Dynamex reports lower 3Q net income

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Dynamex Inc., a provider of same-day delivery and logistics services in the United States and Canada, on Wednesday, June 3, announced net income of $1.6 million for its fiscal year 2009 third quarter compared to $3.8 million in the prior year. Sales were $92 million, down 18.4 percent; the company said the lower U.S./Canadian dollar exchange rate during the quarter accounted for about 6.7 percent of the decline, while reduced fuel surcharges accounted for about 5.1 percent. Operating income declined 55 percent.

“Our fiscal third-quarter results reaffirmed the trends we discussed when we updated our guidance in late April,” said James L. Welch, president and chief executive officer of Dallas-based Dynamex. “The economy remains weak, and this is resulting in lower shipment volumes for many of our customers.”

Welch said that despite the current conditions, he was pleased with the company’s 26.9 percent gross margin, which was better than the year-ago quarter and validates the effectiveness of its variable direct-cost structure. “Furthermore, we increased our cash by $5.7 million while funding $3.3 million in capital expenditures,” he said. “Our business remains profitable, and very importantly, we have zero debt.”

Welch said that while the timing of any improvements in the economy are uncertain at best, Dynamex will be well poised to leverage opportunities as soon as they begin to occur. “We believe our business is very well positioned both today and for the future when the business environment improves,” he said.