Exhibit 99
 
U.S. Xpress Enterprises, Inc. Reports Second Quarter 2018 Results

U.S. Xpress Enterprises, Inc. (the “Company”) today announced results for the second quarter of 2018.

Second Quarter 2018 Highlights
·
Total Operating Revenue of $449.8 million, an increase of 21.4% compared to second quarter 2017
·
Operating Income of $20.0 million compared to $2.7 million in the second quarter 2017
·
Adjusted Operating Income, a non-GAAP measure, of $26.5 million compared to $5.1 million in the second quarter of 2017
·
Operating ratio of 95.5%, a 380 basis point improvement compared to second quarter 2017
·
Adjusted Operating Ratio, a non-GAAP measure, of 93.4%, a 510 basis point improvement compared to second quarter 2017
·
IPO proceeds net of fees and expenses used to reduce net debt by approximately $236.2 million
 
Second Quarter Financial Performance
 
   
Three Months Ended June 30,
   
Six Months Ended June 30,
 
   
2018
   
2017
   
2018
   
2017
 
Total Revenue
 
$
449,758
   
$
370,350
   
$
875,466
   
$
734,026
 
Revenue, excluding fuel surcharge
 
$
402,808
   
$
338,463
   
$
785,666
   
$
670,305
 
Operating Income
 
$
20,018
   
$
2,689
   
$
34,872
   
$
4,617
 
Adjusted Operating Income1
   
26,455
     
5,050
     
41,309
     
6,978
 
Operating Ratio
   
95.5
%
   
99.3
%
   
96.0
%
   
99.4
%
Adjusted Operating Ratio1
   
93.4
%
   
98.5
%
   
94.7
%
   
99.0
%
Net Income (Loss) attributable to controlling interest
 
$
615
   
$
(8,452
)
 
$
1,774
   
$
(12,884
)
Adjusted Net Income (Loss) attributable to controlling interest1
 
$
11,285
   
$
(6,977
)
 
$
12,444
   
$
(11,409
)
1 See GAAP to non-GAAP reconciliation in the schedules following this release
               
 
Eric Fuller, President and CEO, commented, “Over the last three years we have implemented a complete overhaul of the Company’s strategy and operations that we expect will improve execution and profitability. To achieve our goal, we changed the Company’s culture and recruited the expertise necessary to drive our transformation. We also implemented several strategic initiatives focused on improving driver retention, increasing our asset utilization, creating synergies for our customers within our different service offerings and driving a culture of cost management. The early success of our initiatives can clearly be seen in our second quarter results where we delivered our best Adjusted Operating Ratio since 1998. That said, we are not satisfied with our results and believe we can improve as we continue to execute our strategy designed to deliver an operating ratio in line with our peer group.”

“Another sign of our successful execution was our initial public offering where our shares began trading on the NYSE on June 14th.  Our IPO was the culmination of years of hard work by our employees combined with the strong partnership and support of our customers and partners. Our offering is an important step in the transformation and growth of U.S. Xpress and I am excited with the many opportunities that lie ahead,” concluded Mr. Fuller.

Enterprise Update
Total revenue for the second quarter of 2018 increased by $79.4 million to $449.8 million as compared to the second quarter of 2017.  The increase was primarily a result of an 11.4% increase in the Company’s average revenue per loaded mile (excluding fuel surcharge revenue), a 56.2% increase in brokerage revenue to $58.4 million, and a $15.1 million increase in fuel surcharge revenue.  Excluding the impact of fuel surcharges, second quarter revenue increased $64.3 million to $402.8 million, an increase of 19.0% as compared to the prior year quarter.

Operating income for the second quarter of 2018 was $20.0 million which compares favorably to the $2.7 million achieved in the second quarter of 2017. Excluding one-time costs related to the Company’s IPO transaction completed in June of 2018, second quarter Adjusted Operating Income was $26.5 million.  The second quarter 2018 Adjusted Operating Ratio was 93.4%, representing a 510 basis point improvement as compared to the second quarter of 2017. The Adjusted Operating Ratio of 93.4% for the second quarter is the Company’s lowest operating ratio in 20 years.
 
