Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 30, 2015 | |
Entity Registrant Name | USA TRUCK INC | |
Entity Central Index Key | 883,945 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 10,607,630 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash | $ 704,000 | $ 205,000 |
Accounts receivable, net of allowance for doubtful accounts of $731 and $1,020, respectively | 62,772,000 | 71,186,000 |
Other receivables | 8,192,000 | 5,639,000 |
Inventories | 1,944,000 | 1,863,000 |
Assets held for sale | 7,079,000 | 3,536,000 |
Deferred income taxes | 2,682,000 | 7,707,000 |
Prepaid expenses and other current assets | 16,986,000 | 17,318,000 |
Total current assets | 100,359,000 | 107,454,000 |
Property and equipment: | ||
Land and structures | 32,138,000 | 31,596,000 |
Revenue equipment | 324,768,000 | 348,216,000 |
Service, office and other equipment | 16,801,000 | 16,648,000 |
Property and equipment, at cost | 373,707,000 | 396,460,000 |
Accumulated depreciation and amortization | (169,034,000) | (182,724,000) |
Property and equipment, net | 204,673,000 | 213,736,000 |
Other assets | 1,492,000 | 658,000 |
Total assets | 306,524,000 | 321,848,000 |
Current liabilities: | ||
Accounts payable | 35,063,000 | 23,582,000 |
Current portion of insurance and claims accruals | 14,636,000 | 10,230,000 |
Accrued expenses | 16,302,000 | 8,252,000 |
Current maturities of long-term debt and capital leases | 18,272,000 | 24,048,000 |
Total current liabilities | 84,273,000 | 66,112,000 |
Deferred gain | 585,000 | 589,000 |
Long-term debt and capital leases, less current maturities | 67,563,000 | 93,464,000 |
Deferred income taxes | 38,081,000 | 46,688,000 |
Insurance and claims accruals, less current portion | 6,322,000 | 9,647,000 |
Total liabilities | $ 196,824,000 | $ 216,500,000 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred Stock, $.01 par value; 1,000,000 shares authorized; none issued | $ 0 | $ 0 |
Common Stock, $.01 par value; 30,000,000 shares authorized; issued 11,985,653 shares, and 11,873,071 shares, respectively | 120,000 | 119,000 |
Additional paid-in capital | 66,606,000 | 65,850,000 |
Retained earnings | 64,658,000 | 61,082,000 |
Less treasury stock, at cost (1,336,456 shares, and 1,340,438 shares, respectively) | (21,684,000) | (21,703,000) |
Total stockholders’ equity | 109,700,000 | 105,348,000 |
Total liabilities and stockholders’ equity | $ 306,524,000 | $ 321,848,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Allowance for doubtful accounts | $ 731 | $ 1,020 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 11,985,653 | 11,873,071 |
Treasury stock (in shares) | 1,336,456 | 1,340,438 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue: | ||||
Operating revenue | $ 133,573 | $ 153,298 | $ 266,460 | $ 298,787 |
Operating expenses: | ||||
Salaries, wages and employee benefits | 35,636 | 38,703 | 73,508 | 74,542 |
Fuel expense | 16,257 | 30,704 | 34,235 | 63,707 |
Depreciation and amortization | 10,277 | 11,148 | 20,948 | 22,603 |
Insurance and claims | 5,903 | 5,903 | 12,097 | 11,887 |
Operations and maintenance | 12,176 | 11,629 | 24,316 | 24,691 |
Purchased transportation | 42,646 | 44,538 | 81,416 | 85,788 |
Operating taxes and licenses | 1,462 | 1,355 | 2,782 | 2,801 |
Communications and utilities | 880 | 1,094 | 1,743 | 2,133 |
Gain on disposal of assets, net | (2,255) | (179) | (2,758) | (522) |
Other | 5,307 | 4,146 | 9,298 | 7,943 |
Total operating expenses | 128,289 | 149,041 | 257,585 | 295,573 |
Operating income | 5,284 | 4,257 | 8,875 | 3,214 |
Other expenses (income): | ||||
Interest expense, net | $ 549 | 744 | $ 1,179 | 1,455 |
Defense costs | $ 2,163 | $ 2,528 | ||
Loss on extinguishment of debt | $ 750 | |||
Other, net | $ 370 | $ (16) | 572 | $ 48 |
Total other expenses, net | 919 | 2,891 | 2,501 | 4,031 |
Income (loss) before income taxes | 4,365 | 1,366 | 6,374 | (817) |
Income tax expense | 1,905 | 644 | 2,798 | 50 |
Net income (loss) and comprehensive income (loss) | $ 2,460 | $ 722 | $ 3,576 | $ (867) |
Net income (loss) per share information: | ||||
Average shares outstanding (basic) (in shares) | 10,435 | 10,346 | 10,423 | 10,343 |
Basic earnings (loss) per share (in dollars per share) | $ 0.24 | $ 0.07 | $ 0.34 | $ (0.08) |
