Allied Holdings Inc., the parent company of several subsidiaries engaged in providing distribution and transportation services of new and used vehicles to the automotive industry,
said net income for the second quarter was $3.4 million.
That compares to net income of $2.1 million in the second quarter of 2002, an increase of 61.9% or $1.3 million.
Revenues for the second quarter of 2003 were $230.1 million compared to revenues of $239.0 million in the second quarter last year, a decline of 3.7%. Earnings before interest, taxes, depreciation and amortization, and gains and losses on disposal of assets (Adjusted EBITDA) for the second quarter of 2003 were $19.4 million compared to $23.5 million of Adjusted EBITDA reported during the second quarter last year, a decline of $4.1 million.
The decline in revenues in the second quarter this year compared to last year was primarily the result of a 5.8% decrease in vehicle deliveries mainly as a result of lower OEM production levels. The company estimates that the impact of lower OEM production on vehicle deliveries reduced Adjusted EBITDA in the second quarter of 2003 by approximately $4 million compared to the prior year period.
Commenting on the results, Hugh E. Sawyer, Allied's president and chief executive officer, said, "Higher investment income from our captive insurance company and foreign currency exchange gains pushed net income higher in the second quarter of 2003 when compared to the second quarter last year. Fortunately, this increase in other income more than offset the impact of lower new vehicle production during the second quarter."
Sawyer added, "During the second quarter a number of internal initiatives continued to gain traction. For example, incidents of cargo damage, worker injuries and traffic accidents actually declined versus the same period in 2002. The benefit from improved execution of internal initiatives virtually eliminated the approximate $2 million increase in costs during the second quarter from increased wages and benefits to our Teamster-represented employees."