Tennessee | 62-0935669 | |
(State or other jurisdiction of incorporation) | (I.R.S. employer identification no.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02. | Results of Operations and Financial Condition |
ITEM 9.01. | Financial Statements and Exhibits |
99.1 | Press Release of Pacer International, Inc. dated February 7, 2013 (furnished pursuant to Item 2.02). |
PACER INTERNATIONAL, INC. A Tennessee Corporation | ||||||
Dated: February 7, 2013 | By: | /s/ John J. Hafferty | ||||
Executive Vice President and Chief | ||||||
Financial Officer |
EXHIBIT NUMBER | ||
99.1 | Press Release of Pacer International, Inc. February 7, 2013 (furnished pursuant to Item 2.02). |
• | Income from operations increased 9.0%, excluding the impact of realignment expense of $0.8 million and $0.3 million in 2012 and 2011, respectively. Intermodal income from operations increased $2.3 million and logistics income from operations decreased $1.4 million; |
• | Earnings per share improved by $0.03 to $0.06 in 2012. Excluding the effect of the 2012 realignment expense of $0.02 per share, earnings per share was $0.08 in 2012; |
• | Intermodal revenues improved by $7.2 million or 2.5% while logistics revenues declined by 16.1% to $57.3 million. Total revenues decreased by 1.7% to $351.9 million; |
• | Intermodal gross margin improved by $2.7 million and logistics gross margin declined by $2.5 million. Total gross margin percentage increased by 20 basis points; |
• | Net income increased $1.1 million to $2.2 million; |
• | Cash provided by operating activities increased by $2.9 million or 40.8%, from $7.1 million in the fourth quarter of 2011 to $10.0 million in the fourth quarter of 2012. |
2012 | 2011 | |||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q4 | ||||||||||||||||
Revenue | $ | 345.9 | $ | 368.3 | $ | 348.9 | $ | 351.9 | $ | 358.0 | ||||||||||
Gross margin | $ | 31.9 | $ | 32.4 | $ | 31.7 | $ | 35.9 | $ | 35.7 | ||||||||||
Gross margin % | 9.2 | % | 8.8 | % | 9.1 | % | 10.2 | % | 10.0 | % | ||||||||||
SG&A | $ | 31.9 | $ | 29.9 | $ | 29.6 | $ | 32.0 | $ | 31.5 | ||||||||||
Income from operations | — | 2.5 | 2.3 | 4.1 | 4.2 | |||||||||||||||
Net income (loss) | (0.3 | ) | 1.3 | 1.1 | 2.2 | 1.1 | ||||||||||||||
Earnings (loss) per share | $ | (0.01 | ) | $ | 0.04 | $ | 0.03 | $ | 0.06 | $ | 0.03 |
• | Income from operations decreased $18.1 million. Income from operations in the intermodal segment, excluding from 2011 results the gain on sale of railcar assets of $4.7 million and the $7.3 million impact of the previously announced reduction in volume from an ocean carrier customer, increased year over year by $1.8 million. Total intermodal income from operations decreased $10.2 million and logistics income from operations decreased $8.2 million; |
• | Earnings per share decreased from $0.40 in the 2011 period to $0.12 in the 2012 period; |
• | Selling, general and administrative expenses decreased by $8.4 million year over year; |
• | Intermodal revenues improved by $4.3 million or 0.4%. Excluding the impact from the reduction in volume from an ocean carrier customer of $76.5 million in 2011, intermodal revenues increased by 7.4% to $1,179.6 million. Logistics revenues declined by 21.5% to $238.3 million. Overall, revenues decreased by 4.3% to $1,415.0 million; |
