MARIETTA, Ohio, Nov. 26, 2003 (PRIMEZONE) -- Gasel Transportations Lines, Inc., (OTCBB:GSEL) currently operating as a debtor in possession under Chapter 11 Reorganization, today announced results for fiscal third quarter 2003. For the three months ended September 30, 2003, freight income revenue totaled $3,303,539 and training school revenue was $109, 750 for combined revenue of $3,413,289, representing a 3.09% decline from prior year combined revenue of $3,522,063. Combined revenue for the nine month period ended Sept. 30, 2003 of $10,453,844 was 7% lower than the $11,257,485 recorded for the same period one year prior. The revenue decline is largely a result of the Company's downward fleet size that was adjusted to meet depressed freight demand commensurate with the sluggish domestic economy over the past year, particularly in manufacturing and "dry freight" sectors.
Net loss narrowed by 19.07% to ($330,619) from year prior results of ($411,721). Earnings per share EPS for Q3, 2003 were ($0.033). Net loss for the nine month period ended Sept. 30, 2003 totaled ($2,246,079) as compared to net loss of ($678,167) for the same nine month period one year prior.
Total Operating Expenses for the third quarter of 2003 were reduced by 20.12% to $462,734 from $579,313 in the third quarter of 2002, indicative of the Company's down sizing and intense cost cutting actions. Reorganization costs totaled $69,304 for the quarter and included $42,000 of professional and bankruptcy fees and $27,304 loss on disposition of Assets-post-Petition.
The loss for the third quarter 2003 was significantly lower than the loss incurred during the pre-petition period this past year (including: 4th quarter 2002, 1st and 2nd quarters 2003) indicative of the Company's success with the implementation of a comprehensive economic recovery plan, developed and initiated in June 2003.
Mike Post, President & CEO commented that: "We are quite pleased with our progress for the third quarter of 2003. The ongoing reorganization has certainly strained the company, but in spite of our current status, we significantly reduced our third quarter net loss by over 19% compared to the same period last year, and hugely cut the loss compared to the prior two quarters of this year. In addition, we acquired substantial new contracts and changed our sales mix to increase revenues and equipment efficiencies, and recent financial results suggest that those initiatives are translating to the bottom line. Recently acquired sales contracts with major national customers are expected to continue to have a significant positive impact our top line revenues as well as improve our operating cost through better equipment and driver productivity. We are also pleased to see a big turnaround in external factors in the transportation industry. The overall improvement in the economy and commercial purchasing is revitalizing demand for freight shipping services and Gasel is firmly positioned to meet the increased demand from current and future customers. We have also made significant progress in our reorganization process and continue to receive excellent cooperation from our creditors. Hopefully, Gasel will achieve mutually agreeable and final terms in the near future with our creditors, and emerge a much more effective Company with excellent prospects for future growth."
Gasel Transportation Lines, Inc., based in Marietta, Ohio, with a terminal and sales offices in Columbus, Ohio, is a national long and regional haul truckload common and contract carrier, and provides logistic services throughout the continental United States and Canada. For more information, visit www.gasel.net.
This press release may make forward-looking statements that are subject to various uncertainties and risks that could affect their outcome. Factors that could cause or contribute to differences include, but are not limited to, economic conditions, product demand and sales, competition and competitors' actions, and changes in the transportation industry. Please refer to the company's SEC filings, including Forms 10K and 10Q for a more detailed discussion of the risks.
GASEL TRANSPORTATION LINES, INC.
