-----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, LKv3OnDxTnCkXbLlJfujII2RP9nWjQd4ClgvEcRwPLh24tE2sPm9GlWLbak0ZUPU a9fRuY7DJbf3RltIgMEpww== 0000793765-95-000011.txt : 19950626 0000793765-95-000011.hdr.sgml : 19950626 ACCESSION NUMBER: 0000793765-95-000011 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950623 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: KLLM TRANSPORT SERVICES INC CENTRAL INDEX KEY: 0000793765 STANDARD INDUSTRIAL CLASSIFICATION: TRUCKING (NO LOCAL) [4213] IRS NUMBER: 640412551 STATE OF INCORPORATION: DE FISCAL YEAR END: 1230 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-14759 FILM NUMBER: 95548910 BUSINESS ADDRESS: STREET 1: 3475 LAKELAND DR CITY: JACKSON STATE: MS ZIP: 39208 BUSINESS PHONE: 6019392545 MAIL ADDRESS: STREET 1: P.O.BOX 6098 CITY: JACKSON STATE: MS ZIP: 39288 10-Q/A 1 QUARTERLY REPORT FOR QUARTER ENDING 7/31/93 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Period Ended March 31, 1995 Commission File Number 0-14759 KLLM TRANSPORT SERVICES, INC. (Exact name of registrant as specified in its charter) Delaware 64-0412551 (State or other jurisdiction of I.R.S. Employer incorporation or organization) Identification No.) Post Office Box 6098 Jackson, Mississippi 39288 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (601) 939-2545 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, and (2) has been subject to such filing requirements for the past 90 days. Yes X No 4,509,251 Common Shares were outstanding as of March 31, 1995. KLLM TRANSPORT SERVICES, INC. AND SUBSIDIARIES INDEX Page PART I. FINANCIAL INFORMATION: Item 1. Financial Statements Condensed Consolidated Balance Sheets March 31, 1995 (Unaudited) and December 30, 1994 1 Consolidated Statements of Earnings (Unaudited) Thirteen weeks ended March 31, 1995 and April 1, 1994 2 Condensed Consolidated Statements of Cash Flows (Unaudited) Thirteen weeks ended March 31, 1995 and April 1, 1994 3 Notes to Condensed Consolidated Financial Statements (Unaudited) 4 Item 2. 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 7 KLLM TRANSPORT SERVICES, INC AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 30, 1995 1994 --------------------------- (Unaudited) (Note) (In Thousands) ASSETS Current assets: Cash and cash equivalents $160 $1,397 Accounts receivable 26,231 24,063 Inventories - at cost 1,290 1,191 Prepaid expenses: Tires 4,572 5,314 Other 4,531 3,764 Deferred income taxes 1,450 1,450 ------- -------- Total current assets 38,234 37,179 Property and equipment 178,344 182,747 Less accumulated depreciation (54,875) (55,991) -------- -------- 123,469 126,756 ======= ======== Intangible assets, net (Note B) 2,106 2,142 $163,809 $166,077 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Note payable to bank $510 $4,000 Accounts payable and accrued expenses 9,519 8,670 Current maturities of long-term debt and capital leases 2,503 2,483 ------ ------ Total current liabilities 12,532 15,153 Long-term debt and capital leases, less current maturities 66,210 66,531 Deferred income taxes 16,550 16,550 Stockholders' equity: Preferred Stock, $.01 value; authorized 5,000,000 shares; none issued Common Stock, $1 par value; 10,000,000 shares authorized; 4,552,219 shares issued; 4,509,251 shares outstanding. 4,552 4,552 Additional paid-in capital 32,946 33,121 Retained earnings 31,664 31,234 ------ ------ 69,162 68,907 Less Common Stock in Treasury, at cost, 42,968 shares (645) (1,064) ------ ------ Total Stockholders' Equity 68,517 67,843 ------ ------ $163,809 $166,077 ======= =======
Note: The balance sheet at December 30, 1994 has been derived from the audited financial statements at the date indicated, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. See accompanying notes. KLLM TRANSPORT SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
Thirteen Weeks Ended Thirteen Weeks Ended March 31, April 1, 1995 1994 -------------------------------------------- (In Thousands, Except Per Share Amounts) OPERATING REVENUE $56,847 $47,297 OPERATING EXPENSES: Salaries, wages and fringe benefits 15,870 15,012 Operating supplies and expenses 14,709 15,012 Insurance, claims, taxes and licenses 2,720 2,560 Depreciation and amortization 5,460 4,727 Purchased transportation and equipment rent 13,683 5,933 Other 2,783 2,420 Gain on sale of revenue equipment (521) (59) -------------------------------- TOTAL OPERATING EXPENSES 54,704 45,605 -------------------------------- OPERATING INCOME 2,143 1,692 Interest and other income 0 (2) Interest expense 1,450 1,157 -------------------------------- 1,450 1,155 -------------------------------- EARNINGS BEFORE INCOME TAXES 693 537 Income taxes 263 200 -------------------------------- NET EARNINGS $430 $337 ================================ NET EARNINGS PER COMMON SHARE $0.10 $0.07 ================================
