Smithway Motor Xpress Corp. Reports Second Quarter Results and Appointment Of Donald A. Orr as Chief Operating Officer
Smithway Motor Xpress Corp. Reports Second Quarter Results and Appointment Of Donald A. Orr as Chief Operating Officer
FORT DODGE, Iowa, Aug. 3 Smithway Motor Xpress Corp. announced today financial and
operating results for the second quarter and six months ended June 30, 2001.
For the quarter, operating revenue increased 1.3% to $51.8 million from
$51.1 million during the same quarter in 2000. Net loss was $384,000, or
($.08) per basic and diluted share, compared with net earnings of $7,000
during the 2000 quarter.
For the six months, operating revenue decreased 2.7%, to $99.1 million
during the 2001 period from $101.8 million during the 2000 period. Net loss
was $1.7 million, or ($.34) per basic and diluted share, compared with net
earnings of $245,000, or $.05 per basic and diluted share, during the 2000
period.
Chairman, President, and Chief Executive Officer William G. Smith stated,
"Soft freight demand and high fuel costs continued to impact Smithway's
profitability during the second quarter. Revenue per tractor per week
improved almost 6% sequentially versus the first quarter of 2001, but remained
about 1% below the level of the second quarter last year. The resulting
revenue shortfall impacted our results.
"We are continuing to work on all fronts to return Smithway to
profitability. In that regard, we are pleased to announce that Donald A. Orr
will join Smithway as Executive Vice President and Chief Operating Officer.
Mr. Orr has almost 30 years of management experience in the trucking industry.
Most recently he has served as a management consultant, advising truckload
carriers on issues such as profitability, safety, and insurance. From 1985 to
1999, Mr. Orr served in several senior management positions, including
President and Chief Executive Officer for the Roberson Transport Companies, an
operator of both flatbed and dry van divisions that generates approximately
$120 million in annual revenue. Mr. Orr is a past Chairman of the Truckload
Carriers Association and the Illinois Trucking Association. He received his
degree in Business Administration from Temple University in 1971. At
Smithway, our sales and operations groups will report to Mr. Orr. Mr. Orr is
expected to join Smithway on August 6, 2001. Larry Owens will remain as Chief
Financial Officer and will assume the additional role of Chief Administrative
Officer."
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 its stockholder
reports and public filings, as well as oral public statements by Company
representatives, may contain certain forward-looking information, usually
identified by words such as "anticipates," "believes," "estimates,"
"projects," "expects," or similar expressions. These statements are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such statements are based upon the current beliefs and
expectations of the Company's management and are subject to significant risks
and uncertainties. Actual results may differ from those set forth in
forward-looking statements. The following factors, among others, could cause
actual results to differ materially from those in forward-looking statements:
economic recessions or downturns in customers' business cycles; excessive
increases in capacity within truckload markets; surplus inventories; decreased
demand for transportation services offered by the Company; increases or rapid
fluctuations in inflation, interest rates, fuel prices, and fuel hedging; the
availability and costs of attracting and retaining qualified drivers and
owner-operators; increases in insurance premiums and deductible amounts
relating to accident, cargo, workers' compensation, health, and other claims;
the resale value of used equipment; seasonal factors such as harsh weather
conditions that increase operating costs; 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, stockholder
reports, and in its Forms 10-K, 10-Q, and other public filings. The Company
disclaims any such obligation to update or alter its forward-looking
statements whether as a result of new information, future events, or
otherwise.
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 Year to date
June 30, June 30,
2000 2001 2000 2001
Operating revenue:
Freight $50,942 $51,590 $101,521 $98,820
Other 152 164 321 313
Operating revenue 51,094 51,754 101,842 99,133
Operating expenses:
Purchased transportation 20,275 18,765 40,249 36,344
Compensation and employee
benefits 13,085 14,339 26,394 27,699
Fuel, supplies, and
maintenance 7,345 9,068 14,609 17,683
Insurance and claims 1,104 1,048 1,902 2,032
Taxes and licenses 1,030 1,018 1,948 1,904
General and administrative 1,867 2,052 3,758 4,041
Communications and utilities 540 563 1,066 1,124
Depreciation and amortization 4,642 4,563 9,191 9,095
Total operating expenses 49,888 51,416 99,117 99,922
Earnings (loss) from
operations 1,206 338 2,725 (789)
Financial (expense) income:
Interest expense (1,062) (821) (2,077) (1,681)
Interest income 26 14 43 26
Earnings (loss) before
income taxes 170 (469) 691 (2,444)
Income taxes (benefit) 163 (85) 446 (772)
Net earnings (loss) $7 ($384) $245 ($1,672)
Basic and diluted earnings
per share (loss) $0.00 ($0.08) $0.05 ($0.34)
Basic weighted average
common shares outstanding 5,019,805 4,845,238 5,020,134 4,860,287
Diluted weighted average
common shares outstanding 5,019,805 4,845,238 5,020,134 4,860,287
Operating Statistics Three months ended Year to date
June 30, June 30,
2000 2001 2000 2001
Operating ratio 97.6% 99.3% 97.3% 100.8%
Average revenue per tractor per
week $2,348* $2,320* $2,336* $2,258*
Average length of haul in miles 732 737 707 746
Average revenue per loaded mile $1.33* $1.35* $1.32* $1.33*
Ending company tractors 860 949 860 949
Ending owner/operators tractors 626 613 626 613
Ending trailers 2,691 2,808 2,691 2,808
Weighted average tractors 1,498 1,572 1,518 1,537
*excludes fuel surcharge
SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
December 31, June 30,
2000 2001
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $349 $486
Receivables, net 19,159 22,955
Inventories 1,586 1,622
Prepaid expenses and other 2,454 2,422
Total current assets 23,548 27,485
Property and equipment 136,180 140,227
Less accumulated depreciation 49,432 57,250
Net property and equipment 86,748 82,977
Other assets 5,532 5,626
Total assets $115,828 $116,088
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current debt $8,636 $8,715
Accounts payable and accrued expenses 11,612 13,787
Total current liabilities 20,248 22,502
Long-term debt 43,698 44,357
Deferred income taxes 14,649 13,824
Total liabilities 78,595 80,683
Stockholders' equity 37,233 35,405
Total liabilities and stockholders' equity $115,828 $116,088
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