EX-99.1 6 c85268exv99w1.txt CONSOLIDATED FINANCIAL STATEMENTS EXHIBIT 99.1 CONSOLIDATED FINANCIAL STATEMENTS Roadway LLC and Subsidiaries A wholly owned subsidiary of Yellow Roadway Corporation Consolidated Balance Sheets as of March 31, 2004 and December 31, 2003; Statements of Consolidated Operations and Cash Flows for the three months ended March 31, 2004 and twelve weeks ended March 29, 2003. CONSOLIDATED BALANCE SHEETS Roadway LLC and Subsidiaries A wholly owned subsidiary of Yellow Roadway Corporation (Amounts in thousands) (Unaudited)
March 31, December 31, 2004 2003 ----------- ------------ ASSETS Current Assets: Cash and cash equivalents $ 13,281 $ 49,879 Accounts receivable, net 355,566 343,231 Advances receivable from parent 302 - Prepaid expenses and other 51,063 34,388 ----------- ------------ Total current assets 420,212 427,498 ----------- ------------ Property and Equipment: Cost 847,933 824,747 Less - accumulated depreciation 19,624 3,285 ----------- ------------ Net property and equipment 828,309 821,462 ----------- ------------ Goodwill 594,781 596,845 Intangibles, net 457,303 460,372 Other assets 35,081 32,314 ----------- ------------ TOTAL ASSETS $ 2,335,686 $ 2,338,491 =========== ============ LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 96,741 $ 118,701 Advances payable to parent - 56,067 Wages, vacations and employees' benefits 212,983 186,400 Other current and accrued liabilities 121,895 88,653 ----------- ------------ Total current liabilities 431,619 449,821 ----------- ------------ Other Liabilities: Long-term debt 247,680 248,895 Deferred income taxes, net 211,930 213,689 Accrued pension and postretirement 218,336 210,596 Claims and other liabilities 123,216 123,725 ----------- ------------ Total other liabilities 801,162 796,905 ----------- ------------ Parent Company Investment: Capital surplus 1,097,221 1,097,221 Retained earnings 6,341 (4,558) Accumulated other comprehensive loss (657) (898) ----------- ------------ Total parent company investment 1,102,905 1,091,765 ----------- ------------ TOTAL LIABILITIES AND PARENT COMPANY INVESTMENT $ 2,335,686 $ 2,338,491 =========== ============
The accompanying notes are an integral part of these statements. 2 STATEMENTS OF CONSOLIDATED OPERATIONS Roadway LLC and Subsidiaries A wholly owned subsidiary of Yellow Roadway Corporation (Amounts in thousands) (Unaudited)
Three | Twelve Months Ended | Weeks Ended March 31, | March 29, 2004 | 2003 ------------ | ----------- | OPERATING REVENUE $ 773,242 | $ 754,070 ------------ | ----------- | OPERATING EXPENSES: | Salaries, wages and employees' benefits 491,455 | 475,435 Operating expenses and supplies 127,874 | 130,412 Operating taxes and licenses 19,511 | 19,866 Claims and insurance 13,535 | 15,112 Depreciation and amortization 18,922 | 17,299 Purchased transportation 81,169 | 74,784 Losses (gains) on property disposals, net (12) | 811 ------------ | ----------- Total operating expenses 752,454 | 733,719 ------------ | ----------- | OPERATING INCOME 20,788 | 20,351 ------------ | ----------- | NONOPERATING (INCOME) EXPENSES: | Interest expense 3,605 | 7,082 Other (453) | (288) ------------ | ----------- Nonoperating expenses, net 3,152 | 6,794 ------------ | ----------- INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 17,636 | 13,557 Income tax provision 6,737 | 5,694 ------------ | ----------- INCOME FROM CONTINUING OPERATIONS 10,899 | 7,863 Income from discontinued operations - | 147 ------------ | ----------- NET INCOME $ 10,899 | $ 8,010 ============ | ===========
The accompanying notes are an integral part of these statements. Refer to Note 2 for the difference in accounting policies between the periods presented. 3 STATEMENTS OF CONSOLIDATED CASH FLOWS Roadway LLC and Subsidiaries A wholly owned subsidiary of Yellow Roadway Corporation (Amounts in thousands) (Unaudited)
Three | Twelve Months Ended | Weeks Ended March 31, | March 29, 2004 | 2003 ------------ | ----------- | OPERATING ACTIVITIES: | Net income $ 10,899 | $ 8,010 Noncash items included in net income: | Depreciation and amortization 18,922 | 17,299 Losses (gains) on property disposals, net (12) | 811 Deferred income tax provision, net (3,602) | (1,056) Changes in assets and liabilities, net: | Accounts receivable (12,335) | 12,606 Accounts payable (21,960) | (10,634) Other working capital items 44,966 | (31,317) Claims and other 7,230 | - Other, net (7,964) | 6,254 ------------ | ----------- NET CASH FROM OPERATING ACTIVITIES 36,144 | 1,973 ------------ | ----------- | INVESTING ACTIVITIES: | Acquisition of property and equipment (16,428) | (13,786) Proceeds from disposal of property and equipment 55 | 762 Business disposal - | 47,221 ------------ | ----------- NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (16,373) | 34,197 ------------ | ----------- | FINANCING ACTIVITIES: | Treasury stock purchases - | (950) Dividends paid - | (960) Repayment of long-term debt - | (24,000) Advances payable to parent, net (56,369) | - ------------ | ----------- NET CASH USED IN FINANCING ACTIVITIES (56,369) | (25,910) ------------ | ----------- | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS FROM CONTINUING | OPERATIONS (36,598) | 10,260 NET DECREASE IN CASH AND CASH EQUIVALENTS FROM DISCONTINUED | OPERATIONS - | (38) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 49,879 | 106,929 ------------ | ----------- | CASH AND CASH EQUIVALENTS, END OF PERIOD $ 13,281 | $ 117,151 ============ ===========
The accompanying notes are an integral part of these statements. Refer to Note 2 for the difference in accounting policies between the periods presented. 4 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Roadway LLC and Subsidiaries A wholly owned subsidiary of Yellow Roadway Corporation (unaudited) 1. DESCRIPTION OF BUSINESS Roadway LLC (also referred to as "Roadway," "the Company," "we" or "our") is a holding company with two primary segments, Roadway Express, Inc. and Roadway Next Day Corporation. The segments are described as follows: o Roadway Express, Inc. ("Roadway Express") is a leading transportation services provider that offers a full range of regional, national and international services for the movement of industrial, commercial and retail goods, primarily through decentralized management and customer facing organizations. Roadway Express owns 100 percent of Reimer Express Lines Ltd. located in Canada that specializes in shipments into, across and out of Canada. o Roadway Next Day Corporation is a holding company focused on business opportunities in the regional and next-day delivery lanes. Roadway Next Day Corporation owns 100 percent of New Penn Motor Express, Inc. ("New Penn"), which provides regional, next-day ground services through a network of facilities located in the Northeastern United States, Quebec, Canada and Puerto Rico. On December 11, 2003, Yellow Corporation completed the acquisition of Roadway Corporation. The combined company was renamed Yellow Roadway Corporation ("Yellow Roadway"). Roadway Corporation was merged with and into Roadway LLC, a newly formed limited liability company and a wholly owned subsidiary of Yellow Roadway. Consideration for the acquisition included $494 million in cash and 18.0 million shares of Yellow Roadway common stock for a total purchase price of approximately $1.1 billion. 2. PRINCIPLES OF CONSOLIDATION AND SUMMARY OF ACCOUNTING POLICIES The accompanying consolidated financial statements include the accounts of Roadway LLC and its wholly owned subsidiaries. We have prepared the consolidated financial statements, without audit by independent public accountants, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). In management's opinion, all normal recurring adjustments necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods included herein have been made. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted from these statements pursuant to SEC rules and regulations. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements included as Exhibit 99.2 to the Yellow Roadway Corporation Annual Report on Form 10-K for the year ended December 31, 2003. Prior to the acquisition of Roadway Corporation by Yellow Corporation on December 11, 2003, Roadway Corporation and all of its wholly owned subsidiaries operated on thirteen four-week accounting periods with twelve weeks in each of the first three quarters and sixteen weeks in the fourth quarter. As part of the acquisition, Roadway LLC adopted a calendar-quarter reporting basis as well as the significant accounting policies of Yellow Roadway Corporation. In addition, we utilized independent third party appraisers to revalue significant assets and liabilities to fair market value, therefore these financial statements are not comparable to prior periods of Roadway Corporation. For accounting policies related to the Consolidated Balance Sheets as of March 31, 2004 and December 31, 2003, and for the Statements of Consolidated Operations and Cash Flows for the three months ended March 31, 2004 and the related notes to financial statements, please refer to the Yellow Roadway Corporation Annual Report on Form 10-K for the year ended December 31, 2003. For accounting policies related to the Statements of Consolidated Operations and Cash Flows for the twelve weeks ended March 29, 2003 and related notes to financial statements, please refer to the Roadway Corporation financial statements and related notes at December 11, 2003, filed as Exhibit 99.1 to the Form 8-K filed by Yellow Roadway Corporation on February 19, 2004. 5 3. GOODWILL AND INTANGIBLES Goodwill is recognized for the excess of the purchase price over the fair value of tangible and identifiable intangible net assets of businesses acquired. The following table shows the amount of goodwill attributable to our operating segments with goodwill balances and changes therein:
