USA Truck, Inc. (NASDAQ: USAK) today announced significantly improved
year-over-year financial and operating results for the quarter ended
June 30, 2013.
Financial Results
Base revenue of $111.5 million for the quarter ended June 30, 2013,
increased 7.7% from $103.5 million for the same quarter of 2012. We
incurred a net loss of $1.0 million ($0.10 per share) for the quarter
ended June 30, 2013, compared to a net loss of $3.5 million ($0.34 per
share) for the same quarter of 2012.
Base revenue increased 7.5% to $216.3 million for the six months ended
June 30, 2013, from $201.3 million for the same period of 2012. We
incurred a net loss of $3.5 million ($0.34 per share) for the six months
ended June 30, 2013, compared to a net loss of $8.4 million ($0.81 per
share) for the same period of 2012.
Operating Environment
John Simone, President and CEO, offered the following comments:
“Operating margins improved by 390 basis points year over year on 7.7%
base revenue growth across our combined services, while operating costs
increased only 3.7% (net of fuel surcharge recoveries). We reduced our
net loss by 70.0%, marking our second consecutive quarter of material
year-over-year improvement in operating results. We believe our
turnaround plan gained traction during the June quarter, extending the
year-over-year improvements in base revenue, operating income and net
loss we achieved during the March quarter. While we are encouraged by
our progress, we are not satisfied and have not yet achieved our top
priorities of returning to profitability and restoring shareholder value.
Asset-Based Trucking Operations
“Our Trucking segment continued to lead the turnaround with a 500 basis
point year-over-year improvement in operating margin.
“Trucking base revenue increased 13.3% year over year on improved asset
productivity (miles per seated tractor per week) and more seated
tractors. The improved asset productivity was attributable to better
operational execution within a more efficient freight network. The
improved miles combined with several internal initiatives helped us
reduce driver turnover by 31.2 percentage points, which enabled us to
increase our seated tractor count year over year.
“While Trucking base revenue grew by 13.3%, Trucking operating costs
increased only by 8.2% (net of fuel surcharge recoveries). Fixed costs
and fuel costs were materially lower year over year due to the execution
of several internal initiatives. Despite those cost improvements, we
believe substantial opportunity remains to realize more earnings
leverage in our Trucking model in the areas of asset productivity,
equipment maintenance, insurance and claims, fuel economy and driver
retention. Internal efforts to improve those costs are at various stages
of implementation, and we are taking measures that we anticipate will
accelerate the pace of progress.
Non-Asset Based Operations
“Despite 5.2% less base revenue, our SCS segment produced 37.2% growth
in operating income increasing to $2.7 million in the second quarter of
2013 from $2.0 million in the second quarter of 2012. SCS has
experienced higher operating margins by reducing fixed costs and more
effectively leveraging the leaner operating structure. Gross margin
improved slightly to 15.5% from 15.4% in the same quarter a year ago.
Balance Sheet and Liquidity
“We believe our balance sheet and sources of liquidity remain adequate
to support our operating needs for the foreseeable future. At June 30,
2013, our outstanding debt, less cash, represented 57.6% of our total
capitalization, compared to 55.1% at December 31, 2012. At June 30,
2013, we had approximately $23.0 million of available borrowing
capacity, up from $15.2 million at March 31, 2013 (in each case, net of
the minimum availability we are required to maintain of approximately
$18.8 million). For the six months ended June 30, 2013, we incurred net
capital expenditures of approximately $24.1 million. Our 2013 operating
plan anticipates capital expenditures, net of proceeds on sale of
assets, of approximately $23.5 million for the remainder of the year.
Conclusion
“Most of the metrics reported in this release have not only shown
year-over-year improvement, but also that the year- over-year
improvement during the June quarter expanded upon the improvement in the
March quarter on both dollar and percentage bases. We continue to
execute our turnaround efforts with growing momentum. While we are
encouraged by our progress, we are not satisfied with where we are. We
believe there is ample room for better asset productivity and lower
operating costs, and we have detailed initiatives in place to realize
those improvements. We are accelerating the rate of change as quickly as
possible, balancing the pace with the growing capabilities of the
Company. We look forward to sharing our progress in future
communications.”