• | Intermodal gross margin declined by $10.4 million. Excluding the impact from the reduction in volume from the ocean carrier customer, intermodal gross margin decreased by $3.1 million. Logistics gross margin declined by $11.7 million; |
• | Net income decreased $9.6 million to $4.3 million. |
2012 | 2011 | |||||||
Revenue | $ | 1,415.0 | $ | 1,478.5 | ||||
Gross margin | $ | 131.9 | $ | 154.0 | ||||
Gross margin % | 9.3 | % | 10.4 | % | ||||
SG&A | $ | 123.4 | $ | 131.8 | ||||
Income from operations | 8.9 | 27.0 | ||||||
Net income | 4.3 | 13.9 | ||||||
Earnings per share | $ | 0.12 | $ | 0.40 |
December 31, 2012 | December 31, 2011 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 20.2 | $ | 24.0 | ||||
Accounts receivable, net | 132.7 | 133.5 | ||||||
Prepaid expenses and other | 9.4 | 12.3 | ||||||
Deferred income taxes | 2.4 | 4.0 | ||||||
Total current assets | 164.7 | 173.8 | ||||||
Property and equipment | ||||||||
Property and equipment, cost | 108.8 | 99.8 | ||||||
Accumulated depreciation | (62.0 | ) | (56.1 | ) | ||||
Property and equipment, net | 46.8 | 43.7 | ||||||
Other assets | ||||||||
Deferred income taxes | 12.6 | 14.1 | ||||||
Other assets | 9.9 | 11.7 | ||||||
Total other assets | 22.5 | 25.8 | ||||||
Total assets | $ | 234.0 | $ | 243.3 | ||||
Liabilities & Equity | ||||||||
Current liabilities | ||||||||
Accounts payable and other accrued liabilities | $ | 112.5 | $ | 127.1 | ||||
Long-term liabilities | ||||||||
Other | 1.3 | 0.9 | ||||||
Total liabilities | 113.8 | 128.0 | ||||||
Stockholders’ equity | ||||||||
Common stock | 0.4 | 0.4 | ||||||
Additional paid-in capital | 305.7 | 304.7 | ||||||
Accumulated deficit | (185.9 | ) | (190.2 | ) | ||||
Accumulated other comprehensive income | — | 0.4 | ||||||
Total stockholders’ equity | 120.2 | 115.3 | ||||||
Total liabilities and stockholders’ equity | $ | 234.0 | $ | 243.3 |
Three Months Ended | Year Ended | |||||||||||||||
December 31, 2012 | December 31, 2011 | December 31, 2012 | December 31, 2011 | |||||||||||||
Revenues | $ | 351.9 | $ | 358.0 | $ | 1,415.0 | $ | 1,478.5 | ||||||||
Operating expenses: | ||||||||||||||||
Cost of purchased transportation and services | 290.8 | 296.6 | 1,181.5 | 1,218.7 | ||||||||||||
Direct operating expenses | 25.2 | 25.7 | 101.6 | 105.8 | ||||||||||||
Selling, general and administrative expenses | 32.0 | 31.5 | 123.4 | 131.8 | ||||||||||||
Other income | (0.2 | ) | — | (0.4 | ) | (4.8 | ) | |||||||||
Total operating expenses | 347.8 | 353.8 | 1,406.1 | 1,451.5 | ||||||||||||
Income from operations | 4.1 | 4.2 | 8.9 | 27.0 | ||||||||||||
Interest expense | (0.3 | ) | (0.5 | ) | (1.4 | ) | (2.3 | ) | ||||||||
Income before income taxes | 3.8 | 3.7 | 7.5 | 24.7 | ||||||||||||
Income tax expense | (1.6 | ) | (2.6 | ) | (3.2 | ) | (10.8 | ) | ||||||||
Net income | $ | 2.2 | $ | 1.1 | $ | 4.3 | $ | 13.9 | ||||||||
Earnings per share: | ||||||||||||||||
Basic: | ||||||||||||||||
Earnings per share | $ | 0.06 | $ | 0.03 | $ | 0.12 | $ | 0.40 | ||||||||
Weighted average shares outstanding | 35,085,571 | 34,978,646 | 35,069,099 | 34,959,819 | ||||||||||||
Diluted: | ||||||||||||||||
Earnings per share | $ | 0.06 | $ | 0.03 | $ | 0.12 | $ | 0.40 | ||||||||
