USA Truck Sets Quarterly Revenue Record for Q2
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USA Truck saw revenue increase to a new quarterly record during the second quarter of 2021, the company reported July 29.
The Van Buren, Ark.-based motor carrier posted net income of $4.2 million, or 47 cents a diluted share, for the three months ending June 30. That compared with a net loss of $900,000, a loss of 11 cents, during the same time the previous year. The total operating revenue increased by 37.4% to a quarterly record of $170 million from $123.7 million.
“For the fourth consecutive quarter, USA Truck’s results represent a record quarter in the history of the company,” CEO James Reed said during a call with investors July 30. “Our team delivered the best Q2 adjusted operating income and adjusted earnings per share in our history and the highest revenue quarter in the history of USA Truck.
“I want to emphasize that last point. [Second quarter] of 2021 represents the single highest revenue quarter in the history of USA Truck since its founding 38 years.”
USATRUCK-Q2 by Transport Topics
Reed noted the current leadership team was first brought together back in 2017. They focused on improving asset business performance, continued logistics segment success and rebuilding the leadership team and culture in a way that could deliver value to shareholders.
“We told our investors that we would focus on price in our network, that we would improve seated truck percentages and that we would improve utilization, all while growing a logistics franchise with market competitive operating ratio,” Reed said. “And we have done just that.”
Reed
Reed also tempered his excitement for the quarterly results. He noted that despite the progress there are still much higher goals to achieve. The earnings report highlighted that while the pricing environment remains strong and structural changes within the business have helped lead to positive results, the driver market remains extremely difficult to recruit from. Equipment delivery schedules also have slipped which has affected the fleet age and costs performance.
“This is by no means a victory lap,” Reed said. “We have a long way to go to deliver the results shareholders and we expect, but we come to you this morning, believing we will produce even better results in coming quarters. And with a renewed resolve to ensure that these record-setting results are appropriately recognized in the equity markets.”
The trucking segment operating revenue increased 18.9% to $105.4 million from $88.6 million during the same time last year. The operating income increased to $3.06 million from $1.18 million. Trucking operating income reflected an operating ratio of 97.1 compared with an operating ratio of 98.7 for the prior-year quarter. This represented a 160-basis-point improvement in operating ratio.
USAK Quotes by TradingView
The earnings report highlighted that within the trucking segment, base revenue per available tractor per week increased 24.4% compared with Q2 2020. This was primarily due to an increase in base revenue per loaded mile, which increased 22% as a result of the tight supply market, improvements in network efficiencies and higher rate realizations.
The logistics segment operating revenue increased 103.3% to $78.7 million from $38.7 million. Operating income increased to $3.87 million from an operating loss of $176,000. This reflected an operating ratio of 95.1 compared with an operating ratio of 100.5 during the prior-year quarter, representing an improvement of 540 basis points.
The report noted revenue per load within the logistics segment increased 82.9% compared with the prior-year quarter. That would be $962 more per load. Load count increased by 11.2% compared with last year at 3,738 more loads.
Cowen and Co. said in a report the results are in line with its forecast and the consensus estimate. The investment bank and financial services company said the logistics segment was the highlight of the quarter. But it also highlighted that the trucking segment performance was below expectations with equipment delivery delays adding to the problem.
“USAK reported 2Q EPS in line with our forecast and the consensus estimate, as a strong pricing environment and strength across the freight market led the company to a record Q2,” Cowen analyst Jason Seidl wrote in the report.
USA Truck ranks No. 65 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
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