PACER INTERNATIONAL DOUBLES FIRST-QUARTER NET INCOME

PACER INTERNATIONAL DOUBLES FIRST-QUARTER NET INCOME

   Pacer International Inc., the non-asset-based third-party logistics and freight transport services provider, said its first-quarter net income doubled to $7.4 million.

   Income from operations for the quarter ended April 4 was $18.7 million, up 19.1 percent from the year-earlier period. Net revenues increased 13.6 percent to $94.5 million. In addition, Pacer had $14.9 million of cash flow from operations and paid down $10.3 million of debt in the quarter.

   The company also said it has launched a plan to refinance its existing debt, redeeming or repurchasing its 11.75% senior subordinated notes and refinancing its existing credit facility. Pacer expects its 2004 diluted earnings per share to improve 10 cents per share as a result.

   'As a result of our robust cash flow characteristics, we have the ability to refinance our existing indebtedness to bring additional earnings and cash flow to the bottom line,' said Don Orris, chairman and chief executive officer of Pacer International.

   Pacer's wholesale segment, Pacer Stacktrain, the double-stack rail transportation services provider, saw net revenues increase 13.7 percent to $59.9 million. Pacer's retail segment, Pacer Global Logistics saw net revenues increase 13.4 percent to $34.6 million. The logistics and supply-chain management unit saw increased business in all retail units, with the largest increase in its core rail brokerage business.