Cannon Express's losses grow

Oct. 17, 2002
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
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.

About the Author

Tim Parry

Tim Parry is a former FleetOwner editor. 

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Help drivers improve habits with tools that actually change behavior. This guide shows how Geotab Vitality helps fleets coach with data, reward improvement and build better habits...
Smarter fleets, safer roads—uncover how innovative technology is revolutionizing the transportation industry and making fleets safer and more efficient for everyone.
Unlock the secrets to smarter eet routing - discover how dynamic route optimization can cut costs, boost efciency, and help you adapt to real-world challenges.
Discover how eets can evaluate, select, and implement trailer telematics with condence. This step-by-step guide walks you through the entire process, so you can improve visibility...