Ground delivery specialist CD&L made a small profit in the first quarter of this year after accounting changes forced the carrier to take more than $6 million in losses in 2001.
The South Hackensack, NJ-based carrier posted net income of $6,000 in the quarter on revenues of $38.5 million, compared to a loss of $12,000 on revenues of $40 million in the same period last year. CD&L added that its net income improvement is primarily attributable to the elimination of goodwill amortization expense, pursuant to the adoption of new accounting standards.
Those accounting changes, however, forced the company to restate its 2001 financials, leading to a loss of $6.26 million. CD&L said it had to eliminate operating income of $3.34 million last year to restore a goodwill deduction taken on losses incurred when it sold of several subsidiaries in 2001. That meant taking a $2.5 million loss on the sale of its Mid-West Region operation along with other charges for discontinued operations, said CD&L.