USX US Xpress Enterprises Inc

 

U.S. Xpress Enterprises, Inc. (NYSE: USX) today announced financial and operating results for the second quarter of 2022.

Second Quarter 2022 Highlights compared to Second Quarter 2021

• Operating revenue of $553.7 million compared to $475.0 million
• Operating income of $6.5 million compared to $8.9 million
• Adjusted operating income1 of $2.5 million compared to $8.9 million
• Loss per share of $0.01 compared to earnings per diluted share (EPS) of $0.37
• Adjusted loss per share1 of $0.05 compared to EPS of $0.08

“Second quarter highlights included sequential overall fleet growth and improved margins in our Brokerage segment and Dedicated division,” said Eric Fuller, President and CEO. “However, these positive accomplishments were partially offset by higher net fuel and claims expense in the quarter, particularly in our OTR division. While our Variant fleet grew to approximately 1,900 tractors, its results continued to lag due to lower utilization and higher turnover. Looking ahead to the third quarter, our immediate priorities remain improving utilization in our Variant fleet, lowering our fixed costs per tractor and growing our overall fleet size.”

Second Quarter 2022 Financial Performance

Quarter Ended June 30, Six Months Ended June 30,

2022

2021

2022

2021

Operating revenue

$

553,703

 

$

475,021

 

$

1,070,891

 

$

925,781

 

Revenue, excluding fuel surcharge

$

479,185

 

$

437,533

 

$

943,512

 

$

855,174

 

Operating income

$

6,468

 

$

8,906

 

$

6,258

 

$

16,904

 

Net income (loss) attributable to controlling interest

$

(554

)

$

19,096

 

$

(9,456

)

$

21,634

 

Earnings (losses) per diluted share

$

(0.01

)

$

0.37

 

$

(0.19

)

$

0.42

 

Adjusted net income (loss) attributable to controlling interest1

$

(2,300

)

$

4,185

 

$

(3,359

)

$

6,723

 

Adjusted earnings (losses) per diluted share1

$

(0.05

)

$

0.08

 

$

(0.06

)

$

0.13

 

Operating Ratio Truckload operating ratio

 

99.8

%

 

97.7

%

 

99.9

%

 

97.9

%

Brokerage operating ratio

 

93.7

%

 

99.8

%

 

97.2

%

 

99.2

%

Operating ratio

 

98.8

%

 

98.1

%

 

99.4

%

 

98.2

%

Adjusted operating ratio1

 

99.5

%

 

98.0

%

 

99.4

%

 

98.0

%

1 Second quarter 2022 adjustments included a pretax $4.0 million gain on sale of a terminal and a pretax non-cash mark-to-market adjustment of $1.8 million related to a strategic investment. See "Non-GAAP Financial Measures" section of this earnings release for more detail including GAAP to Non-GAAP reconciliations

Operating revenue was $553.7 million, an increase of $78.7 million compared to the second quarter of 2021. The increase was a combination of increased revenue in the Company’s Truckload segment of $49.6 million and an increase of $37.0 million in fuel surcharge revenue partially offset by a decrease in Brokerage segment revenue of $7.9 million. Revenue, excluding the impact of fuel surcharge revenues increased $41.7 million to $479.2 million, an increase of 9.5% compared to the second quarter of 2021.

Operating income, on a GAAP basis, was $6.5 million for the second quarter of 2022 compared to $8.9 million in the second quarter of 2021 on both a GAAP and adjusted basis1. Second quarter 2022 operating expenses included an unfavorable settlement resulting in increased claims expense of $3.4 million from an insurance claim which originated prior to our 2018 IPO and for which the primary liable party lacked sufficient assets to pay. In addition, on an adjusted basis1, second quarter 2022 operating income excluded a $4.0 million gain on the sale of a terminal which was leased to a former subsidiary.

Net loss attributable to controlling interest for the second quarter of 2022 was $0.6 million, or $0.01 per diluted share, compared to net income of $19.1 million, or $0.37 per diluted share, in the second quarter of 2021. As a reminder, second quarter 2021 net income attributable to controlling interest benefitted from a $14.9 million, net of tax unrealized gain on a strategic equity investment.

Adjusted net loss attributable to controlling interest1 was $2.3 million or $0.05 per diluted share and excludes an unrealized loss on a strategic equity investment of $1.4 million, net of tax, and the gain on sale of the terminal mentioned above. This compares to net income attributable to controlling interest of $4.2 million, or $0.08 per diluted share, in the second quarter of 2021.

