USA Truck, Inc. Announces Record Operating Revenues
VAN BUREN, Ark.--July 17, 2002--USA Truck, Inc. today announced record operating revenues, before fuel surcharge, of $68,924,995 for the quarter ended June 30, 2002, an increase of 11.4% from $61,877,997 for the same quarter of 2001. Net income increased 162.1% to $730,149 for the second quarter of 2002, compared to $278,557 for the same quarter of 2001. Fully diluted net income per share for the quarter ended June 30, 2002 was $.08 compared to $.03 for the same quarter of 2001.The following table summarizes the earnings information of USA Truck, Inc. ("the Company"):
Quarter Ended Six Months Ended
June 30, June 30,
------------------------- -------------------------
2002 2001 2002 2001
------------ ------------ ------------ ------------
Revenue:
Revenue, before fuel
surcharge $68,924,995 $61,877,997 $130,570,440 $120,165,468
Fuel surcharge 1,067,865 2,342,636 1,264,575 4,963,539
------------ ------------ ------------ ------------
Total revenue 69,992,860 64,220,633 131,835,015 125,129,007
------------ ------------ ------------ ------------
Operating expenses
and costs:
Salaries, wages and
employee
benefits 27,195,500 27,425,889 53,871,488 53,733,228
Operations and
maintenance 24,832,918 21,432,180 44,938,519 41,492,541
Operating taxes and
licenses 1,098,147 1,094,628 2,118,256 2,106,509
Insurance and claims 4,169,637 3,188,893 7,852,754 6,258,908
Communications and
utilities 690,494 676,121 1,387,417 1,360,660
Depreciation and
amortization 6,798,107 6,656,289 13,420,889 13,382,232
Other 2,513,453 2,183,330 4,584,580 4,638,118
------------ ------------ ------------ ------------
Total operating
expenses and costs 67,298,256 62,657,330 128,173,903 122,972,196
------------ ------------ ------------ ------------
Operating income 2,694,604 1,563,303 3,661,112 2,156,811
Other expenses, net 675,236 1,109,326 1,519,837 2,365,433
------------ ------------ ------------ ------------
Income (loss) before
income taxes 2,019,368 453,977 2,141,275 (208,622)
Income tax expense
(benefit) 1,289,219 175,420 1,337,273 (82,270)
------------ ------------ ------------ ------------
Net income (loss) $730,149 $278,557 $804,002 $(126,352)
============ ============ ============ ============
Earnings (loss) per
share (diluted) $0.08 $0.03 $0.09 ($0.01)
Average shares
outstanding
(diluted) 9,363,262 9,266,526 9,342,242 9,235,174
Quarter Ended Six Months Ended
June 30, June 30,
---------------------- -------------------------
2002 2001 2002 2001
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Total miles
(Loaded & Empty) 57,046,238 54,259,028 110,135,435 105,579,167
Empty mile factor 9.17% 9.88% 9.66% 9.79%
Revenue per mile(a) $1.208 $1.140 $1.186 $1.138
Average number of
tractors 1,883 1,770 1,839 1,767
Miles per tractor 30,295 30,655 59,889 59,751
Average miles per
tractor per week 2,367 2,433 2,358 2,352
Miles per trip 807 828 812 835
Number of shipments 64,177 59,022 122,548 114,070
Operating ratio(b) 96.1% 97.5% 97.2% 98.2%
(a) Revenue per mile as reported above is based upon revenue,
before fuel surcharge.
(b) Operating ratio as reported above is based upon total
operating expenses, net of fuel surcharge, as a percentage of
revenue, before fuel surcharge.
In comparing the financial results of the quarter ended June 30, 2002 to the quarter ended June 30, 2001, Robert M. Powell, Chairman and CEO of the Company, made the following statement:
We are pleased with our revenue growth of 11.4% given that our tractor fleet only grew by 6.4%. Our 2002 focus on revenue quality produced 5.9% higher revenue per mile, net of fuel surcharge, and reduced the empty mile factor from 9.88% of paid miles in the second quarter of 2001 to 9.17% of paid miles in the same quarter of 2002. In addition, our USA Logistics division added significant volume during the second quarter, increasing its third party logistics and brokerage revenue by 321.8% to $4.3 million.
On the cost side of our business, we continue to see reductions in the frequency of accidents, fuel prices have stabilized and we have effectively capped our driver pay expense. However, driver pay is still the single largest item negatively impacting our current margins when they're compared to historical levels. Insurance claim costs have stabilized, but higher premiums continue to exert downward pressure on our operating margins. Finally, because we are not trading tractors this year due to the weak used equipment market, we have experienced slightly higher depreciation expense and higher direct repair costs to maintain the slightly older tractors in the fleet.
Overall, we are pleased to be making progress on our margins, but are focused on continually driving down the operating ratio towards historical levels. Management continues to explore all available avenues for improving revenue quality and reducing costs despite the volatile economic climate.
This press release contains forward-looking statements and information that are based on management's current beliefs and expectations and assumptions made by it based upon information currently available. Forward-looking statements include statements relating to the Company's plans, strategies, objectives, expectations, intentions, and adequacy of resources, may be identified by words such as "will," "could," "should," "believe," "expect," "intend," "plan," "schedule," "estimate," "project" and similar expressions. These statements are based on current expectations and are subject to uncertainty and change. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will be realized. Should one or more of the risks or uncertainties underlying such expectations materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. Among the key factors that are not within the Company's control and that may have a direct bearing on operating results are increases in diesel prices, adverse weather conditions and the impact of increased rate competition. The Company's results may also be significantly affected by fluctuations in general economic conditions, as the Company's utilization rates are directly related to business levels of shippers in a variety of industries. In addition, shortages of qualified drivers and intense or increased competition for drivers may adversely impact the Company's operating results and its ability to grow. Results for any specific period could also be affected by various unforeseen events, such as unusual levels of equipment failure or vehicle accident claims.
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.