425 1 msc425.txt M.S. CARRIERS PRESS RELEASE M.S. Carriers, Inc. Reports Increase In Revenue In First Quarter 2001 Contact: Joe Barrow (901) 344-4401 Memphis, Tenn. (April 17, 2001) -- M.S. Carriers, Inc. (NASDAQ: MSCA), an irregular route truckload carrier, reports the following results for the quarter ending March 31, 2001: Three Months Ended March 31 2001 2000 % Change ---- ---- -------- Revenues $ 182.2 $ 167.1 9.0% Operating Income $ 6.7 $ 9.9 -31.8% Net Income $ 1.1 $ 4.6 -77.0% Diluted Earnings Per Share $ 0.09 $ 0.38 -76.3% (In millions except per share data) Operating revenues for the first quarter of 2001 increased nine percent to $182.2 million from $167.1 million in the same period 2000. Operating income for the first quarter of 2001 was $6.7 million, a 31.8 percent decrease from $9.9 million in the same period 2000. Net income for the quarter ending March 31, 2001 was $1.1 million, a 77.0 percent decrease from $4.6 million in the first quarter of 2000. Diluted earnings per share for the first quarter of 2001 were nine cents, a decrease of 76.3 percent from 38 cents for the same quarter last year. Mike Starnes, chairman and chief executive officer said: "Softness in the truckload freight markets during the first quarter of 2001 lowered our operating margins primarily through a greater percentage of non-revenue miles. The months of January and February 2001 were particularly affected by this factor. Market conditions improved in March but were still down compared to last year. "We are progressing with the merger with Swift Transportation that was announced December 11, 2000. During this quarter, M.S. Carriers accrued $0.02 per share for merger related expenses. We expect to close the merger in the second quarter of 2001." M.S. Carriers will hold a conference call on April 18, 2001 at 9:00a.m. CDT regarding the first quarter earnings. The call may be accessed at (888) 423- 3275 in the United States or (612) 332-0418 Internationally. The conference call will be available for replay from 12:30 p.m. CDT, April 18, 2001 until 12:00 p.m. CDT, April 25, 2001 at (800) 475-6701 in the United States and (320) 365-3844 Internationally using access code 582787. This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This information is in accordance with the company's current expectations and is subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. With respect to M.S. Carriers' financial results these uncertainties include, without limitation, the following: M.S. Carriers will have reasonable success recruiting and retaining experienced drivers and owner operators at the company's current compensation level; demand and pricing for the markets served by M.S. Carriers will remain at current levels; fuel will remain available and without rapid price fluctuations; and the company's accident experience will remain at historical levels. With respect to 1 the proposed merger transaction with Swift these uncertainties include, without limitation, the following: the inability to obtain governmental approvals of the merger on the proposed terms and schedule; the failure of M.S. Carriers and Swift stockholders to approve the merger; the risk that the businesses will not be integrated successfully; the risk that the revenue synergies and costs savings anticipated from the merger may not be fully realized or may take longer to realize than expected; the risk that additional insurance and claims reserves and expenses may be incurred; disruptions from the merger making it more difficult to maintain relationships with customers, employees or suppliers; and increased competition and its effects on pricing, spending, third-party relationships and revenues. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the 2000 Annual Report on Form 10-K of M.S. Carriers with the Securities Exchange Commission. This press release is being filed with the SEC pursuant to Rule 425 under the Securities Act of 1933. 2 M.S. CARRIERS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS 31-Mar-01 31-Dec-00 Assets Current Assets: Cash & Cash Equiv. $ 287,532 $ 442,188 Accts Receivable: Trade, Net 83,785,713 84,547,281 Affiliate 11,007,081 Officers & Employees 1,718,019 1,657,217 -------------- -------------- 85,503,732 97,211,579 Recoverable Income Taxes 5,991,776 3,080,972 Deferred Income Taxes 14,078,000 14,113,152 Prepaid Expenses & Other 13,800,525 8,590,836 -------------- -------------- Total Current Assets 119,661,565 123,438,727 Property & Equipment Land & Land Improvements 13,491,942 13,469,040 Buildings 40,016,991 39,987,066 Revenue Equipment 566,742,379 567,967,605 Service Equipment & Other 56,522,084 