Cannon Express, Springdale, Ark., announced that CFOex Inc. will assume day-to-day management responsibilities of the company.
CFOex, which Cannon engaged earlier this month, is composed of former executives from successful trucking companies and provides financial advisory, merger & acquisition structuring and capital funding services to trucking companies. It will take over the responsibilities of the chief executive officer and the chief operating officer. Effective immediately, Dean Cannon resigned his position as president and CEO, and his wife, Rose Marie Cannon, resigned her position as secretary and treasurer. Dean Cannon will continue to serve as the Chairman of the Board of Directors and Mrs. Cannon will remain as a director. CFOex will report to the Cannon Board of Directors.
In May, Cannon reported third-quarter loss of $2.37 million on revenues of $18.53 million, compared to a net loss of $795,777 on revenues of $20.85 million in the third fiscal quarter of 2001.
In March, Cannon laid off about a fourth of its non-driving administrative staff, and cut other administrative costs, eliminating approximately $2.5 million in annual expense. But apparently it was not enough.
"Due to the company's lack of operating success, it is imperative that Cannon Express take immediate steps to improve its operating performance and liquidity,” said Dean Cannon. “I believe retaining the managerial and financial experience and talent of CFOex is in the best interest of the company's shareholders."
Bruce Jones, founder and president of CFOex, will become the interim CEO at Cannon. Associated with the transportation industry since 1976, Jones has been a financial executive at J.B. Hunt and Schneider National.
Calvin Turner will serve as interim chief operating officer. He served as executive vice president of Alabama Motor Express and president of Summerford Truck Lines and has extensive experience with "entrepreneurial owners" and the financial decisions they must make.
Cannon Express is an irregular-route truckload carrier serving all 48 states and Canada with its fleet of approximately 775 trucks and 1,450 trailers.
CFOex, which Cannon engaged earlier this month, is composed of former executives from successful trucking companies and provides financial advisory, merger & acquisition structuring and capital funding services to trucking companies. It will take over the responsibilities of the chief executive officer and the chief operating officer. Effective immediately, Dean Cannon resigned his position as president and CEO, and his wife, Rose Marie Cannon, resigned her position as secretary and treasurer. Dean Cannon will continue to serve as the Chairman of the Board of Directors and Mrs. Cannon will remain as a director. CFOex will report to the Cannon Board of Directors.
In May, Cannon reported third-quarter loss of $2.37 million on revenues of $18.53 million, compared to a net loss of $795,777 on revenues of $20.85 million in the third fiscal quarter of 2001.
In March, Cannon laid off about a fourth of its non-driving administrative staff, and cut other administrative costs, eliminating approximately $2.5 million in annual expense. But apparently it was not enough.
"Due to the company's lack of operating success, it is imperative that Cannon Express take immediate steps to improve its operating performance and liquidity,” said Dean Cannon. “I believe retaining the managerial and financial experience and talent of CFOex is in the best interest of the company's shareholders."
Bruce Jones, founder and president of CFOex, will become the interim CEO at Cannon. Associated with the transportation industry since 1976, Jones has been a financial executive at J.B. Hunt and Schneider National.
Calvin Turner will serve as interim chief operating officer. He served as executive vice president of Alabama Motor Express and president of Summerford Truck Lines and has extensive experience with "entrepreneurial owners" and the financial decisions they must make.
Cannon Express is an irregular-route truckload carrier serving all 48 states and Canada with its fleet of approximately 775 trucks and 1,450 trailers.
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