Variant Update

The Company continues to grow Variant’s fleet, exiting the quarter with 1,889 tractors comprising approximately half of the overall OTR division. In the second quarter, Variant generated revenue of $87.7 million, net of fuel surcharge revenue, a 66.0% increase compared to the same period of the prior year. The year-over-year increase in revenue was primarily due to a 72.4% increase in seated tractors in the fleet.

Sequentially, Variant grew its fleet by approximately 200 tractors while average revenue per tractor declined primarily due to a lower rate per mile caused by the decline in the spot market during the quarter, which was partially offset by higher contract rates in the quarter.

Variant Key Metrics

Quarter Ended, June 30, March 31,

2022

2022

Ending truck count

 

1,889

 

 

1,691

 

Preventable accidents, per mm

 

7.87

 

 

8.12

 

Turnover

 

150

%

 

148

%

Average revenue miles per tractor per week (Utilization)

 

1,573

 

 

1,593

 

Average revenue per tractor per week

$

3,863

 

$

4,065

 

Mr. Fuller commented, “Sequentially, we were successful in continuing to grow our Variant fleet, and we continued to focus on restoring Variant’s utilization to its previous levels. We lost some of our momentum in revenue productivity due to the rapid deterioration in the spot market which more than offset the higher contract rates in the quarter. Additionally, we expect the progress that we made in the quarter bringing more structure and discipline to our fleet operations will benefit utilization and driver turnover in the coming quarters, both of which are critical to improving our overall financial results.”

Truckload Segment

Quarter Ended June 30, Six Months Ended June 30,

2022

2021

2022

2021

Over-the-road Average revenue per tractor per week1

$

3,909

$

3,837

$

3,875

$

3,778

Average revenue per mile1

$

2.543

$

2.278

$

2.544

$

2.223

Average revenue miles per tractor per week

 

1,537

 

1,684

 

1,523

 

1,699

Average tractors

 

3,700

 

3,318

 

3,677

 

3,369

Dedicated Average revenue per tractor per week1

$

4,913

$

4,336

$

4,813

$

4,243

Average revenue per mile1

$

2.883

$

2.448

$

2.849

$

2.420

Average revenue miles per tractor per week

 

1,704

 

1,772

 

1,690

 

1,753

Average tractors

 

2,655

 

2,531

 

2,620

 

2,603

Consolidated Average revenue per tractor per week1

$

4,328

$

4,053

$

4,266

$

3,981

Average revenue per mile1

$

2.694

$

2.354

$

2.679

$

2.311

Average revenue miles per tractor per week

 

1,607

 

1,722

 

1,592

 

1,723

Average tractors

 

6,355

 

5,849

 

6,297

 

5,972

1 Excluding fuel surcharge revenues

The Truckload segment generated revenue, excluding the impact of our fuel surcharge program, of $390.7 million compared to $341.0 million in the second quarter of 2021. This increase in Truckload segment revenue was due to a 14.4% increase in average revenue per mile combined with an increase in average tractors in the quarter of 506 which was partially offset by an 6.7% decrease in revenue miles per tractor.

Truckload operating income was $0.9 million compared to $8.7 million in the second quarter of 2021 on a GAAP basis. The decrease in Truckload operating income was primarily due to lower utilization and increased net fuel expense in the quarter, while the Truckload rate increases covered the general inflation in the business on a year-over-year basis.

Adjusted truckload operating loss1, which excludes the $4.0 million gain on sale of the terminal mentioned above was $3.1 million in the second quarter of 2022 compared to adjusted Truckload operating income1 of $8.7 million in the second quarter of 2021.

Brokerage Segment

Quarter Ended June 30, Six Months Ended June 30,

2022

2021

2022

2021

Brokerage revenue

$

88,526

 

$

96,488

 

$

182,454

 

$

178,328

 

Gross margin %

 

20.6

%

 

12.0

%

 

16.9

%

 

12.9

%

Operating income

 

5,558

 

 

161

 

 

5,075

 

 

1,432

 

Operating ratio

 

93.7

%

 

99.8

%

 

97.2

%

 

99.2

%

Load count

 

33,522

 

 

44,676

 

 

75,634

 

 

86,861

 

Percentage of loads processed on digital platform

 

90.3

%

 

74.7

%

 

87.5

%

 

70.6

%

The Brokerage segment generated revenue of $88.5 million, which was a decline of 8.3% compared to the second quarter of 2021. The decrease in Brokerage segment revenue was driven by a 25.0% decrease in load count which more than offset the 22.3% increase in revenue per load compared to the second quarter of 2021.

