Transport Corporation Of America (TCAM) 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

Transport Corporation of America, Inc.
1715 Yankee Doodle Road
Eagan, MN 55121
Traded: Nasdaq: TCAM

COMPANY CONTACTS:
Michael Paxton	Keith Klein
Chairman, President and CEO	Chief Financial Officer
(651) 686-2500	(651) 686-2500

FOR IMMEDIATE RELEASE
Tuesday, July 26, 2005

TRANSPORT CORPORATION OF AMERICA
REPORTS SECOND QUARTER RESULTS

MINNEAPOLIS, MINNESOTA, July 26, 2005 – Transport Corporation of America, Inc. (NASDAQ: TCAM) today announced revenues for the second quarter 2005 of $62.8 million, compared to revenues of $65.2 million for the second quarter 2004, a decrease of 3.7 percent. Second quarter’s net earnings were $514,000 or $0.08 per diluted share, compared with a 2004 second quarter net earnings of $795,000, or $0.12 per diluted share.

Michael Paxton, Chairman, President and Chief Executive Officer, commented, “While the freight market softened from prior year levels, we continued to benefit from an environment of increasing freight rates. Our rate per loaded mile, excluding fuel surcharge, increased 4.7 percent to $1.55 during the second quarter 2005, compared to $1.48 during the second quarter 2004. Sequentially, our rate per loaded mile, excluding fuel surcharge, increased 1.3 percent from $1.53 during the first quarter 2005. In addition to improved line-haul rates, we have focused on growing new brokerage and inter-modal business opportunities.”

Paxton continued, “The challenging driver market continued to hamper our ability to grow core truckload revenues. We were able to increase our company driver and owner operator hiring numbers in the second quarter, which reduced the rate of decline in capacity from recent quarter’s levels. In addition, we have a number of new initiatives underway that we expect will increase our hiring numbers even further. Despite the reduction in fleet size, we were able to show improved earnings performance from first quarter levels through continued cost savings measures and improved accident frequency and development experience.”

“Finally, even with increased capital expenditures over the previous year, we were able to reduce outstanding debt for the 21^st straight quarter. At June 30, 2005, total debt and capital lease obligations were $48.2 million compared to $48.8 million at March 31, 2005.”

Year-To-Date Results

For the six-month period ended June 30, 2005, Transport America announced revenues of $124.3 million, compared with 2004 year-to-date revenues of $127.4 million. Net earnings for the six-month period were $608,000, or $0.09 per diluted share, compared with a 2004 net earnings of $866,000, or $0.12 per diluted share.

The Company will host a conference call and webcast today, July 26, 2005 at 10:00 a.m. Central Time. The Internet broadcast can be accessed at the Company’s website, www.transportamerica.com, or at www.fulldisclosure.com.

About Transport America

Transport Corporation of America, Inc., based in the Minneapolis – St. Paul metropolitan area, provides a wide range of truckload freight carriage and logistics services to customers in the United States and Canada. Transport America focuses on providing time-definite and other responsive services through its team of dedicated and committed employees supported by state-of-the-art technology and information systems.

This news release contains forward-looking statements regarding the Company. The Company wishes to caution readers not to place undue reliance on any forward-looking statements which speak only as of the date made. The following important factors, among other things, in some cases have affected and in the future could affect the Company’s actual results and could cause the Company’s actual financial performance to differ materially from that expressed in any forward-looking statement: (1) the highly competitive conditions that currently exist in the Company’s market and the Company’s ability to compete, (2) the Company’s ability to recruit, train, and retain qualified drivers, (3) increases in fuel prices, and the Company’s ability to recover these costs from its customers, (4) the impact of environmental standards and regulations on new revenue equipment, (5) changes in governmental regulations applicable to the Company’s operations, (6) adverse weather conditions, (7) accidents, (8) the financing and resale market for used revenue equipment, (9) changes in interest rates, (10) cost of liability insurance coverage, (11) changes in safety rating by Regulatory authorities, and (12) downturns in general economic conditions affecting the Company and its customers. The foregoing list should not be construed as exhaustive and the Company disclaims any obligation subsequently to revise or update any previously made forward-looking statements. Unanticipated events are likely to occur.

Financial Tables to Follow...

TRANSPORT CORPORATION OF AMERICA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three and Six Months ended June 30, 2005 and 2004
(In thousands, except share and per share amounts)

	Three Months (Unaudited)										Six Months (Unaudited)
	2005					2004					2005					2004
	Amount			%		Amount			%		Amount			%		Amount			%
Operating revenues	$	62,828			100.0	$	65,232			100.0	$	124,264			100.0	$	127,375			100.0
Operating expenses:
Salaries, wages, and benefits		19,244			30.6		19,282			29.6		38,321			30.8		37,477			29.4
Fuel, maintenance, and other expense		11,786			18.8		10,260			15.7		23,333			18.8		19,651			15.4
Purchased transportation		18,282			29.1		20,235			31.0		35,954			28.9		40,825			32.1
Revenue equipment leases		402			0.6		277			0.4		792			0.6		545			0.4
Depreciation and amortization		5,483			8.7		5,962			9.1		11,206			9.0		11,705			9.2
Insurance, claims, and damage		2,028			3.2		2,751			4.2		4,230			3.4		5,893			4.6
Taxes and licenses		1,115			1.8		1,148			1.8		2,282			1.8		2,249			1.8
Communication		447			0.7		455			0.7		867			0.7		898			0.7
Other general and administrative expenses		2,509			4.0		2,573			3.9		4,961			4.0		4,883			3.8
Impairment of sublease office space		0			0.0		190			0.3		0			0.0		190			0.1
Gain on disposition of equipment		(11	)		—		(20	)		—		(18	)		—		(22	)		—
Total operating expenses		61,285			97.5		63,113			96.7		121,928			98.1		124,294			97.6
Operating income		1,543			2.5		2,119			3.3		2,336			1.9		3,081			2.4
Interest expense, net		687			1.1		805			1.2		1,326			1.1		1,650			1.3
Earnings before income taxes		856			1.4		1,314			2.1		1,010			0.8		1,431			1.1
Income tax provision		342			0.5		519			0.8		402			0.3		565			0.4
Net earnings		514			0.9		795			1.3		608			0.5		866			0.7
Earnings per common share – basic	$	0.08				$	0.12				$	0.09				$	0.13
Earnings per common share – diluted	$	0.08				$	0.12				$	0.09				$	0.12
Average common shares outstanding
Basic		6,556,858					6,756,647					6,549,415					6,921,931
Diluted		6,649,256					6,861,103					6,686,744					7,030,235

