USA Truck, Inc. (NASDAQ: USAK) today announced base revenue of $107.1
million for the quarter ended December 31, 2012, an increase of 6.8%
from $100.3 million for the same quarter of 2011. We incurred a net loss
of $3.1 million, $0.30 per share, for the quarter ended December 31,
2012, compared to a net loss of $4.4 million, $0.42 per share, for the
same quarter of 2011.
Base revenue decreased 0.6% to $408.7 million for the twelve months
ended December 31, 2012, from $411.0 million for the same period of
2011. We incurred a net loss of $17.5 million, $1.70 per share, for the
twelve months ended December 31, 2012, compared to a net loss of $10.8
million, $1.05 per share, for the same period of 2011.
Asset-Based Trucking Operations
Cliff Beckham, President and CEO, offered the following comments: “The
improved operating fundamentals we experienced toward the end of the
third quarter continued into the fourth quarter, and the improvement is
reflected in our financial results as we narrowed our loss per share by
28.6% to $0.30 compared to a $0.42 loss a year ago. Sequentially, we
nearly cut in half the third quarter's $0.59 loss per share in a
historically seasonally weaker quarter for us.
“Improvement was most evident in our Trucking segment, where we produced
year-over-year revenue growth for the first time since the second
quarter of 2011. Base Trucking revenue grew 3.4% despite a 3.1%
reduction in the average fleet size. Base revenue per tractor per week
improved 6.7% to $2,720 on an improved freight mix and a substantially
larger manned tractor count.
“Our yield management activities during the third quarter, which
adversely impacted volumes during that quarter as we re-priced
underperforming freight, began to produce results during the fourth
quarter. We replaced volumes lost during the third quarter with
better-performing freight, as evidenced by the combination of a 2.2%
improvement in rate per loaded mile and a 6.7% increase in loaded
length-of-haul. Pricing typically falls at longer lengths-of-haul, so
the fact that we grew both simultaneously indicates improving lane flow
(directionality, density, and market selection). We upgraded our
customer base during the fourth quarter, including the replacement of
four of our top 25 Trucking shippers, while reducing concentration with
our largest shippers. We expect some of our new customers to grow into
our top 25 customer list in the first half of 2013.
“The improved freight mix and the better operational execution helped us
to increase miles per manned tractor per week by 1.3% to 1,931 miles.
The heightened empty mile factor (up 92 basis points to 12.0%) suggests
that we still need additional freight volume to better utilize our
equipment. We are executing a detailed strategy that we believe will
grow volumes in specific markets and lanes during this winter's freight
bidding season.
“Perhaps our largest accomplishment during the quarter involved cutting
our unmanned tractor count by more than 50%, to 92 from 213 sequentially
versus the third quarter of 2012. The manned tractor count growth was
made possible primarily by lower driver turnover, which improved
throughout the quarter to an annualized rate of 83% in December 2012,
comp red to 107% in December 2011. We attribute the improvement to
enhanced Company-wide focus on driver retention, better freight, and
more consistent miles. The combination of our manned tractor count and
greater miles per manned tractor led to a 5.5% improvement in overall
tractor utilization to 1,850 miles per in-service tractor per week.”
Non-Asset Based Operations
“Our SCS segment delivered strong performance again, growing base
revenue by 17.6% and operating income by 13.4%. Gross margin expanded by
30 basis points on slightly improved market conditions during the
quarter. SCS represented 21.2% of our total base revenue during the
quarter and continues to deliver profitable results with minimal capital
investment. Intermodal operations experienced better gross margins on
less revenue and were immaterial to our financial results.”
