SCS Transportation has reported first-quarter 2006 revenue of $287 million, an increase of 13 percent from a year earlier. Consolidated operating income was $6.3 million, compared with $9.2 million in the first quarter of 2005. Operating income for the quarter included costs totaling $3 million for equity-based compensation as a result of the company’s increased stock price. Net income for the quarter was $2.4 million, compared to $4 million a year earlier. The after-tax impact of the equity-based compensation costs was $1.8 million.
“Saia continues to grow market share across its 30-state territory and achieved a 39 percent increase in operating income compared with the first quarter of 2005,” says Bert Trucksess, chairman, president and chief executive officer of Kansas City, Mo.-based SCS Transportation. “Jevic’s performance was challenged by decelerating volume that more than offset cost management gains.”
Saia’s first-quarter revenue increased 23 percent to $205 million versus the prior-year quarter. Less-than-truckload tonnage increased 15 percent, and LTL yield grew 6 percent. Operating income increased 39 percent, and operating ratio improved to 93.9 percent. “Saia delivered robust revenue growth again this quarter, with increases in tonnage and yields,” Trucksess says. “The business is benefiting from value-added services, industry consolidation and a good economy. Revenue trends were strong throughout the quarter and across Saia’s entire 30-state network. Saia continues to evaluate opportunities to grow and further increase profitability.”
Jevic’s first-quarter revenue declined 2 percent to $84 million versus the prior-year quarter. Tonnage declined 5 percent while yield grew 3 percent. Jevic reported an operating loss of $2.3 million, for an operating ratio of 102.8 percent. “Despite continued service consistency, Jevic volumes were impacted by a combination of increased competitive pressure following recent corporate publicity, an unseasonably warm winter which hurt its freeze protection business, and excess truckload capacity,” Trucksess says. “The volume weakness produced unfavorable operating leverage, which more than offset progress on cost management initiatives.”
Jevic’s first-quarter LTL tons were flat compared to the fourth quarter of 2005, while truckload tons decreased 10 percent. As a result of the lower business levels, Jevic reduced its work force by about 8 percent during the quarter.