SCS Transportation reports strong 2005
Consolidated 2005 operating income improved significantly to $54.6 million, including a pretax real estate gain of $7.0 million, compared with 2004 operating income of $40.8 million. Net income was $27.5 million, including $4.4 million after tax from the real estate gain, up from $19.3 million in 2004. Earnings per share were $1.82, including the real estate gain of $0.29, up from $1.26 in 2004. "For the third consecutive year, SCS Transportation delivered significantly improved earnings," said Bert Trucksess, chairman, president and CEO of SCS, "We achieved record results in earnings per share, even excluding a large real estate gain. We further strengthened our financial position, providing flexibility to take advantage of future opportunities. As we enter 2006, we are also encouraged by the strength of our consolidated fourth-quarter trends." Fourth-quarter revenue grew 14% to $288.3 million, from $251.9 million in the fourth quarter of 2004. Consolidated fourth-quarter operating income was $19.3 million, including the real estate gain, up from $9.1 million in the prior-year quarter. Net income was $10.7 million, up from $4.6 million in the fourth quarter of 2004. Earnings per share were $0.73, including the real estate gain, compared with earnings per share of $0.30 a year earlier. "Saia, a leading multi-region LTL carrier and our largest subsidiary, continues to excel in serving customers across its 30-state territory, delivering top-line growth and increased profitability," Trucksess said, "We continue to evaluate geographic expansion opportunities and we believe the business is well-positioned to benefit from industry consolidation." Based on consensus economic forecasts for 2006 and 2007 and ongoing consolidation in the LTL trucking industry, SCS Transportation said it expects to continue to benefit from a favorable supply-demand environment. The company's operational priorities for 2006 include, among others, continued revenue growth and profit improvement in the current Saia geography, potential expansion of Saia's geographic reach, and progress on the profit improvement program being implemented at Jevic.