Segment operating income was $5.6 million compared to $0.2 million in the second quarter of 2021. The increase in Brokerage segment operating income was primarily the result of lower purchased transportation expense in the second quarter as compared to the second quarter of 2021.

Liquidity and Capital Allocation

At the end of the second quarter of 2022, the Company had $155.7 million of liquidity (defined as cash balances plus availability under the Company’s revolving credit facility), $418.5 million of net debt (defined as long-term debt, including current maturities, less cash balances), and $270.4 million of stockholders’ equity.

Year-to-date, through June 30, 2022, capital expenditures, net of proceeds were $66.9 million, and exclude equipment financed under operating leases. As a reminder, the majority of the Company’s annual capital expenditures relate to tractors and trailers, for which the Company generally uses a combination of loan financing agreements and finance lease arrangements to fund these acquisitions.

Outlook

Mr. Fuller commented, “Looking ahead to the third quarter, we are focused on continued overall fleet growth, restoring Variant’s utilization to its previous levels which we believe will drive improvement in Variant’s other key metrics as well as a continued focus on cost discipline and allocating capital to projects which we believe will drive the business forward. Our focused efforts in these areas are key to demonstrating the operating leverage potential of our model.”

Conference Call Information

The Company will host a conference call and simultaneous webcast to discuss its second quarter 2022 financial and operating results on August 3, 2022, at 5:00 p.m. ET. The conference call can be accessed live by dialing 1-877-423-9813 or, for international callers, 1-201-689-8465 and asking to be joined to the US Xpress Second Quarter 2022 Earnings Conference Call. The webcast can be accessed on the Investor Relations website at investor.usxpress.com.

Supplemental Financial Information

Additional information regarding the Company’s operating results is provided below as well as on the Company’s investor page at investor.usxpress.com.

(1) Non-GAAP Financial Measures

In addition to our net income determined in accordance with U.S. generally accepted accounting principles (‘‘GAAP’’), we evaluate operating performance using certain non-GAAP measures, including Adjusted Operating Ratio, Adjusted Operating Income, Adjusted Net Income Attributable to Controlling Interest, and Adjusted EPS (on a consolidated and, as applicable, segment basis). Management believes the use of non-GAAP measures assists investors and securities analysts in understanding the ongoing operating performance of our business by allowing more effective comparison between periods. Further, management uses non-GAAP Adjusted Operating Ratio, Adjusted Operating Income, Adjusted Net Income Attributable to Controlling Interest, and Adjusted EPS measures on a supplemental basis to remove items that may not be an indicator of performance from period-to-period. The non-GAAP information provided is used by our management and may not be comparable to similar measures disclosed by other companies. The non-GAAP measures used herein have limitations as analytical tools and should not be considered measures of income generated by our business or discretionary cash available to us to invest in the growth of our business. You should not consider the non-GAAP measures used herein in isolation or as substitutes for analysis of our results as reported under GAAP. Management compensates for these limitations by relying primarily on GAAP results and using non-GAAP financial measures on a supplemental basis.

Non-GAAP Reconciliation - Adjusted Operating Income and Adjusted Operating Ratio (unaudited)   Quarter Ended June 30, Six Months Ended June 30, (in thousands)

2022

2021

2022

2021

GAAP Presentation: Total revenue

$

553,703

 

$

475,021

 

$

1,070,891

 

$

925,781

 

Total operating expenses

 

(547,235

)

 

(466,115

)

 

(1,064,633

)

 

(908,877

)

Operating income

$

6,468

 

$

8,906

 

$

6,258

 

$

16,904

 

Operating ratio

 

98.8

%

 

98.1

%

 

99.4

%

 

98.2

%

  Non-GAAP Presentation Total revenue

$

553,703

 

$

475,021

 

$

1,070,891

 

$

925,781

 

Fuel surcharge

 

(74,518

)

 

(37,488

)

 

(127,379

)

 

(70,607

)

Revenue, excluding fuel surcharge

 

479,185

 

 

437,533

 

 

943,512

 

 

855,174

 

  Total operating expenses

 

547,235

 

 

466,115

 

 

1,064,633

 

 

908,877

 

Adjusted for: Fuel surcharge

 

(74,518

)

 

(37,488

)

 

(127,379

)

 

(70,607

)

Impairment charges1

 

-

 

 

-

 

 

(2,970

)

 

-

 

