[front cover black/grey swirl background]
ANUHCO, INC.
ANNUAL REPORT 1994
ANUHCO [in large print/copper metallic lettering]
<PAGE>
LETTER TO SHAREHOLDERS: [white type on black/grey swirl strip]
What a remarkable year Anuhco had in 1994:
. Revenues up 25% over 1993, to $96 million
. Operating income up 109%, to $5.2 million
. Income from continuing operations up 106%, to $5.5 Million
. Other income, primarily from the collection of a
judgment, of $54.8 million
. Long term debt eliminated
. Shareholders equity increased from $2.26 per share, to
$10.25 per share.
Although we look forward to another solid year in 1995, the
exceptional and extraordinary circumstances of 1994 are not likely
to be repeated.
Crouse Cartage Company, our operating subsidiary, had an
outstanding year. During the second quarter, the company reacted
quickly and effectively to a nationwide strike against several
competitors and the cessation of operations by one competitor.
Crouse's ability to respond to greatly increased freight volumes is
a credit to its management and employees. As a result, the company
was able to maintain much of the new revenue through the balance of
the year and the first quarter of 1995. (see First Quarter 1995
Report enclosed with this Annual Report.) A full year of strong
economic conditions in its area of operations also aided an overall
excellent performance. However, even if the economy remains
strong, improvements over 1994 will be difficult for the balance of
1995. An April 1st contractual increase in labor costs and
competitive market pressures pose challenges to continuing such
year-to-year operating improvements.
Anuhco now has sufficient cash to more aggressively seek good
acquisition candidates and to continue orderly expansion of Crouse
Cartage. While there could be some income from discontinued
operations, we have used our best efforts to estimate the remaining
values in this area and recorded these estimates in the fourth
quarter 1994. Anuhco's interest income will be much higher in 1995
and should more than offset our anticipated recognition of 1995
income tax expenses. In summary, we look forward to a challenging
year and anticipate progress toward our goal of long term benefits
to the shareholders.
/s/ John P. Bigger /s/ Roy Laborde
John P. Bigger, President Roy R. Laborde, Chairman
and Chief Executive Officer
April 3, 1995
<PAGE>
THE CROUSE CARTAGE COMPANY [white type on black/grey swirl strip]
A Service Tradition.
Every blue and yellow Crouse Cartage Company truck displays the
motto "Service is Our Salesman" - reflecting a long tradition of
service excellence. A tradition that translates directly into
customer satisfaction and corporate profitability.
"Our total quality journey began in 1941 and has always been
customer focused." [in larger script type]
Crouse Cartage Company, the subsidiary of Anuhco, Inc., is a
diversified motor freight transportation firm, headquartered in
Carroll, Iowa. The company was founded in 1941, by Paul Crouse, to
serve the shipping needs of customers in the Denison-Council
Bluffs-Sioux City, Iowa region. From three trucks, three employees
- - and unlimited determination to deliver the best possible customer
service along with the freight - the company's annual gross
revenues now exceed $95 million.
Today, second and third generations of Crouse families and workers
serve over 12,000 customers nationwide. A modern fuel-efficient
trucking fleet and a strategic network of 53 terminals, support the
intercity movement of nearly 878,000 tons of general commodities
freight annually.
Crouse customers enjoy overnight service on ninety percent of less-
than-truckload (LTL) shipments in 10 Midwestern states. (LTL's are
freight from more than one business that are combined to fill a
trailer). Longer-haul service is also available to destinations
throughout the 48-contiguous states. The fleet includes 350
maximum cube trailers, 300 temperature-controlled trailers, 80
flatbeds and 300 vans.
Customers Come First.
Crouse customers expect their freight to be delivered on-time, in
top condition and at a reasonable cost. The primary task of every
Crouse employee is to not only meet, but to exceed these client
expectations. In 1994, Crouse achieved 93 percent on-time
deliveries, compared to 92 percent the previous year. This
continuous improvement is just one reason why customers have come
to depend on Crouse for their shipping needs.
The company also enjoys a much lower damaged goods rate than the
average trucking company. The overall industry average for damaged
freight is 1.2 percent, while Crouse has held their damage rate to
one-half of one percent. Crouse drivers and freight handlers have
earned one of the best safety records in the business. This is due
in large part to the company's relentless dedication to employee
safety and accident prevention.
Teamwork Proves Its Worth.
Teamwork is another strong Crouse tradition that demonstrated its
full potential in 1994. During the second quarter two critical
events occurred. First, the 4-week Teamsters Union strike on
selected national carriers and second, the closing of a competitive
regional truck line. Crouse management and employees teamed up to
secure and handle a 30 percent surge in business while continuing
to protect the existing customer base. Company executives were on
the dock and behind the wheel making deliveries whenever needed.
Employees voluntarily delayed vacations to get the job done for the
customers and the company.
"Teamwork is another strong Crouse tradition"....[in larger script
type]
As a result of all the extra effort, Crouse was able to continue
serving the needs of its valued long-time customers while building
successful relationships with the influx of new customers.
Quality Doesn't Cost. It Pays.
At Crouse, the total quality journey began in 1941 and has always
been customer focused. Long before it became a popular buzz word,
quality was simply the Crouse way of doing business. That means a
commitment by every one of Crouse's 965 employees to
"Today, second and third generations of Crouse families and workers
serve customers nationwide" [break in paragraph in larger script
type]
doing it right the first time - eliminating re-work, negligence,
accidents and repairs which add up to the high cost of replacing a
dissatisfied customer.
