USA Truck Announces First Quarter Results
VAN BUREN, Ark., May 6, 2013
VAN BUREN, Ark., May 6, 2013 /PRNewswire/ -- USA Truck, Inc. (NASDAQ: USAK)
today announced financial and operating results for the quarter ended March
Base revenue of $104.9 million for the quarter ended March 31, 2013, increased
7.2% from $97.8 million for the same quarter of 2012. We incurred a net loss
of $2.5 million ($0.24 per share) for the quarter ended March 31, 2013,
compared to a net loss of $4.9 million ($0.47 per share) for the same quarter
John Simone, President and CEO, offered the following comments: "Overall
Company base revenue improved by 7.2% and operating costs were held to an
increase of 3.5%, thus improving operating margin by over 400 basis points.
Our operational execution continues to improve, helping us overcome difficult
weather conditions across our operating areas and fewer business days due to
leap year and an early Easter. We are pleased with our progress, and our top
priority is returning to profitability as quickly as possible and restoring
Asset-Based Trucking Operations
"Our Trucking segment led the way with a 50.0% improvement in operating
results on revenue growth of 5.1% while expenses grew at 1.0%, yielding a 550
basis point improvement.
"The yield management initiatives we began implementing during 2012 are
gradually improving our freight network. Our loaded length-of-haul increased
by 11.8%, and our rate per total mile simultaneously improved by 2.7%.
Operationally, we executed better, improving miles per seated truck per week
by 2.7%, as we continue to focus on asset productivity.
"Most costs associated with our Trucking segment were lower due to a variety
of cost control initiatives, including efforts to reduce driver turnover which
improved by 22.6 percentage points year-over-year. We believe significant
opportunities exist to remove costs from our operations. Those opportunities
are in the areas of equipment operating costs, fuel consumption and safety (in
fact, most of the year-over-year increase in insurance and claims dollars was
the result of a single claim occurring on the final working day of the
quarter). We are conducting a broad assessment of our processes in those
three areas, among others, and are designing and deploying initiatives that we
believe will unlock the earnings leverage in our Trucking model.
Non-Asset Based Operations
"Our SCS segment produced operating income of $1.3 million, and experienced
22.0% base revenue growth, when compared to the same quarter of the prior
year. However, less favorable conditions in the marketplace, particularly
among seasonal spring shippers, led to slightly compressed gross margins
(14.1% vs. 14.4%). Operating margins were further eroded due to an expanded
infrastructure to facilitate long-term growth, and we experienced elevated bad
debt expense during the quarter. Intermodal experienced better year-over-year
results, but remained immaterial to our overall financial results.
Balance Sheet and Liquidity
"We believe our balance sheet and sources of liquidity remain adequate to
support our operating needs for the foreseeable future. At March 31, 2013,
our outstanding debt, less cash, represented 57.5% of our total
capitalization, compared to 48.9% at March 31, 2012. At March 31, 2013, we
were in compliance with our five-year $125.0 million revolving credit facility
and had approximately $15.2 million of available borrowing capacity (net of
the minimum availability we are required to maintain of approximately $18.8
million). For the three months ended March 31, 2013, we incurred net capital
expenditures of approximately $11.0 million. Our 2013 operating plan
anticipates capital expenditures, net of proceeds on sale of assets, of
approximately $36.3 million for the remainder of the year.
"Since my arrival at USA Truck in mid-February, I have spent a great deal of
time gaining a better understanding of our opportunities, both in the
corporate offices and in the field visiting our customers, suppliers and
remote Company facilities. I have been very encouraged by the quality of our
Company's assets, customers and people. I believe there is a strong
foundation and, as this earnings report points out, positive momentum. We
expect to build upon that foundation and momentum by adding greater clarity,
focus and execution. Our strategy: return to profitability and restore
shareholder value through operational excellence, profitable revenue growth
and cost efficiencies. We have identified, developed and begun executing
high-leverage activities in each of these critical areas. We look forward to
reporting our progress in future communications."
A conference call and live slide presentation to discuss first quarter
earnings will be held on Monday, May 6, 2013, at 10:00 a.m., central time.
Individuals desiring to listen to the call may dial in at 1-800-351-6807 (U.S.
