EVANSVILLE, (Ind.) -- Atlas World Group, Inc. (AWG) reports another record financial year for 1995, in terms of operating revenues. The company posted $316 million in consolidated revenues, an increase of 7.2 percent over 1994's posting of $295 million. AWG continues to be a growth leader among the country's major van lines with revenues increasing 29 percent since becoming privately-held in 1988, when revenues were $245 million. Atlas World Group is the holding company for Atlas Van Lines, Inc. (Atlas) the nation's fifth-largest carrier of household goods, and its seven subsidiaries. In addition to the $21 million increase in revenues over 1994, AWG finished 1995 with net income of $5.9 million and earnings before taxes of $10.6 million. Earnings before taxes were reduced by approximately 20 percent because of a planned reduction in Atlas' retention of .5 percent on U.S. domestic shipments, the second such decrease which returns additional shipment revenue to agents.
"We anticipated a net income below that of last year's $6.3 million due to our reduction in van line retention," explains Norman Gee, chairman and chief executive officer of AWG. "This planned reduction will guarantee the long term success of AWG by ensuring the financial stability of Atlas agents."
According to Gee, the five-year van line retention reduction program will contribute to slow but steady income growth for the next few years. Atlas, AWG's largest subsidiary, placed fifth among its competitors in terms of overall revenues and was one of only two major van lines to record an increase in revenues from 1994 to 1995. Atlas also improved its operating ratio to maintain its position as the van line with the best operating ratio among the country's six largest household goods carriers.
AWG attributes its increase in revenues to a strong showing in the household goods, specialized transportation, freight forwarding and equipment sales areas. The company expects another strong financial performance in 1996.
"Despite the uncertainty associated with an election year and the lack of a permanent Federal budget agreement, we expect to post strong numbers in 1996," said Gee. "Looking beyond 1996, the adoption of new initiatives such as the van line retention rebate will pay big dividends." AWG's debt-to-equity ratio declined to 2.9:1 in 1995, down from 3.5:1 in 1994. In 1989, following the LBO of Atlas Van Lines, the debt-to-equity ratio was at 21.3:1
With its world headquarters in Evansville, Indiana, Atlas is a transporter of household goods and special products through some 600 agents across the U.S. and Canada, and over 800 worldwide.