USA Truck Reports Strong Second Quarter 2014 Results

             USA Truck Reports Strong Second Quarter 2014 Results

- Base revenue increases 12.1% to $125.0 million over 2Q13

- Adjusted EPS of $0.20(1) compared to loss of ($0.14) in 2Q13

- Adjusted EBITDA increases 54.9% to $15.4 million vs. $10.0 million in 2Q13

(1) Excluding $2.2 million charge, or $0.13 per share, for defense costs. See
additional information, including paragraph regarding use of non-GAAP
financial information, below.

PR Newswire

VAN BUREN, Ark., July 31, 2014

VAN BUREN, Ark., July 31, 2014 /PRNewswire/ --USA Truck, Inc. (NASDAQ: USAK),
a leading North American transportation and logistics provider, today
announced its seventh consecutive quarter of improved year-over-year financial
results for the three months ended June 30, 2014.

USA Truck logo.

"We posted our first quarter of positive net income in three years," said
President and CEO John Simone. "While continuing the work of implementing our
turnaround plan, the progress we are making is evident in virtually every area
of our business. Despite the harsh winter that impacted the trucking industry
as the year began, our results, on an adjusted basis, for the first six months
of 2014 are also positive, with adjusted earnings per share of $0.07 compared
to a loss of ($0.38) in last year's period.

"The Company's improved second-quarter performance was driven by a 12.1%
increase in base revenue, while operating expenses net of fuel surcharge
collections increased only 7.4%, yielding a 410-basis point improvement in
operating margin – a testament to the multiple revenue growth, operational and
cost-efficiency initiatives we have implemented.

"Our asset-light Strategic Capacity Solutions (SCS) business was an especially
important contributor, turning in a second consecutive record quarter. Base
revenue increased 39.1% to $41.8 million and operating margin expanded by 700
basis points. This performance was made possible by crisp execution within
this highly efficient service against the backdrop of a market characterized
by strengthening demand and tight capacity. Our SCS segment accounted for
over one-third of our consolidated base revenue during the quarter,
substantially strengthening and diversifying our integrated business model."

Mr. Simone continued, "Trucking continued to improve its performance, with
base revenue growth of 2.2% and a 170-basis-point improvement in operating
ratio. In the quarter, we increased revenue per total mile by 5.7% and grew
miles per seated tractor per week by 1.3% to their highest level in more than
three years. Although fixed costs were pressured during the quarter by
elevated employee medical benefit plan costs, we achieved improvements in
critical areas such as insurance and claims, fuel and maintenance costs. We
also took steps we believe will increase our seated truck count, which remains
one of management's top priorities as the availability of qualified drivers
continues to be problematic across the truckload industry.

"We are encouraged by the accomplishments made possible by the disciplined
execution of our strategic plan. Although the shortage of drivers and more
restrictive hours-of-service rules continue to present challenges for our
industry, the demand and pricing environment in the truckload marketplace is
healthy and we believe our 2014 goals of positive consolidated operating
income and adjusted EPS are achievable.

"I particularly want to acknowledge the hard work and commitment of all the
USA Truck team members, who have been instrumental in improving our
performance. We appreciate their many contributions and look forward to
continued progress in the second half of the year."

Defense Costs
In the second quarter of 2014, the Company recorded approximately $2.2
million, or $0.13 per diluted share, in defense costs consisting of financial
advisory and legal fees. These costs were incurred primarily in connection
with Knight Transportation's unsolicited proposal to acquire USA Truck,
related litigation and the February 2014 Settlement Agreement. These unusual
non-operating costs have been recorded in "Other expenses (income)" in the
accompanying consolidated statement of operations. The Company does not
expect significant additional costs related to the above matters in the second
half of 2014.

Financial Results
Total base revenue increased 12.1% to $125.0 million for the quarter ended
June 30, 2014, from $111.5 million for the same quarter of 2013. Trucking
revenue, excluding fuel surcharge, increased 2.2% to $83.2 million, while SCS
revenue rose 39.1% to $41.8 million. Net income was $0.7 million, or $0.07
per diluted share, for the second quarter of 2014 compared to a net loss of
($1.4) million, or ($0.14) per share, for the same quarter of 2013. Adjusted
net income, excluding defense costs, was $2.1 million, or $0.20 per diluted
share, for the second quarter of 2014.

