On its earnings conference call with analysts, truckload (TL) carrier USA Truck, Inc. (NASDAQ: USAK) management team said that they are hearing positive feedback from customers regarding a resumption in activity.They said that more than 80% of the company's revenue comes from customers that have been deemed "essential" and that those customers are still shipping freight at pre-COVID-19 levels. Further, some nationwide retailers are starting up large inventory pushes and the company is hearing some positive news from customers regarding inbound port traffic. Freight from the company's non-essential customers has been off by half during the pandemic.March was the best month the carrier has had since March 2019 and April remained positive from a consolidated operating standpoint.They did say that they have taken on more spot freight to keep their trucks full. Outside spot freight currently accounts for 15% of revenue and it has risen to as high as 20% in recent weeks. Spot freight was 10% of revenue in the first quarter and 9% of revenue in the fourth quarter. Historically, spot freight accounts for less than 5% of USA Truck's business.Logistics gross margins fell dramatically in the first quarter, but have bounced back to low-teen percentages with "robust" activity in April and into May.The Van Buren, Arkansas-based carrier reported an adjusted first-quarter 2020 net loss of $2.2 million, or $0.26 per share, $0.10 better than analysts' expectations. This was the third consecutive quarterly loss for the company. In 2019, USA Truck reported an adjusted net loss of $4.5 million in the fourth quarter and a $1.1 million loss in the third quarter.First quarter 2020 TL revenue was off slightly year-over-year at $94 million as average seated tractors increased 5.9% or 104 units, offset by a 7.1% decline in revenue per loaded mile at $2.09. Revenue per tractor per week declined 4.5% to $3,223. The division reported an adjusted operating loss of $1.3 million with a 101.5% adjusted operating ratio, 430 basis points worse year-over-year. Key Performance Indicators – USA TruckManagement said that its dedicated revenue increased 21% year-over-year and that the business is "performing at industry-comparable results."View more earnings on USAKManagement laid out several initiatives on its fourth quarter 2019 earnings call to improve asset utilization and increase revenue per truck per week by $300. At the time, they also expected to capture another $150 in the weekly revenue metric through network optimization initiatives and improved driver team capabilities designed to reduce driver turnover. All of these initiatives were reiterated on the today's call.Headcount was reduced 8% in the fourth quarter; it is now down approximately 10% year-over-year. The company has also shuttered its maintenance facility in Van Buren, which should provide an expense tailwind."During the first quarter, many of our operational initiatives took hold as loaded miles per available truck increased, empty miles decreased and unseated truck count metrics improved. We also made significant progress in our move to regionalization as we fully staffed our teams in the operating regions," said President and CEO James Reed.The logistics division reported a 13.6% year-over-year decline in revenue at $35.8 million. Load count declined 1.4% with revenue per load falling 12.3%. Gross margin deteriorated 740 basis points to 11.1% as the cost of purchased transportation, or truck capacity, declined at a slower rate than rates per load. The division posted a $624,000 adjusted operating loss.Logistics volumes improved toward the end of the first quarter, a trend management expects to continue. Loads were up 5.4% sequentially from the fourth quarter.Liquidity and balance sheet USA Truck ended the quarter with $85,000 in cash and $196.2 million in net debt and lease liabilities. The carrier's availability under its credit facility fell below the 20% threshold required in its lending agreement, potentially limiting its financial flexibility for things like investments, hedging, prepayment of debt, dividends and share repurchases. USA Truck responded by lowering its credit facility limit by $55 million to $170 million, which increased available borrowing to an amount greater than the 20% threshold, satisfying the requirement.Credit availability was $34 million on April 20, the date the facility was amended. Additionally, the carrier has $75 million of borrowing accessible on an accordion feature of its lending agreement and could access borrowing collateralized by its accounts receivable by accelerating payment terms through incentives. The reduced facility is expected to save the carrier approximately $100,000 in fees annually.At the end of the quarter, USA Truck's net debt-to-earnings before interest, taxes, depreciation, amortization and rent (EBITDAR) was 4.2x, compared to 3.7x at the end of the fourth quarter. The company lists one financial covenant in its annual 10-k filing with the U.S. Securities and Exchange Commission. If the company's excess credit availability falls below a 10% threshold, the carrier is required to maintain a consolidated fixed charge coverage ratio – a measure of a company's ability to pay its debt, interest and leases – of at least 1:1.On the call, Zachary King was formally introduced as the company's new CFO. On April 22, King replaced former finance head Jason Bates, who left to join flatbed carrier Daseke Inc. (NASDAQ: DSKE) in the same role. King joined USA Truck in 2015, most recently serving as vice president and the company's controller.Shares of USAK are up 15% in early trading on the report.See more from Benzinga * 'Lots Of Unknowns' Facing Flatbed Market, Says Daseke * Daseke Appoints New CFO * P.A.M. Transportation Lays off 75 Employees, Mostly Nondrivers(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be...