In 1994 management at Crouse undertook a strategic quality
initiative to preserve and enhance its quality service traditions
and prepare for future growth. Internal bench marking is currently
underway to take a closer look at the processes used through each
step of freight handling, tracking and delivery. The company is
identifying the best practices now in place and looking for ways to
continuously improve all levels of operations. Training will be a
major focus for 1995 and will initially be centered on managers and
employees who can best lead, motivate and train others on the job.
The Crouse strategic quality initiative is being led from the top
and will eventually involve everyone in the organization. It's
just one more way Crouse works to deliver value for customers,
employees and shareholders.
<PAGE>
FINANCIAL HIGHLIGHTS [white type on black/grey swirl strip]
ANUHCO, INC. and SUBSIDIARIES
(amounts in thousands, except per share data)
<TABLE>
<CAPTION>
1994 1993 1992
<S> <C> <C> <C>
Operating Revenue.................. $95,772 $76,888 $71,266
Income from Operations............. 5,495 2,673 2,296
Income from Discontinued Operations 54,845 3,750 2,250
Net Income......................... 60,340 6,423 4,546
Per share data:
Income from Operations........... 0.73 0.35 0.30
Net Income....................... 8.00 0.85 0.60
Total Debt......................... -0- 1,860 3,927
Shareholders' Equity............... 77,419 17,058 10,622
</TABLE>
[heavy black line across the page to divide segments into thirds]
Graph #1 illustrates Graph #2 illustrates Graph #3 illustrates
operating revenue income from operations shareholder equity
as depicted above as depicted above as depicted above
[heavy black line across the page to divide segments into thirds]
COMMON STOCK
Anuhco's common stock is held by approximately 7,360 shareholders
of record as of December 31, 1994. The stock is traded on the
American Stock Exchange under the symbol ANU.
<TABLE>
<CAPTION>
1994 1993
<S> <C> <C> <C> <C>
High Low High Low
First Quarter $ 5 7/8 $ 4 3/4 $ 5 $ 2 1/2
Second Quarter 6 7/8 5 1/8 5 3/16 3 13/16
Third Quarter 10 1/8 6 4 11/16 4
Fourth Quarter 11 7/8 8 1/4 5 1/8 3 7/8
</TABLE>
<PAGE>
OFFICERS & BOARD [WHITE TYPE ON BLACK/GREY SWIRL BACKGROUND]
ANUHCO OFFICERS
John P. Bigger Larry D. Crouse Barbara J. Wackly
President and Chief Vice President Corporate Secretary
Executive Officer
OFFICERS OF CROUSE CARTAGE COMPANY
Larry D. Crouse George Crouse Gordon C. Headlee
Chairman and Chief President Vice President-Finance
Executive Officer Chief Financial Officer
and Treasurer
Kenneth B. Crouse
Vice President and Secretary
OFFICERS OF AMERICAN FREIGHT SYSTEM
Timothy P. O'Neil Vernon L. Arends Barbara J. Wackly
President and Chief Executive Vice Corporate Secretary
Executive Officer President
BOARD OF DIRECTORS
Joe J. Brown*
Director since 1991
Retired President and a Director of Brown Church Securities, Inc.
William D. Cox*
Director since 1991
President of Bel Aire Development, Inc.
Larry D. Crouse
Director since 1991
Vice President of the Company; Chairman and Chief Executive
Officer of Crouse Cartage Company
Donald M. Gamet*
Director since 1983
Former Executive Vice President, Finance, of Chicago Pacific
Corporation; Retired Senior Partner of Arthur Andersen & Co.
Roy R. Laborde+
Director since 1991; Chairman of the Board. President of Amboy
Grain, Inc.
Eleanor B. Schwartz+
Director since 1983
Chancellor and Chief Executive Officer of the University of
Missouri - Kansas City
Walter P. Walker+
Director since 1983
Private consultant; Former President of Audichron Company
* Member, Audit Committee
+ Member, Compensation Committee
CORPORATE OFFICE
9393 West 110th Street
Suite 100
Overland Park, KS 66210
913-451-2800 - Office
913-451-8062 - FAX
Contact: Timothy P. O'Neil
INDEPENDENT PUBLIC ACCOUNTANTS
Arthur Andersen LLP
Kansas City, MO
SPECIAL COUNSEL
Kent E. Whittaker, Esquire
Hillix, Brewer, Hoffhaus, Whittaker & Wright, LLC
Kansas City, MO
COMMON STOCK LISTING
American Stock Exchange
(Symbol - ANU)
TRANSFER AGENT AND REGISTRAR
Chemical Mellon Shareholder Services
Recordkeeping Services
P.O. Box 590
Ridgefield Park, NJ 07660
800-526-0801
ANNUAL MEETING
May 23, 1995 9:00 a.m.
Doubletree Hotel
10100 College Boulevard
Overland Park, KS
<PAGE>
[back cover same black/grey swirl pattern; in small letters at the
bottom of the otherwise blank page appears one line of address
information as follows]
Anuhco, Inc. . 9393 West 110th Street . Suite 100 . Overland Park,
KS . 66210 . 913-451-2800 . FAX 913-451-8062
<PAGE>