Foreign Currency Translation Adjustments/ (in thousands) December 31, 2003 Reclasses March 31, 2004 --------------------------------------------------------- Roadway Express $ 474,513 $ 3,458 $ 477,971 New Penn 122,332 (5,522) 116,810 ----------------- ---------------- -------------- Goodwill $ 596,845 $ (2,064) $ 594,781 ================= ================ ==============
As the acquisition of Roadway Corporation by Yellow Corporation occurred in December 2003, the allocation of the purchase price included in the December 31, 2003 and the March 31, 2004 Consolidated Balance Sheets was preliminary and subject to refinement. Although we do not expect any subsequent changes to have a material impact on our results of operations or amounts allocated to goodwill, such changes could result in material adjustments to the preliminary purchase allocation. The most significant pending items include the following: finalization of independent asset valuation for the Roadway tangible and intangible assets including associated remaining lives; completion of all direct costs associated with the acquisition; updating Roadway personnel information used to calculate the pension benefit obligation; determination of the fair value of tax-related contingencies; calculation of an estimate for certain contractual obligations; and certain other refinements. As of March 31, 2004 refinements to the purchase price allocation have not been significant. We expect substantially all of the above refinements will be completed by the end of second quarter 2004. The components of amortizable intangible assets are as follows:
March 31, 2004 December 31, 2003 Weighted ------------------------------ ------------------------------ Average Gross Gross Life Carrying Accumulated Carrying Accumulated (in thousands) (years) Amount Amortization Amount Amortization -------- ------------------------------ ------------------------------ Customer related 17 $111,800 $ 2,001 $111,800 $ 356 Technology based 3 16,000 1,487 16,000 273 -------- ------------ -------- ------------ Intangible assets $127,800 $ 3,488 $127,800 $ 629 ======== ============ ======== ============
Total marketing related intangible assets with indefinite lives were $333.0 million at March 31, 2004 and $333.2 million at December 31, 2003. These intangible assets are not subject to amortization. The change between periods related to foreign currency translation adjustments. 4. EMPLOYEE BENEFITS COMPONENTS OF NET PERIODIC PENSION COST In December 2003, the Financial Accounting Standards Board revised Statement of Financial Accounting Standards ("SFAS") No. 132, Employers' Disclosures about Pensions and Other Postretirement Benefits (SFAS 132R). SFAS 132R requires the disclosure of the components of the net periodic pension cost recognized during interim periods. The following table sets forth the components of our net periodic pension cost and other postretirement costs for the three months ended March 31, 2004 and twelve weeks ended March 29, 2003: 6
Pension Costs Other Postretirement Costs ----------------------------- ---------------------------- March 31, | March 29, March 31, | March 29, (in thousands) 2004 | 2003 2004 | 2003 --------- | --------- --------- | --------- | | Service cost $ 5,412 | $ 4,704 $ 471 | $ 466 Interest cost 7,360 | 6,285 783 | 788 Expected return on plan assets (6,195) | (5,059) - | - Amortization of net transition obligation - | (330) - | - Amortization of prior service cost - | 1,298 - | (445) Amortization of net loss 16 | 32 - | 134 --------- | --------- --------- | --------- Net periodic pension cost $ 6,593 | $ 6,930 $ 1,254 | $ 943 ========= ========= ========= =========
