USX US Xpress Enterprises Inc

U.S. Xpress Enterprises, Inc. (NYSE: USX) today announced financial and operating results for the third quarter of 2022.

Third Quarter 2022 Highlights compared to Third Quarter 2021

• Operating revenue of $547.8 million compared to $491.1 million
• Operating loss of $22.7 million compared to operating income of $6.6 million
• Operating loss included a $25.7 million increase in claims expense and $4.4 million in other expenses primarily related to the Company’s Realignment Plan1
• Initiatives associated with the Company’s Realignment Plan are now expected to drive $28.0 million in annualized cost reductions

“During the third quarter, we were successful growing our overall fleet size, sequentially improving utilization in our OTR division and taking actions to reduce costs throughout the Company,” said Eric Fuller, President and CEO. “However, quarterly progress on our initiatives was outweighed by elevated claims expense primarily due to recent unexpected and adverse developments in two claims from prior years, along with certain one-time costs in the quarter. As we exit the year, our priority is to get back to the basics and service our customers at a high level. In addition to the $28.0 million in annualized costs we have already taken out of the business, we will continue to identify additional cost takeout opportunities, while allocating capital in a disciplined manner targeting projects that we believe will drive the Company forward.”

Third Quarter 2022 Financial Performance

  Quarter Ended September 30, Nine Months Ended September 30,

2022

2021

2022

2021

Operating revenue

$

547,828

 

$

491,140

 

$

1,618,719

 

$

1,416,921

 

Revenue, excluding fuel surcharge

 

477,428

 

 

451,824

 

 

1,420,940

 

 

1,306,998

 

Operating income (loss)

 

(22,740

)

 

6,635

 

 

(16,482

)

 

23,539

 

Net income (loss) attributable to controlling interest

 

(19,790

)

 

(5,478

)

 

(29,246

)

 

16,156

 

Earnings (losses) per diluted share

 

(0.38

)

 

(0.11

)

 

(0.57

)

 

0.31

 

Adjusted net income (loss) attributable to controlling interest1

 

(19,630

)

 

3,430

 

 

(22,989

)

 

10,153

 

Adjusted earnings (losses) per diluted share1

$

(0.38

)

$

0.07

 

$

(0.44

)

$

0.19

 

Operating Ratio Truckload operating ratio

 

105.6

%

 

98.0

%

 

101.9

%

 

97.9

%

Brokerage operating ratio

 

94.9

%

 

101.6

%

 

96.5

%

 

100.0

%

Operating ratio

 

104.2

%

 

98.6

%

 

101.0

%

 

98.3

%

Adjusted operating ratio1

 

104.5

%

 

98.5

%

 

101.1

%

 

98.2

%

1 See "Non-GAAP Financial Measures" section of this earnings release for more detail including GAAP to Non-GAAP reconciliations.

Operating revenue was $547.8 million, an increase of $56.7 million compared to the third quarter of 2021. The increase was primarily the result of a 12.1% increase in average available tractors combined with a 9.0% increase in average truckload rate per mile. Revenue, excluding fuel surcharge increased $25.6 million to $477.4 million, an increase of 5.7% compared to the third quarter of 2021.

Operating loss was $22.7 million for the third quarter of 2022 compared to operating income of $6.6 million in the third quarter of 2021. Third quarter 2022 operating expenses included incremental claims expense of $25.7 million compared to the third quarter of 2021, primarily due to recent unexpected and adverse developments in two large claims resulting from accidents which occurred in prior years. In addition, third-quarter results included $4.4 million in other expenses1, primarily related to the Company’s Realignment Plan which are described below in the Supplemental Financial Information section of this earnings release.

Net loss attributable to controlling interest for the third quarter of 2022 was $19.8 million, or $0.38 per diluted share, compared to $5.5 million, or $0.11 per diluted share, in the third quarter of 2021.

