Celadon Group Inc. (NYSE: CGI) today reported its financial and operating results for the three months ended September 30, 2011, the first fiscal quarter of the Company’s fiscal year ending June 30, 2012.
Revenue for the quarter increased 0.8% to $141.5 million in the 2011 quarter from $140.3 million in the 2010 quarter. Freight revenue decreased 6.0% to $112.3 million in the 2011 quarter from $119.5 million in the 2010 quarter. Net income increased 22.7% to $5.4 million in the 2011 quarter from $4.4 million for the same quarter last year. Earnings per diluted share increased 20.0% to $0.24 in the 2011 quarter from $0.20 for the same quarter last year.
Chairman and CEO Steve Russell commented on the results of the September 2011 quarter. “Earnings per share of twenty-four cents in the quarter compared with twenty cents in the September 2010 quarter. Our average rate per loaded mile improved to $1.53, up approximately six cents per mile from the September 2010 quarter, or 3.7%. Cost controls and improved freight yields continued to positively impact results. We have continued to improve our operating efficiency which has resulted in the reduction of over 1,200 trailers in our quarter end numbers, while having on-boarded over 2,000 new trailers with aerodynamic side skirts within the past twelve months, or 27.1% of our trailer fleet is now less than one year old. Miles per truck per week declined to 2,179 in the quarter, or 2.8%, from 2,241 in the September 2010 quarter. Seated count declined about six percent, related to the more challenging driver shortage in the industry. The improvements and enhancements to our operating model, even with the lower seated count and decreased truck utilization, resulted in a reduction in our operating ratio net of fuel to 92.1, or 110 basis points, compared with the 93.2 level achieved in the September 2010 quarter.
“Our balance sheet remains solid and we retain significant liquidity to support the growth of our business. At September 30, 2011, we had $173.9 million of stockholders' equity, $0.5 million in cash and $6.7 million of total balance sheet borrowings.”