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Pacer International Reports Fourth Quarter Results

  Pacer International Reports Fourth Quarter Results

Business Wire

DUBLIN, Ohio -- February 7, 2013

Pacer International, Inc. (Nasdaq: PACR), the asset-light North American
freight transportation and logistics services provider, today reported
financial results for the three-month period and the year ended December31,
2012.

FOURTH QUARTER RESULTS

  *Income from operations increased 9.0%, excluding the impact of realignment
    expense of $0.8 million and $0.3 million in 2012 and 2011, respectively.
    Intermodal income from operations increased $2.3 million and logistics
    income from operations decreased $1.4 million;
  *Earnings per share improved by $0.03 to $0.06 in 2012. Excluding the
    effect of the 2012 realignment expense of $0.02 per share, earnings per
    share was $0.08 in 2012;
  *Intermodal revenues improved by $7.2 million or 2.5% while logistics
    revenues declined by 16.1% to $57.3 million. Total revenues decreased by
    1.7% to $351.9 million;
  *Intermodal gross margin improved by $2.7 million and logistics gross
    margin declined by $2.5 million. Total gross margin percentage increased
    by 20 basis points;
  *Net income increased $1.1 million to $2.2 million;
  *Cash provided by operating activities increased by $2.9 million or 40.8%,
    from $7.1 million in the fourth quarter of 2011 to $10.0 million in the
    fourth quarter of 2012.

(In millions, except for per share data)

                2012                                                         2011
                     Q1           Q2           Q3           Q4              Q4
Revenue              $ 345.9         $ 368.3         $ 348.9         $ 351.9         $ 358.0
Gross                $ 31.9          $ 32.4          $ 31.7          $ 35.9          $ 35.7
margin
Gross                9.2     %       8.8     %       9.1     %       10.2    %       10.0    %
margin %
SG&A                 $ 31.9          $ 29.9          $ 29.6          $ 32.0          $ 31.5
Income
from                 —               2.5             2.3             4.1             4.2
operations
Net income           (0.3    )       1.3             1.1             2.2             1.1
(loss)
Earnings
(loss) per           $ (0.01 )       $ 0.04          $ 0.03          $ 0.06          $ 0.03
share
                                                                                             
                                                                                             

“The quarter was much improved from the previous three as we were focused on
improving under-performing traffic corridors and reducing controllable costs
to help offset rising external purchased transportation costs. We are also
excited about the new opportunities created by our new cross border auto
agreement with the Union Pacific. We will pursue automotive parts shipments as
a retail provider of door-to-door intermodal services and continue the
development of our east-west intermodal business to grow our intermodal
segment,” said Daniel W. Avramovich, Chairman and Chief Executive Officer.

"We recently implemented a realignment within our intermodal business. The new
alignment will increase organizational focus on our retail intermodal and
related services, enhance the service we provide to our customers and allow us
to focus on delivering consistent and improved financial results," said Paul
Svindland, Chief Operating Officer.

“It was a good quarter as both our consolidated net income and gross margin
improved year over year. We believe the actions we have taken to combat
competitive pricing environments and rising rail costs have positioned us well
going forward. We also believe the talented people joining our logistics
segment and the new business licenses obtained in China will help us continue
to improve our future performance," said John J. Hafferty, Chief Financial
Officer.

ANNUAL RESULTS

  *Income from operations decreased $18.1 million. Income from operations in
    the intermodal segment, excluding from 2011 results the gain on sale of
    railcar assets of $4.7 million and the $7.3 million impact of the
    previously announced reduction in volume from an ocean carrier customer,
    increased year over year by $1.8 million. Total intermodal income from
    operations decreased $10.2 million and logistics income from operations
    decreased $8.2 million;
  *Earnings per share decreased from $0.40 in the 2011 period to $0.12 in the
    2012 period;
  *Selling, general and administrative expenses decreased by $8.4 million
    year over year;
  *Intermodal revenues improved by $4.3 million or 0.4%. Excluding the impact
    from the reduction in volume from an ocean carrier customer of $76.5
    million in 2011, intermodal revenues increased by 7.4% to $1,179.6
    million. Logistics revenues declined by 21.5% to $238.3 million. Overall,
    revenues decreased by 4.3% to $1,415.0 million;
  *Intermodal gross margin declined by $10.4 million. Excluding the impact
    from the reduction in volume from the ocean carrier customer, intermodal
    gross margin decreased by $3.1 million. Logistics gross margin declined by
    $11.7 million;
  *Net income decreased $9.6 million to $4.3 million.