Truckload Segment   Quarter Ended September 30, Nine Months Ended September 30,

2022

2021

2022

2021

Truckload revenue, net of fuel surcharge

$

401,941

 

$

361,004

 

$

1,162,999

 

$

1,037,850

 

Operating income (loss)

 

(26,604

)

 

8,081

 

 

(25,421

)

 

23,553

 

Operating ratio

 

105.6

%

 

98.0

%

 

101.9

%

 

97.9

%

Adjusted operating income (loss)1

 $

(25,463

)

 $

8,081

 

 $

(26,047

)

 $

23,553

 

Adjusting operating ratio1

 

106.3

%

 

97.8

%

 

102.2

%

 

97.7

%

1 - See "Non-GAAP Financial Measures" section of this earnings release for more detail including GAAP to Non-GAAP reconciliations.

Truckload revenue, net of fuel surcharge was $401.9 million compared to $361.0 million in the third quarter of 2021. The increase was primarily due to a combination of increased average available tractors and an increased overall truckload rate per mile compared to the third quarter of 2021.

The Company’s OTR division increased average revenue per tractor per week due to an increase in average revenue per mile while average revenue miles were flat compared to the third quarter of 2021. Total division revenue grew from a combination of this higher revenue per tractor per week combined with a 14.8% increase in average tractors. However, significant cost inflation weighed on the OTR division’s contribution to overall Truckload segment results in the third quarter.

The Company’s Dedicated division continued to perform at a high level in the quarter. The division grew its average revenue per tractor per week by 12.2% and average tractors by 8.3% which contributed to an increase in total division revenue compared to the third quarter of 2021. The decline in average revenue miles per tractor per week was due to customer mix shift towards more discount retail and grocery business in the quarter.

Brokerage Segment

  Quarter Ended September 30, Nine Months Ended September 30,

2022

2021

2022

2021

Brokerage revenue

$

75,487

 

$

90,820

 

$

257,941

 

$

269,148

 

Gross margin %

 

20.5

%

 

11.2

%

 

17.9

%

 

12.3

%

Operating income (loss)

 $

3,864

 

 $

(1,446

)

 $

8,939

 

 $

(14

)

Operating ratio

 

94.9

%

 

101.6

%

 

96.5

%

 

100.0

%

Load count

 

29,043

 

 

43,766

 

 

104,677

 

 

130,627

 

Brokerage revenue was $75.5 million, which was a decline of 16.9% compared to the third quarter of 2021. The decrease in Brokerage revenue was driven by a 33.6% decrease in load count which more than offset the 25.3% increase in revenue per load compared to the third quarter of 2021. The year-over-year decline in load count was primarily due to an increase in allocation of available freight to the Company’s asset-based OTR fleet which increased by 14.8% compared to the third quarter of 2021.

Brokerage operating income was $3.9 million compared to an operating loss of $1.4 million in the third quarter of 2021. The increase in Brokerage segment operating income was due to the higher gross margin in the third quarter as compared to the third quarter of 2021.

Liquidity and Capital Allocation

At the end of the third quarter of 2022, the Company had liquidity of $131.1 million (defined as cash balances plus availability under the Company’s revolving credit facility), $461.1 million of net debt (defined as long-term debt, including current maturities less cash balances), and $252.2 million of stockholders’ equity.

Year-to-date, through September 30, 2022, capital expenditures, net of proceeds were $113.8 million, and exclude equipment financed under operating leases. Most of the Company’s annual capital expenditures relate to tractors and trailers, for which the Company generally uses a combination of loan financing agreements and finance lease arrangements to fund these acquisitions.

Outlook

Mr. Fuller commented, “Looking ahead to the fourth quarter, we expect further implementation of our Realignment Plan to yield additional cost savings and we will continue to allocate capital, in a disciplined manner, to projects which we believe will drive the business forward. With that said, we must continue to improve utilization in our OTR division to meaningfully improve our overall financial results.”

Conference Call Information

The Company will host a conference call and simultaneous webcast to discuss its third quarter 2022 financial and operating results on November 3, 2022, at 5:00 p.m. ET. The conference call can be accessed live by dialing 1-888-800-8518 or, for international callers, 1-646-307-1863 and asking to be joined to the US Xpress Third Quarter 2022 Earnings Conference Call. The simultaneous webcast can be accessed on the Investor Relations website at investor.usxpress.com.

Supplemental Financial Information

Additional information regarding the Company’s operating results is provided below as well as on the Company’s investor page at investor.usxpress.com.

