USAK Usa Truck Inc

• 3Q 2020 earnings per diluted share of $0.26 versus 3Q 2019 loss per diluted share of $0.16
• 3Q 2020 adjusted earnings per diluted share(a) of $0.29 versus 3Q 2019 adjusted loss per diluted share(a) $0.13
• 3Q 2020 consolidated operating revenue increased 8.3% to $141.8 million from $130.9 million in 3Q 2019

USA Truck Inc. (NASDAQ: USAK), a leading capacity solutions provider, today announced its financial results for the three and nine months ended September 30, 2020.

For the quarter ended September 30, 2020, consolidated operating revenue was $141.8 million compared to $130.9 million for the prior-year period. Base revenue(a), which excludes fuel surcharge revenue, was $131.5 million compared to $114.9 million for the 2019 period. The Company reported net income of $2.3 million, or $0.26 per diluted share for the third quarter 2020 and adjusted net income(a) of $2.6 million, or $0.29 per diluted share, compared to a net loss of $1.4 million, or $0.16 per diluted share and adjusted net loss(a) of $1.1 million, or $0.13 per diluted share for the same quarter in 2019. The Company’s third quarter 2020 consolidated operating ratio was 96.9%, compared to 100.0% in the comparable 2019 quarter.

President and CEO James Reed commented, “The third quarter of 2020 was the tale of two freight markets. The first half of the quarter was similar to the second quarter of 2020, with unpredictable week to week swings in freight, pricing and seasonally softer demand. The market turned toward the middle of August as capacity constraints emerged and demand strengthened. The tightening capacity was driven by many factors including the implementation of the new Drug and Alcohol Clearinghouse screening requirements, driver school shut downs in the face of COVID-19 concerns, general COVID-19 cautiousness among drivers, and expanded unemployment insurance and federal and state relief programs.

Despite the difficult driver market, during the quarter we were able to improve our Trucking segment operating ratio and adjusted operating ratio(a) by 380 basis points and 410 basis points year over year and 220 basis points and 200 basis points sequentially to 96.5% and 95.8%, respectively. We were able to drive the improved results through a disciplined approach to our network, targeted repricing efforts with customers, moderating truck counts by reducing our average available tractor count by 94 tractors sequentially, and by executing our previously discussed self-help initiatives through our migration to a more regionalized business model.

USAT Logistics capitalized on the increasing market rates and executed through increased volume during the quarter, which generated the two highest revenue months in the history of this operating segment during this quarter. This powerful combination of volume and rate helped grow the overall gross margin, return to operating profitability and improve the segment operating ratio and adjusted operating ratio(a) by 130 basis points year over year and 250 basis points sequentially to 98.1% and 98.0%, respectively. We expect the combination of tighter supply and traction gained on self-help initiatives will set us up well for the fourth quarter of 2020 and beyond.

Trucking: For the third quarter of 2020, Trucking operating revenue (before intersegment eliminations) increased $3.8 million, or 4.1%, to $97.4 million, compared to the third quarter of 2019. Trucking operating income of $3.5 million for the 2020 period, reflected an operating ratio of 96.5%, compared to an operating loss of $0.3 million and an operating ratio of 100.3% for the third quarter of 2019. This represents an increase of $3.7 million year over year in operating income and a 380 basis point improvement in operating ratio. Trucking adjusted operating income(a) was $3.8 million for the 2020 period, reflecting an adjusted operating ratio(a) of 95.8%, compared to adjusted operating income(a) of $0.1 million and an adjusted operating ratio(a) of 99.9% for the comparable 2019 period. This represents an increase of $3.7 million year over year in adjusted operating income(a) and a 410 basis point improvement in adjusted operating ratio(a).

Trucking operations delivered the following results during the third quarter:

• Base revenue per available tractor per week increased $318, or 10.1%, compared to the third quarter of 2019, and $457, or 15.2% sequentially, primarily due to an increase in base revenue per loaded mile and a decrease in tractor count.
• Base revenue per loaded mile increased $0.191, or 9.1% year over year and $0.271, or 13.4%, sequentially. This change was the result of increased demand and tightening supply resulting in higher rate realizations.
• Loaded miles per available tractor per week increased 14 miles, or 0.9%, compared to the third quarter of 2019, and by 23 miles, or 1.5% sequentially.
• Deadhead percentage for third quarter 2020 improved 110 basis points year over year and 70 basis points sequentially.
• The average seated tractor count for the third quarter of 2020 was 1,827, which represented a decrease of 1.9% over the third quarter 2019 average of 1,862, and a 6.0% decrease over the sequential average of 1,943. Average unseated tractor percentage for third quarter 2020 was 7.2%, an unfavorable change from 6.5% for the third quarter of 2019 and 5.8% sequentially.

