Dynamex Inc., a provider of same-day delivery and logistics services, on Thursday, Sept. 16, announced net income of $2.8 million for the fiscal year 2010 fourth quarter compared to net income of $1.8 million in the fiscal year 2009 fourth quarter. The prior-year quarter included a restructuring charge of $1.1 million pretax, $0.7 million after tax, related to the closing of the Canadian Administrative office and the elimination of the position of U.S. president.
For the full fiscal year ended July 31, 2010, the company reported net income of $10.7 million compared to $8.8 million in the prior year. In addition to the restructuring charge, the fiscal year 2009 full year results also included a first-quarter special payment of $1.5 million pre-tax, $1.0 million after-tax, to the former president and chief executive officer.
“Following a strong third quarter, the company again delivered significant operating cash flow as well as both core sales and net income growth, finishing the year on a high note,” said James L. Welch, president and CEO of Dallas-based Dynamex. “More specifically, due to our cost-reduction initiatives and our efforts to streamline the business, we delivered improved operating income and significantly enhanced our cash position. We continued to make progress on the long-term growth initiatives enacted during the year. Importantly, core sales per day increased for the fourth consecutive quarter, which is directly correlated to the investments in our sales force and sales process.”
Welch said that while the economic recovery is not as robust as many had hoped, the company believes its business model, strategy for profitable growth and strong financial position will enable it to generate long-term value. “Given our debt-free balance sheet, low working capital requirements and variable cost model, we are confident in our ability to navigate the current economic climate,” he said. “That said, we believe liquidity continues to be extremely important to operating a business in this market, and we will therefore remain prudent in managing our balance sheet.”
Sales were $105 million in the fourth quarter, 7.9 percent higher than the previous year due to higher core sales, a stronger Canadian dollar and higher fuel surcharges. Operating income was $4.1 million, an increase of 56 percent. Excluding charges from the prior year, operating income increased $0.4 million, or 10.2 percent.