UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 0-23210
TRISM, INC.
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation or organization)
13-3491658
(I.R.S. Employer Identification No.)
4174 Jiles Road, Kennesaw, Georgia 30144
(Address of principal executive offices) (Zip Code)
(770) 795-4600
Registrant's telephone number, including area code
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
[ X ] Yes [ ] No
As of April 30, 1998, 5,702,337 shares of TRISM, Inc.'s common stock, par
value $.01 per share, were outstanding.
<PAGE>
TRISM, INC
TABLE OF CONTENTS
ITEM PAGE
Part I FINANCIAL INFORMATION
Item 1. Financial Statements 3
Item 2 Management's Discussion and Analysis of 8
Financial Condition and Results of Operations
Part II OTHER INFORMATION
Item 1. Legal Proceedings 7
Item 6. Exhibits and Reports on Form 8-K 14
<PAGE>
ITEM 1. FINANCIAL STATEMENTS (In thousands, unaudited)
TRISM, Inc. - CONSOLIDATED BALANCE SHEETS
As of March 31, 1998 and December 31, 1997
Mar. 31, 1998 Dec. 31, 1997
ASSETS
Current assets:
Cash and cash equivalents $ 8,009 6,271
Restricted cash and insurance deposits 994 1,010
Accounts receivable, net of allowance for
doubtful accounts of $1,744 and $2,070 for
1998 and 1997, respectively 42,816 44,076
Materials and supplies 1,425 1,643
Prepaid expenses 17,219 18,418
Deferred income taxes 3,100 3,789
Total current assets 73,563 75,207
Property and equipment, at cost 181,507 184,232
Less: Accumulated depreciation and amortization (65,400) (62,428)
Net Property and Equipment 116,107 121,804
Intangibles, net 18,523 18,685
Other 2,337 3,128
Total assets $ 210,530 218,824
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 8,718 11,859
Bank overdraft 4,548 4,796
Accrued expenses and insurance reserves 16,768 13,733
Current maturities of long-term debt:
Principal payments 11,688 13,025
Residual obligations on equipment debt 8,245 8,696
Total current liabilities 49,967 52,109
Long-term debt, less current maturities 133,637 135,833
Insurance reserves 5,301 5,423
Deferred income taxes 515 2,314
Total liabilities 189,420 195,679
Commitments and contingencies
Stockholders' equity:
Common stock; $.01 par; 10,000 shares
authorized; issued 5,903 shares at March 31,
1998 and December 31, 1997 59 59
Additional paid-in capital 37,327 37,327
Loans to stockholders (368) (368)
Accumulated deficit (14,271) (12,324)
Treasury stock, at cost, 201 and 166 shares
at March 31, 1998 and December 31, 1977 (1,637) (1,549)
Total stockholders' equity 21,110 23,145
Total liabilities and stockholders' equity $ 210,530 218,824
See accompanying notes to consolidated financial statements.
<PAGE>
ITEM 1. FINANCIAL STATEMENTS, Continued
TRISM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended March 31, 1998 and 1997
(In thousands, except per share amounts, unaudited)
1998 1997
Revenues $ 72,129 77,733
Operating expenses:
Salaries, wages and fringe benefits 28,023 28,331
Operating supplies and expenses 10,916 12,084
Operating taxes and licenses 6,591 7,057
Contractor equipment 5,301 4,213
Depreciation and amortization 5,049 4,724
Brokerage carrier expense 4,624 6,814
General supplies and expenses 3,562 4,344
Revenue equipment rents 3,211 3,777
Claims and insurance 2,426 2,862
Communications and utilities 1,273 1,396
Loss on disposition of assets 417 183
Restructuring expenses - 3,000
Total operating expenses 71,393 78,785
Operating income (loss) 736 (1,052)
Interest expense and other, net 3,732 3,814
Loss before income taxes (2,996) (4,866)
Income tax benefit 1,049 1,460
Net loss $ (1,947) (3,406)
Basic loss per share $ (.34) (.59)
Diluted loss per share $ (.34) (.59)
Weighted average number of shares used in
computation of basic and diluted loss per share 5,725 5,737
See accompanying notes to consolidated financial statements.
