AKRON, Ohio -- Roadway Express, Inc. (Nasdaq: ROAD) reports net income of $10,845,000 or $0.57 per share (diluted), for its third quarter which ended September 9, 2000. This represents an increase of 12.4% over net income of $9,645,000, or $0.50 per share (diluted), in the third quarter of 1999. Revenues for the third quarter of 2000 were $698,867,000, up 7.2% when compared to revenues of $652,218,000 for the third quarter of 1999.
For the 36 weeks constituting the Company's first three quarters, net income was $31,107,000, or $1.64 per share (diluted), 23.4% above net income of $25,208,000, or $1.32 per share (diluted), for the same period in 1999. For the first three quarters of 2000, revenues were $2,083,545,000, an increase of 10.9% when compared to revenues of $1,878,618,000 for the first three quarters of last year.
In the third quarter, total tonnage was down 1.7% compared to the third quarter of 1999. Less-than-truckload (LTL) tons were down 0.2% and truckload tonnage was down 7.8%. Revenue per ton for the quarter increased 9.0%, and operating expenses per ton rose 8.8% over 1999.
Michael W. Wickham, Chairman of the Board of Directors and CEO of Roadway Express, stated, "Despite a slight decline in tonnage, we are operating at acceptable capacity levels while improving freight rates. We still see opportunities for improvement, but are generally satisfied with these volumes and our double-digit income growth during the third quarter. As expected, tonnage comparisons this quarter were not easy, since we experienced an extremely strong second half of 1999."
Wickham added, "On September 1, we implemented a general freight rate increase of approximately 5.6% that had a very minor impact on our third quarter which ended September 9. We expect to see the full benefit of this increase in our fourth quarter."
"As we enter our busiest season, we will continue to maintain the excellence of our core service while concentrating on growth through our regional and specialty market initiatives. We will also continue to pursue our yield improvement and cost control strategies," Wickham concluded.
Revenue and earnings (unaudited) for the twelve weeks constituting the Company's third quarter, with comparable figures for 1999, are as follows:
Twelve Weeks Ended
(Third Quarter)
Sept. 9, Sept. 11,
2000 1999
-------- --------
(in thousands,
except per share data)
Revenue $698,867 $652,218
Operating Expenses 680,265 635,999
-------- --------
Operating Income 18,602 16,219
Other Income - Net 290 396
-------- --------
Income Before Income Taxes 18,892 16,615
Provision For Income Taxes 8,047 6,970
-------- --------
Net Income $ 10,845 $ 9,645
-------- --------
-------- --------
Earnings per Share--basic $ 0.58 $ 0.51
Earnings per Share--diluted $ 0.57 $ 0.50
Average Shares Outstanding--basic 18,649 18,815
Average Shares Outstanding--diluted 19,011 19,122
Revenue $698,867 $652,218
Operating Expenses 680,265 635,999
-------- --------
Operating Income 18,602 16,219
Other Income - Net 290 396
-------- --------
Income Before Income Taxes 18,892 16,615
Provision For Income Taxes 8,047 6,970
-------- --------
Net Income $ 10,845 $ 9,645
-------- --------
-------- --------
Earnings per Share--basic $ 0.58 $ 0.51
Earnings per Share--diluted $ 0.57 $ 0.50
Average Shares Outstanding--basic 18,649 18,815
Average Shares Outstanding--diluted 19,011 19,122
Thirty-six Weeks Ended
(Three Quarters)
Sept. 9, Sept. 11,
2000 1999
---------- ----------
(in thousands,
except per share data)
Revenue $2,083,545 $1,878,618
Operating Expenses 2,030,847 1,836,146
---------- ----------
Operating Income 52,698 42,472
Other Income - Net 1,495 1,445
---------- ----------
Income Before Income Taxes 54,193 43,917
Provision For Income Taxes 23,086 18,709
---------- ----------
Net Income $ 31,107 $ 25,208
---------- ----------
---------- ----------
Earnings per Share--basic $ 1.67 $ 1.34
Earnings per Share--diluted $ 1.64 $ 1.32
Average Shares Outstanding--basic 18,664 18,806
Average Shares Outstanding--diluted 19,005 19,085
Roadway Express operates with 12 weeks in each of the first three
quarters and 16 weeks in the fourth quarter.
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A conference call discussing this quarter's performance with securities analysts will be simulcast live on the Company's web site at www.roadway.com beginning at 11:00 AM Eastern Time today. The current call will remain available for playback until replaced by the next quarterly conference call.
While most of the information provided herein is historical, some of the comments made are forward-looking statements. The Company's actual performance may differ from that forecast as a result of variable factors such as the state of the national economy, fuel costs, capacity and rate levels in the motor-freight industry and the success of the Company's operating plans.
Included in the Dow Jones Transportation Average, Roadway Express, Inc. (Nasdaq: ROAD) is a leading transporter of industrial, commercial and retail goods with a variety of innovative services designed to meet customer needs. An ISO 9002 certified carrier, Roadway provides seamless service between all 50 states, Canada, Mexico and Puerto Rico including export services to 66 countries. The Company is dedicated to being the most reliable, responsive, efficient -- and safe -- motor carrier in the industry. For additional information, contact the Company at www.roadway.com.
