USA Truck, Inc. Announces Record Operating Revenues
VAN BUREN, Ark.--Oct. 16, 2002--USA Truck, Inc. today announced record operating revenues, before fuel surcharge, of $70,651,305 for the quarter ended September 30, 2002, an increase of 12.4% from $62,869,859 for the same quarter of 2001. Net income increased 115.7% to $1,271,086 for the third quarter of 2002, compared to $589,287 for the same quarter of 2001. Fully diluted net income per share for the quarter ended September 30, 2002 was $.14 compared to $.06 for the same quarter of 2001, an increase of 133.3%.The following table summarizes the earnings information of USA Truck, Inc. ("the Company"):
Quarter Ended Nine Months Ended
September 30, September 30,
------------------------- ---------------------------
2002 2001 2002 2001
------------ ------------ ------------- -------------
Revenue:
Revenue, before
fuel surcharge $70,651,305 $62,869,859 $201,221,745 $183,035,327
Fuel surcharge 1,671,810 1,997,512 2,936,385 6,961,051
------------ ------------ ------------- -------------
Total revenue 72,323,115 64,867,371 204,158,130 189,996,378
------------ ------------ ------------- -------------
Operating expenses and costs:
Salaries, wages
and employee
benefits 27,138,295 27,349,174 81,009,783 81,082,402
Fuel & fuel taxes 12,569,554 12,605,695 35,099,029 39,009,051
Purchased
transportation 7,409,328 3,185,990 18,887,875 6,736,081
Depreciation and
amortization 7,067,364 6,530,735 20,488,253 19,912,967
Operations and
maintenance 5,672,101 5,658,856 16,602,598 17,197,950
Insurance and
claims 4,643,859 3,663,501 12,496,613 9,922,409
Operating taxes
and licenses 1,131,138 856,117 3,249,394 2,962,626
Communications
and utilities 722,965 669,335 2,110,382 2,029,995
Other 2,553,001 2,068,187 7,137,581 6,706,305
------------ ------------ ------------- -------------
Total operating
expenses and
costs 68,907,605 62,587,590 197,081,508 185,559,786
------------ ------------ ------------- -------------
Operating income 3,415,510 2,279,781 7,076,622 4,436,592
Other expenses,
net 662,081 1,313,491 2,181,918 3,678,924
------------ ------------ ------------- -------------
Income before
income taxes 2,753,429 966,290 4,894,704 757,668
Income tax
expense 1,482,343 377,003 2,819,616 294,733
------------ ------------ ------------- -------------
Net income $1,271,086 $589,287 $2,075,088 $462,935
============ ============ ============= =============
Earnings per
share (diluted) $0.14 $0.06 $0.22 $0.05
Average shares
outstanding
(diluted) 9,359,062 9,277,221 9,341,642 9,281,664
Key Operating Statistics:
Quarter Ended Nine Months Ended
September 30, September 30,
----------------------- -------------------------
2002 2001 2002 2001
----------- ----------- ------------ ------------
Total miles
(Loaded & Empty) 57,912,442 53,860,515 168,047,877 159,439,682
Empty mile factor 8.92% 9.48% 9.41% 9.68%
Revenue per mile(1) $1.220 $1.167 $1.197 $1.148
Average number of
tractors 1,931 1,779 1,870 1,771
Miles per tractor 29,991 30,276 89,865 90,028
Average miles per
tractor per week 2,343 2,403 2,352 2,369
Miles per trip 804 827 809 832
Number of shipments 65,598 58,979 188,146 173,049
Operating ratio(2) 95.2% 96.4% 96.5% 97.6%
(1) Revenue per mile as reported above is based upon revenue,
before fuel surcharge.
(2) 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 September 30, 2002 to the quarter ended September 30, 2001, Robert M. Powell, Chairman and CEO of the Company, made the following statement:
We experienced strong freight demand in the third quarter despite
mixed economic indicators. The combination of that stronger demand
and a noticeable decline in industry capacity allowed us to
increase our rates slightly and reduce our empty mile factor below
9.00% for the first time since the fourth quarter of 1999. We will
continue with our efforts to increase those rates and to improve
equipment utilization, which was off 2.5% this quarter compared to
last year. Our USA Logistics division also continued its pattern
of strong revenue growth, expanding 34% mostly through third party
logistics services.
The improving economic environment and our internal cost-cutting
efforts created more operating margin during the third quarter. In
fact, we posted our lowest operating ratio (95.2%) since the
second quarter of 2000 and continued our encouraging trend of slow
but steady margin improvements. Those improvements are partially
the result of targeted cost-reducing programs and a more favorable
mix of freight that has yielded greater revenue per mile and lower
operating costs (fuel and tolls, for example).
However, the September fuel spike was detrimental to earnings as
was the continued tight insurance market, which forced premiums up
considerably late last year. We were able to renew our insurance
coverage at the end of the third quarter and, though the premiums
remained high, we were successful at reducing our self-insurance
retention and deductibles, thus reducing our risk exposure. We are
also watching the tractor markets closely. Our decision to extend
the lives of our tractor fleet during 2002 instead of trading
during the used tractor market depression has been successful thus
far. While the used tractor market slowly recovers, we are
beginning to see some increased maintenance costs associated with
that older equipment. We intend to begin trading the oldest
tractors in for new ones as soon as the used market prices meet
management expectations and the new EPA-compliant engines are
proven in the field.
While management continues to work diligently to take costs out of
the process at every opportunity, we are focused on four primary
cost areas: revenue mix (rates, utilization, empty miles), driver
pay, insurance/safety and maintenance. We have made progress in
all of these areas and will continue to focus on them until we are
satisfied that we have squeezed every possible penny from them.
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.