USA Truck, Inc. Announces Operating Results
26 January 2000
USA Truck, Inc. Announces Operating Results
VAN BUREN, Ark.--Jan. 26, 2000--USA Truck, Inc. (NASDAQ NMS: USAK) today announced record operating revenues of $51,629,555 for the quarter ended December 31, 1999, up 42.1% from $36,338,741 for the same quarter of 1998. Net income decreased 13.6% to $2,193,583 for the fourth quarter of 1999, compared to $2,539,348 for the fourth quarter of 1998, a decrease of 11.1% in diluted net income per share to $.24 from $.27.For the twelve months ended December 31, 1999, operating revenues increased 14.6% to $166,363,356 from $145,216,121 for the twelve months ended December 31, 1998. Net income decreased 17.7% to $8,641,502 for the twelve months ended December 31, 1999, compared to $10,497,149 for the twelve months ended December 31, 1998, a decrease of 17.1% in diluted net income per share to $.92 from $1.11.
The following table summarizes USA Truck's earnings information: -0-
Quarter Ended Twelve Months Ended
December 31, December 31,
--------------------------- ---------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
Operating
revenues $ 51,629,555 $ 36,338,741 $166,363,356 $145,216,121
Operating
expenses
and costs:
Salaries,
wages and
employee
benefits 21,060,614 15,505,201 70,197,581 61,296,860
Operations
and
maintenance 14,653,669 8,001,566 42,480,525 33,400,982
Operating
taxes and
licenses 955,591 619,237 3,005,166 2,547,449
Insurance
and claims 2,284,504 2,114,602 7,987,208 7,249,853
Communications
and utilities 587,184 436,168 1,999,548 1,468,485
Depreciation
and
amortization 5,717,030 4,049,362 18,591,780 16,179,143
Other 2,043,899 1,113,854 6,264,876 4,113,158
------------ ------------ ------------ ------------
Total
operating
expenses
and costs 47,302,491 31,839,990 150,526,684 126,255,930
------------ ------------ ------------ ------------
Operating
income 4,327,064 4,498,751 15,836,672 18,960,191
Other
expenses, net 719,180 342,699 1,623,673 1,779,914
------------ ------------ ------------ ------------
Income before
income taxes 3,607,884 4,156,052 14,212,999 17,180,277
Income taxes 1,414,291 1,616,704 5,571,497 6,683,128
============ ============ ============ ============
Net income $ 2,193,593 $ 2,539,348 $ 8,641,502 $ 10,497,149
============ ============ ============ ============
Earnings per
share
(diluted) $0.24 $0.27 $0.92 $1.11
Average shares
outstanding
(diluted) 9,287,601 9,442,155 9,354,441 9,465,971
Key Operating Statistics:
Quarter Ended Twelve Months Ended
December 31, December 31,
--------------------------- ---------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
Total miles
(Loaded
& Empty) 44,723,753 32,742,623 147,593,714 130,162,286
Empty mile
factor 8.72% 9.32% 9.26% 9.78%
Revenue
per mile $1.154 $1.110 $1.127 $1.116
Average
number of
tractors 1,549 1,070 1,223 1,058
Miles per
tractor 28,873 30,601 120,682 123,027
Average
miles per
tractor
per week 2,367 2,468 2,404 2,441
Miles per
trip 896 930 908 916
Number of
shipments 45,541 31,912 147,484 128,179
Operating
ratio 91.6% 87.6% 90.5% 86.9%
In comparing the financial results of the quarter ended December 31, 1999, to the quarter ended December 31, 1998, Robert M. Powell, President and CEO of the Company, said, "the acquisition of CCC Express on November 1, 1999 has gone smoothly and is fully integrated into USA Truck operationally. We expected to see a drop in utilization because CCC's history on utilization was approximately 2,040 miles per tractor per week. We are extremely pleased with the 4% improvement in revenue per mile during the fourth quarter. This is a composite effect of the CCC acquisition, fuel surcharges, rate adjustments and a small amount of brokerage revenue, which generates no miles."
"As we look at the year-to-year comparisons from an operational viewpoint, the highlights include 15% revenue growth, the best empty mile ratio we have seen in years, and the number of shipments increased by 19,305 loads to 147,484. These factors were slightly offset by a decline in utilization per tractor. We are addressing the utilization issue as well as the other cost pressures such as fuel and recruiting. The economy remains robust and we are excited about the outlook for the new year."
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.