USA Truck Announces Operating Results
20 January 1999
USA Truck Announces Operating Results
VAN BUREN, Ark.--Jan. 20, 1999--USA Truck, Inc. (NASDAQ NMS:USAK) announced operating revenues of $36,338,741 for the quarter ended December 31, 1998, up 7.3% from $33,877,187 for the same quarter of 1997. Net income increased 6.0% to $2,539,349 for the fourth quarter of 1998, compared to $2,395,064 for the fourth quarter of 1997, an increase of 8.0% in diluted net income per share to $.27 from $.25.The Company also announced record operating revenues for the year ended December 31, 1998, of $145,216,121, up 12.1% from $129,507,242 for the year ended December 31, 1997. Net income increased 32.8% to $10,497,149 for the year ended December 31, 1998, compared to $7,903,472 for the year ended December 31, 1997, an increase of 33.7% in diluted net income per share to $1.11 from $.83. This is the highest net income and net income per diluted share amount in the Company's history.
The following table summarizes USA Truck's earnings information:
Quarter Ended Year Ended
December 31, December 31,
----------------------- -------------------------
1998 1997 1998 1997
----------- ----------- ------------ ------------
Operating revenues $36,338,741 $33,877,187 $145,216,121 $129,507,242
Operating expenses
and costs:
Salaries, wages and
employee benefits 15,505,201 13,382,620 61,296,860 53,122,136
Operations and
maintenance 8,001,566 8,455,554 33,400,982 34,188,558
Operating taxes and
licenses 619,237 541,690 2,547,449 2,160,408
Insurance and claims 2,114,602 2,074,293 7,249,853 6,773,001
Communications and
utilities 436,168 463,661 1,468,485 1,827,608
Depreciation and
amortization 4,049,362 3,646,894 16,179,143 13,607,835
Other 1,113,854 962,209 4,113,158 3,658,992
----------- ----------- ------------ ------------
Total operating
expenses and costs 31,839,990 29,526,921 126,255,930 115,338,538
----------- ----------- ------------ ------------
Operating income 4,498,751 4,350,266 18,960,191 14,168,704
Other expenses, net 342,699 384,065 1,779,914 1,187,109
----------- ----------- ------------ ------------
Income before income
taxes 4,156,052 3,966,201 17,180,277 12,981,595
Income taxes 1,616,704 1,571,134 6,683,128 5,078,123
----------- ----------- ------------ ------------
Net income $ 2,539,348 $ 2,395,067 $ 10,497,149 $ 7,903,472
Earnings per
share (diluted) $0.27 $0.25 $1.11 $0.83
Average shares
outstanding (diluted) 9,442,155 9,522,347 9,465,971 9,484,570
Key Operating Statistics:
Quarter Ended Year Ended
December 31, December 31,
----------------------- -------------------------
1998 1997 1998 1997
----------- ----------- ------------ ------------
Total miles
(Loaded & Empty) 32,742,623 30,125,272 130,162,286 116,648,038
Empty mile factor 9.32% 9.61% 9.78% 10.05%
Revenue per mile $1.110 $1.125 $1.116 $1.110
Average number of tractors 1,070 992 1,058 935
Miles per tractor 30,601 30,368 123,027 124,757
Average miles per tractor
per week 2,468 2,449 2,441 2,475
Miles per trip 930 975 916 920
Number of shipments 31,912 27,943 128,179 114,022
Operating ratio 87.6% 87.2% 86.9% 89.1%
In comparing the financial results of the quarter ended December 31, 1998, to the quarter ended December 31, 1997, Robert M. Powell, President and CEO of the Company, said, "We are extremely pleased to show an increase in utilization and profits over a very strong fourth quarter of 1997 that benefited from an unusual freight surge due to rail congestion problems in the Southwest and the West late last year. Our revenue growth this quarter resulted in part from the successful expansion of our regular marketing team and new marketing efforts for our logistics services, dedicated fleet operations and private fleet conversions during 1998. Our volume of shipments to and from Laredo, Texas, our 'gateway' city on the U.S.-Mexico border, also increased due to expanded marketing efforts with shippers engaged in cross-border commerce." Mr. Powell added, "This positive comparison was also aided by favorable fuel prices and partially offset by an average driver pay increase of 5.96%, which became effective on October 18, 1998."
The equity of the Company grew $10.4 million, or 19.8%, to $62.7 million, while long-term debt was reduced $8.0 million, or 29.6%, to $19.1 million as of December 31, 1998 compared to a year ago. "In looking at the entire year, the results of 1998 added considerable strength to our balance sheet," said Mr. Powell. "This was accomplished while maintaining our fleet of revenue equipment in tip-top shape and continuing our normal revenue equipment replacement program. At the end of 1998, the average age of our tractors and trailers was 19 months and 39 months, respectively."
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 the Canadian provinces of Ontario and Quebec and in Mexico through the gateway city of Laredo, Texas.