-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MqSfQLfBv/vjI92tqOV04JwSvScJrSmTGly4vzDzdGIdHjdxQR3hBXryncC0NKxb HhYEmUrDeROH5WrSCQMOaA== 0000950144-03-009025.txt : 20030730 0000950144-03-009025.hdr.sgml : 20030730 20030730062617 ACCESSION NUMBER: 0000950144-03-009025 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030730 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030730 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALLIED HOLDINGS INC CENTRAL INDEX KEY: 0000909950 STANDARD INDUSTRIAL CLASSIFICATION: TRUCKING (NO LOCAL) [4213] IRS NUMBER: 580360550 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13867 FILM NUMBER: 03809974 BUSINESS ADDRESS: STREET 1: 160 CLAIRMONT AVE STREET 2: STE 200 CITY: DECATUR STATE: GA ZIP: 30030 BUSINESS PHONE: 4043701100 MAIL ADDRESS: STREET 1: 160 CLAIREMONT AVENUE SUITE 200 CITY: DECATUR STATE: GA ZIP: 30030 8-K 1 g84021e8vk.htm ALLIED HOLDINGS, INC. ALLIED HOLDINGS, INC.
 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

Current Report for Event Occurring July 30, 2003

of

ALLIED HOLDINGS, INC.

a Georgia Corporation
IRS Employer Identification No. 58-0360550
SEC File Number 0-22276

160 Clairemont Avenue
Suite 200
Decatur, Georgia 30030
(404) 370-1100

 

 

Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

     (c)  Exhibits

  99.1   Press Release of Allied Holdings, Inc. issued July 30, 2003.

Item 12. Results of Operations and Financial Condition.

     The information set forth under this Item 12, including the Exhibits attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

     On July 30, 2003, Allied Holdings, Inc. issued a press release reporting its financial results for the second quarter ended June 30, 2003. A copy of the press release is hereby attached as Exhibit 99.1 and incorporated herein by reference.

 

 

Signature

     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 hereunto duly authorized.

         
Dated: July 29, 2003        
    ALLIED HOLDINGS, INC.
         
    By:   /s/ Daniel H. Popky
       
    Name:
Title: 		  Daniel H. Popky
Senior Vice President and
Chief Financial Officer

 

 

