FRITZ COS. REPORTS FISCAL 3RD-QUARTER LOSS
Fritz Cos. Inc., the San Francisco-based forwarder and customs broker, reported a net loss of $1.4 million for its third fiscal quarter, ending Feb. 29, compared to a net loss of $3 million for the year-earlier quarter.
Fritz said the loss was due to $3.5-million in pre-tax consolidation costs related to the opening of its centralized customs brokerage center in Dallas. Without the consolidation charge, Fritz's net income for the quarter would be $900,000.
Net revenue (revenue less direct transportation costs) rose 10.1 percent to $148.5 million, largely due to additional business from the company's existing customers. Revenues were $382.0 million, up 20.3 percent. Operating expenses for the quarter were $145.3 million, up 5.4 percent.
Fritz said the positive spread between net revenues and operating expenses indicated a reversal in negative productivity from a year earlier.
“While much more needs to be done, we continue to make investments in new technology, research and process improvements,” said Lynn C. Fritz, chairman and chief executive officer of Fritz Cos. “Despite the long-term nature of these investments, we are pleased to see early signs of their success.”
For the nine-month period, net income rose 11.4 percent to $13.67 million. Net revenue rose 6.0 percent to $433.78 million, while operating expenses rose 5.4 percent to $434.08 million. Revenue rose 15.2 percent to $1.04 billion.