(In millions, except for per share data)

                                2012            2011
Revenue                                  $ 1,415.0           $ 1,478.5
Gross margin                             $ 131.9             $ 154.0
Gross margin %                           9.3       %         10.4      %
SG&A                                     $ 123.4             $ 131.8
Income from operations                   8.9                 27.0
Net income                               4.3                 13.9
Earnings per share                       $ 0.12              $ 0.40
                                                                       
                                                                       

A tabular reconciliation detailing the adjustments made to arrive at the
adjusted financial results set forth above and elsewhere in this press release
from financial results determined in accordance with accounting principles
generally accepted in the United States of America (“GAAP”) is contained in
the reconciliation schedules attached to this press release.

Certain reclassifications have been made to the 2011 operating expenses in
order to conform to the 2012 presentation.The reclassifications had no impact
on previously reported income. A tabular reconciliation detailing the
reclassification amounts for 2011 is contained in the schedules attached to
this press release.

2013 GUIDANCE

We are reconfirming our 2013 guidance and we expect earnings per share in 2013
to range between $0.25 and $0.35.

CONFERENCE CALL TODAY Pacer International will hold a conference call for
investors, analysts, business and trade media, and other interested parties at
8:30 a.m. EST, today (Thursday, February7, 2013). To participate, please call
five minutes early by dialing (800)230-1074 (in USA) and ask for “Pacer
International Fourth Quarter Earnings Call.” International callers can dial
(612)234-9960.

An audio-only, simultaneous Webcast of the live conference call can be
accessed through the Investors link on the company’s website at www.pacer.com.
For persons unable to participate in either the conference call or the
Webcast, a digitized replay will be available from February7, 2013 at 11:00
a.m. EST to March7, 2013 at 11:59 p.m. EST. For the replay, dial
(800)475-6701(USA) or (320)365-3844 (international), using access code
278889. During such period, the replay also can be accessed through the
Investors link on the company’s website at www.pacer.com

ABOUT PACER INTERNATIONAL (www.pacer.com)

Pacer International, a leading asset-light North American freight
transportation and logistics services provider, offers a broad array of
services to facilitate the movement of freight from origin to destination
through its intermodal and logistics operating segments. The intermodal
segment offers container capacity, integrated local transportation services,
and door-to-door intermodal shipment management. The logistics segment
provides truck brokerage, warehousing and distribution, international freight
forwarding, and supply-chain management services. For more information on
Pacer International visit www.pacer.com.

USE OF NON-GAAP FINANCIAL MEASURES: This press release contains “non-GAAP
financial measures” as defined by the Securities and Exchange Commission.
These non-GAAP measures are (1) adjusted intermodal revenues, adjusted
intermodal gross margin and adjusted intermodal operating income, each of
which excludes from annual 2011 results the impact of the previously announced
volume reduction of the ocean carrier customer that transitioned its western
business directly to the railroad and (2) adjusted income from operations and
adjusted earnings per share for the fourth quarters of 2011 and 2012, each of
which excludes the impact of realignment expense. Adjusted intermodal
operating income also excludes the impact of the gain on sale of railcar
assets which occurred in the third quarter of 2011. Non-GAAP measures are used
by management and the Board of Directors in their analysis of the company’s
ongoing core operating performance. Management believes that the non-GAAP
financial measures provide useful supplemental information that is essential
to a proper understanding of the operating results of the company’s core
businesses and allows investors to more easily compare operating results from
period to period. A tabular reconciliation of the differences between the
non-GAAP financial information discussed in this release and the most directly
comparable financial information calculated and presented in accordance with
GAAP is contained in the financial summary statements attached to this press
release.