Truckload Segment
 
   
Three Months Ended June 30,
   
Six Months Ended June 30,
 
   
2018
   
2017
   
2018
   
2017
 
Over the road
                       
  Average revenue per tractor per week1
 
$
3,957
   
$
3,302
   
$
3,890
   
$
3,306
 
  Average revenue per mile1
 
$
2.023
   
$
1.785
   
$
1.997
   
$
1.774
 
  Average revenue miles per tractor per week
   
1,956
     
1,849
     
1,952
     
1,863
 
  Average tractors
   
3,578
     
3,837
     
3,605
     
3,835
 
Dedicated
                               
  Average revenue per tractor per week1
 
$
3,647
   
$
3,735
   
$
3,598
   
$
3,649
 
  Average revenue per mile1
 
$
2.234
   
$
2.064
   
$
2.209
   
$
2.076
 
  Average revenue miles per tractor per week
   
1,632
     
1,810
     
1,629
     
1,757
 
  Average tractors
   
2,721
     
2,353
     
2,672
     
2,369
 
Consolidated
                               
  Average revenue per tractor per week1
 
$
3,823
   
$
3,467
   
$
3,771
   
$
3,437
 
  Average revenue per mile1
 
$
2.105
   
$
1.890
   
$
2.078
   
$
1.885
 
  Average revenue miles per tractor per week
   
1,816
     
1,834
     
1,814
     
1,823
 
  Average tractors
   
6,299
     
6,190
     
6,277
     
6,204
 
                                 
1 Excluding fuel surcharge revenues
                               
 
The above table excludes revenue, miles and tractors for services performed in Mexico.
 
2

Mr. Fuller said, “Overall, we remain optimistic as we continue to execute our strategy and market conditions remain strong. Of note, we experienced improving rates and volumes through the second quarter and expect no catalyst over the near term that would negatively impact current trends. That said, we continue to see an erosion of professional driver availability. As a result, we are continuing to focus on our driver centric initiatives to both retain the professional drivers who have chosen to partner with us and to attract new professional drivers to our team. We believe this focus allowed us to offset the difficult conditions, which have created a significant professional driver supply challenge for the broader industry as we slightly increased our tractor count during the second quarter of 2018 through an 11% reduction in our driver turnover percentage.  The environment in the third quarter of 2018 remains strong from a rate and volume perspective and we are currently anticipating rates to further increase on a sequential basis as we continue to implement contract rate increases in both our over the road and dedicated divisions.”

The Truckload segment achieved an Adjusted Operating Ratio of 92.7% for the second quarter of 2018, a 540 basis point improvement as compared to the Adjusted Operating Ratio of 98.1% achieved in the second quarter of 2017.  The improvement was due to the continued successful implementation of the Company’s strategic initiatives as well as broader market conditions.

In the over the road division, average revenue per tractor per week increased 19.8% in the second quarter of 2018, as compared to the second quarter of 2017. The increase was primarily the result of a 13.3% increase in the division’s average revenue per loaded mile (excluding fuel surcharge revenue) and a 5.8% increase in the division’s revenue miles per tractor per week. Generally, during a challenging driver market with increased demand, utilization will decline because a greater percentage of tractors are in transition onboarding new professional drivers as compared to being productive and because increased freight selectivity slows down overall velocity.

Despite the challenging market for drivers, utilization increased through the successful execution of numerous operational initiatives gaining traction through the quarter.  This strong utilization was impacted by the over the road division’s support of dedicated accounts during the quarter, which negatively impacted over the road utilization by approximately 150 basis points.  While supporting the dedicated accounts with the Company’s over the road fleet negatively affected our utilization in the second quarter, management believes that when these accounts are operationally established, U.S. Xpress will be able to recognize this increase in over the road utilization.

The dedicated division’s average revenue per tractor per week (excluding fuel surcharge revenue) decreased 2.4% in the second quarter of 2018 as compared to the second quarter of 2017. The decrease was primarily a result of a 9.8% decrease in the division’s revenue miles per tractor per week partially offset by a 8.2% increase in the division’s average revenue per loaded mile (excluding fuel surcharge revenue). The reduction in our utilization was primarily the result of certain accounts’ shipping patterns that performed differently than expected which affected utilization, driver hiring, and retention, and due in part to mix changes in the portfolio. As a result of negotiations related to these accounts that were underperforming from a utilization standpoint, rate increases have been implemented that were effective as of the end of July 2018. Overall, tractor count in the Company’s dedicated division has increased by 15.6% in the second quarter of 2018 as compared to the same period in the prior year and 3.7% sequentially as compared to the first quarter of 2018.
 
