EX-99 2 exhibit99.htm EXHIBIT 99 (THIRD QUARTER EARNINGS RELEASE)
Exhibit 99

U.S. Xpress Reports Third Quarter 2022 Financial Results

Chattanooga, Tenn. – November 3, 2022 – U.S. Xpress Enterprises, Inc. (NYSE: USX) today announced financial and operating results for the third quarter of 2022.

Third Quarter 2022 Highlights compared to Third Quarter 2021

•
Operating revenue of $547.8 million compared to $491.1 million
•
Operating loss of $22.7 million compared to operating income of $6.6 million
•
Operating loss included a $25.7 million increase in claims expense and $4.4 million in other expenses primarily related to the Company's Realignment Plan1.
•
Initiatives associated with the Company’s Realignment Plan are now expected to drive $28.0 million in annualized cost reductions

"During the third quarter, we were successful growing our overall fleet size, sequentially improving utilization in our OTR division and taking actions to reduce costs throughout the Company," said Eric Fuller, President and CEO. "However, quarterly progress on our initiatives was outweighed by elevated claims expense primarily due to recent unexpected and adverse developments in two claims from prior years, along with certain one-time costs in the quarter. As we exit the year, our priority is to get back to the basics and service our customers at a high level. In addition to the $28.0 million in annualized costs we have already taken out of the business, we will continue to identify additional cost takeout opportunities, while allocating capital in a disciplined manner targeting projects that we believe will drive the Company forward."

Third Quarter 2022 Financial Performance

   
Quarter Ended September 30,
    
Nine Months Ended September 30,
  
   
2022
    
2021
    
2022
    
2021
  
Operating revenue
  
$
547,828
    
$
491,140
    
$
1,618,719
    
$
1,416,921
  
Revenue, excluding fuel surcharge
    
477,428
      
451,824
      
1,420,940
      
1,306,998
  
Operating income (loss)
    
(22,740
)
    
6,635
      
(16,482
)
    
23,539
  
Net income (loss) attributable to controlling interest
    
(19,790
)
    
(5,478
)
    
(29,246
)
    
16,156
  
Earnings (losses) per diluted share
    
(0.38
)
    
(0.11
)
    
(0.57
)
    
0.31
  
Adjusted net income (loss) attributable to controlling interest1
    
(19,630
)
    
3,430
      
(22,989
)
    
10,153
  
Adjusted earnings (losses) per diluted share1
  
$
(0.38
)
  
$
0.07
    
$
(0.44
)
  
$
0.19
  
Operating Ratio
                                
Truckload operating ratio
    
105.6
%
    
98.0
%
    
101.9
%
    
97.9
%
Brokerage operating ratio
    
94.9
%
    
101.6
%
    
96.5
%
    
100.0
%
Operating ratio
    
104.2
%
    
98.6
%
    
101.0
%
    
98.3
%
Adjusted operating ratio1
    
104.5
%
    
98.5
%
    
101.1
%
    
98.2
%
1 See "Non-GAAP Financial Measures" section of this earnings release for more detail including GAAP to Non-GAAP reconciliations.
  

Operating revenue was $547.8 million, an increase of $56.7 million compared to the third quarter of 2021. The increase was primarily the result of a 12.1% increase in average available tractors combined with a 9.0% increase in average truckload rate per mile. Revenue, excluding fuel surcharge increased $25.6 million to $477.4 million, an increase of 5.7% compared to the third quarter of 2021.

Operating loss was $22.7 million for the third quarter of 2022 compared to operating income of $6.6 million in the third quarter of 2021. Third quarter 2022 operating expenses included incremental claims expense of $25.7 million compared to the third quarter of 2021, primarily due to recent unexpected and adverse developments in two large claims resulting from accidents which occurred in prior years. In addition, third-quarter results included $4.4 million in other expenses1, primarily related to the Company’s Realignment Plan which are described below in the Supplemental Financial Information section of this earnings release.
1
Net loss attributable to controlling interest for the third quarter of 2022 was $19.8 million, or $0.38 per diluted share, compared to $5.5 million, or $0.11 per diluted share, in the third quarter of 2021.