A conference call to discuss second quarter earnings will be held on
Thursday, July 25, 2013, at 10:00 a.m., central time. Individuals
desiring to listen to the call may dial in at 1-800-351-6807 (U.S. /
Canada) and 1-334-323-7224 (International), access code 541247. The
slide presentation that will accompany the call may be accessed using
the following link: https://www.yourcall.com/webecho/GuestLogin.aspx?ConfRef=78215399&Pin=1533
For a period of time following the call, individuals will be able to
access the presentation materials and listen to the audio recording of
the call at our website, www.usa-truck.com,
under the “Presentations” tab of the “Investors” menu.
The following table summarizes the results of operations information of
USA Truck, Inc. (“Company”) for the three- and six-month periods
indicated:
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USA TRUCK, INC.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(UNAUDITED)
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(in thousands, except per share data)
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Three Months Ended
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Six Months Ended
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|
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June 30,
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June 30,
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|
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2013
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|
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2012
|
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2013
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2012
|
|
Revenue:
|
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|
|
|
|
|
|
|
|
|
|
|
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Trucking revenue
|
|
|
$
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81,434
|
|
|
|
$
|
71,846
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|
|
|
$
|
161,227
|
|
|
|
$
|
147,782
|
|
|
Strategic Capacity Solutions revenue
|
|
|
|
30,028
|
|
|
|
|
31,674
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|
|
|
|
55,123
|
|
|
|
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53,560
|
|
|
Base revenue
|
|
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111,462
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|
|
|
|
103,520
|
|
|
|
|
216,350
|
|
|
|
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201,342
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|
|
Fuel surcharge revenue
|
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28,276
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|
|
|
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26,049
|
|
|
|
|
55,416
|
|
|
|
|
51,900
|
|
|
Total revenue
|
|
|
|
139,738
|
|
|
|
|
129,569
|
|
|
|
|
271,766
|
|
|
|
|
253,242
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|
|
|
|
|
|
|
|
|
|
|
|
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|
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Operating expenses and costs:
|
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|
|
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Purchased transportation
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35,156
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|
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35,275
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|
|
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65,634
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|
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|
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62,253
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Salaries, wages and employee benefits
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34,663
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|
|
|
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34,717
|
|
|
|
|
70,230
|
|
|
|
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70,230
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Fuel and fuel taxes
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33,017
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|
|
|
|
30,567
|
|
|
|
|
68,613
|
|
|
|
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65,336
|
|
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Depreciation and amortization
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|
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10,852
|
|
|
|
|
11,178
|
|
|
|
|
21,767
|
|
|
|
|
22,335
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|
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Operations and maintenance
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|
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13,649
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|
|
|
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10,579
|
|
|
|
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25,157
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|
|
|
|
21,510
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|
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Insurance and claims
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7,024
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|
|
|
|
5,381
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|
|
|
|
12,413
|
|
|
|
|
10,264
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Operating taxes and licenses
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1,696
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|
|
|
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1,389
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|
|
|
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2,704
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|
|
|
|
2,896
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|
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Communications and utilities
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|
984
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|
|
|
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1,057
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|
|
|
|
2,069
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|
|
|
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2,079
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Gain on disposal of assets, net
|
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|
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(429
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)
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(724
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)
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|
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(819
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)
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|
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(1,266
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)
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Other
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3,497
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|
|
|
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4,479
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|
|
|
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7,195
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|
|
|
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8,570
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|
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Total operating expenses and costs
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|
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140,109
|
|
|
|
|
133,898
|
|
|
|
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274,963
|
|
|
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264,207
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|
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Operating loss
|
|
|
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(371
|
)
|
|
|
|
(4,329
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)
|
|
|
|
(3,197
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)
