Dynamex Inc. (NASDAQ: DDMX), the leading provider of same-day delivery and logistics services in the United States and Canada, today announced net income of $1.4 million, or $0.14 fully diluted net income per share, for the FY 2011 first quarter compared to $3.0 million, or $0.31 fully diluted net income per share, in the prior year quarter. The current quarter includes an $1.8 million pre-tax, $1.7 million after tax ($0.17 per fully diluted share), charge for merger related costs.
James L. Welch, President and Chief Executive Officer of Dynamex stated, “Following a successful fiscal 2010, the Company continued to build momentum during our fiscal first quarter producing better than expected sales. Core sales per day increased for the fifth consecutive quarter, which is directly correlated to our continued focus on our long-term strategic initiatives.”
Welch added, “Pricing remains highly competitive, and as a result, purchased transportation expenses were higher, as a percentage of sales, than the previous year. However, we believe the Company is showing significant improvement in its operations and is well positioned for continued expansion as the broader economy continues to slowly improve.”
Sales were $111 million in the current quarter, which represented an 11.2% year-over-year increase due to higher core sales and fuel surcharges and a stronger Canadian dollar. The increase in core sales (sales excluding changes in fuel surcharge and foreign exchange), accounts for 8.2% of the increase. Core sales increased approximately 9.1% in Canada and 8.3% in the U.S. Higher fuel surcharges and the stronger Canadian dollar account for approximately 1.3%, and 1.7% respectively, of the increase in sales this quarter.
Salaries and employee benefit costs increased $0.6 million in the current quarter, or 3.0% compared to the same quarter last year. The increase is principally attributable to higher medical and dental costs, higher severance, and the impact of the stronger Canadian dollar. Salaries and employee benefit costs represented 18.5% of sales in the current quarter compared to 20.0% in the same quarter last year.