Even though a transportation management-consulting firm took over its day-to-day operations in August, troubled truckload carrier Cannon Express Inc. continued its downward financial spiral through the fourth quarter.
Cannon's fourth-quarter net loss of $5,253,894 was higher than the $4,186,084 it lost in the same period last year. It lost $12,204,505 for the fiscal year, as opposed to a loss of 7,303,442 in the fiscal year 2001.
CEO Bruce W. Jones said the company's revenue and net income declined due to a shortage of qualified drivers to operate its trucks and because of a soft market for the company's services.
Jones is the president and founder of CFOex Inc., which was hired by the company in August to assist it in improving its financial and operational position. Soon after arriving, Jones took over day-to-day operation from the carrier's founder, Dean Cannon.
Cannon and his wife, Rose Marie, who had been secretary and treasurer, remain on the company's board.
Jones said he is currently implementing a plan that management believes will significantly improve its operating efficiencies over the next fiscal year. Future plans will include an increased emphasis on identifying and targeting those lanes that are profitable for the company and eliminating those lanes that do not fit the carrier's marketing philosophy.
The company has also identified certain unencumbered assets for disposition, including real estate and an airplane.