<PAGE>
ITEM 1. FINANCIAL STATEMENTS, Continued (In thousands, unaudited)
TRISM, Inc. - CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended March 31, 1998 and 1997
1998 1997
Cash flows from operating activities:
Net loss $ (1,947) (3,406)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization 5,242 4,893
Loss on disposition of assets 417 183
Provision for losses on accounts receivable 223 329
Deferred gain on sale-leaseback (65) -
Restructuring charge - 3,000
Deferred income taxes (1,110) (1,460)
Changes in assets and liabilities:
Accounts receivable 1,212 6,240
Prepaid expenses 1,199 648
Accrued expenses and insurance reserves 3,212 4,410
Accounts payable (3,141) (2,752)
Other (81) (392)
Net cash provided by operating activities 5,161 11,693
Cash flows from investing activities:
Proceeds from sale of assets 2,643 1,726
Purchases of property and equipment (411) (563)
Proceeds from sale-leaseback - 2,504
Collection of notes receivable 688 546
Refund of restricted deposits 16 178
Contingent acquisition payments (200) -
Net cash provided by investing activities 2,736 4,391
Cash flows from financing activities:
Net proceeds (repayment) under revolving
credit agreement 1,239 (11,635)
Repayment of long-term debt and capital
lease obligations (7,062) (5,402)
Decrease in bank overdrafts (248) -
Purchase of treasury stock (88) -
Net cash used in financing activities (6,159) (17,037)
Increase (decrease) in cash and cash equivalents 1,738 (953)
Cash and cash equivalents, beginning of period 6,271 1,468
Cash and cash equivalents, end of period $ 8,009 515
Supplemental cash flow information:
Cash paid during the period for:
Interest (non-capitalized) $ 1,317 1,222
Income Taxes $ 61 21
Capital lease equipment purchases and borrowings $ 1,839 -
See accompanying notes to the consolidated financial statements.
<PAGE>
TRISM, INC.
Notes to Consolidated Financial Statements
ACCOUNTING POLICIES
The 1997 Annual Report on Form 10-K for Trism, Inc. includes a summary of
significant accounting policies and should be read in conjunction with this
Form 10-Q. The statements for the periods presented are condensed and do
not contain all information required by generally accepted accounting
principles to be included in a full set of financial statements. In the
opinion of management, all adjustments (consisting of only normal recurring
adjustments) necessary to present fairly the financial position as of March
30, 1998 and December 31, 1997 and the results of operations and cash flows
for the periods ended March 30, 1998 and 1997, respectively have been
included. The results of operations for any interim period are not
necessarily indicative of the results of operations to be expected for the
entire year.
ACCOUNTING PRONOUNCEMENTS
In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive Income."
SFAS No. 130 establishes standards for reporting and display of comprehensive
income and its components in the financial statements. SFAS No. 130 is
effective for the Company's fiscal year beginning January 1, 1998.
Reclassification of financial statements for earlier periods presented for
comparative purposes is required. The adoption of SFAS No. 130 had no impact
on the Company's consolidated results of operations, financial position or
cash flows.
In June 1997, the FASB issued SFAS No. 131, "Disclosures about Segments of
an Enterprise and Related Information." SFAS No. 131 establishes standards
for the way that public business enterprises report information about
operating segments in annual and interim financial statements. It also
establishes standards for related disclosures about products, services, and
geographic areas. SFAS No. 131 is required beginning with the Company's
1998 annual financial statements and prior period disclosures are required
to be restated. The Company is in the process of evaluating the disclosure
requirements. The adoption of SFAS No. 131 will have no material impact on
the Company's consolidated results of operations, financial position or
cash flows.
In February 1998, the FASB issued SFAS No. 132, Employers' Disclosure about
Pensions and Other Post Retirement Benefits. SFAS No. 132 standardized the
disclosure requirements for pensions and other post retirement benefits to
the extent practical. This standard is effective beginning with the
Company's 1998 annual financial statements, and prior period disclosures are
required to be restated. Management is currently reviewing the provisions
of SFAS No. 132 and does not believe that the Company's financial statements
will be materially impacted by the adoption.
<PAGE>
Notes to Consociated Financial Statements, Continued
CORPORATE RESTRUCTURING
In February 1997, the Company announced an organizational restructuring to
consolidate certain sales, operations, and administrative functions and
reengineer business processes to reduce overhead and increase operational
efficiency. During 1997, the Company recorded total charges of $3.2 million
associated with the organizational restructuring.
