U.S. business fuels Clarke growth

TORONTO (Aug. 2, 2002) — Propelled by transborder and domestic U.S. business, Clarke Inc. announced a 7.4% increase in revenues for its fiscal first quarter of 2002.

The Toronto company’s net income improved by $0.5 million and earnings per share increased by $0.09 to $0.27.

Revenue for the quarter rose to $100.6 million from $93.6 million in the first quarter of fiscal 2002. However, consolidated operating expenses for the quarter increased 7.7% to $96.1 million from $89.2 million in the previous year. The increase is due primarily to higher volumes following acquisitions of several third-party logistics businesses in the United States last year.

Clarke’s said its most significant increase is in its transborder and domestic U.S. revenues. These business segments were up 20.4% for the quarter compared to last year.

Chairman and CEO Roy Rideout said the company was encouraged by a “turnaround” at Concord Transportation, its expedited freight division, which showed a profit for the second consecutive quarter. “This, combined with increased revenue from our U.S. logistics operations, is fuelling our growth this year,” he said.

Revenues from the U.S. logistics businesses, acquired in the third and fourth quarters of fiscal 2001, increased $8.1 million.

“The domestic freight volumes look less than robust as we enter the next quarter,” the company said in a statement. “While it is difficult to predict the depth or length of the slowdown, longer term prospects for the company remain quite good. With an improved balance sheet and strong cash flows, the company is well positioned to continue its growth strategy.