Average shares outstanding (diluted) (in shares) | 10,516 | 10,478 | 10,524 | 10,343 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.23 | $ 0.07 | $ 0.34 | $ (0.08) |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2015 - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance (in shares) at Dec. 31, 2014 | 11,873 | ||||
Balance at Dec. 31, 2014 | $ 119 | $ 65,850 | $ 61,082 | $ (21,703) | $ 105,348 |
Exercise of stock options (in shares) | 28 | ||||
Exercise of stock options | 154 | 154 | |||
Excess tax benefit from exercise of stock options | 537 | 537 | |||
Transfer of stock (into) out of treasury stock | (19) | $ 19 | |||
Share-based compensation | 356 | $ 356 | |||
Restricted stock award grant (in shares) | 99 | ||||
Restricted stock award grant | $ 1 | (1) | |||
Forfeited restricted stock (in shares) | (5) | ||||
Net share settlement related to restricted stock vesting (in shares) | (9) | ||||
Net share settlement related to restricted stock vesting | $ (271) | $ (271) | |||
Net income | $ 3,576 | 3,576 | |||
Balance (in shares) at Jun. 30, 2015 | 11,986 | ||||
Balance at Jun. 30, 2015 | $ 120 | $ 66,606 | $ 64,658 | $ (21,684) | $ 109,700 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Accounts Payable [Member] | ||
Supplemental disclosure of non-cash investing activities: | ||
Purchases of revenue equipment included in accounts payable | $ 10,790,000 | $ 5,650,000 |
Net income | 3,576,000 | (867,000) |
Depreciation and amortization | 20,948,000 | 22,603,000 |
Provision for doubtful accounts | 397,000 | 423,000 |
Deferred income taxes, net | (3,582,000) | (1,321,000) |
Share-based compensation | 356,000 | 219,000 |
Gain on disposal of assets, net | (2,758,000) | $ (522,000) |
Loss on extinguishment of debt | 750,000 | |
Other | (4,000) | $ (4,000) |
Accounts receivable | 7,590,000 | (13,734,000) |
Inventories and prepaid expenses | (498,000) | (1,095,000) |
Accounts payable and accrued liabilities | 11,898,000 | 11,037,000 |
Insurance and claims accruals | 1,740,000 | 1,779,000 |
Other long-term assets and liabilities | (834,000) | |
Net cash provided by operating activities | 39,579,000 | 18,518,000 |
Capital expenditures | (20,643,000) | (22,534,000) |
Proceeds from sale of property and equipment | 15,946,000 | 8,881,000 |
Change in other assets, net | 15,000 | |
Net cash used by investing activities | (4,697,000) | (13,638,000) |
Borrowings under long-term debt | 111,236,000 | 43,817,000 |
Payments on long-term debt | (129,355,000) | (37,239,000) |
Payments on capitalized lease obligations | (12,663,000) | (9,706,000) |
Net decrease in bank drafts payable | (3,125,000) | (920,000) |
Excess tax benefit from exercise of stock options | 537,000 | |
Principal payments on note payable | (896,000) | (681,000) |
Net payments on stock-based awards | (117,000) | (126,000) |
Net cash used in financing activities | (34,383,000) | (4,855,000) |
Increase in cash | 499,000 | 25,000 |
Beginning of period | 205,000 | 14,000 |
End of period | 704,000 | 39,000 |
Interest | 1,139,000 | 1,710,000 |
Income taxes | $ 103,000 | $ 324,000 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 – Basis of Presentation In the opinion of the management of USA Truck, Inc., the accompanying unaudited condensed |
Note 2 - Note Receivable
Note 2 - Note Receivable | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 2 – NOTE RECEIVABLE During November 2010, the Company sold its terminal facility in Shreveport, Louisiana. In connection with this sale, the buyer gave the Company cash in the amount of $0.2 million and a note receivable in the amount of $2.1 million. The note receivable bears interest at an annual rate of 7.0% and has scheduled principal and interest payments based on a 30-year amortization schedule. A balloon payment in the approximate amount of $1.9 million is payable to the Company when the note matures in November 2015. Accordingly, the Company deferred the approximate $0.7 million of gain on the sale of this facility, and records this gain into earnings as payments on the note receivable are received. The Company believes that the note receivable balance as of June 30, 2015, in the approximate amount of $1.9 million, is fully collectible and accordingly has not recorded any valuation allowance against the note receivable and is included in other receivables in the accompanying condensed consolidated balance sheet. For the three months ended June 30, 2015 and 2014, the Company recognized approximately $2,100 and $1,900, respectively, of this gain. For the six months ended June 30, 2015 and 2014, the Company recognized approximately $4,100 and $3,800, respectively, of this gain. |
