EVANSVILLE, (Ind.) - Following the close of its busiest household goods moving season ever, Atlas World Group, Inc. (AWG) is again expected to exceed record earnings by year-end 1999 with revenues projected to exceed $520 million. AWG broke all records in 1998 when revenues exceeded $500 million for the first time in its 51-year history. At AWG's annual stockholder meeting, held today in Evansville, Ind., corporate officials announced that a solid performance by Atlas' U.S. Relocation Services and Specialized Transportation groups are largely responsible for another strong showing this year. AWG is the holding company for Atlas Van Lines, the nation's third-largest mover of household goods.
According to Mike Shaffer, chairman and chief executive officer of AWG, consolidated revenues for 1999 are projected to rise to $520 million, with net income for 1999 expected to reach $8.2 million -- up from $7.6 million in recorded net income for 1998. It is anticipated that AWG's net income for 1999 will prove to be the second-best year in the company's history.
"New programs in our Specialized Transportation Group and an excellent year in household goods moving have combined to make '99 a very solid year for Atlas," Shaffer comments. "Our U.S. Relocation Services Group just closed its summer season (June 1 through August 31 -- the "high" season for household goods movers) with loaded weight totaling 312 million pounds. That's the best summer on record for Atlas Van Lines." While the year has continued to support Atlas' eleven-year growth spurt, company officials are looking toward the coming year with a combination of optimism and common sense.
"We anticipate that many companies that are AWG customers will feel the impact of the economic problems that have taken hold in Asia, South America and other areas," Shaffer notes. "Those companies might very well have to tighten their expenditures on both domestic and international relocations, and it's likely that the entire moving industry will feel the impact of that to some degree. So we'll have to keep our eyes wide open and be ready to deal with any effects from the global economic situation." The company's debt-to-equity ratio continued to improve during 1999, as it has every year since 1988. In 1989, the company's debt-to-equity ratio was 50 to 1. At the end of 1998 it was 1.8 to 1, and by the end of 1999 the debt-to-equity ratio is expected to be 1.5 to 1. Atlas and AWG -- since its organization in 1994 - have shown a steady profit since 1989, with net income rising from minus $800,000 in that year to a projected $8.2 million in 1999.
Besides receiving a favorable progress report, the 74 stockholder agents of AWG held elections at today's meeting. Reelected as volume directors are: David W. Bueker, president and CEO, McCormack-Payton Storage & Moving Co., Inc., Kansas City, MO; Donald C. Hill, president, Alexander's Moving & Storage, Inc., Tustin, CA; Joseph McNamara, president, Certified Van Service, Inc., Islandia, NY; Frederick D. Paxton II, president and COO, Paxton Van Lines, Inc., Springfield, VA; John W. Steiner, chairman, Ace Worldwide Moving & Storage, Inc., Cudahy, WI; John R. Westerberg, president and CEO, Nelson Westerberg, Inc., Elk Grove, IL. Reelected as outside director is: David M. Davenport, attorney, Washington, D.C. Reelected as designated director is Ted Alger, chairman of the board, Atlantic Moving & Storage, Inc., Atlanta, GA.
In-person or proxy votes represented 98.9 percent of AWG outstanding stock, which is owned by Atlas Van Lines agents in 32 states.
The annual meeting was held at the Casino Aztar Hotel in Evansville, Ind. With its world headquarters in Evansville, Ind., Atlas World Group is the holding company for Atlas Van Lines, a major transporter of household goods and special products through some 600 agents across the U.S. and Canada, and nearly 800 worldwide. Atlas is the nation's fourth-largest household goods mover and ranks as third-largest carrier of household goods.