Allied Holdings Reports First Quarter Results

Apr 24, 2001, 01:00 ET from Allied Holdings, Inc.

    DECATUR, Ga., April 24 /PRNewswire Interactive News Release/ -- Allied
 Holdings, Inc. (NYSE:   AHI) today reported results for the first quarter ended
 March 31, 2001.  Revenues for the first quarter of 2001 were $218.2 million,
 compared with revenues of $282.9 million for the first quarter last year.  The
 Company experienced a net loss of $18.9 million, or $2.35 per share, during
 the first quarter of 2001, versus a loss of $1.0 million, or $0.13 per share,
 during the first quarter last year.  Excluding severance and debt amendment
 costs expensed during the first quarter of 2001, the net loss was
 $15.2 million, or $1.90 per share.
     Revenues and operating results for the Allied Automotive Group (AAG) are
 seasonally lower in the first quarter due to manufacturing plant downtime.
 However, new vehicle production in the United States and Canada in the first
 quarter of 2001 was at its lowest level since 1993 in a first quarter without
 labor disputes.  Production for the Big Three automakers -- all major
 customers of AAG -- declined by 23 percent.  The production cuts helped new
 vehicle inventories decline from 77 days at year-end to 63 days at the end of
 the first quarter.  New vehicle inventories are now just slightly higher than
 the 61-day supply at the end of the first quarter in 2000.
     Allied Automotive Group's vehicle deliveries declined 26 percent for the
 first quarter.  Lost revenue from this decline was partially offset by an
 increase in the revenue generated per vehicle delivered, primarily through
 fuel surcharges.  The Company estimates that the volume decline in the first
 quarter of 2001, at an average margin per unit, reduced net earnings by
 $15.4 million.
     Due to the significant volume decline, Allied Holdings and its
 subsidiaries have implemented a program to achieve a $25 million reduction in
 overhead expenses.  During the first quarter of 2001, the Company recorded an
 after-tax charge of $3.2 million, or $0.40 per share, for severance and
 workforce reduction expenses relating to its overhead reduction program.
     "We continue to aggressively implement cost savings measures through
 reductions in our employee base and elimination of discretionary spending,"
 said Robert J. Rutland, chairman and CEO of Allied Holdings, Inc.  "We
 currently have achieved more than 80 percent of our overhead reduction goal
 and will pursue additional savings until our goal is achieved."
     The Company recently amended its revolving credit facility and its senior
 subordinated notes to avoid potential defaults relating to its financial
 covenants.  The maturity date of the amended revolving credit facility has
 been accelerated from September 30, 2002 to January 31, 2002.  The Company is
 engaged in serious discussions with a number of lenders to replace its
 revolving credit facility, and completion of the financing is anticipated by
 year-end.  The Company expensed approximately $0.5 million, or $0.06 per
 share, of administrative costs related to the amendments during the first
 quarter of 2001.
     "Certain of the financial covenants contained in our revolving credit
 facility and senior subordinated notes were based on operating earnings.  The
 unexpected volume decline of 18.5 percent in the fourth quarter of 2000
 followed by a 26 percent decline in the first quarter of 2001 -- the largest
 volume decline in the Company's history -- resulted in a significant reduction
 in our operating earnings, which required us to amend these debt agreements,"
 Rutland said.  "Even though operating earnings declined, we immediately cut
 capital spending, reduced operating costs, and focused on managing working
 capital.  As a result, long-term debt only increased by $7 million during the
 past six months."
     Revenues for the Axis Group in the first quarter of 2001 were up 5 percent
 to $6.2 million and earnings before interest and taxes, including the earnings
 of joint ventures, increased $0.2 million to $0.8 million.  The business of
 Axis is not as dependent on North American new vehicle production, so Axis was
 able to continue to grow revenues and earnings from its secondary market
 activities and its international ventures.
 