Note 3 - Share-Based Compensati
Note 3 - Share-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 3 – SHARE-BASED COMPENSATION In May 2014, the Company’s stockholders approved the USA Truck, Inc. 2014 Omnibus Incentive Plan (the “Incentive Plan”). The Incentive Plan provides for the granting of incentive or nonqualified options or other equity-based awards covering up to 500,000 shares of common stock to directors, officers and other key employees and consultants. As of June 30, 2015, 382,484 shares were available for future options or other equity awards under the Incentive Plan. In January 2015, the Executive Compensation Committee approved a Long-Term Incentive Plan (the “2015 LTIP”) under which participants, including executives and other key management personnel, are eligible to receive long-term equity awards in the form of restricted stock. In January 2015, the 2015 LTIP participants received grants of restricted stock, a portion of which are subject to time-based vesting, in 25% increments over four years beginning on the first anniversary of the grant date, and a portion of which are subject to performance-based vesting upon achievement of certain levels of return on invested capital over a three-year performance period. |
Note 4 - Segment Reporting
Note 4 - Segment Reporting | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 4 – SEGMENT REPORTING The Company’ s two reportable segments are Trucking and Strategic Capacity Solutions (“SCS”). Truck ing Strategic Capacity Solutions. In determining its reportable segments, the Company focuses on financial information, such as operating revenues, operating expense categories, operating ratios, operating income and key operating statistics, which the Company’s management uses to make operating decisions. Assets are not allocated to SCS, as those operations provide truckload freight services to customers through arrangements with third party carriers who utilize their own equipment. To the extent rail intermodal operations require the use of Company-owned assets, they are obtained from the Company’s trucking segment on an as-needed basis. Depreciation and amortization expense is allocated to SCS based on the assets specifically utilized to generate revenue. All intercompany transactions between segments reflect rates similar to those that would be negotiated with independent third parties. All other expenses for SCS are specifically identifiable directed costs or are allocated to SCS based on relevant drivers. A summary of operating revenue by segment is as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 201 5 2014 201 5 2014 Operating r evenue Trucking revenue (1) $ 93,846 $ 106,310 $ 190,248 $ 209,224 Trucking intersegment eliminations (419 ) (164 ) (1,034 ) (312 ) Trucking operating revenue 93,427 106,146 189,214 208,912 SCS revenue 41,605 49,896 80,276 95,148 SCS intersegment eliminations (1,459 ) (2,744 ) (3,030 ) (5,273 ) SCS operating revenue 40,146 47,152 77,246 89,875 Total operating revenue $ 133,573 $ 153,298 $ 266,460 $ 298,787 (1) Includes foreign revenue of $10.0 million and $21.8 million for the three months and six months ended June 30, 2015, respectively, and $15.6 million and $30.4 million for the three and six months ended June 30, 2014, respectively. A summary of operating income (loss) by segment is as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 201 5 2014 201 5 2014 Operating income (l oss ) Trucking $ 2,025 $ (1,734 ) $ 2,640 $ (7,855 ) SCS 3,259 5,991 6,235 11,069 Total operating income $ 5,284 $ 4,257 $ 8,875 $ 3,214 A summary of depreciation and amortization by segment is as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 201 5 2014 201 5 2014 Depreciation and a mortization Trucking $ 10,211 $ 11,104 $ 20,824 $ 22,511 SCS 66 44 124 92 Total depreciation and amortization $ 10,277 $ 11,148 $ 20,948 $ 22,603 |
Note 5 - Assets Held for Sale
