MINNEAPOLIS, Feb. 7 - Transport Corporation of America, Inc. (Nasdaq: TCAM), today announced revenues for the fourth quarter 2005 of $65.8 million, compared with 2004 fourth quarter revenues of $65.3 million. Excluding fuel surcharges, revenues decreased to $56.1 million from $58.6 million.
Fourth quarter 2005's net loss was $445,000, or $0.07 per share, compared with fourth quarter 2004 net income of $1.1 million, or $0.17 per diluted share. Results in the fourth quarter 2005 include one-time expenses related to the previously announced proposed merger with Goldner Hawn Johnson & Morrison Incorporated of $800,000 after taxes, or $0.12 per share.
Full Year Results
For the year ended December 31, 2005, Transport America announced revenues of $254.4 million, compared with 2004 revenues of $258.4 million. Excluding fuel surcharges, revenues decreased to $222.4 million from $239.9 million.
Net income for the year was $596,000, or $0.09 per diluted share, compared with a 2004 net income of $2.0 million, or $0.30 per diluted share. Results in 2005 include one-time expenses related to the pending merger of $979,000 after taxes, or $0.15 per diluted share, and a gain of $182,000 after taxes, or $0.03 per diluted share, relating to the sale of its Garland, Texas maintenance facility.
Proposed Merger
On October 27, 2005, the Company announced that it had signed a definitive merger agreement to be acquired by an affiliate of Minneapolis-based private equity investment firm, Goldner Hawn Johnson & Morrison Incorporated. On January 27, 2006, the Special Committee of the Board of Directors of Transport America issued notice of a special meeting of shareholders to be held on Tuesday, February 28, 2006; the purpose of which is to vote upon a proposal to approve the Agreement and Plan of Merger providing for the acquisition of Transport America by Patriot Holding Corp., a Minnesota Corporation controlled by Goldner Hawn Johnson & Morrison Incorporated. In light of these developments, the Company has determined to forego its normal quarterly conference call.
About Transport America
Transport Corporation of America, Inc., based in the Minneapolis - St. Paul metropolitan area, provides a wide range of truckload freight carriage and logistics services to customers in the United States, Mexico, and Canada. Transport America focuses on providing time-definite and other responsive services through its team of dedicated and committed employees supported by state-of-the-art technology and information systems.
This news release contains forward-looking statements regarding the Company. The Company wishes to caution readers not to place undue reliance on any forward-looking statements which speak only as of the date made. The following important factors, among other things, in some cases have affected and in the future could affect the Company's actual results and could cause the Company's actual financial performance to differ materially from that expressed in any forward-looking statement: (1) Transport America may not be able to complete the proposed merger on the terms described above or other acceptable terms or at all because of a number of factors, including the failure to obtain shareholder approval, the failure of financing or the failure to satisfy the other closing conditions, (2) the highly competitive conditions that currently exist in the Company's market and the Company's ability to compete, (3) the Company's ability to recruit, train, and retain qualified drivers, (4) increases in fuel prices, and the Company's ability to recover these costs from its customers, (5) the impact of environmental standards and regulations on new revenue equipment, (6) changes in governmental regulations applicable to the Company's operations, (7) adverse weather conditions, (8) accidents, (9) the financing and resale market for used revenue equipment, (10) changes in interest rates, (11) cost of liability insurance coverage, and (12) downturns in general economic conditions affecting the Company and its customers. The foregoing list should not be construed as exhaustive and the Company disclaims any obligation subsequently to revise or update any previously made forward-looking statements. Unanticipated events are likely to occur.
TRANSPORT CORPORATION OF AMERICA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three and Twelve Months ended December 31, 2005 and 2004
(In thousands, except share and per share amounts)
Three Months Year To Date
(Unaudited) (Unaudited)
2005 2004 2005 2004
Amount % Amount % Amount % Amount %
Operating
revenues $65,774 100.0 $65,303 100.0 $254,395 100.0 $258,408 100.0
Operating
expenses:
Salaries,
wages, and
benefits 19,948 30.3 18,764 28.7 77,924 30.6 76,129 29.5
Fuel,
maintenance,
and other
expense 14,584 22.2 11,904 18.2 51,009 20.1 42,909 16.6
Purchased
transport-
ation 17,617 26.8 18,822 28.8 72,007 28.3 79,144 30.6
Revenue
equipment
leases 373 0.6 374 0.6 1,568 0.6 1,266 0.5
Depreciation
and
amortiz-
ation 5,743 8.7 6,064 9.3 22,548 8.9 23,757 9.2
Insurance,
claims, and
damage 2,352 3.6 2,672 4.1 8,585 3.4 12,496 4.8
Taxes and
licenses 1,074 1.6 1,213 1.9 4,431 1.7 4,604 1.8
Communication 307 0.5 449 0.7 1,513 0.6 1,788 0.7
Other
general and
administra-
tive
expenses 2,424 3.7 2,409 3.7 9,913 3.9 9,634 3.7
Merger /
Acquisition
Expenses 813 1.2 0 0.0 1,104 0.4 0 0.0
Impairment of
sublease
office space 0 0.0 0 0.0 0 0.0 190 0.1
Loss (Gain) on
disposition of
property and
equipment (33) (0.1) 47 0.1 (365) (0.1) 25 0.0
Total
operating
expenses 65,202 99.1 62,718 96.0 250,237 98.4 251,942 97.5
Operating
income 572 0.9 2,585 4.0 4,158 1.6 6,466 2.5
Interest expense,
net 669 1.0 708 1.1 2,597 1.0 3,115 1.2
Earnings
before
income
taxes (97) (0.1) 1,877 2.9 1,561 0.6 3,351 1.3
Income tax
provision 348 0.5 741 1.1 965 0.4 1,314 0.5
Net earnings
(loss) $(445) (0.7) $1,136 1.7 $596 0.2 $2,037 0.8
Earnings (loss)
per common
share
- basic $(0.07) $0.17 $0.09 $0.30
Earnings (loss)
per common
share
- diluted $(0.07) $0.17 $0.09 $0.30
Average common
shares
outstanding
Basic 6,567,826 6,525,692 6,557,591 6,722,157
Diluted 6,567,826 6,665,496 6,694,228 6,841,195
TRANSPORT CORPORATION OF AMERICA, INC.
