Total Logistics, Inc. Reports Continued Strong Earnings Growth for First Quarter
April 20 2004 - 7:18AM
PR Newswire (US)
Total Logistics, Inc. Reports Continued Strong Earnings Growth for
First Quarter MILWAUKEE, April 20 /PRNewswire-FirstCall/ -- Total
Logistics, Inc. (formerly CTOO) announced today its financial
results for the first quarter ended March 31, 2004. Net earnings
for the first quarter of 2004 of $1,088,000 nearly doubled the
prior year's first quarter earnings of $566,000. Diluted earnings
per share in the first quarter of 2004 were $.20 compared to $0.10
per diluted share, reported for last year's first quarter.
Consolidated revenues for the first quarter increased 13.1 percent
to $73.7 million, with revenue growth coming from both the Logistic
Services and Product Sales segments. In addition, the Company
announced shareholder approval of its name change from C2, Inc. to
Total Logistics, Inc. effective today. The Company has also changed
its website address to http://www.totallogisticsinc.com/. All other
contact information will remain the same. Commenting on the
results, William T. Donovan, President and CEO said, "We are
pleased to report the continuation of our strong earnings growth
for the first quarter of 2004. Our businesses are performing well
and both have strong growth and earnings momentum. Total Logistic
Control (TLC) continues to win important new long-term contracts to
provide dedicated facility management services and dedicated
logistic service programs with major food, beverage and industrial
companies. These programs drive our growth in a very efficient
manner as we have minimal capital investment requirements to fund
these projects. Zero Zone's business is operating at a much higher
level with a strong order backlog and significant productivity
improvement year over year. Our outlook for Total Logistics'
financial performance for the balance of 2004 and beyond is for
continued strong growth in revenues and earnings as we execute on
our sound, but aggressive business building strategy." First
Quarter Financial Results: Revenues for the first quarter ended
March 31, 2004 increased 13.1 percent to $73,700,000 due to growth
in both the Logistic Services and Product Sales segments. Logistic
Services revenues increased 11.8 percent, driven by higher volume
primarily in dedicated facility management, and refrigerated
warehousing, partially offset by decreased logistics and dry
warehousing services. Product Sales increased 16.9 percent to
$19,500,000 due primarily to increased refrigerated display case
sales, and refrigerated systems sales, partially offset by lower
food distribution sales. Interest expense decreased to $645,000 in
the first quarter of 2004, a decrease of $112,000 from the first
quarter of 2003. Reduced interest expense reflects lower debt
balances in the first quarter of 2004. Net earnings for the quarter
totaled $1,088,000, or $.20 per diluted share, reflecting an
increase of 92.4 percent, compared to net earnings of $566,000, or
$0.10 per diluted share, reported for last year's first quarter.
Net earnings were attributable to the combined effects of a 40.7
percent increase in earnings from operations, a 14.8 percent
decrease in interest expense and a lower tax rate. As previously
announced the Company's Annual Meeting will take place today at
9:00 A.M. Central Time at the Galleria Conference Room, U.S. Bank
Center, 777 East Wisconsin Avenue, Milwaukee, Wisconsin.
Presentations made at the Annual Meeting will be available for
viewing on our web site. Total Logistics, Inc. (formally C2, Inc.)
is a Milwaukee-based public company with two operating businesses,
Total Logistic Control and Zero Zone. Total Logistic Control TLC,
based in Zeeland, Michigan, is a national provider of integrated
logistic services which include refrigerated and dry warehousing,
transportation operations, supply chain management, dedicated
third-party facility and operations management, food distribution,
bottling and packaging and fulfillment services. Operations are
conducted through a national network of 40 logistic centers with 30
million cubic feet of refrigerated capacity and over 3 million
square feet of dry warehouse space making it the tenth largest
provider of refrigerated warehousing services in the United States.
TLC operates a fleet of over 415 tractors with over 723
refrigerated and dry trailers with 3 maintenance facilities. TLC
was recently cited by Inbound Logistics as a Top 10 Provider of
Third Party Logistics Excellence for the sixth year in a row. TLC
is a wholly-owned subsidiary of C2, Inc. More information about TLC
is available at http://www.totallogistic.com/. Zero Zone Zero Zone,
headquartered in North Prairie, Wisconsin is a manufacturer of
refrigerated and freezer display cases used in grocery, general
merchandise, convenience and drug store chains for retail
merchandising of food, beverage and floral products. In 2002, Zero
Zone acquired Zero Zone Refrigeration which manufactures
refrigeration houses and racks to power and control the
refrigeration systems, electrical panels, and stand-by power for
supermarkets, convenience stores and industrial applications. Zero
Zone is a wholly-owned subsidiary of C2, Inc. More information
about Zero Zone is available at http://www.zero-zone.com/. The
statements contained in this release that are not historical facts
are forward-looking statements. Actual results may differ
materially from management's expectations. Although we believe our
expectations are based on reasonable assumptions, we can give no
assurance that our goals will be achieved. The forward looking
statements involve risk and uncertainties, including but not
limited to: -- Demand for our products and services may be
adversely affected by the loss of a material customer, increases in
interest rates, adverse economic conditions, increased energy
costs, weather or other factors. -- The Company's market share may
be adversely affected as a result of new or increased competitive
conditions including pricing pressure. -- The Company's
profitability may be adversely affected by performance which does
not meet standards established in contractual agreements relating
to transportation operations, logistics management, dedicated
facility operations and product warranty. -- Consolidation within
the food industry or food retailers could negatively impact the
Company's customers. -- The Company's profitability may be
adversely affected by increases in interest rates due to our
capital structure as a portion of our debt is on a floating rate
basis. -- Reliance on a limited number of suppliers in product
sales. -- The Company's Product Sales profitability may be affected
by volatility in metal prices. Shareholders, potential investors
and other readers are urged to consider these factors in evaluating
the forward-looking statements and are cautioned not to place undue
reliance on such forward-looking statements. The forward-looking
statements included are made only as of the date of this report. We
are not obligated to publicly update such forward-looking
statements to reflect subsequent events or circumstances.
Additional information regarding the Company's business may be
found in the Company's Annual Report on Form 10-K for the year
ended December 31, 2003 and other filings the Company has made or
may make with the Securities and Exchange Commission from time to
time. This and other Total Logistics, Inc. news releases and
additional corporate data can be found on Total Logistics' website
at http://www.totallogisticsinc.com/. Total Logistics, Inc.
Consolidated Statement of Earnings (In Thousands, Except Share and
Per Share Data) (Unaudited) Three Months Ended March 31, 2004 2003
Revenues: Logistic Services $54,215 $48,475 Product Sales 19,484
16,664 73,699 65,139 Costs and Expenses: Logistic Expense 48,995
43,159 Cost of Product Sales 15,658 13,904 Depreciation and
Amortization 1,789 1,914 Selling, General & Administrative
Expenses 4,759 4,386 71,201 63,363 Operating Income 2,498 1,776
Other Income (Expense): Interest Expense, net (645) (757) Other
Income (Expense) (39) -- (684) (757) Earnings before Income Taxes
1,814 1,019 Provision for Income Taxes 726 453 Net Earnings $1,088
$566 Basic Earnings Per Share $0.21 $0.11 Diluted Earnings Per
Share $0.20 $0.10 Average Number of Shares Outstanding 5,287,537
5,271,864 Diluted Number of Shares Outstanding 5,575,151 5,541,817
DATASOURCE: Total Logistics, Inc. CONTACT: William T. Donovan,
President and CEO of Total Logistics, Inc., +1-414-291-9000 Web
site: http://www.totallogistic.com/ http://www.zero-zone.com/
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