EX-99
2
exhibit99pressrelease.htm
EXHIBIT 99 PRESS RELEASE
Exhibit 99 Press Release
Exhibit
99
9503
East 33rd
Street
Indianapolis,
IN 46235-4207
(800)
CELADON
(317)
972-7000
For
more information
:
FOR
IMMEDIATE RELEASE
Craig
M. Koven
February
28, 2007
Communications
Manager
(800)
CELADON Ext. 7041
(317)
972-7041 Direct
(317)
408-4859 Mobile
ckoven@celadongroup.com
CELADON
GROUP ANNOUNCES ACQUISITION
OF
TRUCKLOAD
VAN ASSETS FROM WARRIOR XPRESS
INDIANAPOLIS
- Celadon Group Inc. (Nasdaq: CLDN) announced that on Wednesday, Feb. 28, 2007,
one of its wholly-owned subsidiaries purchased the truckload business and
certain tractors and trailers of Warrior Services Inc. d/b/a Warrior Xpress
("Warrior") for approximately $8.3 million. According to the seller's unaudited
financial statements, the Charles City, Virginia-based transportation company
generated approximately $20 million in gross revenue in 2006.
Steve
Russell, Chairman and Chief Executive Officer, stated, "We are delighted with
the Warrior acquisition and expect it to follow the pattern established in
our
acquisitions of Digby Truck Lines, CX Roberson and Highway Express during the
past few years. In those acquisitions, as in this one, our goals are to continue
to broaden our customer base with quality customers, add density in our primary
traffic lanes, and gain experienced drivers. In October 2006, Celadon acquired
certain assets of Digby Truck Lines.
"Based
on
our evaluation of the business, we believe Warrior had a core group of quality
customers and drivers, but suffered from the excessive cost structure that
plagues many mid-sized carriers. We expect to integrate the acquired operations
promptly. As part of the integration process, we expect to optimize the combined
customer, driver, and equipment base to improve asset productivity. We believe
we can enhance the service to Warrior's former customers through an upgraded
equipment fleet, excellent technology, more available assets for dispatch,
and
an outstanding safety record.
"At
Celadon, our driver turnover has been significantly better than the industry
average over the past few years, and we plan to work hard to retain the Warrior
drivers. In the short-term, the additional Warrior drivers will retain their
units until seated with newer equipment. We believe this strategy will allow
us
to focus on enhancing our freight mix, assist with driver retention and minimize
the risk of unseated tractors following the acquisition. We expect the acquired
operations to be accretive beginning in the June 2007 quarter".
Celadon
Group Inc. (www.celadongroup.com), through its subsidiaries, primarily provides
long-haul, full-truckload freight service across the United States, Canada
and
Mexico. The company also owns TruckersB2B Inc. (www.truckersb2b.com) which
provides cost savings to member fleets.
###
This
press release and statements made by Celadon in its stockholder reports and
public filings, as well as oral public statements by Celadon representatives,
may contain certain forward-looking information, usually identified by words
such as "anticipates", "believes", "estimates", "projects", "expects", "plans,"
or similar expressions. These statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Such
statements are based upon the current beliefs and expectations of Celadon's
management and are subject to significant risks and uncertainties. Actual
results may differ from those set forth in forward-looking statements. With
respect to the acquisition, the risks and uncertainties include, but are not
limited to, the risk that integration of the acquired operation will not proceed
as planned; the risk that Celadon
will
lose key components of the acquired operation, including customers and drivers,
none of whom is bound to remain with the acquired operation; the risk that
Celadon will not be able to improve the profitability of the acquired operation
and operate it near the level of Celadon's profitability; the risk of receiving
less than expected for tractors and trailers expected to be disposed of and
recording a loss on disposal of such equipment; the risk of unknown liabilities
related to the acquired operation; the risk that acquired operations will not
be
accretive to earnings per share on the schedule or at all; and the risk that
integrating and managing the acquired operation will distract management from
other operations. With respect to general business operations, the following
factors, among others, could cause actual results to differ materially from
those in forward-looking statements: excess tractor and trailer capacity in
the
trucking industry; decreased demand for our services or loss of one or more
of
our major customers; surplus inventories; recessionary economic cycles and
downturns in customers' business cycles; strikes, work slow downs, or work
stoppages at our facilities, or at customer, port, or other shipping related