(1) Certain Expenses Contained in the Company’s Third Quarter Results

During the third quarter, the Company took action to reduce operating expenses. Once fully implemented, the Company anticipates that these actions will result in approximately $28.0 million in annualized cost reductions. The costs include a combination of workforce reduction, real estate footprint rationalization and general and other expenses which are mainly vendor-related expenses. The Company anticipates these cost reduction actions to begin benefitting its financial results beginning in the fourth quarter.

In addition, the Company incurred $30.1 million in expenses that the Company believes may not be indicative of future operating expenses. These expenses negatively impacted the Company’s Truckload segment adjusted operating ratio by approximately 750 basis points2.

Quarter Ended

September 30,

Expense (in millions, $USD)

2022

Incremental insurance premiums and claims expense

$

25.7

Atlanta lease termination

 

1.2

Obsolete technology write-off

 

1.2

Bad debt write-off

 

1.0

Severance-related expense

 

1.0

Total other certain expenses

$

30.1

(2) Non-GAAP Financial Measures

In addition to our net income determined in accordance with U.S. generally accepted accounting principles (‘‘GAAP’’), we evaluate operating performance using certain non-GAAP measures, including Adjusted Operating Ratio, Adjusted Operating Income (Loss), Adjusted Net Income (Loss) Attributable to Controlling Interest, and Adjusted EPS (on a consolidated and, as applicable, segment basis). Management believes the use of non-GAAP measures assists investors and securities analysts in understanding the ongoing operating performance of our business by allowing more effective comparison between periods. Further, management uses non-GAAP Adjusted Operating Ratio, Adjusted Operating Income (Loss), Adjusted Net Income (Loss) Attributable to Controlling Interest, and Adjusted EPS measures on a supplemental basis to remove items that may not be an indicator of performance from period-to-period. The non-GAAP information provided is used by our management and may not be comparable to similar measures disclosed by other companies. The non-GAAP measures used herein have limitations as analytical tools and 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. You should not consider the non-GAAP measures used herein in isolation or as substitutes for analysis of our results as reported under GAAP. Management compensates for these limitations by relying primarily on GAAP results and using non-GAAP financial measures on a supplemental basis.

Non-GAAP Reconciliation - Adjusted Operating Income and Adjusted Operating Ratio (unaudited)   Quarter Ended September 30, Nine Months Ended September 30, (in thousands)

2022

2021

2022

2021

GAAP Presentation: Total revenue

$

547,828

 

$

491,140

 

$

1,618,719

 

$

1,416,921

 

Total operating expenses

 

(570,568

)

 

(484,505

)

 

(1,635,201

)

 

(1,393,382

)

Operating income

$

(22,740

)

$

6,635

 

$

(16,482

)

$

23,539

 

Operating ratio

 

104.2

%

 

98.6

%

 

101.0

%

 

98.3

%

  Non-GAAP Presentation Total revenue

$

547,828

 

$

491,140

 

$

1,618,719

 

$

1,416,921

 

Fuel surcharge

 

(70,400

)

 

(39,316

)

 

(197,779

)

 

(109,923

)

Revenue, excluding fuel surcharge

 

477,428

 

 

451,824

 

 

1,420,940

 

 

1,306,998

 

  Total operating expenses

 

570,568

 

 

484,505

 

 

1,635,201

 

 

1,393,382

 

Adjusted for: Fuel surcharge

 

(70,400

)

 

(39,316

)

 

(197,779

)

 

(109,923

)

Impairment charges1

 

(1,248

)

 

-

 

 

(4,218

)

 

-

 

Gain on sale of terminal2

 

-

 

 

-

 

 

4,002

 

 

-

 

Adjusted operating expenses

 

498,920

 

 

445,189

 

 

1,437,206

 

 

1,283,459

 

Adjusted operating income

$

(21,492

)

$

6,635

 

$

(16,266

)

$

23,539

 

Adjusted operating ratio

 

104.5

%

 

98.5

%

 

101.1

%

 

98.2

%

  1During the first and third quarter of 2022, we incurred a non-cash adjustment due to the write off of obsolete technology 2During the second quarter of 2022, we recognized a gain of $4,002 on sale of terminal which was leased to a former subsidiary   Non-GAAP Reconciliation - Truckload Adjusted Operating Income and Adjusted Operating Ratio (unaudited)   Quarter Ended September 30, Nine Months Ended September 30, (in thousands)

