-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, n1GKAMrAgvmm3FVpMBfePbZADVa5RlX4R3A2M/BFHBrfI3I42Ln8LHmTfuaW2uMP EErCPLjlJuXbHY1PLNBWNg== 0000745379-95-000004.txt : 19950530 0000745379-95-000004.hdr.sgml : 19950530 ACCESSION NUMBER: 0000745379-95-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950510 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: KENAN TRANSPORT CO CENTRAL INDEX KEY: 0000745379 STANDARD INDUSTRIAL CLASSIFICATION: 4213 IRS NUMBER: 560516485 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-12058 FILM NUMBER: 95536176 BUSINESS ADDRESS: STREET 1: 143 W FRANKLIN ST STREET 2: UNIVERSITY SQ WEST POST OFFICE BOX 2729 CITY: CHAPEL HILL STATE: NC ZIP: 27516-3910 BUSINESS PHONE: 9199678221 MAIL ADDRESS: STREET 1: UNIVERSITY SQUARE WEST STREET 2: 143 W FRANKLIN ST P O BOX 2729 CITY: CHAPEL HILL STATE: NC ZIP: 27515-2729 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1995 --------------------------- OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-12058 ------- KENAN TRANSPORT COMPANY ------------------------------------------------------ (Exact name of registrant as specified in its charter) North Carolina 56-0516485 ------------------------------- --------------- (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) University Square - West, 143 W. Franklin Street Chapel Hill, North Carolina, 27516-3910 ----------------------------------------------------------- (Address of principal executive offices, including Zip Code) (919) 967-8221 ----------------------------------------------------------- (Registrant's telephone number, including Area Code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ------- ------- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at April 30, 1995 -------------------------- ----------------------------- Common stock, no par value 2,389,497 KENAN TRANSPORT COMPANY INDEX Page ---- Part I - Financial Information Consolidated Balance Sheets as of March 31, 1995 and December 31, 1994 1 Consolidated Statements of Income for the three months ended March 31, 1995 and 1994 2 Consolidated Statements of Cash Flows for the three months ended March 31, 1995 and 1994 3 Notes to Consolidated Financial Statements 4 Management's Discussion and Analysis of Financial Condition and Results of Operations 5 Part II - Other Information Item 6 - Exhibits and Reports on Form 8-K 6 Signatures 7 Index to Exhibits 8 PART I - FINANCIAL INFORMATION KENAN TRANSPORT COMPANY CONSOLIDATED BALANCE SHEETS (Dollars in thousands)
March 31, December 31, 1995 1994 ASSETS (Unaudited) (Note 1) - - ------------------------------------------------------------------------- Current Assets Cash and cash equivalents $15,993 $12,759 Short-term investments -- 1,000 Accounts receivable 3,497 4,249 Operating supplies and parts 598 574 Prepayments -- Tires 1,093 1,295 Insurance, licenses and other 1,028 602 Deferred income taxes 1,660 1,660 ------------------------ Total Current Assets 23,869 22,139 Operating Property Land 3,205 3,201 Buildings and leasehold improvements 4,981 4,972 Revenue equipment 47,571 47,434 Other equipment 3,732 3,667 ------------------------ 59,489 59,274 Accumulated depreciation (25,524) (24,259) ------------------------ Net Operating Property 33,965 35,015 Other Assets 475 471 ------------------------ $58,309 $57,625 ======================== LIABILITIES AND STOCKHOLDERS' EQUITY - - ------------------------------------------------------------------------- Current Liabilities Accounts payable $ 1,134 $ 1,257 Wages and employee benefits payable 3,834 4,603 Claims payable 3,785 3,866 Other accrued expenses 79 153 Income taxes payable 581 -- ------------------------ Total Current Liabilities 9,413 9,879 Deferred Income Taxes 8,052 7,975 Stockholders' Equity Common stock; no par; 20,000,000 shares authorized; 2,389,497 and 2,378,339 shares issued and outstanding 2,996 2,798 Retained earnings 37,848 36,973 ------------------------ 40,844 39,771 ------------------------ $58,309 $57,625 ======================== The Notes to Consolidated Financial Statements are an integral part of these balance sheets.
Page 1 KENAN TRANSPORT COMPANY CONSOLIDATED STATEMENTS OF INCOME For the Three Months Ended March 31, 1995 and 1994 (Unaudited and dollars in thousands except per share amounts)
1995 1994 - - ------------------------------------------------------------------------ Operating Revenue $15,397 $15,550 Operating Expenses Wages and employee benefits 7,916 7,838 Fuel, parts, tires and other 2,739 2,891 Taxes and licenses 987 1,039 Claims and insurance 522 529 Communications, utilities and rent 348 287 Depreciation 1,349 1,326 ------------------------ 13,861 13,910 ------------------------ Operating Income 1,536 1,640 Interest income and other expenses, net 171 75 ------------------------ Income before Provision for Income Taxes 1,707 1,715 Provision for income taxes 683 695 ------------------------ Net Income $ 1,024 $ 1,020 ======================== Weighted average number of shares outstanding (in thousands) 2,380 2,372 Earnings per share $ .43 $ .43 Operating ratio 90.0% 89.5% Dividends paid per share $ .0625 $ .0600 The Notes to Consolidated Financial Statements are an integral part of these statements.