Note 5 - Assets Held for Sale | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 5 – Assets Held for sale Assets held for sale as of June 30, 2015 and December 31, 2014 were as follows (in thousands): June 30 , December 31, 201 5 2014 Revenue equipment assets held for sale $ 7,079 $ 3,536 As of June 30, 2015 and December 31, 2014, assets held for sale are carried at the lower of depreciated cost or estimated fair value less expected selling costs. The Company expects to sell these assets within the next twelve months. |
Note 6 - Accrued Expenses
Note 6 - Accrued Expenses | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | Note 6 – Accrued Expenses Accrued expenses consisted of the following (in thousands): June 30 , December 31, 201 5 2014 Salaries, wages and employee benefits $ 6,463 $ 7,043 Federal and state tax accruals 8,251 186 Other 1,588 1,023 Total accrued expenses $ 16,302 $ 8,252 |
Note 7 - Long-term Debt
Note 7 - Long-term Debt | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | Note 7 – LONG-TERM DEBT Long-term debt consisted of the following (in thousands): June 30 , December 31, 201 5 2014 Revolving credit agreement $ 53,000 $ 71,000 Other -- 896 Total debt 53,000 71,896 Less current maturities -- (896 ) Long-term debt, less current maturities $ 53,000 $ 71,000 CREDIT FACILITY In February 2015, the Company entered into a new senior secured revolving credit facility (the “Credit Facility”) with a group of lenders and Bank of America, N.A., as agent (“Agent”). Contemporaneously with the funding of the Credit Facility, the Company paid off the obligations under its prior credit facility and terminated such facility. The Credit Facility is structured as a $170.0 million revolving credit facility, with an accordion feature that, so long as no event of default exists, allows the Company to request an increase in the revolving credit facility of up to $80.0 million, exercisable in increments of $20.0 million. The Credit Facility is a five-year facility scheduled to terminate on February 5, 2020. Borrowings under the Credit Facility are classified as either “base rate loans” or “LIBOR loans”. Base rate loans accrue interest at a base rate equal to the Agent’s prime rate plus an applicable margin that is set at 0.50% through May 31, 2016 and adjusted quarterly thereafter between 0.25% and 1.00% based on the Company’s consolidated fixed charge coverage ratio. LIBOR loans accrue interest at LIBOR plus an applicable margin that is set at 1.50% through May 31, 2016 and adjusted quarterly thereafter between 1.25% and 2.00% based on the Company’s consolidated fixed charge coverage ratio. The Credit Facility includes, within its $170.0 million revolving credit facility, a letter of credit sub-facility in an aggregate amount of $15.0 million and a swing line sub-facility in an aggregate amount of $20.0 million. An unused line fee of 0.25% is applied to the average daily amount by which the lenders’ aggregate revolving commitments exceed the outstanding principal amount of revolver loans and the aggregate undrawn amount of all outstanding letters of credit issued under the Credit Facility. The Credit Facility is secured by a pledge of substantially all of the Company’s assets, with the notable exclusion of any real estate or revenue equipment financed outside the Credit Facility. Additionally, the Company recognized charges in the first quarter of 2015 of $0.8 million resulting from the replacement of its previous credit facility representing the write-off of unamortized deferred financing fees. Borrowings under the Credit Facility are subject to a borrowing base limited to the lesser of (A) $170.0 million; or (B) the sum of (i) 90% of eligible investment grade accounts receivable (reduced to 85% in certain situations), plus (ii) 85% of eligible non-investment grade accounts receivable, plus (iii) the lesser of (a) 85% of eligible unbilled accounts receivable and (b) $10.0 million, plus (iv) the product of 85% multiplied by the net orderly liquidation value percentage applied to the net book value of eligible revenue equipment, plus (v) 85% multiplied the net book value of otherwise eligible newly acquired revenue equipment that has not yet been subject to an appraisal. The borrowing base is reduced by an availability reserve, including reserves based on dilution and certain other customary reserves. The Credit Facility contains a single springing financial