2022

2021

2022

2021

Truckload GAAP Presentation: Total Truckload revenue

$

472,341

 

$

400,320

 

$

1,360,778

 

$

1,147,773

 

Total Truckload operating expenses

 

(498,945

)

 

(392,239

)

 

(1,386,199

)

 

(1,124,220

)

Truckload operating income

$

(26,604

)

$

8,081

 

$

(25,421

)

$

23,553

 

Truckload operating ratio

 

105.6

%

 

98.0

%

 

101.9

%

 

97.9

%

  Truckload Non-GAAP Presentation Total Truckload revenue

$

472,341

 

$

400,320

 

$

1,360,778

 

$

1,147,773

 

Fuel surcharge

 

(70,400

)

 

(39,316

)

 

(197,779

)

 

(109,923

)

Revenue, excluding fuel surcharge

 

401,941

 

 

361,004

 

 

1,162,999

 

 

1,037,850

 

  Total Truckload operating expenses

 

498,945

 

 

392,239

 

 

1,386,199

 

 

1,124,220

 

Adjusted for: Fuel surcharge

 

(70,400

)

 

(39,316

)

 

(197,779

)

 

(109,923

)

Impairment charges1

 

(1,141

)

 

-

 

 

(3,376

)

 

-

 

Gain on sale of terminal2

 

-

 

 

-

 

 

4,002

 

 

-

 

Truckload Adjusted operating expenses

 

427,404

 

 

352,923

 

 

1,189,046

 

 

1,014,297

 

Truckload Adjusted operating income (loss)

$

(25,463

)

$

8,081

 

$

(26,047

)

$

23,553

 

Truckload Adjusted operating ratio

 

106.3

%

 

97.8

%

 

102.2

%

 

97.7

%

  1During the first and third quarter of 2022, we incurred a non-cash adjustment due to the write off of obsolete technology 2During the second quarter of 2022, we recognized a gain of $4,002 on sale of terminal which was leased to a former subsidiary Non-GAAP Reconciliation - Adjusted Net Income and EPS (unaudited)   Quarter Ended September 30, Nine Months Ended September 30, (in thousands, except per share data)

2022

2021

2022

2021

GAAP: Net income (loss) attributable to controlling interest

$

(19,790

)

$

(5,478

)

$

(29,246

)

$

16,156

 

Adjusted for: Income tax provision (benefit)

 

(7,786

)

 

(3,361

)

 

(9,856

)

 

4,732

 

Income (loss) before income taxes attributable to controlling interest

$

(27,576

)

$

(8,839

)

$

(39,102

)

$

20,888

 

Unrealized loss (gain) on equity investment1

 

(131

)

 

12,062

 

 

9,989

 

 

(8,129

)

Gain on sale of terminal2

 

-

 

 

-

 

 

(4,002

)

 

-

 

Gain on sale of equity method investment3

 

 

-

 

 

-

 

 

(1,258

)

 

-

 

Impairment charges4

 

1,248

 

 

-

 

 

4,218

 

 

-

 

Adjusted income (loss) before income taxes

 

(26,459

)

 

3,223

 

 

(30,155

)

 

12,759

 

Adjusted income tax provision (benefit)

 

(6,829

)

 

(207

)

 

(7,166

)

 

2,606

 

Non-GAAP: Adjusted net income (loss) attributable to controlling interest

$

(19,630

)

$

3,430

 

$

(22,989

)

$

10,153

 

  GAAP: Earnings (losses) per diluted share

$

(0.38

)

$

(0.11

)

$

(0.57

)

$

0.31

 

Adjusted for: Income tax expense attributable to controlling interest

 

(0.15

)

 

(0.06

)

 

(0.19

)

 

0.09

 

Income (loss) before income taxes attributable to controlling interest

$

(0.53

)

$

(0.17

)

$

(0.76

)

$

0.40

 

Unrealized loss (gain) on equity investment1

 

-

 

 

0.24

 

 

0.20

 

 

(0.16

)

Gain on sale of terminal2

 

