Truckload carrier Transport Corporation of America (TCA) not only posted a $279,000 loss for the first quarter of 2002, it had to take close to $20 million worth of charges, mostly to meet new accounting standards and to dispose of used tractors.
TCA's revenues for the quarter were relatively flat at $66 million, compared to $66.1 million in the first quarter of last year. The carrier had narrowed its losses to $279,000, compared to a loss of $752,000 in the same period last year.
. However, Minneapolis-based TCA had to take a non-cash $2.5 million charge after taxes to dispose of 260 tractors and 500 trailers. The carrier then had to take a non-cash "goodwill" charge of $16.7 million after taxes as it adopted new accounting standards. Altogether, TCA posted a net loss of $19.5 million for the quarter.
President & CEO Michael Paxton said operating conditions are mixed. Revenue per tractor per week, excluding fuel surcharges, improved 9% and total loaded miles increased 7%.
However, because of continued pricing pressure in the market, TCA's overall freight rates, excluding fuel surcharges, declined by 3-cents per mile compared to last year. Also, insurance cost increases and several large claims increased by 41%, he said.