Truckload Segment

   
Quarter Ended September 30,
    
Nine Months Ended September 30,
  
   
2022
    
2021
    
2022
    
2021
  
Truckload revenue, net of fuel surcharge
  
$
401,941
    
$
361,004
    
$
1,162,999
    
$
1,037,850
  
Operating income (loss)
    
(26,604
)
    
8,081
      
(25,421
)
    
23,553
  
Operating ratio
    
105.6
%
    
98.0
%
    
101.9
%
    
97.9
%
Adjusted operating income (loss)1
  
$
(25,463
)
  
$
8,081
    
$
(26,047
)
  
$
23,553
  
Adjusting operating ratio1
    
106.3
%
    
97.8
%
    
102.2
%
    
97.7
%
1 - See "Non-GAAP Financial Measures" section of this earnings release for more detail including GAAP to Non-GAAP reconciliations.
  

Truckload revenue, net of fuel surcharge was $401.9 million compared to $361.0 million in the third quarter of 2021. The increase was primarily due to a combination of increased average available tractors and an increased overall truckload rate per mile compared to the third quarter of 2021.

The Company’s OTR division increased average revenue per tractor per week due to an increase in average revenue per mile while average revenue miles were flat compared to the third quarter of 2021. Total division revenue grew from a combination of this higher revenue per tractor per week combined with a 14.8% increase in average tractors. However, significant cost inflation weighed on the OTR division’s contribution to overall Truckload segment results in the third quarter.

The Company’s Dedicated division continued to perform at a high level in the quarter. The division grew its average revenue per tractor per week by 12.2% and average tractors by 8.3% which contributed to an increase in total division revenue compared to the third quarter of 2021. The decline in average revenue miles per tractor per week was due to customer mix shift towards more discount retail and grocery business in the quarter.

Brokerage Segment

   
Quarter Ended September 30,
    
Nine Months Ended September 30,
  
   
2022
    
2021
    
2022
    
2021
  
Brokerage revenue
  
$
75,487
    
$
90,820
    
$
257,941
    
$
269,148
  
Gross margin %
    
20.5
%
    
11.2
%
    
17.9
%
    
12.3
%
Operating income (loss)
  
$
3,864
    
$
(1,446
)
  
$
8,939
    
$
(14
)
Operating ratio
    
94.9
%
    
101.6
%
    
96.5
%
    
100.0
%
Load count
    
29,043
      
43,766
      
104,677
      
130,627
  

Brokerage revenue was $75.5 million, which was a decline of 16.9% compared to the third quarter of 2021. The decrease in Brokerage revenue was driven by a 33.6% decrease in load count which more than offset the 25.3% increase in revenue per load compared to the third quarter of 2021. The year-over-year decline in load count was primarily due to an increase in allocation of available freight to the Company’s asset-based OTR fleet which increased by 14.8% compared to the third quarter of 2021.
2
Brokerage operating income was $3.9 million compared to an operating loss of $1.4 million in the third quarter of 2021. The increase in Brokerage segment operating income was due to the higher gross margin in the third quarter as compared to the third quarter of 2021.

Liquidity and Capital Allocation

At the end of the third quarter of 2022, the Company had liquidity of $131.1 million (defined as cash balances plus availability under the Company’s revolving credit facility), $461.1 million of net debt (defined as long-term debt, including current maturities less cash balances), and $252.2 million of stockholders’ equity.

Year-to-date, through September 30, 2022, capital expenditures, net of proceeds were $113.8 million, and exclude equipment financed under operating leases. Most of the Company’s annual capital expenditures relate to tractors and trailers, for which the Company generally uses a combination of loan financing agreements and finance lease arrangements to fund these acquisitions.

Outlook

Mr. Fuller commented, "Looking ahead to the fourth quarter, we expect further implementation of our Realignment Plan to yield additional cost savings and we will continue to allocate capital, in a disciplined manner, to projects which we believe will drive the business forward. With that said, we must continue to improve utilization in our OTR division to meaningfully improve our overall financial results."