     2001 Outlook
     The Company expects to continue being impacted by the ongoing weakness in
 the automotive marketplace.  The Company expects vehicle deliveries to decline
 approximately 15 percent in the second quarter followed by an approximate
 10 percent decline in the third quarter.  Deliveries are expected to stabilize
 by the fourth quarter, increasing approximately 2 percent.  Based on these
 estimates, the Company expects to post an additional net loss in the range of
 $5 to $10 million for the last three quarters of 2001.  This includes
 approximately $5 million of additional interest and other costs related to the
 recently negotiated debt amendments.
     The Company will continue limiting capital expenditures with anticipated
 spending for 2001 reduced to between $20 to $25 million.  This should enable
 the Company to generate positive cash flow in 2001 of up to $10 million.
     "While manufacturing plant downtime started to stabilize in March, we
 expect market conditions to continue to be depressed for the next six months,"
 Rutland said.  "The Automotive Group currently has approximately 15 percent of
 its drivers on layoff and will continue to implement manpower and utilization
 plans that respond to market conditions.  Allied Holdings and each of its
 subsidiaries are focused on operating in a manner that minimizes the impact of
 reduced volumes until more favorable economic conditions occur."
 
     About Allied Holdings, Inc.
     Allied Holdings, Inc. is the parent company of several subsidiaries
 engaged in providing logistics, distribution and transportation services to
 the automotive industry.  The services of Allied's subsidiaries span the
 entire finished vehicle distribution continuum, and include logistics, car-
 hauling, intramodal transport, inspection, accessorization, and dealer prep.
 Allied, through its subsidiaries, is the largest company in North America
 specializing in the delivery of new and used vehicles in the global
 marketplace.
     Allied Automotive Group operates approximately 4,300 modern tractor-
 trailers out of 102 terminal locations that crisscross the United States and
 Canada.  The Company partners with all major manufacturers, domestic and
 import, to deliver more than 11 million vehicles a year.  This includes
 transporting vehicles to dealers from plants, rail ramps, ports, and auctions,
 and providing vehicle rail-car loading and unloading services.
     Axis Group is the global management arm of Allied Holdings.  With its
 international service capabilities, Axis currently has operations in the
 United States, Canada, Mexico, Brazil, South Africa, Europe, and the United
 Kingdom.  Axis Group provides logistics solutions and services to the
 automotive industry, with a primary focus on outbound finished vehicle
 distribution and related activities.
 
     Statements in this press release that are not strictly historical are
 "forward-looking" statements.  Such statements include, without limitations,
 any statements containing the words "believe," "anticipate," "estimate,"
 "expect," "intend," "plan," "seek," and similar expressions.  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 extended or more
 severe downturns in new vehicle production or sales, the highly competitive
 nature of the automotive distribution industry, the ability to comply with the
 terms of its debt agreements, the ability of the Company to obtain financing
 in the future, the company's highly leveraged financial position, 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, and changes in vehicle sizes and weights which may impact vehicle
 deliveries per load.  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.
     NOTE: The information in this press release will be discussed by
 management today on a conference call that can be accessed at the following
 links: www.streetevents.com or www.alliedholdings.com beginning at
 10:30 a.m. EST.
 
 
                      ALLIED HOLDINGS, INC. AND SUBSIDIARIES
                        2001 FIRST QUARTER EARNINGS RELEASE
                       (In Thousands, Except Per Share Data)
 
 
 
                                                  For the Three Months Ended
                                                           March 31
                                                    2001              2000
     Revenues                                      $218,179          $282,884
 
     Net loss                                      ($18,862)          ($1,035)
 
     Loss per share - basic and diluted              ($2.35)           ($0.13)
 
     Weighted average common shares
        outstanding - basic and diluted               8,020             7,898
 
 
 
                      ALLIED HOLDINGS, INC. AND SUBSIDIARIES
                            CONSOLIDATED BALANCE SHEETS
                                  (In Thousands)
 
 
                                                   March 31        December 31
                                                     2001              2000
                                                  (Unaudited)
                 ASSETS
 
     CURRENT ASSETS:
           Cash and cash equivalents                 $7,869            $2,373
           Short-term investments                    68,885            59,892
           Receivables, net of allowance
            for doubtful accounts                    97,874           114,266
           Inventories                                7,099             7,415
           Deferred tax assets                        9,616            10,191
           Prepayments and other current
            assets                                   18,712            19,355
                  Total current assets              210,055           213,492
 
