UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
| x | QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Quarterly Period Ended September 30, 2004
OR
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
For the transition period from to
Commission File Number 001-14171
TOTAL LOGISTICS, INC.
(Exact name of registrant as specified in its charter.)
| Wisconsin | 39-1915787 | |
| (State of Incorporation) | (IRS Employer Identification No.) | |
| 700 N. Water Street, Suite 1200, Milwaukee, Wisconsin | 53202 | |
| (Address of principal executive offices) | (Zip Code) | |
Registrant’s telephone number, including area code (414) 291-9000
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). ¨ Yes x No
| Common Stock $0.01 par value | 5,391,864 | |
| (Class) | (Outstanding at November 10, 2004) |
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TOTAL LOGISTICS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
(In thousands except share and per share data)
| September 30, 2004 |
December 31, 2003 |
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| ASSETS: |
||||||||
| Current Assets: |
||||||||
| Cash and cash equivalents |
$ | 1,902 | $ | 2,225 | ||||
| Accounts receivable, net |
46,740 | 28,659 | ||||||
| Unbilled receivables |
5,871 | — | ||||||
| Inventories |
11,719 | 9,355 | ||||||
| Prepaids and other |
3,793 | 3,203 | ||||||
| Total Current Assets |
70,025 | 43,442 | ||||||
| Long-Term Assets: |
||||||||
| Fixed assets, net |
62,034 | 62,058 | ||||||
| Goodwill |
16,202 | 16,202 | ||||||
| Other assets |
3,688 | 2,631 | ||||||
| Total Long-Term Assets |
81,924 | 80,891 | ||||||
| $ | 151,949 | $ | 124,333 | |||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY: |
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| Current Liabilities: |
||||||||
| Current maturities of long-term debt |
$ | 2,296 | $ | 2,792 | ||||
| Line of credit |
5,034 | 2,661 | ||||||
| Accounts payable |
19,513 | 15,436 | ||||||
| Accrued liabilities |
28,039 | 19,658 | ||||||
| Total Current Liabilities |
54,882 | 40,547 | ||||||
| Long-Term Liabilities: |
||||||||
| Long-term debt, less current maturities |
50,334 | 42,932 | ||||||
| Other liabilities |
3,441 | 3,376 | ||||||
| Total Long-Term Liabilities |
53,775 | 46,308 | ||||||
| Total Liabilities |
108,657 | 86,855 | ||||||
| Shareholders’ Equity: |
||||||||
| Preferred stock, par value $.01 per share, 10,000,000 shares authorized, none issued or outstanding |
— | — | ||||||
| Common stock, par value $.01 per share; 50,000,000 shares authorized, 5,379,864 and 5,275,864 issued in 2004 and 2003, respectively |
54 | 53 | ||||||
| Additional paid-in capital |
23,102 | 22,483 | ||||||
| Deferred compensation |
(223 | ) | (98 | ) | ||||
| Accumulated other comprehensive loss |
(407 | ) | (640 | ) | ||||
| Retained earnings |
20,766 | 15,680 | ||||||
| Total Shareholders’ Equity |
43,292 | 37,478 | ||||||
| $ | 151,949 | $ | 124,333 | |||||
See notes to consolidated condensed financial statements
2
TOTAL LOGISTICS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share data)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2004 |
2003 |
2004 |
2003 |
|||||||||||||
| Revenues: |
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| Logistic services |
$ | 71,256 | $ | 53,394 | $ | 192,876 | $ | 152,226 | ||||||||
| Product sales |
21,471 | 17,701 | 60,456 | 50,354 | ||||||||||||
| 92,727 | 71,095 | 253,332 | 202,580 | |||||||||||||
| Costs and Expense: |
||||||||||||||||
| Logistic expenses |