LONG TERM DEBT
Revolving Credit Facility
On July 15, 1997, the Company refinanced its revolving credit facility
("Facility") with a $45 million credit line (the "Revolver"). The proceeds
of the Revolver were used to retire the Facility loan and are available for
the Company's working capital needs. The Revolver matures July 15, 2000 and
contains provisions for a letter of credit subline of $15 million, bears
interest at the Prime rate plus .25% or LIBOR plus 2.25%, and is secured by
accounts receivable. The Revolver also includes covenants applicable once
Availability under the Revolver falls below $8 million for 10 consecutive
business days. Availability under the Revolver was approximately $14.5
million at March 31, 1998, net of a reduction for outstanding letters of
credit of approximately $11.4 million. The foregoing letters of credit and
deposits totaling $1.0 million are furnished to insurance carriers for the
estimated cost of self-insured claims and for premium payments as of
March 31, 1998.
Senior Subordinated Notes
The Company's Senior Subordinated Notes ("Notes") bear interest at 10.75%
payable on June 15th and December 15th of each year through December 15,
2000. The Notes are redeemable at the option of the Company, in whole or
in part, on or after December 15, 1998, at a redemption price of 105%
through December 1999 and 102.5% thereafter. Through March 31, 1998, the
Company has repurchased $5.3 million of the Notes at approximately face
value of which $1.0 million of the notes were repurchased in the first
quarter of 1998.
CONTINGENCIES
Under the Comprehensive Environmental Responses, Compensation and Liability
Act ("CERCLA") and similar state laws, a transporter of hazardous substances
may be liable for the costs of responding to the release or threatened
release of hazardous substances from disposal sites if such transporter
selected the site for disposal. Because it is the Company's practice not to
select the sites where hazardous substances and wastes will be disposed, the
Company does not believe it will be subject to material liability under
CERCLA and similar laws.
<PAGE>
Notes to Consociated Financial Statements, Continued
Although the Company has been identified as a "potentially responsible party"
(PRP) at two sites, solely because of its activities as a transporter of
hazardous substances, the Company does not believe it will be subject to
material liabilities at such sites.
The Company is a party to certain legal proceedings incidental to its
business, primarily involving claims for personal injury or property damage
arising from the transportation of freight. The Company does not believe
that these legal proceedings, or any other claims or threatened claims of
which it is aware, are likely to materially and adversely affect the
Company's financial condition. With regard to personal injury, property
damage, workers' compensation claims, and cargo claims, the Company is and
has been covered by insurance. Such matters may include claims for punitive
damages. It is an open question in some jurisdictions in which the Company
does business as to whether or not punitive damages awards are covered by
insurance.
The Company is a defendant in one additional litigation in the Circuit Court
of Jefferson County, Alabama. The case is captioned Roy A. Reese v. Trism
Specialized Carriers, Inc. and Tri-State Motor Transit Co. It arises from a
lease, transfer and consulting agreement between the Company and plaintiff
(Mr. Reese and his wholly owned corporation) dated August 24, 1992. Plaintiff
alleges breach of contract, promissory fraud, conversion and conspiracy
claims arising from the Company's termination of the contract. He seeks
compensatory and punitive damages. The Company maintains that it properly
terminated the contract because of misrepresentations and non-performance by
plaintiff and his company, and has asserted certain counterclaims.
The case was tried in August 1996, and plaintiff was awarded $47,000 in
rental fees admitted by the Company to be due for the use of plaintiff's
trailer equipment after cancellation of the original contract. All other
claims for damages were found in favor of the defendant (the "Company").
Plaintiff appealed to the Alabama Court of Civil Appeals which reversed and
remanded the case on the legal argument that the jury had found both
defendants liable to plaintiff but only awarded damages ($47,000) to one
defendant. Both parties appealed the matter to the Alabama Supreme Court
which granted a certiorari. Briefs have been filed, and the Company is
awaiting the decision of the Alabama Supreme Court. The Company believes it
will again prevail should a second trial become necessary.
In addition to matters referred to above, the Company is a party to certain
additional lawsuits, none of which is believed to involve a significant risk
of materially and adversely affecting the Company's financial condition.
<PAGE>
Notes to Consociated Financial Statements, Continued
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
RESULTS OF OPERATIONS
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements. Certain statements in this Form 10-Q include
information that is forward-looking, such as the Company's opportunities to
reduce overhead costs and increase operational efficiency, its anticipated
liquidity and capital requirements and the results of legal proceedings. The
matters referred to in forward-looking statements could be affected by the
risks and uncertainties involved in the Company's business. Subsequent
written and oral forward-looking statements attributable to the Company or
persons acting on its behalf are expressly qualified in their entirety by
the cautionary statements in this paragraph.
