Smithway Motor Xpress Corp. NASDAQ:SMXC), Fort Dodge, Iowa, announced financial and operating results for the quarter ended March 31, 2005. Operating revenue increased approximately 14.0%
to $49.7 million from $43.6 million for the corresponding quarter in 2004. Operating revenue, excluding fuel surcharge revenue of $4.9 million, increased approximately 7% to $44.8 million from $41.8 million, excluding fuel surcharge revenue of $1.8 million, for the corresponding quarter in 2004. Net earnings were $503,000, or $0.10 per basic and diluted share, compared with net earnings of $335,000, or $0.07 per basic and diluted share, for the same quarter in 2004.
Net earnings, excluding unusual items, were $503,000, or $0.10 per basic and diluted share, compared with net loss of $392,000, or $0.08 per basic and diluted share, for the same quarter in 2004. (Net earnings for the 2004 quarter included $727,000, or $0.15 per basic and diluted share, of tax-free life insurance proceeds. Without the life insurance proceeds, our net loss for the 2004 quarter would have been $392,000, or $0.08 per basic and diluted share.)
G. Larry Owens, President and Chief Executive Officer, commented, "Inclement weather and seasonally lower freight in the winter months typically cause financial performance of trucking companies to suffer during the first and last quarter of the calendar year. In light of this seasonality, we are pleased with our earnings this quarter which exceeded our expectations and represent our best first quarter performance in the past six years. Our first quarter 2005 revenue, excluding fuel surcharge revenue, exceeded the revenue from the first quarter of 2004 by $3.0 million, a 7.3% improvement, resulting from a 3.19% increase in weighted average tractors and a 3.44% increase in our truck production. For the quarter, average revenue per seated tractor per week increased by $91.29, 3.44%, compared to the first quarter of 2004 primarily due to a $0.12 increase in average revenue per loaded mile.
"During the quarter, we reduced our operating ratio by more than 300 basis points as compared to the first quarter of 2004. Increased freight rates more than offset increased operating costs. Average fuel prices increased 30% to $1.96 per gallon this quarter compared to $1.50 per gallon in the first quarter of 2004. Increased fuel surcharge revenue mitigated approximately 79% of this price increase. On two occasions since the third quarter of 2004 we have increased driver wages in response to the market. We continually monitor expenses and have increased our truck to non-driver employee ratio to 4.97 during the first quarter of 2005 from 4.51 during the first quarter of 2004, a 10% improvement. Additionally we have reduced our tractor-to-trailer ratio by disposing of underutilized trailers and have eliminated two small terminals which we determined were not cost effective in our operation.
"By continually increasing freight rates, conservatively managing expenses, and maintaining our unwavering emphasis on safety, we expect further improvement in our earnings and operating ratio."
Smithway is a truckload carrier that hauls diversified freight nationwide, concentrating primarily on the flatbed segment of the truckload market.