EMPLOYER CONTRIBUTIONS In our financial statements for the year ended December 31, 2003, we disclosed that we expect to contribute approximately $20 million to our pension plans in 2004, and this expectation has not changed. As of March 31, 2004, our contributions to the pension plans have not been significant. 5. BUSINESS SEGMENTS Roadway reports financial and descriptive information about its reportable operating segments on a basis consistent with that used internally for evaluating segment performance and allocating resources to segments. We manage the segments separately because each requires different operating, marketing and technology strategies. We evaluate performance primarily on adjusted operating income and return on capital. Roadway has two reportable segments, which are strategic business units that offer complementary transportation services to their customers. Roadway Express is a unionized carrier that provides comprehensive regional, national and international transportation services. New Penn is also a unionized carrier that focuses on business opportunities in the regional and next-day markets. The accounting policies of the segments are the same as those described in Exhibit 99.2 to the Yellow Roadway Corporation Annual Report on Form 10-K for the year ended December 31, 2003. Yellow Roadway charges management fees and other corporate services to its segments based on the direct benefits received or as a percentage of revenue. Roadway LLC identifiable assets primarily refer to cash, cash equivalents and miscellaneous investments. The following table summarizes our operations by business segment:
Roadway New Roadway LLC/ (in thousands) Express Penn Eliminations Consolidated ------------------------------------------------------------------------------------ As of March 31, 2004 Identifiable assets $ 1,989,065 $ 337,463 $ 9,158 $ 2,335,686 As of December 31, 2003 Identifiable assets 2,002,421 340,713 (4,643) 2,338,491 Three months ended March 31, 2004 External revenue 717,138 56,104 - 773,242 Operating income 15,037 5,751 - 20,788 Adjustments to operating income(a) (7) (5) - (12) Adjusted operating income 15,030 5,746 - 20,776 ================================================================================================================================== Twelve weeks ended March 29, 2003 External revenue 705,244 48,826 - 754,070 Operating income 17,738 2,613 - 20,351 Adjustments to operating income(a) 802 9 - 811 Adjusted operating income 18,540 2,622 - 21,162
7 (a) Management excludes these items when evaluating operating income and segment performance to better evaluate the results of our core operations. In the periods presented, adjustments consisted of property gains and losses. 6. COMPREHENSIVE INCOME Our comprehensive income for the periods presented includes net income and foreign currency translation adjustments. Comprehensive income for the three months ended March 31, 2004 and twelve weeks ended March 29, 2003 follows:
March 31, | March 29, (in thousands) 2004 | 2003 --------- | --------- | Net income $ 10,899 | $ 8,010 Changes in foreign currency translation adjustments 241 | 2,764 --------- | --------- Comprehensive income $ 11,140 | $ 10,774 ========= | =========
7. SUPPLEMENTAL CASH FLOW INFORMATION During the three months ended March 31, 2004, Roadway LLC received a net cash refund for taxes of $13.5 million and paid $67 thousand in cash for interest. 8. RENTAL EXPENSES Roadway incurs rental expenses under noncancelable lease agreements for certain buildings and operating equipment. Rental expense is charged to "operating expenses and supplies" on the Statements of Consolidated Operations. The following table represents the actual rental expense, as reflected in operating income, incurred for the three months ended March 31, 2004 and twelve weeks ended March 29, 2003:
March 31, | March 29, (in thousands) 2004 | 2003 --------- | --------- | Rental expense $ 13,179 | $ 13,049 --------- | ---------
9. MULTI-EMPLOYER PENSION PLANS Roadway Express and New Penn contribute to multi-employer health, welfare and pension plans for employees covered by collective bargaining agreements (approximately 75 percent of total employees). The largest of these plans, the Central States Southeast and Southwest Areas Pension Plan (the "Central States Plan") provides retirement benefits to approximately 54 percent of our total employees. The amounts of these contributions are determined by contract and established in the agreements. The health and welfare plans provide health care and disability benefits to active employees and retirees. The pension plans provide defined benefits to retired participants. We recognize as net pension cost the required contribution for the period and recognize as a liability any contributions due and unpaid. Under current legislation regarding multi-employer pension plans, a termination, withdrawal or partial withdrawal from any multi-employer plan in an under-funded status would render us liable for a proportionate share of such multi-employer plans' unfunded vested liabilities. This potential unfunded pension liability also applies to our unionized competitors who contribute to multi-employer plans. Based on the limited information available from plan administrators, which we cannot independently validate, we believe that our portion of the contingent liability in the case of a full withdrawal or