Boyd Bros. Transportation, a flatbed carrier out of Clayton, AL, said it will take charges totaling approximately $725,000, which works out to $445,000 after taxes, for asset write-downs at its recently acquired subsidiary WTI Transport (formerly Welborn Transport).
The charges include a write-down of approximately $425,000 on power equipment to reduce the book-carrying value of approximately 50 WTI tractors to fair value, reflecting the impact of declining market values for used tractors as more equipment becomes available in the face of soft market conditions, said Boyd.
The carrier also said it would increase its reserve at WTI by about $300,000 for receivables relating to leases originated with owner-operators. Boyd noted that no write-downs of these kinds are currently expected for its own operation.
Boyd also said its freight volumes weakened in November and early December following a solid sales month in October. Those freight trends are below its expectations for the period and, if they continue, may affect Boyd Bros.' fourth quarter revenues and net results. Consequently, Boyd believes that its results from operations for the fourth quarter, excluding the impact of asset write-downs, will at best break even.
In the fourth quarter of 2000, Boyd Bros. reported operating revenues of $29.1 million and a net loss of $1.3 million, which included a one-time charge to increase reserves on lease receivables.