Gain on sale of terminal2

 

4,002

 

 

-

 

 

4,002

 

 

-

 

Adjusted operating expenses

 

476,719

 

 

428,627

 

 

938,286

 

 

838,270

 

Adjusted operating income

$

2,466

 

$

8,906

 

$

5,226

 

$

16,904

 

Adjusted operating ratio

 

99.5

%

 

98.0

%

 

99.4

%

 

98.0

%

  1During the first quarter of 2022, we incurred a non-cash adjustment of $2,970 due to the write off of obsolete technology 2During the second quarter of 2022, we recognized a gain of $4,002 on sale of terminal which was leased to a former subsidiary   Non-GAAP Reconciliation - Truckload Adjusted Operating Income and Adjusted Operating Ratio (unaudited)   Quarter Ended June 30, Six Months Ended June 30, (in thousands)

2022

2021

2022

2021

Truckload GAAP Presentation: Total Truckload revenue

$

465,177

 

$

378,533

 

$

888,437

 

$

747,453

 

Total Truckload operating expenses

 

(464,267

)

 

(369,788

)

 

(887,254

)

 

(731,981

)

Truckload operating income

$

910

 

$

8,745

 

$

1,183

 

$

15,472

 

Truckload operating ratio

 

99.8

%

 

97.7

%

 

99.9

%

 

97.9

%

  Truckload Non-GAAP Presentation Total Truckload revenue

$

465,177

 

$

378,533

 

$

888,437

 

$

747,453

 

Fuel surcharge

 

(74,518

)

 

(37,488

)

 

(127,379

)

 

(70,607

)

Revenue, excluding fuel surcharge

 

390,659

 

 

341,045

 

 

761,058

 

 

676,846

 

  Total Truckload operating expenses

 

464,267

 

 

369,788

 

 

887,254

 

 

731,981

 

Adjusted for: Fuel surcharge

 

(74,518

)

 

(37,488

)

 

(127,379

)

 

(70,607

)

Impairment charges1

 

-

 

 

-

 

 

(2,235

)

 

-

 

Gain on sale of terminal2

 

4,002

 

 

-

 

 

4,002

 

 

-

 

Truckload Adjusted operating expenses

 

393,751

 

 

332,300

 

 

761,642

 

 

661,374

 

Truckload Adjusted operating income (loss)

$

(3,092

)

$

8,745

 

$

(584

)

$

15,472

 

Truckload Adjusted operating ratio

 

100.8

%

 

97.4

%

 

100.1

%

 

97.7

%

  1During the first quarter of 2022, we incurred a non-cash adjustment of $2,235 due to the write off of obsolete technology 2During the second quarter of 2022, we recognized a gain of $4,002 on sale of terminal which was leased to a former subsidiary Non-GAAP Reconciliation - Adjusted Net Income and EPS (unaudited)   Quarter Ended June 30, Six Months Ended June 30, (in thousands, except per share data)

2022

2021

2022

2021

GAAP: Net income (loss) attributable to controlling interest

$

(554

)

$

19,096

 

$

(9,456

)

$

21,634

 

Adjusted for: Income tax provision (benefit)

 

79

 

 

6,443

 

 

(2,070

)

 

8,093

 

Income (loss) before income taxes attributable to controlling interest

$

(475

)

$

25,539

 

$

(11,526

)

$

29,727

 

Unrealized loss (gain) on equity investment1

 

1,757

 

 

(20,191

)

 

10,120

 

 

(20,191

)

Gain on sale of terminal2

 

(4,002

)

 

-

 

 

(4,002

)

 

-

 

Gain on sale of equity method investment3

 

-

 

 

-

 

 

(1,258

)

 

-

 

Impairment charges4

 

-

 

 

-

 

 

2,970

 

 

-

 

Adjusted income (loss) before income taxes

 

(2,720

)

 

5,348

 

 

(3,696

)

 

9,536

 

Adjusted income tax provision (benefit)

 

(420

)

 

1,163

 

 

(337

)

 

2,813

 

Non-GAAP: Adjusted net income (loss) attributable to controlling interest

$

(2,300

)

$

4,185

 

$

(3,359

)

$

6,723

 

  GAAP: Earnings (losses) per diluted share

$

(0.01

)

$

0.37

 

$

(0.19

)

$

0.42

 

Adjusted for: Income tax expense attributable to controlling interest

 

-

 

 

0.12

 

 

(0.04

)

 

0.15

 

Income (loss) before income taxes attributable to controlling interest

$

(0.01

)