Total base revenue increased 12.1% to $242.6 million for the six months ended
June 30, 2014, from $216.3 million for the same period of 2013. Net loss was
($0.9) million, or ($0.08) per diluted share, for the six months ended June
30, 2014, compared to a net loss of ($3.9) million, or ($0.38) per share, for
the same period of 2013. Adjusted net income, excluding defense costs, was
$0.7 million, or $0.07 per diluted share, for the six months ended June 30,
2014. A reconciliation of net income (loss) to adjusted net income (loss) is
provided as an exhibit to this press release.

                                                 Three Months Ended       Six Months Ended
                                                 June 30,                 June 30,
                                                 2014        2013         2014         2013
                                                 (unaudited)
Trucking:
Operating loss(in thousands)                     $ (1,734)   $ (3,108)    $ (7,855)     $ (7,086)
(1)
Operating ratio (2)                                102.1   %   103.8   %    104.8   %     104.4   %
Total miles(in thousands) (3)                      54,796      56,715       108,409       111,333
Empty mile factor         13.0    %   11.8    %    12.3    %     11.4    %
Base revenue per loaded                          $ 1.745     $ 1.629      $ 1.720       $ 1.635
mile
Average number of in-service tractors              2,196       2,241        2,218         2,223
(4)
Percentage of in-service tractors unseated         8.1     %   5.6     %    8.0     %     4.9     %
Average number of seated tractors (5)              2,019       2,116        2,040         2,115
Average miles per seated tractor per week          2,088       2,062        2,055         2,036
Base Trucking revenue per seated tractor per     $ 3,170     $ 2,961      $ 3,098       $ 2,948
week
Average loaded miles per                           614         597          618           593
trip
Strategic Capacity Solutions (6):
Operating income(in thousands)                   $ 5,991     $ 2,163      $ 11,069      $ 3,315
(1)
Gross margin (7)                                   18.4    %   14.0    %    18.0    %     14.5    %

(1)              Operating income or 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
(7)              purchased transportation expense and dividing that amount by
                 total revenue. This calculation includes intercompany revenue
                 and expenses.

Balance Sheet and Liquidity
Mr. Simone added, "Our debt modestly increased during the second quarter by
$0.6 million sequentially to $125.1 million as we continued to refresh our
tractor and trailer fleet. Net of cash, this represented 56.0% of our total
capitalization. Year to date our debt is down $3.8 million. At quarter end,
we had $31.7 million of net borrowing availability on our revolving credit
facility."

Second-Quarter 2014 Conference Call Information
USA Truck will hold a conference call to discuss its second-quarter 2014
results on July 31, 2014 at 8:00 AM CT / 9:00 AM ET. To participate in the
call, please dial 1-800-351-6807 (U.S. / Canada) or 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 of the call will also be available for 30 days following the
call at 1-877-919-4059, access code 46088628.

About Non-GAAP Financial Information
In addition to our GAAP results, this press release also includes certain
non-GAAP financial measures as defined by the SEC. The Company defines EBITDA
as net income, plus interest expense net of interest income, provision for
income taxes, and depreciation and amortization. It defines Adjusted EBITDA as
these items plus the defense costs incurred primarily in connection with the
unsolicited proposal from Knight Transportation to acquire USA Truck, pretax.
The Company defines adjusted net income (loss) as net income (loss), excluding
certain adjustments more specifically outlined in this press release. EBITDA
and Adjusted EBITDA are measures 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), and adjusted
net income (loss) is a measure used by management to evaluate our operating
performance. Management believes these measures are useful to investors
because they are 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,
Adjusted EBITDA and adjusted net income (loss) may not be comparable to
similarly titled measures of other companies. EBITDA, Adjusted EBITDA and
adjusted net income (loss) are not recognized terms under GAAP, do not purport
to be alternatives to, and should be considered in addition to, and not as a
substitute for or superior to, net income or net income (loss) as a measure of
operating performance or to cash flows from operating activities or any other
performance measures derived in accordance with GAAP as a measure of
liquidity. Additionally, EBITDA and Adjusted EBITDA are not intended to be
measures of free cash flow for management's discretionary use as they do 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 reconciliations
of EBITDA and Adjusted EBITDA to GAAP net income (loss) and of adjusted net
income (loss) to GAAP net income (loss) as exhibits to this press release.

Cautionary Statement Concerning Forward-Looking Statements
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.

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. Such forward-looking statements
are made pursuant to the provisions of the Private Securities Litigation
Reform Act of 1995. 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 materially 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. Any
forward-looking statement speaks only as of the date on which it is made. 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.

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.

