Net income for Transport Corporation of America, Minneapolis, MN, dropped to $1.2 million, compared with 1998 fourth quarter net income of $3.2 million.
Robert J. Meyers, president and ceo, said "The fourth quarter of 1999 was a difficult one for us. The entire company was saddened by the death of our founder, chairman and chief executive officer, James B. Aronson, in December. Jim, who had led this company since its inception, is missed by all of us here at Transport America and by all in the industry."
The company also announced that it has mutually agreed to terminate its merger agreement with USFreightways. The company continues to engage Deutsche Banc Alex. Brown to pursue opportunities to enhance shareholder value. "In light of recent events,” Meyers said, “we
have spent considerable time over the past few months performing a board-sponsored strategic review of our business. We have not only explored strategic relationships, but also evaluated and modified certain customer relationships and business practices that position the company well for the future. Transport America is a strong organization with considerable opportunity going forward."
For the twelve months ended Dec. 31, 1999, the company reported revenues of $285.6 million, a 16.1 percent increase over prior year's revenues of $245.9 million. Full-year 1999 net income was $8.3 million, compared with $10.7 million in 1998. Operating income for the twelve-month period, including special charges, was $21.1 million compared with $22.5 million in 1998.
Meyers was optimistic about the future. "We have diversified our customer base by adding several important new customers to our already strong customer list since November. We have increased our company driver count by 4 percent since the fourth quarter and have significantly expanded our ability to hire independent contractors. Our company operated commercial driver license school will open in late February of 2000 with a waiting list well into March. In addition, we continue to expand our opportunities in our non-asset-based logistics business."