CERTAIN FORWARD-LOOKING STATEMENTS—This press release contains or may contain
forward-looking statements, including earnings per share guidance for fiscal
year 2013, within the meaning of Section27A of the Securities Act of 1933, as
amended, and Section21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements are based on the company’s current
expectations and beliefs and are subject to a number of risks, uncertainties
and assumptions. Among the important factors that could cause actual results
to differ materially from those expressed or implied in the forward-looking
statements are general economic and business conditions including the current
U.S. and global economic environment and the timing and strength of economic
recovery in the U.S. and internationally; industry trends, including changes
in the costs of services from rail, motor, ocean and air transportation
providers; and other risks discussed in the company’s Form 10-K and other
filings with the Securities and Exchange Commission, which are incorporated
herein by reference. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions or estimates prove incorrect,
actual results may vary materially from those described herein as anticipated,
believed, expected or intended. Except as otherwise required by federal
securities laws, the company does not undertake any obligation to update such
forward-looking statements whether as a result of new information, future
events or otherwise.

                                                  
                                                             
Pacer International, Inc.

Unaudited Condensed Consolidated Balance Sheets

(in millions)
                                                             
                                   December 31, 2012         December 31, 2011
Assets
Current assets
Cash and cash                      $    20.2                 $    24.0
equivalents
Accounts receivable,               132.7                     133.5
net
Prepaid expenses and               9.4                       12.3
other
Deferred income taxes              2.4                      4.0           
Total current assets               164.7                    173.8         
Property and equipment
Property and                       108.8                     99.8
equipment, cost
Accumulated                        (62.0         )           (56.1         )
depreciation
Property and                       46.8                     43.7          
equipment, net
Other assets
Deferred income taxes              12.6                      14.1
Other assets                       9.9                      11.7          
Total other assets                 22.5                     25.8          
Total assets                       $    234.0               $    243.3    
Liabilities & Equity
Current liabilities
Accounts payable and
other accrued                      $    112.5                $    127.1
liabilities
Long-term liabilities
Other                              1.3                      0.9           
Total liabilities                  113.8                    128.0         
Stockholders’ equity
Common stock                       0.4                       0.4
Additional paid-in                 305.7                     304.7
capital
Accumulated deficit                (185.9        )           (190.2        )
Accumulated other                  —                        0.4           
comprehensive income
Total stockholders’                120.2                    115.3         
equity
Total liabilities and              $    234.0               $    243.3    
stockholders’ equity
                                                                           
                                                                           

                                                           
                                                                       
Pacer International, Inc.

Unaudited Condensed Consolidated Statements of Operations

(in millions, except share and per share data)
                                                                       
                             Three Months Ended                        Year Ended
                             December 31,     December 31,         December 31,     December 31,
                             2012                 2011                 2012                 2011
Revenues                     $   351.9            $   358.0            $  1,415.0           $  1,478.5
Operating
expenses:
Cost of
purchased                    290.8                296.6                1,181.5              1,218.7
transportation
and services
Direct
operating                    25.2                 25.7                 101.6                105.8
expenses
Selling,
general and                  32.0                 31.5                 123.4                131.8
administrative
expenses
Other income                 (0.2       )         —                   (0.4       )         (4.8       )
Total
operating                    347.8               353.8               1,406.1             1,451.5    
expenses
Income from                  4.1                  4.2                  8.9                  27.0
operations
Interest                     (0.3       )         (0.5       )         (1.4       )         (2.3       )
expense
Income before                3.8                  3.7                  7.5                  24.7
income taxes
Income tax                   (1.6       )         (2.6       )         (3.2       )         (10.8      )
expense
Net income                   $   2.2             $   1.1             $  4.3              $  13.9    
Earnings per
share:
Basic:
Earnings per                 $   0.06            $   0.03            $  0.12             $  0.40    
share
Weighted
average shares               35,085,571          34,978,646          35,069,099          34,959,819 
outstanding
Diluted:
Earnings per                 $   0.06            $   0.03            $  0.12             $  0.40    
share
Weighted
average shares               35,406,118          35,194,541          35,338,338          35,066,417 
outstanding
                                                                                                       