BALANCE SHEET
December 31, 2005 and 2004
(In Thousands)
Unaudited
ASSETS
2005 2004
Current Assets:
Cash and cash equivalents $7,461 $3,714
Trade receivables, net of allowances 24,607 24,610
Other receivables 2,473 1,170
Operating supplies 864 800
Deferred income taxes 4,684 6,316
Prepaid expenses 4,523 2,626
Total Current Assets 44,612 39,236
Revenue Equipment, At Cost 172,488 180,827
Less: accumulated depreciation (68,080) (80,077)
Revenue Equipment, Net 104,408 100,750
Property and Other Equipment:
Land, buildings, and improvements 15,195 16,516
Other equipment and leasehold
improvements 19,177 21,219
Less: accumulated depreciation (18,168) (18,699)
Property and Other Equipment, Net 16,204 19,036
Revenue, Property and Other
Equipment, Net 120,612 119,786
Other Assets, Net 1,573 2,056
Total Assets $166,797 $161,078
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current maturities of Long Term Debt $11,171 $7,965
Current maturities of Capital Lease
Obligations 2,823 9,990
Accounts payable 3,974 5,026
Checks issued in excess of cash
balances 2,398 1,871
Due to independent contractors 912 1,157
Accrued expenses 21,130 21,132
Total Current Liabilities 42,408 47,141
Long-Term Debt & Capital Lease
Obligations
Long-term debt less current maturities 41,892 28,336
Capital lease obligations less
current maturities - 2,826
Total Long-Term Debt
& Capital Lease Obligations 41,892 31,162
Deferred Income Taxes 25,331 26,504
Shareholders' Equity:
Common stock 66 65
Additional paid-in capital 25,726 25,428
Retained earnings 31,374 30,778
Total Shareholders' Equity 57,166 56,271
Total Liabilities and Equity $166,797 $161,078
TRANSPORT CORPORATION OF AMERICA, INC.
Selected Consolidated Financial and Operating Data
Three and Twelve Months Ended December 31, 2005 and 2004
Three Months Twelve Months
2005 2004 2005 2004
Operating Statistics
Company tractors, seated 903 860 903 860
Company tractors, other 130 159 130 159
Independent contractor 388 551 388 551
Total tractors (at end of
period) 1,421 1,570 1,421 1,570
Trailers (at end of period) 4,316 4,897 4,316 4,897
Average company tractors in
service 1,353 1,551 1,394 1,607
Total loaded miles (000's) 32,079 36,721 133,270 157,342
Total miles (000's) 35,931 41,441 149,560 176,722
Freight revenue per tractor per
week* $3,034 $2,924 $2,937 $2,880
Fuel surcharge per tractor per
week $577 $350 $453 $226
Operating revenue per tractor
per week $3,611 $3,274 $3,390 $3,106
Freight revenues per loaded
mile* $1.586 $1.532 $1.554 $1.494
Fuel surcharge per loaded mile $0.303 $0.183 $0.240 $0.118
Operating revenues per loaded
mile $1.889 $1.715 $1.794 $1.612
Freight revenues per mile* $1.416 $1.357 $1.385 $1.330
Fuel surcharge per mile $0.270 $0.162 $0.214 $0.105
Operating revenues per mile $1.686 $1.519 $1.599 $1.435
Average empty mile percentage 10.7% 11.4% 10.9% 11.0%
Average length of haul, all
miles 657 664 658 682
Average annual revenues per non-
driver employee (000's) $693 $659 $660 $642
Financial Data (000's)
Freight revenue (excluding fuel
surcharge) $50,880 $56,251 $207,137 $235,095
Fuel surcharge revenue 9,710 6,718 31,973 18,485
Operating revenue (including
fuel surcharge) $60,590 $62,969 $239,110 $253,580
Logistics and other revenue 5,185 2,334 15,285 4,828
Total revenue $65,775 $65,303 $254,395 $258,408
Capital expenditures, net of
proceeds $6,091 $5,377 $24,308 $19,027
Total debt and capital lease
obligations $55,886 $49,117 $55,886 $49,117
* Excluding fuel surcharge
