DALLAS (Aug. 16, 2000) -- Greyhound Lines, Inc. announced its parent company, Laidlaw, Inc., has authorized it to seek third party financing from outside sources.
Greyhound has been advised that Laidlaw can no longer provide working capital to the company.
"To replace Laidlaw as a funding source, we are currently working with several financial institutions with whom we have had previous relationships, and we are working hard to reach an agreement as soon as possible," said Craig Lentzsch, president and CEO. "Prior to the Laidlaw transaction, Greyhound Lines was an independent company and had its own revolving credit agreement."
Greyhound announced a successful second quarter in its 10Q filed late Monday. Key financial highlights for the six-month period ending June 30, 2000 indicate Greyhound's underlying financial performance has been strong:
- Total revenues increased by $49.7 million for the six-month period ending June 30, 2000, up 11.7 percent over the prior year.
- Operating income increased to $7.3 million during the six-month period ending June 30, 2000.
- EBITDA (earnings before interest, taxes, depreciation and amortization) improved from $17 million for the first six months of 1999 to $28.8 million for the six-month period ending June 30, 2000. This improvement was achieved despite a $9.5 million increase in fuel prices.
- Net cash provided by operating activities was $18.2 million for the six-month period ending June 30, 2000 compared to $8.7 million in 1999.
- Operating statistics for the first six months show increases in passengers, load, yield and revenue per bus mile.
Greyhound Lines, Inc. is the largest North American provider of intercity bus transportation, serving more than 3,700 destinations with 20,000 daily departures across the continent. The company also provides package and courier express service, charter and tour services and food service at certain terminals.
In the U.S., for fare and schedule information call 1-800-231-2222 or visit the Web site at www.greyhound.com.
In Canada, for fare and schedule information call 1-800-661-8747 or visit the Web site at www.greyhound.ca.