USA Truck, Inc. Announces Operating Results
VAN BUREN, Ark.--April 18, 2001--USA Truck, Inc. today announced operating revenues for the quarter ended March 31, 2001 of $60,908,374, up 10.5% from $55,144,425 for the same quarter of 2000. The net loss of $404,910 for the first quarter of 2001 was slightly more than the loss of $394,385 for the first quarter of 2000. Fully-diluted net loss per share was $.04 for the quarter ended March 31, 2001 as well as for the quarter ended March 31, 2000.
The following table sets forth in summary form USA Truck's
earnings information:
Quarter Ended
March 31,
------------------------------
2001 2000
------------------------------
Operating revenues $60,908,374 $55,144,425
Operating expenses
and costs:
Salaries, wages and
employee benefits 26,307,339 22,511,334
Operations and
maintenance 20,060,361 17,708,908
Operating taxes
and licenses 1,011,831 1,175,876
Insurance and claims 3,070,015 2,809,509
Communications and
utilities 684,539 711,992
Depreciation and
amortization 6,726,050 6,821,145
Other 2,454,788 2,605,599
------------ ------------
Total operating
expenses and costs 60,314,923 54,344,363
------------ ------------
Operating income 593,451 800,062
Other expenses, net 1,256,001 1,451,235
------------ ------------
Loss before
income taxes (662,550) (651,173)
Income tax benefit (257,640) (256,788)
------------ ------------
Net loss $(404,910) $(394,385)
============ ============
Loss per share
(diluted) ($0.04) ($0.04)
Average shares
outstanding (diluted) 9,232,087 9,288,976
Key Operating Statistics:
Quarter Ended
March 31,
-------------------------------
2001 2000
-------------- ---------------
Total miles (Loaded & Empty) 51,320,139 47,450,466
Empty mile factor 9.69% 9.00%
Revenue per mile $1.187 $1.162
Average number of tractors 1,763 1,729
Miles per tractor 29,110 27,444
Average miles per
tractor per week 2,274 2,144
Miles per trip 842 890
Number of shipments 55,048 48,508
Operating ratio 98.9% 98.5%
In comparing the financial results of the quarter ended March 31, 2001 to the quarter ended March 31, 2000, Robert M. Powell, Chairman, President and CEO of the Company, said, "over the past few quarters, we have been addressing the issue of revenue growth with declining net income caused by sagging equipment utilization. We are pleased to announce that the trend is beginning to turn and we are seeing positive results from our efforts."
"During the first quarter of 2001, we saw improvements in the quality and number of drivers hired as a result of the driver pay increase implemented last October. The new driver pay package allowed us to drastically reduce the number of unassigned tractors during the first quarter of 2001 as well as increase our average miles per tractor per week. The number of shipments increased 13.5% for the first quarter of 2001 compared to 2000 with a 2% increase in the average number of tractors. Other areas are showing improvement such as a 4.2% decrease in recruiting costs, a 22.2% decline in our accident rate and a 25.5% decline in the driver turnover rate for the first quarter of 2001 compared to the same quarter of 2000."
Although, these positive trends began to develop and the Company saw some savings, the savings had not fully matured and were not enough to overcome the higher cost of the driver pay increase. Certain cost saving goals were set when the driver pay package was implemented. The Company is closely monitoring the actual savings to determine if these goals are met. The Company is also managing its costs by investigating those costs that are higher, as a percentage of revenue, than its benchmark year and creating a plan to return these costs to their benchmark percentage of revenue.
This press release contains forward-looking statements. Among the key factors that are not within the Company's control and that may cause operating results to differ materially from those contemplated by such statements are increases in diesel prices, adverse weather conditions and the impact of increased rate competition and competition for qualified drivers, as well as various unforeseen events such as unusual levels of equipment failure or vehicle accident claims. Fluctuations in general economic conditions also may have a significant impact, as the Company's utilization rates are directly related to business levels of shippers in a variety of industries. See also the factors discussed in the Company's filings with the SEC under the Securities Exchange Act of 1934.
USA Truck is a medium haul, common and contract carrier specializing in truckload quantities of general commodities. The Company operates in the 48 contiguous United States and the Canadian provinces of Ontario and Quebec and in Mexico through the gateway city of Laredo, Texas.