Cannon Express Inc. Announces Operating Results

Business Wire, Nov 5, 1999

SPRINGDALE, Ark.--(BUSINESS WIRE)--Nov. 5, 1999--

Cannon Express Inc. (AMEX: AB) Chairman of the Board, Dean Cannon announced the results of its 1st fiscal quarter and the 3 months of fiscal 2000 ended September 30, 1999.

1st Fiscal Qtr. 2000 Revenue $22,915,433 vs $24,662,417 in the 1st fiscal Qtr. of 1999.

1st Fiscal Qtr. 2000 Net Income $501,103 vs $62,192 in the 1st Fiscal Qtr. of 1999.

1st Fiscal Qtr. 2000 Per Share 16 Cents vs 2 Cents Per Share in the 1st Fiscal Qtr. of 1999.

The Company continued to experience a shortage of qualified drivers to operate its trucks during the quarter ended 09-30-99. The Company is implementing a program in which owner-operators may qualify to lease a truck and be paid a percentage of the Company's revenue to operate it under a contract with the Company to haul freight for its customers. Management believes that an owner-operator fleet will improve results in the Company's driver retention efforts. During the quarter ended September 30, 1999, the Company took delivery of 170 new trucks, 150 were leased to operators and 20 were assigned to Company drivers. The Company expects to take delivery of 630 replacement trucks during the current fiscal year. These trucks will be dedicated to the Company's lease program or to its fleet as demand warrants. -0-

CANNON EXPRESS INC.
COMPARISON OF OPERATING RESULTS
FISCAL YEARS ENDING JUNE 30, 2000 AND 1999

                                             Three Months Ended
                                             ------------------
                                              Sept 30  Sept 30
                                                1999     1998
                                              -------- --------
OPERATING REVENUES                             22,915   24,662
OPERATING EXPENSES AND COSTS
  Salaries, wages and fringe benefits           7,298    8,656
  Operating supplies and expenses               6,035    7,873
  Operating taxes and licenses                  1,126    1,315
  Insurance and claims                          1,490      848
  Depreciation and amortization                   747    3,451
  Rents and purchased transportation            4,802    1,099
  Other                                           733      575
                                              -------- --------

TOTAL OPERATING EXPENSE                        22,231   23,816
                                              -------- --------

OPERATING INCOME                                  684      846

OTHER INCOME
  Interest Expense                               (651)    (812)
  Other income                                    106       68

TOTAL OTHER INCOME                               (545)    (744)
                                              -------- --------

INCOME BEFORE INCOME TAXES                        139      101
FEDERAL AND STATE INCOME TAXES                   (362)      39
                                              -------- --------

NET INCOME                                        501       62
                                              ======== ========
EARNINGS PER SHARE                               0.16     0.02
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