     PROPERTY AND EQUIPMENT, NET                    250,592           259,362
 
     OTHER ASSETS:
           Goodwill, net                             93,075            95,159
           Other                                     44,961            42,526
                  Total other assets                138,036           137,685
                  Total assets                     $598,683          $610,539
 
      LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
           Current maturities of long-term
            debt                                   $148,170              $109
           Trade accounts payable                    41,320            45,975
           Accrued liabilities                       90,469            79,487
                  Total current liabilities         279,959           125,571
 
     LONG-TERM DEBT, less current maturities        190,008           324,876
 
     POSTRETIREMENT BENEFITS OTHER THAN
      PENSIONS                                        9,768             9,943
 
     DEFERRED INCOME TAXES                            7,885            21,414
 
     OTHER LONG-TERM LIABILITIES                     74,344            69,594
 
     STOCKHOLDERS' EQUITY:
           Common stock, no par value;
            20,000 shares authorized,
            8,210 and 8,187 shares
            outstanding at March 31,
            2001 and December 31,
            2000, respectively                            0                 0
           Additional paid-in capital                46,144            45,990
           Retained earnings                          1,740            20,602
           Cumulative other comprehensive
            income, net of tax                      (10,458)           (6,744)
           Common stock in treasury, at
            cost, 139 shares at March 31,
            2001 and December 31, 2000                 (707)             (707)
                  Total stockholders' equity         36,719            59,141
                  Total liabilities and
                   stockholders' equity            $598,683          $610,539
 
 
 
                      ALLIED HOLDINGS, INC. AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In Thousands, Except Per Share Data)
 
 
 
                                                   For the Three Months Ended
                                                            March 31
                                                    2001              2000
                                                 (Unaudited)       (Unaudited)
 
     REVENUES                                      $218,179          $282,884
 
     OPERATING EXPENSES:
          Salaries, wages and fringe
           benefits                                 131,717           154,838
          Operating supplies and expenses            41,442            51,582
          Purchased transportation                   23,296            27,153
          Insurance and claims                       13,289            12,056
          Operating taxes and licenses                8,626            10,859
          Depreciation and amortization              15,024            15,242
          Rents                                       2,070             2,326
          Communications and utilities                2,038             2,209
          Other operating expenses                    3,856             2,658
                    Total operating expenses        241,358           278,923
                    Operating (loss) income         (23,179)            3,961
 
     OTHER INCOME (EXPENSE):
          Equity in earnings of joint
           ventures, net of tax                       1,209               901
          Interest expense                           (8,466)           (8,401)
          Interest income                               964             1,320
                                                     (6,293)           (6,180)
 
     LOSS BEFORE INCOME TAXES                       (29,472)           (2,219)
 
     INCOME TAX  BENEFIT                             10,610             1,184
 
     NET LOSS                                      ($18,862)          ($1,035)
 
 
 
     PER COMMON SHARE - BASIC AND DILUTED            ($2.35)           ($0.13)
 
     COMMON SHARES OUTSTANDING - BASIC AND
      DILUTED                                         8,020             7,898
 
 
 
 
                       ALLIED HOLDINGS, INC. AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (In Thousands)
 
 
 
                                                   For the Three Months Ended
                                                            March 31
                                                     2001               2000
                                                  (Unaudited)       (Unaudited)
     CASH FLOWS FROM OPERATING ACTIVITIES:
        Net loss                                    ($18,862)          ($1,035)
        Adjustments to reconcile net loss
         to net cash provided by operating
         activities:
            Depreciation and amortization             15,024            15,242
            (Gain) loss on sale of
             property and equipment                     (168)              103
            Deferred income taxes                    (10,593)             (374)
            Compensation expense related
             to stock options and grants                  69               237
            Equity in earnings of joint
             ventures                                 (1,209)             (901)
            Amortization of Teamsters
             Union signing bonus                         600               606
            Change in operating assets and
             liabilities excluding
              effect of businesses
               acquired:
                 Receivables, net of
                  allowance for doubtful accounts     15,161            (8,007)
                 Inventories                             232                 5
                 Prepayments and other
                  current assets                         504            (4,059)
                 Trade accounts payable               (4,348)             (215)
                 Accrued liabilities                  15,856             8,553
                    Total adjustments                 31,128            11,190
                    Net cash provided by
                     operating activities             12,266            10,155
 
