U.S. Xpress Enterprises Inc. said revenue for the first quarter of 2007 increased 20 percent to $360.9 million compared with $299.7 million in the first quarter of 2006. The company reported a net loss of $2.6 million
for the first quarter compared with net income of $734,000 in the prior-year period.
During the first quarter, truckload revenue - excluding the effect of fuel surcharges - increased 22 percent to $295.1 million from $241.3 million a year ago, while truckload operations reported an operating loss of $1.2 million, compared with operating income of $4.4 million in the first quarter of 2006.
Patrick Quinn, co-chairman, said, "Consistent with the early first-quarter trends we cited in our February conference call and our announcement last week, the truckload operating environment proved to be much more difficult than a year ago. Profitable operating results in both our truckload and Xpress Global Systems operating segments in March were not sufficient to overcome the operating losses of our truckload segment in January and February, as the quarter was adversely impacted by lower than expected freight demand, severe winter weather in key high-traffic markets that hampered tractor utilization, and rising fuel prices in the second half of the quarter. As we have demonstrated the last couple of years, the operating leverage in our business model is substantial. Unfortunately, the leverage did not work in our favor this quarter due in part to the difficult truckload environment, as well as the normal seasonality we experience in our business in the first quarter.
"On a positive note, Xpress Global achieved its fifth consecutive quarter of improved year-over-year quarterly operating income. Additionally, we have completed most of our pre-buy of new tractors with 2006 engines. Upon completion of the pre-buy, the average age of the company's over-the-road tractor fleet will be approximately 17 months. As a result, over the next 12 months, we expect to reduce capital expenditures on revenue equipment and utilize our cash flow to reduce our outstanding debt."