USA Truck, Inc. Announces Operating Revenues for the Quarter Ended September 30, 2000
18 October 2000
USA Truck, Inc. Announces Operating Revenues for the Quarter Ended September 30, 2000
VAN BUREN, Ark.--Oct. 18, 2000--USA Truck, Inc. (NASDAQ NMS: USAK) today announced operating revenues for the quarter ended September 30, 2000 of $55,532,933, up 37.4% from $40,416,850 for the same quarter of 1999. Net income decreased 69.7% to $512,357 for the third quarter of 2000, compared to $1,688,989 for the third quarter of 1999. Fully-diluted net income per share for the quarter ended September 30, 2000 was a profit of $.06 compared to a profit of $.18 for the same quarter in 1999.For the nine months ended September 30, 2000, operating revenues increased 47.3% to $169,025,826, from $114,733,801 for the nine months ended September 30, 1999. Net income decreased 79.9% to $1,298,039 for the nine months ended September 30, 2000, compared to $6,447,909 for the nine months ended September 30, 1999, representing a decrease of 79.7% in diluted net income per share to $.14 from $.69.
The following table summarizes USA Truck's earnings information:
Quarter Ended Nine Months Ended
September 30, September 30,
----------------------- -------------------------
2000 1999 2000 1999
----------- ----------- ------------ ------------
Operating revenues $55,532,933 $40,416,850 $169,025,826 $114,733,801
Operating expenses
and costs:
Salaries, wages and
employee benefits 22,481,959 17,226,077 68,134,094 49,136,967
Operations and
maintenance 17,600,858 10,568,323 52,735,960 27,826,856
Operating taxes
and licenses 1,003,875 664,956 3,197,401 2,049,575
Insurance and claims 2,986,921 2,111,627 9,469,520 5,702,704
Communications
and utilities 722,640 543,748 2,123,618 1,412,364
Depreciation and
amortization 6,452,810 4,359,715 20,000,254 12,874,750
Other 2,185,590 1,855,864 6,989,803 4,220,977
----------- ----------- ------------ ------------
Total operating
expenses and costs 53,434,653 37,330,310 162,650,650 103,224,193
----------- ----------- ------------ ------------
Operating income 2,098,280 3,086,540 6,375,176 11,509,608
Other expenses, net 1,255,588 308,597 4,240,243 904,493
----------- ----------- ------------ ------------
Income before
income taxes 842,692 2,777,943 2,134,933 10,605,115
Income tax expense 330,335 1,088,954 836,894 4,157,206
----------- ----------- ------------ ------------
Net income $ 512,357 $ 1,688,989 $ 1,298,039 $ 6,447,909
=========== =========== ============ ============
Earnings per
share (diluted) $0.06 $0.18 $0.14 $0.69
Average shares
outstanding (diluted) 9,264,116 9,335,972 9,305,409 9,408,583
Key Operating Statistics:
Quarter Ended Nine Months Ended
September 30, September 30,
------------------------ -------------------------
2000 1999 2000 1999
------------ ----------- ------------ ------------
Total miles
(Loaded & Empty) 46,373,200 36,028,847 143,171,626 102,869,961
Empty mile factor 9.23% 9.32% 9.06% 9.50%
Revenue per mile $1.198 $1.122 $1.181 $1.115
Average number
of tractors 1,738 1,134 1,736 1,114
Miles per tractor 26,682 31,771 82,472 92,343
Average miles per
tractor per week 2,118 2,482 2,170 2,430
Miles per trip 845 905 873 913
Number of shipments 49,786 36,114 149,079 101,943
Operating ratio 96.2% 92.4% 96.2% 90.0%
In comparing the financial results of the quarter ended September 30, 2000 to the quarter ended September 30, 1999, Robert M. Powell, President and CEO of the Company, said, "Unmanned revenue tractors have curtailed revenue growth and profitability during 2000, reducing the miles per tractor per week 14.7% to 2,118 in the third quarter of 2000 compared to 2,482 in the same quarter last year. However, utilization on manned tractors is very strong at 2,464 miles per tractor per week in the third quarter of this year, up 0.3% from 2,456 in the same period of 1999.
On October 1, 2000, USA Truck implemented a driver pay increase, providing its drivers with one of the most competitive pay packages in the industry. This package is designed to dramatically improve driver recruiting and retention efforts as well as improve the experience level of our driving force, which, in turn, should have a positive impact on customer service, utilization, accident claims and ultimately earnings.
Management has set very specific goals to be met with the implementation of the package. During the August and September 2000 ramp-up period, driver retention and driver recruiting goals were exceeded. Driver utilization goals fell just one mile per driver per day short of the goal. We are not quite on pace to meet our empty tractor goal of zero by January 31, 2001, but positive progress has been made each month. We expect our performance in meeting these goals to get a significant boost after the October 1 effective date. With this new pay package, USA Truck is positioning itself to be very competitive in the driver recruiting and retention arenas for the next several years. Meeting the goals discussed above should return USA Truck toward the profitability that its management expects and its stockholders demand."
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.