SCS Transportation (Up 167.6%) Reports
38% EPS Increase in 2nd Quarter, Raises Earnings Guidance
for Full-Year 2004
07/16/2004
How SCS Transportation has performed for us: +167.6% in 19
months. On Thursday the company reported that earnings per
share in the first quarter increased by 38% and net income
increased 40%. Excerpts from the company's earnings release
follows:
KANSAS CITY, Mo.--(BUSINESS WIRE)--July
15, 2004--SCS Transportation, Inc. (Nasdaq:SCST) today announced
earnings per share of $0.36 for the second quarter of 2004,
up 38 percent from $0.26 in the second quarter of 2003. Second-quarter
revenues were $248.2 million, up 19 percent from $208.3 million
a year earlier. Net income increased 40 percent to $5.5 million
for the quarter, from $3.9 million in the second quarter of
2003. Second quarter results include planned integration costs
of $0.04 per share after-tax, related to a first quarter acquisition.
"Robust demand and continued improvement
in profitability produced strong earnings, despite higher
than expected accident expenses in the second quarter,"
said Bert Trucksess, chairman, president and chief executive
officer of SCS Transportation. "Both operating companies,
Saia and Jevic, made steady progress in operational performance,
aided by volume gains and a firmer pricing environment."
"A major and strategic achievement
in the quarter was the successful integration of nine additional
states into the Saia system, following the first-quarter acquisition
of Clark Bros. Transfer, Inc. The integration, completed in
early May, added 3,600 new lanes and 10,000-plus direct points
in the Midwest to the Saia network," Trucksess said.
"Our associates showed skill and enthusiasm in working
through the anticipated transition adjustments, and Saia expects
further growth as we serve customer needs through the full
30-state territory."
Consolidated second-quarter operating income
was $11.4 million, an increase of 28 percent from $8.9 million
a year earlier. Consistent with expectations, results included
$1.1 million in integration costs, completing the charges
associated with the Clark Bros. acquisition. Also affecting
operating income was an increase in self-insurance costs for
certain accidents at Saia.
Outlook
Based on first-half results, projected economic
conditions and company specific operating initiatives, management
now expects full-year 2004 earnings per share in a range of
$1.52 to $1.60, including the $2.1 million, or $0.08 per share,
in integration costs already recorded. For the third quarter
of 2004, management expects earnings per share in a range
of $0.51 to $0.57.
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. 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.
|
