MARIETTA, Ohio, May 31, 2005 (PRIMEZONE) -- Gasel Transportations Lines, Inc. (OTCBB:GSEL) announced results for fiscal Q1, 2005. The financial results include the following highlights: for the three months ended March 31, 2004, freight income revenue totaled $3,461,880 and training school revenue was $178,385 for combined revenue of $3,640,265, representing a 3.41% decline from prior year combined revenue of $3,768,796. Management attributes this slight decline to a decrease in the number of trucks that the Company was operating, as compared to the same period last year. The fleet reduction was a strategic action taken to shed excessive operating costs, decrease debt, and improve driver retention.
Net Income and EPS for Q1, 2005 rose by 18.43% from $50,017 or $0.01 per common share in fiscal Q1, 2004 to $59,233 or $0.01 per common share during fiscal Q1, 2005. Total Operating Expenses for the third quarter of 2004 were reduced by 12.03% from $525,475 to $462,217. 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 downsized 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.
Mike Post, Gasel's President & CEO commented that: "We are pleased with our recent financial results. We would have liked to see revenues begin to respond in a more concerted fashion, but the Company's financial position is the strongest in recent years. We continue to see substantial reductions in operating expenses and now that the reorganization proceedings are mostly behind us, we expect to translate this expense reduction to increase Net Income and shareholder value. It is particularly encouraging to see the Company generate approximately the same amount of revenue compared to last year with a smaller fleet, which management believes is further evidence of our improved productivity. The Company is well-positioned to take advantage of its renewed financial strength and we intend to execute an aggressive strategy of growth to ensure the long-term viability of the Company."
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.
(Post Confirmation Debtor)
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
March 31
2005
----------
ASSETS
Current Assets
--------------
Cash and Cash Equivalents 62,054
Accounts Receivable-Trade, Net of Amounts Sold
With Recourse of $1,368,206 and
Allowance of $30,000 464,481
Inventory 99,485
Prepaid Expenses and Other Current Assets 196,111
----------
Total Current Assets 685,254
Property and Equipment
----------------------
Land and Buildings 770,054
Tractors 1,127,575
Trailers 372,000
Shop Equipment 125,548
Office Equipment 21,590
----------
2,416,767
Less Accumulated Depreciation 315,319
----------
Net Property and Equipment 2,101,448
Other Assets
------------
Other 21,183
----------
Total Other Assets 21,183
----------
TOTAL ASSETS 2,944,762
==========
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
Current Liabilities
-------------------
Cash Overdraft 164,393
Notes Payable 66,200
Accounts Payable-Trade 245,830
Accrued Contract Labor and Other Expenses 404,000
----------
Current Portion - Long Term Debt 614,819
Total Current Liabilities 1,495,242
Long Term Debt - Net of Current Portion 2,715,075
----------
Total Liabilities 4,210,317
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) (3,893,989)
Less: Treasury Stock, at cost, 7,900 shares (17,833)
----------
Total Stockholders' (Deficit) (1,265,555)
----------
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) 2,944,762
==========
GASEL TRANSPORTATION LINES, INC.
(Post Confirmation Debtor)
AND ITS SUBSIDIARIES
STATEMENTS OF CONSOLIDATED OPERATIONS
Three Months Ended March 31, 2005 and 2004
2005 2004
----------- -----------
(Unaudited) (Unaudited)
Revenues
--------
Freight Income $ 3,461,880 $ 3,605,729
Training School Revenue 178,385 163,067
----------- -----------
3,640,265 3,768,796
----------- -----------
Cost of Revenue 3,189,038 3,525,646
----------- -----------
Gross Profit 451,227 243,150
Operating Expenses
------------------
Garage Expenses 76,839 109,167
General and Administrative Expenses 385,378 416,308
462,217 525,475
Operating (Loss) (10,990) (282,325)
Other Income (Expense)
----------------------
Other Income 65,308 6,963
Interest Income 13 17
Interest Expense, Net (Excludes
contractual interest of $166,920 for
the three months
ended March 31, 2004 (37,098) (18,167)
----------- -----------
28,223 (11,1687)
Income (Loss) From Operations Before
Reorganization Items and Tax Provision 17,233 (293,512)
Reorganization Items
--------------------
Professional and Bankruptcy Fees 8,000 8,000
Extinguishment of Debt (50,000) (351,529)
----------- -----------
(42,000) (343,529)
Income From Operations Before
Tax Provision 59,233 50,017
Provision for Income Taxes -- --
----------- -----------
Net Income $ 59,233 $ 50,017
Basic Income Per Share $ .006 $ .006
Diluted Income Per Share $ .006 $ .006
Weighted Average Common Shares Outstanding:
Basic 9,870,066 9,870,066
Diluted 10,008.782 9,870,066