-

 

 

-

 

 

(0.08

)

 

-

 

Gain on sale of equity method investment3

 

-

 

 

-

 

 

(0.02

)

 

-

 

Impairment charges4

 

0.02

 

 

-

 

 

0.08

 

 

-

 

Adjusted income (loss) before income taxes

 

(0.51

)

 

0.07

 

 

(0.58

)

 

0.24

 

Adjusted income tax provision (benefit)

 

(0.13

)

 

-

 

 

(0.14

)

 

0.05

 

Non-GAAP: Adjusted earnings (losses) per diluted share attributable to controlling interest

$

(0.38

)

$

0.07

 

$

(0.44

)

$

0.19

 

  1During 2022 and 2021, we recognized an unrealized loss (gain) on a strategic equity investment 2During the second quarter of 2022, we recognized a gain of $4,002 on sale of terminal which was leased to a former subsidiary 3During the first quarter of 2022, we incurred a gain on sale related to an equity method investment in a former wholly owned subsidiary of $1,258 4During the first and third quarter of 2022, we incurred a non-cash adjustment due to the write off of obsolete technology

Forward Looking Statements

This press release contains certain statements that may be considered 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, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as “expects,” “estimates,” “projects,” “believes,” “anticipates,” “plans,” “intends,” “outlook,” “strategy,” “optimistic,” “will,” “could,” “should,” “may,” “focus,” “seek,” “potential,” “continue,” “goal,” “target,” “objective,” derivations thereof, and similar terms and phrases. In this press release, such statements may include, but are not limited to, statements in the “Certain Expenses” and “Outlook” sections, statements regarding the freight environment, future utilization, the expected impact of the Company’s realignment plan, including lowering fixed and other costs, allocating capital to projects that will drive the business forward, and any other statements concerning: any projections of earnings, revenues, cash flows, capital expenditures, compliance with financial covenants, or other financial items; any statement of plans, strategies, or objectives for future operations; any statements regarding future economic or industry conditions or performance; any statements regarding our responses to COVID-19 and the associated economic conditions; and any statements of belief and any statements of assumptions underlying any of the foregoing. 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. The following factors, among others, could cause actual results to differ materially from those in the forward-looking statements: general economic conditions, including inflation and consumer spending; political conditions and regulations, including future changes thereto; changes in tax laws or in their interpretations and changes in tax rates; future insurance premiums and claims experience, including adverse changes in claims experience and loss development factors, or additional changes in management's estimates of liability based upon such experience and development factors that cause our expectations of insurance premiums and claims expense to be inaccurate or otherwise impacts our results; impact of pending or future legal proceedings; future market for used revenue equipment and real estate; future revenue equipment prices and availability; future capital expenditures, including equipment purchasing and leasing plans and equipment turnover (including expected trade-ins); fleet age; future depreciation and amortization; changes in management’s estimates of the need for new tractors and trailers; future ability to generate sufficient cash from operations and obtain financing on favorable terms to meet our significant ongoing capital requirements; our ability to maintain compliance with the provisions of our credit agreement; freight environment, including freight demand, rates, capacity, and volumes; future asset utilization; loss of one or more of our major customers; our ability to renew dedicated service offering contracts on the terms and schedule we expect; surplus inventories, recessionary economic cycles, and downturns in customers' business cycles; strikes, work slowdowns, or work stoppages at the Company, customers, ports, or other shipping related facilities; increases or rapid fluctuations in fuel prices, as well as fluctuations in surcharge collection, including, but not limited to, changes in customer fuel surcharge policies and increases in fuel surcharge bases by customers; interest rates, fuel taxes, tolls, and license and registration fees; increases in compensation for and difficulty in attracting and retaining qualified professional drivers and independent contractors; independent contractors we contract could be deemed by regulators or the judicial process to be employees; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, intermodal, and brokerage (including digital brokerage) competitors; changes in regulatory requirements that increase costs, decrease efficiency, or reduce the availability of drivers; safety-related evaluations and rankings under the Federal Motor Carrier Safety Administration’s Compliance, Safety, Accountability program; increasing attention on environmental, social and governance matters; future safety performance; our ability to reduce, or control increases in, operating costs; future third-party service provider relationships and availability; execution of the Company’s current business strategy or changes in the Company’s business strategy; the ability of the Company’s infrastructure to support future organic or inorganic growth; our ability to identify acceptable acquisition candidates, consummate acquisitions, and integrate acquired operations; our ability to adapt to changing market conditions and technologies, including the future use of autonomous tractors; disruptions to our information technology; the cost of and our ability to effectively and efficiently implement technology initiatives; costs, diversion of management’s attention, and potential payments made in connection with the multiple class action lawsuits a stockholder derivative lawsuit arising out of our IPO; credit, reputational and relationship risks of certain of our current and former equity investments; the dual class structure of our common stock has the effect of concentrating voting control with certain members of the Fuller and Quinn families, which limits or precludes the ability of other stockholders to influence corporate matters; our ability to maintain effective internal controls without material weaknesses; and the impact of the coronavirus outbreak or other similar outbreaks. Readers should review and consider these factors along with the various disclosures by the Company in its press releases, stockholder reports, and 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.

