RICHMOND, Va., Jan. 27 /PRNewswire-FirstCall/ -- Overnite Corporation
(Nasdaq: OVNT) today reported financial results for the quarter and year ended
December 31, 2004. Results for the quarter and year ended December 31, 2004
and 2003 are shown in accordance with generally accepted accounting principles
(GAAP). Results for the quarter and year ended December 31, 2003 are also
shown on a pro forma basis (a non-GAAP measure defined below) as if Overnite
Corporation ("Overnite") had become an independent company on January 1, 2003.
Fourth Quarter
Operating revenue for the fourth quarter was a record $421.4 million, an
increase of $43.3 million, or 11.4%, from $378.1 million in the fourth quarter
of 2003.
Net income was $16.6 million in the fourth quarter of 2004, an increase of
60.9% or $6.3 million, as compared to pro forma net income of $10.3 million
for the fourth quarter of 2003. Net income for the fourth quarter of 2003 was
$3.1 million. Fourth quarter 2004 diluted earnings per share were $0.59 as
compared with pro forma diluted earnings per share of $0.37 for the fourth
quarter of 2003.
Operating income for the fourth quarter of 2004 was $28.0 million as
compared to pro forma operating income of $18.8 million in the fourth quarter
of 2003. Operating income for the fourth quarter of 2003 was $4.9 million.
Overnite's operating ratio (total operating expenses divided by operating
revenue) was 93.4% for the fourth quarter of 2004, compared to 95.0% on a pro
forma basis for the fourth quarter of 2003. The operating ratio was 98.7% for
the fourth quarter of 2003.
"I am very pleased with the earnings growth and shareholder value we
created during Overnite's first full year as a standalone company. This past
year's achievements have been driven largely by our employees, who have
remained continuously focused on providing value to our customers with their
ready, willing and able attitude," said Leo Suggs, Chairman, Chief Executive
Officer and President of Overnite Corporation.
Year End
Operating revenue for the year was $1,647.5 million, an increase of $172.0
million, or 11.7%, from $1,475.5 million in the year of 2003.
Net income for the year was $63.3 million, an increase of 51.4% or $21.5
million, as compared to pro forma net income of $41.8 million for the year of
2003. Net income for the year of 2003 was $46.9 million. Diluted earnings
per share for the year of 2004 were $2.27 as compared with pro forma diluted
earnings per share of $1.50 for the year of 2003.
Operating income for the year of 2004 was $108.6 million as compared to
pro forma operating income of $75.4 million for the year of 2003. Operating
income for the year of 2003 was $67.4 million.
Overnite's operating ratio (total operating expenses divided by operating
revenue) was 93.4% for the year of 2004, compared to 94.9% on a pro forma
basis for the year of 2003. The operating ratio was 95.4% for the year of
2003.
Business Outlook
Despite the unfavorable impact of lower discount rates on pension expense,
Overnite anticipates first quarter 2005 earnings per diluted share to be $0.32
to $0.38, and earnings per diluted share for the full year of 2005 to be $2.60
to $2.70.
"We were very successful in executing our business plans in 2004 and were
particularly pleased by our ability to improve our overall mix of customers.
We are optimistic about our prospects for 2005 and believe with a strong
economy and a continuation of our improving customer mix in 2005, we shall be
able to build on the momentum of our 2004 results," said Mr. Suggs.
Investor Conference Call and Web Simulcast
Overnite will conduct a conference call on January 28, 2005, at 10:30 a.m.
EST to discuss the fourth quarter results of 2004, continuing guidance for
2005 and other developments. The number to call for this teleconference is
(800) 299-6183 or (617) 801-9713 for international calls. The passcode will
be 85384500. Callers should dial in five to 10 minutes in advance of the
conference call. A replay of the call will be available for 48 hours after
the call has been completed by dialing (888) 286-8010 or (617) 801-6888 for
international callers and entering passcode 11943488.
The call also will be webcast live via Overnite's Web site at
http://www.ovnt.com and will be archived there for future playback. The
webcast will also be available via StreetEvents at
http://www.streetevents.com.
Supplemental financial information is below, including a discussion of the
pro forma financial measures included in this press release and a separate
table that reconciles the Consolidated Condensed Statements of Income for the
quarter and year ended December 31, 2003, to the pro forma amounts.