covenant, which requires a consolidated fixed charge coverage ratio of at least 1.0 to 1.0. The financial covenant springs only in the event excess availability under the Credit Facility drops below 10% of the lenders’ total commitments under the Credit Facility. The Credit Facility includes usual and customary events of default for a facility of this nature and provides that, upon the occurrence and continuation of an event of default, payment of all amounts payable under the Credit Facility may be accelerated, and the lenders’ commitments may be terminated. The Credit Facility contains certain restrictions and covenants relating to, among other things, dividends, liens, acquisitions and dispositions, affiliate transactions, and other indebtedness. The Company had no overnight borrowings under the Credit Facility as of June 30, 2015. The average interest rate including all borrowings made under the Credit Facility as of June 30, 2015 was 1.74%. As debt is repriced on a monthly basis, the borrowings under the Credit Facility approximate fair value. As of June 30, 2015, the Company had outstanding $4.3 million in letters of credit and had approximately $112.7 million available under the Credit Facility. |
Note 8 - Leases and Commitments
Note 8 - Leases and Commitments | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | Note 8 – LEASES AND Commitments CAPITAL LEASES USA Truck leases certain equipment under capital leases with terms ranging from 15 to 60 months. Capitalized Costs Accumulated Amortization Net Book Value June 30, 2015 $ 57,370 $ 22,580 $ 34,790 December 31, 2014 75,188 27,770 47,418 The Company has capitalized lease obligations relating to revenue equipment of $32.8 million, of which $18.3 million represents the current portion. Such leases have various termination dates extending through August 2018 and contain renewal or fixed price purchase options. The effective interest rates on the leases range from 1.65% to 3.11% as of June 30, 2015. The lease agreements require payment of property taxes, maintenance and operating expenses. Amortization of capital leases was $2.5 million and $5.2 million for the three and six months ended June 30, 2015, respectively, and $3.2 million and $6.6 million for the three and six months ended June 30, 2014, respectively. OPERATING LEASES Rent expense associated with operating leases was $1.5 million and $2.8 million for the three and six months ended June 30, 2015, respectively, and $1.3 million and $2.6 million for the three and six months ended June 30, 2014, respectively. Rent expense relating to tractors, trailers and other operating equipment is included in operations and maintenance expense, while rent expense relating to office equipment is included in other operating expenses in the accompanying condensed consolidated statements of operations and comprehensive income (loss). As of June 30, 2015, the Company has entered into leases with lessors who do not participate in the Credit Facility. Currently, such leases do not contain cross-default provisions with the Credit Facility. As of June 30, 2015, the future minimum payments under capitalized leases with initial terms of one year or more and future rentals under operating leases for certain facilities, office equipment and revenue equipment with initial terms of one year or more were as follows for the years indicated (in thousands). 2015 2016 2017 2018 2019 Thereafter Capital leases $ 18,832 $ 12,165 $ 1,056 $ 1,646 $ -- $ -- Operating leases 3,940 3,643 3,578 1,577 10 233 OTHER COMMITMENTS As of June 30, 2015, the Company had commitments of approximately $1.6 million for purchases of non-revenue equipment and commitments of approximately $60.5 million for purchases of revenue equipment, of which none is cancellable. The Company anticipates taking delivery of these purchases throughout the remainder of 2015. |
Note 9 - Income Taxes