USAT Logistics: Operating revenue (before intersegment eliminations) was $52.1 million for the third quarter of 2020, an increase of $12.7 million, or 32.2% year over year. Both operating income and adjusted operating income(a) were $1.0 million for the third quarter of 2020, reflecting an operating ratio of 98.1% and an adjusted operating ratio(a) of 98.0%, compared to operating income and adjusted operating income(a) of $0.2 million and an operating ratio of 99.4% and an adjusted operating ratio(a) of 99.3% for the comparable 2019 period. This change represented an increase of $0.7 million year over year in operating income and adjusted operating income(a) and an improvement of 130 basis points in both operating ratio and adjusted operating ratio(a) compared to the third quarter of 2019.

USAT Logistics operations delivered the following results during the third quarter:

• Gross margin dollars increased 21.9%, or $1.1 million year over year, to $5.9 million for the third quarter 2020, and 24.8%, or $1.2 million, sequentially.
• Gross margin percentage for the third quarter of 2020 decreased 90 basis points to 11.3% compared to 12.2% in both the third quarter of 2019 and sequentially.
• Revenue per load increased 27.2%, or $347 per load year over year, and 39.6%, or $460 per load, sequentially.
• Load count increased by 1,224 loads, or 4.0%, year over year, but decreased by 1,238 loads, or 3.7%, sequentially.

Segment Results

The following table includes key operating results and statistics by reportable segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

Trucking:

2020

 

2019

 

2020

 

2019

 

Operating revenue (before intersegment eliminations) (in thousands)

$

97,383

 

$

93,587

 

$

280,005

 

$

284,965

 

Operating income (loss) (1) (in thousands)

$

3,453

 

$

(278)

 

$

2,941

 

$

2,168

 

Adjusted operating income (2) (in thousands)

$

3,799

 

$

62

 

$

4,276

 

$

3,530

 

Operating ratio (3)

 

96.5

%

 

100.3

%

 

98.9

%

 

99.2

%

Adjusted operating ratio (4)

 

95.8

%

 

99.9

%

 

98.3

%

 

98.6

%

Total miles (5) (in thousands)

 

44,686

 

 

44,850

 

 

136,366

 

 

132,297

 

Deadhead percentage (6)

 

12.4

%

 

13.5

%

 

12.9

%

 

13.2

%

Base revenue per loaded mile

$

2.288

 

$

2.097

 

$

2.129

 

$

2.159

 

Average number of seated tractors

 

1,827

 

 

1,862

 

 

1,884

 

 

1,815

 

Average number of available tractors (7)

 

1,969

 

 

1,991

 

 

2,005

 

 

1,941

 

Average number of in-service tractors (8)

 

1,991

 

 

2,020

 

 

2,026

 

 

1,973

 

Loaded miles per available tractor per week

 

1,512

 

 

1,498

 

 

1,513

 

 

1,517

 

Base revenue per available tractor per week

$

3,460

 

$

3,142

 

$

3,221

 

$

3,275

 

Average loaded miles per trip

 

507

 

 

488

 

 

501

 

 

491

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USAT Logistics:

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue (before intersegment eliminations) (in thousands)

$

52,059

 

$

39,365

 

$

126,623

 

$

120,390

 

Operating income (1) (in thousands)

$

981

 

$

244

 

$

181

 

$

3,702

 

Adjusted operating income (2) (in thousands)

$

984

 

$

244

 

$

188

 

$

3,702

 

Gross margin (9) (in thousands)

$

5,880

 

$

4,822

 

$

14,561

 

$

19,041

 

Gross margin percentage (10)

 

11.3

%

 

12.2

%

 

11.5

%

 

15.8

%

Load count (in thousands)

 

32.1

 

 

30.9

 

 

92.7

 

 

87.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1)

Operating income (loss) is calculated by deducting operating expenses (before intersegment eliminations) from operating revenue (before intersegment eliminations).

 

2)

Adjusted operating income (loss)(a) is calculated by deducting operating expenses (before intersegment eliminations) excluding severance costs included in salaries, wages and employee benefits, certain asset impairments, and amortization of acquisition related intangibles, net of fuel surcharge revenue from operating revenue (before intersegment eliminations), net of fuel surcharge revenue.