facilities; our ability to execute our strategic plan; increases in compensation
for and difficulty in attracting and retaining qualified drivers and independent
contractors; increases in insurance premiums and deductible amounts; elevated
experience in the frequency or severity of claims relating to accident, cargo,
workers' compensation, health, and other matters; fluctuations in claims
expenses that result from high self-insured retention amounts and differences
between estimates used in establishing and adjusting claims reserves and actual
results over time; increases or rapid fluctuations in fuel prices, as well
as
fluctuations in hedging activities and surcharge collection, the volume and
terms of diesel purchase commitments, interest rates, fuel taxes, tolls, and
license and registration fees; fluctuations in foreign currency exchange rates;
increases in the prices paid for new revenue equipment; increases in interest
rates or decreased availability of capital or other sources of financing for
revenue equipment; decreases in the resale value of our used equipment; seasonal
factors such as harsh weather conditions that increase operating costs;
competition from trucking, rail, and intermodal competitors; regulatory
requirements that increase costs or decrease efficiency, including revised
hours-of-service requirements for drivers; our ability to identify acceptable
acquisition candidates, consummate acquisitions, and integrate acquired
operations; the timing of, and any rules relating to, the opening of the border
to Mexican drivers; challenges associated with doing business internationally;
our ability to retain key employees; and the effects of actual or threatened
military action or terrorist attacks or responses, including security measures
that may impede shipping efficiency, especially at border crossings. Readers
should review and consider the various disclosures made by Celadon in this
press
release, stockholder reports, and in its Forms 10-K, 10-Q, and other public
filings. Celadon disclaims any such obligation to update or alter its
forward-looking statements whether as a result of new information, future
events, or otherwise.
Back
to Form 8-K

EX - 99 2 exhibit99pressrelease . htm EXHIBIT 99 PRESS RELEASE Exhibit 99 Press Release Exhibit 99 9503 East 33rd Street Indianapolis , IN 46235 - 4207 ( 800 ) CELADON ( 317 ) 972 - 7000 For more information : FOR IMMEDIATE RELEASE Craig M . Koven February 28 , 2007 Communications Manager ( 800 ) CELADON Ext . 7041 ( 317 ) 972 - 7041 Direct ( 317 ) 408 - 4859 Mobile ckoven@celadongroup.com CELADON GROUP ANNOUNCES ACQUISITION OF TRUCKLOAD VAN ASSETS FROM WARRIOR XPRESS INDIANAPOLIS - Celadon Group Inc . ( Nasdaq : CLDN ) announced that on Wednesday , Feb. 28 , 2007 , one of its wholly - owned subsidiaries purchased the truckload business and certain tractors and trailers of Warrior Services Inc . d / b / a Warrior Xpress ( " Warrior " ) for approximately $ 8.3 million . According to the seller ' s unaudited financial statements , the Charles City , Virginia - based transportation company generated approximately $ 20 million in gross revenue in 2006 . Steve Russell , Chairman and Chief Executive Officer , stated , " We are delighted with the Warrior acquisition and expect it to follow the pattern established in our acquisitions of Digby Truck Lines , CX Roberson and Highway Express during the past few years . In those acquisitions , as in this one , our goals are to continue to broaden our customer base with quality customers , add density in our primary traffic lanes , and gain experienced drivers . In October 2006 , Celadon acquired certain assets of Digby Truck Lines . " Based on our evaluation of the business , we believe Warrior had a core group of quality customers and drivers , but suffered from the excessive cost structure that plagues many mid - sized carriers . We expect to integrate the acquired operations promptly . As part of the integration process , we expect to optimize the combined customer , driver , and equipment base to improve asset productivity . We believe we can enhance the service to Warrior 's former customers through an upgraded equipment fleet , excellent technology , more available assets for dispatch , and an outstanding safety record . " At Celadon , our driver turnover has been significantly better than the industry average over the past few years , and we plan to work hard to retain the Warrior drivers . In the short - term , the additional Warrior drivers will retain their units until seated with newer equipment . We believe this strategy will allow us to focus on enhancing our freight mix , assist with driver retention and minimize the risk of unseated tractors following the acquisition . We expect the acquired operations to be accretive beginning in the June 2007 quarter " . Celadon Group Inc . ( www.celadongroup.com ) , through its subsidiaries , primarily provides