Weighted average shares outstanding | 35,406,118 | 35,194,541 | 35,338,338 | 35,066,417 |
Year Ended | ||||||||
December 31, 2012 | December 31, 2011 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | 4.3 | $ | 13.9 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 7.9 | 7.2 | ||||||
Gain on sale of property and equipment | — | (0.1 | ) | |||||
Gain on sale of railcar assets | — | (4.7 | ) | |||||
Amortization of deferred gain on sale lease-back transactions | (0.8 | ) | (0.7 | ) | ||||
Deferred taxes | 2.5 | 12.4 | ||||||
Stock based compensation expense | 1.8 | 2.4 | ||||||
Change in operating assets and liabilities | ||||||||
Accounts receivable, net | 0.8 | 19.0 | ||||||
Prepaid expenses and other | 2.9 | 3.1 | ||||||
Accounts payable and other accrued liabilities | (14.4 | ) | (20.7 | ) | ||||
Other assets | 2.0 | 1.8 | ||||||
Other liabilities | (0.9 | ) | (0.2 | ) | ||||
Net cash provided by operating activities | 6.1 | 33.4 | ||||||
Cash flows used in investing activities | ||||||||
Capital expenditures | (11.4 | ) | (8.0 | ) | ||||
Purchase of railcar assets | (28.4 | ) | (22.1 | ) | ||||
Net proceeds from sale of railcar assets | — | 28.9 | ||||||
Net proceeds from sale lease-back transaction | 30.2 | — | ||||||
Proceeds from sales of property and equipment | 0.1 | 1.1 | ||||||
Net cash used in investing activities | (9.5 | ) | (0.1 | ) | ||||
Cash flows used in financing activities | ||||||||
Net repayments under revolving line of credit agreement | — | (13.4 | ) | |||||
Debt issuance costs paid to third parties | (0.2 | ) | — | |||||
Repurchase and retirement of Pacer common stock | (0.1 | ) | (0.1 | ) | ||||
Withholding tax paid upon vesting of restricted and performance stock units | (0.1 | ) | — | |||||
Net cash used in financing activities | (0.4 | ) | (13.5 | ) | ||||
Net increase (decrease) in cash and cash equivalents | (3.8 | ) | 19.8 | |||||
Cash and cash equivalents at beginning of year | 24.0 | 4.2 | ||||||
Cash and cash equivalents at end of year | $ | 20.2 | $ | 24.0 | ||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||
2012 | 2011 | Change | % Change | 2012 | 2011 | Change | % Change | |||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||
Intermodal | $ | 296.9 | $ | 289.7 | $ | 7.2 | 2.5 | % | $ | 1,179.6 | $ | 1,175.3 | $ | 4.3 | 0.4 | % | ||||||||||||||
Logistics | 57.3 | 68.3 | (11.0 | ) | (16.1 | ) | 238.3 | 303.5 | (65.2 | ) | (21.5 | ) | ||||||||||||||||||
Inter-segment eliminations | (2.3 | ) | — | (2.3 | ) | N/M | (2.9 | ) | (0.3 | ) | (2.6 | ) | N/M | |||||||||||||||||
Total | 351.9 | 358.0 | (6.1 | ) | (1.7 | ) | 1,415.0 | 1,478.5 | (63.5 | ) | (4.3 | ) | ||||||||||||||||||
Cost of purchased transportation and services and direct operating expense 1/ | ||||||||||||||||||||||||||||||
Intermodal | 268.1 | 263.6 | 4.5 | 1.7 | 1,077.2 | 1,062.5 | 14.7 | 1.4 | ||||||||||||||||||||||
Logistics | 50.2 | 58.7 | (8.5 | ) | (14.5 | ) | 208.8 | 262.3 | (53.5 | ) | (20.4 | ) | ||||||||||||||||||
Inter-segment eliminations | (2.3 | ) | — | (2.3 | ) | N/M | (2.9 | ) | (0.3 | ) | (2.6 | ) | N/M | |||||||||||||||||
Total | 316.0 | 322.3 | (6.3 | ) | (2.0 | ) | 1,283.1 | 1,324.5 | (41.4 | ) | (3.1 | ) | ||||||||||||||||||
Gross margin | ||||||||||||||||||||||||||||||
Intermodal | 28.8 | 26.1 | 2.7 | 10.3 | 102.4 | 112.8 | (10.4 | ) | (9.2 | ) | ||||||||||||||||||||
