Date: Thu, 20 Nov 1997 16:33:57 GMT Server: Apache/1.2b7 PHP/FI-2.0b12 Connection: close Content-Type: text/html Last-Modified: Fri, 17 Oct 1997 14:49:42 GMT ETag: "4911b-3d59-34477b06" Content-Length: 15705 Accept-Ranges: bytes
VAN BUREN, AR JANUARY 29, 1996
USA Truck, Inc. (NASDAQ NMS: USAK) announced today that operating revenues for the quarter ended December 31, 1996, were $28,354,814, up 11.5% from $25,425,380 for the same quarter of 1995. Revenues were the highest for any single quarter in the Company’s history. Net income decreased 32.0% to $740,254 for the fourth quarter of 1996, compared to $1,088,797 for the fourth quarter of 1995, a decrease of 27.3% in net income per share to $.08 from $.11. The Company also announced record operating revenues for the year ended December 31, 1996, of $108,312,633 up 5.8%, from $102,400,353 for the year ended December 31, 1995. Net income decreased 44.0% to $3,382,178 for the year ended December 31, 1996, compared to $6,037,408 for the year ended December 31, 1995, a decrease of 41.7% in net income per share to $.35 from $.60.
The following table summarizes USA Truck's earnings information:
Quarter Ended
December 31, |
Nine Months Ended December 31, |
||||
---|---|---|---|---|---|
1996 |
1995 |
1996 |
1995 |
||
Operating revenues |
$ 28,354,814 |
$25,425,380 |
$ 108,312,633 |
$ 102,400,353 |
|
Operating expenses and costs: | |||||
Salaries, wages and employee benefits | 11,568,761 | 10,226,530 |
45,122,323 |
42,859,567 |
|
Operations and maintenance | 8,375,688 |
6,810,706 |
31,064,184 |
26,908,540 |
|
Operating taxes and licenses | 513,381 | 442,780 |
1,963,888 |
1,822,295 |
|
Insurance and claims | 2,048,262 | 1,976,616 |
6,422,064 |
5,146,409 |
|
Communications and utilities | 403,307 | 373,340 |
1,612,030 |
1,284,957 |
|
Depreciation and amortization | 2,939,172 | 2,864,811 |
11,839,187 |
11,144,969 |
|
Other | 1,149,807 | 808,336 |
4,037,197 |
2,794,443 |
|
Total operating expenses and cost | 26,998,378 | 23,503,119 |
102,060,873 |
91,961,180 |
|
Operating income | 1,356,436 | 1,922,261 |
6,251,760 |
10,439,173 |
|
Other expenses, net | 150,235 | 156,167 |
716,280 |
646,134 |
|
Income before income taxes | 1,206,201 | 1,766,094 |
5,535,480 |
9,793,039 |
|
Income taxes | 465,947 | 677,297 |
2,153,302 |
3,755,631 |
|
Net income | $ 740,254 | $ 1,088,797 |
$ 3,382,178 |
$ 6,037,408 |
|
Earnings per share | $.08 | $.11 |
$.35 |
$.60 |
|
Average shares outstanding | 9,510,172 | 9,912,660 |
9,626,127 |
10,030,312 |
|
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Key Operating Statistics: |
Quarter Ended December 31, |
Nine Months Ended December 31, |
|||
1996 |
1995 |
1996 |
1995 |
||
Total miles (Loaded & Empty) | 25,489,270 | 22,782,849 |
97,691,626 |
92,174,623 |
|
Empty mile factor | 9.85% | 10.64% |
10.16% |
10.69% |
|
Revenue per mile | $ 1.112 | $ 1.116 |
$ 1.109 |
$ 1.111 |
|
Average number of tractors | 827 | 794 |
802 |
771 |
|
Miles per tractor | 30,821 | 28,694 |
121,810 |
119,552 |
|
Average miles per tractor per week | 2,486 | 2,352 |
2,407 |
2,382 |
|
Miles per trip | 910 | 879 |
878 |
900 |
|
Number of shipments | 25,238 | 23,161 |
99,979 |
91,460 |
|
Operating ratio | 95.2% | 92.4% |
94.2% |
89.8% |
|
In comparing the financial results of the quarter ended December 31, 1996 to the quarter ended December 31, 1995, Robert M. Powell, President and CEO of the Company, said “Our average miles per week is the highest utilization rate we have seen since the first quarter of 1995. Correspondingly, driver retention improved significantly in the fourth quarter of 1996, the best it has been since the fourth quarter of 1994. Over-capacity in certain lanes continues to be a concern, but overall the capacity issue is improving. We are very pleased to report that we achieved an all-time high for revenues, while holding revenue per mile at approximately $1.11 per mile and improving our empty mile ratio to 9.85% of total miles, down from 10.64% in the prior year.” Operationally, the above shows favorable trends in the fourth quarter. However, diesel fuel costs and accident costs continued to overshadow the improvements in operations. Diesel fuel cost, was approximately $.17 per gallon higher in the fourth quarter compared to the same quarter of last year. Although driver retention improved in the fourth quarter of 1996, significantly lower average retention rates for the six previous quarters contributed heavily to the year-to-year increase in insurance and claims. We are concentrating on keeping driver retention at the fourth quarter 1996 rate or better and have several programs in place designed to make that happen. USA Truck believes that the quality of its equipment, systems and procedures, and physical facilities should enable us to capitalize on the improvement that appears to be beginning in the truckload dry-van marketplace.
This press release contains forward-looking statements and information that are based on management’s belief as well as assumptions made by and information currently available to management. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will be realized. Should one or more of the risks or uncertainties underlying such expectations materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. Among the key factors that are not within the Company’s control and that may have a direct bearing on operating results are further increases in diesel prices, adverse weather conditions and the impact of increased rate competition or competition for qualified drivers. The Company’s results may also be significantly affected by fluctuations in general economic conditions, as the Company’s utilization rates are directly related to business levels of shippers in a variety of industries. Results for any specific quarter could also be affected by various unforeseen events, such as unusual levels of equipment failure or accident claims. USA Truck is a medium haul, common and contract carrier specializing in truckload quantities of general commodities. The Company operates in the 48 contiguous United States and in the Canadian provinces of Ontario and Quebec.
Contact: JERRY D. ORLER, Chief Financial Officer - (501) 471-2657