Truckload carrier U.S. Xpress Enterprises Inc., Chattanooga, Tenn., announced operating revenue and earnings for the second quarter ended June 30, 2005.

Revenue for the second quarter of 2005 increased 3.5% to $279.9 million compared with $270.3 million in the second quarter of 2004. The company reported net income of $1.9 million, or $0.12 per diluted share, before a one-time pre-tax charge of $2.8 million related to the sale and exit of its airport-to-airport business. After the one-time charge, the company reported net income of $482,000, or $0.03 per diluted share, compared with net income of $4.2 million, or $0.30 per diluted share, in the prior-year period.
Meanwhile, the company announced that its board of directors authorized the repurchase up to $15 million of its Class A common stock. The stock may be repurchased on the open market or in privately negotiated transactions at any time until July 31, 2006, at which time, or prior thereto, the board may elect to extend the repurchase program.
For the six months ended June 30, 2005, revenue increased 8.7% to $549.0 million from $505.0 million in the prior-year period. For the first six months of 2005, the company reported a net loss before the one-time charge, of $196,000, or $0.01 per diluted share, compared with net income of $5.0 million, or $0.35 per diluted share, for the prior-year period. After the charge, the Company reported a net loss of $1.6 million, or $0.10 per diluted share, for the first six months of 2005.
During the quarter, truckload revenue, excluding the effect of fuel surcharges, declined slightly to $222.4 million from $223.8 million a year ago. Truckload operating income for the quarter decreased from $9.9 million in 2004 to $7.9 million due in part to an approximate 32% increase in fuel prices which, after fuel surcharges, negatively impacted operating income by approximately $1.5 million, or $0.05 per share, when compared with the prior year quarter. The effect on truckload revenues of a 9.7% decline in average tractors was largely
offset by a 6.2% increase in rate per mile and the growth in the company's expedited rail service revenue.
Co-Chairman, Patrick Quinn, stated, "Our consolidated earnings results for the quarter were adversely impacted by the one-time charge of $2.8 million associated with the sale and exit of our airport-to-airport business in the quarter plus an operating loss of $2.8 million incurred by Xpress Global largely as a result of losses in our airport-to-airport operation prior to its sale and shutdown on May 31, 2005. Although truckload freight demand in the second quarter was lower relative to the strong demand experienced in 2004, we experienced strengthening demand late in the quarter. Looking forward, we anticipate improving freight demand for the remainder of 2005 in the face of constrained supply of seated tractor capacity within the industry. We are optimistic that the improved freight environment, coupled with the anticipated success in our ongoing initiatives to increase our seated trucks, achieve selected rate increases, and improve our freight mix will enable us to realize improved truckload operating margins through the remainder of 2005 versus our 2005 second quarter performance. Finally, with the exit from our airport-to-airport business, results at our Xpress Global operation should show significant improvement over the current quarter."