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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934
Date of Report (Date of earliest event reported): October 25, 1999
Allied Holdings, Inc.
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(Exact name of registrant as specified in its charter)
Georgia 0-22276 58-0360550
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
160 Clairemont Avenue, Suite 510, Decatur, Georgia 30030
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(Address of principal executive offices) (Zip Code)
404/370-1100
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(Registrant's telephone number, including area code)
Not applicable
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Former name or former address, if changed since last report)
The Total Number of Pages in this Document is 7.
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ITEM 5. Other Events
On October 25, 1999, Allied Holdings, Inc. (the "Company") issued the
press release filed herewith as Exhibit 99.1 in connection with the adoption of
a stock repurchase plan. The Board of Directors of the Company authorized
management to take the steps necessary to repurchase up to 500,000 shares of the
Company's outstanding common stock through fiscal year 2000 in open market
transactions. The authorization of this plan remains subject to obtaining
approval from the Company's lenders.
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ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits.
99.1 Press release dated October 21, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ALLIED HOLDINGS, INC.
October 25, 1999 /s/ Daniel H. Popky
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Daniel H. Popky, Senior Vice President and
Chief Financial Officer
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INDEX TO EXHIBITS
Exhibit Number Description Page
99.1 Press Release dated October 21, 1999 6
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EXHIBIT 99.1
ALLIED HOLDINGS REPORTS THIRD QUARTER RESULTS AND
ANNOUNCES STOCK REPURCHASE
DECATUR, GEORGIA, OCTOBER 21, 1999 -- ALLIED HOLDINGS, INC. (NYSE:AHI) TODAY
REPORTED RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 1999 AND ANNOUNCED
THAT ITS BOARD OF DIRECTORS HAS AUTHORIZED THE REPURCHASE OF UP TO 500,000
SHARES OF ALLIED HOLDINGS COMMON STOCK.
Revenues for the third quarter of 1999 were $240.1 million, compared with
revenues of $217.5 million for the third quarter last year. The Company
experienced a net loss of $3.8 million during the third quarter of 1999, versus
a loss of $5.0 million during the third quarter of 1998. The basic and diluted
losses per share for the third quarter of 1999 were $0.49, versus a basic and
diluted loss per share of $0.64 in the third quarter of 1998.
Revenues for the nine-month period ended September 30, 1999, were $788.3
million, versus revenues of $751.5 million reported for the same period last
year. The Company had a net loss of $3.7 million for the first nine months of
1999, compared with net income of $3.4 million for the comparable nine-month
period a year ago. Basic and diluted loss per share for the nine months ended
September 30, 1999 were $0.47, versus basic and diluted earnings per share of
$0.44 for the comparable nine-month period a year ago.
Commenting on the results, A. Mitchell Poole, Jr., Allied's president and chief
operating officer, said: The third quarter is historically our slowest due to
seasonal closings of automotive manufacturing plants for vacations and model
change-overs. However, the 1998 third quarter results were impacted by work
stoppages at most General Motors manufacturing plants while a number of items
adversely effected the Allied Automotive Group's (AAG's) 1999 third quarter
results. AAG continues to experience reduced load averages because of delivering
larger and heavier vehicles. In addition, AAG's labor costs have increased as a
result of the new U.S. Teamster contract, and fuel prices are substantially
higher than the 1998 levels. Also, cargo claims costs have increased, but we
have recently instituted new quality programs that should reduce the frequency
and amount of cargo claims. Mr. Poole added: AAG has put into effect rate
increases covering sixty to seventy percent of the vehicles it delivers;
however, the increases were in effect for only a portion of the third quarter.
AAG is continuing negotiations in an effort to obtain rate increases on its
remaining traffic by year-end.
Mr. Poole, said: Obtaining rate relief has taken longer than we anticipated, but
for those we have completed, we have achieved mutually satisfactory results. We
will continue to seek increases from AAG's remaining customers to ensure proper
pricing due to the continuing trend towards larger vehicles. AAG has obtained a
modest increase from one of those customers as an interim step; however, that
customer is market testing all of its haulaway business in the U.S. and Canada.
This includes AAG's current business as well as that of AAG's competitors. As a
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result, we are seeking to retain our business with this customer with higher
revenues in order to improve profitability.
Mr. Poole added, The Axis Group continues to exceed expectations and again
posted a profit in the third quarter. In addition, AAG has obtained significant
rate relief and will continue to aggressively pursue cost savings. As a result,
we expect to eliminate the third quarter loss with a profitable fourth quarter
and we are very optimistic about the outlook for 2000 and beyond.
The Company also announced today that, subject to obtaining approval from the
Company's lenders, the Board of Directors has authorized management to take the
necessary steps to repurchase up to 500,000 shares of the Company's outstanding
common stock through fiscal year 2000 in open market transactions. The Company
expects to obtain lender approval for the stock repurchase during the fourth
quarter.
Robert J. Rutland, chairman and chief executive officer, said: It is our opinion
that at current market prices, Allied's shares represent an attractive
opportunity for the Company. The current market conditions have helped create an
opportunity for the Company to further its commitment to increasing shareholder
value and provide the best uses of our capital resources. The timing of these
purchases and the number of shares purchased will be dictated by market
conditions and other relevant factors.
Allied Holdings, Inc. is the parent company of several subsidiaries engaged in
the automotive distribution business. The Allied Automotive Group (AAG), through
its subsidiaries, is the largest motor carrier in North America specializing in
the delivery of automobiles and light trucks. AAG transports for all major
domestic and foreign manufacturers primarily from manufacturing plants, rail
ramps, ports and auctions to automobile dealers throughout the United States and
Canada. Allied Holdings Axis Group, through its subsidiaries, provides logistics
solutions to the United States and international automotive markets. Axis
utilizes innovative methods of distribution, as well as traditional and emerging
technologies, to help customers solve the most complex transportation, inventory
and logistics problems.
Statements in this press release that are not strictly historical are
forward-looking statements. Investors are cautioned that such statements are
subject to certain risks and uncertainties that could cause actual results to
differ materially. Without limitation, these risks and uncertainties include
economic recessions or downturns in new vehicle production or sales, the highly
competitive nature of the automotive distribution industry, dependence on the
automotive industry, labor disputes involving the Company or its significant
customers, the dependence on key personnel who have been hired or retained by
the Company, the availability of strategic acquisitions or joint venture
partners, changes in regulatory requirements which are applicable to the
Company's business, risks associated with conducting business in foreign
countries, changes in vehicle sizes and weights which may impact vehicle
deliveries per load, the ability to increase the rates charged to customers, and
problems related to information technology systems and computations that must be
made by the Company or its customers and vendors in 1999, 2000 or beyond.
Investors are urged to carefully review and consider the various disclosures
made by the Company in this press release and in the Company's reports filed
with the Securities and Exchange Commission.
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