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Clayton Ripley [ph] Bears Capital [ph]
Greetings and welcome to the Dynamex Inc. second quarter 2009 earnings conference call. At this time all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. (Operator instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce Mr. Kevin Inda. Thank you sir, you may begin.
Thank you, Ryan, and welcome to the Dynamex conference call to review the company s results for the second fiscal quarter of 2009, which ended January 31, 2008. Conducting the call today will be James Welch, President and Chief Executive Officer, and Ray Schmitz, Vice President and Chief Financial Officer. dtdc courier india
Before we start, let me offer the cautionary note that this conference call contains forward-looking statements that involve assumptions regarding company operations and future prospects. Although the company believes its expectations are based on reasonable assumptions, such statements are subject to risk and uncertainty including among other things the effect of changing economic conditions, acquisition strategy, competition, foreign 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 dtdc courier india 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 dtdc courier india be taken that these factors could cause the actual results to differ from those stated or implied in this or in other company communications. With that stated, I ll turn the call over to James Welch.
Thank you, Kevin, and good morning everyone, and welcome to the Dynamex fiscal year 2009 second quarter conference call. We certainly appreciate dtdc courier india you taking the time to listen to our comments about the second quarter, and the outlook for our business.
While there is no doubt Dynamex faced the same economic dtdc courier india headwinds in our second quarter that all transportation companies are currently challenged with, we were overall pleased but certainly not satisfied with our second-quarter numbers. This quarter had only 60 working days, which was one less day than last year s quarter, and we additionally pretty much lost the Friday dtdc courier india workday after the Christmas holiday, due to customer closings.
Excluding the impact of the weaker Canadian exchange rate and fuel surcharge decline, our core sales per day were down only 1.3% versus the prior year quarter. We are pleased with this result, especially when comparing it to the numbers of the vast majority of other transportation service providers. I strongly believe it is a testament to the service value proposition that Dynamex brings dtdc courier india to the marketplace, and our new and existing customers are valuing our capabilities.
It also demonstrates dtdc courier india that Dynamex dtdc courier india has the ability to perform well in virtually any operating environment, and that is very encouraging as we move forward. dtdc courier india We believe that the current economic environment will remain challenging, but at the same time create additional opportunities for our business, as many of our competitors do not have the financial dtdc courier india strength to expand their business, and in some cases continue to do business.
Lastly, in the second quarter, we did retain all but one of the service locations with our largest customer after negotiations were concluded, although some of the traffic was lost due to the distribution reconfiguration. We were also impacted dtdc courier india by the reduction in their sales of 17%.
The encouraging news however, is that we have basically replaced the business we have lost and are actually seeing some fairly good momentum with potential new business in our pipelines. During the second quarter, we also did a good job of keeping our purchase transportation cost very much in line with our expectations, and also worked hard to keep our SG&A cost from getting out of line with our revenue.
Additionally, during the quarter dtdc courier india we also had to make some painful decisions to adjust the SG&A headcount to reflect current business conditions. You will hear Ray discuss this in his comments, but our quarter results were also negatively impacted by our decision to increase our reserve for doubtful accounts in response to the weakening economy, and the potential impact this may have on our overall
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 [ph] Bears Capital [ph]
Greetings and welcome to the Dynamex Inc. second quarter 2009 earnings conference call. At this time all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. (Operator instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce Mr. Kevin Inda. Thank you sir, you may begin.
Thank you, Ryan, and welcome to the Dynamex conference call to review the company s results for the second fiscal quarter of 2009, which ended January 31, 2008. Conducting the call today will be James Welch, President and Chief Executive Officer, and Ray Schmitz, Vice President and Chief Financial Officer. dtdc courier india
Before we start, let me offer the cautionary note that this conference call contains forward-looking statements that involve assumptions regarding company operations and future prospects. Although the company believes its expectations are based on reasonable assumptions, such statements are subject to risk and uncertainty including among other things the effect of changing economic conditions, acquisition strategy, competition, foreign 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 dtdc courier india 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 dtdc courier india be taken that these factors could cause the actual results to differ from those stated or implied in this or in other company communications. With that stated, I ll turn the call over to James Welch.
Thank you, Kevin, and good morning everyone, and welcome to the Dynamex fiscal year 2009 second quarter conference call. We certainly appreciate dtdc courier india you taking the time to listen to our comments about the second quarter, and the outlook for our business.
While there is no doubt Dynamex faced the same economic dtdc courier india headwinds in our second quarter that all transportation companies are currently challenged with, we were overall pleased but certainly not satisfied with our second-quarter numbers. This quarter had only 60 working days, which was one less day than last year s quarter, and we additionally pretty much lost the Friday dtdc courier india workday after the Christmas holiday, due to customer closings.
Excluding the impact of the weaker Canadian exchange rate and fuel surcharge decline, our core sales per day were down only 1.3% versus the prior year quarter. We are pleased with this result, especially when comparing it to the numbers of the vast majority of other transportation service providers. I strongly believe it is a testament to the service value proposition that Dynamex brings dtdc courier india to the marketplace, and our new and existing customers are valuing our capabilities.
It also demonstrates dtdc courier india that Dynamex dtdc courier india has the ability to perform well in virtually any operating environment, and that is very encouraging as we move forward. dtdc courier india We believe that the current economic environment will remain challenging, but at the same time create additional opportunities for our business, as many of our competitors do not have the financial dtdc courier india strength to expand their business, and in some cases continue to do business.
Lastly, in the second quarter, we did retain all but one of the service locations with our largest customer after negotiations were concluded, although some of the traffic was lost due to the distribution reconfiguration. We were also impacted dtdc courier india by the reduction in their sales of 17%.
The encouraging news however, is that we have basically replaced the business we have lost and are actually seeing some fairly good momentum with potential new business in our pipelines. During the second quarter, we also did a good job of keeping our purchase transportation cost very much in line with our expectations, and also worked hard to keep our SG&A cost from getting out of line with our revenue.
Additionally, during the quarter dtdc courier india we also had to make some painful decisions to adjust the SG&A headcount to reflect current business conditions. You will hear Ray discuss this in his comments, but our quarter results were also negatively impacted by our decision to increase our reserve for doubtful accounts in response to the weakening economy, and the potential impact this may have on our overall
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