                                                                                                       

                            
                                   
Pacer International, Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

(in millions)
                                   
                                   Year Ended
                                   December 31, 2012     December 31, 2011
Cash flows from
operating activities
Net income                         $    4.3                  $    13.9
Adjustments to
reconcile net income
to net cash provided
by operating
activities:
Depreciation and                   7.9                       7.2
amortization
Gain on sale of                    —                         (0.1         )
property and equipment
Gain on sale of                    —                         (4.7         )
railcar assets
Amortization of
deferred gain on sale              (0.8         )            (0.7         )
lease-back
transactions
Deferred taxes                     2.5                       12.4
Stock based                        1.8                       2.4
compensation expense
Change in operating
assets and liabilities
Accounts receivable,               0.8                       19.0
net
Prepaid expenses and               2.9                       3.1
other
Accounts payable and
other accrued                      (14.4        )            (20.7        )
liabilities
Other assets                       2.0                       1.8
Other liabilities                  (0.9         )            (0.2         )
Net cash provided by               6.1                      33.4         
operating activities
Cash flows used in
investing activities
Capital expenditures               (11.4        )            (8.0         )
Purchase of railcar                (28.4        )            (22.1        )
assets
Net proceeds from sale             —                         28.9
of railcar assets
Net proceeds from sale             30.2                      —
lease-back transaction
Proceeds from sales of             0.1                      1.1          
property and equipment
Net cash used in                   (9.5         )            (0.1         )
investing activities
Cash flows used in
financing activities
Net repayments under
revolving line of                  —                         (13.4        )
credit agreement
Debt issuance costs                (0.2         )            —
paid to third parties
Repurchase and
retirement of Pacer                (0.1         )            (0.1         )
common stock
Withholding tax paid
upon vesting of
restricted and                     (0.1         )            —            
performance stock
units
Net cash used in                   (0.4         )            (13.5        )
financing activities
Net increase
(decrease) in cash and             (3.8         )            19.8
cash equivalents
Cash and cash
equivalents at                     24.0                     4.2          
beginning of year
Cash and cash
equivalents at end of              $    20.2                $    24.0    
year
                                                                          
                                                                          

                                                                                        
                                                                                                                                                                      
Pacer International, Inc.

Unaudited Results by Segment

(in millions)
                                                                                                                                                                      
                             Three Months Ended December 31,                                       Year Ended December 31,                                           
                             2012          2011          Change       % Change          2012            2011            Change         % Change
Revenues
Intermodal                   $ 296.9           $ 289.7           $ 7.2            2.5    %          $ 1,179.6           $ 1,175.3           $ 4.3              0.4    %
Logistics                    57.3              68.3              (11.0  )         (16.1  )          238.3               303.5               (65.2   )          (21.5  )
Inter-segment                (2.3    )         —                (2.3   )         N/M               (2.9      )         (0.3      )         (2.6    )          N/M
eliminations
Total                        351.9             358.0             (6.1   )         (1.7   )          1,415.0             1,478.5             (63.5   )          (4.3   )
Cost of
purchased
transportation
and services
and direct
operating
expense 1/
Intermodal                   268.1             263.6             4.5              1.7               1,077.2             1,062.5             14.7               1.4
Logistics                    50.2              58.7              (8.5   )         (14.5  )          208.8               262.3               (53.5   )          (20.4  )
Inter-segment                (2.3    )         —                (2.3   )         N/M               (2.9      )         (0.3      )         (2.6    )          N/M
eliminations
Total                        316.0             322.3             (6.3   )         (2.0   )          1,283.1             1,324.5             (41.4   )          (3.1   )
Gross margin
Intermodal                   28.8              26.1              2.7              10.3              102.4               112.8               (10.4   )          (9.2   )
Logistics                    7.1              9.6              (2.5   )         (26.0  )          29.5               41.2               (11.7   )          (28.4  )
Total                        $ 35.9            $ 35.7            $ 0.2            0.6               $ 131.9             $ 154.0             $ (22.1 )          (14.4  )
Gross margin
percentage
Intermodal                   9.7     %         9.0     %         0.7    %                           8.7       %         9.6       %         (0.9    )%
Logistics                    12.4              14.1              (1.7   )                           12.4                13.6                (1.2    )
Total                        10.2    %         10.0    %         0.2    %                           9.3       %         10.4      %         (1.1    )%
Income from
operations
Intermodal                   $ 12.1            $ 9.8             $ 2.3            23.5              $ 38.4              $ 48.6              $ (10.2 )          (21.0  )
Logistics                    (2.4    )         (1.0    )         (1.4   )         (140.0 )          (10.4     )         (2.2      )         (8.2    )          (372.7 )
Corporate                    (5.6    )         (4.6    )         (1.0   )         (21.7  )          (19.1     )         (19.4     )         0.3               1.5
Total                        $ 4.1             $ 4.2             $ (0.1 )         (2.4   )%         $ 8.9               $ 27.0              $ (18.1 )          (67.0  )%
                                                                                                                                                                      