$

0.49

 

$

(0.23

)

$

0.57

 

Unrealized loss (gain) on equity investment1

 

0.03

 

 

(0.39

)

 

0.20

 

 

(0.39

)

Gain on sale of terminal2

 

(0.08

)

 

-

 

 

(0.08

)

 

-

 

Gain on sale of equity method investment3

 

-

 

 

-

 

 

(0.02

)

 

-

 

Impairment charges4

 

-

 

 

-

 

 

0.06

 

 

-

 

Adjusted income (loss) before income taxes

 

(0.06

)

 

0.10

 

 

(0.07

)

 

0.18

 

Adjusted income tax provision (benefit)

 

(0.01

)

 

0.02

 

 

(0.01

)

 

0.05

 

Non-GAAP: Adjusted earnings (losses) per diluted share attributable to controlling interest

$

(0.05

)

$

0.08

 

$

(0.06

)

$

0.13

 

  1During 2022 and 2021, we recognized an unrealized loss (gain) on a strategic equity investment 2During the second quarter of 2022, we recognized a gain of $4,002 on sale of terminal which was leased to a former subsidiary 3During the first quarter of 2022, we incurred a gain on sale related to an equity method investment in a former wholly owned subsidiary of $1,258 4During the first quarter of 2022, we incurred a non-cash adjustment of $2,970 due to the write off of obsolete technology

Forward Looking Statements

This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as "expects," "estimates," "projects," "believes," "anticipates," "plans," "intends," “outlook,” “strategy,” “optimistic,” “will,” “could,” “should,” “may,” “focus,” “seek,” “potential,” “continue,” “goal,” “target,” “objective,” derivations thereof, and similar terms and phrases. In this press release, such statements may include, but are not limited to, statements in the "Outlook" section, statements regarding the freight environment, expected rates, expected margins, future growth of our Variant fleet and overall fleet size, driver turnover, utilization in our Variant fleet, lowering fixed and other costs, allocating capital to projects that will drive the business forward, the expected impact of our Variant fleet and other initiatives, and any other statements concerning: any projections of earnings, revenues, cash flows, capital expenditures, compliance with financial covenants, or other financial items; any statement of plans, strategies, or objectives for future operations; any statements regarding future economic or industry conditions or performance; any statements regarding our responses to COVID-19 and the associated economic conditions; and any statements of belief and any statements of assumptions underlying any of the foregoing. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those in the forward-looking statements: general economic conditions, including inflation and consumer spending; political conditions and regulations, including future changes thereto; changes in tax laws or in their interpretations and changes in tax rates; future insurance and claims experience, including adverse changes in claims experience and loss development factors, or additional changes in management's estimates of liability based upon such experience and development factors that cause our expectations of insurance and claims expense to be inaccurate or otherwise impacts our results; impact of pending or future legal proceedings; future market for used revenue equipment and real estate; future revenue equipment prices and availability; future capital expenditures, including equipment purchasing and leasing plans and equipment turnover (including expected trade-ins); fleet age; future depreciation and amortization; changes in management’s estimates of the need for new tractors and trailers; future ability to generate sufficient cash from operations and obtain financing on favorable terms to meet our significant ongoing capital requirements; our ability to maintain compliance with the provisions of our credit agreement; freight environment, including freight demand, rates, capacity, and volumes; future asset utilization; loss of one or more of our major customers; our ability to renew dedicated service offering contracts on the terms and schedule we expect; surplus inventories, recessionary economic cycles, and downturns in customers' business cycles; strikes, work slowdowns, or work stoppages at the Company, customers, ports, or other shipping related facilities; increases or rapid fluctuations in fuel prices, as well as fluctuations in surcharge collection, including, but not limited to, changes in customer fuel surcharge policies and increases in fuel surcharge bases by customers; interest rates, fuel taxes, tolls, and license and registration fees; increases in compensation for and difficulty in attracting and retaining qualified professional drivers and independent contractors; independent contractors we contract could be deemed by regulators or the judicial process to be employees; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, intermodal, and brokerage (including digital brokerage) competitors; changes in regulatory requirements that increase costs, decrease efficiency, or reduce the availability of drivers; safety-related evaluations and rankings under the Federal Motor Carrier Safety Administration’s Compliance, Safety, Accountability program; increasing attention on environmental, social and governance matters; future safety performance; our ability to reduce, or control increases in, operating costs; future third-party service provider relationships and availability; execution of the Company’s current business strategy or changes in the Company’s business strategy; the ability of the Company’s infrastructure to support future organic or inorganic growth; our ability to identify acceptable acquisition candidates, consummate acquisitions, and integrate acquired operations; our ability to adapt to changing market conditions and technologies, including the future use of autonomous tractors; disruptions to our information technology; the cost of and our ability to effectively and efficiently implement technology initiatives; costs, diversion of management’s attention, and potential payments made in connection with the multiple class action lawsuits a stockholder derivative lawsuit arising out of our IPO; credit, reputational and relationship risks of certain of our current and former equity investments; the dual class structure of our common stock has the effect of concentrating voting control with certain members of the Fuller and Quinn families, which limits or precludes the ability of other stockholders to influence corporate matters; our ability to maintain effective internal controls without material weaknesses; and the impact of the recent coronavirus outbreak or other similar outbreaks. Readers should review and consider these factors along with the various disclosures by the Company in its press releases, stockholder reports, and filings with the Securities and Exchange Commission. We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information.

