USA Truck, Inc. Announces Record Revenue and Net Income.VAN BUREN  is a municipality and a city in the eastern Netherlands and is strongly linked to the Dutch royal family. , Ark. -- USA Truck, Inc. (NASDAQ NASDAQin full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : USAK Usak may refer to:
An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of decreased 15.6% from $0.45 for the quarter ended June 30, 2005 to $0.38 for the same quarter of 2006. Base revenue increased 6.8% from $184.0 million for the six months ended June 30, 2005 to $196.4 million for the same period of 2006. Net income increased 10.4% from $7.1 million for the six months ended June 30, 2005 to $7.8 million for the same period of 2006. Diluted earnings per share decreased 9.5% from $0.74 for the six months ended June 30, 2005 to $0.67 for the same period of 2006. In comparing the financial results of the three months ended June 30, 2006 to the three months ended June 30, 2005, Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. M. Powell Powell See Osceola. , Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the Company, made the following statements:
Although freight demand for the full quarter was not as robust as
a year ago, freight volumes steadily improved throughout the
quarter from a very soft environment in April to a strong one in
June. As freight demand improved, so did our financial
performance. Our operating ratio was 94.6% in April, 90.3% in May
and 87.8% in June. We believe that June's operating ratio, in
which we achieved our 88% operating ratio goal despite lower
year-over-year tractor utilization, is evidence of our improving
cost structure.
Our empty mile factor climbed 1.2 percentage points and our
tractor utilization (miles per tractor per week) was down 3.2% due
to softer freight demand as compared to last year, a greater
number of unmanned tractors and the effects of tightened U.S.
Department of Transportation Hours-of-Service rules that further
limit our drivers' productivity. We are working to close the gap
on both empty miles and tractor utilization and we are encouraged
by the improving demand for freight we experienced as the quarter
progressed.
We were able to raise prices for our services by 3.6% per mile
during the quarter which strengthens our belief that there
continues to be more freight demand, albeit softer than that of a
year ago, in the truckload market than available tractor capacity
to move that freight. That imbalance is characterized by a growing
shortage of qualified drivers over the past several years. We are
one of only a few publicly held truckload carriers that have added
significant tractor capacity to our fleet in recent years. During
the quarter, we expanded the average number of tractors in our
fleet by 7.6% to 2,514. While we have been successful at growing
the fleet, it has become increasingly expensive to recruit, retain
and compensate the high-quality drivers that we require to man
those tractors. Consequently, our costs in those areas increased
by 1.5 percentage points of base revenue during the quarter. We
closely monitor driver availability, freight demand and driver
quality and adjust our short-term fleet expansion plans
accordingly.
We are pleased to report that we posted our safest quarter this
decade. Our frequency of serious accidents (0.48 per million miles
traveled) was our best since the 1990's and was among the best in
our Company's history. We believe that our safety performance
compares favorably to the safest fleets among our peers in the
industry. That performance translated into a 0.70 percentage
points of base revenue improvement in insurance and claims
expenses. We will continue in our efforts to improve our insurance
and claims expense (it remains 1.8 percentage points above our
goal of 4.5% of base revenue), but we are pleased with our
progress.
We are also pleased with the progress we have made in the
profitability of our various operating divisions.
-- Overall, base revenue from the three divisions that
comprise our Trucking operations grew by 6.3%, led by
Regional Freight, which recorded a 57.5% increase to $7.6
million, followed by General Freight with a 7.6% increase
to $79.6 million. We downsized Dedicated Freight during
the winter to shed a few accounts that were not meeting
our profit expectations. However, we expect all three
Trucking divisions to post sequential growth going
forward, with Regional Freight outpacing all other
divisions in growth rate. Regional Freight is attractive
to us because of the considerable size of the market and
the lifestyle advantages that it affords our drivers, such
as less time away from home.
-- Base revenue from the two divisions that comprise our USA
Logistics operations grew 11.0% to $4.8 million for the
quarter. Freight Brokerage base revenue grew robustly to
$2.2 million, a 17.4% increase. We intend to continue our
efforts to aggressively grow Freight Brokerage as its
complementary nature fits our customer service mission.
Third Party Logistics base revenue grew 6.0% to $2.6
million. We have been strategically redeploying our
resources this year toward less complex third party
logistics services in which we can provide a level of
on-time, quality service commensurate with our Trucking
operations. We expect Third Party Logistics base revenue
to decline in the coming quarters as we implement our
strategy. Long-term, we still envision Third Party
Logistics as a growth opportunity for us, but in the
near-term we will devote more attention to Trucking and
Freight Brokerage.
We are confident in our cost structure, which is among the best in
the industry, and we believe that there are only two barriers
currently preventing us from consistently reaching our 88.0%
operating ratio goal: tractor utilization and insurance and claims
expense. However, we are also confident that the initiatives and
programs that we have in place to improve those two areas will
bear fruit over time. In the meantime, we will continue to closely
monitor driver availability and economic factors impacting freight
demand.