 

3)

Operating ratio is calculated as operating expenses (before intersegment eliminations) as a percentage of operating revenue (before intersegment eliminations).

 

4)

Adjusted operating ratio(a) is calculated as operating expenses (before intersegment eliminations) excluding severance costs included in salaries, wages and employee benefits, certain asset impairments, and amortization of acquisition related intangibles, net of fuel surcharge revenue, as a percentage of operating revenue (before intersegment eliminations) excluding fuel surcharge revenue.

 

5)

Total miles include both loaded and empty miles.

 

6)

Deadhead percentage is calculated by dividing empty miles by total miles.

 

7)

Available tractors are a) all Company tractors that are available to be dispatched, including available unseated tractors, and b) all tractors in the independent contractor fleet.

 

8)

In-service tractors include all of the tractors in the Company fleet (Company-operated tractors) and all the tractors in the independent contractor fleet.

 

9)

Gross margin is calculated by deducting USAT Logistics purchased transportation expense from USAT Logistics operating revenue (before intersegment eliminations).

 

10)

Gross margin percentage is calculated as USAT Logistics gross margin divided by USAT Logistics operating revenue (before intersegment eliminations).

Balance Sheet and Liquidity

As of September 30, 2020, total debt and lease liabilities was $182.0 million, total debt and lease liabilities, net of cash (“Net Debt”)(a), was $180.8 million and total stockholders’ equity was $78.2 million. Net Debt to Adjusted EBITDAR(a) for the trailing twelve months ended September 30, 2020 was 3.5x. The Company had $47.6 million available to borrow under its Credit Facility as of September 30, 2020.

Third Quarter 2020 Conference Call Information

USA Truck will hold a conference call to discuss its third quarter 2020 results on Friday, October 30, 2020 at 8:00 AM CT / 9:00 AM ET. To participate in the call, please dial 1-844-824-3828 (U.S./Canada) or 1‑412‑317‑5138 (International). A live webcast of the conference call will be broadcast in the Investor Relations section of the Company’s website www.usa-truck.com, under the “Events & Presentations” tab of the “Investor Relations” menu. For those who cannot listen to the live broadcast, the presentation materials and an audio replay of the call will be available at our website, www.usa-truck.com, under the “Events & Presentations” tab of the “Investor Relations” menu, or may be accessed using the following link: https://services.choruscall.com/links/usak201030.html. A telephone replay of the call will also be available through November 6, 2020, and may be accessed by calling 1-877-344-7529 (U.S.), 1-855-669-9658 (Canada), or 1‑412-317-0088 (International) and by referencing conference ID #10147739.

(a) About Non-GAAP Financial Information

In addition to our GAAP results, this press release also includes certain non-GAAP financial measures, as defined by the SEC. The terms “Base Revenue”, “Net Debt”, “EBITDAR”, “Adjusted EBITDAR”, “Adjusted operating ratio”, “Adjusted operating income (loss)”, “Adjusted net income (loss)”, and “Adjusted earnings (loss) per diluted share”, as we define them, are not presented in accordance with GAAP.

The Company defines Base Revenue as operating revenue less fuel surcharge revenue and intercompany eliminations. The Company defines Net Debt as total debt, including insurance premium financing and lease liabilities, net of cash. The Company defines EBITDAR as net income (loss), plus interest expense net of interest income, provision for income tax expense (benefit), depreciation and amortization, and equipment rent. The Company defines Adjusted EBITDAR as EBITDAR plus non-cash equity compensation, severance costs included in salaries, wages and employee benefits and asset impairments. Adjusted operating ratio is calculated as operating expenses excluding severance costs included in salaries, wages and employee benefits, certain asset impairments, and amortization of acquisition related intangibles, net of fuel surcharge revenue, as a percentage of operating revenue excluding fuel surcharge revenue. Adjusted operating income (loss) is calculated by deducting operating expenses excluding severance costs included in salaries, wages and employee benefits, certain asset impairments, and amortization of acquisition related intangibles, net of fuel surcharge revenue, from operating revenue, net of fuel surcharge revenue. Adjusted net income (loss) is defined as net income (loss) excluding severance costs included in salaries, wages and employee benefits, certain asset impairments, and amortization of acquisition related intangibles plus or minus the income tax effect of such adjustments using a statutory tax rate. Adjusted earnings (loss) per diluted share is defined as Adjusted net income (loss) divided by the weighted average number of diluted shares outstanding during the period. The per-share impact of each item is determined by dividing it by the weighted average diluted shares outstanding. These financial measures supplement our GAAP results in evaluating certain aspects of our business. We believe that using these measures improves comparability in analyzing our performance because they remove the impact of items from our operating results that, in our opinion, do not reflect our core operating performance. Management and the board of directors focus on Base Revenue, Net Debt, EBITDAR, Adjusted EBITDAR, Adjusted operating ratio, Adjusted operating income (loss), Adjusted net income (loss), and Adjusted earnings (loss) per diluted share as key measures of our performance and liquidity, all of which are reconciled to the most comparable GAAP financial measures and further discussed below. We believe our presentation of these non-GAAP financial measures is useful to investors and other users because it provides them the same information that we use internally for purposes of assessing our core operating performance.

