0001437749-18-013813.txt : 20180726 0001437749-18-013813.hdr.sgml : 20180726 20180726161022 ACCESSION NUMBER: 0001437749-18-013813 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20180726 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20180726 DATE AS OF CHANGE: 20180726 FILER: COMPANY DATA: COMPANY CONFORMED NAME: USA TRUCK INC CENTRAL INDEX KEY: 0000883945 STANDARD INDUSTRIAL CLASSIFICATION: TRUCKING (NO LOCAL) [4213] IRS NUMBER: 710556971 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-35740 FILM NUMBER: 18971860 BUSINESS ADDRESS: STREET 1: 3200 INDUSTRIAL PARK ROAD CITY: VAN BUREN STATE: AR ZIP: 72956 BUSINESS PHONE: 479-471-2500 MAIL ADDRESS: STREET 1: 3200 INDUSTRIAL PARK ROAD CITY: VAN BUREN STATE: AR ZIP: 72956 8-K 1 usak20180724_8k.htm FORM 8-K usak20180724_8k.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): July 26, 2018

 

 

 

USA Truck, Inc.

 

(Exact Name of Registrant as Specified in Charter)

 

Delaware

1-35740

71-0556971

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)
     

3200 Industrial Park Road

Van Buren, Arkansas

 

72956

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (479) 471-2500

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

 

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 
 

 

Item 2.02      Results of Operations and Financial Condition

 

On July 26, 2018, USA Truck, Inc., a Delaware corporation (the “Company”) issued a press release announcing its results of operations for the second quarter of 2018. A copy of the press release is furnished hereto as Exhibit 99.1.

 

 

Item 9.01      Financial Statements and Exhibits

 

(d) Exhibits

 

99.1     Press release issued by the Company on July 26, 2018.

 

 

The information contained in Items 2.02 and 9.01 of this report and the exhibit hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”), or otherwise subject to the liabilities of Section 18 of the Exchange Act, or incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

 
 

 

SIGNATURE

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

     

USA Truck, Inc.
     

(Registrant)
       

Date:

July 26, 2018

  

/s/ Jason R. Bates
     

Jason R. Bates
     

Executive Vice President and Chief Financial Officer

 

 

 

 
 

 

INDEX TO EXHIBITS

 

 

Exhibit

Number

 

Exhibit

  

99.1

Press release issued by the Company on July 26, 2018.

  

 

 

 

 

 EX-99.1 2 ex_118468.htm EXHIBIT 99.1 ex_118468.htm

Exhibit 99.1

 

 

USA Truck Reports Second Quarter 2018 Results

 

 

●

2Q 2018 net income of $2.5 million, or $0.31 per diluted share versus 2Q 2017 net loss of ($2.8) million, or ($0.35) per diluted share
 

●

2Q 2018 consolidated operating revenue increased 26.1% to $135.4 million from $107.4 million in 2Q 2017
 

●

Continued YoY improvement in base revenue per loaded mile, base revenue per available tractor per week, and average unseated tractor count

 

Van Buren, AR – July 26, 2018 – USA Truck, Inc. (NASDAQ: USAK), a leading capacity solutions provider, today announced its financial results for the three and six months ended June 30, 2018.

 

For the quarter ended June 30, 2018, consolidated operating revenue was $135.4 million compared to $107.4 million for the prior-year period. Base revenue, which excludes fuel surcharge, was $119.1 million compared to $96.0 million for the 2017 period. The Company reported net income of $2.5 million, or $0.31 per diluted share for the second quarter 2018, compared to a net loss of ($2.8) million, or ($0.35) per diluted share, for the same quarter in 2017. The Company’s second quarter 2018 consolidated operating ratio was 96.8%, compared to 102.8% in the comparable 2017 quarter.