USA Truck (USAK) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Here are 4 stocks added to the Zacks Rank 5 (Strong Sell) List today
In this article we are going to estimate the intrinsic value of USA Truck, Inc. (NASDAQ:USAK) by taking the expected...
USA Truck to Announce First Quarter 2020 Results on May 7, 2020
Daseke Inc. (NASDAQ: DSKE), the nation's largest flatbed carrier announced that Jason Bates will fill its vacant chief financial officer position effective April 27.On Wednesday, truckload (TL) carrier USA Truck Inc. (NASDAQ: USAK) said that Bates is departing to "pursue other opportunities." Zachary King, the company's corporate controller, will succeed Bates as CFO."We are excited to welcome Jason to Daseke. Jason brings both transformational transportation experience, as well as a strong track record with one of the largest and most sophisticated companies in our industry," said Daseke CEO Chris Easter. "I am excited to be joining the team at Daseke, which is not only a highly respected niche market leader, but a company that is repositioning itself to be a best-in class organization through operational excellence," said Bates. Daseke has been looking for a CFO since September 2019, when Bharat Mahajan stepped down. At the time, the company said that it was going to fill the role on an interim basis with an advisory consultant while it focused on finding a new CEO.In February, interim CEO Chris Easter, became the permanent replacement for Don Daseke, who stepped down last summer.Earlier this month, Daseke announced that Chief Accounting Officer Angie Moss will leave at the end of May.Bates joins Daseke amid a multi-phase restructuring.After a decade of acquisitions, the company is now focused on streamlining operations and reducing its cost structure. In its fourth quarter 2019 earnings report, the carrier said the restructuring is on track. The company has trimmed tractors, trailers and non-driver headcount by 8% each. Additionally, the number of separately operated flatbed companies was reduced from 16 to 13 with the expectation that operating income would improve by $30 million on an annual run rate by the end of March.The second phase of the improvement plan is expected to generate an additional $15 million in operating income by the end of 2020. It will see further operational streamlining and roll another three operating units into existing Daseke companies."His [Bates] extensive corporate finance experience will be an invaluable asset to both our finance team and to the Daseke executive leadership team" Easter said.Bates was granted options to purchase nearly 410,00 shares at an exercise price of $1.38 per share as well as 388,500 performance stock units, which are subject to vesting requirements and the company's share price reaching certain thresholds."I intend to bring a data-oriented, process improvement mindset which should complement the great work the Daseke team has already implemented over the last nine months," Bates said. "Further, I will prioritize continued deleveraging and balance sheet improvement efforts," Bates concluded.Bates joined USA Truck in April of 2017. Prior to that he served as the vice president of finance and investor relations at Swift Transportation Company.Photo Credit: WTI Transport/DasekeSee more from Benzinga * Tight Capacity Will Drive Year-End Snapback In Trucking Markets: TIA Economist * CSX Seeks To Manage Expenses And Costs * Food Supply Chain In Peril As Plants Close Amid COVID-19 Pandemic(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Q1 2020 USA Truck Inc Earnings Call
James Reed has been the CEO of USA Truck, Inc. (NASDAQ:USAK) since 2017. This analysis aims first to contrast CEO...
USA Truck (USAK) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Another tough quarter for USA Truck Inc. (NASDAQ: USAK) has prompted the company to announce more organizational changes, including an 8% reduction in nondriver staff. In an earnings release filed after the market close on Thursday, USA Truck reported a fourth-quarter 2019 adjusted loss of $0.52 per share or $4.5 million, compared to analysts' expectations of a $0.08-per-share loss. The Arkansas-based truckload (TL) carrier reported an 8% year-over-year decline in TL revenue and revenue per truck per week, which declined to $3,163.
USA Truck Reports First Quarter 2020 Results
The $800 billion trucking industry scrambles to keep supply chains moving as coronavirus triggers skyrocketing demand for necessities.
VAN BUREN, Ark.--(BUSINESS WIRE)--USA Truck changes venue for annual meeting of stockholders to virtual only participation.
Q4 2019 USA Truck Inc Earnings Call
Shares of truckload (TL) carrier USA Truck Inc. (NASDAQ: USAK) are off more than 20% a day after the company reported a $4.5 million fourth-quarter loss. Since new management arrived in 2017, the carrier has undergone a myriad of initiatives aimed at improving tractor utilization and driving revenue per tractor per week higher. With the latest worse-than-expected loss, management provided more detail around the company's strategic objectives.
USA Truck changes venue for annual meeting of stockholders to virtual only participation.
USA Truck Appoints Zachary King Senior Vice President and Chief Financial Officer
CHICAGO and VAN BUREN, Ark., Feb. 11, 2020 -- USAT Capacity Solutions (Nasdaq: USAK), a leading capacity solutions provider headquartered in Van Buren, Arkansas, and.
USA Truck (USAK) delivered earnings and revenue surprises of -420.00% and -5.19%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?