These non-GAAP financial measures are not substitutes for their comparable GAAP financial measures, such as total debt, net income (loss), cash flows from operating activities, operating ratio, diluted earnings (loss) per share, or other measures prescribed by GAAP. There are limitations to using non-GAAP financial measures. Although we believe that they improve comparability in analyzing our period to period performance, they could limit comparability to other companies in our industry if those companies define these measures differently. Because of these limitations, our non-GAAP financial measures should not be considered measures of income generated by our business or discretionary cash available to us to invest in the growth of our business. Management compensates for these limitations by primarily relying on GAAP results and using non-GAAP financial measures on a supplemental basis.

Pursuant to the requirements of Regulation G and Regulation S-K, we have provided reconciliations of Base Revenue, Net Debt, EBITDAR, Adjusted EBITDAR, Adjusted operating ratio, Adjusted operating income (loss), Adjusted net income (loss), and Adjusted earnings (loss) per diluted share to the most comparable GAAP financial measures at the end of this press release.

Cautionary Statement Concerning Forward-Looking Statements

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 our quarterly review procedures, and the filing of the related Quarterly Report on Form 10-Q, 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. Such forward-looking statements are made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. These statements generally may be identified by their use of terms or phrases such as “seek,” “expects,” “estimates,” “anticipates,” “projects,” “believes,” “hopes,” “plans,” “goals,” “intends,” “may,” “might,” “likely,” “will,” “should,” “would,” “could,” “potential,” “predict,” “continue,” “strategy,” “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, including the impacts and duration of the COVID-19 pandemic. In addition, there are other risks, 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 materially 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, Quarterly Reports on Form 10-Q, and other filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made. 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, except as required by law. 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 expression refer to USA Truck Inc. and its subsidiaries.

About USA Truck

USA Truck provides comprehensive capacity solutions to a broad and diverse customer base throughout North America. Our Trucking and USAT Logistics divisions blend an extensive portfolio of asset and asset-light services, offering a balanced approach for our customers’ supply chain management, including customized truckload, dedicated contract carriage, intermodal and third-party logistics freight management services. For more information, visit usa-truck.com or usatlogistics.com.

This press release and related information will be available to interested parties at our investor relations website, http://investor.usa-truck.com.

 

USA TRUCK INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2020

 

2019

 

2020

 

2019

 

 

(in thousands, except per share data)

Operating revenue

 

$

141,786

 

$

130,924

 

$

392,296

 

$

398,520

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and employee benefits

 

 

34,916

 

 

32,846

 

 

104,397

 

 

102,742

Fuel and fuel taxes

 

 

9,734

 

 

13,842

 

 

29,679

 

 

41,575

Depreciation and amortization

 

 

9,896

 

 

9,652

 

 

29,941

 

 

27,595

Insurance and claims

 

 

5,388

 

 

6,499

 

 

15,254

 

 

20,939

Equipment rent

 

 

2,479

 

 

2,427

 

 

7,107

 

 

7,715

Operations and maintenance

 

 

9,310

 

 

8,829

 

 

26,812

 

 

24,583

Purchased transportation

 

 

59,617

 

 

51,281

 

 

156,707

 

 

148,634

Operating taxes and licenses

 

 

1,167

 

 

1,218

 

 

3,675

 

 

3,646

Communications and utilities

 

 

867

 

 

967

 

 

2,586

 

 

2,453

Loss (gain) on disposal of assets, net

 

 

398

 

 

(696)

 

 

420

 

 

(700)

