Simon Transportation Services has reported a revenue increase of 12.1% to $73.4 million for its first quarter 2002, up from $65.5 million from the same quarter of 2001. The company reports a loss of $8.4 million or $1.38 per share on this revenue. In addition, Simon made a $4.4 million adjustment for accrued loss on guaranteed equipment lease residual values resulting in an additional loss of 71 cents per share. Results for the first quarter 2001 showed a net loss of $3 million, 49 cents per share.
The company continues to face reduced demand for transportation services, a large number of tractors without drivers, and falling residual value for used tractors and trailers, says Jon Isaacson, chief executive officer. In addition, the company has had to work through a transition involving the acquisition of two other companies as well as cope with rising insurance costs and driver wages. All these factors have impacted Simon’s liquidity, Isaacson says.