 
     CASH FLOWS FROM INVESTING ACTIVITIES:
        Purchases of property and equipment           (7,579)           (3,241)
        Proceeds from sale of property and
         equipment                                       436                44
        Purchase of business, net of cash  acquired        0            (8,185)
        Investment in joint ventures                    (464)                0
        Increase in short-term investments            (8,993)           (9,267)
        Increase in the cash surrender
         value of life insurance                        (120)             (120)
                    Net cash used in
                     investing activities            (16,720)          (20,769)
 
 
     CASH FLOWS FROM FINANCING ACTIVITIES:
        Proceeds (repayments) from
         issuance of long-term debt, net              13,193               (79)
        Proceeds from issuance of common stock            85               218
        Repurchase of common stock                         0              (282)
        Other, net                                    (2,260)            1,653
                    Net cash provided by
                     financing activities             11,018             1,510
 
 
     EFFECT OF EXCHANGE RATE CHANGES ON
      CASH AND CASH EQUIVALENTS                       (1,068)             (545)
 
 
     NET INCREASE (DECREASE) IN CASH AND
      CASH EQUIVALENTS                                 5,496            (9,649)
 
 
     CASH AND CASH EQUIVALENTS AT
      BEGINNING OF YEAR                                2,373            13,984
 
 
     CASH AND CASH EQUIVALENTS AT END OF
      PERIOD                                          $7,869            $4,335
 
 
 
                      ALLIED HOLDINGS, INC. AND SUBSIDIARIES
                        2001 FIRST QUARTER EARNINGS RELEASE
                                  OPERATING DATA
                                    (UNAUDITED)
 
                                                    THREE MONTHS ENDED
                                                         MARCH 31
                                                   2001              2000
 
     ALLIED HOLDINGS, EXCLUDING AAG -
      CANADA & AXIS GROUP:
     REVENUES                                  $175,143,000      $229,045,000
 
     OPERATING (LOSS) INCOME                   ($20,923,000)       $1,383,000
 
     OPERATING RATIO                                111.95%            99.40%
 
     VEHICLES DELIVERED                           1,829,222         2,512,650
 
     LOADS DELIVERED                                226,307           311,812
 
     VEHICLES PER LOAD                                 8.08              8.06
 
     REVENUE PER VEHICLE                             $95.75            $91.16
 
     PERCENT DAMAGE FREE DELIVERY                     99.6%             99.6%
 
     NUMBER OF
         AVERAGE ACTIVE RIGS                          3,415             4,253
         AVERAGE EMPLOYEES
            DRIVERS                                   3,892             5,242
            OTHERS                                    2,373             2,483
 
     ALLIED AUTOMOTIVE GROUP - CANADA:
     REVENUES                                   $36,881,000       $47,946,000
 
     OPERATING (LOSS) INCOME                    ($1,804,000)       $2,881,000
 
     OPERATING RATIO                                104.89%            93.99%
 
     VEHICLES DELIVERED                             534,231           688,100
 
     LOADS DELIVERED                                 70,293            87,322
 
     VEHICLES PER LOAD                                 7.60              7.88
 
     REVENUE PER VEHICLE                             $69.04            $69.68
 
     PERCENT DAMAGE FREE DELIVERY                     99.7%             99.7%
 
     NUMBER OF
         AVERAGE ACTIVE RIGS                            862               832
         AVERAGE EMPLOYEES
            DRIVERS                                   1,223             1,267
            OTHERS                                      422               573
 
     AXIS GROUP:
     REVENUES                                    $6,155,000        $5,893,000
 
     OPERATING LOSS                               ($452,000)        ($303,000)
     Equity in earnings of joint ventures        $1,726,000        $1,289,000
     Income taxes on joint ventures               ($517,000)        ($388,000)
     EQUITY IN EARNINGS OF JOINT VENTURES,
      NET OF TAX                                 $1,209,000          $901,000
     EARNINGS BEFORE INTEREST AND TAXES            $757,000          $598,000
 
