Pacer International Reports First Quarter 2002 Results
Net revenue increased by $2.3 million, or 2.8 percent, in the first quarter of 2002 compared to the first quarter of 2001. Consolidated gross revenues of $382.4 million for the first quarter ended April 5, 2002, were down 13 percent from $440.3 million reported for the first quarter of 2001. 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. While net revenues increased, revenues for the company's Retail and Wholesale segments were both negatively impacted by continuing issues from 2001, including the general economic downturn, and particularly a cyclical slowdown in the automotive sector.
Operating income increased by $4.3 million, or almost 38 percent, to $15.7 million in the first quarter of 2002 from $11.4 million in the first quarter of 2001. The Wholesale segment accounted for substantially all of the increase, due primarily to increased net revenue, and partially offset by costs associated with expansion of the Wholesale sector's infrastructure. The Retail segment's income from operations was essentially flat, reflecting the continuing effects of the economic downturn discussed above, partially offset by savings associated with reduced headcount related to the segment's consolidation and integration activities during 2001 and elimination of goodwill amortization expense in 2002.
Don Orris, chairman and chief executive officer of Pacer International, said: "We are encouraged by the financial results of both the Retail and the Wholesale segments and the improved year-over-year results."
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 (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, including those set forth under the caption Risks Related to Our Business in the Company's Annual Report on Form 10-K for the year ended December 28, 2001. 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)
April 5, 2002
-------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $ --
Accounts receivable,net 193.7
Prepaid expenses and other 9.8
Deferred income taxes 4.0
-------------------
Total current assets 207.5
Property and equipment
Property, plant & equipment at cost 88.6
Accumulated depreciation (30.4)
-------------------
Property and equipment, net 58.2
Other assets
Intangible assets, net 281.5
Deferred income taxes 56.7
Other assets 10.3
-------------------
Total other assets 348.5
-------------------
Total assets $ 614.2
===================
Liabilities & Equity
Current liabilities
Current maturities of long-term debt and
capital leases $ 2.0
Accounts payable and accrued expenses 184.9
-------------------
Total current liabilities 186.9
Long-term liabilities
Long-term debt and capital leases 391.4
Other 3.1
-------------------
Total long-term liabilities 394.5
Minority interest -- exchangeable preferred
stock 25.7
Stockholders' equity
Common stock 0.1
Paid In capital 118.6
Other (0.3)
Retained earnings (deficit) (110.6)
Other accumulated comprehensive income (0.7)
-------------------
Total stockholders' equity 7.1
-------------------
Total liabilities and equity $ 614.2
===================
Pacer International, Inc.
Unaudited Consolidated Statement of Operations
($ millions)
1st Quarter 2002
--------------------------------------
Wholesale Retail Consolidated
Gross revenues $ 204.7 $ 204.9 $ 382.4
Cost of purchased transportation 152.0 174.4 299.2
----------------------------------------------------------------------
Net revenues 52.7 30.5 83.2
Margin 25.7% 14.9% 21.8%
Direct operating expenses 27.8 -- 27.8
Selling, general & admin. expenses 12.2 24.9 37.1
Depreciation expense 1.3 1.3 2.6
----------------------------------------------------------------------
Income from operations 11.4 4.3 15.7
Interest (income) expense 6.2 3.6 9.8
----------------------------------------------------------------------
Income before income taxes 5.2 0.7 5.9
Income tax 1.9 0.3 2.2
----------------------------------------------------------------------
Net income $ 3.3 $ 0.4 $ 3.7
======================================================================
EBITDA $ 12.7 $ 5.6 $ 18.3
Pacer International, Inc.
Unaudited Consolidated Statements of Operations
1Q02 1Q01 Variance %
----------------------------------------------------------------------
Segments
Revenue
Wholesale 204.7 205.6 (0.9) -0.4%
Retail 204.9 254.2 (49.3) -19.4%
Cons. Entries (27.2) (19.5) (7.7) -39.5%
----------------------------------------------------------------------
Total 382.4 440.3 (57.9) -13.2%
Net Revenue
Wholesale 52.7 44.5 8.2 18.4%
Retail 30.5 36.4 (5.9) -16.2%
----------------------------------------------------------------------
Total 83.2 80.9 2.3 2.8%
Operating Income
Wholesale 11.4 6.9 4.5 65.2%
Retail 4.3 4.5 (0.2) -4.4%
----------------------------------------------------------------------
Total 15.7 11.4 4.3 37.7%
EBITDA
Wholesale 12.7 8.4 4.3 51.2%
Retail 5.6 7.6 (2.0) -26.3%
----------------------------------------------------------------------
Total 18.3 16.0 2.3 14.4%
Note to Editors: Keywords -- earnings reports, finance, transportation, business, California, Ohio, logistics, trucking.
Note: Issued by Potash & Company, Alameda CA / Steve Potash, tel. 510/865-0800 or sjpotash@potashco.com
Email
