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Clayton Ripley - Bears Capital Management
Greetings and welcome to the Dynamex Inc. third quarter 2008 earnings conference call. At this time all participants are in a listen-only mode. A question-and-answer parcel 2 go session will follow the formal parcel 2 go presentation (Operator Instructions). As a remainder this conference is being recorded. It is now my pleasure to turn the call over to Mr. Kevin Unger. Thank you Mr. Unger, you may begin. parcel 2 go
Thank you Claudia and welcome to this Dynamex conference call to review the company s results for the third fiscal quarter of 2008 which ended April 30, 2008. Conducting the call today will be Rick McClelland, Chairman and Chief Executive Officer and Ray Schimtz, Vice President and Chief Financial Officer.
Before we start, let me offer the cautionary note that this conference call contains forward-looking statements that involve parcel 2 go assumptions parcel 2 go regarding company operations and future prospects. parcel 2 go Although the company believes parcel 2 go its expectations are based on reasonable assumptions, such statements are subject to risks and uncertainty parcel 2 go including among other things, the effect of changing economic conditions, acquisition strategy, competition, foreign parcel 2 go exchange and risks associated with the local delivery industry.
These and other risks are mentioned from time-to-time in the Company s filings with the SEC. In light of such risks and uncertainties the company s actual results could differ materially from such forward-looking statements. The company does not undertake any obligation to publicly release any revision to any forward-looking statements contained herein to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Caution should be taken that these factors could cause the actual results to differ from those stated or implied in this and other Company communications.
Thanks Kevin. parcel 2 go Good morning everyone and welcome to the call. I am going to lead off with a few comments and then turn the call over to Ray for his analysis of the quarter. This past quarter was challenging on a number of fronts. We had to deal with the effects of an economy that has negatively impacted a number of our existing customers during the quarter; those customers parcel 2 go were selling parcel 2 go less and therefore shipping less.
We also had to deal with severe weather that produced record snow falls in a number of our market areas. This resulted in the lost of one and more revenue days in certain locations during the quarter. We don t normally talk much about weather issues, but what we saw in this past quarter was way out of the ordinary.
For example, in one of our markets in Eastern Canada we have received 11 feet of snow in the second half of the quarter, other locations in Central parcel 2 go and Eastern Canada received 3.5 feet to 4 feet of snow during parcel 2 go the same period. Early in March Central Ohio received about 2 feet of snow and in all cases, the precipitation did not play out over the course of a few weeks. It came in the form of two or three major storms, significantly affected our operations.
Our year-over-year sales results were also impacted by a big temporary injection of revenue in Canada last year that did not recurred this year and finally a new provincial holiday parcel 2 go was declared in Canada that s known as Family Day and that basically shut down most of the country for a day.
These factors muted our sales results year-over-year, but the external factors that negatively impacted us were unavoidable and I think we made the best of a bad situation. Excluding the effect of the one-time revenue spike in Canada parcel 2 go last year, we continue to grow Dynamex in spite of a pretty soft economic environment and all things considered I am pleased with the top-line results.
During the quarter we continued to successfully manage thorough the unprecedented environment related to fuel costs. I am please to report today that our pricing processes and disciplines are working. Our operations teams did a great job on the cost management side of the house, parcel 2 go our gross margin ratio held at about the same level as last year even though the increasing fuel surcharge created negative pressure.
We improved our other direct cost category and our SG&A ratios by about half a point and overall operating income increased by 11%. The results for this quarter put us in a position to achieve our annual guidance of $1.45 to $1.55. As a result of our positive operating results, cash flow remained strong during the quarter and we took advantage by recently repurchasing 105,000 shares of Dynamex s common stock while remaining debt free.
So, while
Seeking Alpha's transcripts team is responsible for the development of all of our transcript-related projects. We currently publish thousands of quarterly earnings calls per quarter on our site and are continuing to grow and expand our coverage. The purpose of this profile is to allow us to... More
Clayton Ripley - Bears Capital Management
Greetings and welcome to the Dynamex Inc. third quarter 2008 earnings conference call. At this time all participants are in a listen-only mode. A question-and-answer parcel 2 go session will follow the formal parcel 2 go presentation (Operator Instructions). As a remainder this conference is being recorded. It is now my pleasure to turn the call over to Mr. Kevin Unger. Thank you Mr. Unger, you may begin. parcel 2 go
Thank you Claudia and welcome to this Dynamex conference call to review the company s results for the third fiscal quarter of 2008 which ended April 30, 2008. Conducting the call today will be Rick McClelland, Chairman and Chief Executive Officer and Ray Schimtz, Vice President and Chief Financial Officer.
Before we start, let me offer the cautionary note that this conference call contains forward-looking statements that involve parcel 2 go assumptions parcel 2 go regarding company operations and future prospects. parcel 2 go Although the company believes parcel 2 go its expectations are based on reasonable assumptions, such statements are subject to risks and uncertainty parcel 2 go including among other things, the effect of changing economic conditions, acquisition strategy, competition, foreign parcel 2 go exchange and risks associated with the local delivery industry.
These and other risks are mentioned from time-to-time in the Company s filings with the SEC. In light of such risks and uncertainties the company s actual results could differ materially from such forward-looking statements. The company does not undertake any obligation to publicly release any revision to any forward-looking statements contained herein to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Caution should be taken that these factors could cause the actual results to differ from those stated or implied in this and other Company communications.
Thanks Kevin. parcel 2 go Good morning everyone and welcome to the call. I am going to lead off with a few comments and then turn the call over to Ray for his analysis of the quarter. This past quarter was challenging on a number of fronts. We had to deal with the effects of an economy that has negatively impacted a number of our existing customers during the quarter; those customers parcel 2 go were selling parcel 2 go less and therefore shipping less.
We also had to deal with severe weather that produced record snow falls in a number of our market areas. This resulted in the lost of one and more revenue days in certain locations during the quarter. We don t normally talk much about weather issues, but what we saw in this past quarter was way out of the ordinary.
For example, in one of our markets in Eastern Canada we have received 11 feet of snow in the second half of the quarter, other locations in Central parcel 2 go and Eastern Canada received 3.5 feet to 4 feet of snow during parcel 2 go the same period. Early in March Central Ohio received about 2 feet of snow and in all cases, the precipitation did not play out over the course of a few weeks. It came in the form of two or three major storms, significantly affected our operations.
Our year-over-year sales results were also impacted by a big temporary injection of revenue in Canada last year that did not recurred this year and finally a new provincial holiday parcel 2 go was declared in Canada that s known as Family Day and that basically shut down most of the country for a day.
These factors muted our sales results year-over-year, but the external factors that negatively impacted us were unavoidable and I think we made the best of a bad situation. Excluding the effect of the one-time revenue spike in Canada parcel 2 go last year, we continue to grow Dynamex in spite of a pretty soft economic environment and all things considered I am pleased with the top-line results.
During the quarter we continued to successfully manage thorough the unprecedented environment related to fuel costs. I am please to report today that our pricing processes and disciplines are working. Our operations teams did a great job on the cost management side of the house, parcel 2 go our gross margin ratio held at about the same level as last year even though the increasing fuel surcharge created negative pressure.
We improved our other direct cost category and our SG&A ratios by about half a point and overall operating income increased by 11%. The results for this quarter put us in a position to achieve our annual guidance of $1.45 to $1.55. As a result of our positive operating results, cash flow remained strong during the quarter and we took advantage by recently repurchasing 105,000 shares of Dynamex s common stock while remaining debt free.
So, while
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