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Pacer International Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: October 26, 2012 04:34PM

Pacer International Inc. (PACR) filed Quarterly Report for the period ended 2012-09-30. Pacer International, Inc. has a market cap of $141.8 million; its shares were traded at around $3.73 with a P/E ratio of 13.9 and P/S ratio of 0.1.



Highlight of Business Operations:

Revenues. Revenues decreased $26.9 million, or 7.2%, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011. Excluding the revenue impact of the previously announced volume reduction from an ocean carrier customer that transitioned its western U.S. intermodal business directly to the railroad ($24.1 million in the third quarter of 2011), revenues decreased $2.8 million or 0.8%.

Total intermodal revenue decreased $11.2 million, or 3.7%, from the 2011 period to $291.0 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 $12.9 million or 4.6%. Within intermodal, domestic revenues rose 8.9% from higher volume of 6.6%, improved pricing of 1.3% and improved mix of 1.0%. For the period, revenues associated with automotive customers across all intermodal lines of business represented 46.4% of intermodal revenues, compared to 40.1% in the 2011 period. Our big box equipment turns stayed consistent at 1.7x in the 2012 and 2011 periods. International and drayage revenues, excluding the ocean carrier customer reduction discussed above, decreased a combined 14.0% due primarily to a 24.6% decline in volumes attributed to competitive pressures and the continued softening of the global shipping market.

Revenues. Revenues decreased $57.4 million, or 5.1%, for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011. Excluding the revenue impact of the previously announced volume reduction from an ocean carrier customer that transitioned its western U.S. intermodal business directly to the railroad ($73.2 million for the first nine months of 2011), revenues increased $15.8 million or 1.5%.

Total intermodal revenue decreased $2.9 million, or 0.3%, from the 2011 period to $882.7 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 $70.3 million or 8.7%. Within intermodal, domestic revenues rose 14.9% from higher volume of 8.8%, improved pricing of 2.6%, higher fuel surcharges of 2.2% and improved mix of 1.3%. For the nine month period, revenues associated with automotive customers across all intermodal lines of business represented 45.9% of intermodal revenues, compared to 39.4% in the 2011 period. Our big box equipment turns remained consistent at 1.7x in both the 2011 period and 2012 period. International and drayage revenues, excluding the ocean carrier customer reduction discussed above, decreased a combined 16.1% due primarily to a 20.7% decline in volumes attributed to competitive pressures and the continued softening of the global shipping market.

As of September 30, 2012, $83.0 million was available under the 2010 Credit Agreement pursuant to the borrowing base formula, net of $11.6 million of outstanding letters of credit. Starting in 2013, under our new cross-border agreement with UP discussed above, available borrowings are expected to decrease reflecting the reduction in revenues and related receivables related to the new agreement. Assuming that the new agreement had been in place during 2012, on a pro forma basis the amount of available borrowings under the 2010 Credit Agreement at September 30, 2012 would have approximated $70 million, net of the outstanding letters of credit. Notwithstanding the expected lower borrowing base beginning in 2013, we believe that our cash, cash flow from operations and borrowings available under the 2010 Credit Agreement will remain sufficient to meet our cash needs for at least the next twelve months.

Read the The complete Report



Stocks Discussed: PACR,
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