USA Truck Reports Lower Revenue Higher Income in 2nd Quarter

USA Truck, Inc. (NASDAQ: USAK), a leading capacity solutions provider headquartered in Van Buren, AR, announced that operating revenue for the quarter ended June 30, 2015 decreased 12.9% to $133.6 million from $153.3 million for the prior-year period.

Base revenue, which excludes fuel surcharges, decreased 6.2% to $117.2 million in the June 2015 quarter from $125.0 million in the June 2014 quarter. Net income increased $1.7 million to $2.5 million in the second quarter of 2015 from $0.8 million for the 2014 quarter.

Earnings per diluted share increased to $0.23 in the June 2015 quarter from $0.07 for the same quarter last year. The 2014 quarter included approximately $2.2 million, or $0.13 per diluted share, related to defense costs.

Tom Glaser, USA Truck’s President and CEO, said, “USA Truck continued to deliver profitability in the second quarter. Our trucking segment’s adjusted operating ratio was 97.5%(a) for the second quarter, representing a 460 basis-point improvement over last year’s period. Pricing and fuel efficiency were better than last year, while other areas still have significant room to improve, including maintenance, risk management and, importantly, driver retention. In SCS, gross margin remained solid, reflecting steady pricing and lower fuel costs compared to the prior-year period; however, operating income declined due to lower revenue, higher purchased transportation costs and start-up expenses to support our growth plans.”

The company noted that it is “streamlining the size of our tractor fleet by 400 in 2015 through retirement of 800 high-cost tractors while maintaining purchases of new tractors at 400. These combined actions will further improve fleet fuel economy, significantly reduce maintenance costs, and increase the reliability of our equipment for the benefit of our customers and drivers.”

Category: General Update