Dynamex Inc. — a provider of same-day delivery and logistics services in the United States and Canada — on Wednesday, June 4, announced third-quarter net income of $3.8 million, an increase of 13 percent compared to $3.5 million in the prior year. Sales increased 9.1 percent to $113 million compared to the prior year. The company estimates that higher fuel surcharges account for about 3.1 percent of the increase in sales.
Operating income increased 11.1 percent compared to the prior year. Purchased transportation costs, the largest component of cost of sales, represented 66.0 percent of sales in the current-year quarter compared to 65.2 percent in the prior year, reflecting the impact of the increase in fuel surcharge revenues.
“Despite a challenging economy, high fuel costs and some of the worst winter conditions we have experienced in decades, our business delivered very solid financial results this quarter,” said Rick McClelland, chairman and chief executive officer of Dallas-based Dynamex. “Our variable-cost business model, industry-leading technology and national presence puts us in a unique position to capitalize on the opportunities in a weak economy as more and more shippers consolidate vendors and outsource shipping needs in order to reduce costs. If fuel costs remain high as forecasted, we expect to see some smaller competitors exit the business, which could present additional opportunities for our business in terms of less competition in select markets and possible acquisition opportunities.”
McClelland said the company’s sales pipeline continues to be strong from both its existing customer base and new customers, while the company’s affiliate model continues to progress with the signing of three new franchise locations during the quarter. At quarter end, Dynamex had 46 franchise locations.
“Our performance for the first nine months of this fiscal year has been solid in spite of serious economic challenges,” McClelland said. “I believe our performance demonstrates our ability to generate solid returns for our shareholders even in a tough economic environment. We are very excited about our position in the market, future growth opportunities and our ability to continue to profitably grow our business.”