About US Xpress

Through its subsidiaries, U.S. Xpress Enterprises, Inc. offers customers over-the-road, dedicated, and brokerage services. Founded in 1985, the Company utilizes a combination of smart technology, a modern fleet of tractors and a network of highly trained, professional drivers to efficiently move freight for a wide variety of customers. U.S. Xpress implements a range of digital initiatives and technology to drive innovation in the industry, streamline the value chain for customers and improve the overall driver experience.

Condensed Consolidated Income Statements (unaudited) Quarter Ended June 30, Six Months Ended June 30, (in thousands, except per share data)

2022

2021

2022

2021

Operating Revenue: Revenue, excluding fuel surcharge

$

479,185

 

$

437,533

 

$

943,512

 

$

855,174

 

Fuel surcharge

 

74,518

 

 

37,488

 

 

127,379

 

 

70,607

 

Total operating revenue

 

553,703

 

 

475,021

 

 

1,070,891

 

 

925,781

 

Operating Expenses: Salaries, wages and benefits

 

181,418

 

 

144,500

 

 

350,446

 

 

286,503

 

Fuel and fuel taxes

 

89,253

 

 

43,783

 

 

154,296

 

 

84,187

 

Vehicle rents

 

24,336

 

 

21,547

 

 

48,630

 

 

43,010

 

Depreciation and amortization, net of (gain) loss

 

14,929

 

 

23,205

 

 

33,646

 

 

45,587

 

Purchased transportation

 

140,185

 

 

157,489

 

 

290,769

 

 

299,150

 

Operating expense and supplies

 

47,679

 

 

34,443

 

 

92,493

 

 

66,958

 

Insurance premiums and claims

 

23,401

 

 

18,933

 

 

43,540

 

 

40,710

 

Operating taxes and licenses

 

3,752

 

 

3,247

 

 

7,668

 

 

6,516

 

Communications and utilities

 

3,864

 

 

2,964

 

 

7,408

 

 

5,352

 

General and other operating

 

18,418

 

 

16,004

 

 

35,737

 

 

30,904

 

Total operating expenses

 

547,235

 

 

466,115

 

 

1,064,633

 

 

908,877

 

Operating Income

 

6,468

 

 

8,906

 

 

6,258

 

 

16,904

 

Other Expenses (Income): Interest expense, net

 

4,586

 

 

3,557

 

 

8,393

 

 

7,244

 

Other, net

 

1,757

 

 

(20,191

)

 

8,862

 

 

(20,191

)

 

6,343

 

 

(16,634

)

 

17,255

 

 

(12,947

)

Income (Loss) Before Income Taxes

 

125

 

 

25,540

 

 

(10,997

)

 

29,851

 

Income Tax Provision (Benefit)

 

79

 

 

6,443

 

 

(2,070

)

 

8,093

 

Net Income (Loss)

 

46

 

 

19,097

 

 

(8,927

)

 

21,758

 

Net Income attributable to non-controlling interest

 

600

 

 

1

 

 

529

 

 

124

 

Net Income (Loss) attributable to controlling interest

$

(554

)

$

19,096

 

$

(9,456

)

$

21,634

 

  Income (Loss) Per Share Basic earnings (losses) per share

$

(0.01

)

$

0.38

 

$

(0.19

)

$

0.43

 

Basic weighted average shares outstanding

 

51,221

 

 

50,334

 

 

51,036

 

 

50,156

 

Diluted earnings (losses) per share

$

(0.01

)

$

0.37

 