 
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SOURCE Allied Holdings, Inc.
    DECATUR, Ga., April 24 /PRNewswire Interactive News Release/ -- Allied
 Holdings, Inc. (NYSE:   AHI) today reported results for the first quarter ended
 March 31, 2001.  Revenues for the first quarter of 2001 were $218.2 million,
 compared with revenues of $282.9 million for the first quarter last year.  The
 Company experienced a net loss of $18.9 million, or $2.35 per share, during
 the first quarter of 2001, versus a loss of $1.0 million, or $0.13 per share,
 during the first quarter last year.  Excluding severance and debt amendment
 costs expensed during the first quarter of 2001, the net loss was
 $15.2 million, or $1.90 per share.
     Revenues and operating results for the Allied Automotive Group (AAG) are
 seasonally lower in the first quarter due to manufacturing plant downtime.
 However, new vehicle production in the United States and Canada in the first
 quarter of 2001 was at its lowest level since 1993 in a first quarter without
 labor disputes.  Production for the Big Three automakers -- all major
 customers of AAG -- declined by 23 percent.  The production cuts helped new
 vehicle inventories decline from 77 days at year-end to 63 days at the end of
 the first quarter.  New vehicle inventories are now just slightly higher than
 the 61-day supply at the end of the first quarter in 2000.
     Allied Automotive Group's vehicle deliveries declined 26 percent for the
 first quarter.  Lost revenue from this decline was partially offset by an
 increase in the revenue generated per vehicle delivered, primarily through
 fuel surcharges.  The Company estimates that the volume decline in the first
 quarter of 2001, at an average margin per unit, reduced net earnings by
 $15.4 million.
     Due to the significant volume decline, Allied Holdings and its
 subsidiaries have implemented a program to achieve a $25 million reduction in
 overhead expenses.  During the first quarter of 2001, the Company recorded an
 after-tax charge of $3.2 million, or $0.40 per share, for severance and
 workforce reduction expenses relating to its overhead reduction program.
     "We continue to aggressively implement cost savings measures through
 reductions in our employee base and elimination of discretionary spending,"
 said Robert J. Rutland, chairman and CEO of Allied Holdings, Inc.  "We
 currently have achieved more than 80 percent of our overhead reduction goal
 and will pursue additional savings until our goal is achieved."
     The Company recently amended its revolving credit facility and its senior
 subordinated notes to avoid potential defaults relating to its financial
 covenants.  The maturity date of the amended revolving credit facility has
 been accelerated from September 30, 2002 to January 31, 2002.  The Company is
 engaged in serious discussions with a number of lenders to replace its
 revolving credit facility, and completion of the financing is anticipated by
 year-end.  The Company expensed approximately $0.5 million, or $0.06 per
 share, of administrative costs related to the amendments during the first
 quarter of 2001.
     "Certain of the financial covenants contained in our revolving credit
 facility and senior subordinated notes were based on operating earnings.  The
 unexpected volume decline of 18.5 percent in the fourth quarter of 2000
 followed by a 26 percent decline in the first quarter of 2001 -- the largest
 volume decline in the Company's history -- resulted in a significant reduction
 in our operating earnings, which required us to amend these debt agreements,"
 Rutland said.  "Even though operating earnings declined, we immediately cut
 capital spending, reduced operating costs, and focused on managing working
 capital.  As a result, long-term debt only increased by $7 million during the
 past six months."
     Revenues for the Axis Group in the first quarter of 2001 were up 5 percent
 to $6.2 million and earnings before interest and taxes, including the earnings
 of joint ventures, increased $0.2 million to $0.8 million.  The business of
 Axis is not as dependent on North American new vehicle production, so Axis was
 able to continue to grow revenues and earnings from its secondary market
 activities and its international ventures.
 
