Truckload conglomerate Celadon Group of Indianapolis reported $199,000 worth of net income for the second quarter of its fiscal 2002, compared with a loss of $555,000 in the same fiscal quarter in 2001.
Consolidated revenue for the second quarter of 2002 reached $79.3 million, a 5% increase over an adjusted $75.4 million reported for the same quarter in 2001. The adjustment accounts for excluded revenues from the sale of Celadon's flatbed division and higher pass-through revenues related to U.S. border-crossing costs. Including that revenue, Celadon would have generated $87.0 million in its second fiscal quarter of 2001.
For the first six months of its fiscal 2002, Celadon said its net income increased to $340,000, compared to a loss of $1.02 million over the same period during fiscal 2001. Consolidated revenue for the fist six months of its fiscal 2002 totaled $162.2 million, a 5% increase over Celadon's adjusted $153.9 million in revenue reported for the first six months of its fiscal 2001.
Steve Russell, Celadon's chairman & CEO, said improved margins and lower interest cost, related to a reduction of over $20 million in debt and lower interest rates, more than offset higher insurance and tractor costs. Tractor expenses increased due to reducing the trade cycle from five to four years, he added.
"Despite a much more difficult economic climate in the United States in 2001, we were able to grow revenue miles by close to 2%, and revenue on an adjusted basis by 5% for this quarter," Russell said.
Utilization measured in miles per week per tractor was below historical levels, due to the shape of the U.S. economy.
Celadon's Internet operation, TruckersB2B, generated operating income of $223,000 during the second quarter of fiscal 2002, compared with a loss of $655,000 during the same period of fiscal 2001. Revenue at TruckersB2B increased by 42% to $1.7 million in the second quarter of fiscal 2002, up slightly from $1.2 million in the same quarter of fiscal 2001. Celadon reported that TruckersB2B now has over 310,000 member trucks enrolled, represented by over 10,000 separate companies in the U.S. and Canada.