Delaware
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1-5046
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94-1444798
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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2211 Old Earhart Road, Ann Arbor, Michigan
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48105
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(Address of principal executive offices)
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(Zip code)
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Exhibit No.
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Description
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99.1
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Press Release, dated November 3, 2011.
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Exhibit No.
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Description
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99.1
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Press Release, dated November 3, 2011
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·
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Revenue of $843.3 million, a 5.8 percent increase over last year’s third-quarter revenue of $797.1 million. Improved yield, including higher fuel surcharge revenue, accounted for revenue growth.
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·
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Operating income of $40.7 million, an increase over the $13.1 million earned in the year-ago period. The quarter benefited from improved revenue and efficiency gains.
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·
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Revenue per hundredweight, or yield, increased 12.0 percent from the previous-year third quarter. Excluding the fuel surcharge, yield rose 6.7 percent.
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Tonnage per day declined 5.5 percent compared to the 2010 third quarter, reflecting the company’s focus on network efficiency.
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·
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Operating ratio was 95.2 in the 2011 third quarter compared to 98.4 in the previous-year period.
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·
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Revenue of $417.1 million, an increase of 12.7 percent from the prior year third-quarter revenue of $370.0 million. The quarter benefited from increased revenue in both transportation management and warehouse management services.
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Net revenue of $154.7 million, a 9.9 percent increase from $140.7 million in the previous year third quarter.
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·
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Operating income of $12.7 million, compared to an operating loss of $6.3 million in the third quarter of last year. Excluding a $16.4 million goodwill impairment charge, third-quarter operating income in 2010 was $10.1 million.
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·
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Revenue of $158.7 million, a 12.8 percent increase over last year’s third-quarter revenue of $140.7 million, reflecting the positive effects of higher fuel surcharges and improved revenue per loaded mile, which increased 4.6 percent from the previous-year third quarter (excluding fuel surcharges).
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·
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Operating income of $7.9 million, a 43.7 percent increase over operating income of $5.5 million in the previous-year period. The increase in third-quarter operating income resulted largely from improved pricing and operating efficiencies, partially offset by higher self-insurance expense.
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·
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Empty miles were 9.5 percent of total miles compared to 10.8 percent in the previous-year third quarter.
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Operating ratio exclusive of fuel surcharges was 93.6, compared to 95.3 in the third quarter of 2010.
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Consolidated Statements of Operating Results
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(Unaudited)
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(Dollars in thousands except per share amounts)
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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||||||||||||||||||
2011
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2010
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2011
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2010
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Revenue
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Freight
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$ | 843,300 | $ | 797,078 | $ | 2,450,870 | $ | 2,339,046 | |||||||||||
Logistics [a]
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417,142 | 370,049 | 1,181,129 | 1,111,007 | |||||||||||||||
Truckload
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158,705 | 140,655 | 459,371 | 426,725 | |||||||||||||||
Other
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12,160 | 10,416 | 36,454 | 36,274 | |||||||||||||||
Inter-segment Revenue Eliminations
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(54,228 | ) | (48,015 | ) | (156,569 | ) | (174,695 | ) | |||||||||||
$ | 1,377,079 | $ | 1,270,183 | $ | 3,971,255 | $ | 3,738,357 | ||||||||||||
Operating Income (Loss)
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Freight [b]
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$ | 40,721 | $ | 13,062 | $ | 100,220 | $ | 27,135 | |||||||||||
Logistics [c] [d]
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12,679 | (6,282 | ) | 33,420 | 19,582 | ||||||||||||||
Truckload
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7,867 | 5,475 | 25,273 | 13,582 | |||||||||||||||
Other
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(142 | ) | 246 | (927 | ) | 2,034 | |||||||||||||
61,125 | 12,501 | 157,986 | 62,333 | ||||||||||||||||
Other Expense, net
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13,519 | 14,034 | 43,575 | 46,469 | |||||||||||||||
Income (Loss) before Income Tax Provision
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47,606 | (1,533 | ) | 114,411 | 15,864 | ||||||||||||||
Income Tax Provision
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18,478 | 6,695 | 48,939 | 14,266 | |||||||||||||||
Net Income (Loss) Applicable to Common Shareholders
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$ | 29,128 | $ | (8,228 | ) | $ | 65,472 | $ | 1,598 | ||||||||||
Weighted-Average Common Shares Outstanding
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Basic
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55,535,074 | 54,286,677 | 55,331,170 | 51,780,610 | |||||||||||||||
Diluted
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56,117,334 | 54,286,677 | 56,054,059 | 52,410,846 | |||||||||||||||
Earnings (Loss) Per Common Share
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Basic
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$ | 0.52 | $ | (0.15 | ) | $ | 1.18 | $ | 0.03 | ||||||||||
Diluted
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$ | 0.52 | $ | (0.15 | ) | $ | 1.17 | $ | 0.03 | ||||||||||
[a] |
Logistics' net revenue
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Revenue
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$ | 417,142 | $ | 370,049 | $ | 1,181,129 | $ | 1,111,007 | |||||||||||
Purchased transportation expense
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(262,477 | ) | (229,320 | ) | (737,159 | ) | (683,232 | ) | |||||||||||
Net revenue
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$ | 154,665 | $ | 140,729 | $ | 443,970 | $ | 427,775 | |||||||||||
[b] |
Includes $4.4 million prior-year third quarter expense at Con-way Freight for executive severance and the consolidation of Con-way's executive offices. In connection with these events, $5.5 million of expenses were recognized by Con-way and allocated across all reporting segments, with the Freight segment incurring the predominant amount of the related expense.
