USA Truck Second Quarter Revenues and Income Down

USA Truck, Inc. (NASDAQ:USAK), has announced that financial results for the most recent quarter were down.

Specifically, for the quarter ended June 30, 2016, operating revenue was $109.9 million compared to $133.6 million for the prior-year period. Base revenue, which excludes fuel surcharges, was $99.5 million compared to $117.2 million for the June 2015 period.

Net income (loss) was ($1.3) million, or ($0.15) per diluted share, compared to $2.8 million, or $0.26 per diluted share a year earlier. Included in loss per share for the June 30, 2016 quarter was $0.7 million, or $0.05, net-of-tax, per share of severance costs included in salaries, wages and employee benefits.

President and CEO Randy Rogers commented, “USA Truck’s results were negatively impacted by a rate environment that deteriorated markedly versus the prior year quarter (base revenue per loaded mile dropped by $0.17 or 9.1%), and by the lower volumes with certain dedicated customers.”

“The key deliverable of our strategy is the improvement of return on invested capital, which we expect to achieve through the following means: (1) reducing the fleet size to reflect the uncertain industry environment; (2) growing USAT’s market share by load count by converting its sales model to dedicated client managers in every regional center and recruiting industry-leading talent; (3) converting the truckload network to one that is more geographically focused with greater lane density, and pursuing contracts that reflect a commitment to a disciplined network structure and pricing objectives; (4) higher utilization of equipment and improved driver satisfaction; and (5) strong attention on reducing controllable costs, particularly in trucking maintenance and overhead.”

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