USA Truck Inc., an Arkansas-based medium-haul, common and contract carrier, announced operating revenues, before fuel surcharge, of $72,265,273 for the quarter ended June 30, 2003,
an increase of 4.8% from $68,924,995 for the same quarter of 2002.
Net income increased 153.8% to $1,853,054 for the second quarter of 2003, compared to net income of $730,149 for the same quarter of 2002. Diluted earnings per share for the quarter ended June 30, 2003 increased 150% to $0.20 compared to $0.08 for the same quarter of 2002.
For the six months ended June 30, 2003, operating revenues, before fuel surcharge, increased 5.7% to $137,979,387, from $130,570,440 for the same period of 2002. Earnings decreased 12.3% to $704,751 for the six months ended June 30, 2003, compared to $804,002 for the same period of 2002. Diluted earnings per share for the six months ended June 30, 2003 decreased 12.3% to $.08 from $.09 for the same period of 2002.
In comparing the financial results, Robert M. Powell, chairman and CEO of the company, said, "We continue to see margin improvements through our ongoing campaign to address the cost side of our business, most notably in the area of wages, where several years of effort to reign in driver pay are now paying dividends. Fuel prices have also been relatively stable within ranges where our fuel surcharge has been sufficient to offset most of the additional costs brought about by fuel prices lingering above historical averages.
"While margins are improving, there are still a few cost areas we are addressing. First, revenue equipment depreciation is up because of the extended lives and lower residual values on a large portion of our tractor fleet resulting from the recent depression in the used equipment markets. We have begun trading those older tractors for new ones and are seeing early signs of recovery in those markets as evidenced by our improved gains on disposal of property and equipment. However, returning the fleet to its historical average age will take several quarters, during which depreciation will remain higher than normal, as will maintenance costs.
"Second, we have seen tightening in the driver markets despite the high national unemployment rates. Increased competition for drivers, coupled with increased driver turnover due to inconsistent tractor utilization, has resulted in an increase in recruiting costs, though our tractor fleet was almost fully manned during the second quarter."