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The economy took a bite out of Emons Transportation Group Inc.'s Fiscal Year 2002 second-quarter financial results — possibly the short-line holding company's last quarterly financial report pending a shareholders' vote later this month on Genesee & Wyoming Inc.'s (GWI) proposal to acquire Emons.
For the quarter ending Dec. 31, Emons' recorded $5.4 million in operating revenue, dropping 17.4 percent compared with $6.54 million during a similar FY 2001 period. Income from operations also declined 45.2 percent to $598,000 compared with the prior year's $1.09 million, and net income decreased 54.7 percent to $260,000.
Emons' quarterly intermodal freight and handling revenues declined, too, falling 13.3 percent to $378,000 compared with $436,000 in 2001 due to intermodal-units handled dropping 12.5 percent from 3,650 to 3,200.
"Our second largest customer, which accounted for approximately 9 percent of our fiscal 2001 revenues, ceased operations and filed for Chapter 11 bankruptcy protection during fiscal 2002 first quarter," said Robert Grossman, Emons chairman, president and chief executive officer, in a prepared statement. "Additionally, $143,000 in expenses for professional fees were incurred in the current quarter with respect to the proposed sale of the company to GWI."
Emons plans to hold a shareholders meeting Feb. 20, during which stockholders will vote on the proposed GWI acquisition. If the merger is approved, GWI and Emons plan Feb. 22 to close the deal, under which Emons stockholders would receive $2.50 per share in cash for each common share held on the transaction's closing date.