Celadon Second Quarter Profit More Than Doubles
August 06, 2014
The trucking operation Celadon Group Inc. more than doubled its net income in the second quarter of the year while revenue increased 21.4%.
Revenue was $197.4 million compared to $162.6 million the same time a year earlier. Freight revenue, which excludes fuel surcharges, increased 22.3% to $160.7 million from $131.4 during the same time for the Indiana-based fleet.
Net income increased $8.3 million to $15.5 million in the quarter from $7.2 million for the same quarter last year. Earnings per diluted share increased to 65 cents from 31 cents during the same time. Included in net income and earnings per share was approximately $8.8 million and 36 cents related to the sale of the minority ownership interest in Truckers B2B, which provides discount programs to small and mid-size trucking companies.
For the twelve months ending June 30, which concludes Celadon’s 2014 fiscal year, revenue increased 23.7% to $759.3 million in 2014 from $613.6 million last year. Freight revenue, which excludes fuel surcharges, increased 25.8% to $615.4 million in 2014 from $489.0 million. Net income increased 12.4% to $30.7 million in 2014 from $27.3 million during 2013, while earnings per diluted share increased to $1.29 in 2014 from $1.17 for the same period last year.
“We have seen strong freight volumes and an increasing seated count at the end of the quarter, which has continued into the September 2014 quarter,” said Paul Will, president and CEO. “The June 2014 quarter was negatively impacted by approximately $1.4 million, or 3 cents per share, for severance and contractual buyouts primarily related to previous acquisitions as we continue to generate synergies and cost savings from the integration of these acquisitions.”
During the quarter Celadon said it took delivery of 225 trucks and has on order 575 trucks to replace acquisition equipment and as it continues to refresh the remaining fleet. Gains on sales of assets were $2.2 million in the June 2014 quarter compared with $600,000 in the June 2013 quarter.
“We increased our average seated tractor count by 421, or 15%, to 3,191 in the June 2014 quarter compared to 2,770 in the June 2013 quarter, a significant operating metric improvement that resulted in increased revenue for the quarter,” said Will. “This increase was a result of expanding our recruiting efforts at terminal locations, having established a driving school that now has several locations and our acquisitions over the past year.”
Celadon Group provides long-haul, regional, local, dedicated, intermodal, temperature-controlled, flatbed and expedited freight service across the U.S., Canada and Mexico and has Celadon Logistics Services, which provides freight brokerage services, freight management and supply chain management, including warehousing and distribution services.
More information about the company’s financial performance is on the Celadon website.