Celadon Group Reports Net Income of $9 Million Due to Reduced Costs
August 6, 2012
Celadon Group Inc. reported net income of $9 million for the second quarter, up from $5.5 million in the same period in 2011.
Revenue increased 4% to $157.5 million.
CGI's operating ratio, operating expenses as a percentage of revenue excluding fuel surcharge, for the second quarter was 87.2%, which is 3.7% less than the 90.9% rate in the second quarter of June 2011. The company said its operating ratio was reduced to 90.2% for the 2012 fiscal year compared with 93.4% for the 2011 fiscal year.
The company credited a 4.1% rate increase, a decrease in overall equipment costs, and a decrease in operations and maintenance expenses. CGI's average tractor age decreased to 1.5 years and its trailers to 2.8 years. To reduce its equipment costs, CGI reduced the number of tractors to trailers it operated to support its existing business levels.
A decease in miles per seated truck of about 4% when compared with 2011 offset the improvements noted above, which the company said was due to the impact of improved freight selection.
CGI reported that it was able to increase its average seated count by 7.2% due to acquisitions the company made during the year. This gives CGI more capacity that will allow it to increase miles as fleets exit the market and position the company to take advantage of business opportunities as the economic freight market improves.