Logistics | 7.1 | 9.6 | (2.5 | ) | (26.0 | ) | 29.5 | 41.2 | (11.7 | ) | (28.4 | ) | ||||||||||||||||||
Total | $ | 35.9 | $ | 35.7 | $ | 0.2 | 0.6 | $ | 131.9 | $ | 154.0 | $ | (22.1 | ) | (14.4 | ) | ||||||||||||||
Gross margin percentage | ||||||||||||||||||||||||||||||
Intermodal | 9.7 | % | 9.0 | % | 0.7 | % | 8.7 | % | 9.6 | % | (0.9 | )% | ||||||||||||||||||
Logistics | 12.4 | 14.1 | (1.7 | ) | 12.4 | 13.6 | (1.2 | ) | ||||||||||||||||||||||
Total | 10.2 | % | 10.0 | % | 0.2 | % | 9.3 | % | 10.4 | % | (1.1 | )% | ||||||||||||||||||
Income from operations | ||||||||||||||||||||||||||||||
Intermodal | $ | 12.1 | $ | 9.8 | $ | 2.3 | 23.5 | $ | 38.4 | $ | 48.6 | $ | (10.2 | ) | (21.0 | ) | ||||||||||||||
Logistics | (2.4 | ) | (1.0 | ) | (1.4 | ) | (140.0 | ) | (10.4 | ) | (2.2 | ) | (8.2 | ) | (372.7 | ) | ||||||||||||||
Corporate | (5.6 | ) | (4.6 | ) | (1.0 | ) | (21.7 | ) | (19.1 | ) | (19.4 | ) | 0.3 | 1.5 | ||||||||||||||||
Total | $ | 4.1 | $ | 4.2 | $ | (0.1 | ) | (2.4 | )% | $ | 8.9 | $ | 27.0 | $ | (18.1 | ) | (67.0 | )% |
1/ | Direct operating expenses are only incurred in the intermodal segment |
Year Ended December 31, 2012 | Year Ended December 31, 2011 | Adjusted Variance 2012 vs 2011 | % Adjusted Variance 2012 vs 2011 | |||||||||||||||||||||
GAAP Results | GAAP Results | Adjustments | Adjusted Results | |||||||||||||||||||||
Intermodal | ||||||||||||||||||||||||
Revenues | $ | 1,179.6 | $ | 1,175.3 | $ | (76.5 | ) | 1/ | $ | 1,098.8 | $ | 80.8 | 7.4 | % | ||||||||||
Gross margin | 102.4 | 112.8 | (7.3 | ) | 1/ | 105.5 | (3.1 | ) | (2.9 | )% | ||||||||||||||
Income from operations | $ | 38.4 | $ | 48.6 | $ | (12.0 | ) | 2/ | $ | 36.6 | $ | 1.8 | 4.9 | % |
1/ | Adjustment to reflect impact of the previously announced reduction in volume from ocean carrier customer that transitioned its western U.S. intermodal business directly to the railroad. Purchased transportation and direct operating expenses were adjusted to the average intermodal margin percentage for the 2011 period. |
2/ | Adjustment to reflect impact of the previously announced reduction in volume from ocean carrier customer that transitioned its western U.S. intermodal business directly to the railroad. Purchased transportation and direct operating expenses were adjusted to the average intermodal margin percentage for the 2011 period. Also includes an adjustment to eliminate the gain on sale of railcar assets of $4.7 million which occurred in the third quarter of 2011. |
Three Months Ended December 31, 2012 | Three Months Ended December 31, 2011 | ||||||||||||||||||||||||||
GAAP Results | Adjustments | Adjusted Results | GAAP Results | Adjustments | Adjusted Results | ||||||||||||||||||||||
Income from operations - Total | $ | 4.1 | $ | 0.8 | 1/ | $ | 4.9 | $ | 4.2 | $ | 0.3 | 3/ | $ | 4.5 | |||||||||||||
Earnings per share - Basic | 0.06 | 0.02 | 2/ | 0.08 | 0.03 | 0.04 | 4/ | 0.07 | |||||||||||||||||||
Earnings per share - Diluted | $ | 0.06 | $ | 0.02 | 2/ | $ | 0.08 | $ | 0.03 | $ | 0.04 | 4/ | $ | 0.07 |
1/ | Adjustment reflects the elimination of realignment expense for 2012. |
2/ | Adjustment reflects the elimination of realignment expense for 2012, net of tax |
3/ | Adjustment reflects the elimination of realignment expense for 2011. |