EXHIBIT INDEX

99.1   Press Release of Allied Holdings, Inc. issued July 30, 2003.

  EX-99.1 3 g84021exv99w1.txt EX-99.1 PRESS RELEASE DATED JULY 30, 2003 CONTACT Daniel H. Popky Sr. Vice President & CFO 404/370-4277 ALLIED HOLDINGS REPORTS SECOND QUARTER RESULTS DECATUR, GEORGIA, JULY 30, 2003 - ALLIED HOLDINGS, INC. (AMEX:AHI) TODAY REPORTED RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2003. Net income for the second quarter was $3.4 million, compared to net income of $2.1 million in the second quarter of 2002, an increase of 61.9 percent or $1.3 million. Basic earnings per share in the second quarter of 2003 were $0.40 and diluted earnings per share were $0.39, versus basic earnings per share of $0.25 and diluted earnings per share of $0.24 in the second quarter last year. Revenues for the second quarter of 2003 were $230.1 million compared to revenues of $239.0 million in the second quarter last year, a decline of 3.7 percent. Earnings before interest, taxes, depreciation and amortization, and gains and losses on disposal of assets (Adjusted EBITDA) for the second quarter of 2003 were $19.4 million compared to $23.5 million of Adjusted EBITDA reported during the second quarter last year, a decline of $4.1 million. Adjusted EBITDA is presented because management believes it provides useful information to investors regarding the Company's ability to generate cash flows that can be used to service debt and provide for capital expenditures. Adjusted EBITDA is also a component of certain financial covenants in Allied's debt agreements. A reconciliation of Adjusted EBITDA to Net Income and Operating Cash Flows is provided in the financial schedules attached to this press release. The decline in revenues in the second quarter this year compared to last year was primarily the result of a 5.8 percent decrease in vehicle deliveries mainly as a result of lower OEM production levels. The Company estimates that the impact of lower OEM production on vehicle deliveries reduced Adjusted EBITDA in the second quarter of 2003 by approximately $4 million compared to the prior year period. Partially offsetting the impact of lower vehicle deliveries on revenues was an increase in the Canadian Dollar exchange rate. While the rise in the Canadian Dollar increased revenues in the second quarter of 2003 compared to the second quarter of 2002 when converting Canadian Dollar revenues into US Dollars, the expenses of the Company's Canadian subsidiaries also increased when converting Canadian Dollar denominated expenses into US Dollars, thus minimizing the net impact to earnings. Commenting on the results, Hugh E. Sawyer, Allied's President and Chief Executive Officer, said, "Higher investment income from our captive insurance company and foreign currency exchange gains pushed net income higher in the second quarter of 2003 when compared to the second quarter last year. Fortunately, this increase in other income more than offset the impact of lower new vehicle production during the second quarter." Mr. Sawyer added, "During the second quarter a number of internal initiatives continued to gain traction. For example, incidents of cargo damage, worker injuries and traffic accidents actually declined versus the same period in 2002. The benefit from improved execution of internal initiatives virtually eliminated the approximate $2 million increase in costs during the second quarter from increased wages and benefits to our Teamster-represented employees. In the United States, our costs for these employees were higher during April and May of 2003, the final two months of the previous Teamster contract, versus the prior year period. Starting June 1, 2003, the Company began operating under a new five-year agreement with the Teamsters in the United States and there was no wage or benefit inflation in June of 2003. Wages under the new U.S. agreement will remain frozen for the first two years of the agreement and health, welfare and pension contributions will increase beginning August 1, 2003. We believe that this new five year contract stabilizes Allied's U.S. Teamster labor agreement Allied Holdings, Inc. July 30, 2003 during a critical phase of the Company's turnaround. We also believe that the successful ratification of the new labor agreement which became effective June 1, 2003, was an important step in the Company's ongoing revitalization effort. There was no wage and benefit inflation for our employees represented by the Teamsters in Canada during the second quarter of 2003 as a result of new labor agreements negotiated in Canada over the past year." Revenues for the six-month period ended June 30, 2003 were $443.7 million, versus $452.2 million for the same six-month period in 2002, a decline of 1.9 percent. Allied