The following discussion and analysis should be read in conjunction with the
Company's Consolidated Financial Statements and notes for the year ended
December 31, 1997 and quarter ended March 31, 1998.
The following table summarizes certain financial information on a percentage
of revenue basis for the three months ended March 31, 1998 and 1997.
Reference to 1998 and 1997 apply to the three month period ended March 31,
1998 and 1997, respectively.
PERCENTAGE OF REVENUE BASIS: 1998 1997 Variance
Operating Revenue 100.0 100.0 -
Operating Expenses:
Salaries, wages and fringe benefits 38.9 36.4 (2.5)
Operating supplies and expenses 15.1 15.5 .4
Operating taxes and licenses 9.1 9.1 -
Contractor equipment 7.3 5.4 (1.9 )
Depreciation and amortization 7.0 6.1 (.9 )
Brokerage carrier expense 6.4 8.8 2.4
General supplies and expenses 4.9 5.6 .7
Revenue equipment rents 4.5 4.9 .4
Claims and insurance 3.4 3.7 .3
Communications and utilities 1.8 1.8 -
Loss on disposition of assets .6 .2 (.4 )
Restructuring expenses - 3.9 3.9
Total operating expenses 99.0 101.4 2.4
Income (loss) from operations 1.0 (1.4 ) 2.4
Interest and other, net 5.2 4.9 (.3 )
Loss before income taxes 4.2 6.3 2.1
Income tax benefit 1.5 1.9 (.4 )
Net loss 2.7 4.4 1.7
<PAGE>
Notes to Consociated Financial Statements, Continued
OPERATING REVENUE
Operating revenue was approximately $72.1 million in 1998 compared to $77.7
million in 1997. Revenue per loaded mile improved to $1.77 in 1998 from
$1.71 in 1997. The foregoing rate improvement was offset by a decrease in
the load ratio to 82.8% in 1998 compared to 84.2% in 1997. Furthermore,
total miles driven amounted to 45.3 million miles in 1998 compared to 48.4
million miles in 1997. External factors impacting operating results were
the Company's exit from the Commercial Flatbed market in 1997, softness in
the Secured Materials market, and asset productivity in Heavy Haul primarily
due to driver retention issues.
Operating revenues between the periods includes the following (in thousands):
MARKET 1998 1997
Heavy Haul (1) $ 48,779 51,119
Secured Materials 24,327 25,910
Trism Logistics 2,314 3,175
Elimination's and other (3,291) (2,471)
$ 72,129 $ 77,733
(1) Includes Commercial Flatbed results as if the consolidation
into Heavy Haul occurred as of January 1, 1997. Operating
revenue for the Commercial Flatbed market amounted to
approximately $7.4 million during the first quarter of 1997.
OPERATING INCOME
Operating income (loss) between the periods includes the
following (in thousands):
MARKET 1998 1997
Heavy Haul (a) $ 207 368
Secured Materials 331 1,469
Logistics 198 111
Restructuring charge - (3,000)
Operating income (loss) $ 736 (1,052)
Operating expense ratio (b) 99.0% 101.4%
(a) Includes Commercial Flatbed results as if the consolidation into
Heavy Haul occurred as of January 1, 1997. The operating loss for
the Commercial Flatbed market amounted to $.7 million during the
first quarter of 1997.
(b) The operating ratio represents operating expenses as a percentage
of operating revenue.
<PAGE>
Notes to Consociated Financial Statements, Continued
Operating income was impacted by certain external business factors described
in the Operating Revenue Section of this discussion.
Further, operating income for the three months ended March 31, 1998 was
affected by positive profit contributions in comparison to 1997 as follows:
(a) restructuring charges of $3.0 million recorded in 1997 with no
corresponding adjustment in 1998; (b) lower fuel costs of $1.3 million due
to a reduction in the per gallon cost of fuel from $1.21 in 1997 to $1.04 in
1998; (c) lower claims and insurance costs of $.4 million as a result of
favorable accident and claims experience; and (d) lower fixed freight
expenses of approximately $1.4 million relating to reduced personnel and
administrative expenses.
Offsets to the positive profit contribution variances impacting 1998
operating income compared to 1997 resulted from: (a) higher driver and lease
operator costs of $2.5 million due to an increase in driver compensation
rates, lease operator miles of approximately .8 million, and driver recruit-
ing and advertising expenses; (b) higher maintenance charges of $.7 million
resulting from an increase in the overall age of the tractor fleet; (c)
higher loss on disposition of assets of $.2 million, primarily related to
trailers previously used in Commercial Flatbed market; (d) higher escort and
permit charges of $.5 million due to commodity mix changes; and (e) other,
net expenditure increases of $.5 million.
