Pacer International on Wednesday, Oct. 25, reported financial results for the three- and nine-month periods ended Sept. 22. For the quarter, revenues increased by $16.6 million to $458.2 million for the 2006 quarter, compared to $441.6 million in the 2005 quarter, and income from operations increased by $5.5 million to $31.6 million for the 2006 quarter, compared to $26.1 million a year earlier.
“The third quarter of 2006 showed strong operating cash flows as well as improved operating income in both segments over last year,” said Donald C. Orris, chairman and chief executive officer of Concord, Calif.-based Pacer. “Our wholesale segment’s revenues increased 10.7 percent quarter over quarter.”
For the nine-month period, revenues increased $29.5 million to $1,385.8 million compared to $1,356.3 million a year earlier, and income from operations increased by $24.3 million to $81.3 million for the period, compared to $57.0 million a year earlier. On an as adjusted basis, income from operations increased $13.0 million, or 19.0%, and net income increased $9.5 million, or 25.5%; these figures are in comparison to the 2005 first nine months adjusted to exclude the $11.3 million pre-tax charge ($6.8 million after-tax) for the write-off of software development costs.
Orris also announced that he will retire within the next 12 months upon the board’s appointment of his successor; Pacer’s board presently is considering and will name a successor. Orris intends to establish a pre-arranged trading plan to sell up to 660,000 shares of Pacer common stock, as part of his individual long-term strategy for asset diversification and estate planning purposes.
“After founding Pacer in March 1997 with the acquisition of a small intermodal marketing and trucking company, Don has worked tirelessly over the last 10 years to build Pacer into a leading North American third-party logistics and freight transportation provider,” said Michael E. Uremovich, the company’s vice chairman.
“Pacer’s strength is our people, from our product-line presidents and managers, to our line employees in operations and customer service, and everyone in between,” said Orris, 65. “But after 44 years in the freight transportation industry, including 10 years as chairman and CEO of Pacer, it is time for me to step down from this company, which has become a leader in logistics and intermodal transportation and has a promising future. It is time to spend more quality time with my wife and family, including my four grandchildren, and to plan for their futures.”