USA Truck Reports Second Quarter 2019 Results
•2Q 2019 earnings per diluted share of $0.00 versus 2Q 2018 earnings per diluted share of $0.31
•2Q 2019 adjusted earnings per diluted share(a) of) $0.03 when adjusted for acquisition related intangible amortization versus 2Q 2018 adjusted earning per diluted share(a) of $0.31
•Recorded $0.6 million, or $0.05 per diluted share, net of tax, in charges related to the impairment of assets held for sale, the Arkansas flood, and accelerated compensation expense
•2Q 2019 trucking operating revenue increased 12.6% to $96.5 million from $85.7 million in 2Q 2018
Van Buren, AR – July 25, 2019 – USA Truck Inc. (NASDAQ: USAK), a leading capacity solutions provider, today announced its financial results for the three and six months ended June 30, 2019.
For the quarter ended June 30, 2019, consolidated operating revenue was $133.6 million compared to $135.4 million for the prior-year period. Base revenue, which excludes fuel surcharge revenue, was $116.7 million compared to $119.1 million for the 2018 period. The Company reported net income of $0.00 million, or $0.00 per diluted share for the second quarter 2019 and adjusted net income(a) of $0.3 million, or $0.03 per diluted share, compared to net income and adjusted net income(a) of $2.5 million, or $0.31 per diluted share for the same quarter in 2018. The Company's second quarter 2019 consolidated operating ratio was 98.5%, compared to 96.8% in the comparable 2018 quarter. Additionally, the Company recorded expenses of $0.6 million, or $0.05 per diluted share, net of tax, during the second quarter of 2019 related to the impairment of certain tractors held in assets held for sale, the Arkansas flood, and accelerated vesting of our former chairman's restricted stock and retainer.
President and CEO James Reed commented, "The second quarter of 2019 was a challenge due to the softer freight environment, declining spot rates and unrealized bid awards. These factors combined to put pressure on our performance. We elected to procure additional freight volumes from the spot market in the trucking business to mitigate unrealized customer freight tenders. Despite increased spot market participation, we were able to maintain the gains made in past quarters in our base revenue per loaded mile, and further improved our deadhead percentage both year over year and sequentially. Declining spot rates experienced during the quarter also put pressure on USAT Logistics' volumes and compressed average revenue per load in that business.
Our competitive response was to implement the following initiatives that, we believe, will improve our operational and financial results as we move into the second half of 2019:
•Hiring additional sales personnel in the USAT Logistics segment to increase volume;
•Continuing the company-wide campaign to reduce fixed costs by 5-10%;
•Targeting customer campaigns to improve actualization of bid awards received; and
•Expanding the terminal footprint and decreasing dependence on outside repairs in high volume locations, while offering amenities to our drivers in those locations.
The following information was filed by Usa Truck Inc (USAK) on Thursday, July 25, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.