                                                                                                                                                                      

1/ Direct operating expenses are only incurred in the intermodal segment
   
   

                                                                                                 
                                                                                                                 
Pacer International, Inc.

Reconciliation of Intermodal GAAP Results to Intermodal Adjusted Results

For the Years Ended December31, 2012 and December31, 2011

(in millions)
                                                                                                                 
                       Year Ended                                                                 Adjusted       %
                       December          Year Ended December 31, 2011                                            Adjusted
                       31, 2012                                                                   Variance
                                                                                                                 Variance
                       GAAP              GAAP                                    Adjusted         2012 vs
                                                      Adjustments                         2011           2012 vs
                       Results           Results                                 Results                         2011
Intermodal
Revenues               $ 1,179.6         $ 1,175.3        $  (76.5  )   1/       $ 1,098.8        $ 80.8         7.4   %
Gross                  102.4             112.8            (7.3      )   1/       105.5            (3.1   )       (2.9  )%
margin
Income
from                   $ 38.4            $ 48.6           $  (12.0  )   2/       $ 36.6           $ 1.8          4.9   %
operations
                                                                                                                       
                                                                                                                       

       Adjustment to reflect impact of the previously announced reduction in
       volume from ocean carrier customer that transitioned its western U.S.
1/   intermodal business directly to the railroad. Purchased transportation
       and direct operating expenses were adjusted to the average intermodal
       margin percentage for the 2011 period.
       
       Adjustment to reflect impact of the previously announced reduction in
       volume from ocean carrier customer that transitioned its western U.S.
       intermodal business directly to the railroad. Purchased transportation
2/     and direct operating expenses were adjusted to the average intermodal
       margin percentage for the 2011 period. Also includes an adjustment to
       eliminate the gain on sale of railcar assets of $4.7 million which
       occurred in the third quarter of 2011.
       
       

                                                                 
                                                                           
Reconciliation of GAAP Results to Adjusted Results

For the Three Months Ended December31, 2012 and 2011

(in millions, except per share data)
                                                                           
                       Three Months Ended December 31, 2012                Three Months Ended December 31, 2011
                       GAAP                                 Adjusted       GAAP                                 Adjusted
                                  Adjustments                                  Adjustments       
                       Results                              Results        Results                              Results
Income
from                   $ 4.1         $    0.8      1/       $  4.9         $ 4.2         $    0.3      3/       $  4.5
operations
- Total
Earnings
per share              0.06          0.02          2/       0.08           0.03          0.04          4/       0.07
- Basic
Earnings
per share              $ 0.06        $    0.02     2/       $  0.08        $ 0.03        $    0.04     4/       $  0.07
- Diluted
                                                                                                                   
                                                                                                                   

1/   Adjustment reflects the elimination of realignment expense for 2012.
       
