Pacer International Reports Fourth Quarter and Year 2001 Results
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) was $19.0 million, an increase of $8.6 million from the fourth quarter of 2000. Excluding merger-related charges of $7.7 million in the fourth quarter of 2000, EBITDA in 2001 increased by $.9 million.
Year 2001 Results
Consolidated gross revenues for the fiscal year ended December 28, 2001 were $1,670.9 million, up $389.6 million or 30.4 percent from $1,281.3 million in fiscal 2000. Excluding acquisitions made in 2000, gross revenues decreased approximately $40.0 million, principally in automotive revenues in both the Retail and Wholesale segments of the company and international-related revenues in the Wholesale segment. These decreases were partially offset by increased revenues from trucking services. Pacer's Retail segment provides logistics and supply-chain management services directly to manufacturers and retailers, while the Wholesale segment provides double-stack rail transportation services.
Operating income was $51.0 million for the year, a decrease of $12.4 million from 2000, including merger and one-time pre-tax charges in 2000 of $7.7 million and in 2001 of $6.9 million. The decrease was due to increased sales, general and administrative costs in the Retail segment related to acquisitions in 2000, and increased railcar lease and maintenance costs in the Wholesale segment. Excluding the merger and one-time charges in 2001 of $6.9 million, operating income was $57.9 million.
Excluding merger and one-time charges in both 2000 and 2001, EBITDA for the year 2001 was $76.2 million, a decrease of $6.5 million from $82.7 million in the previous year. Net income, including merger and one-time charges, was $7.0 million in 2001, a decrease of $7.8 million from 2000. Excluding the merger and one-time charges, net income on a tax-adjusted basis was $11.2 million.
Chairman and CEO Don Orris said: "While the economic downturn had an adverse impact on the company, especially on the automotive business of both its Retail and Wholesale segments, we were able to substantially maintain EBITDA, demonstrating the variable cost structure of Pacer International.
"During 2001, we completed the centralization of our rail and truck brokerage operations and have exceeded the expected synergies of Pacer International's merger with Rail Van. Inc. We also have completed the rationalization of our Wholesale segment's fleet, both containers and chassis.
"The year started with disappointing financial results, but with centralization and equipment downsizing, along with other improvements, Pacer International achieved improved financial performance as the year progressed. We believe the company is now well positioned to achieve improved financial results as the economy improves."
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 (cost-efficient, two-tiered rail transportation for containerized shipments), and retail trucking, intermodal marketing, freight consolidation and handling, international freight forwarding, and supply-chain management services. Pacer International is headquartered in Concord, California. Its business units Pacer Stacktrain and Pacer Global Logistics are headquartered in Concord, California and in Dublin, Ohio, respectively. Web site: www.pacer-international.com
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 or 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.
Consolidated Balance Sheet
($ millions)
December 28, 2001
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Assets
Current assets
Cash and cash equivalents $ --
Accounts receivable,net 211.2
Prepaid expenses and other 8.4
Deferred income taxes 5.6
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Total current assets 225.2
Property and equipment
Property, plant & equipment at cost 87.1
Accumulated depreciation (27.8)
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Property and equipment, net 59.3
Other assets
Intangible assets, net 281.5
Deferred income taxes 57.5
Other assets 9.4
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Total other assets 348.4
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Total assets $ 632.9
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Liabilities & Equity
Current liabilities
Current maturities of long-term debt and
capital leases $ 2.0
Accounts payable and accrued expenses 203.1
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Total current liabilities 205.1
Long-term liabilities
Long-term debt and capital leases 395.9
Deferred income taxes --
Other 3.2
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Total long-term liabilities 399.1
Minority interest -- exchangeable preferred stock 25.7
Stockholders' equity
Common stock 0.1
Paid In capital 118.6
Other (0.3)
Retained earnings (deficit) (114.3)
Other accumulated comprehensive income (1.1)
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Total stockholders' equity 3.0
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Total liabilities and equity $ 632.9
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Pacer International, Inc.