Balance Sheet and Liquidity
Mr. Beckham also addressed the Company’s capitalization: “We believe our
balance sheet and sources of liquidity are adequate to support our
operating needs for the foreseeable future. At December 31, 2012, our
outstanding debt, less cash, represented 55.1% of our balance sheet
capitalization, compared to 47.4% at December 31, 2011. At December 31,
2012, we were in compliance with our new, five-year $125.0 million
revolving credit facility and had approximately $19.9 million of
available borrowing capacity (net of the minimum availability we are
required to maintain of approximately $18.8 million). For the twelve
months ended December 31, 2012, we incurred net capital expenditures of
approximately $32.2 million. Our 2013 operating plan anticipates capital
expenditures, net of proceeds on sale of assets, of $47.3 million.”
The following table summarizes the results of operations information of
USA Truck, Inc. (“Company”) for the three- and twelve- month periods
indicated:
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USA TRUCK, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
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Three Months Ended
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Twelve Months Ended
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December 31,
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December 31,
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2012
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2011
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2012
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2011
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(UNAUDITED)
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Revenue:
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Trucking revenue
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$
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77,891
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$
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75,309
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$
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297,624
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$
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321,283
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Strategic Capacity Solutions revenue
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22,647
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19,257
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89,831
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67,085
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Intermodal revenue
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6,515
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5,691
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21,264
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22,658
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Base revenue
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107,053
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100,257
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408,719
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411,026
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Fuel surcharge revenue
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27,718
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25,945
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103,709
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108,382
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Total revenue
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134,771
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126,202
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512,428
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519,408
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Operating expenses and costs:
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Salaries, wages and employee benefits
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35,756
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34,309
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142,263
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136,538
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Fuel and fuel taxes
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34,382
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32,740
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131,162
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137,195
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Purchased transportation
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34,323
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31,002
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127,949
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120,076
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Depreciation and amortization
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11,487
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11,772
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45,058
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49,263
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Operations and maintenance
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11,088
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10,236
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43,559
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42,179
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Insurance and claims
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4,983
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5,356
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20,556
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22,501
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Operating taxes and licenses
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1,320
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1,343
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5,504
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5,460
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Communications and utilities
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1,077
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1,258
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4,124
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4,395
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Gain on disposal of assets, net
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(396
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)
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(711
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)
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(2,151
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)
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(3,615
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)
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Other
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4,447
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4,716
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17,590
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18,065
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Total operating expenses and costs
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138,467
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132,021
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535,614
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532,057
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Operating loss
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(3,696
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)
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(5,819
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)
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(23,186
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)
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(12,649
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Other expenses (income):
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Interest expense
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1,009
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904
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4,053
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3,345
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Other, net
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(35
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(41
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)
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(191
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)
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(252
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)
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Total other expenses, net
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974
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863
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3,862
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3,093
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Loss before income taxes
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(4,670
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)
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(6,682
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)
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(27,048
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)
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(15,742
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Income tax benefit
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(1,560
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)
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(2,328
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)
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(9,508
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)
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(4,965
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Net loss
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$
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(3,110
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)
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$
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(4,354
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)
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$
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(17,540
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)
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$
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(10,777
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)
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Per share information:
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Average shares outstanding (Basic)
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10,313
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10,297
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10,310
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10,302
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Basic loss per share
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$
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(0.30
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)
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$
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(0.42
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)
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$
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(1.70
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)
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$
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(1.05
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Average shares outstanding (Diluted)
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10,313
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10,297
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10,310