termination would be material to our financial position and results of operations. Roadway Express and New Penn have no current intention of taking any action that would subject us to obligations under the legislation. Roadway Express and New Penn each have collective bargaining agreements with their unions that stipulate the amount of contributions each company must make to union-sponsored, multi-employer pension plans. The Internal Revenue Code and related regulations establish minimum funding requirements for these plans. If any of these plans, including (without limitation) the Central States Plan, fail to meet these requirements and the trustees of these 8 plans are unable to obtain waivers of the requirements from the Internal Revenue Service ("IRS") or reduce pension benefits to a level where the requirements are met, the IRS could impose an excise tax on all employers participating in these plans and require contributions in excess of our contractually agreed upon rates to correct the funding deficiency. If an excise tax were imposed on the participating employers and additional contributions required, it could have a material adverse impact on the financial results of Roadway LLC. 10. GUARANTEES OF THE SENIOR NOTES DUE 2008 Roadway LLC, the primary obligor of the senior notes due 2008, and its following 100 percent owned subsidiaries issued guarantees in favor of the holders of the notes: Roadway Next Day Corporation, New Penn Motor Express, Inc., Roadway Express, Inc., Roadway Reverse Logistics, Inc. and Roadway Express International, Inc. In addition, Yellow Roadway Corporation issued a guarantee in favor of the holders of the notes. Each of the guarantees is full and unconditional and joint and several. The summarized consolidating financial statements are presented in lieu of separate financial statements and other related disclosures of the subsidiary guarantors and issuer because management does not believe that such separate financial statements and related disclosures would be material to investors. There are currently no significant restrictions on the ability of Roadway LLC or any guarantor to obtain funds from its subsidiaries by dividend or loan. The following represents summarized condensed consolidating financial information of Roadway LLC and its subsidiaries as of March 31, 2004 and December 31, 2003 with respect to the financial position, and for the three months ended March 31, 2004 and twelve weeks ended March 29, 2003 for results of operations and cash flows. The primary obligor column presents the financial information of Roadway LLC. The Guarantor Subsidiaries column presents the financial information of all guarantor subsidiaries of the senior notes due 2008 with the exception of Yellow Roadway, the holding company. The Non-Guarantor Subsidiaries column presents the financial information of all non-guarantor subsidiaries, including those subsidiaries that are governed by foreign laws and Roadway Funding, Inc., the special-purpose entity that managed our ABS agreement. Condensed Consolidating Balance Sheets March 31, 2004
Non- Primary Guarantor Guarantor (in thousands) Obligor Subsidiaries Subsidiaries Eliminations Consolidated --------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents $ - $ 7 $ 6 $ - $ 13 Accounts receivable, net - 338 18 - 356 Intercompany advances receivable 65 34 28 (127) - Prepaid expenses and other - 51 - - 51 --------------------------------------------------------------------------------------------------------------------- Total current assets 65 430 52 (127) 420 Property and equipment - 832 16 - 848 Less - accumulated depreciation - 19 1 - 20 --------------------------------------------------------------------------------------------------------------------- Net property and equipment - 813 15 - 828 Investment in subsidiaries 597 39 - (636) - Receivable from affiliate 650 - - (650) - Goodwill, intangibles and other assets 20 1,036 32 - 1,088 --------------------------------------------------------------------------------------------------------------------- Total assets $ 1,332 $ 2,318 $ 99 $ (1,413) $ 2,336 --------------------------------------------------------------------------------------------------------------------- Accounts payable $ - $ 89 $ 8 $ - $ 97 Intercompany advances payable 13 73 41 (127) - Wages, vacations and employees' benefits 1 209 3 - 213 Other current and accrued liabilities (23) 143 2 - 122 --------------------------------------------------------------------------------------------------------------------- Total current liabilities (9) 514 54 (127) 432 Due to affiliate - 650 - (650) - Long-term debt 248 - - - 248 Deferred income taxes, net (12) 217 7 - 212 Claims and other liabilities 2 339 - - 341 Parent company investment 1,103 598 38 (636) 1,103 --------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $ 1,332 $ 2,318 $ 99 $ (1,413) $ 2,336 ---------------------------------------------------------------------------------------------------------------------
