USA Truck, Inc. Announces Operating Results
VAN BUREN, Ark.--July 18, 2001--USA Truck, Inc. today announced record operating revenues of $64,220,633 for the quarter ended June 30, 2001, an increase of 10.1% from $58,348,467 for the same quarter of 2000. Net income decreased 76.4% to $278,557 for the second quarter of 2001, compared to $1,180,067 for the second quarter of 2000. Fully-diluted net income per share for the quarter ended June 30, 2001 was $.03 compared to $.13 for the same quarter in 2000.For the six-month period ended June 30, 2001, operating revenues increased 10.3% to $125,129,007, from $113,492,892 for the six-month period ended June 30, 2000. Net income decreased 116.1% to a loss of $126,352 for the six months ended June 30, 2001, compared to a profit of $785,682 for the six months ended June 30, 2000, representing a decrease of 112.5% in diluted net income per share to a loss of $.01 from a profit of $.08.
The following table summarizes the earnings information of USA Truck, Inc. ("the Company"):
Quarter Ended Six Months Ended
June 30, June 30,
------------------------- -------------------------
2001 2000 2001 2000
------------ ------------ ------------ ------------
Operating revenues $ 64,220,633 $ 58,348,467 $125,129,007 $113,492,892
Operating expenses
and costs:
Salaries, wages and
employee benefits 27,425,889 23,140,800 53,733,228 45,652,134
Operations and
maintenance 21,432,180 17,426,194 41,492,541 35,135,102
Operating taxes
and licenses 1,094,628 1,017,650 2,106,509 2,193,526
Insurance and
claims 3,188,893 3,673,090 6,258,908 6,482,599
Communications and
utilities 676,121 688,986 1,360,660 1,400,978
Depreciation and
amortization 6,656,289 6,726,299 13,382,232 13,547,444
Other 2,183,330 2,198,614 4,638,118 4,804,213
------------ ------------ ------------ ------------
Total operating
expenses and costs 62,657,330 54,871,633 122,972,196 109,215,996
------------ ------------ ------------ ------------
Operating income 1,563,303 3,476,834 2,156,811 4,276,896
Other expenses, net 1,109,326 1,533,420 2,365,433 2,984,655
------------ ------------ ------------ ------------
Income (loss) before
income taxes 453,977 1,943,414 (208,622) 1,292,241
Income tax expense
(benefit) 175,420 763,347 (82,270) 506,559
------------ ------------ ------------ ------------
Net income (loss) $ 278,557 $ 1,180,067 $ (126,352)$ 785,682
============ ============ ============ ============
Earnings (loss)
per share (diluted) $0.03 $0.13 ($0.01) $0.08
Average shares
outstanding
(diluted) 9,266,526 9,302,194 9,235,174 9,297,256
Key Operating Statistics:
Quarter Ended Six Months Ended
June 30, June 30,
------------------------ ------------------------
2001 2000 2001 2000
----------- ----------- ----------- -----------
Total miles
(Loaded & Empty) 54,259,028 49,347,960 105,579,167 96,798,426
Empty mile factor 9.88% 8.96% 9.79% 8.98%
Revenue per mile $1.184 $1.182 $1.185 $1.173
Average number
of tractors 1,771 1,742 1,767 1,736
Miles per tractor 30,638 28,328 59,751 55,759
Average miles per
tractor per week 2,432 2,248 2,352 2,196
Miles per trip 828 885 835 887
Number of shipments 59,022 50,785 114,070 99,293
Operating ratio 97.7% 94.0% 98.3% 96.2%
In comparing the financial results of the quarter ended June 30, 2001 to the quarter ended June 30, 2000, Robert M. Powell, Chairman, President and CEO of the Company, made the following statement:
The results of our concerted efforts to manage the costs associated with our October 1, 2000 driver pay increase as well as an aggressive company-wide cost cutting campaign, which began in January 2001, are encouraging.
We made marked improvements in safety and risk management, reducing the frequency of accidents by 34.7% for the quarter ended June 30, 2001 compared to the same quarter of 2000 while increasing our miles traveled by 10.0%. Perhaps the most encouraging news comes from driver turnover where we replaced 17.4% fewer company drivers during the second quarter of 2001 than during the same quarter a year ago despite having 14.5% more drivers on our payroll. The improved retention translated into a pre-tax recruiting expense savings of $664,000, or 28.0%, for the second quarter of 2001 compared to the second quarter of 2000.
Diesel fuel costs began decreasing in late June 2001, but the decrease came too late to benefit us in the second quarter. Our price per gallon increased 2.1% to $1.40 for the quarter ended June 30, 2001 from $1.37 in the same quarter a year ago. We compensated for some of this additional cost through improved fuel economy, which rose 1.4% from the same quarter of 2000. We are continuing to manage fuel costs through a fuel revenue surcharge, tractor speed control and a comprehensive equipment maintenance program.
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 Securities and Exchange Commission 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.