Transportation Components Inc. (TransCom), a national distributor of replacement parts and supplies for commercial trucks and trailers, has made moves to try to halt rising loses. The company hired Bridge Associates LLC, a turnaround specialty firm, and appointed Anthony H. N. Schnelling, a principal of Bridge, as TransCom's Chief Restructuring Officer.
TransCom said it expects to report sales for 2000 of $295.2 million compared to $301.5 million for 1999, with a net loss of approximately $6.5 million to $7.5 million for 2000 compared to net income of $4.2 million in 1999.
TransCom said the net loss this year came from an increase in severance expenses related to layoffs, an increase in the reserve for doubtful accounts relating to the impact of the slowing economy and higher energy costs, higher interest and related financing costs and other non-recurring costs.
TransCom also said it has delayed the filing of its Form 10-K for 2000 as it negotiates with its senior secured lenders concerning waivers of defaults and extensions of payment due dates. The outcome of those negotiations will determine the balance sheet classification of its debt as long-term or short-term at December 31, 2000.
The delayed filing will be made within the next two weeks, the company said.