experienced a net loss of $2.3 million in the first six-months of 2003, versus a net loss of $3.1 million for the same period in 2002. Results for the first six-months of 2002 include a $1.7 million after-tax gain on the early extinguishment of the Company's subordinated notes and a $4.1 million after-tax charge related to the impairment of goodwill at the Company's Axis Group subsidiary. Adjusted EBITDA for the first six-months of 2003 was $30.0 million, versus $39.9 million of Adjusted EBITDA in the first six-months of 2002. During the second quarter of 2003, the Company repaid $3.8 million of long-term debt and capital expenditures were $2.5 million. For the first six months of 2003, the Company had net borrowings of $2.8 million and capital expenditures were $8.4 million. That compares to debt repayments of $24.2 million and capital expenditures of $7.5 million in the first half of 2002. Debt repayments were lower in 2003 due to reduced Adjusted EBITDA, lower cash proceeds from asset sales, and increased funding of the Company's captive insurance company because of a change in primary insurance carriers. During the first six-months of 2002, the Company received $5.6 million of cash proceeds from the sale of assets and joint ventures. In addition, Kemper, the Company's primary insurance carrier, was downgraded by A.M. Best. As a result, the Company moved its primary insurance coverage to Ace USA during the first half of 2003. The change in insurance carriers has resulted in increased contributions to the Company's captive insurance company because of delays in collateral reductions by Kemper. The Company reduced the number of rigs remanufactured during the second quarter of 2003 mainly because of the reduction in OEM production levels during the quarter. The Company also plans to reduce the number of vehicles to be remanufactured in the second half of 2003 based on anticipated OEM production levels. The Company will continue to evaluate the number of rigs to be remanufactured in 2003 as visibility into product shipment levels improve. The Company expects to spend between $15 and $20 million on capital expenditures during calendar year 2003. "While Allied improved net income in the second quarter as compared to the same period in 2002, we recognize that Adjusted EBITDA declined versus the prior year period. Allied remains a challenging turnaround," commented Mr. Sawyer. "Although execution of key internal initiatives has improved in the first half of 2003, the overall performance improvement was not sufficient to overcome the aggregate impact of the significant rise in fuel prices during the first quarter and the sharp decline in OEM production in the second quarter. As we prepare our operations for the second half of the year, we are clearly faced with challenging external conditions including but not limited to lower new vehicle production, increased competition in the marketplace, the Big Three's contract renewal with the UAW, and unstable fuel prices." Allied Holdings, Inc. July 30, 2003 Mr. Sawyer added, "Given the external uncertainties, Allied's management will strive to react swiftly to these factors in a manner consistent with our commitment to flexibility and speed of execution. As we expected, 2003 has proven to be a challenging transition year for Allied. We intend to maintain tight control of costs and continue to search for additional opportunities to reduce non-essential costs such as sales, general and administrative expenses and discretionary spending where we believe it will not compromise long-term value creation. Further, we intend to maintain our focus on Allied's core value drivers related to improved driver productivity and reduced cargo claims, worker injuries and traffic accidents. Our sales team has increased the pace of organic sales activity in an attempt to secure new or additional market share in an environment of reduced OEM production. Additionally, our terminal managers are seeking new or additional sources of revenue particularly in the secondary market for used vehicles movements." Mr. Sawyer concluded, "Our aspiration is to position our Company for any potential improvement in market or competitive conditions as we navigate through an important transition year." ABOUT ALLIED HOLDINGS Allied Holdings, Inc. is the parent company of several subsidiaries engaged in providing distribution and transportation services of new and used vehicles to the automotive industry. The services of Allied's subsidiaries span the finished vehicle distribution continuum, and include car-hauling, intramodal transport, inspection, accessorization, and dealer prep. Allied, through its subsidiaries, is the leading company in North America specializing in the delivery of new and used