 

President and CEO James Reed commented, “USA Truck maintained momentum through the second quarter of 2018, delivering the fourth consecutive quarter of consolidated profitability, as well as producing positive operating income in both the Trucking and Logistics segments. Our trucking operations generated impressive year-over-year and sequential progress in our most critical metric, revenue per truck per week, which was a key contributing factor in our Trucking segment’s operating ratio improvement of 930 basis points year over year and 310 basis points sequentially. Our continued focus on strengthening strategic customer relationships, adding density to our network, and providing strong customer service has also led to new dedicated opportunities which we expect will enhance utilization and be accretive to the bottom line. We remain focused on seating trucks, improving base revenue per available tractor per week and increasing volume in our USAT Logistics segment. We believe increased performance in these areas will continue to deliver on our goals of continued improvement in our consolidated results and maximizing shareholder value.”

 

Trucking: For the second quarter of 2018, Trucking operating revenue increased $14.0 million, or 19.6%, to $85.6 million, compared to the second quarter of 2017.  This increase was primarily due to a 21.7% increase in base revenue per loaded mile. Trucking operating income was $2.2 million for the 2018 period, reflecting an operating ratio of 97.5%, compared to a ($4.8) million operating loss and an operating ratio of 106.8% for the comparable 2017 period. This represents an improvement of $7.0 million year-over-year in operating income and a 930 basis point improvement in operating ratio.

 

Trucking operations showed the following during the second quarter 2018:

 

 

●

Base revenue per available tractor per week increased $564 per week, or 19.5%, when compared to the second quarter of 2017, and increased $203 per week, or 6.3% sequentially over the first quarter of 2018.

 

 

●

Base revenue per loaded mile increased 21.7% to $2.145 for second quarter 2018 from $1.762 in second quarter 2017. This continues a trend of sequential and year-over-year increases that began mid-2017 with focused network and rate improvement efforts.

 

 
 

 

 

●

Loaded miles per available tractor per week decreased 29 miles per tractor, or 1.8%, when compared to the second quarter of 2017, and decreased 8 miles per tractor, or 0.5%, sequentially over the first quarter of 2018. Deadhead percentage for second quarter 2018 increased 70 basis points year-over-year and 80 basis points sequentially over the first quarter of 2018. We expected these impacts from the intentional, targeted shifts in our freight mix that favorably contributed to yield increases in overall revenue per truck per week, which we believe is our most critical metric.

 

 

●

Average unseated tractor percentage for second quarter 2018 was 6.7%, which represents an improvement of 130 basis points year-over-year and 60 basis points sequentially over the first quarter of 2018. The average seated tractor count for the second quarter of 2018 was 1,558, which represented a 1.6% decrease compared to our second quarter 2017 average of 1,584.

 

USAT Logistics: Operating revenue increased 39.1%, or $14.0 million year-over-year to $49.8 million for the second quarter of 2018, and increased 7.6%, or $3.5 million sequentially over first quarter 2018. Operating income increased $0.3 million, or 15.0% year-over-year and decreased $0.7 million, or 24.4% sequentially, which was a direct result of continuing to service our contractual freight while striving to mitigate higher market-based purchased transportation costs, as opposed to abandoning commitments and purely pursuing spot market transactions. We believe building a strategic partnership with our core customers will enable USAT Logistics to grow volume and market share over the long term.

 

 

●

Gross margin percentage for the second quarter of 2018 decreased to 15.1% from 18.5% when compared to the same quarter in 2017, and decreased 190 basis points sequentially from 17.0% for the first quarter of 2018.

 

 

●

Revenue per load increased 31.7%, or $399 per load, year-over-year, and decreased 5.0%, or $88 per load, over first quarter of 2018.