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|
|
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(10,965
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)
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|
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|
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Other expenses (income):
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|
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|
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Interest expense
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|
|
947
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|
|
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|
1,023
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|
|
|
|
1,784
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|
|
|
|
2,009
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Other, net
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|
|
(46
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)
|
|
|
|
(48
|
)
|
|
|
|
(99
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)
|
|
|
|
(123
|
)
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Total other expenses, net
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|
901
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|
|
|
|
975
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|
|
|
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1,685
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|
|
|
|
1,886
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Loss before income taxes
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|
|
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(1,272
|
)
|
|
|
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(5,304
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)
|
|
|
|
(4,882
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)
|
|
|
|
(12,851
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)
|
|
Income tax benefit
|
|
|
|
(228
|
)
|
|
|
|
(1,818
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)
|
|
|
|
(1,364
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)
|
|
|
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(4,492
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)
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Net loss
|
|
|
$
|
(1,044
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)
|
|
|
$
|
(3,486
|
)
|
|
|
$
|
(3,518
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)
|
|
|
$
|
(8,359
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)
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|
|
|
|
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Net loss per share information:
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|
|
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|
|
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|
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Average shares outstanding (Basic)
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10,293
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|
|
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|
10,304
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|
|
|
|
10,299
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|
|
|
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10,302
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Basic loss per share
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|
$
|
(0.10
|
)
|
|
|
$
|
(0.34
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)
|
|
|
$
|
(0.34
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)
|
|
|
$
|
(0.81
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Average shares outstanding (Diluted)
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10,293
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|
|
|
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10,304
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|
|
|
|
10,299
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|
|
|
|
10,302
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|
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Diluted loss per share
|
|
|
$
|
(0.10
|
)
|
|
|
$
|
(0.34
|
)
|
|
|
$
|
(0.34
|
)
|
|
|
$
|
(0.81
|
)
|
|
|
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|
|
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The following table includes key operating results and statistics:
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|
|
|
|
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Three Months Ended
|
|
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Six Months Ended
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
|
|
(unaudited)
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Trucking:
|
|
|
|
|
|
|
|
|
|
|
|
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|
Operating loss (in thousands) (1)
|
|
|
$
|
(3,108
|
)
|
|
|
$
|
(6,324
|
)
|
|
|
$
|
(7,086
|
)
|
|
|
$
|
(14,275
|
)
|
|
Operating ratio (2)
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|
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|
103.8
|
%
|
|
|
|
108.8
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%
|
|
|
|
104.4
|
%
|
|
|
|
109.7
|
%
|
|
Total miles (in thousands) (3)
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56,715
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49,594
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|
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|
111,333
|
|
|
|
|
102,953
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|
|
Empty mile factor
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11.8
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%
|
|
|
|
10.9
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%
|
|
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11.4
|
%
|
|
|
|
11.4
|
%
|
|
Base revenue per loaded mile
|
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$
|
1.629
|
|
|
|
$
|
1.627
|
|
|
|
$
|
1.635
|
|
|
|
$
|
1.620
|
|
|
Average number of in-service tractors (4)
|
|
|
|
2,241
|
|
|
|
|
2,171
|
|
|
|
|
2,223
|
|
|
|
|
2,201
|
|
|
Percentage of in-service tractors unseated
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|
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5.6
|
%
|
|
|
|
11.6
|
%
|
|
|
|
4.9
|
%
|
|
|
|
8.7
|
%
|
|
Average number of seated tractors (5)
|
|
|
|
2,116
|
|
|
|
|
1,919
|
|
|
|
|
2,115
|
|
|
|
|
2,009
|
|
|
Average miles per seated tractor per week
|
|
|
|
2,062
|
|
|
|
|
1,988
|
|
|
|
|
2,036
|
|
|
|
|
1,971
|
|
|
Base Trucking revenue per seated tractor per week
|
|
|
$
|
2,961
|
|
|
|
$
|
2,880
|
|
|
|
$
|
2,948
|
|
|
|
$
|
2,829
|
|
|
Average loaded miles per trip
|
|
|
|
597
|
|
|
|
|
527
|
|
|
|
|
593
|
|
|
|
|
527
|
|
|
Strategic Capacity Solutions (6):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (in thousands) (1)
|
|
|
$
|
2,737
|
|
|
|
$
|
1,995
|
|
|
|
$
|
3,888
|
|
|
|
$
|
3,310
|
|
|
Gross margin (7)
|
|
|
|
15.5
|
%
|
|
|
|
15.4
|
%
|
|
|
|
15.3
|
%
|
|
|
|
16.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Operating loss is calculated by deducting total operating expenses
from total revenues.
|
|
(2)
|
Operating ratio is calculated by dividing total operating expenses,
net of fuel surcharge, by base revenue.
|
|
(3)
|
Total miles include both loaded and empty miles.
|
|
(4)
|
Tractors include Company-operated tractors in service, plus tractors
operated by independent contractors.
|
|
(5)
|
Seated tractors are those occupied by drivers.
|
|
(6)
|
Includes Intermodal results.
|
|
(7)
|
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-end closing and interim review 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 transportation and logistics provider headquartered in
Van Buren, Arkansas, with terminals, offices and staging facilities
located throughout the United States. We transport commodities
throughout the continental U.S. 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 service offerings provide
customized transportation solutions using the latest technological tools
available and multiple modes of transportation.
This press release and related information will be available to
interested parties at our web site, www.usa-truck.com,
under the “News Releases” tab of the “Investors” menu.
