Celadon reports 4Q, full fiscal year results

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Celadon Group on Thursday, July 27, reported its financial and operating results for the three months ended June 30 — the company’s fourth fiscal quarter — and full fiscal year ended June 30.

Revenue for the quarter increased about 8.3 to $126.7 million in the 2006 quarter from $117.0 million in the 2005 quarter. Freight revenue, excluding fuel surcharges, was up 2.3 percent to $107.4 million in the 2006 quarter from $105 million in the 2005 quarter. Net income increased about 49 percent to $6.4 million in the 2006 quarter from $4.3 million for the same quarter last year.

For the full year, revenue increased 9.9 percent to $480.2 million from $436.8 million for the prior year. Freight revenue, excluding fuel surcharges, was up 3.7 percent to $414.5 million for the 2006 fiscal year from $399.7 million in the 2005 fiscal year. Net income for the 2006 fiscal year was $20.5 million, compared with $12.6 million for the prior year, or an increase of 60 percent.

“The June quarter reflected accelerating success of the programs we initiated over four years ago to execute our strategic plan,” said Steve Russell, chairman and chief executive officer of Indianapolis-based Celadon. “Continued strengthening of our customer base, enhanced driver satisfaction, steadily increasing average rates per mile, improved equipment age, and further strengthening of cost controls resulted in obtaining our interim goal of an operating ratio of 90 percent.” Russell said Celadon believes its future results will be assisted by a favorable relationship between freight demand and truckload capacity.