TCAM Transport OF America (MM)

Transport Corporation of America Reports First Quarter Results MINNEAPOLIS, April 26 /PRNewswire-FirstCall/ -- Transport Corporation of America, Inc. (NASDAQ:TCAM) today announced revenues for the first quarter 2005 of $61.4 million, compared with 2004 first quarter revenues of $62.1 million. First quarter 2005 net income was $94,000 or $0.01 per diluted share, compared with first quarter 2004 net income of $71,000, or $0.01 per diluted share. Michael Paxton, Chairman, President and Chief Executive Officer, commented, "Although the demand for freight was softer in the first quarter 2005 when compared to 2004, we continue to improve our operating fundamentals. Our revenue per loaded mile (excluding fuel surcharges) increased 4.0% to $1.53 for the first quarter 2005 compared to $1.47 for the same period in 2004 and our average freight revenue per tractor per week (excluding fuel surcharges) increased to $2,887 in the first quarter 2005 compared to $2,797 for the same period 2004." (The financial tables at the end of this release reconcile the differences between these non-GAAP financial measures excluding fuel surcharges and the most directly comparable GAAP measures including fuel surcharges.) Paxton also noted, "We continue to benefit from our strong safety record -- our accident rate per million miles was one of the lowest in a first- quarter period in the history of the Company. We also increased overall productivity as demonstrated by an increase in annualized revenue per non- driver employee from $611,000 in the first quarter 2004 to $621,000 in the first quarter 2005." Paxton continued, "Like many of our peers, we continue to experience the effects of a very difficult driver recruiting market, particularly as it relates to independent contractors. This directly limits the amount of freight we are able to haul, and accordingly, reduces overall revenues. Total seated capacity decreased 9.7% from the first quarter 2004 to the first quarter 2005. We continue to take actions to increase seated capacity, including increases in driver pay, new commitments to get drivers home weekly within specified areas of our network, and new recruiting and retention initiatives and incentives. During the first quarter 2005, our driver turnover percentage is down nearly 20% from the same period in 2004 as a result of these initiatives. "Finally, we continue to strengthen our balance sheet by reducing outstanding debt for the 20th straight quarter. At March 31, 2005, total debt and capital lease obligations were $48.8 million compared to $49.1 million at December 31, 2004." The Company will host a conference call and webcast on Tuesday, April 26, 2005 at 10:00 a.m. Central Time. The Internet broadcast can be accessed at the Company's website, http://www.transportamerica.com/ , or at http://www.fulldisclosure.com/ . About Transport America Transport Corporation of America, Inc., based in the Minneapolis - St. Paul metropolitan area, provides a wide range of truckload freight carriage and logistics services to customers in the United States and Canada. Transport America focuses on providing time-definite and other responsive services through its team of dedicated and committed employees supported by state-of-the-art technology and information systems. This news release contains forward-looking statements regarding the Company. The Company wishes to caution readers not to place undue reliance on any forward-looking statements which speak only as of the date made. The following important factors, among other things, in some cases have affected and in the future could affect the Company's actual results and could cause the Company's actual financial performance to differ materially from that expressed in any forward-looking statement: (1) the highly competitive conditions that currently exist in the Company's market and the Company's ability to compete, (2) the Company's ability to recruit, train, and retain qualified drivers, (3) increases in fuel prices, and the Company's ability to recover these costs from its customers, (4) the impact of environmental standards and regulations on new revenue equipment, (5) changes in governmental regulations applicable to the Company's operations, (6) adverse weather conditions, (7) accidents, (8) the financing and resale market for used revenue equipment, (9) changes in interest rates, (10) cost of liability insurance coverage, and (11) downturns in general economic conditions affecting the Company and its customers. The foregoing list should not be construed as exhaustive and the Company disclaims any obligation subsequently