EX-99 2 presentation.htm presentation.htm
 
 

 
Forward-Looking Statements
Forward-Looking Statements
This information and the statements made at this conference presentation may contain
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,” “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 reports, 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
conference presentation might not occur.
 
 

 
* Vision for Economic Value-Added
VEVA* Strategic Plan
VEVA* Strategic Plan
Objective #1
Earn Cost of Capital
1. Rebuild Our Foundation
  Fewer, more talented people
 
3. Regionalize Trucking Service
  Build density in regional lanes
  Improve pricing yield
  Attract the right customers
  Increase load “Velocity”
Objective #2
EBIT Growth
 
 

 
Change in Our Model Overdue
Change in Our Model Overdue
920 bps
1,050 bps
1,090 bps
Shallower Earnings Peaks and Deeper Troughs
 
 

 
Shareholders Demand Change
Shareholders Demand Change
Truckload Peer Price-to-Book Ratios
As of August 11, 2011
 
 

 
Shareholders Reward Results
Shareholders Reward Results
Financial Performance Correlations to Stock Price
Source: Stephens, Inc., USA Truck, Inc. and SEC documents
 
 

 
Customers Demand Change Too
Customers Demand Change Too
Billions of Dollars Contributed to U.S. GDP
 
 

 
The Market’s Affirmation
The Market’s Affirmation
Long-Haul Freight Ain’t What it Used to Be
 
 

 
Customers
“Big Boys” (provide broad bundle of TL services)
Everybody Else
Direct
Relationship
Control
Freight
Flexible Outsourced Capacity
Earn a return on every load without full capital risk
Disproportionate share of invested capital with
Insufficient returns
Customers Reward Service
Customers Reward Service
 
 

 
VEVA* Strategic Plan
VEVA* Strategic Plan
Objective #1
Earn Cost of Capital
1. Rebuild Our Foundation
  Fewer, more talented people
 
3. Regionalize Trucking Service
  Build density in regional lanes
  Improve pricing yield
  Attract the right customers
  Increase load “Velocity”
Objective #2
EBIT Growth
* Vision for Economic Value-Added
 
 

 
1. Rebuilding the Foundation
1. Rebuilding the Foundation
Significant Progress
 
2011
2007
Practical Effect
Fewer, More Talented People:
 Drivers per non-driver
3.6
3.2
10%
less headcount
Updated Technology:
 Core operating systems
 converted to TMW
100%
0%
Completed
Paving the way to
greater productivity
Improved Safety Performance:
 Insurance and claims
 expense as a % of base
 Trucking revenue
6.9%
9.4%
250
basis points of
operating margin
Fixed Cost Discipline:
 Trucking fixed costs per
 truck per calendar day
$130
$133
0.6%
CAGR despite intense
inflationary pressures
 
 

 
With an Emerging “Big Boy” Model
2. Diversify Service Offerings
2. Diversify Service Offerings
 
 

 
3. Regionalize Trucking Service
3. Regionalize Trucking Service
A 21st Century Freight Network - The Spider Web
 
 

 
3. Regionalize Trucking Service
3. Regionalize Trucking Service
Spinning the Spider Web
 
2011
2007
Practical Effect
Build Density in Regional Lanes:
 % of loads in Spider Web
53%
< 30%
nearly
Double
Build Density in Regional Lanes:
 Loaded Length-of-Haul
534
784
32%
Reduction
Improve Pricing Yield:
 Base Trucking revenue per
 loaded mile
$1.66
$1.43
16%
Improvement
Attract the Right Customers:
 % of revenue with “Core”
 Customers
33%
0%
no
strategy
Order
From Chaos
Increase Load Velocity:
 Loads per Truck per Week
3.2
2.5
Better
But Not Good Enough
 
 

 
Velocity - The Missing Link
3. Regionalize Trucking Service
3. Regionalize Trucking Service
Obstacles:
Operational Execution
Operating System Conversion
Unmanned Tractors > 10%
Solutions:
Debug New System Settings  (all
available resources allocated)
100-Truck Fleet Reduction (during
3rd quarter)
Fresh driver recruiting approach
(already hired outside help)
Operational leadership, intensity
and “regional” know-how 
(David
Hartline hired August 1st)
 
 

 
Why Invest In USA Truck?