Celadon said it would realize approximately $6 million in net proceeds as a result of the sale. Associated with the transaction, Celadon will incur a non-cash write-off of approximately $2 million on an after-tax basis.
“Cheetah represented approximately 8% of total revenue and was not strategic to the future of the company, which is primarily a van TL business,” said Steve Russell, Celadon’s chairman and CEO. “We had acquired Cheetah in June 1995 and, with the sale, achieved an overall average annual return of approximately 15%.”
Celadon also said it expects its trucking activities to demonstrate results substantially better than the March quarter, said Dave Shatto, executive vp operations.
“Although weakness in the economy continues to impact our utilization, higher seated count, improved fuel consumption, and the continued growth of our business between the U.S. and Mexico have accounted for the gains compared with the March quarter,” he said. “We anticipate trucking to approach breakeven in the June quarter.”
The company said its Internet venture, TruckersB2B, turned profitable in April and is now expected to be consistently profitable. Revenue for the June quarter is projected to be approximately $1.4 million, up about 25% from the March quarter.
