING EXPENSES:
               
Interest expense
    2,421       2,421  
Other, net
    112       (75 )
 
           
Nonoperating expenses, net
    2,533       2,346  
INCOME BEFORE INCOME TAXES
    6,706       4,442  
Income tax provision
    2,734       1,835  
 
           
NET INCOME
  $ 3,972     $ 2,607  
 
           
Average common shares outstanding — basic
    15,059       14,741  
 
           
Average common shares outstanding — diluted
    15,419       15,239  
 
           
Basic earnings per share
  $ 0.26     $ 0.18  
 
           
Diluted earnings per share
  $ 0.26     $ 0.17  
 
           

 


 

SCS Transportation, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Quarter Ended March 31, 2005 and 2004
(Amounts in thousands)
(Unaudited)

                 
    2005     2004  
OPERATING ACTIVITIES:
               
Net cash from operating activities
  $ 21,057     $ 1,008  
INVESTING ACTIVITIES:
               
Acquisition of property and equipment
    (16,803 )     (4,847 )
Proceeds from disposal of property and equipment
    1,364       1,584  
Acquisition of subsidiary, net of cash received
          (23,040 )
 
           
Net cash used in investing activities
    (15,439 )     (26,303 )
FINANCING ACTIVITIES:
               
Repayment of long-term debt
    (2,735 )      
Proceeds from stock option exercises
    427       370  
 
           
Net cash from (used in) financing activities
    (2,308 )     370  
 
           
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS
    3,310       (24,925 )
CASH & CASH EQUIVALENTS, BEGINNING OF PERIOD
    7,499       30,870  
 
           
CASH & CASH EQUIVALENTS, END OF PERIOD
  $ 10,809     $ 5,945  
 
           

 


 

Saia Motor Freight Line, Inc.
Financial Information
For the Quarter Ended March 31, 2005 and 2004
(Amounts in thousands)

                         
    First Quarter     %  
    2005     2004     Change  
Operating revenue (excluding fuel surcharge)
    153,940       136,708       12.6  
Operating revenue
    166,965       142,816       16.9  
Operating income
    8,963       6,093       47.1  
Integration charges*
          1,004          
Operating income excluding integration charges*
    8,963       7,097       26.3  
Operating ratio
    94.6       95.7          
Operating ratio excluding integration charges*
    94.6       95.0          
                                                     
                                First Quarter        
        First Quarter     %     Amount/Workday     %  
        2005     2004     Change     2005     2004     Change  
Workdays
                                64       64          
F/S Revenue
  LTL     154,717       132,364       16.9       2,417.5       2,068.2       16.9  
 
  TL     12,248       10,452       17.2       191.4       163.3       17.2  
 
  Total     166,965       142,816       16.9       2,608.9       2,231.5       16.9  
Revenue excluding
  LTL     155,143       132,690       16.9       2,424.1       2,073.3       16.9  
revenue recognition
  TL     12,282       10,478       17.2       191.9       163.7       17.2  
adjustment
  Total     167,425       143,168       16.9       2,616.0       2,237.0       16.9  
Tonnage
  LTL     729       670       8.8       11.39       10.47       8.8  
 
  TL     151       144       5.0       2.37       2.25       5.0  
 
  Total     880       814       8.2       13.76       12.72       8.2  
Shipments
  LTL     1,309       1,235       6.0       20.45       19.30       6.0  
 
  TL     21       19       11.1       0.32       0.29       11.1  
 
  Total     1,330       1,254       6.1       20.77       19.59       6.1  
Revenue/cwt.
  LTL     10.64       9.90       7.4                          
 
  TL     4.06       3.64       11.6                          
 
  Total     9.51       8.79       8.1                          
Revenue/cwt.
  LTL     9.75       9.45       3.2                          
(excluding fuel surcharge)
  TL     4.01       3.61       11.3                          
 
  Total     8.77       8.42       4.2                          
Revenue/shipment
  LTL     118.53       107.44       10.3                          
 
  TL     596.45       565.22       5.5                          
 
  Total     125.94       114.21       10.3                          
Pounds/shipment
  LTL     1,114       1,085       2.7                          
 
  TL     14,703       15,548       (5.4 )                        
 
  Total     1,325       1,299       2.0                          


*   – Integration charges consist of employee retention and stay bonuses, communications, re-logoing the fleet of Clark Bros., technology integration and other items in connection with the integration of the operations of Clark Bros. Management believes that excluding these charges more accurately reflects the core operating performance of Saia.

 


 

Jevic Transportation, Inc.
Financial Information
For the Quarter Ended March 31, 2005 and 2004
(Amounts in thousands)

                         
    First Quarter     %  
    2005     2004     Change  
Operating revenue (excluding fuel surcharge)
    79,570       78,787       1.0  
Operating revenue
    86,323       82,460       4.7  
Operating income
    518       1,881          
Operating ratio
    99.4       97.7          
                                                     
                                First Quarter        
        First Quarter     %     Amount/Workday     %  
        2005     2004     Change     2005     2004     Change  
Workdays
                                63       64          
F/S Revenue
  LTL     56,032       54,205       3.4       889.4       847.0       5.0  
 
  TL     27,586       25,524       8.1       437.9       398.8       9.8  
 
  Other     2,705       2,731       (1.0 )     42.9       42.7       0.6  
 
  Total     86,323       82,460       4.7       1,370.2       1,288.5       6.3  
Revenue excluding
  LTL     56,118       54,492       3.0       890.8       851.4       4.6  
revenue recognition
  TL     27,628       25,660       7.7       438.5       400.9       9.4  
adjustment
  Other     2,705       2,731       (1.0 )     42.9       42.7       0.6  
 
  Total     86,451       82,883       4.3       1,372.2       1,295.0       6.0  
Tonnage
  LTL     261       274       (4.8 )     4.14       4.28       (3.3 )
 
  TL     303       306       (0.7 )     4.82       4.77       0.9  
 
  Total     564       580       (2.6 )     8.96       9.05       (1.1 )
Shipments
  LTL     223       227       (1.5 )     3.55       3.55        
 
  TL     35       36       (1.4 )     0.56       0.56       0.2  
 
  Total     258       263       (1.5 )     4.11       4.11       0.1  
Revenue/cwt.
  LTL     10.77       9.95       8.2                          
 
  TL     4.55       4.20       8.4                          
 
  Total     7.42       6.92       7.3                          
Revenue/cwt.
  LTL     9.90       9.49       4.3                          
(excl. fuel surcharge)
  TL     4.19       4.01       4.5                          
 
  Total     6.83       6.60       3.4                          
Revenue/shipment
  LTL     251.10       240.12       4.6                          
 
  TL     779.97       714.23       9.2                          
 
  Total     323.45       304.92       6.1                          
Pounds/shipment
  LTL     2,332       2,413       (3.4 )                        
 
  TL     17,133       17,009       0.7                          
 
  Total     4,372       4,411       (0.9 )