 

Segment Results

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

 

   

Three Months Ended

    

Six Months Ended

  
   

June 30,

    

June 30,

  

Trucking:

  

2018

    

2017

    

2018

    

2017

  

Operating revenue (in thousands)

   $ 85,569     $ 71,545     $ 164,302     $ 141,825  

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

   $ 2,153     $ (4,843 )   $ 1,689     $ (11,971 )

Operating ratio (2)

     97.5

%

     106.8

%

     99.0

%

     108.4

%

Adjusted operating ratio (3)

     97.1

%

     107.6

%

     98.9

%

     109.2

%

Total miles (in thousands) (4)

     39,560       40,833       78,103       81,283  

Deadhead percentage (5)

     13.5

%

     12.8

%

     13.1

%

     13.0

%

Base revenue per loaded mile

   $ 2.145     $ 1.762     $ 2.078     $ 1.751  

Average number of seated tractors (6)

     1,558       1,584       1,546       1,573  

Average number of available tractors (7)

     1,638       1,672       1,628       1,663  

Average number of in-service tractors (8)

     1,668       1,722       1,661       1,713  

Loaded miles per available tractor per week

     1,608       1,637       1,612       1,644  

Base revenue per available tractor per week

   $ 3,449     $ 2,885     $ 3,350     $ 2,879  

Average loaded miles per trip

     522       560       532       569  
                                 

USAT Logistics:

                                

Operating revenue (in thousands)

   $ 49,812     $ 35,813     $ 96,092     $ 67,203  

Operating income (in thousands) (1)

   $ 2,158     $ 1,877     $ 5,014     $ 2,606  

Gross margin (in thousands) (9)

   $ 7,513       6,620       15,397       11,979  

Gross margin percentage (10)

     15.1

%

     18.5

%

     16.0

%

     17.8

%

  

(1)

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

(2)

Operating ratio is calculated as operating expenses as a percentage of operating revenue.

 

 
 

 

(3)

Adjusted operating ratio is calculated as operating expenses less restructuring, impairment and other costs, and severance costs included in salaries, wages and employee benefits, net of fuel surcharge revenue, as a percentage of operating revenue excluding fuel surcharge revenue(a).

(4)

Total miles include both loaded and empty miles.

(5)

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

(6)

Seated tractors are those occupied by a driver, both Company-operated and independent contractor.

(7)

Available tractors are all those Company tractors that are available to be dispatched, including available unseated tractors, and our independent contractor fleet.

(8)

In-service tractors include all of the tractors in the Company fleet, including Company-operated tractors and independent contractors.

(9)

Gross margin is calculated by deducting purchased transportation expense from USAT Logistics operating revenue.

(10)

Gross margin percentage is calculated as gross margin divided by USAT Logistics operating revenue.

 

Balance Sheet and Liquidity

As of June 30, 2018, total debt and capital lease obligations was $90.3 million, total debt and capital lease obligations, net of cash (“Net Debt”)(a), was $90.3 million and total stockholders’ equity was $70.1 million.  Net Debt to Adjusted EBITDA(a) for the trailing twelve months improved to 2.1x from 2.6x at March 31, 2018 and a high of 6.4x at June 30, 2017.  The Company had approximately $68.2 million available to borrow under its credit facility as of June 30, 2018.

 

Second Quarter 2018 Conference Call Information

USA Truck will hold a conference call to discuss its second quarter 2018 results on Friday, July 27, 2018 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/usak180427.html. A telephone replay of the call will also be available through August 3, 2018, 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 #10121309.

 

(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”, “EBITDA”, “Adjusted EBITDA”, “Adjusted operating ratio”, “Adjusted net income”, and “Adjusted earnings (loss) per diluted share”, as we define them, are not presented in accordance with GAAP.

 

