USA Truck Announces Fourth Quarter Operating Results
VAN BUREN, Ark.--Jan. 24, 2001--USA Truck, Inc. today announced operating revenues of $57,559,612 for the quarter ended December 31, 2000, up 11.5% from $51,629,555 for the same quarter of 1999. The net loss of $1,203,978 or $.13 per diluted share for the fourth quarter compares to a net profit of $2,193,593 or $.24 per diluted share for the fourth quarter of 1999.For the twelve months ended December 31, 2000, operating revenues increased 36.2% to a record $226,585,437, from $166,363,356 for the twelve months ended December 31, 1999. Net income decreased 98.9% to $94,061 for the twelve months ended December 31, 2000, compared to $8,641,502 for the twelve months ended December 31, 1999, a decrease of 98.9% in diluted net income per share to $.01 from $.92.
The following table summarizes USA Truck's earnings information:
Quarter Ended Twelve Months Ended
December 31, December 31,
------------------------ -------------------------
2000 1999 2000 1999
------------ ----------- ------------ ------------
Operating revenues $57,559,612 $51,629,555 $226,585,437 $166,363,356
Operating expenses
and costs:
Salaries, wages
and employee
benefits 23,319,497 21,060,614 91,453,590 70,197,581
Operations and
maintenance 18,831,266 14,653,669 71,567,226 42,480,525
Operating taxes
and licenses 1,051,096 955,591 4,248,497 3,005,166
Insurance and claims 4,849,076 2,284,504 14,318,596 7,987,208
Communications
and utilities 678,389 587,184 2,802,007 1,999,548
Depreciation and
amortization 6,792,669 5,717,030 26,792,923 18,591,780
Other 2,617,876 2,043,899 9,607,679 6,264,876
------------ ----------- ------------ -------------
Total operating
expenses and costs 58,139,869 47,302,491 220,790,518 150,526,684
------------ ----------- ------------ -------------
Operating income
(loss) (580,257) 4,327,064 5,794,919 15,836,672
Other expenses, net 1,399,970 719,180 5,640,213 1,623,673
------------ ----------- ------------- ------------
Income (loss)
before income taxes (1,980,227) 3,607,884 154,706 14,212,999
Income tax
expense (benefit) (776,249) 1,414,291 60,645 5,571,497
------------ ----------- ------------- ------------
Net income (loss) $(1,203,978) $ 2,193,593 $ 94,061 $ 8,641,502
============ =========== ============= ============
Earnings (loss)
per share (diluted) ($0.13) $0.24 $0.01 $0.92
Average shares
outstanding
(diluted) 9,228,370 9,287,601 9,260,011 9,354,441
Key Operating Statistics:
Quarter Ended Twelve Months Ended
December 31 December 31
---------------------- ------------------------
2000 1999 2000 1999
---------- ----------- ------------ -----------
Total miles
(Loaded & Empty) 48,146,066 44,723,753 191,317,692 147,593,714
Empty mile factor 9.44% 8.72% 9.16% 9.26%
Revenue per mile $1.196 $1.154 $1.184 $1.127
Average number
of tractors 1,751 1,549 1,740 1,223
Miles per tractor 27,496 28,873 109,953 120,682
Average miles per
tractor per week 2,254 2,367 2,190 2,404
Miles per trip 863 896 871 908
Number of shipments 50,532 45,541 199,611 147,484
Operating ratio 100.9% 91.6% 97.4% 90.5%
In comparing the financial results of the quarter ended December 31, 2000 to the quarter ended December 31, 1999, Robert M. Powell, Chairman, President and CEO of the Company, said, "Escalating fuel cost, driver turnover and related reduction in utilization and the increased cost of insurance and claims disrupted our profitability in the fourth quarter. Fuel cost per gallon was up 21.9% from the fourth quarter of 1999 which resulted in $2.4 million of pretax cost. To combat the high driver turnover in the first nine months, a 16% driver pay increase was initiated October 1, 2000, and added $1.5 million to our cost base. The large number of students and inexperienced over-the-road drivers hired during the prior few quarters increased the number and severity of accidents, which resulted in USA Truck reporting its highest ever rate of insurance cost at 8.4 percent of revenue in the fourth quarter of 2000, up 90.9% from 4.4 percent of revenue in the fourth quarter of 1999. About one-half of that increase came from the costs associated with two claims. However, we are already seeing positive effects from the driver pay increase on the number and severity of claims.
"The year 2000 was a turbulent year in the truckload industry and USA Truck felt the full brunt of it. Record revenues in excess of $226 million could not overcome the `perfect storm' born of a slowing economy, steadily increasing interest rates, out-of-control fuel prices, an unprecedented driver shortage and a sagging used tractor market. While revenue grew by 36 percent, net income fell to a meager $.01 per diluted share. Revenue per mile, primarily driven by fuel surcharge, surged to $1.18, up a nickel per mile from 1999. Fuel cost however, rose $.06 to $.26 per paid mile.
"The acquisition of CCC Express, Inc. in November 1999 came just as the `perfect storm' was brewing and served as a catalyst for the negative economic conditions' effect on us. Our empty tractor count began rising when we inherited several unmanned CCC tractors. What began as a trickle gave way to a torrent as the unmanned tractor count peaked at 275 on August 31, 2000. However, at that time we had formulated a plan to man those tractors.
The plan centered on a mammoth driver pay increase and called for zero unmanned tractors by February 28, 2001. The payback is to come in the form of drastically reduced driver turnover and reduction of related cost, fewer and less expensive accidents, better utilization and more consistent customer service. As of today, turnover and accident rates have fallen and utilization has improved as tractors are filled with experienced drivers. Today the unmanned tractor count is at 93, just 5.3% of the fleet."