Financially troubled car hauling carrier Allied Holdings posted a profit in its fourth quarter, helping it substantially reduce its losses for 2002.
Decatur, GA-based Allied reported net income of just under $2.1 million on revenues of $232.8 million, compared to a loss of $2.27 million on revenues of $224.4 million during the same quarter in 2001.
For the year, Allied narrowed its losses to $7.5 million on revenues of $898.1 million, down from losses of $39.5 million on revenues of $896.7 million in 2001. The company also reduced its debt load by $40.7 million in 2002 to $248.5 million.
President & CEO Hugh Sawyer said Allied has been in "turnaround mode" for two years, and though it has sharply reduced its losses the company is not out of the woods yet.
In 2001, Allied worked out a deal and avoided being de-listed from the New York Stock Exchange, despite falling below the exchange’s listing standards of $50 million in total market capitalization.
Allied also managed to get over 85% of its clients to pay an extra 8.5% "administrative fee" to beef up its sagging balance sheet. That fee alone is generating an additional $40 million to $50 million in revenue annually, the company said.