Additional information is available at Overnite's Web site:
http://www.ovnt.com. Overnite's contact for investors is Mike Mahan, (804)
231-8852. Overnite's media contact is Ira Rosenfeld, (804) 291-5362.
Overnite Corporation is one of America's leading less-than-truckload
transportation companies. Its principal operating company, Overnite
Transportation Company, operates in all 50 states, Canada, Puerto Rico, Guam,
the U.S. Virgin Islands and Mexico. Its other operating company, Motor Cargo,
is a regional less-than-truckload carrier primarily serving the western United
States, Canada and Mexico. Together, they form one of the largest less-than-
truckload carriers in the United States with over 200 service centers.
FORWARD-LOOKING AND CAUTIONARY STATEMENTS
This press release contains "forward-looking statements" within the
meaning of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements include information
relating to future events, future financial performance, strategy,
expectations, competitive environment, regulation and availability of
resources.
Forward-looking statements should not be read as a guarantee of future
performance or results. Forward-looking statements are based on information
available at the time and/or management's good faith belief with respect to
future events, and are subject to risks and uncertainties that could cause
Overnite's actual performance or results to differ materially from those
expressed in the statements. Important factors that could cause such
differences include, but are not limited to: whether Overnite is fully
successful in implementing its financial and operational initiatives; industry
competition, conditions, performance and consolidation; legislative and/or
regulatory developments; the effects of adverse general economic conditions,
both within the
United States and globally; any adverse economic or operational
repercussions from terrorist activities, any government response thereto and
any future terrorist activities, war or other armed conflicts; changes in fuel
prices; changes in labor costs; labor stoppages; the outcome of claims and
litigation; natural events such as severe weather, floods and earthquakes; and
other factors detailed from time to time in the reports that Overnite files
with the Securities and Exchange Commission.
Overnite assumes no obligation to update forward-looking statements to
reflect actual results, changes in assumptions or changes in other factors
affecting forward-looking information except to the extent required by
applicable securities laws.
OVERNITE CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(Thousands of Dollars)
For the three months
Ended December 31,
Pro forma
2004 2003 2003
Operating Revenue $421,356 $378,073 $378,073
Operating Expenses:
Salaries, wages and
employee benefits 237,366 236,595 221,902
Supplies and expenses 44,561 33,354 33,354
Operating taxes 12,930 13,039 13,039
Claims and insurance 11,814 10,247 10,521
Rents and purchased
transportation 47,362 44,554 44,554
Communication and
utilities 5,454 5,034 5,034
Depreciation 14,323 14,382 14,496
Other 19,529 15,939 16,404
Total operating expenses 393,339 373,144 359,304
Operating Income 28,017 4,929 18,769
Other Income and Expense:
Interest income from
Union Pacific Corporation - 1,389 -
Interest expense 1,363 1,045 1,600
Other income 586 179 179
Income before Income Taxes 27,240 5,452 17,348
Income tax expense 10,688 2,342 7,061
Net Income $16,552 $3,110 $10,287
Net income per share - basic $0.59 $0.11 $0.37
Net income per share -
diluted $0.59 $0.11 $0.37
Number of shares - basic 27,861,221 27,661,533 27,861,221
Number of shares - diluted 28,120,311 27,690,775 28,120,311
Operating Ratio 93.4% 98.7% 95.0%
Operating Statistics % Change
Gross Weight hauled
(millions of pounds):
LTL(1) 2,232.9 2,171.8 2.8%
Truckload(1) 463.9 381.8 21.6
Total 2,696.8 2,553.6 5.6%
Shipments (000's)
LTL(1) 2,293.1 2,382.8 (3.8)%
Truckload(1) 32.0 26.9 19.0
Dedicated truckload 22.9 19.5 17.4
Total 2,347.9 2,429.3 (3.4)%
LTL weight per LTL
shipment (pounds)(1) 973.7 911.5 6.8%
Length of Haul (miles) 779.3 796.5 (2.2)
LTL revenue including
fuel surcharge $365,735 $336,026 8.8
TL revenue including fuel
surcharge $30,120 $23,358 28.9
LTL revenue per CWT
(including fuel
surcharge)(1) $16.38 $15.47 5.9
LTL revenue per CWT
(excluding fuel
surcharge)(1) $15.09 $15.00 0.6
TL revenue per CWT
(including fuel
surcharge)(1) $6.49 $6.12 6.0
TL revenue per CWT
(excluding fuel
surcharge)(1) $5.85 $5.93 (1.3)
(1) Effective January 1, 2004 less than truckload (LTL) weight, shipments,
LTL weight per LTL shipment and LTL revenue per CWT include all shipments with
weight under 10,000 pounds. Truckload (TL) weight and shipments include
shipments with weight of 10,000 pounds or more. Previously, LTL and TL
shipments and weight were determined by weight as well as the size of the
shipment.
