Celadon Group reported its financial and operating results for the fourth quarter and fiscal year ended June 30, 2016.
Article continues below
Revenue for the quarter increased $11 million, or 4.3%, to $264.3 million in the June 2016 quarter from $253.3 million in the June 2015 quarter.
Freight revenue, which excludes fuel surcharges, increased $18.4 million, or 8.2%, to $241.7 million in the June 2016 quarter from $223.3 million in the June 2015 quarter.
Net income decreased $10.4 million, or 86.5%, to $1.6 million in the 2016 quarter from $12.0 million for the same quarter last year.
Operating income decreased $16.0 million, or 74.7%, to $5.4 million in the June 2016 period from $21.4 million from the same quarter last year. Earnings per diluted share decreased $0.41, or 87.2%, to $0.06 in the June 2016 quarter from $0.47 for the same quarter last year.
For the twelve months ended June 30, 2016, revenue increased $164.6 million, or 18.3%, to $1.07 billion in 2016 from $900.8 million for the same period last year.
Freight revenue, which excludes fuel surcharges, increased $198.7 million, or 25.8%, to $968.7 million in 2016 from $770.0 million for the same period last year.
Operating income decreased $13.6 million, or 20.6%, to $52.2 million in the June 2016 period from $65.8 million from the same period last year. Net income decreased $12.4 million, or 33.2%, to $24.8 million in fiscal 2016 from $37.2 million for the same period last year.
Earnings per diluted share decreased $0.64, or 42.1%, to $0.88 in 2016 from $1.52 for the same period last year.
The decline in net income and earnings per share for the 2016 quarter was attributable primarily to three factors. The largest component was an approximately $7.8 million, approximately 17 cents per diluted share, decline in gain on disposition of equipment.
In addition, the company recorded claims reserve adjustments of approximately $3.5 million, approximately 8 cents per diluted share, relating to a $2.5 million adverse judgment and a $1.0 million increase in loss development reserves on prior period claims.
Finally, the combination of industry overcapacity, and sluggish freight volumes negatively impacted company's average revenue per loaded mile, which compressed company's variable and fixed cost margins. ■