USA Truck Announces Operating Results
13 October 1998
USA Truck Announces Operating Results
VAN BUREN, Ark.--Oct. 12, 1998--USA Truck, Inc. announced operating revenues of $36,266,931 for the quarter ended Sept. 30, 1998, up 10.3% from $32,890,769 for the same quarter of 1997. Net income increased 22.6% to a record $2,822,007 for the third quarter of 1998, compared to $2,301,813 for the third quarter of 1997, an increase of 25.0% in diluted net income per share to $.30 from $.24. These amounts represent the highest net income and diluted net income per share for any quarter in the Company's history.For the nine months ended Sept. 30, 1998, operating revenues increased 13.9% to $108,877,380, from $95,630,055 for the nine months ended Sept. 30, 1997. Net income increased 44.5% to $7,957,802 for the nine months ended Sept. 30, 1998, compared to $5,508,406 for the nine months ended Sept. 30, 1997, an increase of 44.8% in diluted net income per share to $.84 from $.58.
The following table summarizes USA Truck's earnings information:
Quarter Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
Operating revenues $36,266,931 $32,890,769 $108,877,380 $ 95,630,055
Operating expenses
and costs:
Salaries, wages and
employee benefits 15,067,522 13,336,040 45,791,659 39,739,515
Operations and
maintenance 8,389,124 8,441,197 25,399,416 25,733,004
Operating taxes and
licenses 633,155 531,209 1,928,211 1,618,719
Insurance and claims 1,646,942 1,660,428 5,135,251 4,698,708
Communications and
utilities 396,216 480,521 1,032,317 1,363,947
Depreciation and
amortization 4,124,730 3,562,933 12,129,781 9,960,940
Other 955,532 884,485 2,999,304 2,696,783
Total operating
expenses and costs 31,213,221 28,896,813 94,415,939 85,811,616
Operating income 5,053,710 3,993,956 14,461,441 9,818,439
Other expenses, net 435,041 226,668 1,437,215 803,044
Income before income
taxes 4,618,669 3,767,288 13,024,226 9,015,395
Income taxes 1,796,662 1,465,475 5,066,424 3,506,989
Net income $ 2,822,007 $ 2,301,813 $ 7,957,802 $ 5,508,406
Earnings per
share (diluted) $0.30 $0.24 $0.84 $0.58
Average shares
outstanding (diluted) 9,512,954 9,508,090 9,490,087 9,484,178
Key Operating Statistics:
Quarter Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
Total miles
(Loaded & Empty) 32,448,623 29,771,858 97,419,663 86,522,766
Empty mile factor 9.54% 10.20% 9.93% 10.21%
Revenue per mile $1.118 $1.105 $1.118 $1.105
Average number of tractors 1,085 954 1,054 916
Miles per tractor 29,907 31,207 92,429 94,457
Average miles per tractor
per week 2,336 2,438 2,432 2,486
Miles per trip 905 899 911 903
Number of shipments 32,423 29,742 96,267 86,079
Operating ratio 86.1% 87.9% 86.7% 89.7%
In comparing the financial results of the quarter ended Sept. 30, 1998, to the quarter ended Sept. 30, 1997, Robert M. Powell, President and CEO of the Company, said, "We are extremely pleased to be reporting record quarterly profits and an 86.1% operating ratio, even as fuel prices have increased to our historical average price and we continue to have a great deal of competition for good drivers."
"Top line growth for the third quarter and year-to-date was impeded by the shortage of drivers, which continues to haunt the truckload industry. As we enter the fourth quarter of 1998, we have taken two immediate steps to improve our ability to compete for drivers. First, we have improved our pay package for drivers effective Oct. 18, 1998. Secondly, we are contracting with a Junior College, located in one of our major traffic lanes, to hire all qualified graduates from their driver training school. We believe that these two changes are significant enough to bring our fleet expansion rate back in line with our long-term growth objectives by this time next year."
Over the past nine months, USA Truck's stockholders' equity has increased by $8.2 million, or 15.6%, to $60.6 million at Sept. 30, 1998 from $52.4 million at Dec. 31, 1997. "We are very pleased with this increase," said Powell. "Although the market price of our Common Stock, like the stock of many companies in the current down market, has not kept pace with financial performance, we believe this increase in stockholders' equity shows that we are continuing to work to improve stockholder value."
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 SEC 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 in the Canadian provinces of Ontario and Quebec and in Mexico through the gateway city of Laredo, Texas.