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

USA TRUCK, INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
                                    (in thousands, except per share data)
                                    Three Months Ended    Six Months Ended
                                    June 30,              June 30,
                                    2014       2013       2014       2013
Revenue:
Trucking revenue                    $ 83,207   $ 81,434   $ 163,414  $ 161,227
Strategic Capacity Solutions          41,762     30,028     79,166     55,123
revenue
Base revenue                          124,969    111,462    242,580    216,350
Fuel surcharge revenue                28,329     28,276     56,207     55,416
Total revenue                         153,298    139,738    298,787    271,766
Operating expenses and costs:
Purchased transportation              44,538     35,730     85,788     66,208
Salaries, wages and employee          38,703     34,663     74,542     70,230
benefits
Fuel and fuel taxes                   30,704     33,017     63,707     68,613
Operations and maintenance            11,629     13,649     24,691     25,157
Depreciation and amortization         11,148     10,852     22,603     21,767
Insurance and claims                  5,903      7,024      11,887     12,413
Operating taxes and licenses          1,355      1,696      2,801      2,704
Communications and utilities          1,094      984        2,133      2,069
Gain on disposal of assets, net       (179)      (429)      (522)      (819)
Other                                 4,146      3,497      7,943      7,195
Total operating expenses and costs    149,041    140,683    295,573    275,537
Operating income (loss)               4,257      (945)      3,214      (3,771)
Other expenses (income):
Interest expense                      744        947        1,455      1,784
Defense costs                         2,163      --         2,528      --
Other, net                            (16)       (46)       48         (99)
Total other expenses, net             2,891      901        4,031      1,685
Income (loss) before income taxes     1,366      (1,846)    (817)      (5,456)
Income tax expense (benefit)          644        (448)      50         (1,584)
Net income (loss) and Comprehensive $ 722      $ (1,398)  $ (867)    $ (3,872)
income (loss)
Net income (loss) per share
information:
Average shares outstanding (Basic)    10,337     10,293     10,338     10,299
Basic earnings (loss) per share     $ 0.07     $ (0.14)   $ (0.08)   $ (0.38)
Average shares outstanding            10,469     10,293     10,338     10,299
(Diluted)
Diluted earnings (loss) per share   $ 0.07     $ (0.14)   $ (0.08)   $ (0.38)

USA TRUCK, INC
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA
(UNAUDITED)
                                (in thousands)
                                Three Months Ended   Six Months Ended
                                June 30,             June 30,
                                2014      2013       2014      2013
Net income (loss)               $ 722     $ (1,398)  $ (867)   $ (3,872)
Add:
 Income tax expense (benefit)    644       (448)      50        (1,584)
 Interest, net                   744       947        1,455     1,784
 Depreciation and amortization   11,148    10,852     22,603    21,767
EBITDA                          $ 13,258  $ 9,953    $ 23,241  $ 18,095
Add:
 Defense costs, pretax           2,163     --         2,528     --
Adjusted EBITDA                 $ 15,421  $ 9,953    $ 25,769  $ 18,095

USA TRUCK, INC
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS)
(UNAUDITED)
                                    (in thousands, except per share data)
                                    Three Months Ended    Six Months Ended
                                    June 30,              June 30,
                                    2014       2013       2014       2013
Other expenses, net                 $ (2,891)  $ (901)    $ (4,031)  $ (1,685)
Defense costs                         2,163      --         2,528      --
Adjusted other expenses, net          (728)      (901)      (1,503)    (1,685)
Pretax income (loss)                  1,366      (1,846)    (817)      (5,456)
Defense costs adjustment              2,163      --         2,528      --
Adjusted pretax income (loss)         3,529      (1,846)    1,711      (5,456)
Income tax expense (benefit)          644        (448)      50         (1,584)
Tax effect adjustment                 831        --         971        --
Adjusted income tax expense           1,475      (448)      1,021      (1,584)
(benefit)
Net income (loss)                     722        (1,398)    (867)      (3,872)
Defense costs adjustment, net of      1,332      --         1,557      --
tax
Adjusted net income (loss)          $ 2,054    $ (1,398)  $ 690      $ (3,872)
Income (loss) per share             $ 0.07     $ (0.14)   $ (0.08)   $ (0.38)
Per share effect of adjustment        0.13       --         0.15       --
Adjusted income (loss) per share    $ 0.20     $ (0.14)   $ 0.07     $ (0.38)

Logo - http://photos.prnewswire.com/prnh/20110114/DA30069LOGO

SOURCE USA Truck, Inc.

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