     2001 Outlook
     The Company expects to continue being impacted by the ongoing weakness in
 the automotive marketplace.  The Company expects vehicle deliveries to decline
 approximately 15 percent in the second quarter followed by an approximate
 10 percent decline in the third quarter.  Deliveries are expected to stabilize
 by the fourth quarter, increasing approximately 2 percent.  Based on these
 estimates, the Company expects to post an additional net loss in the range of
 $5 to $10 million for the last three quarters of 2001.  This includes
 approximately $5 million of additional interest and other costs related to the
 recently negotiated debt amendments.
     The Company will continue limiting capital expenditures with anticipated
 spending for 2001 reduced to between $20 to $25 million.  This should enable
 the Company to generate positive cash flow in 2001 of up to $10 million.
     "While manufacturing plant downtime started to stabilize in March, we
 expect market conditions to continue to be depressed for the next six months,"
 Rutland said.  "The Automotive Group currently has approximately 15 percent of
 its drivers on layoff and will continue to implement manpower and utilization
 plans that respond to market conditions.  Allied Holdings and each of its
 subsidiaries are focused on operating in a manner that minimizes the impact of
 reduced volumes until more favorable economic conditions occur."
 
     About Allied Holdings, Inc.
     Allied Holdings, Inc. is the parent company of several subsidiaries
 engaged in providing logistics, distribution and transportation services to
 the automotive industry.  The services of Allied's subsidiaries span the
 entire finished vehicle distribution continuum, and include logistics, car-
 hauling, intramodal transport, inspection, accessorization, and dealer prep.
 Allied, through its subsidiaries, is the largest company in North America
 specializing in the delivery of new and used vehicles in the global
 marketplace.
     Allied Automotive Group operates approximately 4,300 modern tractor-
 trailers out of 102 terminal locations that crisscross the United States and
 Canada.  The Company partners with all major manufacturers, domestic and
 import, to deliver more than 11 million vehicles a year.  This includes
 transporting vehicles to dealers from plants, rail ramps, ports, and auctions,
 and providing vehicle rail-car loading and unloading services.
     Axis Group is the global management arm of Allied Holdings.  With its
 international service capabilities, Axis currently has operations in the
 United States, Canada, Mexico, Brazil, South Africa, Europe, and the United
 Kingdom.  Axis Group provides logistics solutions and services to the
 automotive industry, with a primary focus on outbound finished vehicle
 distribution and related activities.
 
     Statements in this press release that are not strictly historical are
 "forward-looking" statements.  Such statements include, without limitations,
 any statements containing the words "believe," "anticipate," "estimate,"
 "expect," "intend," "plan," "seek," and similar expressions.  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 extended or more
 severe downturns in new vehicle production or sales, the highly competitive
 nature of the automotive distribution industry, the ability to comply with the
 terms of its debt agreements, the ability of the Company to obtain financing
 in the future, the company's highly leveraged financial position, 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, and changes in vehicle sizes and weights which may impact vehicle
 deliveries per load.  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.
     NOTE: The information in this press release will be discussed by
 management today on a conference call that can be accessed at the following
 links: www.streetevents.com or www.alliedholdings.com beginning at
 10:30 a.m. EST.
 
 
                      ALLIED HOLDINGS, INC. AND SUBSIDIARIES
                        2001 FIRST QUARTER EARNINGS RELEASE
                       (In Thousands, Except Per Share Data)
 
 
 
                                                  For the Three Months Ended
                                                           March 31
                                                    2001              2000
     Revenues                                      $218,179          $282,884
 
     Net loss                                      ($18,862)          ($1,035)
 
     Loss per share - basic and diluted              ($2.35)           ($0.13)
 
     Weighted average common shares
        outstanding - basic and diluted               8,020             7,898
 
 
 
                      ALLIED HOLDINGS, INC. AND SUBSIDIARIES
                            CONSOLIDATED BALANCE SHEETS
                                  (In Thousands)
 
 
                                                   March 31        December 31
                                                     2001              2000
                                                  (Unaudited)
                 ASSETS
 
     CURRENT ASSETS:
           Cash and cash equivalents                 $7,869            $2,373
           Short-term investments                    68,885            59,892
           Receivables, net of allowance
            for doubtful accounts                    97,874           114,266
           Inventories                                7,099             7,415
           Deferred tax assets                        9,616            10,191
           Prepayments and other current
            assets                                   18,712            19,355
                  Total current assets              210,055           213,492
 
