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TheStreet Open House

Celadon Group Reports Second Fiscal Quarter Financial Results And Declares Dividend

“Our balance sheet remains solid and we retain significant liquidity to support the growth of our business. At December 31, 2011, we had $179.6 million of stockholders' equity and $36.5 million of total balance sheet borrowings of which we had $34.5 million in bank borrowings outstanding on our $100 million bank line at December 31, 2011.”

On January 24, 2012, our Board of Directors has approved a regular cash dividend to shareholders for the quarter ending March 31, 2012. The quarterly cash dividend of two cents ($0.02) per share of common stock will be payable on April 16, 2012 to shareholders of record at the close of business on April 4, 2012.

Conference Call Information

An investor conference call is scheduled for Thursday, January 26, at 10:00 a.m. EST. Steve Russell and other members of management will discuss the results of the quarter. To listen and participate in a questions-and-answers exchange, simply dial 866-551-3680 pin number 46518598 followed by the # key a few minutes prior to the start time. A replay will be available through February 24 by dialing 866-551-4520 and entering call back code 279251 followed by the # key.

This call is being Web cast by Thomson/CCBN and can be accessed via Celadon's Web site at www.celadongroup.com.

Celadon Group Inc. ( www.celadongroup.com), through its subsidiaries, primarily provides long-haul, full-truckload freight service across the United States, Canada and Mexico. The company also owns Celadon Dedicated Services, which provides supply chain management solutions, such as warehousing and dedicated fleet services; and Celadon Brokerage Services.

This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may be identified by their use of terms or phrases such as "expects," "estimates," "projects," "believes," "anticipates," "plans," "intends," and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those in forward-looking statements: the risk that our perception of additional capacity due to seating trucks and perceived benefits thereof are inaccurate; the risk that our perception of changes in our customer base and perceived benefits thereto are inaccurate; the risk that managing our tractor fleet age does not result in greater flexibility and lower operating expenses; excess tractor and trailer capacity in the trucking industry; decreased demand for our services or loss of one or more of our major customers; surplus inventories; recessionary economic cycles and downturns in customers' business cycles; strikes, work slow downs, or work stoppages at our facilities, or at customer, port, border crossing, or other shipping related facilities; increases in compensation for and difficulty in attracting and retaining qualified drivers and independent contractors; increases in insurance premiums and deductible amounts; elevated experience in the frequency or severity of claims relating to accident, cargo, workers' compensation, health, and other matters; fluctuations in claims expenses that result from high self-insured retention amounts and differences between estimates used in establishing and adjusting claims reserves and actual results over time; increases or rapid fluctuations in fuel prices, as well as fluctuations in hedging activities and surcharge collection, the volume and terms of diesel purchase commitment, interest rates, fuel taxes, tolls, and license and registration fees; fluctuations in foreign currency exchange rates; increases in the prices paid for new revenue equipment and changes in the resale value of our used equipment; increases in interest rates or decreased availability of capital or other sources of financing for revenue equipment; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, and intermodal competitors; regulatory requirements that increase costs or decrease efficiency, including revised hours-of-service requirements for drivers and new emissions control regulations; our ability to identify acceptable acquisition candidates, consummate acquisitions, and integrate acquired operations; the timing of, and any rules relating to, the opening of the border to Mexican drivers; challenges associated with doing business internationally; our ability to retain key employees; and the effects of actual or threatened military action or terrorist attacks or responses, including security measures that may impede shipping efficiency, especially at border crossings.

Readers should review and consider these factors along with the various disclosures by the company in its press releases, stockholder reports, and filings with the Securities Exchange Commission. We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information.