4/ | Adjustment reflects the elimination of realignment expense for 2011, net of tax and the elimination of the deferred tax asset adjustment during the fourth quarter of 2011. |
Three Months Ended December 31, 2011 | |||||||||||
As Originally Reported | Reclassification Amount 1/ | As Reclassified | |||||||||
Cost of purchased transportation and services | $ | 293.9 | $ | 2.7 | $ | 296.6 | |||||
Direct operating expenses | 23.1 | 2.6 | 25.7 | ||||||||
Selling, general and administrative expenses | 35.0 | (3.5 | ) | 31.5 | |||||||
Depreciation and amortization | $ | 1.8 | $ | (1.8 | ) | $ | — | ||||
Year Ended December 31, 2011 | |||||||||||
As Originally Reported | Reclassification Amount 1/ | As Reclassified | |||||||||
Cost of purchased transportation and services | $ | 1,208.4 | $ | 10.3 | $ | 1,218.7 | |||||
Direct operating expenses | 94.7 | 11.1 | 105.8 | ||||||||
Selling, general and administrative expenses | 146.0 | (14.2 | ) | 131.8 | |||||||
Depreciation and amortization | $ | 7.2 | $ | (7.2 | ) | $ | — | ||||
Three Months Ended December 31, 2011 | |||||||||||
As Originally Reported | Reclassification Amount 1/ | As Reclassified | |||||||||
Gross margin | |||||||||||
Intermodal | $ | 28.7 | $ | (2.6 | ) | $ | 26.1 | ||||
Logistics | 12.3 | (2.7 | ) | 9.6 | |||||||
Total | $ | 41.0 | $ | (5.3 | ) | $ | 35.7 | ||||
Gross margin percentage | |||||||||||
Intermodal | 9.9 | % | 9.0 | % | |||||||
Logistics | 18.0 | 14.1 | |||||||||
Total | 11.5 | % | 10.0 | % | |||||||
Year Ended December 31, 2011 | |||||||||||
As Originally Reported | Reclassification Amount 1/ | As Reclassified | |||||||||
Gross margin | |||||||||||
Intermodal | $ | 123.9 | $ | (11.1 | ) | $ | 112.8 | ||||
Logistics | 51.5 | (10.3 | ) | 41.2 | |||||||
Total | $ | 175.4 | $ | (21.4 | ) | $ | 154.0 | ||||
Gross margin percentage | |||||||||||
Intermodal | 10.5 | % | 9.6 | % | |||||||
Logistics | 17.0 | 13.6 | |||||||||
Total | 11.9 | % | 10.4 | % |
1/ | Certain reclassifications have been made to the 2011 operating expenses in order to conform to the 2012 presentation. The reclassifications had no impact on previously reported income. Specifically, Pacer reclassified certain expenses from selling, general and administrative to costs of purchased transportation and services and direct operating expenses. Pacer also reclassified depreciation and amortization as direct operating expenses and selling, general and administrative expenses. |
Three Months Ended | |||||||||||||||||||||||||||||||
March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | ||||||||||||||||||||||||
RECLASSIFIED AMOUNTS 1/ | |||||||||||||||||||||||||||||||
Intermodal | |||||||||||||||||||||||||||||||
Cost of purchased transportation and services | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Direct operating expenses | 2.8 | 2.7 | 3.0 | 2.6 | 2.7 | 2.8 | 2.7 | 2.7 | |||||||||||||||||||||||
Selling, general and administrative expenses | (1.7 | ) | (1.4 | ) | (1.8 | ) | (1.4 | ) | (1.5 | ) | (1.5 | ) | (1.2 | ) | (1.2 | ) | |||||||||||||||
Depreciation and amortization | (1.1 | ) | (1.3 | ) | (1.2 | ) | (1.2 | ) | (1.2 | ) | (1.3 | ) | (1.5 | ) | (1.5 | ) | |||||||||||||||
Logistics | |||||||||||||||||||||||||||||||