3

Brokerage Segment
 
   
Three Months Ended June 30,
   
Six Months Ended June 30,
 
   
2018
   
2017
   
2018
   
2017
 
Brokerage revenue
   
58,361
     
37,368
     
112,902
     
75,150
 
Gross margin %
   
12.2
%
   
10.9
%
   
13.1
%
   
12.3
%
Load Count
   
42,135
     
34,700
     
81,385
     
68,173
 
 
 
Brokerage segment revenues increased 56.2% to $58.4 million in the second quarter of 2018 as compared to $37.4 million in the second quarter of 2017.  The increase was primarily the result of a 21.4% increase in load count and higher revenue on a per load basis, and due in part to higher fuel prices. Brokerage gross margins expanded 130 basis points to 12.2% in the second quarter of 2018 as compared to 10.9% in the second quarter of 2017.

The brokerage segment continues to provide additional selectivity for the Company’s assets to optimize yield while at the same time offering more capacity solutions to our customers.

Liquidity and Capital Resources
As of June 30, 2018, U.S. Xpress had $122.6 million of cash and availability under our revolving credit facility, $385.8 million of net debt and $213.6 million of total stockholders' equity. IPO proceeds net of fees and expenses were used to reduce net debt by approximately $236.2 million during the quarter. U.S. Xpress is committed to continuing its efforts to strengthen its balance sheet and reducing the Company’s leverage ratio which we believe will further position the Company for future opportunities as they arise.  As a result of the significant decrease in debt combined with the new capital structure put in place in conjunction with the IPO, consolidated interest expense in the third quarter of 2018 is expected to approximate $5.0 million as compared to $12.9 million in the third quarter of 2017.

Capital expenditures, net of proceeds, were $28.8 million in the current year quarter and $47.5 million year to date. For 2018, U.S. Xpress expects net capital expenditures will be between $170.0 and $190.0 million. Note, that for 2018 total net capital expenditures are higher than the Company’s normalized annualized replacement requirements. This is primarily a result of the mix of this year’s equipment replacements that will be 100% purchased with none planned for off-balance sheet leases. This ratio results in a higher net capital expenditures number for 2018 than if the Company’s fleet had rotated based on the overall fleet financing profile of approximately two thirds owned and one third leased.

Conference Call
As previously announced, the Company will hold a conference call to discuss its second quarter results at 5:00 p.m. (Eastern Time) on August 2nd, 2018.  The conference call can be accessed live over the by phone dialing 1-877-876-9176 or, for international callers, 1-785-424-1667 and requesting to be joined to the U.S. Xpress Second Quarter Earnings Conference Call.  A replay will be available starting at 8:00 p.m. (Eastern Time) on August 2nd, 2018 and can be accessed by dialing 1-844-512-2921 or, for international callers, 1-412-317-6671.  The passcode for the replay is 130463.  The replay will be available until 11:59 p.m. (Eastern Time) on August 9th, 2018.
 
4

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of the Company’s website at investor.usxpress.com.  The online replay will remain available for a limited time beginning immediately following the call. Supplementary information for the conference call also will be available on this website.

Non-GAAP Financial Measures
In addition to our net income determined in accordance with U.S. generally accepted accounting principles (‘‘GAAP’’), we evaluate operating performance using certain non-GAAP measures, including Adjusted Operating Ratio, Adjusted Operating Expenses, Adjusted Operating Income (on both a consolidated and segment basis), and Adjusted Net Income. Management believes the use of non-GAAP measures assists investors and securities analysts in understanding the ongoing operating performance of our business by allowing more effective comparison between periods. The non-GAAP information provided is used by our management and may not be comparable to similarly titled measures disclosed by other companies. The non-GAAP measures used herein have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Management compensates for these limitations by relying primarily on GAAP results and using non-GAAP financial measures on a supplemental basis.

About U.S. Xpress Enterprises
Founded in 1985, U.S. Xpress Enterprises, Inc. is the nation’s fifth largest asset-based truckload carrier by revenue, providing services primarily throughout the United States. We offer customers a broad portfolio of services using our own truckload fleet and thirdparty carriers through our nonassetbased truck brokerage network. Our modern fleet of tractors is backed up by a team of committed professionals whose focus lies squarely on meeting the needs of our customers and our drivers.