OPERATING AND OTHER EXPENSES
Total operating expenses were approximately $71.4 million in 1998 as compared
to $78.7 million after a $3.0 million restructuring charge in 1997. The
following expense categories increased or decreased significantly as a
percentage of revenue between the periods:
Salaries, wages and fringe benefits increased 2.5% from the first quarter
ended 1997 to 1998. The increase is due to driver compensation increases,
net of a reduction in non-driver compensation as a result of the
restructuring effort.
Operating supplies and expenses decreased .4% from the first quarter ended
1997 to 1998. The improvement resulted from reduced fuel expenditures offset
by an increase in maintenance expenditures due to the increasing age of the
tractor fleet.
Contractor equipment expenses increased 1.9% from the first quarter ended
1997 to 1998 due to an increase in overall lease operator rates and an
increase in the number of miles that the Company used lease operators from
4.0 million miles in 1997 to 4.8 million miles in 1998.
<PAGE>
Notes to Consociated Financial Statements, Continued
Revenue equipment rental expenditures decreased .4% due to the maturity of
certain operating equipment leases and a result of financing new tractors and
trailers primarily with capital leases throughout 1997 and the first quarter
of 1998. The change in mix of owned tractors and trailers versus operating
lease equipment caused an increase in depreciation and interest charges as a
percentage of revenue of .9% and .3%, respectively.
Brokerage expenses decreased 2.4% consistent with a decrease in brokerage
revenue of $2.4 million between the periods.
General supplies and expenses decreased .7% due to lower professional fees
and uncollectable revenue reserves offset by increased charges for driver
recruiting and advertising.
Loss on disposition of assets increased $.2 million, or .4% primarily related
to the sale of trailers previously used in the Commercial Flatbed market.
Restructuring charge of $3.0 million was recorded in the first quarter of
1997 with no corresponding adjustment in 1998.
Income tax benefit was $1.1 million for the quarter ended 1998 compared to
$1.5 million in 1997 resulting in an effective tax rate of 35% and 30%,
respectively.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities was $5.2 million in 1998 compared
to $11.7 million in 1997. The decrease is due to lower operating income, net
of the restructuring charge and reduced gross collection amounts on accounts
receivable due to lower sales. The accounts receivable turnover improved to
51 days in 1998 compared to 57 days in 1997.
Net cash provided by investing activities was $2.7 million in 1998 compared
to $4.4 million in 1997. The decrease in investing activity cash is
attributed to a reduction in sale-leaseback proceeds of $2.5 million used to
repay existing indebtedness associated with the acquisition of J.B. Hunt
Special Commodities Division.
Net cash used in financing activities was $6.2 million in 1998 compared to
$17.1 million in 1997. The decrease in cash from financing activities
related to net borrowings under the Company's revolving credit line of $1.2
million in 1998 versus net repayments under the credit line of $11.6 million
in 1997. Furthermore, the Company repaid long-term debt, capital lease
obligations, and note payments of approximately $7.1 million in 1998 compared
to $5.4 million in 1997.
<PAGE>
Notes to Consociated Financial Statements, Continued
CAPITAL REQUIREMENTS
The Company estimates 1998 capital expenditures for tractor and trailer of
approximately $45 million, net of $2 million from the sale of replaced
equipment. The Company has obtained finance commitments for the majority of
its needs during 1998. In addition, residual obligations of approximately
$8.2 million primarily relating to certain capital lease obligations will
mature in the next twelve months, and the Company will have the option to
either purchase the revenue equipment for the residual amount, sell the
equipment and repay the residual, or return the equipment to the lessor at
the end of the lease term.
The Company believes that it will be able to meet its on-going capital
requirements, scheduled principal payments and working capital needs from
cash flow from operations, availability under its working capital line,
proceeds from the sale of equipment and additional borrowing commitments.
The Company also has additional borrowing capacity supported by unencumbered
tangible assets.
YEAR 2000 POSITION STATEMENT
The Company has considered the potential impact of the year 2000 to its
computer systems. The year 2000 problem arises as a result of the year being
entered as a two-digit number rather than four to define the applicable year.
In the Company's AIX-based operating environment, all dates are converted to
a five-digit number, which is a count of the number of days since
December 31, 1969.