The following tables summarize the earnings information of USA Truck,
Inc. ("Company"):
(in thousands, except percentage data (1) and per share amounts)
Three months ended June 30,
-----------------------------------
2006 2005
----------------- -----------------
Revenue:
Trucking revenue (2) $ 94,837 $ 89,248
USA Logistics revenue (3) 4,758 4,288
--------- ---------
Base revenue 99,595 100.0% 93,536 100.0%
Fuel surcharge revenue (4) 22,346 13,876
--------- ---------
Total revenue 121,941 107,412
Operating expenses and costs:
Salaries, wages and employee
benefits 38,305 38.5 35,210 37.6
Fuel and fuel taxes (4) 37,043 14.8 28,123 15.2
Depreciation and amortization 11,597 11.6 10,299 11.0
Insurance and claims 6,251 6.3 6,543 7.0
Purchased transportation 6,132 6.2 6,069 6.5
Operations and maintenance 5,492 5.5 4,974 5.3
Operating taxes and licenses 1,677 1.7 1,562 1.7
Communications and utilities 832 0.8 788 0.8
Gain on disposal of property and
equipment, net (313) (0.3) (319) (0.3)
Other 5,729 5.7 4,746 5.1
--------- ------- --------- -------
Total operating expenses 112,745 90.8 97,995 89.9
--------- ------- --------- -------
Operating income 9,196 9.2 9,417 10.1
Other expenses (income):
Interest expense 1,099 1.1 1,426 1.6
Other, net (1) -- 7 --
--------- ------- --------- -------
Total other expenses, net 1,098 1.1 1,433 1.6
--------- ------- --------- -------
Income before income taxes 8,098 8.1 7,984 8.5
Income tax expense 3,739 3.7 3,649 3.9
--------- ------- --------- -------
Net income $ 4,359 4.4% $ 4,335 4.6%
========= ======= ========= =======
Per share information:
Average shares outstanding
(Basic) 11,382 9,280
========= =========
Basic earnings per share $ 0.38 $ 0.47
========= =========
Average shares outstanding
(Diluted) 11,583 9,563
========= =========
Diluted earnings per share $ 0.38 $ 0.45
========= =========
Key Operating Statistics:
Three Months Ended June 30,
-----------------------------
2006 2005
-------------- --------------
Total miles (in thousands) (5) 73,448 71,638
Empty mile factor (6) 9.9% 8.7%
Trucking revenue per mile $ 1.291 $ 1.246
Average number of tractors (7) 2,514 2,337
Average miles per tractor 29,215 30,654
Average miles per tractor per week 2,319 2,395
Average miles per trip (8) 845 824
Average unmanned tractor percentage (9) 4.0% 3.6%
(in thousands, except percentage data (1) and per share amounts)
Six Months Ended June 30,
-----------------------------------
2006 2005
----------------- -----------------
Revenue:
Trucking revenue (2) $186,224 175,205
USA Logistics revenue (3) 10,187 8,772
--------- ---------
Base revenue 196,411 100.0% 183,977 100.0%
Fuel surcharge revenue 39,738 24,478
--------- ---------
Total revenue 236,149 208,455
Operating expenses and costs:
Salaries, wages and employee
benefits 75,988 38.7 69,636 37.9
Fuel and fuel taxes (4) 69,303 15.1 53,843 16.0
Depreciation and amortization 22,813 11.6 20,212 11.0
Insurance and claims 12,619 6.4 12,373 6.7
Purchased transportation 12,788 6.5 12,538 6.8
Operations and maintenance 10,807 5.5 10,474 5.7
Operating taxes and licenses 3,312 1.7 3,051 1.7
Communications and utilities 1,666 0.8 1,542 0.8
Gain on disposal of property and
equipment, net (426) (0.2) (681) (0.4)
Other 10,863 5.5 9,461 5.1
--------- ------- --------- -------
Total operating expenses 219,733 91.6 192,449 91.3
--------- ------- --------- -------
Operating income 16,416 8.4 16,006 8.7
Other expenses (income):
Interest expense 2,028 1.0 2,727 1.5
Other, net (62) -- (2) --
--------- ------- --------- -------
Total other expenses, net 1,966 1.0 2,725 1.5
--------- ------- --------- -------
Income before income taxes 14,450 7.4 13,281 7.2
Income tax expense 6,643 3.4 6,212 3.4
--------- ------- --------- -------
Net income $ 7,807 4.0% $ 7,069 3.8%
========= ======= ========= =======
Per share information:
Average shares outstanding
(Basic) 11,365 9,267
========= =========
Basic earnings per share $ 0.69 $ 0.76
========= =========
Average shares outstanding
(Diluted) 11,609 9,552
========= =========
Diluted earnings per share $ 0.67 $ 0.74
========= =========
Key Operating Statistics:
Six Months Ended June 30,
-----------------------------
2006 2005
-------------- --------------
Total miles (in thousands) (5) 144,666 141,049
Empty mile factor (6) 9.8% 8.7%
Trucking revenue per mile $ 1.287 $ 1.242
Average number of tractors (7) 2,479 2,293
Average miles per tractor 58,357 61,513
Average miles per tractor per week 2,298 2,441
Average miles per trip (8) 848 831
Average unmanned tractor percentage (9) 4.2% 3.3%
(1) Percentages are presented in relationship to base revenue.