vehicles. Statements in this press release that are not strictly historical are "forward looking" statements. Such statements include, without limitations, any statements containing the words "believe," "anticipate," "estimate," "expect," "intend," "plan," "seek," and similar expressions. Investors are cautioned that such statements, including statements regarding the benefits resulting from the renewal of the contract with the Teamsters in the U.S. and its affect on the Company's revitalization effort and managements ability to react to external factors and uncertainties. The Company's ability to maintain a stable operating platform; the ability of the Company to execute key initiatives and the benefits derived from such execution; the ability of the Company to increase sales growth in AAG and Axis; the ability to ascertain opportunities to reduce costs and expenses; the amount of the Company's capital expenditures related to rig remanufacturing and other matters; and the Company's ability to secure new or additional sources of revenue, are subject to certain risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks and uncertainties include economic recessions or extended or more severe downturns in new vehicle production or sales, the highly competitive nature of the automotive distribution industry, the ability of the Company to comply with the terms of its current debt agreements, the ability of the Company to obtain financing in the future and the Company's highly leveraged financial position. Investors are urged to carefully review and consider the various disclosures made by the Company in this press release and in the Company's reports filed with the Securities and Exchange Commission. NOTE: THE INFORMATION IN THIS PRESS RELEASE WILL BE DISCUSSED BY MANAGEMENT TODAY ON A CONFERENCE CALL THAT CAN BE ACCESSED AT THE FOLLOWING LINKS: WWW.COMPANYBOARDROOM.COM OR WWW.ALLIEDHOLDINGS.COM BEGINNING AT 10:30 A.M. EST. ALLIED HOLDINGS, INC. AND SUBSIDIARIES 2003 SECOND QUARTER EARNINGS RELEASE (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, -------------------------- 2003 2002 ---- ---- Revenues $230,078 $238,984 Net income $ 3,372 $ 2,109 Income per share: Basic $ 0.40 $ 0.25 Diluted $ 0.39 $ 0.24 Weighted average common shares outstanding: Basic 8,462 8,300 Diluted 8,700 8,781
FOR THE SIX MONTHS ENDED JUNE 30, ------------------------ 2003 2002 ---- ---- Revenues $ 443,670 $ 452,243 Income (loss) before cumulative effect of change in accounting principle ($ 2,292) $ 953 Net loss ($ 2,292) ($ 3,139) Income (loss) per share before cumulative effect of change in accounting principle: Basic ($ 0.27) $ 0.12 Diluted ($ 0.27) $ 0.11 Net loss per share: Basic ($ 0.27) ($ 0.38) Diluted ($ 0.27) ($ 0.36) Weighted average common shares outstanding: Basic 8,436 8,259 Diluted 8,436 8,793
ALLIED HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
JUNE 30, DECEMBER 31, 2003 2002 ---- ---- (UNAUDITED) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 7,573 $ 10,253 Short-term investments 67,809 60,732 Receivables, net of allowance for doubtful accounts of $4,382 and $5,587 respectively 56,033 58,512 Inventories 5,514 5,071 Deferred tax assets 29,271 39,826 Prepayments and other current assets 32,523 28,685 --------- --------- Total current assets 198,723 203,079 --------- --------- PROPERTY AND EQUIPMENT, NET 166,879 176,663 --------- --------- GOODWILL, NET 89,128 85,241 --------- --------- OTHER 17,780 20,525 --------- --------- Total assets $ 472,510 $ 485,508 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current maturities of long-term debt $ 11,000 $ 10,785 Trade accounts payable 30,331 36,585 Accrued liabilities 91,804 92,881 --------- --------- Total current liabilities 133,135 140,251 --------- --------- LONG-TERM DEBT, LESS CURRENT MATURITIES 240,265 237,690 --------- --------- POSTRETIREMENT BENEFITS OTHER THAN PENSIONS 7,042 7,467 --------- --------- DEFERRED INCOME TAXES 19,451 27,746 --------- --------- OTHER LONG-TERM LIABILITIES 59,378 62,040 --------- --------- STOCKHOLDERS' EQUITY: Preferred stock, no par value; 5,000 shares authorized, none outstanding -- -- Common stock, no par value; 20,000 shares authorized, 8,494 and 8,421 shares outstanding at June 30, 2003 and December 31, 2002, respectively -- -- Additional paid-in capital 47,112 46,801 Treasury stock at cost, 139 shares at June 30, 2003 and December 31, 2002 (707) (707) Accumulated deficit (28,712) (26,420) Accumulated other comprehensive loss, net of tax (4,454) (9,360) --------- --------- Total stockholders' equity 13,239 10,314 --------- --------- Total liabilities and stockholders' equity $ 472,510 $ 485,508 ========= =========