Asset impairments

 

 

—

 

 

1

 

 

588

 

 

368

Other

 

 

3,580

 

 

4,092

 

 

12,008

 

 

13,100

Total operating expenses

 

$

137,352

 

$

130,958

 

$

389,174

 

$

392,650

Operating income (loss)

 

 

4,434

 

 

(34)

 

 

3,122

 

 

5,870

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

1,416

 

 

1,615

 

 

4,335

 

 

4,951

Other, net

 

 

57

 

 

145

 

 

167

 

 

453

Total other expenses, net

 

 

1,473

 

 

1,760

 

 

4,502

 

 

5,404

Income (loss) before income taxes

 

 

2,961

 

 

(1,794)

 

 

(1,380)

 

 

466

Income tax expense (benefit)

 

 

666

 

 

(421)

 

 

(193)

 

 

337

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated net income (loss) and comprehensive income (loss)

 

$

2,295

 

$

(1,373)

 

$

(1,187)

 

$

129

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding (basic)

 

 

8,807

 

 

8,564

 

 

8,762

 

 

8,509

Basic earnings (loss) per share

 

$

0.26

 

$

(0.16)

 

$

(0.14)

 

$

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding (diluted)

 

 

8,955

 

 

8,564

 

 

8,762

 

 

8,522

Diluted earnings (loss) per share

 

$

0.26

 

$

(0.16)

 

$

(0.14)

 

$

0.02

 

GAAP TO NON-GAAP RECONCILIATIONS

(UNAUDITED)

ADJUSTED EARNINGS (LOSS) BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION, RENT

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

9/30/2020

 

6/30/2020

 

3/31/2020

 

12/31/2019

 

(in thousands)

Net income (loss)

$

2,295

 

$

(931)

 

$

(2,551)

 

$

(4,827)

Add:

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

9,896

 

 

10,034

 

 

10,011

 

 

9,598

Equipment rent

 

2,479

 

 

2,336

 

 

2,292

 

 

2,459

Interest expense, net

 

1,416

 

 

1,235

 

 

1,684

 

 

1,646

Income tax expense (benefit)

 

666

 

 

632

 

 

(1,491)

 

 

(493)

EBITDAR

 

16,752

 

 

13,306

 

 

9,945

 

 

8,383

Add:

 

 

 

 

 

 

 

 

 

 

 

Non-cash equity compensation

 

406

 

 

363

 

 

471

 

 

527

Severance costs included in salaries, wages and employee benefits

 

9

 

 

84

 

 

92

 

 

122

Asset impairments

 

—

 

 

588

 

 

—

 

 

418

Adjusted EBITDAR

$

17,167

 

$

14,341

 

$

10,508

 

$

9,450

 

ADJUSTED NET INCOME (LOSS) RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

2020

 

2019

 

2020

 

2019

 

(in thousands)

Net income (loss)

$

2,295

 

$

(1,373)

 

$

(1,187)

 

$

129

Adjusted for:

 

 

 

 

 

 

 

 

 

 

 

Severance costs included in salaries, wages and employee benefits

 

9

 

 

—

 

 

185

 

 

319

Asset impairment - land

 

—

 

 

—

 

 

137

 

 

—

Amortization of acquisition related intangibles

 

340

 

 

340

 

 

1,020

 

 

1,043

Income tax effect of adjustments

 

(89)

 

 

(87)

 

 

(342)

 

 

(347)

Adjusted net income (loss)

$

2,555

 

$

(1,120)

 

$

(187)

 

$

1,144

 

ADJUSTED EARNINGS (LOSS) PER DILUTED SHARE RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

2020

 

2019

 

2020

 

2019

Earnings (loss) per diluted share

$

0.26

 

$

(0.16)

 

$

(0.14)

 

 

0.02

Adjusted for:

 

 

 

 

 

 

 

 

 

 

 

Severance costs included in salaries, wages and employee benefits

 

0.00

 

 

—

 

 

0.02

 

 

0.04

Asset impairment - land

 

—

 

 

—

 

 

0.02

 

 

—

Amortization of acquisition related intangibles

 

0.04

 

 

0.04

 

 

0.12

 

 

0.12

Income tax effect of adjustments

 

(0.01)

 

 

(0.01)

 

 

(0.04)

 

 

(0.04)

Adjusted earnings (loss) per diluted share

$

0.29

 

$

(0.13)

 

$

(0.02)

 

$

0.14

 