Weight, shipments, LTL weight per LTL shipment and LTL revenue per CWT
for the fourth quarter of 2003 have been calculated on a consistent basis with
the definition described above which became effective January 1, 2004.
OVERNITE CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(Thousands of Dollars)
For the year
Ended December 31,
Pro forma
2004 2003 2003
Operating Revenue
$1,647,461 $1,475,463 $1,475,463
Operating Expenses:
Salaries, wages and
employee benefits 947,592 884,053 870,804
Supplies and expenses 155,637 124,887 124,887
Operating taxes 55,569 52,738 52,738
Claims and insurance 50,765 54,706 56,778
Rents and purchased
transportation 177,557 157,513 157,513
Communication and
utilities 20,772 20,937 20,937
Depreciation 58,522 57,169 57,589
Other 72,418 56,108 58,806
Total operating expenses 1,538,832 1,408,111 1,400,052
Operating Income 108,629 67,352 75,411
Other Income and Expense:
Interest income from
Union Pacific Corporation - 12,411 -
Interest expense 5,352 2,077 6,135
Other income 723 467 467
Income before Income Taxes 104,000 78,153 69,743
Income tax expense 40,672 31,294 27,926
Net Income $63,328 $46,859 $41,817
Net income per share - basic $2.28 $1.70 $1.50
Net income per share -
diluted $2.27 $1.70 $1.50
Number of shares - basic 27,788,557 27,540,715 27,788,557
Number of shares - diluted 27,959,310 27,548,086 27,959,310
Operating Ratio 93.4% 95.4% 94.9%
Operating Statistics % Change
Gross Weight hauled
(millions of pounds):
LTL(1) 9,182.3 8,501.3 8.0%
Truckload(1) 1,846.3 1,511.4 22.2
Total 11,028.6 10,012.7 10.1%
Shipments (000's)
LTL(1) 9,596.1 9,555.1 0.4%
Truckload(1) 128.6 106.6 20.6
Dedicated truckload 86.5 78.4 10.3
Total 9,811.2 9,740.1 0.7%
LTL weight per LTL
shipment (pounds)(1) 956.8 889.8 7.5%
Length of Haul (miles) 771.4 784.2 (1.6)
LTL revenue including
fuel surcharge $1,445,515 $1,315,134 9.9
TL revenue including fuel
surcharge $111,913 $90,352 23.9
LTL revenue per CWT
(including fuel
surcharge)(1) $15.74 $15.47 1.7
LTL revenue per CWT
(excluding fuel
surcharge)(1) $14.83 $14.98 (1.0)
TL revenue per CWT
(including fuel
surcharge)(1) $6.06 $5.98 1.3
TL revenue per CWT
(excluding fuel
surcharge)(1) $5.63 $5.79 (2.8)
(1) Effective January 1, 2004 less than truckload (LTL) weight, shipments,
LTL weight per LTL shipment and LTL revenue per CWT include all shipments with
weight under 10,000 pounds. Truckload (TL) weight and shipments include
shipments with weight of 10,000 pounds or more. Previously, LTL and TL
shipments and weight were determined by weight as well as the size of the
shipment.
Weight, shipments, LTL weight per LTL shipment and LTL revenue per CWT
for the year of 2003 have been calculated on a consistent basis with the
definition described above which became effective January 1, 2004.
