celadon group inc. nasdaq: cldn logistics summit november 2006
TRANSCRIPT
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Celadon Group Inc.NASDAQ: CLDN
Logistics SummitNovember 2006
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About Celadon Trucking Operations:
– 2,850 tractors (including 350 Canadian, 250 Mexican)– 7,600 trailers
1,000 miles average length of haul
International footprint– 35% Mexico, 10% Canada
Balanced, non-cyclical customer base
Strong driver base – no trainees, average age 47,high safety and performance standards
1st Place Truckload Carriers Association SafetyAward for Large Fleets (2004 & 2005)
Rapidly improving margins with significant operating leverage
TruckersB2B/Non-asset based businesses
3,800 Employees
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Our Focus on DriverRetention and Growth
Respect permeates organization No RR freight- No rail yards! No loading/unloading cargo Safest Big Fleet reputation Every 30,000 miles/week vacation Speed governed at 68 mph Paid wait time Average length of haul 1,000 miles Average age 47 (12% women) Highway 2 Health Program Young Fleet Turnover 70% vs Industry avg of 130%
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Digby Acquisition October 6, 2006
Nashville, TN Company founded 1984 250 Tractors, 580 Trailers $48 million Revenue (TTM) Principal Customers:
– Campbell Soup– General Mills– Kraft Foods– Bremner Foods (Ralston-Purina)
Hired 130 Drivers
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Diverse Customer Base
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Revenue (in millions)Fiscal year Ended June 30,
$181$220
$298$352
$393
$148$136
$88$48
$480
$437$398
$367$337
$0
$100
$200
$300
$400
$500
2002 2003 2004 2005 2006
All Other Automotive Fuel Surcharge
$29
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Net Income(June 30 FY)
$7.1$4.7
$12.6
$20.5
$1.7$4.2
$6.6
$0
$5
$10
$15
$20
$25
2002 2003 2004 2005 2006 Sep Q06
Sep Q07
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Earnings Per Share2002 – 2007 FY June 30
$0.10
$0.23
$0.37
$0.55
$0.88
$1.17*
$0.00
$0.60
$1.20
2002 2003 2004 2005 2006 2007•Represents consensus estimate•For 2007 Calendar year, consensus is $1.26
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Challenges Facing Indiana Transportation Industries
•Higher Education•47th of 50 states for Bachelor’s Degrees per capita•Junior College System
•Road System•Truck Lanes I-70-69-65•Expand Parking Areas/Rest Stops•Weigh-in Motion
•Inland Port (similar to Kansas City)