About U.S. Xpress

Through its subsidiaries, U.S. Xpress Enterprises, Inc. offers customers over-the-road, dedicated, and brokerage services. Founded in 1985, the Company utilizes a combination of smart technology, a modern fleet of tractors and a network of highly trained, professional drivers to efficiently move freight for a wide variety of customers. U.S. Xpress implements a range of digital initiatives and technology to drive innovation in the industry, streamline the value chain for customers and improve the overall driver experience.

Condensed Consolidated Income Statements (unaudited) Quarter Ended September 30, Nine Months Ended September 30, (in thousands, except per share data)

2022

2021

2022

2021

Operating Revenue: Revenue, excluding fuel surcharge

$

477,428

 

$

451,824

 

$

1,420,940

 

$

1,306,998

 

Fuel surcharge

 

70,400

 

 

39,316

 

 

197,779

 

 

109,923

 

Total operating revenue

 

547,828

 

 

491,140

 

 

1,618,719

 

 

1,416,921

 

Operating Expenses: Salaries, wages and benefits

 

188,430

 

 

158,942

 

 

538,876

 

 

445,445

 

Fuel and fuel taxes

 

86,406

 

 

46,715

 

 

240,702

 

 

130,902

 

Vehicle rents

 

26,237

 

 

22,700

 

 

74,867

 

 

65,710

 

Depreciation and amortization, net of (gain) loss

 

23,187

 

 

19,509

 

 

56,833

 

 

65,096

 

Purchased transportation

 

123,535

 

 

159,152

 

 

414,304

 

 

458,302

 

Operating expense and supplies

 

51,339

 

 

38,683

 

 

143,832

 

 

105,641

 

Insurance premiums and claims

 

43,912

 

 

18,242

 

 

87,452

 

 

58,952

 

Operating taxes and licenses

 

4,112

 

 

3,677

 

 

11,780

 

 

10,193

 

Communications and utilities

 

3,707

 

 

2,677

 

 

11,115

 

 

8,029

 

General and other operating

 

19,703

 

 

14,208

 

 

55,440

 

 

45,112

 

Total operating expenses

 

570,568

 

 

484,505

 

 

1,635,201

 

 

1,393,382

 

Operating Income

 

(22,740

)

 

6,635

 

 

(16,482

)

 

23,539

 

Other Expenses (Income): Interest expense, net

 

4,588

 

 

3,572

 

 

12,981

 

 

10,816

 

Other, net

 

(131

)

 

12,062

 

 

8,731

 

 

(8,129

)

 

4,457

 

 

15,634

 

 

21,712

 

 

2,687

 

Income (Loss) Before Income Taxes

 

(27,197

)

 

(8,999

)

 

(38,194

)

 

20,852

 

Income Tax Provision (Benefit)

 

(7,786

)

 

(3,361

)

 

(9,856

)

 

4,732

 

Net Income (Loss)

 

(19,411

)

 

(5,638

)

 

(28,338

)

 

16,120

 

Net Income attributable to non-controlling interest

 

379

 

 

(160

)

 

908

 

 

(36

)

Net Income (Loss) attributable to controlling interest

$

(19,790

)

$

(5,478

)

