Pacer International Reports First Quarter 2001 Results
Revenues of the Retail segment, which provides logistics and supply-chain management services directly to manufacturers and retailers, increased $144.7 million, reflecting recent acquisitions. Revenues of the Wholesale segment, which provides double-stack rail transport services, decreased $1.9 million due primarily to a decrease in automotive containers handled.
Operating income decreased $6.1 million, from $17.5 million in the first quarter of 2000 to $11.4 million in the first quarter of 2001. The Wholesale segment accounted for all of the decrease due to reduced automotive shipments, higher equipment costs and unusually high maintenance and repair costs. The Retail segment's operating income was $4.5 million in both periods as continuing growth was offset by reduced tire handling and warehousing.
The company's net income decreased by $4.8 million from $4.4 million in the first quarter of 2000 to a loss of $0.4 million in the first quarter of 2001 as a result of reduced operating income and a $2.3 million increase in interest expense due to borrowings for acquisitions.
Chairman and CEO Don Orris said: "While we are less than satisfied with our first quarter results, several action items are in place to dramatically improve profitability. The consolidation of our retail operations in Columbus, Ohio is progressing smoothly with expected synergies ahead of schedule and expected to be realized throughout the remainder of the year. The efficiencies of our Wholesale segment should significantly improve as we have right-sized our equipment fleet and taken control of the maintenance and repair of our equipment. In addition, a number of new business wins are expected to positively impact our results for the remainder of the year."
The company noted that, as a result of consolidating its operations, Pacer International has moved its headquarters from Walnut Creek, California to Concord, California. The new address is 2300 Clayton Road, Suite 1200, Concord, California, 94520.
About Pacer - Pacer International, a leading non-asset based North American third-party logistics company, offers a broad array of logistics and other services to facilitate the movement of freight from origin to destination. Its services include wholesale stacktrain services, retail trucking services, intermodal marketing, freight consolidation and handling, international freight-forwarding, and supply-chain management services. Pacer International and its affiliate, Pacer Stacktrain, are headquartered in Concord, California.
Certain forward-looking statements----This press release contains or may contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). These forward-looking statements are based on the Company's current expectations and are subject to a number of risks, uncertainties and assumptions. Among the important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are the Company's leverage; regulatory changes affecting the Company's markets, operations, products and services; shifts in market demand and general economic conditions; as well as the other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. In addition, the Company has acquired businesses in the past and may consider acquiring businesses in the future that provide complementary services. There can be no assurance that the businesses that the company has acquired in the past and may acquire in the future can be successfully integrated. Should one or more of these risks or uncertainties materialize, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described herein as anticipated, believed, expected or intended.
PACER INTERNATIONAL, INC.
First Quarter 2001
Operating Results
Pacer International, Inc.
Consolidated Balance Sheet
($ millions)
April 6, 2001
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Assets
Current assets
Cash and cash equivalents $ -
Accounts receivable,net 211.3
Prepaid expenses and other 14.0
Deferred income taxes 9.7
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Total current assets 235.0
Property and equipment
Property, plant & equipment at cost 75.2
Accumulated depreciation (20.2)
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Property and equipment, net 55.0
Other assets
Intangible assets, net 288.1
Deferred income taxes 57.6
Other assets 11.3
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Total other assets 357.0
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Total assets $ 647.0
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Liabilities & Equity
Current liabilities
Current maturities of long-term debt and
capital leases $ 1.9
Accounts payable and accrued expenses 220.0
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Total current liabilities 221.9
Long-term liabilities
Revolver 73.0
Deferred income taxes -
Long-term debt and capital leases 326.2
Other 3.6
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Total long-term liabilities 402.8
Minority interest - exchangeable preferred
stock 25.5
Stockholders' equity
Common stock 0.1
Paid In capital 119.0
Treasury stock and other (0.7)
Retained earnings (deficit) (121.7)
Other accumulated comprehensive income 0.1
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Total stockholders' equity (3.2)
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Total liabilities and equity $ 647.0
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Pacer International, Inc.
Unaudited Consolidated Statement of Operations
($ millions)
1st Quarter 2001
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Wholesale Retail Consolidated
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Gross revenues $ 205.6 $ 254.2 $ 440.3
Cost of purchased
transportation 161.1 217.8 359.4
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Net revenues 44.5 36.4 80.9
Margin 21.6% 14.3% 20.1%
Direct operating expenses 25.0 - 25.0
Selling, general & admin.
expenses 11.1 28.8 39.9
Depreciation and amortization 1.5 3.1 4.6
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Income from operations 6.9 4.5 11.4
Operating ratio 96.6% 98.2% 97.4%
Interest (income) expense 11.3
Other (income) expense -
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Income before income taxes
minority interest and
extraordinary loss 0.1
Income tax -
Minority interest 0.5
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Net income $ (0.4)
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EBITDA $ 8.4 $ 7.6 $ 16.0
Pacer International, Inc.
Unaudited Consolidated Statements of Operations
1Q01 1Q00 Variance %
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Segments
Revenue
Wholesale 205.6 207.5 (1.9) -0.9%
Retail 254.2 109.5 144.7 132.1%
Cons. Entries (19.5) (8.4) (11.1) 132.1%
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Total 440.3 308.6 131.7 42.7%
Net Revenue
Wholesale 44.5 44.7 (0.2) -0.4%
Retail 36.4 20.8 15.6 75.0%
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Total 80.9 65.5 15.4 23.5%
Operating Income
Wholesale 6.9 13.0 (6.1) -46.9%
Retail 4.5 4.5 - 0.0%
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Total 11.4 17.5 (6.1) -34.9%
EBITDA
Wholesale 8.4 14.5 (6.1) -42.1%
Retail 7.6 5.9 1.7 28.8%
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Total 16.0 20.4 (4.4) -21.6%
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