AutoInfo Inc., a nonasset-based transportation services company, on Friday, May 15, announced results of its operations for the quarter ended March 31. The company reported gross revenues of $35.1 million as compared with $36.6 million for the prior-year period. Net revenues — gross revenues less the direct cost of transportation — were $7.5 million as compared with $6.7 million. Net income was $219,000 as compared with $490,000.
“During the latter part of the fourth quarter of 2008, the general economic conditions in the U.S. and globally experienced a significant downturn, impacting the market segments in which the company operates,” said Harry Wachtel, president of AutoInfo, based in Boca Raton, Fla. “This downturn, referred to by many economic experts as a worldwide recession, has continued into 2009. While we have seen some signs of improvement in the second quarter of 2009, there are no assurances that our future financial results will not continue to be impacted by the current economic climate.”
The company said that during the second quarter of 2009, it instituted a cost-reduction program that includes salary reductions of 10 percent to all executive, supervisory and management personnel, as well as reductions in other operating expenses.