NET DEBT RECONCILIATION

 

 

 

 

 

 

 

September 30, 2020

 

December 31, 2019

 

(in thousands)

Total current debt and lease liabilities

$

28,109

 

$

42,994

Long-term debt, less current maturities

 

89,238

 

 

83,349

Leases, less current maturities

 

64,660

 

 

64,209

Total Debt

 

182,007

 

 

190,552

Less: Cash

 

(1,161)

 

 

(97)

Net Debt

$

180,846

 

$

190,455

 

 

 

 

 

 

 

ADJUSTED OPERATING RATIO RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

Consolidated

2020

 

2019

 

2020

 

2019

 

 

(in thousands)

 

Operating revenue

$

141,786

 

$

130,924

 

$

392,296

 

$

398,520

 

Less: fuel surcharge revenue

 

(10,249)

 

 

(16,015)

 

 

(34,794)

 

 

(48,357)

 

Base revenue

$

131,537

 

$

114,909

 

$

357,502

 

$

350,163

 

Operating expense

$

137,352

 

$

130,958

 

$

389,174

 

$

392,650

 

Adjusted for:

 

 

 

 

 

 

 

 

 

 

 

 

Severance costs included in salaries, wages and employee benefits

 

(9)

 

 

—

 

 

(185)

 

 

(319)

 

Asset impairment - land

 

—

 

 

—

 

 

(137)

 

 

—

 

Amortization of acquisition related intangibles

 

(340)

 

 

(340)

 

 

(1,020)

 

 

(1,043)

 

Fuel surcharge revenue

 

(10,249)

 

 

(16,015)

 

 

(34,794)

 

 

(48,357)

 

Adjusted operating expense

$

126,754

 

$

114,603

 

$

353,038

 

$

342,931

 

Operating income (loss)

$

4,434

 

$

(34)

 

$

3,122

 

$

5,870

 

Adjusted operating income

$

4,783

 

$

306

 

$

4,464

 

$

7,232

 

Operating ratio

 

96.9

%

 

100.0

%

 

99.2

%

 

98.5

%

Adjusted operating ratio

 

96.4

%

 

99.7

%

 

98.8

%

 

97.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

Trucking Segment

2020

 

2019

 

2020

 

2019

 

 

(in thousands)

 

Operating revenue

$

96,732

 

$

93,354

 

$

277,652

 

$

283,963

 

Intersegment activity

 

651

 

 

233

 

 

2,353

 

 

1,002

 

Operating revenue (before intersegment eliminations)

 

97,383

 

 

93,587

 

 

280,005

 

 

284,965

 

Less: fuel surcharge revenue

 

(7,847)

 

 

(12,274)

 

 

(27,218)

 

 

(37,073)

 

Base revenue

$

89,536

 

$

81,313

 

$

252,787

 

$

247,892

 

Operating expense (before intersegment eliminations)

$

93,930

 

$

93,865

 

$

277,064

 

$

282,797

 

Adjusted for:

 

 

 

 

 

 

 

 

 

 

 

 

Severance costs included in salaries, wages and employee benefits

 

(6)

 

 

—

 

 

(178)

 

 

(319)

 

Asset impairment - land

 

—

 

 

—

 

 

(137)

 

 

—

 

Amortization of acquisition related intangibles

 

(340)

 

 

(340)

 

 

(1,020)

 

 

(1,043)

 

Fuel surcharge revenue

 

(7,847)

 

 

(12,274)

 

 

(27,218)

 

 

(37,073)

 

Adjusted operating expense

$

85,737

 

$

81,251

 

$

248,511

 

$

244,362

 

Operating income (loss)

$

3,453

 

$

(278)

 

$

2,941

 

$

2,168

 

Adjusted operating income

$

3,799

 

$

62

 

$

4,276

 

$

3,530

 

Operating ratio

 

96.5

%

 

100.3

%

 

98.9

%

 

99.2

%

Adjusted operating ratio

 

95.8

%

 

99.9

%

 

98.3

%

 

98.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

USAT Logistics Segment

2020

 

2019

 

2020

 

2019

 

 

(in thousands)

 

Operating revenue

$

45,054

 

$

37,570

 

$

114,644

 

$

114,557

 

Intersegment activity

 

7,005

 

 

1,795

 

 

11,979

 

 

5,833

 

Operating revenue (before intersegment eliminations)

 

52,059

 

 

39,365

 

 

126,623

 

 