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10,302
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Diluted loss per share
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$
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(0.30
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)
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$
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(0.42
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)
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$
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(1.70
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)
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$
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(1.05
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The following table includes key operating results and statistics for
our three operating segments:
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Three Months Ended
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Twelve Months Ended
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December 31,
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December 31,
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2012
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2011
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2012
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2011
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(UNAUDITED)
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Trucking:
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Operating loss (in thousands) (1)
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$
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(5,371
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)
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$
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(7,113
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)
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$
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(29,762
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)
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$
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(18,762
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)
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Operating ratio (2)
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106.9
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%
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109.4
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%
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110.0
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%
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106.0
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%
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Total miles (in thousands) (3)
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52,968
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51,810
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205,776
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221,765
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Empty mile factor
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12.0
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%
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11.1
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%
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11.4
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%
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11.0
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%
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Weighted average number of tractors (4)
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2,179
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2,248
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2,184
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2,313
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Average miles per tractor per period
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24,308
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23,047
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94,220
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95,878
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Average miles per tractor per week
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1,850
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1,754
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1,802
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1,839
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Average miles per trip
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556
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521
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542
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532
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Base Trucking revenue per tractor per week
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$
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2,720
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$
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2,549
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$
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2,606
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$
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2,664
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Number of tractors at end of period (4)
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2,184
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2,235
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2,184
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2,235
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Strategic Capacity Solutions:
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Operating income (in thousands) (1)
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$
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1,799
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$
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1,587
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$
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7,788
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$
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7,100
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Gross margin (5)
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14.4
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%
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14.1
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%
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13.9
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%
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15.1
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%
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Intermodal:
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Operating loss (in thousands) (1)
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$
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(124
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)
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$
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(293
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)
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$
|
(1,212
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)
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$
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(987
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)
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Gross margin (5)
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15.1
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%
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14.3
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%
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17.8
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%
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11.5
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%
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(1)
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Operating (loss) income is calculated by deducting total operating
expenses from total revenues.
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(2)
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Operating ratio is calculated by dividing total operating expenses,
net of fuel surcharge, by base revenue.
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(3)
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Total miles include both loaded and empty miles.
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(4)
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Tractors include Company-operated tractors in service plus tractors
operated by independent contractors.
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(5)
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Gross margin is calculated by taking total revenue less purchased
transportation expense and dividing that amount by total revenue.
This calculation includes intercompany revenues and expenses.
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Financial information in this press release is preliminary and based
upon information available to the Company as of the date of this press
release. As such, this information remains subject to the completion of
normal quarter- and year-end closing and audit procedures which could
result in changes, some of which could be material, to the preliminary
information provided in this press release.
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended and
Section 21E of the Securities Exchange Act of 1934, as amended. These
statements generally may be identified by their use of terms or phrases
such as “expects,” “estimates,” “anticipates,” “projects,” “believes,”
“plans,” “goals,” “intends,” “may,” “will,” “should,” “could,”
“potential,” “continue,” “future” and terms or phrases of similar
substance. Forward-looking statements are based upon the current beliefs
and expectations of our management and are inherently subject to risks
and uncertainties, some of which cannot be predicted or quantified,
which could cause future events and actual results to differ materially
from those set forth in, contemplated by, or underlying the
forward-looking statements. Accordingly, actual results may differ from
those set forth in the forward-looking statements. Readers should review
and consider the factors that may affect future results and other
disclosures by the Company in its press releases, Annual Report on Form
10-K and other filings with the Securities and Exchange Commission. We
disclaim any obligation to update or revise any forward-looking
statements to reflect actual results or changes in the factors affecting
the forward-looking information. In light of these risks and
uncertainties, the forward- looking events and circumstances discussed
in this press release might not occur.
All forward-looking statements attributable to us, or persons acting on
our behalf, are expressly qualified in their entirety by this cautionary
statement.
References to the “Company,” “we,” “us,” “our” and words of similar
import refer to USA Truck, Inc. and its subsidiary.
USA Truck is a dry van truckload carrier transporting general
commodities via our General Freight and Dedicated Freight service
offerings. We transport commodities throughout the continental United
States and into and out of portions of Canada. We also transport general
commodities into and out of Mexico by allowing through-trailer service
from our terminal in Laredo, Texas. Our Strategic Capacity Solutions and
Intermodal operating segments provide customized transportation
solutions using our technology and multiple modes of transportation
including our assets and the assets of our partner carriers.
This press release and related information will be available to
interested parties at our web site, http://www.usa-truck.com
under the “News Releases” tab of the “Investors” menu.
