Date: Thu, 20 Nov 1997 16:33:48 GMT Server: Apache/1.2b7 PHP/FI-2.0b12 Connection: close Content-Type: text/html Last-Modified: Fri, 17 Oct 1997 14:49:26 GMT ETag: "49121-2bd3-34477af6" Content-Length: 11219 Accept-Ranges: bytes
VAN BUREN, AR APRIL 16, 1997
USA Truck, Inc. (NASDAQ NMS: USAK) announced today that operating revenues for the quarter ended March 31, 1997, were $30,660,109, up 18.3% from $25,914,002 for the same quarter of 1996. Revenues were the highest for any quarter in the Company’s history. Net income increased 69.0% to $1,281,602 for the first quarter of 1997, compared to $758,248 for the first quarter of 1996, an increase of 75.0% in net income per share to $.14 from $.08.
The following table summarizes USA Truck’s earnings information:
Quarter Ended
March 31, |
|||||
---|---|---|---|---|---|
1997 |
1996 |
||||
Operating revenues |
$ 30,660,109 |
$ 25,914,002 |
|||
Operating expenses and costs: | |||||
Salaries, wages and employee benefits | 12,939,400 |
10,889,200 |
|||
Operations and maintenance | 8,834,909 |
7,429,149 |
|||
Operating taxes and licenses | 553,949 |
474,560 |
|||
Insurance and claims | 1,411,163 |
1,406,394 |
|||
Communications and utilities | 414,106 |
353,457 |
|||
Depreciation and amortization | 3,164,381 |
2,924,705 |
|||
Other | 1,020,821 |
996,273 |
|||
Total operating expenses and cost | 28,338,729 |
24,443,738 |
|||
Operating income | 2,321,380 |
1,470,264 |
|||
Other expenses, net | 223,831 |
228,906 |
|||
Income before income taxes | 2,097,549 |
1,241,358 |
|||
Income taxes | 815,947 |
483,110 |
|||
Net income | $ 1,281,602 |
$ 758,248 |
|||
Earnings per share | $.14 |
$.08 |
|||
Average shares outstanding | 9,419,045 |
9,723,537 |
|||
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Key Operating Statistics: |
Quarter Ended March 31, |
||||
1997 |
1996 |
||||
Total miles (Loaded & Empty) | 27,636,414 |
23,419,487 |
|||
Empty mile factor | 9.91% |
10.56% |
|||
Revenue per mile | $ 1.109 |
$ 1.107 |
|||
Average number of tractors | 872 |
781 |
|||
Miles per tractor | 31,693 |
29,987 |
|||
Average miles per tractor per week | 2,556 |
2,343 |
|||
Miles per trip | 909 |
853 |
|||
Number of shipments | 27,401 |
24,553 |
|||
Operating ratio | 92.4% |
94.3% |
|||
In comparing the financial results of the quarter ended March 31, 1997 to the quarter ended March 31, 1996, Robert M. Powell, President and CEO of the Company, said “It is no secret, in the truckload business, that running tractors an average of 2,500 miles per week enhances your operating ratio. During the first quarter of 1997, utilization of tractors at USA Truck increased 9.1 percent from the same period last year. The average number of tractors operated also increased, by 11.7 percent. These increases in ‘fire power,’ together with improvements in certain expense categories, allowed us to set a record for revenues and see a significant improvement in net income over the prior year.”
The improvement in expenses was due primarily to decreases in insurance and claims costs and depreciation and amortization, as a percentage of revenues, compared to the first quarter of last year. These improvements resulted in part from a consorted effort by management over the past year to control operating and fixed costs.
One of the most noteworthy developments in the first quarter was the improvement in driver retention. As utilization has improved during this quarter, we have experienced a 35.7 percent improvement in the driver retention factor when compared to the first quarter of 1996. Improvements in driver retention generally have a positive impact on several expense items, including insurance and claims costs.
Diesel prices have also declined in recent periods, after an extended period of steep increases. Although average fuel costs for the quarter were 8.8 percent higher than in the first quarter of last year, overall operations and maintenance costs, as a percentage of revenues, were relatively unchanged. Diesel prices have declined further since the end of the first quarter of this year, and if this decline continues it will have a favorable impact on earnings in future periods.
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