SCS Transportation (Up 146.4%) Announces
29% Increase in Full-Year Net Income
01/29/2005
How SCS Transportation has performed for us: +146.4% in 24
months. On Tuesday, the company reported that net income for
the year increased by 29%. Excerpts from the company's earnings
release follows:
KANSAS CITY, Mo.--Jan. 25, 2005--SCS Transportation,
Inc. (SCST) today reported full-year 2004 revenue of $982.3
million, up 19 percent from $827.4 million in 2003. Net income
increased 29 percent to $19.3 million for 2004, compared with
$14.9 million in 2003. Earnings per share for 2004 were $1.26,
up 27 percent from $0.99 per share the previous year.
Results for 2004 include costs of $0.08
per share related to Saia's first-half acquisition of Clark
Bros., Inc. and previously announced charges for an increase
in the actuarially estimated liability of Jevic workers' compensation
claims, of which $0.18 per share related to prior-year claims.
In addition, 2004 results benefited by $0.12 per share from
the sale of assets.
"Our most significant strategic event
in 2004 was the successful acquisition by Saia of trucking
operations in the Midwest and Plains States -- expanding the
Saia service area for customers and adding to earnings in
the first year of the integration," said Bert Trucksess,
chairman, president and chief executive officer.
"We are also pleased to report continued
strong growth in core operating profitability in our second
full year as an independent public company. We are optimistic
about prospects for 2005, as we expect ongoing improvement
from company-specific initiatives, as well as favorable industry
supply-demand fundamentals," added Trucksess.
Fourth-quarter revenue was $251.9 million,
up 21 percent from $207.5 million a year earlier. Net income
of $4.6 million and earnings per share of $0.30 were both
unchanged from the fourth quarter of 2003. Fourth-quarter
2004 results reflect the previously announced $0.15 per share
charge for an increase in the actuarially estimated liability
of workers' compensation claims at Jevic. In addition, the
fourth quarter of 2004 benefited from a reduction in income
taxes related to the favorable resolution of various tax matters
of $0.04 per share, compared to a similar $0.06 per share
benefit in the fourth quarter of 2003.
Outlook and Financial Position
Based on current trends and conditions,
management expects 2005 earnings per share in a range of $1.65
to $1.80.
The Company is planning for net capital
expenditures of approximately $60 million in 2005 and is evaluating
several strategic real estate opportunities within existing
geography that could add up to $25 million. In 2004, net capital
expenditures were $56 million.
SCS Transportation ended 2004 financially
strong with a debt to total capital ratio of 37 percent, down
from 38 percent at December 31, 2003. The Company's 2004 Clark
acquisition, as well as its 2004 capital expenditures, were
substantially funded from cash and cash flows from operations.
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.
The company's complete press release can
be found at www.scstransportation.com
Contact:
SCS Transportation, Inc.
Investor Contact:
Greg Drown, 816-714-5906
gdrown@scstransportation.com
or
Media Contact:
Johnson Strategic Communications, Inc.
Dick Johnson, 913-649-8885
dick@johnsonstrategic.com
Source: SCS Transportation, Inc.
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