-----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, BxzHz72agudy3ZL3mYcbPQEyAd2ggW3K/ICqAy3PSB8mcWM9+G1TrFwJM1c2IpXt Nb9nge8KVkldwAn1V43jBA== 0000950144-97-011672.txt : 19971110 0000950144-97-011672.hdr.sgml : 19971110 ACCESSION NUMBER: 0000950144-97-011672 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971107 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOYD BROS TRANSPORTATION INC CENTRAL INDEX KEY: 0000920907 STANDARD INDUSTRIAL CLASSIFICATION: TRUCKING (NO LOCAL) [4213] IRS NUMBER: 636006515 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-23948 FILM NUMBER: 97710542 BUSINESS ADDRESS: STREET 1: 3275 HIGHWAY 30 CITY: CLAYTON STATE: AL ZIP: 36016 BUSINESS PHONE: 3347753261 MAIL ADDRESS: STREET 1: 3275 HWY 30 CITY: CLAYTON STATE: AL ZIP: 36016 10-Q 1 BOYD BROTHERS FORM 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 September 30, 1997 ------------------ OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ------------------- to ---------------- Commission File Number 0-23948 -------------------------------------------------------- BOYD BROS. TRANSPORTATION INC. (Exact name of Registrant as specified in its charter)
Delaware 63-6006515 (State or other jurisdiction of (IRS Employer Identification incorporation or organization) Number)
3275 Highway 30, Clayton, Alabama 36016 --------------------------------------- (Address of principal executive offices) (Zip Code) (334) 775-1400 -------------- (Registrant's telephone number, including area code) Indicate by checkmark 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) Yes X No __, 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 November 4, 1997.
Common Stock, $.001 Par Value 3,700,688 ----------------------------- --------- (Class) (Number of Shares)
2 INDEX
Page Number Part I. Financial Information (Unaudited) Item 1. Condensed Financial Statements Condensed Balance Sheets September 30, 1997 and December 31, 1996 3 Condensed Statements of Operations Three- and nine-month periods ended September 30, 1997 and 1996 5 Condensed Statements of Cash Flows Nine-month period ended September 30, 1997 and 1996 6 Notes to Condensed Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Part II. Other Information Item 6. Exhibits and Reports on Form 8-K 10 Signatures 10
2 3 BOYD BROS. TRANSPORTATION INC. CONDENSED BALANCE SHEETS
September 30, December 31, 1997 1996 ------------- ------------ (unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 2,638,299 $ 3,593,206 Marketable securities 0 100,000 Notes and accounts receivable Trade and interline 7,621,869 5,541,471 Refundable income taxes 0 579,573 Accounts receivable - lease purchase 519,251 Other 869,424 274,876 Inventories 274,749 230,920 Prepaid tire expense 573,465 711,208 Other prepaid expenses 1,412,077 761,324 Deferred income tax 549,776 551,623 ----------- ----------- Total current assets 14,458,910 12,344,201 ----------- ----------- PROPERTY AND EQUIPMENT: Land and land improvements 1,082,510 1,082,510 Buildings 3,229,613 3,240,496 Revenue equipment 54,925,609 51,513,665 Other equipment 8,477,826 8,111,012 Leasehold improvements 426,185 406,577 ----------- ----------- Total 68,141,743 64,354,260 Less accumulated depreciation and amortization 21,476,851 19,761,532 ----------- ----------- Property and equipment, net 46,664,892 44,592,728 ----------- ----------- OTHER ASSETS 161,636 346,050 ----------- ----------- TOTAL $61,285,438 $57,282,979 =========== ===========
See notes to condensed financial statements. 3 4 BOYD BROS. TRANSPORTATION INC. CONDENSED BALANCE SHEETS
September 30, December 31, 1997 1996 ------------- ------------ (Unaudited) LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current maturities of long-term debt $ 4,912,264 $ 4,625,204 Accounts payable - trade and interline 2,784,524 2,122,561 Accrued liabilities: Self-insurance claims 2,392,814 2,203,999 Salaries and wages 999,449 465,665 Other 467,174 411,206 ----------- ----------- Total current liabilities 11,556,225 9,828,635 LONG-TERM DEBT 15,366,699 15,197,840 DEFERRED INCOME TAXES 8,745,454 8,368,757 ----------- ----------- Total liabilities 35,668,378 33,395,232 ----------- ----------- COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Preferred stock, $.001 par value - 1,000,000 shares authorized; no shares issued and outstanding Common stock, $.001 par value - 10,000,000 shares authorized; 3,700,688 shares issued and outstanding 3,701 3,701 Additional paid-in capital 13,780,616 13,780,616 Retained earnings 11,832,743 10,103,430 ----------- ----------- Total stockholders' equity 25,617,060 23,887,747 ----------- ----------- TOTAL $61,285,438 $57,282,979 =========== ===========