OVERNITE CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION
(Unaudited)
(Thousands of Dollars)
As of
December 31, December 31,
Assets 2004 2003
Current Assets
Cash and cash equivalents $20,774 $11,068
Accounts receivable 171,804 152,285
Other current assets 59,624 34,905
Total current assets 252,202 198,258
Net properties 522,548 499,446
Total other assets 112,650 133,026
Total assets $887,400 $830,730
Liabilities and Common Shareholders'
Equity
Current liabilities $200,121 $201,846
Non-current liabilities:
Long term debt 95,625 115,500
Other non-current liabilities 175,118 132,316
Total non-current liabilities 270,743 247,816
Common shareholders' equity 416,536 381,068
Total liabilities and common
shareholders' equity $887,400 $830,730
OVERNITE CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
(Thousands of Dollars)
Year Ended
Year Ended December 31,
December 31, 2003 (a)
2004
Cash provided by operating activities:
Net income $63,328 $46,859
Depreciation 58,522 57,169
Change in current assets and
liabilities (45,668) 12,629
Other 49,783 3,921
Cash provided by operating
activities 125,965 120,578
Cash used in investing activities:
Capital investment, net of sales
proceeds (81,887) (56,900)
Cash used in investing activities (81,887) (56,900)
Cash provided by (used in) financing
activities:
Repayment of debt (33,375) -
Dividends paid to shareholders (4,488) -
Proceeds from debt, net of
deferred finance costs paid - 123,254
Dividends and advances paid to
Union Pacific Corporation, net - (174,882)
Cash overdraft 3,491 (3,068)
Cash provided by (used in)
financing activities (34,372) (54,696)
Net change in cash: 9,706 8,982
Cash at beginning of period 11,068 2,086
Cash at end of period $20,774 $11,068
(a) The Consolidated Condensed Statement of Cash Flows for the period
ended December 31, 2003 is not adjusted for the pro forma effects as if the
Company were an independent entity. As a result, net income for the period
does not include stand-alone operating expenses or interest expense.
Furthermore, 2003 results include intercompany interest income which is no
longer earned.
Pro forma Results
Overnite became a stand-alone company on November 5, 2003, as a result of
a divestiture by Union Pacific Corporation (UPC). Pro forma results have been
provided to present results as if Overnite were an independent, stand-alone
public entity for the fourth quarter and year of 2003.
These pro forma financial measures are alternatives to measures determined
in accordance with GAAP. They should not be considered in isolation or as an
alternative to measures determined in accordance with GAAP. Set forth below
is a reconciliation of these non-GAAP financial measures to the most directly
comparable financial measures calculated and reported in accordance with GAAP.
Management believes these non-GAAP financial measures are more reflective
of continuing operations as they present investors with information about the
impact of the divestiture from UPC and the related initial public offering on
the Corporation's operations and, in doing so, improve transparency to
investors and enhance period-to-period comparability of operations and
financial performance.
Pro forma operating income for the fourth quarter and year of 2003
includes stand-alone operating expenses equivalent to the fourth quarter and
year of 2004, as shown below, and is calculated as if the divestiture had
occurred on January 1, 2003.
Pro forma net income for the fourth quarter and year of 2003 excludes the
after-tax effects of $1.4 million and $12.4 million, respectively, of
intercompany interest income received from UPC. Pro forma net income also
includes the after-tax effects of incremental stand-alone operating expenses
and includes the after-tax effects of interest expense as if the divestiture
had occurred on January 1, 2003. The tables below shows the calculation of pro
forma net income for the quarter and year ended December 31, 2003.
OVERNITE CORPORATION
PRO FORMA CONSOLIDATED CONDENSED STATEMENT OF INCOME
(Unaudited)
(Thousands of Dollars)
For the three months ended
December 31, 2003
Pro Forma
Actual Adjustments(a) Pro Forma
Operating Revenue $378,073 $ - $378,073
Operating Expenses:
Salaries, wages and
employee benefits 236,595 (14,693)(b) 221,902
Supplies and expenses 33,354 33,354
Operating taxes 13,039 13,039
Claims and insurance 10,247 274(c) 10,521
Rents and purchased
transportation 44,554 44,554
Communication and
utilities 5,034 5,034
Depreciation 14,382 114(d) 14,496
Other 15,939 465(e) 16,404
Total operating expenses 373,144 (13,840) 359,304
Operating Income 4,929 13,840 18,769
Other Income and Expense:
Interest income from Union
Pacific Corporation 1,389 (1,389)(f) -
Interest expense 1,045 555 (g) 1,600
Other income 179 179
Income before Income Taxes 5,452 11,896 17,348
Income tax expense 2,342 4,719 7,061
Net Income $3,110 $7,177 $10,287
Operating Ratio 98.7% 95.0%
Net income per share:
Basic $0.11 $0.37(h)
Diluted $0.11 $0.37(h)
Weighted average number of
shares outstanding(h):
Basic 27,661,533 27,861,221
Diluted 27,690,775 28,120,311
Notes:
(a) Overnite Corporation became a stand-alone company on November 5,
2003. Pro forma adjustments are included and calculated to provide
information as if Overnite Corporation had been a stand-alone company
for the entire three months of the fourth quarter of 2003.
