USA Truck, Inc. Announces Operating Revenues
VAN BUREN, Ark.--Jan. 29, 2003--USA Truck, Inc. today announced operating revenues, before fuel surcharge, of $67,288,025 for the quarter ended December 31, 2002, an increase of 9.7% from $61,361,075 for the same quarter of 2001. Net income decreased 15.6% to $526,746 for the fourth quarter of 2002, compared to $624,277 for the same quarter of 2001. Fully diluted net income per share for the quarter ended December 31, 2002 was $.06 compared to $.07 for the same quarter of 2001, a decrease of 14.3%.For the twelve-month period ended December 31, 2002, operating revenues, before fuel surcharge, increased 9.9% to $268,509,770 from $244,396,402 for the twelve-month period ended December 31, 2001. Net income increased 139.3% to $2,601,834 for the twelve-month period ended December 31, 2002, compared to $1,087,211 for the same period in 2001. Fully diluted net income per share for the twelve-month period ended December 31, 2002 was $.28 compared to $.12 for the twelve-month period ended December 31, 2001, an increase of 133.3%.
The following table summarizes the earnings information of USA Truck, Inc. (the "Company"):
Quarter Ended Twelve Months Ended
December 31, December 31,
2002 2001 2002 2001
----------- ----------- ------------ ------------
Base revenue $67,288,025 $61,361,075 $268,509,770 $244,396,402
Fuel surcharge 2,326,944 1,083,892 5,263,329 8,044,943
----------- ----------- ------------ ------------
Total
revenues 69,614,969 62,444,967 273,773,099 252,441,345
Operating
expenses and
costs:
Salaries, wages
and employee
benefits 25,407,857 26,526,834 106,417,640 107,609,237
Fuel and fuel
taxes 12,751,652 10,542,001 47,850,681 49,551,052
Purchased
transportation 7,135,822 3,992,161 26,023,697 10,728,242
Depreciation
and
amortization 7,322,193 6,505,293 27,810,446 26,418,261
Operations and
maintenance 4,989,536 5,418,747 21,592,134 22,616,695
Insurance and
claims 5,291,117 3,566,614 17,787,730 13,489,023
Operating taxes
and licenses 1,140,127 1,050,688 4,389,521 4,013,314
Communications
and utilities 681,391 593,898 2,791,773 2,623,892
Other 2,665,604 2,199,145 9,803,185 8,905,508
----------- ----------- ------------ ------------
Total
operating
expenses and
costs 67,385,299 60,395,381 264,466,807 245,955,224
----------- ----------- ------------ ------------
Operating income 2,229,670 2,049,586 9,306,292 6,486,121
Other expenses,
net 757,096 1,027,857 2,939,014 4,706,675
----------- ----------- ------------ ------------
Income before
income taxes 1,472,574 1,021,729 6,367,278 1,779,446
Income tax
expense 945,828 397,452 3,765,444 692,235
----------- ----------- ------------ ------------
Net income $ 526,746 $ 624,277 $ 2,601,834 $ 1,087,211
=========== =========== ============ =============
Earnings per
share (diluted) $ 0.06 $ 0.07 $ 0.28 $ 0.12
=========== =========== ============ =============
Average shares
outstanding
during period 9,355,076 9,291,936 9,347,560 9,279,268
=========== =========== ============ =============
Key Operating Statistics:
Quarter Ended Twelve Months Ended
December 31, December 31,
------------------------- ---------------------------
2002 2001 2002 2001
------------ ------------ ------------- -------------
Total miles
(Loaded & Empty) 54,030,815 52,162,386 222,078,692 211,602,068
Empty mile Factor 8.71% 10.25% 9.24% 9.82%
Revenue
per mile (a) $ 1.245 $ 1.176 $ 1.209 $ 1.155
Average number of
tractors 1,919 1,755 1,882 1,751
Miles per tractor 28,156 29,722 118,001 120,846
Average miles per
tractor per week 2,271 2,397 2,332 2,398
Miles per trip 760 808 796 826
Number of
shipments 64,917 57,953 253,063 231,002
Operating
ratio (b) 96.7% 96.7% 96.5% 97.3%
(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 December 31, 2002, to the quarter ended December 31, 2001, Robert M. Powell, Chairman and CEO of the Company, made the following statement:
We saw continued top-line growth during the fourth quarter. Freight demand remained relatively strong throughout the quarter, though Christmas week brought diminished volume due to the mid-week holiday. We continue to concentrate on our revenue mix (rate per mile, empty miles and equipment utilization). We were able to increase base freight rates, net of fuel surcharges, on non-purchased transportation revenue by 2.1% in the fourth quarter of 2002 compared to the same quarter a year ago, and we posted a significantly better empty mile factor of 8.71% for the quarter. We lost some ground on the equipment utilization this quarter due to the mid-week holiday, unmanned tractors and other operational factors, but we're focused on improving equipment utilization in 2003.
There were mixed results on the expense side, but the overall trend was positive. Our efforts to reign in driver pay have yielded steady cost reductions over the past several quarters. We adjusted about a third of the existing driver fleet to a lower pay scale in mid-December, which had an impact on the fourth quarter, but will have a much greater impact in 2003. We are also realizing benefits from improved maintenance and operations procedures designed to reduce repair and operational expenses.
The other side of that coin were the sharp increases in insurance premiums and claims costs. Quarter over quarter premium costs were up due to the continued hard insurance market. Though our safety data continues to improve, we also incurred significant expenses associated with two particular claims during the fourth quarter. Finally, driver recruiting expenses have risen as we strive to find qualified drivers that meet our strict safety standards. Those costs are likely to remain higher than usual in early 2003 as we work to hire drivers for currently unmanned equipment.
We are pleased with our overall progress and look forward to continuing the improving margin trend in 2003. We will continue to focus on the four primary cost areas of revenue mix, driver pay, insurance/safety and maintenance until we are satisfied that we have maximized our bottom line.
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.