The Company defines Net Debt as total debt, including insurance premium financing and capital lease obligations, net of cash. The Company defines EBITDA as net income (loss), plus interest expense net of interest income, provision for income tax expense (benefit) and depreciation and amortization. The Company defines Adjusted EBITDA as EBITDA plus non-cash equity compensation, restructuring, impairment and other costs, and severance costs included in salaries, wages and employee benefits. Adjusted operating ratio is calculated as operating expenses less restructuring, impairment and other costs and severance costs included in salaries, wages and employee benefits, net of fuel surcharge revenue, as a percentage of operating revenue excluding fuel surcharge revenue. Adjusted net income is defined as net income (loss) less restructuring, impairment and other costs and severance costs included in salaries, wages and employee benefits. Adjusted earnings (loss) per diluted share is defined as earnings (loss) per share plus the per-share impact of restructuring, impairment and other costs, and severance costs included in salaries, wages and employee benefits, plus or minus the per share tax impact of those adjustments using a statutory income tax rate. 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 Net Debt, EBITDA, Adjusted EBITDA, Adjusted operating ratio, Adjusted net income, and Adjusted earnings (loss) per diluted share as key measures of our performance, 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.

 

 
 

 

Net Debt, EBITDA, Adjusted EBITDA, Adjusted operating ratio, Adjusted net income, and Adjusted earnings (loss) per diluted share are not substitutes for their comparable GAAP financial measures, such as net income, cash flows from operating activities, operating margin ratio, diluted earnings 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 EBITDA, Adjusted EBITDA, Adjusted operating ratio, Adjusted net income, 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, 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 import refer to USA Truck, Inc. and its subsidiary.

 

 
 

 

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 to 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.

 

Company Contact

USA Truck, Inc.

Jason Bates, EVP & CFO

(479) 471-2672

jason.bates@usa-truck.com

 

Jimmie Acklen, Investor Relations Liaison

(479) 471-3430

jimmie.acklen@usa-truck.com

 

 
 

 

USA TRUCK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) 

(UNAUDITED)

(in thousands, except per share data)

 

   

Three Months Ended

    

Six Months Ended

  
   

June 30,

    

June 30,

  

Revenue

  

2018

    

2017

    

2018

    

2017

  

Operating revenue

   $ 135,381     $ 107,358     $ 260,394     $ 209,028  
                                 

Operating expenses

                                

Salaries, wages and employee benefits

     31,645       29,221       63,882       59,860  

Fuel and fuel taxes

     13,984       10,479       27,463       21,253  

Depreciation and amortization

     7,477       6,879       14,657       14,523  

Insurance and claims

     5,341       5,561       10,943       13,893  

Equipment rent

     2,151       2,633       4,869       4,747  

Operations and maintenance

     8,913       7,950       16,874       14,521  

Purchased transportation

     55,817       41,005       104,855       78,408  

Operating taxes and licenses

     1,262       1,024       1,764       1,974  

Communications and utilities

     677       598       1,390       1,264  

Gain on disposal of assets, net

     (395 )     (77 )     (564 )     (337 )

Restructuring, impairment and other costs (reversal)

     --       --       (639 )     --  

Other

     4,198       5,051       8,197       8,287  

Total operating expenses

     131,070       110,324       253,691       218,393  

Operating income (loss)

     4,311       (2,966 )     6,703       (9,365 )
                                 

Other expenses

                                

Interest expense, net

     833       950       1,651       1,953  

Other, net

     113       128       233       226  

Total other expenses, net

     946       1,078       1,884       2,179  

Income (loss) before income taxes

     3,365       (4,044 )     4,819       (11,544 )

Income tax expense (benefit)

     821       (1,198 )     1,240       (3,808 )
                                 

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

   $ 2,544     $ (2,846 )   $ 3,579     $ (7,736 )
                                 

Net earnings (loss) per share

                                

Average shares outstanding (basic)

     8,205       8,028       8,141       8,028  

Basic earnings (loss) per share

   $ 0.31     $ (0.35 )   $ 0.44     $ (0.96 )
                                 

Average shares outstanding (diluted)

     8,227       8,028       8,167       8,028  

Diluted earnings (loss) per share

   $ 0.31     $ (0.35 )   $ 0.44     $ (0.96 )

 

 

 
 

 

GAAP TO NON-GAAP RECONCILIATIONS

(UNAUDITED)

(dollar amounts in thousands, except per share amounts)

 

ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION  

 

    Three Months Ended  
   

6/30/2018

    

3/31/2018

    