$

(0.19

)

$

0.42

 

Diluted weighted average shares outstanding

 

51,221

 

 

51,848

 

 

51,036

 

 

51,705

 

Condensed Consolidated Balance Sheets (unaudited) June 30, December 31, (in thousands)

2022

2021

Assets Current assets: Cash and cash equivalents

$

3,145

 

$

5,695

 

Customer receivables, net of allowance of $44 and $11, respectively

 

247,721

 

 

231,687

 

Other receivables

 

18,800

 

 

18,046

 

Prepaid insurance and licenses

 

11,654

 

 

13,867

 

Operating supplies

 

10,613

 

 

9,550

 

Assets held for sale

 

16,713

 

 

11,831

 

Other current assets

 

28,058

 

 

32,020

 

Total current assets

 

336,704

 

 

322,696

 

Property and equipment, at cost

 

927,939

 

 

890,933

 

Less accumulated depreciation and amortization

 

(377,926

)

 

(370,112

)

Net property and equipment

 

550,013

 

 

520,821

 

Other assets: Operating lease right-of-use assets

 

292,373

 

 

292,347

 

Goodwill

 

59,221

 

 

59,221

 

Intangible assets, net

 

23,956

 

 

24,129

 

Other

 

48,862

 

 

50,829

 

Total other assets

 

424,412

 

 

426,526

 

Total assets

$

1,311,129

 

$

1,270,043

 

Liabilities and Stockholders' Equity Current liabilities: Accounts payable

$

124,768

 

$

126,910

 

Book overdraft

 

4,438

 

 

7,096

 

Accrued wages and benefits

 

51,010

 

 

45,011

 

Claims and insurance accruals

 

46,042

 

 

44,309

 

Other accrued liabilities

 

5,550

 

 

5,962

 

Current portion of operating leases

 

92,833

 

 

88,375

 

Current maturities of long-term debt and finance leases

 

113,599

 

 

85,117

 

Total current liabilities

 

438,240

 

 

402,780

 

Long-term debt and finance leases, net of current maturities

 

308,069

 

 

290,392

 

Less debt issuance costs

 

(333

)

 

(357

)

Net long-term debt and finance leases

 

307,736

 

 

290,035

 

Deferred income taxes

 

21,384

 

 

24,301

 

Other long-term liabilities

 

25,431

 

 

14,457

 

Claims and insurance accruals, long-term

 

43,933

 

 

54,819

 

Noncurrent operating lease liability

 

201,784

 

 

205,362

 

Commitments and contingencies

 

-

 

 

-

 

Stockholders' Equity: Common stock

 

512

 

 

505

 

Additional paid-in capital

 

270,873

 

 

267,621

 

Retained earnings (deficit)

 

(1,016

)

 

8,440

 

Stockholders' equity

 

270,369

 

 

276,566

 

Noncontrolling interest

 

2,252

 

 

1,723

 

Total stockholders' equity

 

272,621

 

 

278,289

 

Total liabilities and stockholders' equity

$

1,311,129

 

$

1,270,043

 

Condensed Consolidated Cash Flow Statements (unaudited) Six Months Ended June 30, (in thousands)

2022

2021

Operating activities Net income (loss)

$

(8,927

)

$

21,758

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities: Deferred income tax provision (benefit)

 

(2,917

)

 

7,624

 

Depreciation and amortization

 

38,983

 

 

41,036

 

(Gains) losses on sale of property and equipment

 

(5,337

)

 

4,551

 

Share based compensation

 

2,965

 

 

3,791

 

Other

 

(926

)

 

381

 

Unrealized loss (gain) on investment

 

10,120

 

 

(20,191

)

Changes in operating assets and liabilities Receivables

 

(17,502

)

 

(27,163

)

Prepaid insurance and licenses

 

2,283

 

 

4,580

 

Operating supplies

 

(993

)

 

(724

)

Other assets

 

(4,789

)

 

(1,967

)

Accounts payable and other accrued liabilities

 

2,025

 

 

5,954

 

Accrued wages and benefits

 

5,807

 

 

771

 

Net cash provided by operating activities

 

20,792

 

 

40,401

 

Investing activities Payments for purchases of property and equipment

 

(94,448

)

 

(62,851

)

Proceeds from sales of property and equipment

 

27,527

 

 

47,660

 

Net cash used in investing activities

 

(66,921

)

 

(15,191

)

Financing activities Borrowings under lines of credit

 

262,100

 

 

138,812

 