Conference Call Information

The Company will host a conference call and simultaneous webcast to discuss its third quarter 2022 financial and operating results on November 3, 2022, at 5:00 p.m. ET. The conference call can be accessed live by dialing 1-888-800-8518 or, for international callers, 1-646-307-1863 and asking to be joined to the US Xpress Third Quarter 2022 Earnings Conference Call. The simultaneous webcast can be accessed on the Investor Relations website at investor.usxpress.com.

Supplemental Financial Information

Additional information regarding the Company’s operating results is provided below as well as on the Company’s investor page at investor.usxpress.com.

(1)
Certain Expenses Contained in the Company’s Third Quarter Results

During the third quarter, the Company took action to reduce operating expenses. Once fully implemented, the Company anticipates that these actions will result in approximately $28.0 million in annualized cost reductions. The costs include a combination of workforce reduction, real estate footprint rationalization and general and other expenses which are mainly vendor-related expenses. The Company anticipates these cost reduction actions to begin benefitting its financial results beginning in the fourth quarter.
3
In addition, the Company incurred $30.1 million in expenses that the Company believes may not be indicative of future operating expenses. These expenses negatively impacted the Company’s Truckload segment adjusted operating ratio by approximately 750 basis points2.

   
Quarter Ended
  
     September 30,  
Expense (in millions, $USD)
   2022
  
Incremental insurance premiums and claims expense
  
$
25.7
  
Atlanta lease termination
    
1.2
  
Obsolete technology write-off
    
1.2
  
Bad debt write-off
    
1.0
  
Severance-related expense
    
1.0
  
Total other certain expenses
  
$
30.1
  

(2)
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 Income (Loss), Adjusted Net Income (Loss) Attributable to Controlling Interest, and Adjusted EPS (on a consolidated and, as applicable, segment basis). 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. Further, management uses non-GAAP Adjusted Operating Ratio, Adjusted Operating Income (Loss), Adjusted Net Income (Loss) Attributable to Controlling Interest, and Adjusted EPS measures on a supplemental basis to remove items that may not be an indicator of performance from period-to-period. The non-GAAP information provided is used by our management and may not be comparable to similar measures disclosed by other companies. The non-GAAP measures used herein have limitations as analytical tools and should not be considered measures of income generated by our business or discretionary cash available to us to invest in the growth of our business. You should not consider the non-GAAP measures used herein 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.
4
Non-GAAP Reconciliation - Adjusted Operating Income and Adjusted Operating Ratio (unaudited)
                         
   
Quarter Ended September 30,
    
Nine Months Ended September 30,
  
(in thousands)
  
2022
    
2021
    
2022
    
2021
  
GAAP Presentation:            
                       
Total revenue
  
$
547,828
    
$
491,140
    
$
1,618,719
    
$
1,416,921
  
Total operating expenses
    
(570,568
)
    
(484,505
)
    
(1,635,201
)
    
(1,393,382
)
Operating income
  
$
(22,740
)
  
$
6,635
    
$
(16,482
)
  
$
23,539
  
Operating ratio
    
104.2
%
    
98.6
%
    
101.0
%
    
98.3
%
                                 
Non-GAAP Presentation
                                
Total revenue
  
$
547,828
    
$
491,140
    
$
1,618,719
    
$
1,416,921
  
Fuel surcharge
    
(70,400
)
    
(39,316
)
    
(197,779
)
    
(109,923
)
Revenue, excluding fuel surcharge
    
477,428
      
451,824
      
1,420,940
      
1,306,998
  
                                 
Total operating expenses
    
570,568
      
484,505
      
1,635,201
      
1,393,382
  
Adjusted for:
                                
Fuel surcharge
    
(70,400
)
    
(39,316
)
    
(197,779
)
    
(109,923
)
Impairment charges1
    
(1,248
)
    
-
      
(4,218
)
    