See notes to condensed financial statements. 4 5 BOYD BROS. TRANSPORTATION INC. CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended September 30, September 30, ---------------------------- ---------------------------- 1997 1996 1997 1996 ---------------------------- ---------------------------- (unaudited) (unaudited) OPERATING REVENUES $ 19,573,508 $ 17,528,798 $ 56,442,904 $ 48,807,561 OPERATING EXPENSES: Salaries, wages and employee benefits 8,021,629 7,397,758 24,163,300 21,405,410 Fuel 2,808,239 2,737,145 8,781,072 7,888,791 Operating supplies 2,694,459 2,254,896 7,118,648 6,543,028 Taxes and licenses 596,281 608,275 1,661,226 1,718,443 Insurance and claims 923,768 704,320 2,629,391 2,594,655 Communications and utilities 330,572 303,380 943,985 871,121 Depreciation and amortization 2,289,882 2,093,418 6,802,829 6,082,447 Gain on disposition of property and equipment, net (174,936) 46,468 (218,144) (761,849) Other 71,480 140,488 304,629 431,389 Purchased transportation 300,640 0 318,471 0 ------------ ------------ ------------ ------------ Total operating expenses 17,862,014 16,286,148 52,505,407 46,773,435 ------------ ------------ ------------ ------------ OPERATING INCOME 1,711,494 1,242,650 3,937,497 2,034,126 OTHER (INCOME) EXPENSES: Interest income (28,194) (30,368) (76,190) (77,122) Interest on installments 370,954 400,715 1,014,335 1,025,723 ------------ ------------ ------------ ------------ Other expenses, net 342,760 370,347 938,145 948,601 ------------ ------------ ------------ ------------ INCOME BEFORE PROVISION FOR INCOME TAXES 1,368,734 872,303 2,999,352 1,085,525 PROVISION FOR INCOME TAXES 579,170 365,000 1,270,035 505,183 ------------ ------------ ------------ ------------ NET INCOME $ 789,564 $ 507,303 $ 1,729,317 $ 580,342 ============ ============ ============ ============ NET INCOME PER SHARE $ 0.213 $ 0.137 $ 0.467 $ 0.155 ============ ============ ============ ============ WEIGHTED AVERAGE SHARES OUTSTANDING 3,700,688 3,714,873 3,700,688 3,734,745
See notes to condensed financial statements. 5 6 BOYD BROS. TRANSPORTATION INC. CONDENSED STATEMENTS OF CASH FLOWS
Nine Months Ended September 30, -------------------------- 1997 1996 ------------ ----------- (Unaudited) OPERATING ACTIVITIES: Net income $ 1,729,317 $ 580,342 Adjustments to reconcile net income: to net cash provided by operating activities: Depreciation and amortization 6,802,829 6,082,447 Gain on disposal of property and equipment, net (218,144) (761,849) Provision for deferred income taxes 1,270,035 505,183 Changes in assets and liabilities provided (used) cash: Marketable securities 100,000 0 Notes and accounts receivable (3,000,165) 567,116 Other assets (372,425) (488,304) Accounts payable trade and interline 661,963 67,308 Accrued liabilities 1,164,108 204,105 Deferred income taxes (891,491) (244,612) ----------- ----------- 7,246,027 6,511,736 ----------- ----------- INVESTING ACTIVITIES: Capital expenditures (12,389,506) (19,947,839) Proceeds from disposals of property and equipment 3,732,657 6,968,800 ----------- ----------- (8,656,849) (12,979,039) ----------- ----------- FINANCING ACTIVITIES: Proceeds from long-term debt 12,411,109 16,823,364 Principal payments on long-term debt (11,955,194) (8,657,348) Repurchase of common stock 0 (928,500) ----------- ----------- 455,915 7,237,516 ----------- ----------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (954,907) 770,213 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 3,593,206 1,481,910 ----------- ----------- BALANCE AT END OF PERIOD $ 2,638,299 $ 2,252,123 =========== ===========
See notes to condensed financial statements. 6 7 BOYD BROS. TRANSPORTATION INC. NOTES TO CONDENSED FINANCIAL STATEMENTS 1. BASIS OF PRESENTATION The accompanying condensed financial statements have been prepared in compliance with Form 10-Q instructions and thus do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the condensed statements reflect all adjustments, including those of a normal recurring nature, necessary to present fairly the results of the reported interim periods. The condensed statements should be read in conjunction with the summary of accounting policies and notes to financial statements included in the Company's Form 10-K for the year ended December 31, 1996. The results of operations for interim periods presented are not necessarily indicative of the operating results for an entire year. 2. ENVIRONMENTAL MATTERS The Company's operations are subject to federal, state and local laws and regulations concerning the environment. Certain of the Company's facilities are located in historically industrial areas and, therefore, there is the possibility of environmental liability as a result of operations by prior owners as well as the Company's use of fuels and underground storage tanks at its regional terminals. 3. CAPITAL TRANSACTIONS In January 1996, the Company's Board of Directors authorized the repurchase of up to 150,000 shares of common stock. During the first quarter of 1996 the company repurchased 82,300 shares for $617,250. Through the first nine months of 1996 the company repurchased a total of 122,300 shares for $928,590. No shares were repurchased during the first nine months of 1997. 