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Pacer International Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: July 31, 2012 06:13AM
Pacer International Inc. (PACR) filed Quarterly Report for the period ended 2012-06-30. Pacer International, Inc. has a market cap of $143 million; its shares were traded at around $4.06 with a P/E ratio of 14 and P/S ratio of 0.1.
Highlight of Business Operations:Our results in the first half of 2012 reflect the successes and challenges that we are experiencing in our intermodal and logistics segments in the current economic climate. Total intermodal revenue improved $8.3 million or 1.4% for the six months ended June 30, 2012 compared to the 2011 period, but intermodal income from operations declined by $4.0 million. However, excluding the impact of the previously announced reduction in volume from an ocean carrier customer, intermodal revenues grew by 10.7% with intermodal income from operations improving by 7.3% year on year. In particular, revenues in our domestic intermodal business were very strong, up 18.1%, with 9.9% volume growth and 3.5% pricing improvement. International and drayage revenues were down a combined 17.1% due primarily to a 19.0% decline in volumes attributed to competitive pressures and the continued softening of the global shipping market which affected the number of drayage shipments we hauled. Intermodal segment gross margin decreased by $7.5 million and gross margin percentage decreased by 1.4% primarily due to increased costs from our rail providers over and above what we were able to pass onto our customers. While intermodal gross margin is expected to improve during the second half of 2012 through revenue growth and operating efficiencies, the intermodal gross margin percentage is expected to remain relatively unchanged or slightly increase throughout the remainder of the year.
Net cash used in operating activities was $10.3 million for the first six months of 2012 primarily due to the lower income from operations in the 2012 period and higher accounts receivables balances at June 30, 2012 as compared to December 31, 2011, reflecting domestic intermodal revenue growth in the first half of 2012. We were debt free at June 30, 2012, and ended the quarter with $88.2 million of borrowing capacity.
Revenues. Revenues decreased $18.0 million, or 4.7%, for the three months ended June 30, 2012 compared to the three months ended June 30, 2011. Excluding the revenue impact of the previously announced volume reduction from an ocean carrier customer that transitioned its business directly to the railroad ($22.9 million in the second quarter of 2011), revenues increased $4.9 million or 1.3%.
Revenues. Revenues decreased $30.5 million, or 4.1%, for the six months ended June 30, 2012 compared to the six months ended June 30, 2011. Excluding the revenue impact of the previously announced volume reduction from an ocean carrier customer that transitioned its business directly to the railroad ($49.1 million in the first half of 2011), revenues increased $18.6 million or 2.7%.
Total intermodal revenue increased $8.3 million, or 1.4%, from the 2011 period to $591.7 million. Excluding the revenue impact of the previously announced reduced volumes from an ocean carrier customer that transitioned its business directly to the railroad, intermodal revenues increased $57.4 million or 10.7%. Within intermodal, domestic revenues were up 18.1% while international and drayage revenues were down a combined 17.1%. Domestic revenues rose from higher volume of 9.9%, improved pricing of 3.5%, higher fuel surcharges of 3.3% and improved mix of 1.4%. For the six month period, revenues associated with automotive customers across all intermodal lines of business represented 45.6% of intermodal revenues. Our big box equipment turns remained consistent at 1.8x in both the 2011 period and 2012 period. International and drayage revenues decreased due primarily to a 19.0% decline in volumes attributed to competitive pressures and the continued softening of the global shipping market.
Stocks Discussed: PACR,