Yellow, Arkansas Best Report Financials
Two trucking company parents have reported their financial results for the first quarter of the year
Two trucking company parents have reported their financial results for the first quarter of the year.
Yellow, Overland Park, Kan., reported first quarter 2002 income, before unusual items and the cumulative effect of a change in accounting principle, of $2.7 million. That compares to income for the first quarter of 2001 of $5.4 million.
Including unusual items, income before the cumulative effect of a change in accounting principle was $2.1 million, compared to $1.7 million in the first quarter of last year.
Consolidated operating revenue for the first quarter was $762 million, down 8.4 percent, from $832 million last year. Consolidated operating income, before unusual items, was $9.1 million this quarter, compared to $18.4 million in the first quarter of last year. Including unusual items, consolidated operating income was $8.1 million compared to $12.4 million last year.
"We have added to our momentum by successfully completing an equity offering, by advancing the spin-off of SCS Transportation, and through the continued solid performance of our operating and technology companies in a difficult environment," said Bill Zollars, Yellow Corporation Chairman, President and CEO.
The first quarter of 2002 included a previously announced non-cash charge of $75.2 million, or $2.97 per share, for the impairment of goodwill associated with Jevic Transportation.
Yellow Transportation reported first quarter revenue of $565 million, down 9.8 percent on a per-day basis from $636 million in the 2001 first quarter. Operating income, before unusual items, was $7.2 million, down from $14.2 million in the 2001 first quarter.
Meridian IQ was formed earlier this year, and formally launched in March, as the Yellow platform for non-asset-based transportation services. Operating revenue was $15 million for the first quarter of 2002, and operating losses excluding unusual items were $1.4 million.
Consolidated operating revenue for SCS Transportation, the holding company of Saia and Jevic, was $184 million for the first quarter of 2002, down 4.3 percent on a per-day basis from $196 million a year ago. Operating income, before unusual items, was $5.1 million, down only about 5 percent from $5.4 million last year.
Arkansas Best, Fort Smith, Ark., announced first quarter 2002 income, before the cumulative effect of an accounting change, of $1.5 million, compared to 2001 first quarter net income of $9.1 million. In addition, during this year's first quarter, Arkansas Best recognized a non-cash impairment loss of $23.9 million on goodwill associated with its Clipper subsidiary.
Including the goodwill impairment charge, Arkansas Best had a first quarter 2002 net loss of $22.5 million.
"Low business levels had a significant impact on our company's operations and results," said Robert A. Young III, Arkansas Best President and CEO. "ABF's tonnage during the quarter declined further than we had previously anticipated. Considering the amount of freight in our system, ABF's level of first quarter profitability is not surprising. As a result of the ongoing poor economic environment, Clipper was unprofitable during the first quarter."
During the first quarter of 2002, ABF Freight System’s revenue was $288.6 million, a per-day decline of 9.9% compared to the first quarter of 2001. First quarter 2002 operating income at ABF was $5.5 million versus $21 million during last year's first quarter.
Compared to the first quarter of 2001, LTL shipments per day moving in two-day transit time lanes decreased 5.1% versus a 7.5% shipment decrease in ABF's longer haul business.
Clipper's first quarter 2002 revenue was $25.9 million versus $30.8 million during the first quarter of 2001.
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