-
  
Gain on sale of terminal2
    
-
      
-
      
4,002
      
-
  
Adjusted operating expenses
    
498,920
      
445,189
      
1,437,206
      
1,283,459
  
Adjusted operating income
  
$
(21,492
)
  
$
6,635
    
$
(16,266
)
  
$
23,539
  
Adjusted operating ratio
    
104.5
%
    
98.5
%
    
101.1
%
    
98.2
%
                                 
1During the first and third quarter of 2022, we incurred a non-cash adjustment due to the write off of obsolete technology
2During the second quarter of 2022, we recognized a gain of $4,002 on sale of terminal which was leased to a former subsidiary

Non-GAAP Reconciliation - Truckload Adjusted Operating Income and Adjusted Operating Ratio (unaudited)
                         
   
Quarter Ended September 30,
    
Nine Months Ended September 30,
  
(in thousands)
  
2022
    
2021
    
2022
    
2021
  
Truckload GAAP Presentation:            
                       
Total Truckload revenue
  
$
472,341
    
$
400,320
    
$
1,360,778
    
$
1,147,773
  
Total Truckload operating expenses
    
(498,945
)
    
(392,239
)
    
(1,386,199
)
    
(1,124,220
)
Truckload operating income
  
$
(26,604
)
  
$
8,081
    
$
(25,421
)
  
$
23,553
  
Truckload operating ratio
    
105.6
%
    
98.0
%
    
101.9
%
    
97.9
%
                                 
Truckload Non-GAAP Presentation
                                
Total Truckload revenue
  
$
472,341
    
$
400,320
    
$
1,360,778
    
$
1,147,773
  
Fuel surcharge
    
(70,400
)
    
(39,316
)
    
(197,779
)
    
(109,923
)
Revenue, excluding fuel surcharge
    
401,941
      
361,004
      
1,162,999
      
1,037,850
  
                                 
Total Truckload operating expenses
    
498,945
      
392,239
      
1,386,199
      
1,124,220
  
Adjusted for:
                                
Fuel surcharge
    
(70,400
)
    
(39,316
)
    
(197,779
)
    
(109,923
)
Impairment charges1
    
(1,141
)
    
-
      
(3,376
)
    
-
  
Gain on sale of terminal2
    
-
      
-
      
4,002
      
-
  
Truckload Adjusted operating expenses
    
427,404
      
352,923
      
1,189,046
      
1,014,297
  
Truckload Adjusted operating income (loss)
  
$
(25,463
)
  
$
8,081
    
$
(26,047
)
  
$
23,553
  
Truckload Adjusted operating ratio
    
106.3
%
    
97.8
%
    
102.2
%
    
97.7
%
                                 
1During the first and third quarter of 2022, we incurred a non-cash adjustment due to the write off of obsolete technology
2During the second quarter of 2022, we recognized a gain of $4,002 on sale of terminal which was leased to a former subsidiary
5
Non-GAAP Reconciliation - Adjusted Net Income and EPS (unaudited)
                               
         
Quarter Ended September 30,
    
Nine Months Ended September 30,
  
(in thousands, except per share data)
    
2022
    
2021
    
2022
    
2021
  
GAAP: Net income (loss) attributable to controlling interest
    
$
(19,790
)
  
$
(5,478
)
  
$
(29,246
)
  
$
16,156
  
Adjusted for:
                                      
Income tax provision (benefit)
      
(7,786
)
    
(3,361
)
    
(9,856
)
    
4,732
  
Income (loss) before income taxes attributable to controlling interest
    
$
(27,576
)
  
$
(8,839
)
  
$
(39,102
)
  
$
20,888
  
Unrealized loss (gain) on equity investment1
      
(131
)
    
12,062
      
9,989
      
(8,129
)
Gain on sale of terminal2
      
-
      
-
      
(4,002
)
    
-
  
Gain on sale of equity method investment3
      
-
      
-
      
(1,258
)
    
-
  
Impairment charges4
      
1,248
      
-
      
4,218
      
-
  
Adjusted income (loss) before income taxes
      
(26,459
)
    