Cost of purchased transportation and services | 2.5 | 2.5 | 2.6 | 2.7 | 3.2 | 3.4 | 3.5 | 3.7 | |||||||||||||||||||||||
Direct operating expenses | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Selling, general and administrative expenses | (2.0 | ) | (2.1 | ) | (2.1 | ) | (2.2 | ) | (2.8 | ) | (3.0 | ) | (3.1 | ) | (3.3 | ) | |||||||||||||||
Depreciation and amortization | $ | (0.5 | ) | $ | (0.4 | ) | $ | (0.5 | ) | $ | (0.5 | ) | $ | (0.4 | ) | $ | (0.4 | ) | $ | (0.4 | ) | $ | (0.4 | ) | |||||||
AS RECLASSIFIED 1/ | |||||||||||||||||||||||||||||||
Intermodal | |||||||||||||||||||||||||||||||
Cost of purchased transportation and services | $ | 226.8 | $ | 246.1 | $ | 245.9 | $ | 237.9 | $ | 235.8 | $ | 256.5 | $ | 240.4 | $ | 242.9 | |||||||||||||||
Direct operating expenses | 26.8 | 27.2 | 26.1 | 25.7 | 25.0 | 25.4 | 26.0 | 25.2 | |||||||||||||||||||||||
Selling, general and administrative expenses | 17.5 | 17.4 | 17.8 | 16.3 | 15.9 | 15.5 | 15.9 | 16.7 | |||||||||||||||||||||||
Depreciation and amortization | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Gross Margin | $ | 25.9 | $ | 30.6 | $ | 30.2 | $ | 26.1 | $ | 24.1 | $ | 24.9 | $ | 24.6 | $ | 28.8 | |||||||||||||||
Gross Margin Percentage | 9.3 | % | 10.1 | % | 10.0 | % | 9.0 | % | 8.5 | % | 8.1 | % | 8.5 | % | 9.7 | % | |||||||||||||||
Logistics | |||||||||||||||||||||||||||||||
Cost of purchased transportation and services | $ | 68.1 | $ | 72.0 | $ | 63.5 | $ | 58.7 | $ | 53.3 | $ | 54.3 | $ | 51.0 | $ | 50.2 | |||||||||||||||
Direct operating expenses | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Selling, general and administrative expenses | 11.1 | 10.7 | 11.0 | 10.6 | 11.0 | 10.0 | 9.4 | 9.7 | |||||||||||||||||||||||
Depreciation and amortization | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Gross Margin | $ | 10.9 | $ | 10.5 | $ | 10.2 | $ | 9.6 | $ | 7.8 | $ | 7.5 | $ | 7.1 | $ | 7.1 | |||||||||||||||
Gross Margin Percentage | 13.8 | % | 12.7 | % | 13.8 | % | 14.1 | % | 12.8 | % | 12.1 | % | 12.2 | % | 12.4 | % | |||||||||||||||
Consolidated | |||||||||||||||||||||||||||||||
Cost of purchased transportation and services | $ | 294.8 | $ | 318.0 | $ | 309.3 | $ | 296.6 | $ | 289.0 | $ | 310.5 | $ | 291.2 | $ | 290.8 | |||||||||||||||
Direct operating expenses | 26.8 | 27.2 | 26.1 | 25.7 | 25.0 | 25.4 | 26.0 | 25.2 | |||||||||||||||||||||||
Selling, general and administrative expenses | 32.9 | 33.6 | 33.8 | 31.5 | 31.9 | 29.9 | 29.6 | 32.0 | |||||||||||||||||||||||
Depreciation and amortization | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Gross Margin | $ | 36.8 | $ | 41.1 | $ | 40.4 | $ | 35.7 | $ | 31.9 | $ | 32.4 | $ | 31.7 | $ | 35.9 | |||||||||||||||
Gross Margin Percentage | 10.3 | % | 10.6 | % | 10.8 | % | 10.0 | % | 9.2 | % | 8.8 | % | 9.1 | % | 10.2 | % |
1/ | Certain reclassifications have been made to the 2011 and 2012 quarterly operating expenses in order to conform to the 2012 presentation. The reclassifications had no impact on previously reported income. Specifically, Pacer reclassified certain expenses from selling, general and administrative to costs of purchased transportation and services and direct operating expenses. Pacer also reclassified depreciation and amortization as direct operating expenses and selling, general and administrative expenses. |