Pacer International Reports Second Quarter Results
Revenues of the Retail segment, which provides logistics and supply-chain management services directly to manufacturers and retailers, increased $142.6 million, reflecting recent acquisitions. Revenues of the Wholesale segment, which provides double-stack rail transport services, increased $1.0 million.
Income from operations decreased $5.9 million from $20.1 million in the second quarter of 2000 to $14.2 million in the second quarter of 2001. The Wholesale segment accounted for a $6.2 million decrease due to reduced automotive shipments. The Retail segment's income from operations was $6.2 million, an increase of $0.3 million, reflecting increased operating income from recent acquisitions offset by reduced shipments from major retailers and reduced tire handling and warehousing.
The company's net income decreased by $4.5 million from $6.9 million in the second quarter of 2000 to $2.4 million in the second quarter of 2001 as a result of reduced operating income and a $1.9 million increase in interest expense due to borrowings for acquisitions.
On a year-to-date basis, Pacer International reported consolidated gross revenues for the six-month period ended June 29, 2001 of $871.8 million, up $263.6 million or 43.3 percent from $608.2 million in the first six months of 2000. Income from operations decreased $12.0 million from $37.6 million in 2000 to $25.6 million in 2001. The company's net income decreased by $9.3 million from $11.3 million in 2000 to $2.0 million in 2001 as a result of reduced operating income and a $4.2 million increase in interest expense due to borrowings for acquisitions.
Retail segment's gross revenues increased $287.3 million or 128.3 percent for the 2001 year-to-date period due to the acquisitions made in the second half of 2000, and year-to-date income from operations increased $0.3 million to $10.7 million from $10.4 million last year. The Wholesale segment's gross revenues of $400.0 million for the six-month period just ended were $0.9 million under revenues of $400.9 million for the same period of 2000. Income from operations for the Wholesale segment for the first half of this year was $14.9 million, a decrease of $12.3 million from income from operations of $27.2 million a year earlier, principally due to reduced automotive shipments and higher equipment costs.
Chairman and CEO Don Orris said: "While our second quarter income from operations improved over the first quarter, it was still slightly below last year's second quarter. The economy has had a negative impact on our results, but we are positioning the company for improved results as the economy strengthens. The consolidation of our Retail operations in Columbus, Ohio is nearing completion, with synergies exceeding expectations. Along with anticipated improvements in the Wholesale segment, we expect to continue to see improved results in income from operations for the remainder of 2001."
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 underling assumptions or estimates prove incorrect, actual results may vary materially from those described herein as anticipated, believe, expected or intended.
PACER INTERNATIONAL, INC.
Second Quarter 2001
Operating Results
Pacer International, Inc.
Consolidated Balance Sheet
($ millions)
June 29, 2001
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Assets
Current assets
Cash and cash equivalents $ -
Accounts receivable, net 225.0
Prepaid expenses and other 9.7
Deferred income taxes 9.7
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Total current assets 244.4
Property and equipment
Property, plant & equipment at cost 81.2
Accumulated depreciation (22.5)
-------------------
Property and equipment, net 58.7
Other assets
Intangible assets, net 286.4
Deferred income taxes 56.4
Other assets 11.5
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Total other assets 354.3
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Total assets $ 657.4
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Liabilities & Equity
Current liabilities
Current maturities of long-term debt and
capital leases $ 1.9
Accounts payable and accrued expenses 224.2
-------------------
Total current liabilities 226.1
Long-term liabilities
Revolver 77.7
Deferred income taxes -
Long-term debt and capital leases 325.7
Other 3.3
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Total long-term liabilities 406.7
Minority interest - exchangeable preferred
stock 25.7
Stockholders' equity
Common stock 0.1
Paid In capital 119.0
Treasury stock and other (0.7)
Retained earnings (deficit) (119.3)
Other accumulated comprehensive income (0.2)
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Total stockholders' equity (1.1)
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Total liabilities and equity $ 657.4
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Pacer International, Inc.
Unaudited Consolidated Statement of Operations
($ millions)
2nd Quarter 2001
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Wholesale Retail Consolidated
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Gross revenues $ 194.4 $ 257.0 $ 431.5
Cost of purchased
transportation 151.2 219.4 350.7
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Net revenues 43.2 37.6 80.8
Margin 22.2% 14.6% 20.1%
Direct operating expenses 24.0 - 24.0
Selling, general & admin.
expenses 9.9 28.3 38.2
Depreciation and amortization 1.3 3.1 4.4
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Income from operations 8.0 6.2 14.2
Operating ratio 95.9% 97.6% 96.7%
Interest (income) expense 9.4
Other (income) expense -
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Income before income taxes
minority interest and
extraordinary loss 4.8
Income tax 2.1
Minority interest 0.3
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Net income $ 2.4
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EBITDA $ 9.3 $ 9.3 $ 18.6
Six Months 2001
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Wholesale Retail Consolidated
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Gross revenues $ 400.0 $ 511.2 $ 871.8
Cost of purchased
transportation 312.3 437.2 710.1
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Net revenues 87.7 74.0 161.7
Margin 21.9% 14.5% 20.1%
Direct operating expenses 49.0 - 49.0
Selling, general & admin.
expenses 21.0 57.1 78.1
Depreciation and amortization 2.8 6.2 9.0
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Income from operations 14.9 10.7 25.6
Operating ratio 96.3% 97.9% 97.1%
Interest (income) expense 20.7
Other (income) expense -
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Income before income taxes
minority interest and
extraordinary loss 4.9
Income tax 2.1
Minority interest 0.8
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Net income $ 2.0
======================================================================
EBITDA $ 17.7 $ 16.9 $ 34.6
Pacer International, Inc.
Unaudited Consolidated Statements of Operations
2Q01 2Q00 Variance %
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Segments
Revenue
Wholesale 194.4 193.4 1.0 0.5%
Retail 257.0 114.4 142.6 124.7%
Cons. Entries (19.9) (8.2) (11.7) 142.7%
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Total 431.5 299.6 131.9 44.0%
Net Revenue
Wholesale 43.2 43.5 (0.3) -0.7%
Retail 37.6 22.4 15.2 67.9%
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Total 80.8 65.9 14.9 22.6%
Operating Income
Wholesale 8.0 14.2 (6.2) -43.7%
Retail 6.2 5.9 0.3 5.1%
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Total 14.2 20.1 (5.9) -29.4%
EBITDA
Wholesale 9.3 15.5 (6.2) -40.0%
Retail 9.3 7.2 2.1 29.2%
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Total 18.6 22.7 (4.1) -18.1%
6M01 6M00 Variance %
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Segments
Revenue
Wholesale 400.0 400.9 (0.9) -0.2%
Retail 511.2 223.9 287.3 128.3%
Cons. Entries (39.4) (16.6) (22.8) 137.3%
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Total 871.8 608.2 263.6 43.3%
Net Revenue
Wholesale 87.7 88.2 (0.5) -0.6%
Retail 74.0 43.2 30.8 71.3%
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Total 161.7 131.4 30.3 23.1%
Operating Income
Wholesale 14.9 27.2 (12.3) -45.2%
Retail 10.7 10.4 0.3 2.9%
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Total 25.6 37.6 (12.0) -31.9%
EBITDA
Wholesale 17.7 30.0 (12.3) -41.0%
Retail 16.9 13.1 3.8 29.0%
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Total 34.6 43.1 (8.5) -19.7%
Note: Issued by Potash & Company, Oakland CA
Steve Potash, 510/261-1570
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