Page 2 KENAN TRANSPORT COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 1995 and 1994 (Unaudited and dollars in thousands)
1995 1994 - - ------------------------------------------------------------------------ Cash Provided by (Applied to): Operations $ 2,682 $ 2,675 Purchases of operating property, net (299) (691) Short-term investments, net 1,000 (1,500) Dividends (149) (143) ------------------------ Net Increase in Cash and Cash Equivalents 3,234 341 Beginning Cash and Cash Equivalents 12,759 9,046 ------------------------ Ending Cash and Cash Equivalents $15,993 $ 9,387 ======================== The Notes to Consolidated Financial Statements are an integral part of these statements.
Page 3 KENAN TRANSPORT COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Basis of Presentation - - -------------------------- The financial information included herein is unaudited; however, such information reflects all adjustments (consisting solely of normal recurring adjustments) that are, in the opinion of management, necessary for a fair statement of results for the interim periods. The balance sheet at December 31, 1994 has been taken from the audited financial statements at that date. The results of operations for the three months ended March 31, 1995 and 1994 are not necessarily indicative of the results to be expected for the full year. Page 4 KENAN TRANSPORT COMPANY MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following is management's discussion and analysis of certain significant factors that have affected the Company's financial position andoperating results during the periods included in the accompanying financial statements. Results of Operations - - ------------------------------- Revenue for the first quarter of 1995 was $15,397,000, a decrease of $153,000 and 1% from the first quarter of 1994. Net income was $1,024,000 compared to $1,020,000 in 1994. Earnings per share were $.43 for both quarters. Warmer weather, compared to historical averages and the first quarter of 1994, affected demand for heating fuels and our revenue from transportation of those products. Miles operated decreased 1% to 10,334,000 in 1995 while average freight rates remained unchanged. Operating expenses for the first quarter of 1995 were $13,861,000 compared to $13,910,000 in 1994. Operating expenses decreased during the quarter as a result of effective cost control, operating efficiencies and lower demand. Our operating ratio for the quarter was 90.0% compared to 89.5% for 1994. The Company is pursuing expansion into new operating territories in the Southeast by taking advantage of the opportunities presented by Federal preemption of state regulation of trucking entry, rates and routes. Liquidity and Capital Resources - - ------------------------------- The Company's financial condition at March 31, 1995 was strong. Working capital was $14,456,000 compared to $12,499,000 at March 31, 1994 and the current ratios were 2.5 and 2.3, respectively. Cash and cash equivalents totaled $15,993,000 at March 31, 1995, and the Company had no debt outstanding under its $7,000,000 bank line of credit. Cash flows for the first three months of 1995 totaled $3,234,000 compared to $341,000 during the first quarter of 1994. The $2,893,000 increase in cash flows for the quarter is due largely to shifts in cash and investments from short-term investments to cash equivalent investments. Cash flows from operations for the first quarter of 1995 were $2,682,000 compared to $2,675,000 in 1994. The Company has second quarter cash commitments of approximately $4,000,000 for tractor and trailer replacements. It is expected that capital expenditure requirements will be met with internal cash resources. Page 5 PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K - - ------- -------------------------------- (a) The Exhibits to this Form 10-Q are listed on the accompanying Index to Exhibits. (b) No reports on Form 8-K have been filed during the quarter ended March 31, 1995. Page 6 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. KENAN TRANSPORT COMPANY (Registrant) DATE: May 10, 1995 BY:/s/ William L. Boone ---------------------------- Vice President-Finance and Chief Financial Officer Page 7 INDEX TO EXHIBITS The exhibits filed as part of this report are listed below: Exhibit Number Description --------- -------------------------------------------------------- 10(a) Supplemental Executive Retirement Plan, effective January 1, 1990, filed as Exhibit 10(e) to the Registrant's Form 10-K for the year ended December 31, 1990, which is incorporated herein by reference to such Form 10-K. 10(b) Employee Stock Bonus Plan effective January 1, 1985, filed as Exhibit 10(c) to the Registrant's Form 10-K for the year ended December 31, 1984, which is incorporated herein by reference to such Form 10-K. 10(c) Amendment to Employee Stock Bonus Plan dated January 6, 1987, filed as Exhibit 10(d) to the Registrant's Form 10-K for the year ended December 31, 1986, which is incorporated herein by reference to such Form 10-K. 10(d) 1994 Stock Bonus Plan effective January 1, 1994, filed as Exhibit 10(b) to the Registrant's Form 10-Q Quarterly Report for the quarter ended June 30, 1994, which is incorporated herein by reference to such Form 10-Q. 27 Financial Data Schedule for the 1st Quarter 10-Q Page 8 EX-27 2
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE COMPANY'S FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000745379 KENAN TRANSPORT COMPANY 1,000 3-MOS DEC-31-1995 MAR-31-1995 15,993 0 3,497 0 598 23,869 59,489 25,524 58,309 9,413 0 2,996 0 0 37,848 58,309 0 15,397 0 13,861 0 0 0 1,707 683 1,024 0 0 0 1,024 .43 0
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