     PROPERTY AND EQUIPMENT, NET                    250,592           259,362
 
     OTHER ASSETS:
           Goodwill, net                             93,075            95,159
           Other                                     44,961            42,526
                  Total other assets                138,036           137,685
                  Total assets                     $598,683          $610,539
 
      LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
           Current maturities of long-term
            debt                                   $148,170              $109
           Trade accounts payable                    41,320            45,975
           Accrued liabilities                       90,469            79,487
                  Total current liabilities         279,959           125,571
 
     LONG-TERM DEBT, less current maturities        190,008           324,876
 
     POSTRETIREMENT BENEFITS OTHER THAN
      PENSIONS                                        9,768             9,943
 
     DEFERRED INCOME TAXES                            7,885            21,414
 
     OTHER LONG-TERM LIABILITIES                     74,344            69,594
 
     STOCKHOLDERS' EQUITY:
           Common stock, no par value;
            20,000 shares authorized,
            8,210 and 8,187 shares
            outstanding at March 31,
            2001 and December 31,
            2000, respectively                            0                 0
           Additional paid-in capital                46,144            45,990
           Retained earnings                          1,740            20,602
           Cumulative other comprehensive
            income, net of tax                      (10,458)           (6,744)
           Common stock in treasury, at
            cost, 139 shares at March 31,
            2001 and December 31, 2000                 (707)             (707)
                  Total stockholders' equity         36,719            59,141
                  Total liabilities and
                   stockholders' equity            $598,683          $610,539
 
 
 
                      ALLIED HOLDINGS, INC. AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In Thousands, Except Per Share Data)
 
 
 
                                                   For the Three Months Ended
                                                            March 31
                                                    2001              2000
                                                 (Unaudited)       (Unaudited)
 
     REVENUES                                      $218,179          $282,884
 
     OPERATING EXPENSES:
          Salaries, wages and fringe
           benefits                                 131,717           154,838
          Operating supplies and expenses            41,442            51,582
          Purchased transportation                   23,296            27,153
          Insurance and claims                       13,289            12,056
          Operating taxes and licenses                8,626            10,859
          Depreciation and amortization              15,024            15,242
          Rents                                       2,070             2,326
          Communications and utilities                2,038             2,209
          Other operating expenses                    3,856             2,658
                    Total operating expenses        241,358           278,923
                    Operating (loss) income         (23,179)            3,961
 
     OTHER INCOME (EXPENSE):
          Equity in earnings of joint
           ventures, net of tax                       1,209               901
          Interest expense                           (8,466)           (8,401)
          Interest income                               964             1,320
                                                     (6,293)           (6,180)
 
     LOSS BEFORE INCOME TAXES                       (29,472)           (2,219)
 
     INCOME TAX  BENEFIT                             10,610             1,184
 
     NET LOSS                                      ($18,862)          ($1,035)
 
 
 
     PER COMMON SHARE - BASIC AND DILUTED            ($2.35)           ($0.13)
 
     COMMON SHARES OUTSTANDING - BASIC AND
      DILUTED                                         8,020             7,898
 
 
 
 
                       ALLIED HOLDINGS, INC. AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (In Thousands)
 
 
 
                                                   For the Three Months Ended
                                                            March 31
                                                     2001               2000
                                                  (Unaudited)       (Unaudited)
     CASH FLOWS FROM OPERATING ACTIVITIES:
        Net loss                                    ($18,862)          ($1,035)
        Adjustments to reconcile net loss
         to net cash provided by operating
         activities:
            Depreciation and amortization             15,024            15,242
            (Gain) loss on sale of
             property and equipment                     (168)              103
            Deferred income taxes                    (10,593)             (374)
            Compensation expense related
             to stock options and grants                  69               237
            Equity in earnings of joint
             ventures                                 (1,209)             (901)
            Amortization of Teamsters
             Union signing bonus                         600               606
            Change in operating assets and
             liabilities excluding
              effect of businesses
               acquired:
                 Receivables, net of
                  allowance for doubtful accounts     15,161            (8,007)
                 Inventories                             232                 5
                 Prepayments and other
                  current assets                         504            (4,059)
                 Trade accounts payable               (4,348)             (215)
                 Accrued liabilities                  15,856             8,553
                    Total adjustments                 31,128            11,190
                    Net cash provided by
                     operating activities             12,266            10,155
 