Note 9 - Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 9 – INCOME tAXES During the three months ended June 30, 2015 and 2014, the Company’s effective tax rates were 43.7% and 47.1%, respectively. During the six months ended June 30, 2015 and 2014, the Company’s effective tax rates were 43.9% and (6.1%), respectively. Income tax expense varies from the amount computed by applying the statutory federal tax rate to income before income taxes primarily due to state income taxes, net of federal income tax effect, adjusted for permanent differences, the most significant of which is the effect of the per diem pay structure for the Company’s drivers. Drivers may elect to receive non-taxable per diem pay in lieu of a portion of their taxable wages. This per diem program increases the Company’s drivers’ net pay per mile, after taxes, while decreasing gross pay, before taxes. As a result, salaries, wages and employee benefits costs are slightly lower, and effective income tax rates are higher than the statutory rate. Generally, as pre-tax income increases, the impact of the driver per diem program on the effective tax rate decreases, because aggregate per diem pay becomes smaller in relation to pre-tax income, while in periods where earnings are at or near breakeven, the impact of the per diem program on the Company’s effective tax rate is significant. Due to the partially nondeductible effect of per diem pay, the Company’s tax rate will fluctuate in future periods based on fluctuations in earnings and in the number of drivers who elect to receive this pay structure. The Company accounts for any uncertainty in income taxes by determining whether it is more likely than not that a tax position taken in a tax return will be sustained upon examination by the appropriate taxing authority based on the technical merits of the position. In that regard, the Company has analyzed filing positions in its federal and applicable state tax returns as well as in all open tax years. Periods subject to examination for the Company’s federal returns are the 2011, 2012 and 2013 tax years. Management believes that the Company’s income tax filing positions and deductions will be sustained on examination and does not anticipate any adjustments that will result in a material change to its consolidated financial position, results of operations and cash flows. In conjunction with the foregoing, the Company’s policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as operating expenses. No unrecognized tax benefits have been recorded as of June 30, 2015. The Company believes adequate provision has been made for future tax consequences based upon current facts and circumstances and current tax law; however, based on improving results from operations and other factors, the Company expects to fully utilize net operating loss carry forwards from prior years. |
Note 10 - Earnings (Loss) Per S
Note 10 - Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 10 – EARNINGS (LOSS) Per Share Basic earnings (loss) per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by adjusting the weighted average number of shares of common stock outstanding by common stock equivalents attributable to dilutive stock options and restricted stock. The computation of diluted earnings (loss) per share does not assume conversion, exercise, or contingent issuance of securities that would have an antidilutive effect on income (loss) per share. The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 201 5 2014 201 5 2014 Numerator: Net income (loss) $ 2,460 $ 722 $ 3,576 $ (867 ) Denominator: Denominator for basic earnings (loss) per share – weighted average shares 10,435 10,346 10,423 10,343 Effect of dilutive securities: Employee stock options and restricted stock 81 132 101 -- Denominator for diluted earnings (loss) per share – adjusted weighted average shares and assumed conversion 10,516 10,478 10,524 10,343 Basic earnings (loss) per share $ 0.24 $ 0.07 $ 0.34 $ (0.08 ) Diluted earnings (loss) per share $ 0.23 $ 0.07 $ 0.34 $ (0.08 ) Weighted average anti-dilutive employee stock options and restricted stock 84 2 74 7 |
Note 11 - Legal Proceedings
Note 11 - Legal Proceedings | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | NOTE 11 – LEGAL PROCEEDINGS USA Truck is party to routine litigation incidental to its business, primarily involving claims for personal injury and property damage incurred in the transportation of freight. The Company maintains insurance to cover liabilities in excess of certain self-insured retention levels. Though it is the opinion of management that these claims are immaterial to the Company’s long-term financial position, adverse results of one or more of these claims could have a material adverse effect on the Company’s condensed consolidated financial statements in any given reporting period. |