$

(29,246

)

$

16,156

 

  Income (Loss) Per Share Basic earnings (losses) per share

$

(0.38

)

$

(0.11

)

$

(0.57

)

$

0.32

 

Basic weighted average shares outstanding

 

51,562

 

 

50,563

 

 

51,213

 

 

50,293

 

Diluted earnings (losses) per share

$

(0.38

)

$

(0.11

)

$

(0.57

)

$

0.31

 

Diluted weighted average shares outstanding

 

51,562

 

 

50,563

 

 

51,213

 

 

51,839

 

Condensed Consolidated Balance Sheets (unaudited) September 30, December 31, (in thousands)

2022

2021

Assets Current assets: Cash and cash equivalents

$

1,371

 

$

5,695

 

Customer receivables, net of allowance of $1,019 and $11, respectively

 

241,130

 

 

231,687

 

Other receivables

 

20,756

 

 

18,046

 

Prepaid insurance and licenses

 

21,808

 

 

13,867

 

Operating supplies

 

10,277

 

 

9,550

 

Assets held for sale

 

20,466

 

 

11,831

 

Other current assets

 

26,047

 

 

32,020

 

Total current assets

 

341,855

 

 

322,696

 

Property and equipment, at cost

 

961,179

 

 

890,933

 

Less accumulated depreciation and amortization

 

(390,645

)

 

(370,112

)

Net property and equipment

 

570,534

 

 

520,821

 

Other assets: Operating lease right-of-use assets

 

317,530

 

 

292,347

 

Goodwill

 

59,221

 

 

59,221

 

Intangible assets, net

 

23,870

 

 

24,129

 

Other

 

49,590

 

 

50,829

 

Total other assets

 

450,211

 

 

426,526

 

Total assets

$

1,362,600

 

$

1,270,043

 

Liabilities and Stockholders' Equity Current liabilities: Accounts payable

$

132,328

 

$

126,910

 

Book overdraft

 

3,936

 

 

7,096

 

Accrued wages and benefits

 

41,912

 

 

45,011

 

Claims and insurance accruals

 

55,335

 

 

44,309

 

Other accrued liabilities

 

6,192

 

 

5,962

 

Current portion of operating leases

 

101,213

 

 

88,375

 

Current maturities of long-term debt and finance leases

 

115,941

 

 

85,117

 

Total current liabilities

 

456,857

 

 

402,780

 

Long-term debt and finance leases, net of current maturities

 

346,496

 

 

290,392

 

Less debt issuance costs

 

(322

)

 

(357

)

Net long-term debt and finance leases

 

346,174

 

 

290,035

 

Deferred income taxes

 

13,631

 

 

24,301

 

Other long-term liabilities

 

21,634

 

 

14,457

 

Claims and insurance accruals, long-term

 

51,386

 

 

54,819

 

Noncurrent operating lease liability

 

218,070

 

 

205,362

 

Commitments and contingencies

 

-

 

 

-

 

Stockholders' Equity: Common stock

 

515

 

 

505

 

Additional paid-in capital

 

272,508

 

 

267,621

 

Retained earnings (deficit)

 

(20,806

)

 

8,440

 

Stockholders' equity

 

252,217

 

 

276,566

 

Noncontrolling interest

 

2,631

 

 

1,723

 

Total stockholders' equity

 

254,848

 

 

278,289

 

Total liabilities and stockholders' equity

$

1,362,600

 

$

1,270,043

 

Condensed Consolidated Cash Flow Statements (unaudited) Nine Months Ended September 30, (in thousands)

2022

2021

Operating activities Net income (loss)

$

(28,338

)

$

16,120

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities: Deferred income tax provision (benefit)

 

(10,670

)

 

3,764

 

Depreciation and amortization

 

60,174

 

 

62,049

 

(Gains) losses on sale of property and equipment

 

(3,341

)

 

3,047

 

Share based compensation

 

3,998

 

 

5,294

 

Other

 

203

 

 

546

 

Unrealized loss (gain) on investment

 

9,989

 

 

(8,129

)

Changes in operating assets and liabilities Receivables

 

(14,154

)

 

(38,064

)

Prepaid insurance and licenses

 

(7,838

)