Forward-Looking Statements
This press release contains certain statements that may be considered 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, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as "expects," "estimates," "projects," "believes," "anticipates," "plans," "intends," “outlook,” “strategy,” “focus,” “continue,” “will,” “could,” “should,” “may,” and similar terms and phrases. In this press release, such statements may include, but are not limited to, statements concerning: any projections of earnings, revenues, cash flows, capital expenditures, or other financial items; any statement of plans, strategies, or objectives for future operations; any statements regarding future economic or industry conditions or performance; and any statements of belief and any statements of assumptions underlying any of the foregoing. 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. The following factors, among others, could cause actual results to differ materially from those in the forward-looking statements: general economic conditions, including inflation and consumer spending; political conditions and regulations, including future changes thereto; changes in tax laws or in their interpretations and changes in tax rates; future insurance and claims experience, including adverse changes in claims experience and loss development factors, or additional changes in management's estimates of liability based upon such experience and development factors that cause our expectations of insurance and claims expense to be inaccurate or otherwise impacts our results; impact of pending or future legal proceedings; future market for used revenue equipment and real estate; future revenue equipment prices; future capital expenditures, including equipment purchasing and leasing plans and equipment turnover (including expected trade-ins); expected fleet age; future depreciation and amortization; changes in management’s estimates of the need for new tractors and trailers; future ability to generate sufficient cash from operations and obtain financing on favorable terms to meet our significant ongoing capital requirements; our ability to maintain compliance with the provisions of our credit agreement; expected freight environment, including freight demand, rates, capacity, and volumes; future asset utilization; loss of one or more of our major customers; our ability to renew dedicated service offering contracts on the terms and schedule we expect; surplus inventories, recessionary economic cycles, and downturns in customers' business cycles; strikes, work slowdowns, or work stoppages at the Company, customers, ports, or other shipping related facilities; increases or rapid fluctuations in fuel prices, as well as fluctuations in surcharge collection, including, but not limited to, changes in customer fuel surcharge policies and increases in fuel surcharge bases by customers; interest rates, fuel taxes, tolls, and license and registration fees; increases in compensation for and difficulty in attracting and retaining qualified professional drivers and independent contractors; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, and intermodal competitors; regulatory requirements that increase costs, decrease efficiency, or reduce the availability of drivers, including revised hours-of-service requirements for drivers and the Federal Motor Carrier Safety Administration’s Compliance, Safety, Accountability program that implemented new driver standards and modified the methodology for determining a carrier’s Department of Transportation safety rating; future safety performance; our ability to reduce, or control increases in, operating costs; future third-party service provider relationships and availability; execution of the Company’s current business strategy or changes in the Company’s business strategy; the ability of the Company’s infrastructure to support future organic or inorganic growth; our ability to identify acceptable acquisition candidates, consummate acquisitions, and integrate acquired operations; and our ability to adapt to changing market conditions and technologies. Readers should review and consider these factors along with the various disclosures by the Company in its press releases, stockholder reports, and filings with the Securities and Exchange Commission. 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.
 
Contact:
Brian Baubach
Sr. Vice President Corporate Finance and Investor Relations
investors@usxpress.com
 
Source: U.S. Xpress Enterprises, Inc.
5

 
Condensed Consolidated Income Statements (unaudited)
                   
   
Three Months Ended June 30,
   
Six Months Ended June 30,
 
(in thousands, except per share data)
 
2018
   
2017
   
2018
   
2017
 
Operating Revenue:
                       
Revenue, excluding fuel surcharge
 
$
402,808
   
$
338,463
   
$
785,666
   
$
670,305
 
Fuel surcharge
   
46,950
     
31,887
     
89,800
     
63,721
 
Total operating revenue
   
449,758
     
370,350
     
875,466
     
734,026
 
Operating Expenses:
                               
