Alabama-based Boyd Bros. Transportation is writing off the value of about 50 tractors and other equipment at its WTI Transport division.
Boyd Bros. will record fourth quarter charges totaling approximately $725,000 (about $445,000 or 16 cents per share after tax) associated with its WTI Transport division, formerly Welborn Transport.
The charges will include a write-off of approximately $425,000 on power equipment to reduce the book carrying value of approximately 50 tractors at WTI to fair value, reflecting the impact of declining market values for used tractors as more equipment becomes available in the face of soft market conditions. The company also will increase its reserve at WTI by about $300,000 for receivables relating to leases originated with owner/operators. The company noted that no write-downs of these kinds are currently expected for its Boyd Bros. division.
Separately, Boyd Bros. noted that its freight volumes weakened in November and early December following a solid sales month in October. These freight trends are below the company's expectations for the period and, if they continue, may affect Boyd Bros.' fourth quarter revenues and net results. Consequently, the company says it continues to believe that its results from operations for the fourth quarter, excluding the impact of asset write-downs, will be at best breakeven.
In the fourth quarter last year, Boyd Bros. reported operating revenues of $29.1 million and a net loss of $1.3 million or $0.45 per share, which included a one-time charge to increase reserves on lease receivables.
Boyd Bros. will record fourth quarter charges totaling approximately $725,000 (about $445,000 or 16 cents per share after tax) associated with its WTI Transport division, formerly Welborn Transport.
The charges will include a write-off of approximately $425,000 on power equipment to reduce the book carrying value of approximately 50 tractors at WTI to fair value, reflecting the impact of declining market values for used tractors as more equipment becomes available in the face of soft market conditions. The company also will increase its reserve at WTI by about $300,000 for receivables relating to leases originated with owner/operators. The company noted that no write-downs of these kinds are currently expected for its Boyd Bros. division.
Separately, Boyd Bros. noted that its freight volumes weakened in November and early December following a solid sales month in October. These freight trends are below the company's expectations for the period and, if they continue, may affect Boyd Bros.' fourth quarter revenues and net results. Consequently, the company says it continues to believe that its results from operations for the fourth quarter, excluding the impact of asset write-downs, will be at best breakeven.
In the fourth quarter last year, Boyd Bros. reported operating revenues of $29.1 million and a net loss of $1.3 million or $0.45 per share, which included a one-time charge to increase reserves on lease receivables.
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