3,223
      
(30,155
)
    
12,759
  
Adjusted income tax provision (benefit)
      
(6,829
)
    
(207
)
    
(7,166
)
    
2,606
  
Non-GAAP: Adjusted net income (loss) attributable to controlling interest
    
$
(19,630
)
  
$
3,430
    
$
(22,989
)
  
$
10,153
  
                                         
GAAP: Earnings (losses) per diluted share
    
$
(0.38
)
  
$
(0.11
)
  
$
(0.57
)
  
$
0.31
  
Adjusted for:
                                        
Income tax expense attributable to controlling interest
      
(0.15
)
    
(0.06
)
    
(0.19
)
    
0.09
  
Income (loss) before income taxes attributable to controlling interest
    
$
(0.53
)
  
$
(0.17
)
  
$
(0.76
)
  
$
0.40
  
Unrealized loss (gain) on equity investment1
      
-
      
0.24
      
0.20
      
(0.16
)
Gain on sale of terminal2
      
-
      
-
      
(0.08
)
    
-
  
Gain on sale of equity method investment3
      
-
      
-
      
(0.02
)
    
-
  
Impairment charges4
      
0.02
      
-
      
0.08
      
-
  
Adjusted income (loss) before income taxes
      
(0.51
)
    
0.07
      
(0.58
)
    
0.24
  
Adjusted income tax provision (benefit)
      
(0.13
)
    
-
      
(0.14
)
    
0.05
  
Non-GAAP: Adjusted earnings (losses) per diluted share attributable to controlling interest
    
$
(0.38
)
  
$
0.07
    
$
(0.44
)
  
$
0.19
  
                                         
1During 2022 and 2021, we recognized an unrealized loss (gain) on a strategic equity investment
2During the second quarter of 2022, we recognized a gain of $4,002 on sale of terminal which was leased to a former subsidiary
3During the first quarter of 2022, we incurred a gain on sale related to an equity method investment in a former wholly owned subsidiary of $1,258
4During the first and third quarter of 2022, we incurred a non-cash adjustment due to the write off of obsolete technology
6
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,” “optimistic,” “will,” “could,” “should,” “may,” “focus,” “seek,” “potential,” “continue,” “goal,” “target,” “objective,” derivations thereof, and similar terms and phrases.  In this press release, such statements may include, but are not limited to, statements in the “Certain Expenses” and "Outlook" sections, statements regarding the freight environment, future utilization, the expected impact of the Company’s realignment plan, including lowering fixed and other costs, allocating capital to projects that will drive the business forward, and any other statements concerning: any projections of earnings, revenues, cash flows, capital expenditures, compliance with financial covenants, or other financial items; any statement of plans, strategies, or objectives for future operations; any statements regarding future economic or industry conditions or performance; any statements regarding our responses to COVID-19 and the associated economic conditions; 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 premiums 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 premiums 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 and availability; future capital expenditures, including equipment purchasing and leasing plans and equipment turnover (including expected trade-ins); 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; 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; independent contractors we contract could be deemed by regulators or the judicial process to be employees; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, intermodal, and brokerage (including digital brokerage) competitors; changes in regulatory requirements that increase costs, decrease efficiency, or reduce the availability of drivers; safety-related evaluations and rankings under the Federal Motor Carrier Safety Administration’s Compliance, Safety, Accountability program; increasing attention on environmental, social and governance matters; 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; our ability to adapt to changing market conditions and technologies, including the future use of autonomous tractors; disruptions to our information technology; the cost of and our ability to effectively and efficiently implement technology initiatives; costs, diversion of management’s attention, and potential payments made in connection with the multiple class action lawsuits a stockholder derivative lawsuit arising out of our IPO;  credit, reputational and relationship risks of certain of our current and former equity investments; the dual class structure of our common stock has the effect of concentrating voting control with certain members of the Fuller and Quinn families, which limits or precludes the ability of other stockholders to influence corporate matters; our ability to maintain effective internal controls without material weaknesses; and the impact of the coronavirus outbreak or other similar outbreaks. 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.
7
About U.S. Xpress

Through its subsidiaries, U.S. Xpress Enterprises, Inc. offers customers over-the-road, dedicated, and brokerage services. Founded in 1985, the Company utilizes a combination of smart technology, a modern fleet of tractors and a network of highly trained, professional drivers to efficiently move freight for a wide variety of customers. U.S. Xpress implements a range of digital initiatives and technology to drive innovation in the industry, streamline the value chain for customers and improve the overall driver experience.