Salaries, wages and benefits
   
139,701
     
135,214
     
272,625
     
265,465
 
Fuel and fuel taxes
   
57,704
     
51,712
     
116,093
     
102,180
 
Vehicle rents
   
19,393
     
14,773
     
39,415
     
40,168
 
Depreciation and amortization, net of (gain) loss
   
24,149
     
26,510
     
48,855
     
45,758
 
Purchased transportation
   
118,681
     
68,828
     
220,457
     
137,853
 
Operating expense and supplies
   
29,073
     
33,167
     
58,864
     
64,539
 
Insurance premiums and claims
   
19,165
     
17,582
     
39,335
     
35,024
 
Operating taxes and licenses
   
3,509
     
3,097
     
6,910
     
6,464
 
Communications and utilities
   
2,425
     
1,953
     
4,891
     
3,921
 
General and other operating
   
15,940
     
14,825
     
33,149
     
28,037
 
Total operating expenses
   
429,740
     
367,661
     
840,594
     
729,409
 
Operating Income
   
20,018
     
2,689
     
34,872
     
4,617
 
Other Expenses (Income):
                               
Interest Expense, net
   
12,298
     
12,906
     
24,956
     
23,424
 
Early extinguishment of debt
   
7,753
     
-
     
7,753
     
-
 
Equity in (income) loss of affiliated companies
   
(119
)
   
657
     
177
     
1,000
 
Other, net
   
242
     
(216
)
   
167
     
(808
)
     
20,174
     
13,347
     
33,053
     
23,616
 
Income (loss) Before Income Taxes
   
(156
)
   
(10,658
)
   
1,819
     
(18,999
)
Income Tax Benefit
   
(1,191
)
   
(2,261
)
   
(598
)
   
(6,195
)
Net Income (loss)
   
1,035
     
(8,397
)
   
2,417
     
(12,804
)
Net Income attributable to non-controlling interest
   
420
     
55
     
643
     
80
 
Net Income (loss) attributable to controlling interest
 
$
615
   
$
(8,452
)
 
$
1,774
   
$
(12,884
)
                                 
Income (loss) Per Share
                               
Basic earnings (loss)  per share
 
$
0.04
   
$
(1.32
)
 
$
0.17
   
$
(2.02
)
Basic weighted average shares outstanding
   
14,214
     
6,385
     
10,321
     
6,385
 
Diluted earnings (loss) per share
 
$
0.04
   
$
(1.32
)
 
$
0.17
   
$
(2.02
)
Diluted weighted average shares outstanding
   
14,456
     
6,385
     
10,443
     
6,385
 
 
6

 
Condensed Consolidated Balance Sheets (unaudited)
           
   
June 30,
   
December 31,
 
(in thousands)
 
2018
   
2017
 
Assets
           
Current assets:
           
Cash and cash equivalents
 
$
6,508
   
$
9,232
 
Customer receivables, net of allowance of $69 and $122, respectively
   
206,558
     
186,407
 
Other receivables
   
22,240
     
21,637
 
Prepaid insurance and licenses
   
7,574
     
7,070
 
Operating supplies
   
9,432
     
8,787
 
Assets held for sale
   
9,720
     
3,417
 
Other current assets
   
15,892
     
12,170
 
Total current assets
   
277,924
     
248,720
 
Property and equipment, at cost
   
844,533
     
835,814
 
Less accumulated depreciation and amortization
   
(388,877
)
   
(371,909
)
Net property and equipment
   
455,656
     
463,905
 
Other assets:
               
Goodwill
   
57,708
     
57,708
 
Intangible assets, net
   
29,827
     
30,742
 
Other
   
21,110
     
19,496
 
Total other assets
   
108,645
     
107,946
 
Total assets
 
$
842,225
   
$
820,571
 
Liabilities, Redeemable Restricted Units and Stockholder's Equity (Deficit)
         
Current liabilities:
               
Accounts payable
 
$
74,944
   
$
80,555
 
Book overdraft
   
-
     
3,537
 
Accrued wages and benefits
   
24,885
     
20,530
 
Claims and insurance accruals
   
46,839
     
47,641
 
Other accrued liabilities
   
5,420
     
13,901
 
Current maturities of long-term debt
   
110,062
     
132,332
 
Total current liabilities
   
262,150
     
298,496
 
Long-term debt, net of current maturities
   
282,209
     
480,472
 
Less unamortized discount and debt issuance costs
   
(1,508
)
   