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[c]
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Includes a $2.8 million prior-year first-quarter charge for the write-off of a customer-relationship intangible asset.
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[d] |
Includes a $16.4 million prior-year third-quarter goodwill-impairment charge.
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Con-way Inc.
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Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
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(Unaudited)
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(Dollars in thousands except per share amounts)
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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2011
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2010
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2011
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2010
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Net Income (Loss) Applicable to Common Shareholders
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$ | 29,128 | $ | (8,228 | ) | $ | 65,472 | $ | 1,598 | |||||||
Before-Tax Reconciling Items
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Goodwill impairment
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- | (16,414 | ) | - | (16,414 | ) | ||||||||||
Customer-relationship intangible-asset impairment
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- | - | - | (2,767 | ) | |||||||||||
Employee-separation costs
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- | (5,490 | ) | - | (5,490 | ) | ||||||||||
$ | - | $ | (21,904 | ) | $ | - | $ | (24,671 | ) | |||||||
Tax-Related Reconciling Items
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Tax effect of items above
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- | 2,141 | - | 2,833 | ||||||||||||
Changes in annual effective tax rate
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305 | 15 | 572 | 35 | ||||||||||||
Discrete tax adjustments
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(692 | ) | (356 | ) | (6,034 | ) | 663 | |||||||||
$ | (387 | ) | $ | 1,800 | $ | (5,462 | ) | $ | 3,531 | |||||||
Adjusted Non-GAAP Financial Measures:
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Net Income Available to Common Shareholders
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$ | 29,515 | $ | 11,876 | $ | 70,934 | $ | 22,738 | ||||||||
Earnings Per Diluted Common Share
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$ | 0.53 | $ | 0.22 | $ | 1.27 | $ | 0.43 | ||||||||
Diluted Common Shares Outstanding
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56,117,334 | 54,800,059 | 56,054,059 | 52,410,846 | ||||||||||||
Information About Non-GAAP Financial Measures:
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Con-way provides adjusted net income and earnings per share as additional information to investors. These measures are not in accordance with generally accepted accounting principles in the United States ("GAAP"). Con-way's non-GAAP financial measures are intended to supplement, but not substitute for, the most directly comparable GAAP measures. Con-way believes that the non-GAAP financial measures provide meaningful information to assist investors and analysts in understanding Con-way's financial results because they exclude items that may not be indicative or are unrelated to Con-way's core operating results. However, because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures across companies. Investors are strongly encouraged to review Con-way's financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
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Con-way Inc.
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Consolidated Condensed Balance Sheets
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(Dollars in thousands)
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September 30,
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December 31,
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|||||||
2011
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2010
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(Unaudited)
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ASSETS
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Current assets
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$ | 1,243,208 | $ | 1,120,077 | ||||
Property, plant and equipment, net
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1,435,528 | 1,404,585 | ||||||
Other assets
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416,896 | 419,070 | ||||||
Total Assets
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$ | 3,095,632 | $ | 2,943,732 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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Current liabilities
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$ | 731,813 | $ | 651,890 | ||||
Long-term debt and capital leases
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779,537 | 793,950 | ||||||
Other long-term liabilities and deferred credits
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686,010 | 678,360 | ||||||
Shareholders' equity
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898,272 | 819,532 | ||||||
Total Liabilities and Shareholders' Equity
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$ | 3,095,632 | $ | 2,943,732 | ||||