 
     CASH FLOWS FROM INVESTING ACTIVITIES:
        Purchases of property and equipment           (7,579)           (3,241)
        Proceeds from sale of property and
         equipment                                       436                44
        Purchase of business, net of cash  acquired        0            (8,185)
        Investment in joint ventures                    (464)                0
        Increase in short-term investments            (8,993)           (9,267)
        Increase in the cash surrender
         value of life insurance                        (120)             (120)
                    Net cash used in
                     investing activities            (16,720)          (20,769)
 
 
     CASH FLOWS FROM FINANCING ACTIVITIES:
        Proceeds (repayments) from
         issuance of long-term debt, net              13,193               (79)
        Proceeds from issuance of common stock            85               218
        Repurchase of common stock                         0              (282)
        Other, net                                    (2,260)            1,653
                    Net cash provided by
                     financing activities             11,018             1,510
 
 
     EFFECT OF EXCHANGE RATE CHANGES ON
      CASH AND CASH EQUIVALENTS                       (1,068)             (545)
 
 
     NET INCREASE (DECREASE) IN CASH AND
      CASH EQUIVALENTS                                 5,496            (9,649)
 
 
     CASH AND CASH EQUIVALENTS AT
      BEGINNING OF YEAR                                2,373            13,984
 
 
     CASH AND CASH EQUIVALENTS AT END OF
      PERIOD                                          $7,869            $4,335
 
 
 
                      ALLIED HOLDINGS, INC. AND SUBSIDIARIES
                        2001 FIRST QUARTER EARNINGS RELEASE
                                  OPERATING DATA
                                    (UNAUDITED)
 
                                                    THREE MONTHS ENDED
                                                         MARCH 31
                                                   2001              2000
 
     ALLIED HOLDINGS, EXCLUDING AAG -
      CANADA & AXIS GROUP:
     REVENUES                                  $175,143,000      $229,045,000
 
     OPERATING (LOSS) INCOME                   ($20,923,000)       $1,383,000
 
     OPERATING RATIO                                111.95%            99.40%
 
     VEHICLES DELIVERED                           1,829,222         2,512,650
 
     LOADS DELIVERED                                226,307           311,812
 
     VEHICLES PER LOAD                                 8.08              8.06
 
     REVENUE PER VEHICLE                             $95.75            $91.16
 
     PERCENT DAMAGE FREE DELIVERY                     99.6%             99.6%
 
     NUMBER OF
         AVERAGE ACTIVE RIGS                          3,415             4,253
         AVERAGE EMPLOYEES
            DRIVERS                                   3,892             5,242
            OTHERS                                    2,373             2,483
 
     ALLIED AUTOMOTIVE GROUP - CANADA:
     REVENUES                                   $36,881,000       $47,946,000
 
     OPERATING (LOSS) INCOME                    ($1,804,000)       $2,881,000
 
     OPERATING RATIO                                104.89%            93.99%
 
     VEHICLES DELIVERED                             534,231           688,100
 
     LOADS DELIVERED                                 70,293            87,322
 
     VEHICLES PER LOAD                                 7.60              7.88
 
     REVENUE PER VEHICLE                             $69.04            $69.68
 
     PERCENT DAMAGE FREE DELIVERY                     99.7%             99.7%
 
     NUMBER OF
         AVERAGE ACTIVE RIGS                            862               832
         AVERAGE EMPLOYEES
            DRIVERS                                   1,223             1,267
            OTHERS                                      422               573
 
     AXIS GROUP:
     REVENUES                                    $6,155,000        $5,893,000
 
     OPERATING LOSS                               ($452,000)        ($303,000)
     Equity in earnings of joint ventures        $1,726,000        $1,289,000
     Income taxes on joint ventures               ($517,000)        ($388,000)
     EQUITY IN EARNINGS OF JOINT VENTURES,
      NET OF TAX                                 $1,209,000          $901,000
     EARNINGS BEFORE INTEREST AND TAXES            $757,000          $598,000
 
 
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 SOURCE  Allied Holdings, Inc.