(7,266
)
Net long-term debt
   
280,701
     
473,206
 
Deferred income taxes
   
14,787
     
15,630
 
Other long-term liabilities
   
12,901
     
14,350
 
Claims and insurance accruals, long-term
   
58,124
     
56,713
 
Commitments and contingencies:
               
Redeemable restricted units
   
-
     
3,281
 
Stockholder's Equity (Deficit):
               
Common Stock
   
483
     
64
 
Additional paid-in capital
   
250,607
     
1
 
Accumulated deficit
   
(40,460
)
   
(43,459
)
Stockholder’s equity (deficit)
   
210,630
     
(43,394
)
Noncontrolling interest
   
2,932
     
2,289
 
Total stockholder's equity (deficit)
   
213,562
     
(41,105
)
Total liabilities, redeemable restricted units and stockholder's equity
 
$
842,225
   
$
820,571
 
 
7

 
Condensed Consolidated Cash Flow Statements (unaudited)
           
   
Six Months Ended June 30,
 
(in thousands)
 
2018
   
2017
 
Operating activities
           
Net income (loss)
 
$
2,417
   
$
(12,804
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
         
Early extinguishment of debt
   
7,753
     
-
 
Equity in loss of affiliated companies
   
177
     
1,000
 
Deferred income tax benefit
   
(959
)
   
(7,077
)
Provision for losses on receivables
   
36
     
-
 
Depreciation and amortization
   
46,792
     
44,976
 
Losses on sale of property and equipment
   
2,063
     
782
 
Restricted unit amortization
   
629
     
259
 
Original issue discount and deferred financing amortization
   
1,387
     
1,456
 
Interest paid-in-kind
   
(7,516
)
   
953
 
Purchase commitment interest (income) expense
   
171
     
(366
)
Changes in operating assets and liabilities
               
Receivables
   
(17,531
)
   
(7,246
)
Prepaid insurance and licenses
   
(504
)
   
(284
)
Operating supplies
   
(1,042
)
   
(66
)
Other assets
   
(3,777
)
   
(1,361
)
Accounts payable and other accrued liabilities
   
(15,353
)
   
(12,934
)
Accrued wages and benefits
   
4,356
     
(471
)
Net cash provided by operating activities
   
19,099
     
6,817
 
Investing activities
               
Payments for purchases of property and equipment
   
(62,864
)
   
(227,380
)
Proceeds from sales of property and equipment
   
15,355
     
15,270
 
Acquisition of business
   
-
     
(2,219
)
Other
   
(500
)
   
(618
)
Net cash used in investing activities
   
(48,009
)
   
(214,947
)
Financing activities
               
Borrowings under lines of credit
   
214,432
     
198,590
 
Payments under lines of credit
   
(243,765
)
   
(158,204
)
Borrowings under long-term debt
   
244,677
     
216,808
 
Payments of long-term debt
   
(427,341
)
   
(55,051
)
Payments of financing costs and original issue discount
   
(4,151
)
   
(195
)
Proceeds from issuance of 16,668,000 shares, net of expenses
   
247,098
     
-
 
Payments of long-term consideration for business acquisition
   
(1,010
)
   
-
 
Repurchase of membership units
   
(217
)
   
(340
)
Book overdraft
   
(3,537
)
   
7,432
 
Net cash provided by financing activities
   
26,186
     
209,040
 
Net change in cash and cash equivalents
   
(2,724
)
   
910
 
Cash and cash equivalents
               
Beginning of year
   
9,232
     
3,278
 
End of year
 
$
6,508
   
$
4,188
 
 
 
8

 
Key Operating Factors & Truckload Statistics (unaudited)
                         
                                     
   
Quarter Ended June 30,
   
%
   
Six Months Ended June 30,
   
%
 
   
2018
   
2017
   
Change
   
2018
   
2017
   
Change
 
Operating Revenue:
                                   
Truckload1
 
$
344,447
   
$
301,095
     
14.4
%
 
$
672,764
   
$
595,154
     
13.0
%
Fuel Surcharge
   
46,950
     
31,887
     
47.2
%
   
89,800
     
63,722
     
40.9
%
Brokerage
   
58,361
     
37,368
     
56.2
%
   
112,902
     
75,150
     
50.2
%
Total Operating Revenue
 
$
449,758
   
$
370,350
     
21.4
%
 
$
875,466
   
$
734,026
     
19.3
%
                                                 
Operating Income:
                                               