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
September 30,
2003
------------
(Unaudited)
ASSETS
Current Assets
--------------
Cash and Cash Equivalents $ 24,371
Accounts Receivable-Trade, Net of Amounts Sold With
Recourse of $1,096,053 and Allowance of $50,000 431,985
Inventory 166,402
Prepaid Expenses and Other Current Assets 153,219
----------
Total Current Assets 775,977
Property and Equipment
----------------------
Land and Buildings 770,054
Tractors 11,659,621
Trailers 2,979,005
Shop Equipment 408,285
Office Equipment 218,820
----------
16,035,785
Less Accumulated Depreciation 10,172,391
----------
Net Property and Equipment 5,863,394
Revenue Equipment Held for Sale 1,163,253
-------------------------------
Other Assets
Other 7,683
----------
Total Other Assets 7,683
----------
TOTAL ASSETS $ 7,810,307
==============
September 30,
2003
--------------
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
-------------------
Cash Overdraft $ 88,935
Accounts Payable-Trade 333,672
Accrued Contract Labor and Other Expenses 187,687
----------
Total Current Liabilities
Not Subject to Compromise 610,294
Liabilities Subject to Compromise 9,716,498
--------------------------------- ----------
Total Liabilities 10,326,792
Redeemable Warrants 50,000
-------------------
Stockholders' Equity (Deficit)
Common Stock, no par value,
10,000,000 shares authorized,
9,877,966 issued and 9,870,066 outstanding 2,543,481
Additional Paid in Capital 102,786
Accumulated (Deficit) (5,194,919)
Less: Treasury Stock,at cost, 7,00 shares (17,833)
------------
Total Stockholders' Equity (Deficit) (2,566,485)
------------
TOTAL LIABLITIES AND STOCKHOLDERS'EQUITY (DEFICIT) $ 7,810,307
============
GASEL TRANSPORTATION LINES, INC.
STATEMENTS OF CONSOLIDATED OPERATIONS
Three Months Ended Nine Months Ended
------------------------ --------------------------
Sept 30, Sept 30, Sept 30, Sept 30,
2003 2002 2003 2002
---------- ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
---------- ------------ ------------ ------------
Revenues
--------
Freight Income $3,303,539 $ 3,407,037 $ 10,098,847 $ 10,879,264
Training School
Revenue 109,750 115,026 354,997 378,221
---------- ------------ ------------ ------------
3,413,289 3,522,063 10,453,844 11,257,485
Cost of Revenue 3,206,320 3,131,111 10,061,482 9,623,415
---------- ------------ ------------ ------------
Gross Profit 206,969 390,952 392,362 1,634,070
Operating Expenses
------------------
Garage Expenses 104,462 86,047 270,915 239,513
General and
Administrative
Expenses 358,272 493,266 1,304,606 1,391,829
Impairment Loss -- -- 434,583 --
---------- ------------ ------------ ------------
462,734 579,313 2,010,104 1,631,342
Operating Income
(Loss) (255,765) (188,361) (1,617,742) 2,728
Other Income
(Expense)
----------------
Interest Income 17 4,493 8,814 5,168
Other Income 13,421 7,147 31,454 90,550
Gain (Loss) on
Disposition Of
Assets-Pre-
Petition -- -- (42,957) 12,075
Interest Expense,
Net (Contractual
Interest of
$266,481 and
$878,103 for
the three and
nine months
ended September
30, 2003,
respectively) (18,988) (235,000) (525,014) (788,688)
---------- ------------ ------------ ------------
(5,550) (223,360) (527,703) (680,895)
(Loss) from
Operations
Before
Reorganization
Items and Tax
Provision (261,315) (411,721) (2,145,445) (678,167)
Reorganization Items
--------------------
Professional
and Bankruptcy
Fees 42,000 -- 73,330 --
Loss on
Disposition Of
Assets-Post-
Petition 27,304 -- 27,304 --
---------- ------------ ------------ ------------
69,304 -- 100,634 --
(Loss) Before
Tax Provision (330,619) (411,721) (2,246,079) (678,167)
---------- ------------ ------------ ------------
Provision for
Income Taxes -- -- -- --
---------- ------------ ------------ ------------
Net Income (Loss) $(330,619) $ (411,721) $(2,246,079) $ (678,167)
========== ============ ============ ============
Basic (Loss)
Per Share $ (.033) $ (.170) $ (.248) $ (.281)
========== ============ ============ ============
Diluted (Loss)
Per Share $ (.033) $ (.170) $ (.248) $ (.281)
========== ============ ============ ============
Weighted Average
Common Shares
Outstanding:
Basic 9,870,066 2,420,555 9,071,455 2,410,286
========== ============ ============ ============
Diluted 9,870,066 2,420,555 9,071,455 2,410,286
========== ============ ============ ============
See accompanying notes to consolidated financial statements.