(2) Trucking revenue includes base revenue generated from services
using Company-owned or owner-operator tractors. Specifically, it
includes base revenue from our General Freight, Regional Freight
and Dedicated Freight divisions.
(3) USA Logistics revenue includes base revenue generated from
non-asset based services. Specifically, it includes base revenue
from our Freight Brokerage and Third Party Logistics divisions.
(4) Fuel and fuel taxes as a percentage of base revenue is calculated
by subtracting fuel surcharge revenue from fuel and fuel taxes
expense and dividing that amount by base revenue.
(5) Total miles include both loaded and empty miles.
(6) The empty mile factor is the number of miles traveled for which we
are not typically compensated by any customer as a percentage of
total miles traveled.
(7) Average number of tractors includes Company-operated tractors plus
owner-operator tractors.
(8) Average miles per trip is based upon loaded miles divided by the
number of Trucking shipments.
(9) Average unmanned tractor percentage is the weighted average
percentage of Company-operated tractors to which a driver is not
assigned.
Selected Balance Sheet Data:
(in thousands, except
percentage data)
June 30, December 31,
2006 2005
-------------- --------------
Total assets $ 332,227 $ 308,079
Total equity 158,466 149,833
Total debt, including current maturities 95,798 89,232
Debt to Capitalization Ratio 37.7% 37.3%
This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and information that are based on our current beliefs and expectations and assumptions we have made based upon information currently available. Forward-looking statements include statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc our plans, strategies, objectives, expectations, intentions and adequacy of resources, and may be identified by words such as "could," "should," "may," "believe," "expect," "intend," "plan," "schedule," "estimate," "project" and similar expressions. These statements are based on current expectations and are subject to uncertainty and change. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot assure you that such expectations will be realized. If one or more of the risks or uncertainties underlying such expectations materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. , or if underlying assumptions prove incorrect Incorrect means to not be correct and may also refer to:
Benchmarking (also "best practice benchmarking" or "process benchmarking") is a process used in management and particularly strategic program in controlling expenses. Among the key factors that are not within our control and that have a direct bearing on operating results are increases in fuel prices, adverse weather conditions, increased regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. burdens and the impact of increased rate competition. Our results have also been, and will continue to be, significantly affected by fluctuations in general economic conditions, as our tractor tractor, in agriculture, vehicle used to pull such equipment as plows, cultivators, and mowers; to power stationary devices such as saws and winches; and to push snowplows and earth-moving implements. utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be is directly related to business levels of customers in a variety of industries. In addition, shortages of qualified drivers and intense or increased competition for drivers have adversely impacted our operating results and our ability to grow and will continue to do so. Results for any specific period could also be affected by various unforeseen events, such as unusual levels of equipment failure or vehicle accident claims. Additional risks associated with our operations are discussed in our SEC filings, including our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2005, and our subsequent quarterly reports on Form 10-Q Form 10-Q See 10-Q. . All forward-looking statements attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to us, or persons acting on our behalf, are expressly qualified in their entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. by this cautionary statement. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. In light of these risks and uncertainties, the forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. events and circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or discussed in this press release might not occur. References to the "Company," "we," "us," "our" and words of similar import refer to USA Truck, Inc. and its subsidiary. USA Truck is a medium haul, dry van truckload carrier Merrian-Webster online dictionary defines truckload as " a load or amount that fills or could fill a truck". A truckload carrier is a trucking company that generally contracts an entire trailer-load to a single customer. transporting general commodities throughout the continental United States United States territory, including the adjacent territorial waters, located within North America between Canada and Mexico. Also called CONUS. and into and out of portions of Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . We transport general commodities into Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. by allowing through-trailer service on our trailers through our facility in the gateway city of Laredo Laredo (lərā`dō), city (1990 pop. 122,899), seat of Webb co., S Tex., on the Rio Grande; founded 1755, inc. 1852. It is a port of entry on the U.S.-Mexican border, with a thriving export-import trade and a tourist industry. , Texas. We also provide Third Party Logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. and Freight The price or compensation paid for the transportation of goods by a carrier. Freight is also applied to the goods transported by such carriers. The liability of a carrier for freight damaged, lost, or destroyed during shipment is determined by contract, statute, or Brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. services for a diverse customer base. This press release and related information will be available to interested parties at our web site, http://www.usa-truck.com under the "Financial Data" tab of the "Investor Relations Investor relations The process by which the corporation communicates with its investors. " page. |
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