Truckload
 
$
18,590
   
$
3,295
     
464.2
%
 
$
31,093
   
$
4,997
     
522.2
%
Brokerage
 
$
1,428
   
$
(606
)
 
nm
   
$
3,779
   
$
(380
)
 
nm
 
   
$
20,018
   
$
2,689
     
644.4
%
 
$
34,872
   
$
4,617
     
655.3
%
                                                 
Operating Ratio:
                                               
Operating Ratio
   
95.5
%
   
99.3
%
   
-3.8
%
   
96.0
%
   
99.4
%
   
-3.4
%
Adjusted Operating Ratio2
   
93.4
%
   
98.5
%
   
-5.2
%
   
94.7
%
   
99.0
%
   
-4.3
%
                                                 
Truckload Operating Ratio
   
95.3
%
   
99.0
%
   
-3.8
%
   
95.9
%
   
99.2
%
   
-3.3
%
Adjusted Truckload Operating Ratio2
   
92.7
%
   
98.1
%
   
-5.5
%
   
94.4
%
   
98.8
%
   
-4.4
%
Brokerage Operating Ratio
   
97.6
%
   
101.6
%
   
-4.0
%
   
96.7
%
   
100.5
%
   
-3.8
%
                                                 
Truckload Statistics: 3
                                               
Revenue Per Mile1
 
$
2.105
   
$
1.890
     
11.4
%
 
$
2.078
   
$
1.885
     
10.2
%
                                                 
Average Tractors -
                                               
     Company Owned
   
4,955
     
5,490
     
-9.7
%
   
5,054
     
5,504
     
-8.2
%
     Owner Operators
   
1,344
     
700
     
92.0
%
   
1,223
     
700
     
74.7
%
Total Average Tractors
   
6,299
     
6,190
     
1.8
%
   
6,277
     
6,204
     
1.2
%
                                                 
Average Revenue Miles Per Tractor
Per Week
   
1,816
     
1,834
     
-1.0
%
   
1,814
     
1,823
     
-0.5
%
                                                 
Average Revenue Per Tractor
Per Week1
 
$
3,823
   
$
3,467
     
10.3
%
 
$
3,771
   
$
3,437
     
9.7
%
                                                 
Total Miles
   
163,009
     
162,132
     
0.5
%
   
324,066
     
320,922
     
1.0
%
                                                 
Total Company Miles
   
125,206
     
139,794
     
-10.4
%
   
255,532
     
276,585
     
-7.6
%
                                                 
Total Independent Contractor Miles
   
37,803
     
22,338
     
69.2
%
   
68,534
     
44,337
     
54.6
%
                                                 
Independent Contractor fuel surcharge
   
10,514
     
4,255
     
147.1
%
   
18,470
     
8,642
     
113.7
%
                                                 
1 Excluding fuel surcharge revenues
                                               
2 See GAAP to non-GAAP reconciliation in the schedules following this release
                         
3 Excludes revenue, miles and tractors for services performed in Mexico.                          
 
9

 
Non-GAAP Reconciliation - Adjusted Operating Income and Adjusted Operating Ratio (unaudited)
       
                         
   
Three Months Ended June 30,
   
Six Months Ended June 30,
 
(in thousands)
 
2018
   
2017
   
2018
   
2017
 
GAAP Presentation:
                       
Total revenue
 
$
449,758
   
$
370,350
   
$
875,466
   
$
734,026
 
Total operating expenses
   
(429,740
)
   
(367,661
)
   
(840,594
)
   
(729,409
)
Operating Income
 
$
20,018
   
$
2,689
   
$
34,872
   
$
4,617
 
   Operating ratio
   
95.5
%
   
99.3
%
   
96.0
%
   
99.4
%
                                 
Non-GAAP Presentation
                               
Total revenue
 
$
449,758
   
$
370,350
   
$
875,466
   
$
734,026
 
Fuel surcharge
   
(46,950
)
   
(31,887
)
   
(89,800
)
   
(63,721
)
  Revenue, excluding fuel surcharge
   
402,808
     
338,463
     
785,666
     
670,305
 
                                 
Total operating expenses
   
429,740
     
367,661
     
840,594
     
729,409
 
Adjusted for:
                               
Fuel surcharge
   
(46,950
)
   
(31,887
)
   
