The trucking company USA truck on Friday said it has reached an agreement with its largest shareholders who hold approximately a 28% stake in the company.
The deal with United Shareholders for the Benefit of USAK, formed by Baker Street Capital Management and Stone House Capital Management, was made on May 6. It expands the Arkansas-based company’s board of directors to nine and it will appoint Vadim Perelman, managing partner and chief investment officer of Baker Street Capital, and Thomas Glaser to the board.
The United Shareholders have agreed to vote all of their shares for the election of William H. Hanna and James D. Simpson, III as directors and in favor of the other proposals submitted for stockholder approval at the 2014 annual meeting on Friday, though a company release did not provide details on the proposals.
United Shareholders has also agreed to certain customary standstill provisions through the date that is 10 days prior to the deadline for submission of stockholder nominations for the annual meeting.
Both groups are wanting more input with USA Truck management about company operations and ownership.
"We welcome both Vadim Perelman and Tom Glaser to the Board. We expect Vadim to be a constructive member of our Board who will add valuable financial and strategic expertise that will help us accelerate the execution of our turnaround plan,” said USA Truck Chairman Robert A. Peiser. “Tom has been a senior transportation executive for almost three decades and served as a consultant to USA Truck in 2012 and as interim chief operating officer in 2013. His deep knowledge of the trucking industry and USA Truck, combined with his sound judgment and professionalism, will also further the company's turnaround plan."
USA Truck has had less than stellar financial results as of late, with it reporting another loss in the first quarter of this year, following a larger one the same time a year earlier. In the final quarter of 2013, it losses widened to $4.6 million. Also last year it was a takeover target by Knight Transportation, due to its poor financial performance, with it later giving up pursuit and the two sides reaching a settlement.