long - haul , full - truckload freight service across the United States , Canada and Mexico . The company also owns TruckersB2B Inc . ( www.truckersb2b.com ) which provides cost savings to member fleets . # # # This press release and statements made by Celadon in its stockholder reports and public filings , as well as oral public statements by Celadon representatives , may contain certain forward - looking information , usually identified by words such as " anticipates " , " believes " , " estimates " , " projects " , " expects " , " plans , " or similar expressions . These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 . Such statements are based upon the current beliefs and expectations of Celadon 's management and are subject to significant risks and uncertainties . Actual results may differ from those set forth in forward - looking statements . With respect to the acquisition , the risks and uncertainties include , but are not limited to , the risk that integration of the acquired operation will not proceed as planned ; the risk that Celadon will lose key components of the acquired operation , including customers and drivers , none of whom is bound to remain with the acquired operation ; the risk that Celadon will not be able to improve the profitability of the acquired operation and operate it near the level of Celadon 's profitability ; the risk of receiving less than expected for tractors and trailers expected to be disposed of and recording a loss on disposal of such equipment ; the risk of unknown liabilities related to the acquired operation ; the risk that acquired operations will not be accretive to earnings per share on the schedule or at all ; and the risk that integrating and managing the acquired operation will distract management from other operations . With respect to general business operations , the following factors , among others , could cause actual results to differ materially from those in forward - looking statements : excess tractor and trailer capacity in the trucking industry ; decreased demand for our services or loss of one or more of our major customers ; surplus inventories ; recessionary economic cycles and downturns in customers ' business cycles ; strikes , work slow downs , or work stoppages at our facilities , or at customer , port , or other shipping related facilities ; our ability to execute our strategic plan ; increases in compensation for and difficulty in attracting and retaining qualified drivers and independent contractors ; increases in insurance premiums and deductible amounts ; elevated experience in the frequency or severity of claims relating to accident , cargo , workers ' compensation , health , and other matters ; fluctuations in claims expenses that result from high self - insured retention amounts and differences between estimates used in establishing and adjusting claims reserves and actual results over time ; increases or rapid fluctuations in fuel prices , as well as fluctuations in hedging activities and surcharge collection , the volume and terms of diesel purchase commitments , interest rates , fuel taxes , tolls , and license and registration fees ; fluctuations in foreign currency exchange rates ; increases in the prices paid for new revenue equipment ; increases in interest rates or decreased availability of capital or other sources of financing for revenue equipment ; decreases in the resale value of our used equipment ; seasonal factors such as harsh weather conditions that increase operating costs ; competition from trucking , rail , and intermodal competitors ; regulatory requirements that increase costs or decrease efficiency , including revised hours - of - service requirements for drivers ; our ability to identify acceptable acquisition candidates , consummate acquisitions , and integrate acquired operations ; the timing of , and any rules relating to , the opening of the border to Mexican drivers ; challenges associated with doing business internationally ; our ability to retain key employees ; and the effects of actual or threatened military action or terrorist attacks or responses , including security measures that may impede shipping efficiency , especially at border crossings . Readers should review and consider the various disclosures made by Celadon in this press release , stockholder reports , and in its Forms 10 - K , 10 - Q , and other public filings . Celadon disclaims any such obligation to update or alter its forward - looking statements whether as a result of new information , future events , or otherwise . Back to Form 8 - K
O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY O O O O O O O O O O O B-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B-Generic_Info.ANNUAL_REVENUES I-Generic_Info.ANNUAL_REVENUES O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B-Parties.BUYING_COMPANY O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O