USA Truck, Van Buren, Ark., announced record operating revenues for the quarter.
Before fuel surcharge, revenues were $68.92 million for the quarter ended June 30, an increase of 11.4% from $61.88 million for the same quarter of 2001. Net income increased 162.1% to $730,149 for the second quarter of 2002, compared to $278,557 for the same quarter of 2001.
“We are pleased with our revenue growth of 11.4% given that our tractor fleet only grew by 6.4%," said M. Powell, Chairman and CEO. "Our 2002 focus on revenue quality produced 5.9% higher revenue per mile, net of fuel surcharge, and reduced the empty mile factor from 9.88% of paid miles in the second quarter of 2001 to 9.17% of paid miles in the same quarter of 2002.”
Powell added that USA Logistics division added significant volume during the second quarter, increasing its third party logistics and brokerage revenue by 321.8% to $4.3 million.
“On the cost side of our business, we continue to see reductions in the frequency of accidents, fuel prices have stabilized and we have effectively capped our driver pay expense,” he said. However, Powell noted driver pay is still the single largest item negatively impacting the company’s current margins compared to historical levels.
“Insurance claim costs have stabilized, but higher premiums continue to exert downward pressure on our operating margins," he said. "Finally, because we are not trading tractors this year due to the weak used equipment market, we have experienced slightly higher depreciation expense and higher direct repair costs to maintain the slightly older tractors in the fleet.”
Before fuel surcharge, revenues were $68.92 million for the quarter ended June 30, an increase of 11.4% from $61.88 million for the same quarter of 2001. Net income increased 162.1% to $730,149 for the second quarter of 2002, compared to $278,557 for the same quarter of 2001.
“We are pleased with our revenue growth of 11.4% given that our tractor fleet only grew by 6.4%," said M. Powell, Chairman and CEO. "Our 2002 focus on revenue quality produced 5.9% higher revenue per mile, net of fuel surcharge, and reduced the empty mile factor from 9.88% of paid miles in the second quarter of 2001 to 9.17% of paid miles in the same quarter of 2002.”
Powell added that USA Logistics division added significant volume during the second quarter, increasing its third party logistics and brokerage revenue by 321.8% to $4.3 million.
“On the cost side of our business, we continue to see reductions in the frequency of accidents, fuel prices have stabilized and we have effectively capped our driver pay expense,” he said. However, Powell noted driver pay is still the single largest item negatively impacting the company’s current margins compared to historical levels.
“Insurance claim costs have stabilized, but higher premiums continue to exert downward pressure on our operating margins," he said. "Finally, because we are not trading tractors this year due to the weak used equipment market, we have experienced slightly higher depreciation expense and higher direct repair costs to maintain the slightly older tractors in the fleet.”
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