William B. Cassidy | Sep 01, 2011 12:05PM EDT
Truckload carrier Celadon Group increased its credit facility to $100 million and reset its credit terms as it eyes future acquisitions and internal investment.
“We believe the facility allows for growing the business both organically and through acquisitions,” said Paul Will, president and COO of Celadon.
Celadon’s new five-year credit facility, extended through an agreement with Bank of America and Wells Fargo Bank, will expire Aug. 29, 2016. Celadon, which operates Celadon Trucking Services, was the 15th largest U.S. truckload carrier ranked by revenue in 2010, according to SJ Consulting Group.
The company's cash holdings have been growing, more than doubling from $11.1 million at start of 2010 to $25.7 million on hand at the end of the second quarter June 30.
The Indianapolis-based company reported $556.7 million in revenue in its fiscal year that ended June 30, 2011, a 6.3 percent increase over fiscal 2010. Celadon’s net profit for fiscal 2011 more than doubled to $5.5 million.
In calendar year 2010, Celadon increased its truckload revenue 13.1 percent, SJ Consulting Group said. Celadon also operates logistics and brokerage units.
Increasingly, larger trucking companies are expanding through acquisition, buying smaller carriers to increase their capacity and gain territory and customers. West Coast truckload carrier Gordon Trucking recently purchased Midwestern carrier Benske Lines, while Roadrunner Transportation System bought Prime Logistics, a non-asset brokerage operation with access to tractor capacity.
Celadon has streamlined its own operations while raising pricing. The company reported a 4 percent year-over-year increase in rates in the second quarter. The carrier reduced its trailer fleet by 17 percent over the past year, to 8,200 trailers, while cutting its tractor fleet 1.5 percent to about 2,660 tractors.
Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter at @wbcassidy_joc
