Full-year up 50.8%
Pacer International, Inc. recently reported financial results for the three months and year ended December 31, 2004.
For the quarter ended December 31, 2004, net income increased to
$17.0 million from $11.4 million earned in the same quarter of 2003, a gain of 49.1%. Diluted earnings per share increased to $0.44 from $0.30, up 46.7%. The company generated $7.5 million of cash flow from operations in the fourth quarter of 2004 and paid down $15.0 million of debt.
Pacer International’s interest expense in the 2004 quarter decreased 16.2% to $2.5 million from $3.0 million in the same quarter of 2003. This was due to reduced debt levels and to lower interest rates that resulted from the repricing of its senior credit facility during the fourth quarter of 2003.
“Our strong fourth quarter performance demonstrated Pacer International’s ability to overcome challenges in the external environment while also resolving some legacy issues that confronted us,” said Don Orris, Chairman and Chief Executive Officer. “This reflects both our flexibility in adapting to difficult market conditions and our ability to continue to reduce operating costs. The stronger performance came in the face of a difficult rail service environment that affected a significant portion of our revenue and reduced the rail volume incentives we receive. Improved operating performance was clearly evident in both our retail and wholesale units. In addition, the fourth quarter of 2004 saw the confluence of some unusual legal expenses from legacy proceedings and increased Sarbanes-Oxley compliance costs. These two items alone added expenses of nearly $3.0 million in the quarter.” Orris concluded: “Even in the face of these challenges, Pacer was able to deliver our strongest quarterly performance of the year and show major improvement over the same period in 2003.”
For the fiscal year ended December 31, 2004, Pacer International’s net income increased to $47.2 million from $31.3 million for 2003, a gain of 50.8%. Diluted earnings per share increased to $1.24 from $0.82 in 2003, up 51.2%. The company had $44.4 million of cash flow from operations during 2004 and paid down $60.0 million of debt.
On an as-adjusted basis, net income for 2004 increased by $7.9 million, or 20.1%, to $47.2 million from an adjusted $39.3 million for 2003. This adjustment excluded $13.3 million of pre-tax costs ($8.0 million after-tax) related to the company’s debt refinancing and secondary offering of common stock in 2003.