SCS Transportation (Up 158.4%) Announces
89% Increase In EPS for 1st Quarter of 2004
04/23/2004
How SCS Transportation has performed for us: +158.4% in 16
months (101.4% annualized). On Wednesday the company reported
that earnings per share in the first quarter increased by
89% and net income increased 97%. Excerpts from the company's
earnings release follows:
KANSAS CITY, Mo.--(BUSINESS WIRE)--April
21, 2004--SCS Transportation, Inc. (NASDAQ: SCST - News) today
announced earnings per share of $0.17 for the first quarter
of 2004, up 89 percent from $0.09 in the first quarter of
2003. Net income was $2.6 million in the quarter, a 97 percent
increase from approximately $1.3 million in the first quarter
of 2003. Results for the current quarter included $1.0 million,
or $0.04 per share, in integration charges relating to the
company's recent acquisition. First-quarter revenues were
$225.3 million, up 12.6 percent from $200.1 million a year
earlier.
"We are encouraged by this strong start
to 2004," said Bert Trucksess, chairman, president and
chief executive officer of SCS Transportation. "In addition
to growing revenues and improving first-quarter profitability,
the integration of Clark Bros. Transfer, Inc., which we acquired
in February, remains on track. This acquisition expands the
Saia service area to 30 states, now including the Midwest
and Plains regions."
Consolidated first-quarter operating income
was $6.8 million, an increase of 50 percent from $4.5 million
a year earlier. These results include $0.4 million in higher
than planned equity-based compensation charges resulting from
the 24 percent increase in our stock price during the first
quarter. The results also include integration charges of $1.0
million associated with the Clark Bros. acquisition. These
integration charges were entirely offset by operating income
generated by the Clark Bros. operation during the second half
of the first quarter. The consolidated performance improvement
reflects actions by SCS Transportation to increase operational
efficiency and enhance revenues, as well as an improving economy.
In addition, the first quarter of 2003 was more adversely
effected by winter weather and contained one less work day
than the current year quarter.
Outlook
"Our growth initiatives and operational
improvements position SCS Transportation well for the economic
upturn we're seeing in 2004. Additionally, customers are embracing
Saia's expansion into the Midwest and Plains, which we believe
will provide revenue synergy benefits in the second half of
2004," Trucksess said.
Updating its forward-looking guidance,
management now expects full-year 2004 earnings per share in
a range of $1.40 to $1.48 including $2.1 million of integration
charges. For the second quarter of 2004, the company expects
earnings per share in the range of $0.32 to $0.38 including
$1.1 million of integration charges.
SCS Transportation, Inc. (NASDAQ: SCST -
News) provides trucking transportation and supply chain solutions
to a broad base of customers across the United States. With
2003 revenues of $827 million, the company focuses on regional
and interregional less-than-truckload (LTL) and selected truckload
(TL) 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 8,300 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. 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; governmental
regulations, including but not limited to Hours of Service,
engine emissions and Homeland Security; cost and availability
of fuel; inclement weather; integration risks; competitive
initiatives and pricing pressures; self-insurance claims and
other expense volatility; and other financial, operational
and legal risks and uncertainties detailed from time to time
in the Company's SEC filings.
SCS Transportation Investor Contact:
Greg Drown
SCS Transportation, Inc.
816-714-5906
gdrown@scstransportation.com
SCS Transportation Media Contact:
Dick Johnson
Johnson Strategic Communications Inc.
913-649-8885
dick@johnsonstrategic.com
The company's complete press release can
be found at www.scstransportation.com
Source: SCS Transportation, Inc.
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