Investor Contact
Matt Garvie
Vice President, Investor Relations
(423)-633-7153
mgarvie@usxpress.com 
8
Condensed Consolidated Income Statements (unaudited)
   
Quarter Ended September 30,
    
Nine Months Ended September 30,
  
(in thousands, except per share data)
  
2022
    
2021
    
2022
    
2021
  
Operating Revenue:            
                       
Revenue, excluding fuel surcharge
  
$
477,428
    
$
451,824
    
$
1,420,940
    
$
1,306,998
  
Fuel surcharge
    
70,400
      
39,316
      
197,779
      
109,923
  
Total operating revenue
    
547,828
      
491,140
      
1,618,719
      
1,416,921
  
Operating Expenses:          
                               
Salaries, wages and benefits
    
188,430
      
158,942
      
538,876
      
445,445
  
Fuel and fuel taxes        
   
86,406
      
46,715
      
240,702
      
130,902
  
Vehicle rents              
   
26,237
      
22,700
      
74,867
      
65,710
  
Depreciation and amortization, net of (gain) loss
    
23,187
      
19,509
      
56,833
      
65,096
  
Purchased transportation   
   
123,535
      
159,152
      
414,304
      
458,302
  
Operating expense and supplies
    
51,339
      
38,683
      
143,832
      
105,641
  
Insurance premiums and claims
   
43,912
      
18,242
      
87,452
      
58,952
  
Operating taxes and licenses 
   
4,112
      
3,677
      
11,780
      
10,193
  
Communications and utilities 
   
3,707
      
2,677
      
11,115
      
8,029
  
General and other operating  
   
19,703
      
14,208
      
55,440
      
45,112
  
Total operating expenses  
   
570,568
      
484,505
      
1,635,201
      
1,393,382
  
Operating Income
    
(22,740
)
    
6,635
      
(16,482
)
    
23,539
  
Other Expenses (Income):
                                
Interest expense, net
    
4,588
      
3,572
      
12,981
      
10,816
  
Other, net
    
(131
)
    
12,062
      
8,731
      
(8,129
)
     
4,457
      
15,634
      
21,712
      
2,687
  
Income (Loss) Before Income Taxes
   
(27,197
)
    
(8,999
)
    
(38,194
)
    
20,852
  
Income Tax Provision (Benefit)
    
(7,786
)
    
(3,361
)
    
(9,856
)
    
4,732
  
Net Income (Loss)
    
(19,411
)
    
(5,638
)
    
(28,338
)
    
16,120
  
Net Income attributable to non-controlling interest
    
379
      
(160
)
    
908
      
(36
)
Net Income (Loss) attributable to controlling interest
  
$
(19,790
)
  
$
(5,478
)
  
$
(29,246
)
  
$
16,156
  
                                 
Income (Loss) Per Share
                                
Basic earnings (losses) per share
 
$
(0.38
)
  
$
(0.11
)
  
$
(0.57
)
  
$
0.32
  
Basic weighted average shares outstanding
    
51,562
      
50,563
      
51,213
      
50,293
  
Diluted earnings (losses) per share
 
$
(0.38
)
  
$
(0.11
)
  
$
(0.57
)
  
$
0.31
  
Diluted weighted average shares outstanding
    
51,562
      
50,563
      
51,213
      
51,839
  
9
Condensed Consolidated Balance Sheets (unaudited)
   
September 30,
    
December 31,
  
(in thousands)
  
2022
    
2021
  
Assets
            
Current assets:
            