2/     Adjustment reflects the elimination of realignment expense for 2012,
       net of tax
       
3/     Adjustment reflects the elimination of realignment expense for 2011.
       
       Adjustment reflects the elimination of realignment expense for 2011,
4/     net of tax and the elimination of the deferred tax asset adjustment
       during the fourth quarter of 2011.
       
       

                      
                               
Reclassifications of 2011 Results to Conform to 2012 Presentation

For the Three Months and the Year Ended December31, 2011

(in millions)
                               
                               Three Months Ended December 31, 2011
                               As                  Reclassification         As
                               Originally      Amount 1/            Reclassified
                               Reported
Cost of
purchased                      $ 293.9             $    2.7                 $  296.6
transportation
and services
Direct
operating                      23.1                2.6                      25.7
expenses
Selling,
general and                    35.0                (3.5         )           31.5
administrative
expenses
Depreciation
and                            $ 1.8               $    (1.8    )           $  —
amortization
                                                                            
                               Year Ended December 31, 2011
                               As                  Reclassification         As
                               Originally          Amount 1/                Reclassified
                               Reported
Cost of
purchased                      $ 1,208.4           $    10.3                $  1,218.7
transportation
and services
Direct
operating                      94.7                11.1                     105.8
expenses
Selling,
general and                    146.0               (14.2        )           131.8
administrative
expenses
Depreciation
and                            $ 7.2               $    (7.2    )           $  —
amortization
                                                                            
                               Three Months Ended December 31, 2011
                               As                  Reclassification         As
                               Originally          Amount 1/                Reclassified
                               Reported
Gross margin
Intermodal                     $ 28.7              $    (2.6    )           $  26.1
Logistics                      12.3               (2.7         )           9.6        
Total                          $ 41.0              $    (5.3    )           $  35.7
Gross margin
percentage
Intermodal                     9.9       %                                  9.0        %
Logistics                      18.0                                         14.1
Total                          11.5      %                                  10.0       %
                                                                            
                               Year Ended December 31, 2011
                               As                  Reclassification         As
                               Originally          Amount 1/                Reclassified
                               Reported
Gross margin
Intermodal                     $ 123.9             $    (11.1   )           $  112.8
Logistics                      51.5               (10.3        )           41.2       
Total                          $ 175.4             $    (21.4   )           $  154.0
Gross margin
percentage
Intermodal                     10.5      %                                  9.6        %
Logistics                      17.0                                         13.6
Total                          11.9      %                                  10.4       %
                                                                                       
                                                                                       

       Certain reclassifications have been made to the 2011 operating expenses
       in order to conform to the 2012 presentation. The reclassifications had
       no impact on previously reported income. Specifically, Pacer
1/   reclassified certain expenses from selling, general and administrative
       to costs of purchased transportation and services and direct operating
       expenses. Pacer also reclassified depreciation and amortization as
       direct operating expenses, and selling, general and administrative
       expenses.
       
       

                    
                           
Reclassifications of 2011 and 2012 Quarterly Results to Conform to 2012 Presentation

(in millions)
                           
                           Three Months Ended
                                                           September       December                        June 30,        September       December
                           March 31,    June 30,     30,          31,          March 31,                 30,          31,
                           2011            2011                            2011            2012            2012                            2012
                                                           2011                                                            2012
RECLASSIFIED
AMOUNTS 1/
Intermodal
Cost of
purchased                  $ —             $ —             $ —             $ —             $ —             $ —             $ —             $ —
transportation
and services
Direct
operating                  2.8             2.7             3.0             2.6             2.7             2.8             2.7             2.7
expenses
Selling,
general and                (1.7    )       (1.4    )       (1.8    )       (1.4    )       (1.5    )       (1.5    )       (1.2    )       (1.2    )
administrative
expenses
Depreciation
and                        (1.1    )       (1.3    )       (1.2    )       (1.2    )       (1.2    )       (1.3    )       (1.5    )       (1.5    )
amortization
Logistics
Cost of
purchased                  2.5             2.5             2.6             2.7             3.2             3.4             3.5             3.7
transportation
and services
Direct
operating                  —               —               —               —               —               —               —               —
expenses
Selling,
general and                (2.0    )       (2.1    )       (2.1    )       (2.2    )       (2.8    )       (3.0    )       (3.1    )       (3.3    )
administrative
expenses
Depreciation
and                        $ (0.5  )       $ (0.4  )       $ (0.5  )       $ (0.5  )       $ (0.4  )       $ (0.4  )       $ (0.4  )       $ (0.4  )
amortization
                                                                                                                                           