ALLIED HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED JUNE 30, JUNE 30, -------------------------- ------------------------ 2003 2002 2003 2002 --------- --------- --------- --------- REVENUES $ 230,078 $ 238,984 $ 443,670 $ 452,243 --------- --------- --------- --------- OPERATING EXPENSES: Salaries, wages and fringe benefits 123,502 127,513 241,077 246,049 Operating supplies and expenses 35,968 35,906 73,148 66,811 Purchased transportation 25,837 25,527 50,550 47,107 Insurance and claims 11,477 12,929 20,834 23,500 Operating taxes and licenses 8,159 8,630 15,997 17,093 Depreciation and amortization 11,653 13,282 23,677 26,945 Rents 1,620 1,657 3,240 3,210 Communications and utilities 1,580 1,873 3,468 3,865 Other operating expenses 2,535 1,451 5,384 4,748 Loss (gain) on disposal of operating assets, net 195 315 459 (714) --------- --------- --------- --------- Total operating expenses 222,526 229,083 437,834 438,614 --------- --------- --------- --------- Operating income 7,552 9,901 5,836 13,629 --------- --------- --------- --------- OTHER INCOME (EXPENSE): Interest expense (7,373) (7,610) (14,754) (15,732) Investment income 3,007 615 3,333 887 Gain on early extinguishment of debt -- -- -- 2,750 Foreign exchange gains (losses), net 1,430 (4) 2,448 33 Other, net -- -- -- (207) --------- --------- --------- --------- (2,936) (6,999) (8,973) (12,269) --------- --------- --------- --------- INCOME (LOSS) BEFORE INCOME TAXES AND CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 4,616 2,902 (3,137) 1,360 INCOME TAX (EXPENSE) BENEFIT (1,244) (793) 845 (407) --------- --------- --------- --------- INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 3,372 2,109 (2,292) 953 CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET OF TAX -- -- -- (4,092) --------- --------- --------- --------- NET INCOME (LOSS) $ 3,372 $ 2,109 ($ 2,292) ($ 3,139) ========= ========= ========= ========= BASIC & DILUTED EARNINGS (LOSS) PER COMMON SHARE: INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE : BASIC $ 0.40 $ 0.25 ($ 0.27) $ 0.12 DILUTED $ 0.39 $ 0.24 ($ 0.27) $ 0.11 CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET OF TAX: BASIC -- -- -- (0.50) DILUTED -- -- -- (0.47) --------- --------- --------- --------- NET INCOME (LOSS): BASIC $ 0.40 $ 0.25 ($ 0.27) ($ 0.38) ========= ========= ========= ========= DILUTED $ 0.39 $ 0.24 ($ 0.27) ($ 0.36) ========= ========= ========= ========= WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: BASIC 8,462 8,300 8,436 8,259 ========= ========= ========= ========= DILUTED 8,700 8,781 8,436 8,793 ========= ========= ========= =========
ALLIED HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, ------------------------ 2003 2002 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES: Net loss ($ 2,292) ($ 3,139) Reconciliation of net loss to net cash provided by operating activities: Gain on early extinguishment of debt -- (2,750) Interest expense paid in kind 725 377 Amortization of deferred financing costs 2,054 2,028 Depreciation and amortization 23,677 26,945 Loss (gain) on disposal of assets and other, net 459 (507) Foreign exchange gains, net (2,448) (33) Cumulative effect of change in accounting principle -- 4,092 Deferred income taxes (671) 468 Compensation expense related to stock options and grants 120 148 Amortization of Teamsters Union contract costs 1,000 1,200 Change in operating assets and liabilities: Receivables, net of allowance for doubtful accounts 3,933 10,957 Inventories (299) 238 Prepayments and other current assets (3,480) 92 Short-term investments (7,077) (1,229) Trade accounts payable (7,194) 217 Accrued liabilities (5,313) 1,993 -------- -------- Net change in operating assets and liabilities (19,430) 12,268 -------- -------- Net cash provided by operating activities 3,194 41,097 -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (8,417) (7,470) Proceeds from sale of property and equipment 31 2,857 Proceeds from sale of equity investment in joint venture -- 2,700 Decrease (increase) in the cash surrender value of life insurance 2 (317) -------- -------- Net cash used in investing activities (8,384) (2,230) -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: Additions to (repayments of) revolving credit facilities, net 10,084 (60,723) Additions to long-term debt -- 82,751 Repayment of long-term debt (8,019) (43,830) Payment of deferred financing costs (414) (8,829) Proceeds from issuance of common stock 191 161 Other, net 26 373 -------- -------- Net cash provided by (used in) financing activities 1,868 (30,097) -------- -------- EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 642 158 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (2,680) 8,928 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 10,253 10,543 -------- -------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 7,573 $ 19,471 ======== ========
