USA Truck Announces Significantly Improved Operating Results on 13.5% Revenue Growth

USA Truck Announces Significantly Improved Operating Results on 13.5% Revenue
                                    Growth

- Operating income increases by $8.3 million

- Base revenue increases to $113.9 million

- EBITDA up 339% to $12.0 million

- Debt reduced by $5.0 million

PR Newswire

VAN BUREN, Ark., Oct. 17, 2013

VAN BUREN, Ark., Oct. 17, 2013 /PRNewswire/ --USA Truck, Inc. (NASDAQ: USAK),
a leading transportation and logistics provider, today announced
significantly improved financial results for the quarter and nine months ended
September 30, 2013.

(Logo: http://photos.prnewswire.com/prnh/20110114/DA30069LOGO)

"The continued, accelerating improvement in our results clearly illustrates
the rapid progress we're making in our turnaround," said President and CEO
John Simone. "The third quarter of 2013 marked our fourth consecutive quarter
of substantially improved operating and bottom-line results. Our increased
cash flow enabled us to pay down debt for the first time since the fourth
quarter of 2011. These achievements are even more impressive given the
challenging conditions the truckload industry has been facing and the fact
that our third quarter is usually seasonally weaker than our second. 

"Our improved third quarter results were driven by a 13.5% increase in base
revenue while operating expenses rose only 6.8% (net of fuel surcharge
recoveries). Our 830-basis-point improvement in operating margin reflects the
success of the wide range of operational, marketing, and cost initiatives that
our expanded and reinvigorated management team has implemented. Our
go-to-market efforts have helped us gain market share, including the addition
of highly-desirable Fortune 100 shippers to our list of top 10 customers.

"In light of the fact that several industry peers have described the current
operating environment as difficult compared to a year ago, we are extremely
proud of the performance of our Trucking segment, where strong execution of
our strategic plan enabled us to extend our length of haul while
simultaneously increasing our pricing, and to add drivers while simultaneously
increasing productivity per driver. 

"Our asset-light Strategic Capacity Solutions (SCS) business also performed
well, growing by 13.1% and producing a 300-basis-point quarter-over-quarter
improvement in operating margin. This segment now accounts for $32.1 million,
or 28%, of our consolidated base revenue and is helping to strengthen and
diversify our business model, helping us bring even more value to our
customers." 

Mr. Simone concluded, "We are pleased with our sequential and year-over-year
progress and expect to build even further on the strong business momentum we
have established. The sustainability of this momentum is demonstrated by the
increasing rate of improvement in our bottom-line results – up 49% in the
first quarter of 2013, 60% in the second quarter, and 90% in the third
quarter. With meaningful opportunities for improvement in several areas of
our business, including insurance and claims, maintenance costs and tractor
utilization, we expect to continue to show significantly improved
quarter-over-quarter results in the fourth quarter irrespective of industry
conditions and seasonality."

Financial Results
Total base revenues increased 13.5% to $113.9 million for the quarter ended
September 30, 2013 from $100.3 million for the same quarter of 2012.
Asset-based Trucking revenue, not including fuel surcharge, increased 13.6% to
$81.8 million, while non-asset based Strategic Capacity Solutions revenue rose
13.1% to $32.1 million. The Company incurred a net loss of $0.6 million for
the 2013 quarter compared to a net loss of $6.1 million for the 2012 quarter.
Diluted net loss per share improved 90.1% from ($0.59) in the third quarter of
2012 to ($0.06) in the third quarter of 2013.

Total base revenues increased 9.5% to $330.2 million for the nine months ended
September 30, 2013 from $301.7 million for the same period of 2012.
Asset-based Trucking revenue, not including fuel surcharge, increased 10.6% to
$243.0 million, while non-asset based Strategic Capacity Solutions revenue
rose 6.4% to $87.2 million. The Company incurred a net loss of $4.5 million
($0.43 per share) for the nine months ended September 30, 2013 compared to a
net loss of $14.4 million ($1.40 per share) for the comparable 2012 period.

