USA: Allied Holdings reduces Q1 loss to $1.2 million
Allied Holdings, whose subsidiaries provide car shipping and logistics services to the motor industry, has reported Q1 2002 earnings before interest, taxes, depreciation and amortisation (EBITDA) at $16.4 million, a significant improvement over the $8.2 million EBITDA loss reported for Q1 2000.
EBITDA for the first quarter of 2001 included a $5.0 million charge for severance and workforce reduction expenses.
Revenues for the first quarter of 2002 were $213.3 million compared to revenues of $218.2 million in the first quarter last year.
However, the company reported a net loss of $1.2 million, or $0.14 per share, during the first quarter of 2002 compared with a net loss of $18.9 million, or $2.35 per share during the first quarter last year.
The first quarter 2002 net loss included a $1.7 million after-tax gain on the early extinguishment of the company's subordinated notes and a $550,000 after-tax gain on the sale of assets. The first quarter 2001 net loss included an after-tax charge of $3.2 million for severance and workforce reduction expenses.
"While the company experienced a net loss during the first quarter, Allied did make a small net profit in the month of March," said Allied's president and CEO Hugh Sawyer.
He said that March was the first month that Allied had been profitable since September 2000, excluding extraordinary gains. Net income for the month of March 2002, excluding one-time gains was $550,000.
"Allied's performance has improved due to the execution of our turnaround initiatives which included raising pricing, eliminating non- contributory expenses and assets, and closing non-performing locations," Sawyer said.
"We are particularly gratified to report signs of economic progress despite lower revenues in the first quarter of 2002 compared to the first quarter of last year," he added.
"Although Allied is still a challenging turnaround and we have much more to accomplish, I remain cautiously optimistic that we will achieve a stable operating platform in fiscal 2002."