EX-99.1 2 form8-k20050126_pr.htm

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

VAN BUREN, ARKANSAS JANUARY 27, 2005

USA Truck, Inc. (NASDAQ NMS: USAK) today announced quarterly operating revenues, before fuel surcharge, of $85.2 million for the quarter ended December 31, 2004, an increase of 14.8% from $74.2 million for the same quarter of 2003. Net income increased 167.3% from $1.1 million for the quarter ended December 31, 2003 to $3.0 million for the same quarter of 2004. Diluted net income per share increased 166.7% from $0.12 for the quarter ended December 31, 2003 to $0.32 for the same quarter of 2004.

Operating revenues, before fuel surcharge, increased 17.4% from $286.1 million for the twelve months ended December 31, 2003 to $335.9 million for the twelve months ended December 31, 2004. Net income increased 121.5% from $3.4 million for the twelve months ended December 31, 2003 to $7.4 million for the twelve months ended December 31, 2004. Diluted net income per share increased 119.4% from $0.36 for the twelve months ended December 31, 2003 to $0.79 for the twelve months ended December 31, 2004.

The following table summarizes the earnings information of USA Truck, Inc. (“Company”):

(in thousands, except per share amounts)

Three Months Ended
December 31,

Twelve Months Ended
December 31,

2004
2003
2004
2003
Revenue:                    
    Revenue, before fuel surcharge     $ 85,154   $ 74,185   $ 335,880   $ 286,080  
    Fuel surcharge       10,346     2,927     27,225     12,583  




      Total revenue       95,500     77,112     363,105     298,663  




Operating expenses and costs:    
    Salaries, wages and employee benefits       31,794     28,250     125,953     109,616  
    Fuel and fuel taxes       23,559     15,240     81,722     58,740  
    Depreciation and amortization       9,327     7,896     35,871     30,611  
    Insurance and claims       7,319     4,571     26,224     18,390  
    Purchased transportation       6,298     5,650     28,317     24,183  
    Operations and maintenance       5,302     6,999     24,736     26,518  
    Operating taxes and licenses       1,404     1,311     5,653     4,682  
    Communications and utilities       743     716     3,039     2,967  
    Gain on disposal of revenue equipment, net       (251 )   (48 )   (1,040 )   (743 )
    Other       3,970     3,277     14,831     12,849  




      Total operating expenses       89,465     73,862     345,306     287,813  




Operating income       6,035     3,250     17,799     10,850  
Other expenses (income):                    
    Interest expense       1,096     678     3,539     2,557  
    Other, net       23     (6 )   33     65  




      Total other expenses, net       1,119     672     3,572     2,622  




Income before income taxes       4,916     2,578     14,227     8,228  
Income tax expense       1,869     1,438     6,795     4,873  




Net income     $ 3,047   $ 1,140   $ 7,432   $ 3,355  




Per share information:    
    Average shares outstanding (Basic)       9,236     9,331     9,268     9,327  




    Basic net income per share     $ 0.33   $ 0.12   $ 0.80   $ 0.36  




    Average shares outstanding (Diluted)       9,433     9,384     9,398     9,370  




    Diluted net income per share     $ 0.32   $ 0.12   $ 0.79   $ 0.36  





Key Operating Statistics:

Three Months Ended
December 31,

Twelve Months Ended
December 31,

2004
2003
2004
2003
Total miles (loaded & empty)       65,862,044     59,746,724     259,725,262     231,389,162  
Empty mile factor       8.60 %   8.60 %   8.39 %   8.97 %
Revenue per mile(1)     $ 1.293   $ 1.242   $ 1.293   $ 1.236  
Average number of tractors       2,191     2,040     2,174     1,961  
Miles per tractor       30,060     29,288     119,469     117,995  
Average miles per tractor per week       2,424     2,362     2,361     2,341  
Average miles per trip(2)       836     837     839     851  
Number of shipments(3)       80,942     73,439     329,210     281,336  
Operating ratio(4)       92.9 %   95.6 %   94.7 %   96.2 %
  (1) Revenue per mile is based upon revenue, before fuel surcharge.

