ATS Specialized The Year in review

2002, what a ride it was! We definitely had obstacles to overcome…high fuel, increased insurance costs, pressures to decrease our cents per mile, increased regulations/DOT audit, increased equipment costs, etc., etc., etc. So how did we react to these challenges? We ran smarter and harder…like good companies do when times get tough.

We ended up the year much stronger than we anticipated. We were able to attach fuel surcharges to our contracts protecting both ATS, and our drivers. We were able to get just barely enough of a cent per mile increase from our customers to cover our increased insurance and equipment costs. We ran more miles per unit, increased the amount of over-dimensional freight that we hauled, held turnover below 50%, and spent most of the year with our company equipment full.

Our President and CEO, Rollie Anderson, continues to keep us financially stable. We are sitting in a great position to keep our equipment up to date and in great working order. We continue to look at acquisitions. We have resources to ensure that our terminals are continually upgraded in order to meet higher levels of driver and customer satisfaction. Last but not least, we have a strong Sales, Customer Service, Operations, and Support Team to make sure we are set for the challenges of tomorrow.

Our drivers: This is the force that is getting more and more educated on the challenges of being truly “specialized” drivers. We have seen many upgrades in classes with drivers pushing from Class 4 and 3 to be Class 2 or 1 and many setting their sites higher and moving into the Heavy Haul fleet as Class 1-A. What a huge competitive advantage this is to ATS Specialized!!!

Our competition continues to wonder, “What is ATS Specialized doing that is so right?” We have seen more elimination of competition throughout the year. As that continues, which I assure you it will, we will only get stronger and stronger. With just a slight up-tick in the economy and a continued push from us, the shipping public will realize that specialized carrier capacities have shrunk to amazingly low levels. When that happens our commitment will be to work with the great customers that have been loyal to ATS. Others that only focus on the lowest possible rate using tools such as on-line freight auctions, forced rate reductions, not paying fuel surcharges and in some cases even treating drivers poorly will understand quickly how far cheap rates and broker relationships can get them. (427)

In summary, we are poised for another great year. I am hoping, as always, for 2003 to be our best ever. I hope that our relationships grow stronger, our team continues to work and grow together, the economy gives us a little push, and above all, that our drivers stay safe out there on the road.

Thanks to all for a very successful 2002 and I really look forward to an even stronger 2003!

Gary Stang, Vice President & General Manager, ATS Specialized Inc.

"Rolling Along" presents thoughts from a member of the ATS Management Team.