KLLM TRANSPORT SERVICES INC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Thirteen Weeks Ended March 31, April 1, 1995 1994 ----------------------- (In Thousands) NET CASH PROVIDED BY OPERATING ACTIVITIES $3,902 $3,147 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of Fresh International Transportation, Inc. (Note B) (2,500) Purchases of property and equipment (4,817) (7,210) Proceeds from disposition of equipment 3,270 983 -------- -------- NET CASH FLOWS USED IN INVESTING ACTIVITIES (1,547) (8,727) -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from exercise of stock options 244 4 Net increase (decrease) in borrowings under revolving line of credit 6,000 Repayment of long-term debt and capital leases (301) (282) Net change in borrowings under working capital line of credit (3,490) (313) -------- -------- NET CASH FLOWS (USED) PROVIDED BY FINANCING ACTIVITIES (3,547) 5,409 -------- -------- Net Decrease in Cash and Cash Equivalents (1,192) (171) Cash and Cash Equivalents at Beginning Of Period 1,353 869 -------- ------- Cash and Cash Equivalents at End Of Period $160 $698 ========= =======
KLLM TRANSPORT SERVICES, INC AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE A- BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information. They have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and accordingly, do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. NOTE B - ACQUISITION OF CORPORATION Effective May 1, 1995, the Company acquired substantially all of the assets of Vernon Sawyer, Inc, a regional dry-van truckload carrier based in Bastrop, Louisiana. Prior operations of Vernon Sawyer, Inc. are immaterial to the Company's revenue, net earnings and earnings per share for the periods ended March 31, 1995 and December 30, 1994. Effective March 1, 1994, the Company acquired all of the outstanding stock of Fresh International Transportation, Inc., a company which provides temperature controlled transportation via double-stack containers on railroads. Results from operations of the Company include operations of the acquired company since March 1, 1994. The excess of purchase price over the fair value of the assets acquired is classified as goodwill and is included in intangibles in the accompanying balance sheet. Goodwill is being amortized by the straight line method over fifteen years. Prior operations of Fresh International Transportation, Inc. are immaterial to the Company's revenue, net earnings and earnings per share for the periods ended March 31, 1995 and December 30, 1994. NOTE C - FISCAL YEAR The Company has adopted a fiscal year-end on the Friday nearest December 31. Accordingly, the first quarter of 1995 ended on Friday, March 31, 1995. NOTE D - COMMITMENTS AND CONTINGENCIES During the quarter ended March 31, 1995, the Company entered into certain operating leases for revenue equipment with an average annual minimum rental payment of $4,057,000 through 1999. The Company is involved in various claims and routine litigation incidental to its business. Management is of the opinion that the outcome of these matters will not have a material adverse effect on the consolidated financial position or results of consolidated operations of the Company. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources KLLM Transport Services, Inc.'s primary sources of liquidity are its cash flow from operations and its existing credit agreements. During the thirteen weeks ended March 31, 1995, the Company generated $3.9 million in net cash provided from operating activities. The growth of the Company's business has required significant investments in new tractors and trailers, which were previously financed largely through long-term debt and capitalized leases. The vast majority of new tractors are now (beginning January 1995) being leased under an operating ease plan with terms more favorable than could have been obtained with financing or capital leasing. During the first quarter of 1995, the Company entered into these operating leases with average annual minimum rental payments of $4,057,000 through 1999. The commitment for 1995 is approximately $1,200,000. Capital expenditures, net of proceeds from trade-ins, during the first three months of 1995 were approximately $1,547,000. Net capital expenditures for the remainder of 1995, primarily for revenue equipment, are expected to be approximately $6,000,000. Effective May 1, 1995, the Company acquired substantially all of the assets of Vernon Sawyer, Inc, a regional