Trucking and logistics provider USA Truck has posted its first profit for the first time in three years, according to second quarter numbers it has released.
Net income was $700,000, or 7 cents per diluted share, compared to a net loss of $1.4 million, or a loss of 14 cents per share, for the same quarter of 2013. Total base revenue increased 12.1% to $125. from $111.5 million during the same time periods for the Arkansas-based operation.
“While continuing the work of implementing our turnaround plan, the progress we are making is evident in virtually every area of our business,” said President and CEO John Simone. “Despite the harsh winter that impacted the trucking industry as the year began, our results, on an adjusted basis, for the first six months of 2014 are also positive, with adjusted earnings per share of 7 cents compared to a loss of 38 cents per share in last year’s period.”
He said the company’s improved second-quarter performance was driven by a 12.1% increase in base revenue, while operating expenses net of fuel surcharge collections increased only 7.4%, resulting in a 410-basis point improvement in operating.
Trucking revenue, excluding fuel surcharge, increased 2.2% to $83.2 million, while its Strategic Capacity Solutions revenue rose 39.1% to $41.8 million.
“Our asset-light Strategic Capacity Solutions business was an especially important contributor, turning in a second consecutive record quarter,” Simone said. “This performance was made possible by crisp execution within this highly efficient service against the backdrop of a market characterized by strengthening demand and tight capacity. Our SCS segment accounted for over one-third of our consolidated base revenue during the quarter, substantially strengthening and diversifying our integrated business model.”
He said the trucking operation increased revenue per total mile by 5.7% and grew miles per seated tractor per week by 1.3% to their highest level in more than three years.
“Although fixed costs were pressured during the quarter by elevated employee medical benefit plan costs, we achieved improvements in critical areas such as insurance and claims, fuel and maintenance costs,” said Simone. “We also took steps we believe will increase our seated truck count, which remains one of management’s top priorities as the availability of qualified drivers continues to be problematic across the truckload industry.”
There is more information on the USA Truck website.