Unaudited Consolidated Statement of Operations
($ millions)
4th Quarter 2001
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Wholesale Retail Consolidated
Gross revenues $ 217.3 $ 211.3 $ 401.0
Cost of purchased transportation 161.6 177.7 311.7
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Net revenues 55.7 33.6 89.3
Margin 25.6% 15.9% 22.3%
Direct operating expenses 30.6 -- 30.6
Selling, general & admin. expenses 12.1 27.6 39.7
Depreciation and amortization 1.5 3.5 5.0
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Operating income before one-time
charges 11.5 2.5 14.0
One-time charges -- -- --
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Income from operations 11.5 2.5 14.0
Interest (income) expense 10.3
Other (income) expense --
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Income before income taxes minority
interest and extraordinary loss 3.7
Income tax (0.3)
Minority interest --
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Net income $ 4.0
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EBITDA - Before One-Time Charges $ 13.0 $ 6.0 $ 19.0
Year 2001
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Wholesale Retail Consolidated
Gross revenues $ 808.8 $ 952.8 $1,670.9
Cost of purchased transportation 620.9 809.4 1,339.6
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Net revenues 187.9 143.4 331.3
Margin 23.2% 15.1% 19.8%
Direct operating expenses 100.3 -- 100.3
Selling, general & admin. expenses 43.0 111.8 154.8
Depreciation and amortization 5.6 12.7 18.3
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Operating income before one-time
charges 39.0 18.9 57.9
One-time charges 1.9 3.4 6.9
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Income from operations 37.1 15.5 51.0
Interest (income) expense 39.6
Other (income) expense --
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Income before income taxes minority
interest and extraordinary loss 11.4
Income tax 3.6
Minority interest 0.8
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Net income $ 7.0
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EBITDA - Before One-Time Charges $ 44.6 $ 31.6 $ 76.2
Pacer International, Inc.
Unaudited Consolidated Statements of Operations
4Q01 4Q00 Variance %
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Segments
Revenue
Wholesale 217.3 221.2 (3.9) -1.8%
Retail 211.3 155.4 55.9 36.0%
Cons. Entries (27.6) (10.7) (16.9) -157.9%
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Total 401.0 365.9 35.1 9.6%
Net Revenue
Wholesale 55.7 51.0 4.7 9.2%
Retail 33.6 27.0 6.6 24.4%
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Total 89.3 78.0 11.3 14.5%
Operating Income
Wholesale 11.5 9.5 2.0 21.1%
Retail 2.5 5.2 (2.7) -51.9%
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Operating Income Before
One-Time Charges 14.0 14.7 (0.7) -4.8%
One-Time Charges -- (7.7) 7.7 n/m
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Total 14.0 7.0 7.0 100.0%
EBITDA
Wholesale 13.0 10.9 2.1 19.3%
Retail 6.0 7.2 (1.2) -16.7%
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EBITDA Before One-
Time Charges 19.0 18.1 0.9 5.0%
One Time Charges -- (7.7) 7.7 n/m
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Total 19.0 10.4 8.6 82.7%
2001 2000 Variance %
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Segments
Revenue
Wholesale 808.8 814.7 (5.9) -0.7%
Retail 952.8 503.9 448.9 89.1%
Cons. Entries (90.7) (37.3) (53.4) -143.2%
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Total 1,670.9 1,281.3 389.6 30.4%
Net Revenue
Wholesale 187.9 183.2 4.7 2.6%
Retail 143.4 92.5 50.9 55.0%
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Total 331.3 275.7 55.6 20.2%
Operating Income
Wholesale 39.0 49.7 (10.7) -21.5%
Retail 18.9 21.4 (2.5) -11.7%
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Operating Income Before
One-Time Charges 57.9 71.1 (13.2) -18.6%
One-Time Charges (6.9) (7.7) 0.8 n/m
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Total 51.0 63.4 (12.4) -19.6%
EBITDA
Wholesale 44.6 55.1 (10.5) -19.1%
Retail 31.6 27.6 4.0 14.5%
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EBITDA Before One-
Time Charges 76.2 82.7 (6.5) -7.9%
One Time Charges (6.9) (7.7) 0.8 n/m
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Total 69.3 75.0 (5.7) -7.6%
Note to Editors: Keywords -- earnings reports, finance, transportation, business, california, logistics, trucking
Note: Issued by Potash & Company, Alameda CA /Steve Potash, tel. 510/865-0800 or sjpotash@potashco.com
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