  (2) Average miles per trip is based upon shipments for which we use our own tractors to transport our customers’ freight.

  (3) Number of shipments includes both shipments for which we use our own tractors and brokerage and third party logistics services where we engage other carriers to transport our customers’ freight.

  (4) Operating ratio is based upon total operating expenses, net of fuel surcharge, as a percentage of revenue, before fuel surcharge.

In comparing the financial results of the three months ended December 31, 2004 to the three months ended December 31, 2003, Robert M. Powell, Chairman and CEO of the Company, made the following statement:

  Solid freight demand throughout the quarter helped us post strong revenue growth of 14.8% on just 7.4% growth in our tractor fleet. The revenue growth beyond fleet growth was due to higher revenue per mile (+4.1%) and increased average miles per tractor per week (+2.6%).

  We also made progress on our cost management initiatives. In particular, we substantially completed our seven-quarter plan to reduce the average ages of our tractor and trailer fleets, which was the primary reason for the 24.3% reduction in operations and maintenance expenses. Lower diesel fuel prices and our internal efforts to improve the efficiency of our fuel surcharge revenue program also aided in expanding our margins. That margin expansion was hindered by higher insurance and claims costs, which were up 60.1% due to our continued efforts to settle and litigate certain older claims. We are encouraged, however, by the progress that we’ve made in both accident prevention and claims management. Our accident frequency was down 14.6%, our volume of open liability claims was down 28.6% and our volume of liability claims in litigation was down 27.0%. Overall, the operating ratio of 92.9% improved 2.7 percentage points and represents our best operating margin since the fourth quarter of 1999.

  The results of our efforts to improve revenues and reduce expenses is evident on the bottom line where we posted our highest net income ($3.0 million) and diluted earnings per share ($0.32) since our initial public offering in 1992. Over the past several years, we have meticulously benchmarked our current operating statistics against those of 1998, which is the year that produced the strongest operating statistics in our public history. Our focus on improving revenue per mile and equipment utilization while controlling key expense items enabled us to improve our performance against those benchmarks.

                     During 2005, we will continue to work toward our benchmarks.

This press release contains forward-looking statements and information that are based on our current beliefs and expectations and assumptions we have made based upon information currently available. Forward-looking statements include statements relating to our plans, strategies, objectives, expectations, intentions and adequacy of resources, and may be identified by words such as “will,” “could,” “should,” “may,” “believe,” “expect,” “intend,” “plan,” “schedule,” “estimate,” “project” and similar expressions. These statements are based on current expectations and are subject to uncertainty and change. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot assure you that such expectations will be realized. If one or more of the risks or uncertainties underlying such expectations materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. Among the key factors that are not within our control and that have a direct bearing on operating results are increases in fuel prices, adverse weather conditions, increased regulatory burdens and the impact of increased rate competition. Our results have also been, and will continue to be, significantly affected by fluctuations in general economic conditions, as our tractor utilization is directly related to business levels of shippers in a variety of industries. In addition, shortages of qualified drivers and intense or increased competition for drivers have adversely impacted our operating results and our ability to grow and will continue to do so. Results for any specific period could also be affected by various unforeseen events, such as unusual levels of equipment failure or vehicle accident claims. Additional risks associated with our operations are discussed in our SEC filings, including our annual report on Form 10-K and our quarterly reports on Form 10-Q.

All forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by this cautionary statement.

We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release might not occur.

References to the “Company,” “we,” “us,” “our” and words of similar import refer to USA Truck, Inc. and its subsidiary.

USA Truck is a medium haul, dry van truckload carrier transporting general commodities throughout the continental United States and between locations in the United States and Canada. We transport general commodities into Mexico by allowing through-trailer service on our trailers through our facility in the gateway city of Laredo, Texas. We also provide third-party logistics and freight brokerage services.

_________________

Contact: CLIFF BECKHAM, Chief Financial Officer — (479) 471-2633