Cash and cash equivalents
  
$
1,371
    
$
5,695
  
Customer receivables, net of allowance of $1,019 and $11, respectively
    
241,130
      
231,687
  
Other receivables
    
20,756
      
18,046
  
Prepaid insurance and licenses
    
21,808
      
13,867
  
Operating supplies
    
10,277
      
9,550
  
Assets held for sale
    
20,466
      
11,831
  
Other current assets
    
26,047
      
32,020
  
Total current assets
    
341,855
      
322,696
  
Property and equipment, at cost
    
961,179
      
890,933
  
Less accumulated depreciation and amortization
    
(390,645
)
    
(370,112
)
Net property and equipment
    
570,534
      
520,821
  
Other assets:
                
Operating lease right-of-use assets
    
317,530
      
292,347
  
Goodwill
    
59,221
      
59,221
  
Intangible assets, net
    
23,870
      
24,129
  
Other
    
49,590
      
50,829
  
Total other assets
    
450,211
      
426,526
  
Total assets   
 
$
1,362,600
    
$
1,270,043
  
Liabilities and Stockholders' Equity
               
Current liabilities:
                
Accounts payable   
 
$
132,328
    
$
126,910
  
Book overdraft   
   
3,936
      
7,096
  
Accrued wages and benefits   
   
41,912
      
45,011
  
Claims and insurance accruals
    
55,335
      
44,309
  
Other accrued liabilities   
   
6,192
      
5,962
  
Current portion of operating leases
    
101,213
      
88,375
  
Current maturities of long-term debt and finance leases
    
115,941
      
85,117
  
Total current liabilities   
   
456,857
      
402,780
  
Long-term debt and finance leases, net of current maturities   
   
346,496
      
290,392
  
Less debt issuance costs
    
(322
)
    
(357
)
Net long-term debt and finance leases
    
346,174
      
290,035
  
Deferred income taxes   
   
13,631
      
24,301
  
Other long-term liabilities   
   
21,634
      
14,457
  
Claims and insurance accruals, long-term   
   
51,386
      
54,819
  
Noncurrent operating lease liability
    
218,070
      
205,362
  
Commitments and contingencies
    
-
      
-
  
Stockholders' Equity:
                
Common stock
    
515
      
505
  
Additional paid-in capital   
   
272,508
      
267,621
  
Retained earnings (deficit)
    
(20,806
)
    
8,440
  
Stockholders' equity
   
252,217
      
276,566
  
Noncontrolling interest   
   
2,631
      
1,723
  
Total stockholders' equity
   
254,848
      
278,289
  
Total liabilities and stockholders' equity
  
$
1,362,600
    
$
1,270,043
  
10
Condensed Consolidated Cash Flow Statements (unaudited)
   
Nine Months Ended September 30,
  
(in thousands)
  
2022
    
2021
  
Operating activities   
           
Net income (loss)
  
$
(28,338
)
  
$
16,120
  
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
Deferred income tax provision (benefit)
    
(10,670
)
    
3,764
  
Depreciation and amortization
    
60,174
      
62,049
  
(Gains) losses on sale of property and equipment
    
(3,341
)
    
3,047
  
Share based compensation
    
3,998
      
5,294
  
Other
    
203
      
546
  
Unrealized loss (gain) on investment
    
9,989
      
(8,129
)
Changes in operating assets and liabilities
                
Receivables   
   
(14,154
)
    
(38,064
)
Prepaid insurance and licenses   
   
(7,838
)
    
(7,486
)
Operating supplies   
   
(648
)
    
(3,420
)
Other assets   
   
(3,677
)
    
(8,284
)
Accounts payable and other accrued liabilities   
   
22,811
      
36,762
  
Accrued wages and benefits   
   
(3,099
)
    
8,105
  
Net cash provided by operating activities   
   
25,410
      
70,304
  
Investing activities   
               
Payments for purchases of property and equipment   
   
(147,643
)
    
(141,068
)
Proceeds from sales of property and equipment   
   
33,877
      
70,016
  
Net cash used in investing activities   
   
(113,766
)
    
