MARIETTA, Ohio, Jan. 10, 2005 (PRIMEZONE) -- Gasel Transportations Lines, Inc. (OTCBB:GSEL), operating as a Debtor in Possession under Chapter 11 Reorganization, announced results for fiscal Q3, 2004. The financial results as filed in Form 10Q with the SEC, includes the following highlights: for the three months ended September 30, 2004, freight income revenue totaled $3,045,688 and training school revenue was $95,399 for combined revenue of $3,141,087, representing a 7.97% decline from prior year combined revenue of $3,413,289. Combined revenue for the nine month period ended Sept. 30, 2004 of $10,335,418 was 1.13% lower than the $10,453,844 recorded for the same nine month period one year prior. The decrease in revenue was primarily due to a decrease (approximately 25 %) in the number of trucks the Company was operating during this period of 2004 compared to the same period in 2003. The Company turned in approximately 50% of its tractors and trailers in the first and third quarters of 2004 to shed excessive operating costs, reduce its debt, and improve driver retention. To compensate for the reduction in company owned equipment, during 2004 management has been consistently adding leased owner/operator equipment to replace it.
Net Income and EPS for the three-month period rose by 110.26% from a net loss of ($330,619) or ($.03) per common share in fiscal Q3, 2003 to $33,921 or $0.003 per common share during fiscal Q3, 2004. Net Income and EPS for the nine month period ended Sept. 30, 2004 totaled $134,129 and $0.01 per common share as compared to a net loss and EPS of ($2,246,079) and ($0.23) per common share for the same nine month period one year prior.
Total Operating Expenses for the third quarter of 2004 were reduced by 12.1% to $406,762 from $462,734, one-year prior. The reduction in Operating Expenses was greater than the percentage decrease in freight revenues, and was the result of a reduction in the general and administrative expenses compared to the prior year as the Company down sized its personnel and associated costs as a compensating measure to declining revenues and from a reduction in garage expenses as the Company was operating fewer of its own tractors and trailers than in the prior year. Reorganization costs totaled a gain of $162,009 for the period and included $10,500 in professional and bankruptcy fees and a one-time $172,509 gain from the extinguishment of certain debt.
Mike Post, Gasel's President & CEO commented that: "We are very pleased with our recent financial results. We have revitalized the Company during 2004 with a more concerted focus on our local markets and core business while successfully raising rates and adding services to existing operating divisions. There has been a big turnaround in external factors in the transportation industry as well, and I believe that we are poised to expand our operations, achieve greater levels of sales and generate returns to our investors. The reorganization proceedings continue to move in a very positive direction and the improved financial condition of the Company and consistently positive results over the past few sequential quarters is indicative of the progress that we have made with our creditors and the bankruptcy court. We believe that the overall improvement in the economy and commercial purchasing continues to increase demand for freight shipping services and that Gasel is firmly positioned to meet the increased demand from current and future customers. We feel confident that Gasel will emerge from the bankruptcy courts in the very near future and continue to improve upon the gains that we've recently achieved."
Gasel Transportation Lines, Inc., based in Marietta, Ohio, with a flatbed and automotive division terminal in Ravenswood, West Virginia, 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.