to revise or update any previously made forward-looking statements. Unanticipated events are likely to occur. TRANSPORT CORPORATION OF AMERICA, INC. CONSOLIDATED STATEMENTS OF EARNINGS Three Months Ended March 31, 2005 and 2004 (In Thousands, Except Share and Per Share Amounts) Unaudited Three Months 2005 2004 Amount % Amount % Operating revenues $61,436 100.0 $62,143 100.0 Operating expenses: Salaries, wages, and benefits 19,077 31.1 18,195 29.3 Fuel, maintenance, and other expense 11,547 18.8 9,390 15.1 Purchased transportation 17,672 28.8 20,591 33.1 Revenue equipment leases 390 0.6 268 0.4 Depreciation and amortization 5,723 9.3 5,743 9.2 Insurance, claims, and damage 2,202 3.6 3,142 5.1 Taxes and licenses 1,167 1.9 1,101 1.8 Communication 420 0.7 443 0.7 Other general and administrative 2,445 4.0 2,308 3.7 Total operating expenses 60,643 98.7 61,181 98.5 Operating income 793 1.3 962 1.5 Interest expense, net 639 1.0 845 1.4 Earnings (loss) before income taxes 154 0.3 117 0.2 Income tax provision (benefit) 60 0.1 46 0.1 Net earning (loss) $94 0.2 $71 0.1 Earnings (loss) per common share - basic $0.01 $0.01 Earnings (loss) per common share - diluted $0.01 $0.01 Average common shares outstanding Basic 6,541,890 7,087,215 Diluted 6,725,525 7,199,488 TRANSPORT CORPORATION OF AMERICA, INC. BALANCE SHEET March 31, 2005 and 2004 (In Thousands) Unaudited ASSETS 2005 2004 Current Assets: Cash and cash equivalents $2,610 $4,054 Trade receivables, net of allowances 24,861 27,589 Other receivables 2,267 1,757 Operating supplies 848 777 Deferred income taxes 5,609 6,189 Prepaid expenses 3,782 4,552 Total Current Assets 39,977 44,918 Revenue Equipment, At Cost 183,394 180,840 Less: accumulated depreciation (78,037) (80,669) Revenue Equipment, Net 105,357 100,171 Property and Other Equipment: Land, buildings, and improvements 16,718 16,302 Other equipment and leasehold improvements 21,387 21,563 Less: accumulated depreciation (19,307) (17,375) Property and Other Equipment, Net 18,798 20,490 Revenue, Property and Other Equipment, Net 124,155 120,661 Other Assets, Net 2,705 1,633 Total Assets $166,837 $167,212 LIABILITIES AND SHAREHOLDERS' EQUITY 2005 2004 Current Liabilities: Current maturities of Long Term Debt $7,581 $8,758 Current maturities of Capital Lease Obligations 9,153 4,402 Accounts payable 11,142 7,404 Checks issued in excess of cash balances 1,123 1,492 Due to independent contractors 1,223 2,379 Accrued expenses 22,212 20,879 Total Current Liabilities 52,434 45,314 Long-Term Debt & Capital Lease Obligations Long-term debt less current maturities 29,517 26,743 Capital lease obligations less current maturities 2,535 11,691 Deferred Income Taxes 25,787 25,869 Shareholders' Equity: Common stock 66 70 Additional paid-in capital 25,626 28,713 Retained earnings 30,872 28,812 Total Shareholders' Equity 56,564 57,595 Total Liabilities and Equity $166,837 $167,212 TRANSPORT CORPORATION OF AMERICA, INC. Selected Consolidated Financial and Operating Data Three Months Ended March 31, 2005 and 2004 Three Months 2005 2004 Operating Statistics Company tractors, seated 844 852 Company tractors, other 203 152 Independent contractor 505 678 Total tractors (at end of period) 1,552 1,682 Trailers (at end of period) 4,861 4,973 Average company tractors in service 1,458 1,630 Total loaded miles (000's) 34,605 39,618 Total miles (000's) 38,951 44,312 Freight revenue per tractor per week* $2,887 $2,797 Fuel surcharge per tractor per week 331 141 Operating revenue per tractor per week $3,218 $2,938 Freight revenues per loaded mile* $1.532 $1.473 Fuel surcharge per loaded mile 0.177 0.074 Operating revenues per loaded mile $1.709 $1.547 Freight revenues per mile* $1.361 $1.317 Fuel surcharge per mile 0.157 0.066 Operating revenues per mile $1.518 $1.383 Average empty mile percentage 11.2% 10.6% Average length of haul, all miles 669 697 Average annual revenues per non- driver employee (000's) $621 $611 Financial Data (000's) Freight revenue (excluding fuel surcharge) $53,016 $58,347 Fuel surcharge revenue 6,109 2,953 Operating revenue (including fuel surcharge) $59,125 $61,300 Logistics and other revenue 2,311 843 Total revenue $61,436 $62,143 Capital expenditures, net of proceeds $10,085 $1,860 Total debt and capital lease obligations $48,786 $51,593 * Excluding fuel surcharge DATASOURCE: Transport Corporation of America, Inc. CONTACT: Michael Paxton, Chairman, President and CEO, +1-651-686-2500, or Keith Klein, Chief Financial Officer, +1-651-686-2500, both of Transport Corporation of America, Inc. Web site: http://www.transportamerica.com/

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