dry-van truckload carrier based in Bastrop, Louisiana. The acquisition was financed from net cash provided from operating activities and existing credit facilities. Effective March 1, 1994, the Company acquired all of the outstanding stock of Fresh International Transportation, Inc., a company which provides temperature controlled transportation via double-stack containers on railroads. The acquisition was financed from net cash provided from operating activities. The Company has a $50,000,000 unsecured revolving line of credit with a syndication of banks. Borrowings of $36,000,000 were outstanding at March 31, 1995. Under the terms of the agreement, borrowings bear interest at (i) the higher of prime rate or a rate based upon the Federal Funds Effective Rate, (ii) a rate based upon the Eurodollar rates, or (iii) an absolute interest rate as determined by each lender in the syndication under a competitive bid process at the Company's option. Facilities fees from 1/4% to 3/8% per annum are charged on the unused portion of this line. Working capital needs have generally been met from net cash provided from operating activities. The Company has a $4,150,000 in unsecured working capital lines of credit with a bank, $3,640,000 of which was available at March 31, 1995. Interest is at a rate based upon the Eurodollar rates with facility fees at 1/4% per annum on the unused portion of the line. The Company anticipates that its existing credit facilities along with cash flow from operations will be sufficient to fund operating expenses, capital expenditures, and debt service. Results of Operations Operating revenue for the first quarter of 1995 increased 20% over the comparable period of 1994. The increase in operating revenue in the first quarter consisted of 7% from the Company's traditional over-the-road truckload business, substantially all of which came from the owner-operator division, 2% from rail services, 5% from transportation brokerage services, and 6% from international services. The increase in revenue resulted from an increase in available Company- operated equipment and an improvement in rates. The average number of Company operated trucks in the first quarter of 1995 increased by approximately 11%, from the comparable period in 1994. The operating ratio decreased from 96.4% to 96.2% for the first quarter of 1995 compared to the same period in 1994. Operating revenues, particularly in our trucking and rail operations, were affected by the West Coast flooding, a Canadian National Railway strike and industry-wide softness in the transportation market. The relative change in the components of operating expenses during 1995 reflects the increase in purchased transportation by the newer operating divisions as compared to 1994, and the increase in equipment rent regarding the new operating leases for tractors and trailers, as previously mentioned. The increase in gain on sale of revenue equipment during the first quarter of 1995 as compared to the same period in 1994 resulted in a decrease in the operating ratio of 0.8%. Substantially all of the growth in revenue is from the newer operations. These divisions are lower margin than the traditional over-the-road freight operation which increases the operating ratio overall; however, they are not as capital intensive. As a result of the foregoing, net earnings increased by $93,000 or 28% for the first quarter from the comparable period of 1994. Earnings per share increased from $.07 to $.10 in the first quarter of 1995. Seasonality In the transportation industry, results of operations generally show a seasonal pattern because customers reduce shipments during and after the winter holiday season with its attendant weather variations. The Company's operating expenses have historically been higher in the winter months primarily due to decreased fuel efficiency and increased maintenance costs in colder weather. PART II: OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K Exhibit 27 - FDS There were no reports on Form 8-K filed for the quarter ended March 31, 1995. 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. KLLM TRANSPORT SERVICES, INC. (Registrant) Date May 12, 1995 ---------------------------- J. Kirby Lane Executive Vice President and Chief Financial Officer Date May 12, 1995 ----------------------------- Cindy F. Bailey Corporate Controller
EX-27 2 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
5 0000793765 1,000 3-MOS DEC-29-1995 JAN-1-1995 MAR-31-1995 160 0 26,231 147 1,290 38,234 178,344 54,875 163,809 12,532 0 4,552 0 0 63,966 163,809 0 56,847 0 54,704 0 0 1,450 693 263 430 0 0 0 430 0.10 0.10
-----END PRIVACY-ENHANCED MESSAGE-----