USA Truck, Inc. Announces Record Operating Revenues for the Quarter
19 July 2000
USA Truck, Inc. Announces Record Operating Revenues for the Quarter Ended June 30, 2000
VAN BUREN, Ark. - USA Truck, Inc. (Nasdaq NMS:USAK) today announced record operating revenues for the quarter ended June 30, 2000 of $58,348,467, up 53.1% from $38,117,504 for the same quarter of 1999. Net income decreased 51.5% to $1,180,067 for the second quarter of 2000, compared to $2,434,803 for the second quarter of 1999. Fully-diluted net income per share for the quarter ended June 30, 2000 was a profit of $.13 compared to a profit of $.26 for the same quarter in 1999.For the six months ended June 30, 2000, operating revenues increased 52.7% to $113,492,892, from $74,316,950 for the six months ended June 30, 1999. Net income decreased 83.5% to $785,682 for the six months ended June 30, 2000, compared to $4,758,920 for the six months ended June 30, 1999, representing a decrease of 84.3% in diluted net income per share to $.08 from $.51.
The following table summarizes USA Truck's earnings information:
Quarter Ended Six Months Ended
June 30, June 30,
------------------------- --------------------------
2000 1999 2000 1999
------------------------- --------------------------
Operating revenues $58,348,467 $38,117,504 $113,492,892 $74,316,950
Operating expenses
and costs:
Salaries, wages
and employee
benefits 23,140,800 16,254,412 45,652,134 31,910,890
Operations and
maintenance 17,426,194 8,915,103 35,135,102 17,258,532
Operating taxes
and licenses 1,017,650 681,313 2,193,526 1,384,619
Insurance and
claims 3,673,090 1,952,991 6,482,599 3,591,077
Communications
and utilities 688,986 458,725 1,400,978 868,616
Depreciation
and amortization 6,726,299 4,285,820 13,547,444 8,515,035
Other 2,198,614 1,282,513 4,804,213 2,365,113
------------ ----------- ----------- -----------
Total operating
expenses and
costs 54,871,633 33,830,877 109,215,996 65,893,882
------------ ----------- ----------- -----------
Operating income 3,476,834 4,286,627 4,276,896 8,423,068
Other expenses,
net 1,533,420 282,016 2,984,655 595,896
------------ ----------- ----------- -----------
Income before
income taxes 1,943,414 4,004,611 1,292,241 7,827,172
Income tax
expense 763,347 1,569,808 506,559 3,068,252
------------ ----------- ----------- -----------
Net income $ 1,180,067 $ 2,434,803 $ 785,682 $ 4,758,920
============ =========== =========== ===========
Earnings per
share (diluted) $ 0.13 $ 0.26 $ 0.08 $ 0.51
Average shares
outstanding
(diluted) 9,302,194 9,410,475 9,297,256 9,423,291
Key Operating Statistics:
Quarter Ended Six Months Ended
June 30, June 30,
------------------------- --------------------------
2000 1999 2000 1999
------------------------- --------------------------
Total miles
(Loaded & Empty) 49,347,960 34,102,039 96,798,426 66,841,114
Empty mile factor 8.96% 9.50% 8.98% 9.59%
Revenue per mile $ 1.182 $ 1.118 $ 1.173 $ 1.112
Average number
of tractors 1,742 1,105 1,736 1,104
Miles per tractor 28,328 30,853 55,776 60,535
Average miles
per tractor
per week 2,248 2,449 2,196 2,403
Miles per trip 885 915 887 918
Number of
shipments 50,785 33,745 99,293 65,829
Operating ratio 94.0% 88.8% 96.2% 88.7%
In comparing the financial results of the quarter ended June 30, 2000 to the quarter ended June 30, 1999, Robert M. Powell, President and CEO of the Company, said, "we continue to be pleased with our revenue growth, most of which came from revenue retained from the CCC Express acquisition and our ability to recover fuel cost increases through rate adjustments. The revenue per mile for this quarter of $1.18 is up 5.4% over the $1.12 recorded in the same quarter of 1999.
We have not been able to control the increase in driver turnover, which is now at record highs for USA Truck. This is illustrated by the decline in utilization from 2,449 to 2,248 miles per tractor per week, a decrease of 8.2%. A survey from departing drivers concludes that a significant quantity of good drivers are leaving us for other trucking companies with higher pay scales. On July 18, 2000, we announced to our drivers that we would increase our pay scale significantly effective October 1, 2000. The new pay scale will put USA Truck among the top major carriers in driver pay. We believe our new pay scale will help the company retain good drivers, increase the number of experienced drivers hired and reduce costs associated with recruiting, training and accidents, while increasing productivity. The increase in wages will negatively impact earnings initially but cost efficiencies, productivity improvement and rate adjustments should reduce the impact over the next few quarters. This driver pay enhancement reinforces USA Truck's commitment to provide the industry's top level of service with the best drivers in America."
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.