Consolidated Freightways, Vancouver, Wash., announced it has obtained financing to move forward with a plan to turn around the company's finances.
The news was released the same time it reported its financial results for the fourth quarter and year end 2001.
The company says the financing is part of a strategic turnaround plan to return Consolidated Freightways to profitability. It includes $45 million in real estate-backed loans, of which $20 million has been funded to date. In addition, GE Capital has converted its existing six-month financing plan to a 24-month $42 million real estate-backed facility. Both of these loans are secured by a portion of the company's unencumbered real estate assets. The GE Capital real estate facility supplements CF's existing $200 million five-year credit facility with GE, which is secured by the company's accounts receivable.
For the fourth quarter Consolidated Freightways reported a smaller revenue base of $500.8 million on which it incurred an operating loss of $33.5 million, compared to the year-ago fourth quarter's larger revenue base of $579.7 million on which it had an operating loss of $8.4 million.
The company's net loss for the fourth quarter of 2001 was $37.5 million, bringing the net loss for 2001 to $104.3 million. In 2000, the company reported a net loss of $6 million for the fourth quarter and a net loss of $7.6 million. Revenues for the full year 2001 were $2.2 billion versus $2.4 billion in 2000.
Total tonnage declined 9.3 percent for the quarter compared to last year and 3.6 percent for the year 2001. Revenue per hundredweight for the U.S. trucking subsidiary, excluding fuel surcharge, decreased by 0.3 percent to $18.28.