ALLIED HOLDINGS, INC. AND SUBSIDIARIES 2003 SECOND QUARTER EARNINGS RELEASE OPERATING DATA (UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, -------------------------------- --------------------------------- 2003 2002 2003 2002 ------------- ------------- ------------- ------------- ALLIED HOLDINGS, EXCLUDING AAG - CANADA & AXIS: REVENUES $ 175,572,000 $ 186,240,000 $ 344,387,000 $ 357,819,000 OPERATING INCOME (LOSS) $ 1,102,000 $ 1,298,000 ($ 2,351,000) $ 1,863,000 OPERATING RATIO 99.37% 99.30% 100.68% 99.48% VEHICLES DELIVERED 1,780,504 1,888,751 3,464,717 3,555,345 LOADS DELIVERED 229,532 235,036 446,821 440,909 VEHICLES PER LOAD 7.76 8.04 7.75 8.06 REVENUE PER VEHICLE $ 98.61 $ 98.60 $ 99.40 $ 100.64 PERCENT DAMAGE FREE DELIVERY 99.7% 99.7% 99.7% 99.7% NUMBER OF AVERAGE ACTIVE RIGS 3,065 3,053 3,047 3,073 AVERAGE EMPLOYEES DRIVERS 3,130 3,300 3,133 3,234 OTHERS 1,587 1,784 1,597 1,887 ALLIED AUTOMOTIVE GROUP - CANADA: REVENUES $ 47,526,000 $ 45,240,000 $ 84,913,000 $ 80,271,000 OPERATING INCOME $ 5,457,000 $ 7,121,000 $ 6,523,000 $ 10,172,000 OPERATING RATIO 88.52% 84.26% 92.32% 87.33% VEHICLES DELIVERED 650,446 691,494 1,179,509 1,224,962 LOADS DELIVERED 86,776 88,263 157,500 157,393 VEHICLES PER LOAD 7.50 7.83 7.49 7.78 REVENUE PER VEHICLE $ 73.07 $ 65.42 $ 71.99 $ 65.53 PERCENT DAMAGE FREE DELIVERY 99.7% 99.7% 99.7% 99.8% NUMBER OF AVERAGE ACTIVE RIGS 771 736 773 738 AVERAGE EMPLOYEES DRIVERS 1,001 989 1,050 957 OTHERS 402 519 404 504 AXIS GROUP: REVENUES $ 6,980,000 $ 7,504,000 $ 14,370,000 $ 14,153,000 OPERATING INCOME $ 993,000 $ 1,482,000 $ 1,664,000 $ 1,594,000
CERTAIN AMOUNTS IN THE INFORMATION PRESENTED ABOVE HAVE BEEN RECLASSIFIED TO CONFORM TO THE CURRENT YEAR PRESENTATION. ALLIED HOLDINGS, INC. AND SUBSIDIARIES 2003 SECOND QUARTER EARNINGS RELEASE NON-GAAP FINANCIAL INFORMATION (UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, --------------------------- ------------------------------ 2003 2002 2003 2002 ------------ ------------ ------------ ------------ RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA: NET INCOME (LOSS) $ 3,372,000 $ 2,109,000 ($ 2,292,000) ($ 3,139,000) INCOME TAX EXPENSE (BENEFIT) 1,244,000 793,000 (845,000) 407,000 INTEREST EXPENSE 7,373,000 7,610,000 14,754,000 15,732,000 INVESTMENT INCOME (3,007,000) (615,000) (3,333,000) (887,000) GAIN ON EARLY EXTINGUISHMENT OF DEBT -- -- -- (2,750,000) FOREIGN EXCHANGE LOSSES (GAINS), NET (1,430,000) 4,000 (2,448,000) (33,000) OTHER, NET -- -- -- 207,000 CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET OF TAX -- -- -- 4,092,000 LOSS (GAIN) ON DISPOSAL OF OPERATING ASSETS 195,000 315,000 459,000 (714,000) DEPRECIATION AND AMORTIZATION 11,653,000 13,282,000 23,677,000 26,945,000 ------------ ------------ ------------ ------------ ADJUSTED EBITDA $ 19,400,000 $ 23,498,000 $ 29,972,000 $ 39,860,000 ============ ============ ============ ============ RECONCILIATION OF OPERATING CASH FLOWS TO ADJUSTED EBITDA: CASH PROVIDED BY OPERATIONS $ 7,801,000 $ 16,726,000 3,194,000 41,097,000 ADJUSTMENTS: INTEREST EXPENSE 7,373,000 7,610,000 14,754,000 15,732,000 INTEREST PAID IN KIND (356,000) (365,000) (725,000) (377,000) INVESTMENT INCOME (3,007,000) (615,000) (3,333,000) (887,000) AMORTIZATION OF DEFERRED FINANCING COSTS (1,042,000) (983,000) (2,054,000) (2,028,000) INCOME TAX (BENEFIT) EXPENSE 1,244,000 793,000 (845,000) 407,000 DEFERRED INCOME TAXES (3,730,000) (2,235,000) 671,000 (468,000) AMORTIZATION OF TEAMSTER UNION CONTRACT COSTS (400,000) (600,000) (1,000,000) (1,200,000) COMPENSATION EXPENSE RELATED TO STOCK OPTIONS AND GRANTS (60,000) (89,000) (120,000) (148,000) TOTAL CHANGE IN OPERATING ASSETS AND LIABILITIES 11,577,000 3,256,000 19,430,000 (12,268,000) ------------ ------------ ------------ ------------ ADJUSTED EBITDA $ 19,400,000 $ 23,498,000 $ 29,972,000 $ 39,860,000 ============ ============ ============ ============
ADJUSTED EBITDA REPRESENTS EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION AND GAINS AND LOSSES ON OPERATING ASSETS. NET INCOME AND NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES ARE THE CLOSEST FINANCIAL MEASURES IN THE COMPANY'S FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, ("GAAP"), IN TERMS OF COMPARABILITY TO ADJUSTED EBITDA. AS SUCH, RECONCILIATIONS OF ADJUSTED EBITDA TO OPERATING (LOSS) INCOME AND NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES FOR THE QUARTERS AND SIX MONTHS ENDED JUNE 30, 2003 AND 2002 ARE PROVIDED ABOVE. BECAUSE ADJUSTED EBITDA IS NOT A MEASUREMENT DETERMINED IN ACCORDANCE WITH GAAP AND IS THUS SUSCEPTIBLE TO VARYING CALCULATIONS, ADJUSTED EBITDA AS PRESENTED ABOVE MAY NOT BE COMPARABLE TO OTHER SIMILARLY TITLED MEASURES OF OTHER COMPANIES. -----END PRIVACY-ENHANCED MESSAGE-----