- tables follow -

 
CELADON GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars and shares in thousands except per share amounts)
(Unaudited)
 
  For the three months ended   For the six months ended
December 31, December 31,
2011   2010   2011   2010
 
REVENUE:
Freight revenue $112,379 $111,553 $224,676 $231,023
Fuel surcharge revenue 29,135   21,578   58,317   42,397  
Total revenue 141,514 133,131 282,993 273,420
 
OPERATING EXPENSES:
Salaries, wages, and employee benefits 37,562 37,574 75,122 75,701
Fuel 37,063 30,931 75,530 63,202
Purchased transportation 27,302 25,426 54,435 51,300
Revenue equipment rentals 6,269 6,728 12,178 14,277
Operations and maintenance 10,177 10,050 19,979 20,143
Insurance and claims 3,676 3,468 6,719 7,593
Depreciation and amortization 5,766 6,769 11,360 14,296
Cost of products and services sold - 1,350 - 2,748
Communications and utilities 998 1,062 1,903 2,169
Operating taxes and licenses 2,595 2,432 5,104 4,825
General and other operating 1,668   1,705   3,297   3,449  
Total operating expenses 133,076   127,495   265,627   259,703  
 
Operating income 8,438 5,636 17,366 13,717
 
Interest expense 160 565 203 1,027
Interest income (44 ) (15 ) (52 ) (31 )
Other income (211 ) (79 ) (498 ) (146 )
Income before income taxes 8,533 5,165 17,713 12,867
Income tax expense 3,085   2,307   6,893   5,588  
Net income $5,448   $2,858   $10,820   $7,279  
 
Income per common share:
Diluted $0.24 $0.13 $0.48 $0.32
Basic $0.24 $0.13 $0.49 $0.33
 
Diluted weighted average shares outstanding 22,697 22,569 22,687 22,563
Basic weighted average shares outstanding 22,248 22,051 22,233 22,054
 

 

Key Operating Statistics

       
For the three months ended For the six months ended
December 31, December 31,
2011 2010 2011 2010
 
Average revenue per loaded mile (*) $1.528 $1.477 $1.527 $1.474
Average revenue per total mile (*) $1.363 $1.319 $1.363 $1.320
Average revenue per tractor per week (*) $2,823 $2,794 $2,901 $2,880
Average miles per seated tractor per week(**) 2,072 2,116 2,124 2,178
Average seated line-haul tractors(**) 2,633 2,687 2,581 2,688
 
*Freight revenue excluding fuel surcharge and our Mexican subsidiary Jaguar.
 
**Total seated fleet, including equipment operated by independent contractors and our Mexican subsidiary, Jaguar.
 

 
CELADON GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 2011 and June 30, 2011
(Dollars in thousands except par value amounts)
  (unaudited)    
December 31, June 30,
ASSETS 2011 2011
Current assets:
Cash and cash equivalents $1,418 $25,673
Trade receivables, net of allowance for doubtful accounts of $1,057 and $1,045 at December 31, 2011 and June 30, 2011, respectively

60,615

64,723
Prepaid expenses and other current assets 13,808 14,403
Tires in service 6,793 6,594
Assets held for sale 25,653 ---
Income tax receivable 2,131 ---
Deferred income taxes 3,868   3,940  
Total current assets 114,286 115,333
Property and equipment 247,991 213,222
Less accumulated depreciation and amortization 76,319   80,592  
Net property and equipment 171,672 132,630
Tires in service 3,182 2,914
Goodwill 16,702 16,702
Investment in unconsolidated companies 3,153 2,902
Other assets 6,582   1,701  
Total assets $315,577   $272,182  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $13,629 $10,475
Accrued salaries and benefits 11,871 13,192
Accrued insurance and claims 10,853 13,360
Accrued fuel expense 9,468 11,113
Other accrued expenses 18,499 15,729
Current maturities of capital lease obligations 363 354
Income taxes payable ---   1,778  
Total current liabilities 64,683 66,001
Long-term debt 34,531 ---
Capital lease obligations, net of current maturities 1,556 1,740
Deferred income taxes 35,229 31,740

Stockholders' equity:

Common stock, $0.033 par value, authorized 40,000,000 shares; issued and outstanding 23,875,833 and 23,886,601 shares at December 31, 2011 and June 30, 2011, respectively

788

 

788

Treasury stock at cost; 1,258,319 and 1,364,364 shares at December 31, 2011 and June 30, 2011, respectively

(8,677

)

(9,408 )
Additional paid-in capital 100,250 99,906
Retained earnings 92,297 82,367
Accumulated other comprehensive loss (5,080 ) (952 )
Total stockholders' equity 179,578   172,701  
Total liabilities and stockholders' equity $315,577   $272,182  
 




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