MARIETTA, Ohio, June 10, 2004 (PRIMEZONE) -- Gasel Transportations Lines, Inc. (OTCBB:GSEL), currently operating as a debtor-in-possession under Chapter 11 Reorganization, today announced results for fiscal first quarter 2004. For the three months ended March 31, 2004, freight income revenue totaled $3,605,729 and training school revenue was $163,067 for combined revenue of $3,768,796, representing a 3.73% increase from prior year combined revenue of $3,634,496 and the second sequential year-year increase in the most recent eight reporting periods. Combined revenue for the nine month period ended March 31, 2004 was $10,796,404; a 2.41% increase over $10,541,872 reported for the same nine month period one year prior. The revenue increase is largely a result of increased freight demand, higher prices and the use of additional owner/operators that increased supply without a subsequent increase in associated costs.
Net Income for the period increased 106.96% to $50,017 from year prior net loss of ($719,130). Earnings per share (EPS) for Q1 2004 were $0.005, while combined net loss for the nine month period ended March 31, 2004 totaled ($856,689) a 62.69% improvement over net loss of ($2,295,983) for the same nine month period one year prior.
Total Operating Expenses for the first quarter of 2004 decreased $64,349, or 10.9%, to $525,475 from $589,824 in the Q1 2003, indicative of the Company's staff reductions and consolidation of operations to a single terminal in Marietta, OH. Reorganization items contributed $343,529 to profits from extinguished debt and $8,000 in expenses from professional and bankruptcy fees for the period.
Mike Post, President & CEO commented that: "We are elated that the combined effects of the reorganization and improved economy have helped us to achieve another sequential quarter of growth and report our first profitable period in over two and a half years. We remain committed to working with the Court and our debt holders to resolve our reorganization proceedings and to extend the gains that we've been able to achieve while further capitalizing on the steady economic improvements that have helped to stimulate our operations. Our diligent cost-cutting and consolidating efforts have decreased our operating expenses and should further augment Gasel's ability to conclude its reorganization and generate shareholder value through steady improvements in operations and revenues."
Gasel Transportation Lines, Inc., based in Marietta, 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
ASSETS March 31, 2004
--------------------------------------------------- ----------------
(Unaudited)
Current Assets
--------------
Cash & Cash Equivalents $ 52,951
Accounts Receivable-Trade, Net of amounts
Sold With Recourse of $1,127,552 and
Allowance of $50,000 528,261
Inventory 102,177
Prepaid Expenses and Other Current Assets 156,037
----------------
Total Current Assets 839,426
Property and Equipment
----------------------
Land and Buildings 770,054
Tractors 11,601,671
Trailers 2,944,977
Shop Equipment 408,962
Office Equipment 228,105
----------------
15,953,769
Less Accumulated Depreciation 10,896,921
----------------
Net Property and Equipment 5,056,848
Other Assets
------------
Other 7,683
----------------
Total Other Assets 7,683
----------------
TOTAL ASSETS $ 5,903,957
================
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) March 31, 2004
-------------------------------------------------- ----------------
(Unaudited)
Current Liabilities
-------------------
Cash Overdraft $ 134,423
Accounts Payable-Trade 275,821
Accrued Contract Labor and Other Expenses 276,579
----------------
Total Current Liabilities 686,823
Liabilities Subject to Compromise 8,310,103
--------------------------------- ----------------
Total Liabilities 8,996,926
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 (5,771,403)
Less: Treasury Stock, at cost, 7,900 shares (17,833)
----------------
Total Stockholders' Equity (Deficit) (3,142,969)
----------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ 5,903,957
================
GASEL TRANSPORTATION LINES, INC.
STATEMENTS OF CONSOLIDATED OPERATIONS
Three Months Ended March 31,
----------------------------
2004 2003
----------- ----------
(Unaudited)
Revenues
--------
Freight Income $ 3,605,729 $3,494,125
Training School Revenue 163,067 140,371
----------- ----------
3,768,796 3,634,496
Cost of Revenue 3,525,646 3,342,117
----------- ----------
Gross Profit 243,150 292,379
Operating Expenses
------------------
Impairment Losses -- 81,145
Garage Expenses 109,167 79,394
General and Administrative Expenses 416,308 510,430
----------- ----------
525,475 670,969
Operating Income (Loss) (282,325) (378,590)
Other Income (Expense)
----------------------
Other Income 6,963 6,586
Interest Income 17 5,876
Interest Expense, Net
(Contractual Interest of $166,920 for
the three months ended March 31, 2004 (18,167) (310,045)
Loss on Asset Disposals -- (42,957)
----------- ----------
(11,187) (340,540)
(Loss) from Operations
Before Reorganization
Items and Tax Provision (293,512) (719,130)
Reorganization Items -
----------------------
Professional and Bankruptcy Fees 8,000 --
Extinguishment of Debt (351,529)
----------------------
(343,529) --
Income (Loss) Before Income Taxes 50,017 (719,130)
Provision for Income Taxes -- --
----------- ----------
Net Income (Loss) $ 50,017 $ (719,130)
=========== ==========
Basic Income (Loss) Per Share $ .005 $ (.096)
=========== ==========
Diluted (Loss) Per Share $ .005 $ (.096)
=========== ==========
Weighted Average Common Shares
Outstanding:
Basic 9,870,066 7,456,356
=========== ==========
Diluted 10,008,782 7,456,356
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