7 8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Operating revenues increased 11.66% For the three-month period ended September 30, 1997 compared to the same period in 1996 due to increased demand for the Company's services and higher rates. The Company continued to focus on increasing its fleet size to meet the anticipated demands of new and existing customers, ending the first nine months of 1997 with 594 tractors compared with 574 tractors as of September 30, 1996. Additionally, revenue per truck increased due to better utilization and reduced deadhead. Total operating expenses increased 9.68% during the three-month period ended September 30, 1997 compared to the three months ended September 30, 1996, a slower rate of increase than revenue. Operating supplies expense increased 19.49% during the three-month period ended September 30, 1997 compared to the three months ended September 30, 1996. The increase was attributed to an increase in maintenance costs. For the three-month period ended September 30, 1997, salaries, wages, and benefits were 8.43% higher than in the corresponding period last year due to an increase in the number of drivers. Fuel expense increased only 2.6% for the three-month period ended September 30, 1997 versus 1996. Decreasing diesel prices caused fuel costs to increase slower than revenue for the quarter. Taxes and license expense decreased 1.97% for the three-month period ended September 30, 1997 versus 1996. Depreciation and amortization expense increased 9.38% due to the addition of new trucks. Insurance and claims were up 31.16% for the three-month period ended September 30, 1997 versus 1996 due to inferior safety performance and resulting increases in reserves. The operating ratio for the 3rd quarter of 1997 was 91.3% compared with 92.9% for the third quarter of 1996. For the three-month period ended September 30, 1997 versus 1996, interest expense was down 7.45% due primarily to decreased debt. Gain (loss) on sale of equipment increased from a loss of $46,468 during the third quarter of 1996 to a gain of $174,936 in 1997. More trailers were sold during the third quarter of 1997 than in the third quarter of 1996. Purchased transportation expenses were $300,640 during the third quarter of 1997 compared to no such expenses in 1996 since the owner-operator program was not in existence in 1996. Other expense for the third quarter of 1997 was down $69,008, or 49.1%. Environmental and professional fees were lower. Operating revenues increased 15.64% during the nine month period ended September 30, 1997 compared with the same period in 1996. Operating expenses increased 12.25% during the nine-month period ended September 30, 1997 compared with the same period in 1996. Salaries and wages increased 12.88% due to increased driver wages. Fuel expense increased 11.31% for the nine-month period ended September 30, 1997 versus 1996. Fuel costs increased at a lower rate than revenue due to decreasing diesel prices. For the first nine months ended September 30, 1997 versus 1996, operating supplies increased 8.8%, a much slower rate than revenue growth. Maintenance expenses were down compared with last year, causing the rate of increase in operating supplies to be lower than revenue growth. Tax and license expenses decreased 3.33% due to credits received from states. Depreciation and amortization expense increased 11.84% due to the addition of new trucks. Insurance and claims were up only 1.34% compared with the same period in 1996. Improved safety and lower accident claims over the full nine-month period contributed to the improvement. Gain on sale of equipment decreased from $761,849 during the first nine months of 1996 to $218,144 in 1997 as the Company traded fewer tractors than the previous year. The operating ratio for the first nine months of 1997 was 93.02% compared with 95.83% for the same period of 1996. For the nine-month period ended September 30, 1997 versus 1996, interest expense was slightly lower, by 1.1%, due primarily to lower debt levels. Other expenses decreased 29.38% for the nine months ended September 30, 1997 compared to 1996. Lower uncollectible reserves contributed to the decrease. LIQUIDITY AND CAPITAL RESOURCES Net cash flow provided by operating activities was $7,246,027 during the first nine months of 1997, compared to $6,511,736 during the first nine months of 1996. The Company had a working capital surplus of $2,902,685 at September 30, 1997. 8 9 During the first nine months of 1997, the Company purchased approximately $12,400,000 of replacement tractors and trailers, along with 19 additional tractors, of which $400,000 was financed with various lenders. Management expects to continue financing such equipment purchases through equipment financing arrangements with various lenders. Historically, the Company has relied on cash generated from operations to fund its working capital requirements. However, the Company has a line of credit with Amsouth Bank permitting short-term borrowings of up to $1.5 million at prime less .125%. At September 30, 1997 the Company had no outstanding borrowings on its line of credit. Management believes that the line of credit, borrowing facilities and cash flow from operations are sufficient to meet its financing needs. 9 10 Part II. Other Information. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 27 Financial data schedule (SEC USE ONLY) (b) Reports on Form 8-K No reports on Form 8-K were filed by the Registrant during the quarter ended September 30, 1997. 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 duly authorized. Boyd Bros. Transportation Inc. (Registrant) Date: November 7, 1997 /s/ Richard C. Bailey --------------------- Richard C. Bailey, Chief Financial Officer (Principal Accounting Officer) 10 EX-27 2 FINANCIAL DATA SCHEDULE
5 9-MOS DEC-31-1997 JAN-01-1997 SEP-30-1997 2,638,299 0 7,621,869 0 274,749 14,458,910 68,141,743 21,476,851 61,285,438 11,556,225 0 0 0 3,701 25,613,659 61,285,438 0 56,442,904 0 52,505,407 0 0 938,145 2,999,352 1,270,035 1,729,317 0 0 0 1,729,317 .467 .467
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