9 December 31, 2003
Non- Primary Guarantor Guarantor (in thousands) Obligor Subsidiaries Subsidiaries Eliminations Consolidated ---------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents $ - $ 44 $ 6 $ - $ 50 Accounts receivable, net - 326 17 - 343 Intercompany advances receivable 38 56 103 (197) - Prepaid expenses and other - 34 - - 34 ---------------------------------------------------------------------------------------------------------------------- Total current assets 38 460 126 (197) 427 Property and equipment - 811 13 - 824 Less - accumulated depreciation - 3 - - 3 ---------------------------------------------------------------------------------------------------------------------- Net property and equipment - 808 13 - 821 Investment in subsidiaries 593 29 - (622) - Receivable from affiliate 650 - - (650) - Goodwill, intangibles and other assets 21 1,034 35 - 1,090 ---------------------------------------------------------------------------------------------------------------------- Total assets $ 1,302 $ 2,331 $ 174 $ (1,469) $ 2,338 ---------------------------------------------------------------------------------------------------------------------- Accounts payable $ 1 $ 111 $ 7 $ - $ 119 Intercompany advances payable - 127 126 (197) 56 Wages, vacations and employees' benefits 1 182 3 - 186 Other current and accrued liabilities (31) 118 2 - 89 ---------------------------------------------------------------------------------------------------------------------- Total current liabilities (29) 538 138 (197) 450 Due to affiliate - 650 - (650) - Long-term debt 249 - - - 249 Deferred income taxes, net (11) 218 7 - 214 Claims and other liabilities 1 333 - - 334 Parent company investment 1,092 592 29 (622) 1,091 ---------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $ 1,302 $ 2,331 $ 174 $ (1,469) $ 2,338 ----------------------------------------------------------------------------------------------------------------------
Condensed Consolidating Statements of Operations For the three months ended March 31, 2004
Non- Primary Guarantor Guarantor (in thousands) Obligor Subsidiaries Subsidiaries Eliminations Consolidated ---------------------------------------------------------------------------------------------------------------------- Operating revenue $ - $ 740 $ 33 $ - $ 773 ---------------------------------------------------------------------------------------------------------------------- Operating expenses: Salaries, wages and employees' benefits - 480 11 - 491 Operating expenses and supplies - 122 6 - 128 Operating taxes and licenses - 18 1 - 19 Claims and insurance - 14 - - 14 Depreciation and amortization - 18 1 - 19 Purchased transportation - 70 11 - 81 Losses (gains) on property disposals, net - - - - - ---------------------------------------------------------------------------------------------------------------------- Total operating expenses - 722 30 - 752 ---------------------------------------------------------------------------------------------------------------------- Operating income (loss) - 18 3 - 21 ---------------------------------------------------------------------------------------------------------------------- Nonoperating (income) expenses: Interest expense 3 14 (1) (13) 3 Other, net (13) (1) 1 13 - ---------------------------------------------------------------------------------------------------------------------- Nonoperating (income) expenses, net (10) 13 - - 3 ---------------------------------------------------------------------------------------------------------------------- Income (loss) before income taxes 10 5 3 - 18 Income tax provision 4 2 1 - 7 Subsidiary earnings 4 1 - (5) - ---------------------------------------------------------------------------------------------------------------------- Net income (loss) $ 10 $ 4 $ 2 $ (5) $ 11 ----------------------------------------------------------------------------------------------------------------------
10 For the twelve weeks ended March 29, 2003