/ Canada) and 1-334-323-7224 (International), access code 541247. The live
slide presentation may be accessed using the following link:
For a period of time following the call, individuals will be able to access
the presentation materials and listen to the audio recording of the call at
our website, www.usa-truck.com, under the "Presentations" tab of the
The following table summarizes the results of operations information of USA
Truck, Inc. ("Company") for the three-month periods indicated:
USA TRUCK, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended
Trucking revenue $ 79,793 $ 75,937
Strategic Capacity Solutions revenue 21,459 17,595
Intermodal revenue 3,635 4,291
Base revenue 104,887 97,823
Fuel surcharge revenue 27,140 25,850
Total revenue 132,027 123,673
Operating expenses and costs:
Fuel and fuel taxes 35,595 34,770
Salaries, wages and employee benefits 35,567 35,514
Purchased transportation 30,478 26,978
Depreciation and amortization 10,915 11,157
Operations and maintenance 11,508 10,931
Insurance and claims 5,389 4,882
Operating taxes and licenses 1,007 1,507
Communications and utilities 1,086 1,023
Gain on disposal of assets, net (389) (542)
Other 3,698 4,089
Total operating expenses and costs 134,854 130,309
Operating loss (2,827) (6,636)
Other expenses (income):
Interest expense 837 986
Other, net (54) (75)
Total other expenses, net 783 911
Loss before income taxes (3,610) (7,547)
Income tax benefit (1,136) (2,674)
Net loss $ (2,474) $ (4,873)
Per share information:
Average shares outstanding (Basic) 10,305 10,300
Basic loss per share $ (0.24) $ (0.47)
Average shares outstanding (Diluted) 10,305 10,300
Diluted loss per share $ (0.24) $ (0.47)
The following table includes key operating results and statistics for
ourthree operating segments:
Three Months Ended
Operating loss (in thousands) $ (3,978) $ (7,956)
Operating ratio (2) 105.0 % 110.5 %
Total miles (in thousands) (3) 54,618 53,360
Empty mile factor 11.0 % 11.8 %
Base Trucking revenue per loaded mile $ 1.642 $ 1.613
Average number of in-service tractors (4) 2,206 2,230
Unseated tractor percentage 4.1 % 5.9 %
Average number of seated tractors 2,116 2,099
Average miles per seated tractor per 2,008 1,955
Base Trucking revenue per seated tractor per week $ 2,933 $ 2,783
Average loaded miles per trip 589 527
Strategic Capacity Solutions:
Operatingincome (in thousands) (1) $ 1,282 $ 1,544
Gross margin (6) 14.1 % 14.4 %
Operating loss (in thousands) (1) $ (131) $ (224)
Gross margin (6) 14.0 % 21.5 %
(1) Operating (loss) income is calculated by deducting total operating
expenses from total revenues.
(2) Operating ratio is calculated by dividing total operating expenses, net of
fuel surcharge, by base revenue.
(3) Total miles include both loaded and empty miles.
(4) Tractors include Company-operated tractors in service, plus tractors
operated by independent contractors.
(5) Seated tractors are those occupied by drivers.
Gross margin is calculated by taking total revenue less purchased
(6) transportation expense and dividing that amount by total revenue. This
calculation includes intercompany revenues and expenses.
Financial information in this press release is preliminary and based upon
information available to the Company as of the date of this press release. As
such, this information remains subject to the completion of normal quarter-end
closing and interim review procedures which could result in changes, some of
which could be material, to the preliminary information provided in this press
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements generally may be
identified by their use of terms or phrases such as "expects," "estimates,"
"anticipates," "projects," "believes," "plans," "goals," "intends," "may,"
"will," "should," "could," "potential," "continue," "future" and terms or
phrases of similar substance.Forward-looking statements are based upon the
current beliefs and expectations of our management and are inherently subject
to risks and uncertainties, some of which cannot be predicted or quantified,
which could cause future events and actual results to differ materially from
those set forth in, contemplated by, or underlying the forward-looking
statements.Accordingly, actual results may differ from those set forth in
the forward-looking statements.Readers should review and consider the
factors that may affect future results and other disclosures by the Company in
its press releases, Annual Report on Form 10-K and other filings with the
Securities and Exchange Commission. We disclaim any obligation to update or
revise any forward-looking statements to reflect actual results or changes in
the factors affecting the forward-looking information. In light of these
risks and uncertainties, the forward-looking events and circumstances
discussed in this press release might not occur.
All forward-looking statements attributable to us, or persons acting on our
behalf, are expressly qualified in their entirety by this cautionary
References to the "Company," "we," "us," "our" and words of similar import
refer to USA Truck, Inc. and its subsidiary.
USA Truck is a transportation and logistics provider headquartered in Van
Buren, Arkansas, with terminals, offices and staging facilities located
throughout the United States. We transport commodities throughout the
continental U.S. and into and out of portions of Canada. We also transport
general commodities into and out of Mexico by allowing through-trailer service
from our terminal in Laredo, Texas. Our Strategic Capacity Solutions and
Intermodal service offerings provide customized transportation solutions using
the latest technological tools available and multiple modes of transportation.
This press release and related information will be available to interested
parties at our web site, http://www.usa-truck.comunder the "News Releases"
tab of the "Investors" menu.
SOURCE USA Truck, Inc.
Contact: JOHN SIMONE, President and Chief Executive Officer - (479) 471-2633
or CLIFF BECKHAM, Executive Vice President and Chief Financial Officer - (479)
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