12/31/2017

    

9/30/2017

  

Net income

   $ 2,544     $ 1,035     $ 14,822     $ 409  

Add:

                                

Depreciation and amortization

     7,477       7,180       7,150       6,790  

Income tax expense (benefit)

     821       419       (10,291 )     339  

Interest expense, net

     833       818       886       970  
                                 

EBITDA

     11,675       9,452       12,567       8,508  

Add:

                                

Non-cash equity compensation

     304       (136 )     170       137  

Severance costs in salaries, wages and employee benefits

     --       711       --       31  

Restructuring, impairment and other costs (reversal)

     --       (639 )     --       --  
                                 

Adjusted EBITDA

   $ 11,979     $ 9,388     $ 12,737     $ 8,676  

 

ADJUSTED NET INCOME (LOSS) RECONCILIATION

 

   

Three Months Ended

    

Six Months Ended

  
   

June 30,

    

June 30,

  
   

2018

    

2017

    

2018

    

2017

  

Net income (loss)

   $ 2,544     $ (2,846 )   $ 3,579     $ (7,736 )

Adjusted for:

                                

Severance costs included in salaries, wages and employee benefits

     --       --       711       --  

Restructuring, impairment and other costs (reversal)

     --       82       (639 )     899  

Income tax expense (benefit) effect of adjustments

     --       --       --       --  

Adjusted net income (loss)

   $ 2,544     $ (2,764 )   $ 3,651     $ (6,837 )

 

ADJUSTED EARNINGS (LOSS) PER DILUTED SHARE RECONCILIATION

 

   

Three Months Ended

    

Six Months Ended

  
   

June 30,

    

June 30,

  
   

2018

    

2017

    

2018

    

2017

  

Earnings (loss) per diluted share

   $ 0.31     $ (0.35 )   $ 0.44     $ (0.96 )

Adjusted for:

                                

Severance costs in salaries, wages and employee benefits

     --       --       0.09       --  

Restructuring, impairment and other costs (reversal)

     --       0.01       (0.08 )     0.11  

Income tax expense (benefit) effect of adjustments

     --       --       --       (0.04 )

Adjusted earnings (loss) per diluted share

   $ 0.31     $ (0.34 )   $ 0.45     $ (0.89 )

 

 
 

 

ADJUSTED OPERATING RATIO RECONCILIATION

(UNAUDITED)

(dollar amounts in thousands)

 

Consolidated

  

Three Months Ended

    

Six Months Ended

  
   

June 30,

    

June 30,

  
   

2018

    

2017

    

2018

    

2017

  

Operating revenue

   $ 135,381     $ 107,358     $ 260,394     $ 209,028  

Less:

                                

Fuel surcharge revenue

     16,274       11,320       31,008       23,162  

Base revenue

     119,107       96,038       229,386       185,866  

Operating expense

     131,070       110,324       253,691       218,393  

Adjusted for:

                                

Severance costs in salaries, wages and employee benefits

     --       (82 )     (711 )     (899 )

Restructuring, impairment and other costs (reversal)

     --       --       639       --  

Fuel surcharge revenue

     (16,274 )     (11,320 )     (31,008 )     (23,162 )

Adjusted operating expense

   $ 114,796     $ 98,922     $ 222,611     $ 194,332  

Operating ratio

     96.8

%

     102.8

%

     97.4

%

     104.5

%

Adjusted operating ratio

     96.4

%

     103.0

%

     97.0

%

     104.6

%

 

Trucking Segment

  

Three Months Ended

    

Six Months Ended

  
   

June 30,

    

June 30,

  
   

2018

    

2017

    

2018

    

2017

  

Revenue

   $ 85,685     $ 71,731     $ 164,531     $ 142,202  

Less: intersegment eliminations

     116       186       229       377  

Operating revenue

     85,569       71,545       164,302       141,825  

Less: fuel surcharge revenue

     12,123       8,828       23,298       18,015  

Base revenue

     73,446       62,717       141,004       123,810  

Operating expense

     83,416       76,388       162,613       153,796  

Adjusted for:

