EVANSVILLE, (Ind.) -- Atlas World Group, Inc., the holding company for Atlas Van Lines and its seven subsidiary companies, announced that its financial performance in 1995 will compare favorably to its record performance of last year, with net income of just over $6 million. AWG is projecting slow but continued financial growth over the next five years. That was the word given at the first stockholders' meeting of Atlas World Group, Inc.
Norman Gee, chairman and chief executive officer of AWG, estimates revenues for 1995 to reach $312 million, with a net income of $6.1 million. Since 1988, net income has grown substantially, from a $1.6 million loss to its current level. While net income for 1995 is expected to equal or fall just short of 1994's results, Gee says the numbers represent a planned reduction in van line retention rather than a deterioration of profitability.
"At the beginning of 1995, we undertook an aggressive five-year van line retention reduction plan that accounts for the expected downturn in profits," says Gee. "The long-term effect of this plan will be to lessen the financial burden on the agents while providing enhanced stockholder value."
According to Gee, projected net income for the next five years is expected to be slow, but stable, with overall debt being reduced an estimated 33-percent, from $58.1 million to $38.7 million. Total debt has been reduced from $86 million at the end of 1988 to an estimated $58 million by year end 1995. At the same time, stockholder equity has grown from a negative $3.3 million to a positive $18.5 million.
"It's no secret that the moving industry has faced some challenging times recently. We can report that, even in the face of industry adversity, we continue to experience revenue growth while decreasing our debt and adding value to the Atlas name," says Gee.
This was the first annual stockholders' meeting of Atlas World Group, Inc. since the holding company was formed last year. In addition to getting a progress report, the 75 stockholder agents of AWG held elections.
Re-elected as volume agent directors were: David W. Bueker, president, McCormack-Payton Storage and Moving Co., Kansas City, Mo.; Milton M. Hill, president, Alexander's Moving and Storage Co., Tustin, Calif.; Joseph McNamara, vice president and CEO, Certified Van Service, Inc., Islandia, N.Y.; Frederick D. Paxton II, president, Paxton Van Lines, Inc., Springfield, Va.; John W. Steiner, CEO, Ace World Wide Moving & Storage, Milwaukee, Wis.; and John R. Westerberg, president, Nelson Westerberg, Inc., Elk Grove Village, Ill.. David M. Davenport, principal, Coates and Davenport law firm, McLean, Va., was re-elected as the outside director.
In-person or proxy votes represented a total of 90.7 percent of AWG outstanding common stock, which is owned by Atlas Van Lines agents in 38 states. The annual meeting was held in Evansville, Indiana.
With its world headquarters in Evansville, Ind., Atlas Van Lines is a transporter of household goods and special products through some 600 agents across the U.S. and Canada, and nearly 800 worldwide.