The following table includes key operating results and statistics by
reportable segment:

                         Three Months Ended        Nine Months Ended
                         September 30,             September 30,
                         2013        2012          2013           2012
                         (unaudited)
Trucking:
Operating loss (in       $ (2,968)   $ (10,111)     $ (10,054)    $ (24,386)
thousands) (1)
Operating ratio (2)        103.6   %   114.1    %     104.1    %    111.1    %
Total miles (in            55,516      49,855         166,844       152,808
thousands) (3)
Empty mile factor          11.4    %   10.7     %     11.4     %    11.1     %
Base revenue per loaded  $ 1.664     $ 1.616        $ 1.645       $ 1.618
mile
Average number of          2,250       2,157          2,232         2,186
in-service tractors (4)
Percentage of in-service   6.2     %   9.9      %     5.3      %    9.1      %
tractors unseated
Average number of seated   2,111       1,944          2,114         1,987
tractors (5)
Average miles per seated   2,001       1,951          2,024         1,965
tractor per week
Base revenue per seated  $ 2,948     $ 2,816        $ 2,947       $ 2,825
tractor per week
Average loaded miles per   602         557            596           537
trip
Strategic Capacity
Solutions (6):
Operating income (in     $ 2,764     $ 1,586        $ 6,079       $ 4,895
thousands) (1)
Gross margin (7)           14.0    %   13.9     %     14.0     %    14.6     %

(1) Operating loss is calculated by deducting total operating expenses and
    costs 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.
(6) Includes Intermodal results.
    Gross margin is calculated by taking total revenue less purchased
(7) transportation expense and dividing that amount by total revenue. This
    calculation includes intercompany revenues and expenses.

Balance Sheet and Liquidity
"We ended the quarter with $140.9 million of outstanding debt, a reduction of
$5.0 million sequentially from June 30," added Mr. Simone. "The pay down was
made possible by improved cash flow from operations, which has more than
doubled year-over-year for both the quarter and nine months ended September
30. The strengthening cash flow also enabled us to expand available borrowing
capacity on our revolving credit facility to $29.5 million."

Third-Quarter 2013 Conference Call Information
USA Truck will hold a conference call to discuss its third-quarter 2013
results on Thursday, October 17, 2013, at 8:00AM CT / 9:00 AM ET. To
participate in the call, please dial 1-800-351-6807 (U.S. / Canada) and
1-334-323-7224 (International), access code 541247. The slide presentation
that will accompany the call may be accessed using the following link:
https://www.yourcall.com/webecho/GuestLogin.aspx?ConfRef=78215399&Pin=1533.

For those who cannot listen to the live broadcast, the presentation materials
and an audio replay of the call will be available at our website,
www.usa-truck.com, under the "Presentations" tab of the "Investors" menu. A
telephone replay will also be available by calling 1-877-919-4059, conference
code #18903826.

About Non-GAAP Financial Information
EBITDA is a measure used by management to evaluate the Company's ongoing
operations and as a general indicator of its operating cash flow (in
conjunction with a cash flow statement that also includes, among other items,
changes in working capital and the effect of non-cash charges). The Company
defines EBITDA as net income, plus interest expense net of interest income,
provision for income taxes, and depreciation and amortization. Management
believes EBITDA is useful to investors because it is frequently used by
securities analysts, investors and other interested parties in the comparative
evaluation of companies. Because not all companies use identical calculations,
the Company's presentation of EBITDA may not be comparable to similarly titled
measures of other companies. EBITDA is not a recognized term under GAAP and
does not purport to be an alternative to net income as a measure of operating
performance or to cash flows from operating activities as a measure of
liquidity. Additionally, EBITDA is not intended to be a measure of free cash
flow for management's discretionary use as it does not reflect certain cash
requirements such as interest payments, tax payments and debt service
requirements.

Pursuant to the requirements of Regulation G, we have provided a
reconciliation of EBITDA to GAAP net income as an exhibit to this release.