Further, the system interprets all dates as a future year rather than a prior
year, thus 2000 will not be interpreted as 1900. The Company believes that
this construct eliminates any serious year 2000 problems and leaves only some
minor clean-up work to be done so that representations of the date in any
report where the 1900 portion of the date might be assumed are corrected to
reflect 2000.
The Company plans a full system test during calendar year 1998, and
anticipates that it will not be required to engage outside consultants to
attain compliance, and any costs associated with attaining compliance will
not be material. The Company plans to load a copy of all of its production
applications, its database system software, the current release of AIX and
copies of live data for testing. Key factors to be tested include: proper
recognition of dates in 1999 for date; arithmetic and proper program logic;
proper recognition and use of dates crossing the century year from 1999 to
2000; and proper recognition and use of dates for February 29, 2000.
<PAGE>
Notes to Consociated Financial Statements, Continued
INFLATION AND FUEL COSTS
Inflation can be expected to have an impact on the Company's earnings;
however, the effect of inflation has been minimal over the past three years.
An extended period of inflation or increase in fuel costs would adversely
affect the Company's results of operations without a corresponding freight
rate increase from customers.
The Company uses forward purchase commitments to reduce its exposure to
fluctuations in fuel prices by entering into short-term fuel price agreements
for the actual delivery of fuel. These agreements, which settle monthly, fix
the price of fuel for approximately .8 million gallons of the Company's
estimated usage during the fourth quarter of 1998. The Company recognizes an
expense or benefit on these agreements in the period in which the fuel is used.
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
A. EXHIBITS
The following exhibit is filed as part of this report.
DESIGNATION NATURE OF EXHIBIT
11 Computation of earnings
Per Common Share
B. REPORTS ON FORM 8-K
During the quarter covered by this report there were no
reports on Form 8-K filed. Items 2, 3, and 5 of Part II
were not applicable and have been omitted.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.
TRISM, INC.
By:/s/James M. Revie
James M. Revie
Director, Chairman of the Board and
Chief Executive Officer
By:/s/James G. Overley
James G. Overley
Senior Vice President of Finance,
Chief Financial Officer and
Treasurer
Date: May 14, 1998
<PAGE>
TRISM, INC.
EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION PAGE
NUMBER
11 Computation of basic and diluted
earnings Per common share 15
<PAGE>
EXHIBIT 11
TRISM, INC.
Computation of Basic and Diluted Earnings Per Common Share
(In thousands, except per share amounts, unaudited)
Three Months Ended
March 31,
1998 1997
Net loss $ (1,947) (3,406)
Weighted average number of shares
Basic:
Average common shares outstanding 5,725 5,737
Diluted:
Average common shares outstanding 5,725 5,737
Common share equivalents resulting
From Assumed exercise of stock - -
options
5,725 5,737
Loss per common share:
Basic $ (.34) (.59)
Diluted $ (.34) (.59)
Earnings (Loss) Per Share
Basic earnings (loss) per share excludes dilution and is computed by dividing
net earnings (loss) by the weighted average number of common shares outstand-
ing. Common shares outstanding include issued shares less shares held in
treasury. Diluted earnings per share reflect the potential dilution that
could occur if securities or other contracts to issue common stock were
exercised or converted into common stock (common stock equivalents). Diluted
earnings per share is calculated by dividing net income by the sum of the
weighted average number of common shares outstanding and dilutive common
stock equivalents at the end of each reporting period. Common stock
equivalents are excluded from the diluted calculation if a net loss was
incurred for the period as these transactions are anti-dilutive.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 8009
<SECURITIES> 0
<RECEIVABLES> 44560
<ALLOWANCES> 1744
<INVENTORY> 1425
<CURRENT-ASSETS> 73563
<PP&E> 181507
<DEPRECIATION> 65400
<TOTAL-ASSETS> 210530
<CURRENT-LIABILITIES> 49967
<BONDS> 133637
0
0
<COMMON> 59
<OTHER-SE> 21051
<TOTAL-LIABILITY-AND-EQUITY> 210530
<SALES> 0
<TOTAL-REVENUES> 72129
<CGS> 0
<TOTAL-COSTS> 71393
<OTHER-EXPENSES> (160)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3892
<INCOME-PRETAX> (2996)
<INCOME-TAX> 1049
<INCOME-CONTINUING> (1947)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1947)
<EPS-PRIMARY> (.34)
<EPS-DILUTED> (.34)
</TABLE>