Non- Primary Guarantor Guarantor (in thousands) Obligor Subsidiaries Subsidiaries Eliminations Consolidated ------------------------------------------------------------------------------------------------------------------- Operating revenue $ - $ 724 $ 30 $ - $ 754 ------------------------------------------------------------------------------------------------------------------- Operating expenses: Salaries, wages and employees' benefits 2 463 10 - 475 Operating expenses and supplies (2) 125 7 - 130 Operating taxes and licenses - 20 - - 20 Claims and insurance - 15 - - 15 Depreciation and amortization - 17 1 - 18 Purchased transportation - 66 9 - 75 Losses on property disposals, net - 1 - - 1 ------------------------------------------------------------------------------------------------------------------- Total operating expenses - 707 27 - 734 ------------------------------------------------------------------------------------------------------------------- Operating income (loss) - 17 3 - 20 ------------------------------------------------------------------------------------------------------------------- Nonoperating (income) expenses: Interest expense - 7 - - 7 Other, net - (1) - - (1) ------------------------------------------------------------------------------------------------------------------- Nonoperating (income) expenses, net - 6 - - 6 ------------------------------------------------------------------------------------------------------------------- Income (loss) before income taxes - 11 3 - 14 Income tax provision - 5 1 - 6 Subsidiary earnings 8 2 - (10) - ------------------------------------------------------------------------------------------------------------------- Net income (loss) $ 8 $ 8 $ 2 $ (10) $ 8 -------------------------------------------------------------------------------------------------------------------
Condensed Consolidating Statements of Cash Flows For the three months ended March 31, 2004
Non- Primary Guarantor Guarantor (in thousands) Obligor Subsidiaries Subsidiaries Eliminations Consolidated -------------------------------------------------------------------------------------------------------------------- Operating activities: Net cash from operating activities $ 14 $ 12 $ 10 $ - $ 36 -------------------------------------------------------------------------------------------------------------------- Investing activities: Acquisition of property and equipment - (16) - - (16) Proceeds from disposal of property and equipment - - - - - -------------------------------------------------------------------------------------------------------------------- Net cash used in investing activities - (16) - - (16) -------------------------------------------------------------------------------------------------------------------- Financing Activities: Intercompany advances / repayments (14) (33) (10) - (57) -------------------------------------------------------------------------------------------------------------------- Net cash used in financing activities (14) (33) (10) - (57) -------------------------------------------------------------------------------------------------------------------- Net decrease in cash and cash equivalents - (37) - - (37) Cash and cash equivalents, beginning of period - 44 6 - 50 -------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents, end of period $ - $ 7 $ 6 $ - $ 13 --------------------------------------------------------------------------------------------------------------------
11 For the twelve weeks ended March 29, 2003
Non- Primary Guarantor Guarantor (in thousands) Obligor Subsidiaries Subsidiaries Eliminations Consolidated --------------------------------------------------------------------------------------------------------------------- Operating activities: Net cash from (used in) operating activities $ (10) $ 15 $ (3) $ - $ 2 --------------------------------------------------------------------------------------------------------------------- Investing activities: Acquisition of property and equipment - (13) (1) - (14) Proceeds from disposal of property and equipment - 1 - - 1 Business disposal 47 - - - 47 --------------------------------------------------------------------------------------------------------------------- Net cash provided by (used in) investing activities 47 (12) (1) - 34 --------------------------------------------------------------------------------------------------------------------- Financing Activities: Repayment of long-term debt (24) - - - (24) Treasury stock purchases (1) - - - (1) Dividends paid (1) - - - (1) Intercompany advances / repayments 7 (7) - - - --------------------------------------------------------------------------------------------------------------------- Net cash used in financing activities (19) (7) - - (26) --------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents 18 (4) (4) - 10 Cash and cash equivalents, beginning of period 12 88 7 - 107 --------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 30 $ 84 $ 3 $ - $ 117 ---------------------------------------------------------------------------------------------------------------------
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