 

(7,486

)

Operating supplies

 

(648

)

 

(3,420

)

Other assets

 

(3,677

)

 

(8,284

)

Accounts payable and other accrued liabilities

 

22,811

 

 

36,762

 

Accrued wages and benefits

 

(3,099

)

 

8,105

 

Net cash provided by operating activities

 

25,410

 

 

70,304

 

Investing activities Payments for purchases of property and equipment

 

(147,643

)

 

(141,068

)

Proceeds from sales of property and equipment

 

33,877

 

 

70,016

 

Net cash used in investing activities

 

(113,766

)

 

(71,052

)

Financing activities Borrowings under lines of credit

 

382,307

 

 

235,612

 

Payments under lines of credit

 

(314,241

)

 

(210,612

)

Borrowings under long-term debt

 

85,674

 

 

83,959

 

Payments of long-term debt and finance leases

 

(67,930

)

 

(110,759

)

Payments of financing costs

 

-

 

 

(100

)

Tax withholding related to net share settlement of restricted stock awards

 

(431

)

 

(1,211

)

Proceeds from long-term consideration for sale of subsidiary

 

483

 

 

460

 

Proceeds from issuance of common stock under ESPP

 

1,330

 

 

1,285

 

Book overdraft

 

(3,160

)

 

2,604

 

Net cash provided by financing activities

 

84,032

 

 

1,238

 

Net change in cash and cash equivalents

 

(4,324

)

 

490

 

Cash and cash equivalents Beginning of year

 

5,695

 

 

5,505

 

End of period

$

1,371

 

$

5,995

 

Truckload Statistics (unaudited)   Quarter Ended September 30, % Nine Months Ended September 30, %

2022

2021

Change

2022

2021

Change Over-the-road Average revenue per tractor per week1

$

3,857

$

3,770

2.3

%

$

3,870

$

3,776

2.5

%

Average revenue per mile1

$

2.475

$

2.421

2.2

%

$

2.519

$

2.286

10.2

%

Average revenue miles per tractor per week

 

1,558

 

1,558

0.0

%

 

1,536

 

1,651

-7.0

%

Average tractors

 

3,918

 

3,413

14.8

%

 

3,757

 

3,384

11.0

%

  Dedicated Average revenue per tractor per week1

$

4,870

$

4,340

12.2

%

$

4,834

$

4,274

13.1

%

Average revenue per mile1

$

2.983

$

2.527

18.0

%

$

2.894

$

2.455

17.9

%

Average revenue miles per tractor per week

 

1,632

 

1,717

-5.0

%

 

1,670

 

1,741

-4.1

%

Average tractors

 

2,730

 

2,520

8.3

%

 

2,657

 

2,575

3.2

%

  Consolidated Average revenue per tractor per week1

$

4,273

$

4,012

6.5

%

$

4,269

$

3,991

7.0

%

Average revenue per mile1

$

2.689

$

2.468

9.0

%

$

2.682

$

2.361

13.6

%

Average revenue miles per tractor per week

 

1,589

 

1,625

-2.2

%

 

1,592

 

1,690

-5.8

%

Average tractors

 

6,648

 

5,933

12.1

%

 

6,414

 

5,959

7.6

%

  Average tractors - Company owned

 

5,739

 

4,746

20.9

%

 

5,448

 

4,619

17.9

%

Owner operators

 

909

 

1,187

-23.4

%

 

966

 

1,340

-27.9

%

Total average tractors

 

6,648

 

5,933

12.1

%

 

6,414

 

5,959

7.6

%

  Miles driven - Total company miles

 

131,047

 

112,516

16.5

%

 

370,261

 

335,779

10.3

%

Total independent contractor miles

 

22,745

 

29,430

-22.7

%

 

71,712

 

101,135

-29.1

%

Total miles

 

153,792

 

141,946

8.3

%

 

441,973

 

436,914

1.2

%

  Independent contractor fuel surcharge

$

11,539

$

8,001

44.2

%

$

34,173

$

24,083

41.9

%

1Excluding fuel surcharge revenues

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221103005353/en/

Investor Contact Matt Garvie Vice President, Investor Relations (423)-633-7153 mgarvie@usxpress.com