SCS Transportation reports record 2005 results

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SCS Transportation reported record full-year revenue in 2005 of $1.1 billion, an increase of 12 percent from 2004. Consolidated 2005 operating income improved significantly to $54.6 million, including a pretax real estate gain of $7.0 million, compared with 2004 operating income of $40.8 million. Net income was $27.5 million, including $4.4 million after tax from the real estate gain, up from $19.3 million in 2004.

“For the third consecutive year, SCS Transportation delivered significantly improved earnings,” says Bert Trucksess, SCS chairman, president and chief executive officer. “Revenue surpassed $1 billion in 2005, and we achieved record results in earnings per share, even excluding a large real estate gain. We further strengthened our financial position, providing flexibility to take advantage of future opportunities. As we enter 2006, we are also encouraged by the strength of our consolidated fourth-quarter trends.”

Fourth-quarter revenue grew 14 percent to $288.3 million, from $251.9 million in the fourth quarter of 2004. Consolidated fourth-quarter operating income was $19.3 million, including the real estate gain, up from $9.1 million in the prior-year quarter. Net income was $10.7 million, up from $4.6 million in the fourth quarter of 2004.

Fourth-quarter results for SCS’ Saia subsidiary were as follows:

  • Revenue increased 22 percent to $202.4 million versus the prior-year quarter.
  • LTL tonnage increased 13 percent, and LTL yield grew 8 percent from a year earlier.
  • Operating income increased 33 percent, and Saia’s operating ratio improved to 93.4 percent, both excluding the real estate gain.
  • “Saia, a leading multi-region LTL carrier and our largest subsidiary, continues to excel in serving customers across its 30-state territory, delivering top-line growth and increased profitability,” Trucksess says. “We believe Saia’s prospects are very favorable, and we expect to build upon the positive momentum of this business. We continue to evaluate geographic expansion opportunities, and we believe the business is well-positioned to benefit from industry consolidation.”

    Fourth-quarter results for SCS’ Jevic subsidiary were as follows:

  • Revenue was $87.2 million, up 1 percent from the prior-year quarter.
  • Total tonnage was down 2 percent, and overall yields were up 4 percent from a year earlier.
  • Operating income was $0.7 million, and Jevic’s operating ratio was 99.2 percent. Jevic’s fourth-quarter 2004 operating income was $0.6 million, which included a charge of $3.8 million for an increase in estimated liability for workers’ compensation claims.
  • “Profitability at Jevic, our hybrid LTL and truckload carrier business, has not been acceptable in recent years and, in August 2005, we gave Dave Gorman a mandate for change as the new president and CEO of Jevic,” Trucksess says. “He is leading the evaluation and implementation of initiatives designed to improve current operations and profitability while maintaining high and consistent levels of service performance. We remain focused on growing Jevic’s LTL tonnage, improving cost effectiveness and enhancing revenue quality, all with the goal of significantly improving profitability.”

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