TRANSPORT CORPORATION OF AMERICA, INC.
BALANCE SHEET
June 30, 2005 and 2004
(In thousands)
Unaudited

ASSETS
		2005			2004
Current Assets:
Cash and cash equivalents	$	3,919		$	5,542
Trade receivables, net of allowances		24,980			28,939
Other receivables		813			1,073
Operating supplies		904			757
Deferred income taxes		5,168			5,885
Prepaid expenses		2,695			3,600
Total Current Assets		38,479			45,796
Revenue Equipment, at Cost		177,101			178,433
Less: accumulated depreciation		(74,328	)		(82,999	)
Revenue Equipment, Net		102,773			95,434
Property and Other Equipment:
Land, buildings, and improvements		17,321			16,363
Other equipment and leasehold improvements		21,783			21,628
Less: accumulated depreciation		(20,039	)		(18,025	)
Property and Other Equipment, Net		19,065			19,966
Revenue, Property and Other Equipment, Net		121,838			115,400
Other Assets, Net		2,614			1,278
Total Assets	$	162,931		$	162,474
LIABILITIES AND SHAREHOLDERS’ EQUITY
		2005			2004
Current Liabilities:
Current maturities of long-term debt	$	8,323		$	9,293
Current maturities of capital lease obligations		5,930			7,956
Accounts payable		7,854			5,580
Checks issued in excess of cash balances		1,353			1,770
Due to independent contractors		1,186			2,293
Accrued expenses		22,105			21,445
Total Current Liabilities		46,751			48,337
Long-Term Debt & Capital Lease Obligations
Long-term debt, less current maturities		32,793			26,946
Capital lease obligations, less current maturities		1,150			7,066
Total Long-Term Debt
& Capital Lease Obligations		33,943			34,012
Deferred Income Taxes		25,134			25,068
Shareholders’ Equity:
Common stock		66			65
Additional paid-in capital		25,651			25,385
Retained earnings		31,386			29,607
Total Shareholders’ Equity		57,103			55,057
Total Liabilities and Equity	$	162,931		$	162,474

TRANSPORT CORPORATION OF AMERICA, INC.
Selected Consolidated Financial and Operating Data
Three and Six Months Ended June 30, 2005 and 2004

	Three Months						Six Months
	2005			2004			2005			2004
Operating Statistics
Company tractors, seated		822			904			822			904
Company tractors, other		222			95			222			95
Independent contractor		485			640			485			640
Total tractors (at end of period)		1,529			1,639			1,529			1,639
Trailers (at end of period)		4,489			4,838			4,489			4,838
Average tractors in service		1,404			1,627			1,431			1,628
Total loaded miles (000’s)		33,513			41,059			68,118			80,676
Total miles (000’s)		37,657			45,972			76,607			90,285
Freight revenue per tractor per week*	$	2,892		$	2,915		$	2,889		$	2,856
Fuel surcharge per tractor per week		416			193			373			168
Operating revenue per tractor per week	$	3,308		$	3,108		$	3,262		$	3,024
Freight revenue per loaded mile*	$	1.551		$	1.478		$	1.541		$	1.476
Fuel surcharge per loaded mile		0.223			0.099			0.200			0.086
Operating revenue per loaded mile	$	1.774		$	1.577		$	1.741		$	1.562
Freight revenue per mile*	$	1.380		$	1.320		$	1.371		$	1.319
Fuel surcharge per mile		0.199			0.088			0.177			0.077
Operating revenue per mile	$	1.579		$	1.408		$	1.548		$	1.396
Average empty mile percentage		11.0	%		10.7	%		11.1	%		10.6	%
Average length of haul, all miles		653			684			661			690
Average annual revenues per non-driver employee (000’s)	$	649		$	648		$	635		$	629
Financial Data (000’s)
Freight revenue (excluding fuel surcharge)	$	51,983		$	60,701		$	104,999		$	119,049
Fuel surcharge revenue		7,472			4,030			13,581			6,983
Operating revenue (including fuel surcharge)		59,455			64,731			118,580			126,032
Logistics and other revenue		3,373			501			5,684			1,343
Total revenue	$	62,828		$	65,232		$	124,264		$	127,375
Capital expenditures, net of proceeds	$	4,000		$	681		$	14,085		$	2,542
Total debt and capital lease obligations	$	48,196		$	51,261		$	48,196		$	51,261
*  Excluding fuel surcharge