USA Truck Inc., an Arkansas-based carrier, reported operating revenues, before fuel surcharge, of $65,714,114 for the quarter ended March 31, 2003,
an increase of 6.6% from $61,645,445 for the same quarter of 2002.
Earnings decreased to a net loss of $1,148,303 for the first quarter of 2003, compared to net income of $73,853 for the same quarter of 2002. Diluted earnings per share for the quarter declined to a net loss of $0.12 compared to net income of $0.01 for the same quarter of 2002.
"We continue to experience ups and downs as we execute our long-term recovery plan," said Robert M. Powell, chairman and CEO of the USA Truck. "Though there were several positive developments, the first quarter results were adversely affected by three primary factors."
Powell cited harsh late winter weather throughout the U.S.; record high fuel prices (up 36.8%); and unfavorable insurance claims activity, which he said, had the single most significant impact on first quarter earnings, after the effects of the fuel surcharge.
"Over the past six months, we have litigated accident claims that occurred two to three years ago, and have experienced an unusually high amount of adverse verdicts and settlements. While we will do everything possible to control claims costs during the litigation process, our long-term strategy is to minimize accidents through our driver safety, selection and training programs," Powell said.
"All three of the factors mentioned above were unexpected. However, a few other factors were planned for, including higher maintenance costs on our aging tractor fleet and higher driver recruiting costs in the wake of our December 2002 driver pay reduction," Powell said. "We should experience some relief on maintenance costs beginning in the second quarter this year as we resume our program of trading in old tractors for new ones after a 15-month hiatus that we instituted in early 2002 because of the severely depressed resale market for used equipment.
"Recruiting costs should also see some relief now that we have attained our March 31, 2003 goal of replacing drivers lost due to the pay reduction."