Safe Harbor Statement
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, including risks and uncertainties associated with the unsolicited
proposal from Knight Transportation, Inc. to acquire all of the Company's
shares, the impact of the pendency of that proposal on the Company's
relationships with its employees, customers and vendors, the outcome of any
litigation related to such proposal, the Board's recommendation to the
shareholders concerning the proposal and the Company's ability to successfully
execute on its strategic road map and meet its long-term financial
goals.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
statement.

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
release.

References to the "Company," "we," "us," "our" and words of similar import
refer to USA Truck, Inc. and its subsidiary.

About USA Truck
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.



USA TRUCK, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
                                   (in thousands, except per share data)
                                   Three Months Ended    Nine Months Ended
                                   September 30,         September 30,
                                   2013       2012       2013       2012
Revenue:
Trucking revenue                   $ 81,761   $ 71,951   $ 242,988  $ 219,733
Strategic Capacity Solutions         32,095     28,373     87,218     81,934
revenue
Base revenue                         113,856    100,324    330,206    301,667
Fuel surcharge revenue               27,966     24,092     83,381     75,990
Total revenue                        141,822    124,416    413,587    377,657
Operating expenses and costs:
Purchased transportation             37,470     31,373     103,677    93,626
Salaries, wages and employee         34,771     36,276     105,001    106,507
benefits
Fuel and fuel taxes                  33,224     31,443     101,837    96,780
Operations and maintenance           12,319     10,961     37,476     32,471
Depreciation and amortization        11,633     11,237     33,399     33,571
Insurance and claims                 6,807      5,310      19,220     15,573
Operating taxes and licenses         1,400      1,288      4,104      4,184
Communications and utilities         1,014      969        3,084      3,049
Gain on disposal of assets, net      (626)      (490)      (1,444)    (1,756)
Other                                4,014      4,574      11,209     13,142
Total operating expenses and costs   142,026    132,941    417,563    397,147
Operating loss                       (204)      (8,525)    (3,975)    (19,490)
Other expenses (income):
Interest expense                     967        1,034      2,752      3,043
Other, net                           (611)      (32)       (711)      (155)
Total other expenses, net            356        1,002      2,041      2,888
Loss before income taxes             (560)      (9,527)    (6,016)    (22,378)
Income tax expense (benefit)         42         (3,455)    (1,542)    (7,947)
Net loss and Comprehensive loss    $ (602)    $ (6,072)  $ (4,474)  $ (14,431)
Net loss per share information:
Average shares outstanding (Basic)   10,322     10,312     10,324     10,310
Basic loss per share               $ (0.06)   $ (0.59)   $ (0.43)   $ (1.40)
Average shares outstanding           10,322     10,312     10,324     10,310
(Diluted)
Diluted loss per share             $ (0.06)   $ (0.59)   $ (0.43)   $ (1.40)

USA TRUCK, INC.
RECONCILIATION OF NET INCOME TO EARNINGS BEFORE INTEREST, TAXES AND
DEPRECIATION AND AMORTIZATION (EBITDA)
(UNAUDITED)
                              (in thousands)
                              Three Months Ended         Nine Months Ended
                              September 30,              September 30,
                              2013         2012          2013       2012
Net Loss                      $  (602)     $  (6,072)    $ (4,474)  $ (14,431)
Add:
 Income taxes expense           42           (3,455)      (1,542)    (7,947)
(benefit)
 Interest, net                  967          1,034        2,752      3,043
 Depreciation and               11,633       11,237       33,399     33,571
amortization
EBITDA                        $  12,040    $  2,744      $ 30,135   $ 14,236



Company Contact
Cliff Beckham, EVP & CFO
USA Truck
(479) 471-2672
Cliff.Beckham@usa-truck.com

Investor Relations Contact
Harriet Fried / Jody Burfening
LHA
(212) 838-3777
hfried@lhai.com



SOURCE USA Truck, Inc.

Website: http://www.usa-truck.com
 
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