Cannon Express Inc. Expects to Lose $12 Million
by October 28, 2002 12:00 am 76 views
On Oct. 1, Cannon Express Inc. said that it expects its net loss before income taxes to widen to about $12 million for fiscal 2002 from $8.4 million in fiscal 2001.
In a filing with the Securities and Exchange Commission, the Springdale carrier said about $2.2 million of loss total will be a loss on impaired assets. Cannon also said that it is in discussions with its accountants, lenders and creditors to resolve questions regarding the disposition of these assets. That made the company late in filing its annual report.
In August, company CEO Dean Cannon resigned his post, having hired CFOex Inc. to assume day-to-day management responsibilities of the company. CFOex provides financial services exclusively to the transportation industry and provides financial advisory, merger and acquisition structuring and capital funding services. It reports to the board of directors, of which Dean Cannon remains chairman.
The company has had a string of money-losing quarters. In March, it laid off 50 workers and announced intentions to cut costs and help the company “return to profitability.”
Cannon Express, the state’s ninth-largest trucking company according to revenue, is an irregular-route truckload carrier serving the 48 contiguous states, Canada and Mexico with its fleet of about 775 trucks and 1,450 trailers.