64,555 | 46,649 | 174,595 | 134,868 | ||||||||||||
| Cost of product sales |
16,915 | 14,120 | 47,884 | 41,307 | ||||||||||||
| Depreciation and amortization |
1,791 | 1,952 | 5,116 | 5,780 | ||||||||||||
| Selling, general and administrative expenses |
5,235 | 4,931 | 15,216 | 13,746 | ||||||||||||
| 88,496 | 67,652 | 242,811 | 195,701 | |||||||||||||
| Earnings from Operations: |
4,231 | 3,443 | 10,521 | 6,879 | ||||||||||||
| Other Expenses: |
||||||||||||||||
| Interest expense, net |
(671 | ) | (707 | ) | (1,989 | ) | (2,222 | ) | ||||||||
| Other expense |
— | — | (55 | ) | — | |||||||||||
| (671 | ) | (707 | ) | (2,044 | ) | (2,222 | ) | |||||||||
| Earnings before income taxes |
3,560 | 2,736 | 8,477 | 4,657 | ||||||||||||
| Income tax provision |
1,424 | 1,168 | 3,391 | 2,009 | ||||||||||||
| Net earnings |
$ | 2,136 | $ | 1,568 | $ | 5,086 | $ | 2,648 | ||||||||
| Basic net earnings per share |
$ | 0.40 | $ | 0.30 | $ | 0.95 | $ | 0.50 | ||||||||
| Diluted net earnings per share |
$ | 0.38 | $ | 0.28 | $ | 0.91 | $ | 0.48 | ||||||||
| Average number of shares outstanding |
5,379,864 | 5,275,864 | 5,348,266 | 5,273,875 | ||||||||||||
| Diluted number of shares outstanding |
5,606,542 | 5,509,397 | 5,591,009 | 5,523,021 | ||||||||||||
See notes to consolidated condensed financial statements.
3
TOTAL LOGISTICS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENT OF SHAREHOLDERS’ EQUITY
NINE MONTHS ENDED SEPTEMBER 30, 2004
(Unaudited)
(In thousands, except share amounts)
| Common Stock |
Additional Paid-In Capital |
Deferred Compensation |
Accumulated Other Comprehensive Gain (Loss) |
Retained Earnings |
Current Year Comprehensive Income | |||||||||||||||
| Balance, December 31, 2003 |
$ | 53 | $ | 22,483 | $ | (98 | ) | $ | (640 | ) | $ | 15,680 | ||||||||
| Exercise of options to purchase 104,000 shares of common stock |
1 | 464 | — | — | — | |||||||||||||||
| Issuance of 8,124 shares of restricted stock |
— | 155 | (155 | ) | — | — | ||||||||||||||
| Vesting of restricted stock |
30 | |||||||||||||||||||
| Change in fair value of interest rate swaps, net of tax expense of $156 |
233 | 233 | ||||||||||||||||||
| Net Earnings |
5,086 | 5,086 | ||||||||||||||||||
| Total Comprehensive Income |
$ | 5,319 | ||||||||||||||||||
| Balance, September 30, 2004 |
$ | 54 | $ | 23,102 | $ | (223 | ) | $ | (407 | ) | $ | 20,766 | ||||||||
See notes to consolidated condensed financial statements
4
TOTAL LOGISTICS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
| Nine Months Ended September 30, |
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| 2004 |
2003 |
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| CASH FLOWS FROM OPERATING ACTIVITIES: |
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| Net earnings |
$ | 5,086 | $ | 2,648 | ||||
| Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: |
||||||||
| Depreciation and amortization |
5,116 | 5,780 | ||||||
| Gain on sale of fixed assets |
(17 | ) | (95 | ) | ||||
| Loss on equity investment |
55 | — | ||||||
| Deferred compensation |
30 | 10 | ||||||
| Payment-in-kind interest |
74 | 70 | ||||||
| Changes in assets and liabilities: |
||||||||
| Accounts receivable |
(18,081 | ) | (4,322 | ) | ||||
| Inventories |
(2,364 | ) | 90 | |||||
| Unbilled receivables |
(5,871 | ) | — | |||||
| Other assets |
(1,710 | ) | 197 | |||||
| Accounts payable, accrued liabilities and other liabilities |
12,674 | 2,574 | ||||||
| Net cash (used in) provided by operating activities |
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