Payments under lines of credit

 

(216,800

)

 

(123,812

)

Borrowings under long-term debt

 

44,514

 

 

38,116

 

Payments of long-term debt and finance leases

 

(44,191

)

 

(83,961

)

Payments of financing costs

 

-

 

 

(100

)

Tax withholding related to net share settlement of restricted stock awards

 

(431

)

 

(1,211

)

Proceeds from long-term consideration for sale of subsidiary

 

320

 

 

305

 

Proceeds from issuance of common stock under ESPP

 

725

 

 

538

 

Book overdraft

 

(2,658

)

 

5,873

 

Net cash provided by (used in) financing activities

 

43,579

 

 

(25,440

)

Net change in cash and cash equivalents

 

(2,550

)

 

(230

)

Cash and cash equivalents Beginning of year

 

5,695

 

 

5,505

 

End of period

$

3,145

 

$

5,275

 

Key Operating Factors & Truckload Statistics (unaudited)   Quarter Ended June 30, % Six Months Ended June 30, %

2022

2021

Change

2022

2021

Change Operating Revenue: Truckload1

$

390,659

 

$

341,045

 

14.5

%

$

761,058

 

$

676,846

 

12.4

%

Fuel Surcharge

 

74,518

 

 

37,488

 

98.8

%

 

127,379

 

 

70,607

 

80.4

%

Brokerage

 

88,526

 

 

96,488

 

-8.3

%

 

182,454

 

 

178,328

 

2.3

%

Total Operating Revenue

$

553,703

 

$

475,021

 

16.6

%

$

1,070,891

 

$

925,781

 

15.7

%

  Operating Income : Truckload

$

910

 

$

8,745

 

-89.6

%

$

1,183

 

$

15,472

 

-92.4

%

Brokerage

5,558

 

161

 

3352.2

%

5,075

 

1,432

 

254.4

%

$

6,468

 

$

8,906

 

-27.4

%

$

6,258

 

$

16,904

 

-63.0

%

  Operating Ratio: Operating Ratio

 

98.8

%

 

98.1

%

0.7

%

 

99.4

%

 

98.2

%

1.2

%

Adjusted Operating Ratio2

 

99.5

%

 

98.0

%

1.5

%

 

99.4

%

 

98.0

%

1.5

%

  Truckload Operating Ratio

 

99.8

%

 

97.7

%

2.1

%

 

99.9

%

 

97.9

%

2.0

%

Adjusted Truckload Operating Ratio2

 

100.8

%

 

97.4

%

3.4

%

 

100.1

%

 

97.7

%

2.4

%

Brokerage Operating Ratio

 

93.7

%

 

99.8

%

-6.1

%

 

97.2

%

 

99.2

%

-2.0

%

  Truckload Statistics: Revenue Per Mile1

$

2.694

 

$

2.354

 

14.4

%

$

2.679

 

$

2.311

 

15.9

%

  Average Tractors - Company Owned

 

5,392

 

 

4,517

 

19.4

%

 

5,303

 

 

4,556

 

16.4

%

Owner Operators

 

963

 

 

1,332

 

-27.7

%

 

994

 

 

1,417

 

-29.9

%

Total Average Tractors

 

6,355

 

 

5,849

 

8.7

%

 

6,297

 

 

5,973

 

5.4

%

  Average Revenue Miles Per Tractor Per Week

 

1,607

 

 

1,722

 

-6.7

%

 

1,592

 

 

1,723

 

-7.6

%

  Average Revenue Per Tractor Per Week1

$

4,328

 

$

4,053

 

6.8

%

$

4,266

 

$

3,981

 

7.2

%

  Total Miles

 

146,908

 

 

145,405

 

1.0

%

 

288,181

 

 

294,968

 

-2.3

%

  Total Company Miles

 

122,765

 

 

111,558

 

10.0

%

 

239,214

 

 

223,263

 

7.1

%

  Total Independent Contractor Miles

 

24,143

 

 

33,847

 

-28.7

%

 

48,967

 

 

71,705

 

-31.7

%

  Independent Contractor fuel surcharge

$

13,037

 

$

8,422

 

54.8

%

$

22,634

 

$

16,082

 

40.7

%

1 Excluding fuel surcharge revenues 2 See "Non-GAAP Financial Measures" section of this earnings release for more detail including GAAP to Non-GAAP reconciliations

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220802006194/en/

Investor Contact Matt Garvie Vice President, Investor Relations (423) 633-7153 mgarvie@usxpress.com