USF Corp. (NASDAQ:USFC), Chicago, Ill., announced results for the first quarter ended April 2, 2005. Revenue for the first quarter was $598 million
, compared to $617 million reported for the first quarter of 2004. The first quarter of 2004 included Red Star revenue of $57 million.
The company reported a net loss of $5.8 million for the first quarter ended April 2, 2005, compared to income of $7.1 million reported for the first quarter ended April 3, 2004. Reported diluted net loss per share was ($.20), compared to diluted net income per share of $0.26 in last year's first quarter.
A USF downgrade of expectations earlier this month sent a cloud over the announced purchase of USF by Yellow Roadway. At a conference call Friday, Yellow Roadway CEO Bill Zollars again told analysts the merger would yield benefits for both companies.
According to the USF press release, first quarter 2005 results include USF Red Star pre-tax shutdown costs and operating losses of $4.9 million or ($.11) per diluted share, operating losses and loss on sale of USF Processors of $7.8 million or ($.19) per diluted share, and fees related to the proposed merger with Yellow Roadway Corp. of $3.5 million or ($.08) per diluted share. The Statement of Significant Items, detailing the components of pre-tax charges, is included as an attachment to this earnings release.
For the first quarter, key LTL segment operating statistics as compared to the prior year period, excluding Red Star, were:
-- Billed revenue per day up 11.9%
-- Shipments per day up 3.4%
-- Lbs. per day up 5.7%
-- Billed revenue per shipment up 8.2%
-- Billed revenue per hundredweight up 5.9%
Thomas E. Bergmann, acting Chief Executive Officer of USF Corp., commented, "As we stated in our first quarter update, the year-over-year decline in diluted earnings per share was caused by a slowdown in the automotive sector that resulted in reduced volumes and productivity in the Midwest region, a highly competitive Southeast region from both a density and pricing perspective, and slower than anticipated growth in our Northeast region. We are addressing the volume and productivity decline in our Midwest region through an aggressive revenue enhancement and cost reduction program and our Northeast strategy is currently under review.
"Also, certain first quarter actions were deferred pending the merger with Yellow Roadway Corp. We would anticipate that any expected synergies that USF would have reaped from these initiatives will be realized post merger."
Less-Than-TruckloadTruckload
USF Glen Moore set an all-time first quarter record with operating profit of $1.1 million versus $0.8 million in the year ago quarter. USF Glen Moore recorded revenue for the first quarter of $31.1 million compared to $34.3 million in the first quarter of 2004. The decrease in revenue reflected a lower seated truck percentage than the prior year period. Revenue per tractor per day (excluding fuel surcharge) increased by 5% from the prior year's first quarter.
Logistics
USF Logistics revenue during the first quarter was $63.9 million versus $66.4 million for the prior year's quarter. USF Logistics recorded an operating loss of $5.6 million for the first quarter of 2005, including a $7.1 million loss on the sale of USF Processors and $0.7 million in USF Processors operating losses. USF Logistics recorded $1.6 million of operating profit in the first quarter of 2004, including $0.1 million in USF Processors operating losses. Profitability improvements were strongest in the transportation management and cross dock sectors for the first quarter of 2005.