56,118,261 Construction in Progress 2,976,729 2,895,443 -------------- -------------- 679,750,125 680,437,415 Less Accumulated Depr & Amortization 218,730,253 204,637,683 -------------- -------------- 461,019,872 475,799,732 Other Assets 20,961,393 21,213,310 -------------- -------------- Total Assets $ 601,642,830 $ 620,451,769 -------------- -------------- Liabilities & Stockholders' Equity Current Liabilities: Accounts Payable: Trade, Net $ 5,298,319 $ 7,398,017 Affiliate 953,385 Accrued Compensation and Related Costs 7,395,997 4,611,314 Accrued Expenses 15,465,644 13,139,878 Claims Payable 33,752,269 33,842,957 Curr. Maturities of L.T. Debt 61,171,858 65,558,795 -------------- -------------- Total Current Liabilities 124,037,472 124,550,961 Fair Market Value of Interest Rate Swaps 3,039,900 Long-Term Debt, Less Current Maturities 186,743,933 207,816,118 Deferred Income Taxes 70,258,516 69,929,823 Stockholders' Equity: Common Stock 112,341 111,685 Add. Paid In Capital 61,868,748 60,567,768 Retained Earnings 161,384,911 160,321,332 Notes Receivable from Officers (851,719) (851,719) Cumulative Other Comprehensive Loss (4,951,272) (1,994,199) -------------- -------------- Total Stockholders' Equity 217,563,009 218,154,867 Total Liabilities & Stockholders' Equity $ 601,642,830 $ 620,451,769 -------------- -------------- 3
M.S. CARRIERS, INC. AND SUBSIDIARIES STATEMENTS OF INCOME Three Months Ended 31-Mar 2001 2000 Percent of Percent of Revenue Revenue Operating Revenues $182,183,334 $167,068,901 Operating Expenses: Salaries, wages and benefits 66,182,115 36.33% 53,042,521 31.75% Operations and maintenance 38,481,921 21.12% 31,511,492 18.86% Taxes and licenses 3,890,545 2.14% 3,225,958 1.93% Insurance and claims 8,294,694 4.55% 4,991,473 2.99% Communications and utilities 2,496,661 1.37% 2,071,188 1.24% Depreciation and amortization 16,539,574 9.08% 18,208,486 10.90% Gain on disposal of revenue equipment -139,340 -0.08% -12,934 -0.01% Rent and purchased transportation 37,440,981 20.55% 42,917,026 25.69% Other 2,269,418 1.25% 1,247,191 0.75% ------------ ------ ----------- ------ Total Operating Expenses 175,456,569 96.31% 157,202,401 94.09% ------------ ------ ----------- ------ Operating Income 6,726,765 3.69% 9,866,500 5.91% Other Expense (income): Interest Expense 4,740,860 2.60% 3,424,101 2.05% Other 194,637 0.11% -630,361 -0.38% ------------ ------ ----------- ------ 4,935,497 2.71% 2,793,740 1.67% ------------ ------ ----------- ------ Income before income taxes 1,791,268 0.98% 7,072,760 4.23% Income taxes 727,689 0.40% 2,458,472 1.47% ------------ ------ ----------- ------ Net Income $ 1,063,579 0.58% $ 4,614,288 2.76% Diluted Earnings per share $ 0.09 $ 0.38 Common Shares & Common Share Equivalents 11,732,694 12,189,276 Note: Due to the requirements of FAB 101, for 2001 fuel surcharges are now classified as revenue instead of offsetting fuel expense in operations and maintenance. For comparability, the statement of income for 2000 has been modified to reflect this change. 4
M.S. CARRIERS, INC. AND SUBSIDIARIES OPERATING STATISTICS Three Months Ended 31-Mar 2001 2000 ---- ---- Total Miles 140,082,130 123,738,440 Empty Miles 21,267,241 16,645,696 Empty Mile % 15.18% 13.45% Trucking Revenue $174,019,380 $150,652,616 Revenue per Mile 1.242 1.218 Revenue per Loaded Mile 1.465 1.407 Ending Company Tractors 3,704 3,430 Ending Leased Owner Operators 689 602 Ending Owner Operators 614 685 ------------ ------------ Ending Tractors 5,007 4,717 Beginning Company Tractors 3,733 3,283 Beginning Leased Owner 718 562 Operators Beginning Owner Operators 678 743 ------------ ------------ Beginning Tractors 5,129 4,588 Utilization 2,169 2,042 Revenue per Tractor per Week $ 2,695 $ 2,485 5 M.S. CARRIERS, INC. AND SUBSIDIARIES Product Revenue Statistics Three Months Ended 31-Mar 01234567890123456789012345678901234567890123456789012345678901234567890123456789 0 Percentage of 2001 2000 Change ---- ---- Domestic Irregular Route Trucking $ 104,780 $ 92,373 13% International Irregular Route Trucking 35,570 33,887 5% Dedicated Route Trucking 33,669 24,393 38% --------- -------- Trucking Revenue 174,019 150,653 16% Logistics Revenue - 17,261 100% Inter Divisional Elimination and Other (1) 8,164 (845) N/A --------- -------- Total Revenue $ 182,183 $167,069 9% ========= ========= Trucking Operating Ratio 96.3% 93.9% -2.4 points Logistics Operating Ratio N/A 96.1% N/A Total Company Operating Ratio 96.3% 94.1% -2.2 points (1) For 2001, this includes revenues from the lease purchase program and fuel surcharges. For 2000, this includes intercompany elimination for logistics revenue and fuel surcharges.