AS
RECLASSIFIED
1/
Intermodal
Cost of
purchased                  $ 226.8         $ 246.1         $ 245.9         $ 237.9         $ 235.8         $ 256.5         $ 240.4         $ 242.9
transportation
and services
Direct
operating                  26.8            27.2            26.1            25.7            25.0            25.4            26.0            25.2
expenses
Selling,
general and                17.5            17.4            17.8            16.3            15.9            15.5            15.9            16.7
administrative
expenses
Depreciation
and                        —               —               —               —               —               —               —               —
amortization
Gross Margin               $ 25.9          $ 30.6          $ 30.2          $ 26.1          $ 24.1          $ 24.9          $ 24.6          $ 28.8
Gross Margin               9.3     %       10.1    %       10.0    %       9.0     %       8.5     %       8.1     %       8.5     %       9.7     %
Percentage
Logistics
Cost of
purchased                  $ 68.1          $ 72.0          $ 63.5          $ 58.7          $ 53.3          $ 54.3          $ 51.0          $ 50.2
transportation
and services
Direct
operating                  —               —               —               —               —               —               —               —
expenses
Selling,
general and                11.1            10.7            11.0            10.6            11.0            10.0            9.4             9.7
administrative
expenses
Depreciation
and                        —               —               —               —               —               —               —               —
amortization
Gross Margin               $ 10.9          $ 10.5          $ 10.2          $ 9.6           $ 7.8           $ 7.5           $ 7.1           $ 7.1
Gross Margin               13.8    %       12.7    %       13.8    %       14.1    %       12.8    %       12.1    %       12.2    %       12.4    %
Percentage
Consolidated
Cost of
purchased                  $ 294.8         $ 318.0         $ 309.3         $ 296.6         $ 289.0         $ 310.5         $ 291.2         $ 290.8
transportation
and services
Direct
operating                  26.8            27.2            26.1            25.7            25.0            25.4            26.0            25.2
expenses
Selling,
general and                32.9            33.6            33.8            31.5            31.9            29.9            29.6            32.0
administrative
expenses
Depreciation
and                        —               —               —               —               —               —               —               —
amortization
Gross Margin               $ 36.8          $ 41.1          $ 40.4          $ 35.7          $ 31.9          $ 32.4          $ 31.7          $ 35.9
Gross Margin               10.3    %       10.6    %       10.8    %       10.0    %       9.2     %       8.8     %       9.1     %       10.2    %
Percentage
                                                                                                                                                   
                                                                                                                                                   

       Certain reclassifications have been made to the 2011 and 2012 quarterly
       operating expenses in order to conform to the 2012 presentation. The
       reclassifications had no impact on previously reported income.
1/   Specifically, Pacer reclassified certain expenses from selling, general
       and administrative to costs of purchased transportation and services
       and direct operating expenses. Pacer also reclassified depreciation and
       amortization as direct operating expenses, and selling, general and
       administrative expenses.
       
       

Contact:

INVESTOR:
Pacer International, Inc.
Steve Markosky, 614-923-1703
VP, Investor Relations& Financial Planning& Analysis
steve.markosky@pacer.com
or
MEDIA:
Princeton Partners
Erin Bijas
Senior Account Manager, Public Relations
(609) 452-8500 x118; 732-895-0792 (mobile)
ebijas@princetonpartners.com
 
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