U.S. Xpress Enterprises Inc. announced this week it has completed the acquisition of additional equity in both Arnold Transportation Services Inc. and Total Transportation of Mississippi
and affiliated companies, increasing its ownership interest in each to 80 percent from 49 percent, for a total of approximately $7.9 million in cash.
U.S. Xpress had previously announced reaching agreements in principle for these acquisitions on Feb. 13.
As previously disclosed, for 2005, Arnold and Total contributed $2.8 million of equity in earnings for U.S. Xpress, reported combined revenue of $317.0 million, combined net income of approximately $5.7 million and achieved an operating ratio of approximately 94.7 percent. U.S. Xpress will account for the operations of both companies on a consolidated basis. As a result, both the combined net income and existing debt of Arnold and Total will be consolidated into U.S. Xpress' income statement and balance sheet.
Had the transactions occurred as of Dec. 31, 2005, U.S. Xpress' total debt outstanding, including current maturities, would have increased from $177.2 million to approximately $308 million. Considering the historical and expected cash flows of Arnold and Total, U.S. Xpress' consolidated fixed-charge coverage and senior-leverage ratios are expected to remain well within the limits of the U.S. Xpress' primary credit agreement.
and affiliated companies, increasing its ownership interest in each to 80 percent from 49 percent, for a total of approximately $7.9 million in cash.
U.S. Xpress had previously announced reaching agreements in principle for these acquisitions on Feb. 13.
As previously disclosed, for 2005, Arnold and Total contributed $2.8 million of equity in earnings for U.S. Xpress, reported combined revenue of $317.0 million, combined net income of approximately $5.7 million and achieved an operating ratio of approximately 94.7 percent. U.S. Xpress will account for the operations of both companies on a consolidated basis. As a result, both the combined net income and existing debt of Arnold and Total will be consolidated into U.S. Xpress' income statement and balance sheet.
Had the transactions occurred as of Dec. 31, 2005, U.S. Xpress' total debt outstanding, including current maturities, would have increased from $177.2 million to approximately $308 million. Considering the historical and expected cash flows of Arnold and Total, U.S. Xpress' consolidated fixed-charge coverage and senior-leverage ratios are expected to remain well within the limits of the U.S. Xpress' primary credit agreement.
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