                                

Severance costs in salaries, wages and employee benefits

     --       (56 )     (484 )     (642 )

Restructuring, impairment and other costs (reversal)

     --       --       587       --  

Fuel surcharge revenue

     (12,123 )     (8,828 )     (23,298 )     (18,015 )

Adjusted operating expense

   $ 71,293     $ 67,504     $ 139,418     $ 135,139  

Operating ratio

     97.5

%

     106.8

%

     99.0

%

     108.4

%

Adjusted operating ratio

     97.1

%

     107.6

%

     98.9

%

     109.2

%

 

USAT Logistics Segment

  

Three Months Ended

    

Six Months Ended

  
   

June 30,

    

June 30,

  
   

2018

    

2017

    

2018

    

2017

  

Revenue

   $ 50,616     $ 36,878     $ 97,391     $ 69,528  

Less: intersegment eliminations

     804       1,065       1,299       2,325  

Operating revenue

     49,812       35,813       96,092       67,203  

Less: fuel surcharge revenue

     4,151       2,492       7,710       5,147  

Base revenue

     45,661       33,321       88,382       62,056  

Operating expense

     47,654       33,936       91,078       64,597  

Adjusted for:

                                

Severance costs in salaries, wages and employee benefits

     --       (26 )     (227 )     (257 )

Restructuring, impairment and other costs (reversal)

     --       --       52       --  

Fuel surcharge revenue

     (4,151 )     (2,492 )     (7,710 )     (5,147 )

Adjusted operating expense

   $ 43,503     $ 31,418     $ 83,193     $ 59,193  

Operating ratio

     95.7

%

     94.8

%

     94.8

%

     96.1

%

Adjusted operating ratio

     95.3

%

     94.3

%

     94.1

%

     95.4

%

 

 
 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in thousands, except share data)

 

   

June 30,

    

December 31,

  

Assets

  

2018

    

2017

  

Current assets:

                

Cash

   $ 29     $ 71  

Accounts receivable, net of allowance for doubtful accounts of $643 and $639, respectively

     61,150       55,138  

Other receivables

     9,497       2,787  

Inventories

     415       458  

Assets held for sale

     2,451       112  

Prepaid expenses and other current assets

     5,256       6,025  

Total current assets

     78,798       64,591  

Property and equipment:

                

Land and structures

     31,847       31,452  

Revenue equipment

     227,431       252,484  

Service, office and other equipment

     26,522       26,209  

Property and equipment, at cost

     285,800       310,145  

Accumulated depreciation and amortization

     (115,780 )     (122,329 )

Property and equipment, net

     170,020       187,816  

Other assets

     1,332       1,448  

Total assets

   $ 250,150     $ 253,855  

Liabilities and Stockholders’ Equity

                

Current liabilities:

                

Accounts payable

   $ 32,240     $ 24,332  

Current portion of insurance and claims accruals

     17,995       13,552  

Accrued expenses

     11,498       9,108  

Current maturities of capital leases

     8,014       12,929  

Insurance premium financing

     1,330       4,115  

Total current liabilities

     71,077       64,036  

Deferred gain

     1,488       480  

Long-term debt

     54,950       61,225  

Capital leases, less current maturities

     25,994       29,216  

Deferred income taxes

     18,274       21,136  

Insurance and claims accruals, less current portion

     8,242       11,274  

Total liabilities

     180,025       187,367  

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 12,015,174 shares, and 12,142,391 shares, respectively

     120       121  

Additional paid-in capital

     65,738       68,667  

Retained earnings

     69,039       65,460  

Less treasury stock, at cost (3,702,444 shares, and 3,853,064 shares, respectively)

     (64,772 )     (67,760 )

Total stockholders’ equity

     70,125       66,488  

Total liabilities and stockholders’ equity

   $ 250,150     $ 253,855  

 

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