120,390

 

Less: fuel surcharge revenue

 

(2,565)

 

 

(3,991)

 

 

(8,260)

 

 

(11,920)

 

Base revenue

$

49,494

 

$

35,374

 

$

118,363

 

$

108,470

 

Operating expense (before intersegment eliminations)

$

51,078

 

$

39,121

 

$

126,442

 

$

116,688

 

Adjusted for:

 

 

 

 

 

 

 

 

 

 

 

 

Severance costs included in salaries, wages and employee benefits

 

(3)

 

 

—

 

 

(7)

 

 

—

 

Fuel surcharge revenue

 

(2,565)

 

 

(3,991)

 

 

(8,260)

 

 

(11,920)

 

Adjusted operating expense

$

48,510

 

$

35,130

 

$

118,175

 

$

104,768

 

Operating income

$

981

 

$

244

 

$

181

 

$

3,702

 

Adjusted operating income

$

984

 

$

244

 

$

188

 

$

3,702

 

Operating ratio

 

98.1

%

 

99.4

%

 

99.9

%

 

96.9

%

Adjusted operating ratio

 

98.0

%

 

99.3

%

 

99.8

%

 

96.6

%

 

USA TRUCK INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

 

 

 

 

 

 

Assets

 

September 30, 2020

 

December 31, 2019

Current assets:

 

(in thousands, except share data)

Cash

 

$

1,161

 

$

97

Accounts receivable, net of allowance for doubtful accounts of $697 and $369, respectively

 

 

65,859

 

 

49,853

Other receivables

 

 

4,518

 

 

5,408

Inventories

 

 

873

 

 

769

Assets held for sale

 

 

1,246

 

 

2,542

Prepaid expenses and other current assets

 

 

4,458

 

 

7,855

Total current assets

 

 

78,115

 

 

66,524

Property and equipment:

 

 

 

 

 

 

Land and structures

 

 

33,601

 

 

33,077

Revenue equipment

 

 

311,869

 

 

309,573

Service, office and other equipment

 

 

31,040

 

 

30,235

Property and equipment, at cost

 

 

376,510

 

 

372,885

Accumulated depreciation and amortization

 

 

(144,240)

 

 

(124,216)

Property and equipment, net

 

 

232,270

 

 

248,669

Operating leases - right of use assets

 

 

9,714

 

 

11,775

Goodwill

 

 

5,231

 

 

5,231

Other intangibles, net

 

 

15,433

 

 

16,453

Other assets

 

 

1,362

 

 

2,058

Total assets

 

$

342,125

 

$

350,710

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

26,901

 

$

29,421

Current portion of insurance and claims accruals

 

 

9,488

 

 

12,466

Accrued expenses

 

 

10,616

 

 

6,518

Current finance lease obligations

 

 

23,717

 

 

30,779

Current operating lease obligations

 

 

2,732

 

 

6,050

Long-term debt, current maturities

 

 

1,660

 

 

6,165

Total current liabilities

 

 

75,114

 

 

91,399

Other long-term liabilities

 

 

3,140

 

 

80

Long-term debt, less current maturities

 

 

89,238

 

 

83,349

Long-term finance lease obligations

 

 

57,451

 

 

58,397

Long-term operating lease obligations

 

 

7,209

 

 

5,812

Deferred income taxes

 

 

22,700

 

 

24,017

Insurance and claims accruals, less current portion

 

 

9,071

 

 

9,445

Total liabilities

 

 

263,923

 

 

272,499

Stockholders' equity:

 

 

 

 

 

 

Preferred Stock, $0.01 par value; 1,000,000 shares authorized; none issued

 

 

—

 

 

—

Common Stock, $0.01 par value; 30,000,000 shares authorized; issued 12,038,197 shares, and 11,987,572 shares, respectively

 

 

120

 

 

120

Additional paid-in capital

 

 

60,006

 

 

63,238

Retained earnings

 

 

72,582

 

 

73,769

Less treasury stock, at cost (3,277,294 shares, and 3,434,231 shares, respectively)

 

 

(54,506)

 

 

(58,916)

Total stockholders' equity

 

 

78,202

 

 

78,211

Total liabilities and stockholders' equity

 

$

342,125

 

$

350,710

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20201029006009/en/

Zachary King, SVP & CFO (479) 471-2694 zachary.king@usa-truck.com

Michael Stephens, Investor Relations (479) 471-2610 michael.stephens@usa-truck.com