Smithway Motor Xpress Corp. Reports First
Quarter Results
FORT DODGE, Iowa, April 26 Smithway Motor Xpress Corp. announced today financial and
operating results for the first quarter ended March 31, 2001. For the first
quarter, operating revenue decreased 6.6% to $47.4 million from $50.7 million
during the same quarter in 2000. Net loss was $1.3 million, or ($.26) per
basic and diluted share, compared with net earnings of $238,000, or $.05 per
basic and diluted share, during the 2000 quarter.
Chairman, President, and Chief Executive Officer William G. Smith stated,
"The slowing economy and the worst winter in many years were the main factors
that affected Smithway's profitability during the first quarter, along with
many other companies in our industry. Soft freight demand caused a
combination of fewer loads, rate pressure, higher non-revenue miles, and more
layovers. Our trucks were chasing freight throughout the quarter, and average
revenue per tractor per week dropped $130, to $2,193 from $2,323 during the
2000 quarter. The harsh winter added to the problem, increasing fuel, towing,
and repair expense, making deliveries difficult, and further slowing the
activity of customers in our core building materials group. In addition,
increased engine idling because of the cold weather and higher non-revenue
miles reduced the overall effect of our fuel surcharges. All in all, we are
experiencing one of the most challenging trucking environments I can remember.
These challenges continue in the second quarter of 2001.
"As much as the current trucking environment has impacted Smithway, it has
hit many of our competitors even harder. Some have gone out of business and
more will follow. We believe Smithway has received some benefit from the
shakeout, as we have experienced record driver orientation classes and our
tractor fleet is practically fully seated with drivers for the first time in
several years. When the economy improves and industry-wide truck capacity
comes back in line with demand, we expect better production and pricing will
follow. In the meantime we intend to focus on controlling costs, finding the
best available freight, and minimizing capital expenditures."
Smithway is a truckload carrier that hauls diversified freight nationwide,
concentrating primarily on the flatbed segment of the truckload market. Its
Class A Common Stock is traded on the Nasdaq National Market under the symbol
"SMXC."
This press release and statements made by the Company in reports to its
stockholders and public filings, as well as oral public statements by Company
representatives, may contain certain forward-looking information that is
subject to certain risks and uncertainties that could cause actual results to
differ materially from those projected. Without limitation, these risks and
uncertainties include economic recessions or downturns in customers' business
cycles, excessive increases in capacity within truckload markets, decreased
demand for transportation services offered by the Company, rapid inflation,
fuel prices and fuel hedging, increases in interest rates, the availability
and compensation of qualified drivers and owner-operators, the resale value of
used equipment, and the ability to negotiate, consummate, and integrate
acquisitions. Readers should review and consider the various disclosures made
by the Company in this press release and in its reports to stockholders and
periodic reports on Forms 10-K and 10-Q.
SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
(Dollars in thousands, except share and per share data and operating
statistics)
Three months ended
March 31,
2000 2001
Operating revenue:
Freight $50,579 $47,230
Other 169 149
Operating revenue 50,748 47,379
Operating expenses:
Purchased transportation 19,974 17,579
Compensation and employee
benefits 13,309 13,360
Fuel, supplies, and maintenance 7,264 8,615
Insurance and claims 798 984
Taxes and licenses 918 886
General and administrative 1,891 1,989
Communications and utilities 526 561
Depreciation and amortization 4,549 4,532
Total operating expenses 49,229 48,506
Earnings from operations 1,519 (1,127)
Financial (expense) income:
Interest expense (1,015) (860)
Interest income 17 12
Earnings before income taxes 521 (1,975)
Income taxes 283 (687)
Net earnings $238 ($1,288)
Basic and diluted earnings per
share $0.05 ($0.26)
Basic weighted average common
shares outstanding 5,020,464 4,875,503
Diluted weighted average common
shares outstanding 5,020,464 4,875,503
Operating Statistics Three months ended
March 31,
2000 2001
Operating ratio 97.0% 102.4%
Average revenue per tractor per
week $2,323 * $2,193 *
Average length of haul in miles 682 756
Average revenue per loaded mile $1.33 * $1.31 *
Ending company tractors 860 935
Ending owner/operators tractors 672 667
Ending trailers 2,791 2,805
Weighted average tractors 1,538 1,501
* excludes fuel surcharge
SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
December 31, March 31,
2000 2001
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $349 $795
Receivables, net 19,159 21,975
Inventories 1,586 1,601
Prepaid expenses and other 2,454 3,402
Total current assets 23,548 27,773
Property and equipment 136,180 138,995
Less accumulated depreciation 49,432 53,538
Net property and equipment 86,748 85,457
Other assets 5,532 5,650
Total assets $115,828 $118,880
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Current debt $8,636 $9,687
Accounts payable and accrued
expenses 11,612 13,685
Total current liabilities 20,248 23,372
Long-term debt 43,698 45,694
Deferred income taxes 14,649 14,011
Total liabilities 78,595 83,077
Stockholders' equity 37,233 35,803
Total liabilities and stockholders'
equity $115,828 $118,880
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