(b) Adjustment reflects incremental salaries, wages and benefits less
accelerated vesting of Union Pacific Corporation benefits related to
the divestiture of Union Pacific Corporation.
(c) Adjustment to reflect incremental costs for directors and officers
and various other insurance coverages.
(d) Adjustment to reflect incremental depreciation.
(e) Adjustment to reflect incremental legal fees and other professional
fees.
(f) Intercompany interest from Union Pacific Corporation was earned on a
monthly basis in periods prior to November 5, 2003. This
intercompany interest is no longer earned and will not be earned in
future periods.
(g) Adjustment to reflect interest expense related to debt incurred as
part of the divestiture of Union Pacific Corporation.
(h) The pro forma earnings per share calculations above have been
presented assuming all basic and diluted shares were outstanding as
of January 1, 2003.
OVERNITE CORPORATION
PRO FORMA CONSOLIDATED CONDENSED STATEMENT OF INCOME
(Unaudited)
(Thousands of Dollars)
For the year ended
December 31, 2003
Pro Forma
Adjustments
Actual (a) Pro Forma
Operating Revenue $1,475,463 $ - $1,475,463
Operating Expenses:
Salaries, wages and employee
benefits 884,053 (13,249)(b) 870,804
Supplies and expenses 124,887 124,887
Operating taxes 52,738 52,738
Claims and insurance 54,706 2,072(c) 56,778
Rents and purchased
transportation 157,513 157,513
Communication and utilities 20,937 20,937
Depreciation 57,169 420(d) 57,589
Other 56,108 2,698(e) 58,806
Total operating expenses 1,408,111 (8,059) 1,400,052
Operating Income 67,352 8,059 75,411
Other Income and Expense:
Interest income from Union
Pacific Corporation 12,411 (12,411)(f) -
Interest expense 2,077 4,058(g) 6,135
Other income 467 467
Income before Income Taxes 78,153 (8,410) 69,743
Income tax expense 31,294 (3,368) 27,926
Net Income $46,859 $(5,042) $41,817
Operating Ratio 95.4% 94.9%
Net income per share:
Basic $1.70 $1.50(h)
Diluted $1.70 $1.50(h)
Weighted average number of
shares outstanding(h):
Basic 27,540,715 27,788,557
Diluted 27,548,086 27,959,310
Notes:
(a) Overnite Corporation became a stand-alone company on November 5,
2003. Pro forma adjustments are included and calculated to provide
information as if Overnite Corporation had been a stand-alone company
for the entire year of 2003.
(b) Adjustment reflects incremental salaries, wages and benefits less
accelerated vesting of Union Pacific Corporation benefits related to
the divestiture of Union Pacific Corporation.
(c) Adjustment to reflect incremental costs for directors and officers
and various other insurance coverages.
(d) Adjustment to reflect incremental depreciation.
(e) Adjustment to reflect incremental legal fees and other professional
fees.
(f) Intercompany interest from Union Pacific Corporation was earned on a
monthly basis in periods prior to November 5, 2003. This
intercompany interest is no longer earned and will not be earned in
future periods.
(g) Adjustment to reflect interest expense related to debt incurred as
part of the divestiture of Union Pacific Corporation.
(h) The pro forma earnings per share calculations above have been
presented assuming all basic and diluted shares were outstanding as
of January 1, 2003.
SOURCE Overnite Corporation
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Related links:
http://www.overnite.com
CONTACT:
Ira Rosenfeld, Director, of Overnite
Corporation Corporate Communications, +1-804-291-5362, or
Irosenfeld@overnite.com
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