(71,052
)
Financing activities   
               
Borrowings under lines of credit   
   
382,307
      
235,612
  
Payments under lines of credit   
   
(314,241
)
    
(210,612
)
Borrowings under long-term debt   
   
85,674
      
83,959
  
Payments of long-term debt and finance leases
    
(67,930
)
    
(110,759
)
Payments of financing costs
   
-
      
(100
)
Tax withholding related to net share settlement of restricted stock awards
    
(431
)
    
(1,211
)
Proceeds from long-term consideration for sale of subsidiary
    
483
      
460
  
Proceeds from issuance of common stock under ESPP
    
1,330
      
1,285
  
Book overdraft   
   
(3,160
)
    
2,604
  
Net cash provided by financing activities   
   
84,032
      
1,238
  
Net change in cash and cash equivalents   
   
(4,324
)
    
490
  
Cash and cash equivalents
                
Beginning of year   
   
5,695
      
5,505
  
End of period
  
$
1,371
    
$
5,995
  
11
Truckload Statistics (unaudited)
                                     
   
Quarter Ended September 30,
    
%
    
Nine Months Ended September 30,
    
%
  
   
2022
    
2021
    
Change
    
2022
    
2021
    
Change
  
Over-the-road
                                    
Average revenue per tractor per week1
  
$
3,857
    
$
3,770
      
2.3
%
  
$
3,870
    
$
3,776
      
2.5
%
Average revenue per mile1
  
$
2.475
    
$
2.421
      
2.2
%
  
$
2.519
    
$
2.286
      
10.2
%
Average revenue miles per tractor per week
    
1,558
      
1,558
      
0.0
%
    
1,536
      
1,651
      
-7.0
%
Average tractors
    
3,918
      
3,413
      
14.8
%
    
3,757
      
3,384
      
11.0
%
                                                 
Dedicated
                                                
Average revenue per tractor per week1
  
$
4,870
    
$
4,340
      
12.2
%
  
$
4,834
    
$
4,274
      
13.1
%
Average revenue per mile1
  
$
2.983
    
$
2.527
      
18.0
%
  
$
2.894
    
$
2.455
      
17.9
%
Average revenue miles per tractor per week
    
1,632
      
1,717
      
-5.0
%
    
1,670
      
1,741
      
-4.1
%
Average tractors
    
2,730
      
2,520
      
8.3
%
    
2,657
      
2,575
      
3.2
%
                                                 
Consolidated
                                                
Average revenue per tractor per week1
  
$
4,273
    
$
4,012
      
6.5
%
  
$
4,269
    
$
3,991
      
7.0
%
Average revenue per mile1
  
$
2.689
    
$
2.468
      
9.0
%
  
$
2.682
    
$
2.361
      
13.6
%
Average revenue miles per tractor per week
    
1,589
      
1,625
      
-2.2
%
    
1,592
      
1,690
      
-5.8
%
Average tractors
    
6,648
      
5,933
      
12.1
%
    
6,414
      
5,959
      
7.6
%
                                                 
Average tractors -
                                                
Company owned
    
5,739
      
4,746
      
20.9
%
    
5,448
      
4,619
      
17.9
%
Owner operators
    
909
      
1,187
      
-23.4
%
    
966
      
1,340
      
-27.9
%
Total average tractors
    
6,648
      
5,933
      
12.1
%
    
6,414
      
5,959
      
7.6
%
                                                 
Miles driven -
                                               
Total company miles
   
131,047
      
112,516
      
16.5
%
    
370,261
      
335,779
      
10.3
%
Total independent contractor miles
   
22,745
      
29,430
      
-22.7
%
    
71,712
      
101,135
      
-29.1
%
Total miles
    
153,792
      
141,946
      
8.3
%
    
441,973
      
436,914
      
1.2
%
                                                 
Independent contractor fuel surcharge
  
$
11,539
    
$
8,001
      
44.2
%
  
$
34,173
    
$
24,083
      
41.9
%
1 Excluding fuel surcharge revenues

12

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