Smithway Motor Xpress Corp. (Form: 8-K)

Press Contact: Douglas C. Sandvig
Senior Vice President,
Treasurer and Chief Financial Officer
Smithway Motor Xpress Corp.
(515) 576-7418

FORT DODGE, IOWA (PR Newswire) February 14, 2005—Smithway Motor Xpress Corp. (Nasdaq SmallCap Market: SMXC) announced today financial and operating results for the fourth quarter and year ended December 31, 2004.

For the fourth quarter of 2004, operating revenue increased approximately 23% to $50.1 million from $40.7 million for the corresponding quarter in 2003. Operating revenue, excluding fuel surcharge revenue of $5.3 million, increased approximately 14% to $44.8 million from $39.4 million for the corresponding quarter in 2003. Net earnings were $387,000, or $0.08 per basic and diluted share, compared with net loss of $268,000, or $0.06 per basic and diluted share, for the same quarter in 2003.

For the year, operating revenue increased approximately 14% to $189.0 million from $165.3 million in 2003. Operating revenue, excluding fuel surcharge revenue of $13.4 million, increased approximately 10% to $175.6 million from $159.5 million in 2003. Net earnings were $2.2 million, or $0.46 per basic share and $0.45 per diluted share, compared with net loss of $2.6 million, or $0.53 per basic and diluted share, for 2003.

Net earnings for 2004 include $727,000, or $0.15 per basic and diluted share, of tax-free life insurance proceeds received during the first quarter. Without the life insurance proceeds, net earnings for the year would have been $1.5 million, or $0.31 per basic and diluted share, compared with net loss of $2.6 million, or $0.53 per basic and diluted share, for 2003.

G. Larry Owens, President and Chief Executive Officer, commented, “Smithway’s results for the fourth quarter 2004 mark our fourth consecutive profitable quarter and first profitable year since 1999. For the quarter, average revenue per seated tractor per week increased by $194, or 8%, compared to the fourth quarter of 2003 as freight demand remains strong. During the quarter we experienced a ten cent increase in revenue per loaded mile, increased revenue miles per tractor, and decreased deadhead.

Higher truck production and freight rates have allowed us to absorb a two cent per mile driver pay increase and unusually high fuel prices. For the first time since 2001 we ended the year with a larger fleet compared to the previous year. We continue to increase freight rates, which will allow us to increase driver wages by another one cent per mile effective March 1, 2005. Almost all of our trucks are seated at this time but we understand that further driver pay increases are necessary to enable us to attract and retain safe, experienced, professional drivers. We continue to modernize our tractor and trailer fleet and plan to purchase 200 replacement tractors and 280 replacement trailers in 2005.

We are pleased with these financial results and look forward to further improvement in 2005 through modest fleet growth and continued improvement in our operating ratio.”

Smithway is a truckload carrier that hauls diversified freight nationwide, concentrating primarily on the flatbed segment of the truckload market. Its Class A Common Stock is traded on the Nasdaq SmallCap Market under the symbol “SMXC.”

This press release and statements made by the Company in its stockholder reports and public filings, as well as oral public statements by Company representatives, may contain certain forward-looking information, usually identified by words such as “anticipates,” “believes,” “estimates,” “projects,” “expects,” or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in forward-looking statements. The following factors, among others, could cause actual results to differ materially from those in forward-looking statements: failure to sustain the recent return to quarterly operating profitability, which could result in violation of bank covenants and acceleration of indebtedness at several financial institutions; the ability to obtain financing on acceptable terms, and obtain waivers and amendments to current financing in the event of default; economic recessions or downturns in customers’ business cycles; excessive increases in capacity within truckload markets; surplus inventories; decreased demand for transportation services offered by the Company; increases or rapid fluctuations in inflation, interest rates, fuel prices, and fuel hedging; the availability and costs of attracting and retaining qualified drivers and owner-operators; increases in insurance premiums and deductible amounts, or changes in excess coverage, relating to accident, cargo, workers’ compensation, health, and other claims; the resale value of used equipment and prices of new equipment; seasonal factors such as harsh weather conditions that increase operating costs; regulatory requirements that increase costs and decrease efficiency, including emissions standards and hours-of-service regulations; changes in management; and the ability to negotiate, consummate, and integrate acquisitions. Readers should review and consider the various disclosures made by the Company in this press release, stockholder reports, and in its Forms 10-K, 10-Q, and other public filings. The Company disclaims any such obligation to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise.

SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share and per share data and operating statistics)


	Three months ended						Year ended
	December 31,						December 31,
	(unaudited)						(unaudited)
	2003			2004			2003			2004
Operating revenue:
Freight	$	40,592		$	49,852		$	164,648		$	188,190
Other		149			212			681			811

Operating revenue		40,741			50,064			165,329			189,001
Operating expenses:
Purchased transportation		13,006			16,254			55,596			61,638
Compensation and employee benefits		12,694			14,196			51,506			54,468
Fuel, supplies, and maintenance		7,506			11,075			29,857			38,427
Insurance and claims		1,125			1,683			4,393			5,636
Taxes and licenses		871			875			3,444			3,653
General and administrative		1,853			1,781			6,934			6,929
Communications and utilities		333			312			1,463			1,274
Depreciation and amortization		3,281			2,645			14,239			12,340

Total operating expenses		40,669			48,821			167,432			184,365

(Loss) earnings from operations		72			1,243			(2,103	)		4,636
Other (expense) income:
Interest expense		(392	)		(422	)		(1,781	)		(1,563	)
Interest income		1			28			26			54
Life Insurance Proceeds		—			—			—			727

(Loss) earnings before income taxes		(319	)		849			(3,858	)		3,854
Income tax (benefit) expense		(51	)		462			(1,269	)		1,613

Net (loss) earnings	$	(268	)	$	387		$	(2,589	)	$	2,241

Basic (loss) earnings per share	$	(0.06	)	$	0.08		$	(0.53	)	$	0.46

Diluted (loss) earnings per share	$	(0.06	)	$	0.08		$	(0.53	)	$	0.45

Basic weighted average common shares outstanding		4,846,821			4,860,841			4,846,821			4,850,935
Diluted weighted average common shares outstanding		4,846,821			4,986,329			4,846,821			4,951,934


	2003				2004				2003				2004
Operating ratio		99.8	%			97.5	%			101.3	%			97.5	%
Average operating revenue per	$	2,642			$	3,159			$	2,577			$	3,065
tractor per week
Average revenue per tractor per week	$	2,434		*	$	2,679		*	$	2,367		*	$	2,712		*
Average revenue per seated tractor	$	2,548		*	$	2,742		*	$	2,484		*	$	2,797		*
per week
Average length of haul in miles		677				650				659				658
Average revenue per loaded mile	$	1.40		*	$	1.50		*	$	1.37		*	$	1.46		*
Ending company tractors		750				757				750				757
Ending owner/operators tractors		430				445				430				445
Ending trailers		2,278				2,101				2,278				2,101
Weighted average tractors		1,186				1,219				1,234				1,186

SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)


	December 31,		December 31,
	2003		2004
ASSETS
Current assets:
Cash and cash equivalents	$	355	$	5,054
Receivables, net		14,697		16,776
Inventories		882		948
Prepaid expenses and other		4,304		4,142

Total current assets		20,238		26,920
Property and equipment		124,634		117,048
Less accumulated depreciation		70,235		67,772

Net property and equipment		54,399		49,276
Other assets		2,043		2,080

Total assets	$	76,680	$	78,276

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current debt	$	10,582	$	9,301
Accounts payable and accrued expenses		13,438		15,256

Total current liabilities		24,020		24,557
Long-term debt		23,035		20,008
Deferred income taxes		9,020		10,702

Total liabilities		56,075		55,267
Stockholders' equity		20,605		23,009

Total liabilities and stockholders’ equity	$	76,680	$	78,276


Nevada	000-20793	42-1433844
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)

2031 Quail Avenue, Fort Dodge, Iowa		50501
_________________________________ (Address of principal executive offices)		___________ (Zip Code)


	Smithway Motor Xpress Corp.

February 11, 2005	By:	Douglas C. Sandvig

		Name: Douglas C. Sandvig
		Title: Senior Vice President, Chief Financial Officer and Treasurer


Exhibit No.		Description

99		Press Release dated February 14, 2005


Date of Report (Date of Earliest Event Reported):		February 14, 2005


Registrant’s telephone number, including area code:		(515) 576-7418