Truckload motor carrier Celadon Group bagged bigger revenues and earnings during its fourth fiscal quarter and for its fiscal year on the strength of increased freight volumes coupled to a growing lack of trucking capacity.
Celadon posted net income of $2.7 million on revenues of $139 million in its fourth fiscal quarter, compared to $200,000 and $116.9 million, respectively, in the same fiscal period last year.
For Celadon’s 2010 fiscal year, net income increased 80.8% to $4.7 million as total revenues jumped 6.8% to $523.5 million in 2010 from $490.3 million, with pure freight revenue increasing 9.4% to $446.4 million, compared to fiscal 2009.
“The freight environment has improved consistently over the past four months, as operating capacity has declined in the industry,” said Celadon chairman & CEO Steve Russell in the carrier’s year-end earnings release. “Further, we have broadened our customer base and have also benefitted from the increase in trade with Mexico, as Mexico has become more competitive with Asian manufacturers.”
He added that Celadon’s miles per truck improved by 8%, with rates – which had been trending down over the past several years – improving by about three cents per mile, or 2%, compared to the fourth quarter of fiscal 2009.
“Our balance sheet remains solid and we retain significant liquidity to support the growth of our business,” Russell noted. “As of June 30, we had $152.2 million of stockholders' equity, $18.8 million in cash and $35.6 million of total balance sheet borrowing with no outstanding bank borrowings.”