(Debtor in Possession)
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
Sept 30,
2004
------------
(Unaudited)
ASSETS
Current Assets
Cash and Cash Equivalents $ 43,111
Accounts Receivable-Trade, Net of Amounts
Sold With Recourse of $1,206,631
and Allowance of $30,000 349,395
Inventory 102,177
Prepaid Expenses and Other Current Assets 190,571
------------
Total Current Assets 685,254
Property and Equipment
------------
Land and Buildings 770,054
Tractors 7,641,748
Trailers 2,809,249
Shop Equipment 408,962
Office Equipment 228,105
------------
11,858,118
Less Accumulated Depreciation 8,469,064
------------
Net Property and Equipment 3,389,054
Revenue Equipment - Held for Sale 1,212,117
------------
Other Assets
Other 21,183
------------
Total Other Assets 21,183
------------
TOTAL ASSETS $ 5,307,608
============
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
Current Liabilities
Cash Overdraft $ 95,372
Notes Payable 56,068
Accounts Payable-Trade 207,107
Accrued Contract Labor and Other Expenses 297,035
------------
Total Current Liabilities
Not Subject to Compromise 655,582
Liabilities Subject to Compromise 7,660,884
------------
Total Liabilities 8,316,466
Redeemable Warrants 50,000
------------
Stockholders' (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) (5,687,292)
Less: Treasury Stock, at cost, 7,900 shares (17,833)
------------
Total Stockholders' (Deficit) (3,058,858)
------------
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) $ 5,307,608
============
GASEL TRANSPORTATION LINES, INC.
(Debtor in Possession)
AND ITS SUBSIDIARIES
STATEMENTS OF CONSOLIDATED OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
---------------------- ------------------------
Sept 30, Sept 30, Sept 30, Sept 30,
2004 2003 2004 2003
---------- ---------- ----------- -----------
Revenues
Freight Income $3,045,688 $3,303,539 $10,002,770 $10,098,847
Training School
Revenue 95,399 109,750 332,648 354,997
---------- ---------- ----------- -----------
3,141,087 3,413,289 10,335,418 10,453,844
Cost of Revenue 2,839,539 3,206,320 9,424,898 10,061,482
---------- ---------- ----------- -----------
Gross Profit (Loss) 301,548 206,969 910,520 392,362
Operating Expenses
Garage Expenses 88,549 104,462 301,960 270,915
General and
Administrative
Expenses 318,213 358,272 1,058,442 1,304,606
Impairment Loss -- -- -- 434,583
---------- ---------- ----------- -----------
406,762 462,734 1,360,402 2,010,104
Operating Income
(Deficit) (105,214) (255,765) (449,882) (1,617,742)
Other Income (Expense)
---------------------
Interest Income 13 17 40 8,814
Other Income 4 13,421 9,467 31,454
Gain(Loss)-Sale of
Assets -- -- -- (42,957)
Interest Expense,
Excludes Contractual
Interest of $161,414 and
$490,948 for the Three
and Nine Months Ended
Sept 30, 2004, and
$266,481 and $878,103 for
the Three Months and
Nine Months Ended
Sept 30, 2003,
Respectively (22,891) (18,988) (60,061) (525,014)
---------- ---------- ----------- -----------
(22,874) (5,550) (50,554) (527,703)
(Loss) from Operations
Before Reorganization
Items and Tax
Provision (128,088) (261,315) (500,436) (2,145,445)
Reorganization Items
--------------------
Professional and
Bankruptcy Fees (10,500) (42,000) (23,500) (73,330)
Loss on Disposition of
Assets-Post Petition -- (27,304) -- (27,304)
Extinguishment of
Debt 172,509 -- 658,065 --
---------- ---------- ----------- -----------
162,009 (69,304) 634,565 (100,634)
Income(Loss)from
Operations Before
Tax Provision 33,921 (330,619) 134,129 (2,246,079)
Provision for
Income Taxes -- -- -- --
---------- ---------- ----------- -----------
Net Income (Loss) $ 33,921 $ (330,619) $ 134,129 $(2,246,079)
========== ========== =========== ===========
Basic Income (Loss)
per Share $ .003 $ (.033) $ .014 $ (.248)
========== ========== =========== ===========
Diluted Income
(Loss) Per Share $ .003 $ (.033) $ .014 $ (.248)
========== ========== =========== ===========
Weighted Average
Common Shares
Outstanding:
Basic 9,870,066 9,870,066 9,870,066 9,071,455
========== ========== =========== ===========
Diluted 9,969,687 9,870,066 9,969,778 9,071,455
========== ========== =========== ===========