(89,800
)
   
(63,721
)
Fuel purchase arrangements
   
-
     
(2,361
)
   
-
     
(2,361
)
IPO-related costs1
   
(6,437
)
   
-
     
(6,437
)
   
-
 
  Adjusted operating expenses
   
376,353
     
333,413
     
744,357
     
663,327
 
  Adjusted Operating Income
 
$
26,455
   
$
5,050
   
$
41,309
   
$
6,978
 
  Adjusted Operating Ratio
   
93.4
%
   
98.5
%
   
94.7
%
   
99.0
%
                                 
Non-GAAP Reconciliation - Truckload Adjusted Operating Income and Adjusted Operating Ratio (unaudited)
 
                                 
   
Three Months Ended June 30,
   
Six Months Ended June 30,
 
(in thousands)
  2018     2017     2018     2017  
Truckload GAAP Presentation:
                               
Total Truckload revenue
 
$
391,397
   
$
332,982
   
$
762,564
   
$
658,876
 
Total Truckload operating expenses
   
(372,807
)
   
(329,687
)
   
(731,471
)
   
(653,880
)
  Truckload Operating Income
 
$
18,590
   
$
3,295
   
$
31,093
   
$
4,996
 
   Truckload Operating ratio
   
95.3
%
   
99.0
%
   
95.9
%
   
99.2
%
                                 
Truckload Non-GAAP Presentation
                               
Total Truckload revenue
 
$
391,397
   
$
332,982
   
$
762,564
   
$
658,876
 
Fuel surcharge
   
(46,950
)
   
(31,887
)
   
(89,800
)
   
(63,721
)
  Revenue, excluding fuel surcharge
   
344,447
     
301,095
     
672,764
     
595,155
 
                                 
Total Truckload operating expenses
   
372,807
     
329,687
     
731,471
     
653,880
 
Adjusted for:
                               
Fuel surcharge
   
(46,950
)
   
(31,887
)
   
(89,800
)
   
(63,721
)
Fuel purchase arrangements
   
-
     
(2,361
)
   
-
     
(2,361
)
IPO-related costs1
   
(6,437
)
   
-
     
(6,437
)
   
-
 
  Truckload Adjusted operating expenses
   
319,420
     
295,439
     
635,234
     
587,798
 
  Truckload Adjuted Operating Income
 
$
25,027
   
$
5,656
   
$
37,530
   
$
7,357
 
  Truckload Adjusted operating ratio
   
92.7
%
   
98.1
%
   
94.4
%
   
98.8
%
                                 
1 During the second quarter, we incurred one time expenses for the IPO related to pay out of our SAR program and deal bonuses totaling $6,437.
 
 
10

 
Non-GAAP Reconciliation - Adjusted Net Income (unaudited)
                       
                         
   
Three Months Ended June 30,
   
Six Months Ended June 30,
 
(in thousands, except per share data)
 
2018
   
2017
   
2018
   
2017
 
GAAP: Net Income (Loss) attributable to controlling interest
 
$
615
   
$
(8,452
)
 
$
1,774
   
$
(12,884
)
Adjusted for:
                               
Income tax benefit
   
(1,191
)
   
(2,261
)
   
(598
)
   
(6,195
)
   Income (loss) before income taxes attributable to controlling interest
 
$
(576
)
 
$
(10,713
)
 
$
1,176
   
$
(19,079
)
Fuel purchase arrangements
           
2,361
             
2,361
 
Debt extinguishment costs in conjunction with IPO1
   
7,753
     
-
     
7,753
     
-
 
IPO-related costs2
   
6,437
     
-
     
6,437
     
-
 
   Adjusted income (loss) before income taxes
   
13,614
     
(8,352
)
   
15,366
     
(16,718
)
Adjusted income tax provision (benefit)
   
2,329
     
(1,375
)
   
2,922
     
(5,309
)
  Non-GAAP: Adjusted Net Income (Loss) attributable to controlling interest
 
$
11,285
   
$
(6,977
)
 
$
12,444
   
$
(11,409
)
                                 
1 In connection with the IPO, we recognized an early extinguishment of debt charge related to our then existing term loan.
         
2 During the second quarter, we incurred one time expenses for the IPO related to pay out of our SAR program and deal bonuses totaling $6,437.
         
 
11

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