Note 12 - New Accounting Pronou
Note 12 - New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NOTE 12 – NEW ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). In July 2015, the FASB approved the delayed effectiveness of ASU 2014-09 for one year. Management is currently evaluating the impact of the pending adoption of ASU 2014-09 on the Company’s condensed consolidated financial statements and has not yet determined the method by which the Company will adopt the standard in its 2018 fiscal year. |
Note 13 - Subsequent Events
Note 13 - Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 1 3 – SUBSEQUENT EVENTS On July 7, 2015, the Company’s President and CEO, John Simone, resigned from his position. On the same date, the Company appointed Thomas M. Glaser as President and CEO. The Company expects to record approximately $1.3 million in the third quarter of 2015 reflecting severance and related costs with respect to Mr. Simone’s departure. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | In the opinion of the management of USA Truck, Inc., the accompanying unaudited condensed |
New Accounting Pronouncements, Policy [Policy Text Block] | In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). In July 2015, the FASB approved the delayed effectiveness of ASU 2014-09 for one year. Management is currently evaluating the impact of the pending adoption of ASU 2014-09 on the Company’s condensed consolidated financial statements and has not yet determined the method by which the Company will adopt the standard in its 2018 fiscal year. |
Note 4 - Segment Reporting (Tab
Note 4 - Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, 201 5 2014 201 5 2014 Operating r evenue Trucking revenue (1) $ 93,846 $ 106,310 $ 190,248 $ 209,224 Trucking intersegment eliminations (419 ) (164 ) (1,034 ) (312 ) Trucking operating revenue 93,427 106,146 189,214 208,912 SCS revenue 41,605 49,896 80,276 95,148 SCS intersegment eliminations (1,459 ) (2,744 ) (3,030 ) (5,273 ) SCS operating revenue 40,146 47,152 77,246 89,875 Total operating revenue $ 133,573 $ 153,298 $ 266,460 $ 298,787 Three Months Ended Six Months Ended June 30, June 30, 201 5 2014 201 5 2014 Operating income (l oss ) Trucking $ 2,025 $ (1,734 ) $ 2,640 $ (7,855 ) SCS 3,259 5,991 6,235 11,069 Total operating income $ 5,284 $ 4,257 $ 8,875 $ 3,214 Three Months Ended Six Months Ended June 30, June 30, 201 5 2014 201 5 2014 Depreciation and a mortization Trucking $ 10,211 $ 11,104 $ 20,824 $ 22,511 SCS 66 44 124 92 Total depreciation and amortization $ 10,277 $ 11,148 $ 20,948 $ 22,603 |
Note 5 - Assets Held for Sale (
Note 5 - Assets Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | June 30 , December 31, 201 5 2014 Revenue equipment assets held for sale $ 7,079 $ 3,536 |
Note 6 - Accrued Expenses (Tabl
Note 6 - Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | June 30 , December 31, 201 5 2014 Salaries, wages and employee benefits $ 6,463 $ 7,043 Federal and state tax accruals 8,251 186 Other 1,588 1,023 Total accrued expenses $ 16,302 $ 8,252 |
Note 7 - Long-term Debt (Tables
Note 7 - Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | June 30 , December 31, 201 5 2014 Revolving credit agreement $ 53,000 $ 71,000 Other -- 896 Total debt 53,000 71,896 Less current maturities -- (896 ) Long-term debt, less current maturities $ 53,000 $ 71,000 |
Note 8 - Leases and Commitmen25
Note 8 - Leases and Commitments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Capital Leased Assets [Table Text Block] | Capitalized Costs Accumulated Amortization Net Book Value June 30, 2015 $ 57,370 $ 22,580 $ 34,790 December 31, 2014 75,188 27,770 47,418 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | 2015 2016 2017 2018 2019 Thereafter Capital leases $ 18,832 $ 12,165 $ 1,056 $ 1,646 $ -- $ -- Operating leases 3,940 3,643 3,578 1,577 10 233 |
Note 10 - Earnings (Loss) Per26
Note 10 - Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, 201 5 2014 201 5 2014 Numerator: Net income (loss) $ 2,460 $ 722 $ 3,576 $ (867 ) Denominator: Denominator for basic earnings (loss) per share – weighted average shares 10,435 10,346 10,423 10,343 Effect of dilutive securities: Employee stock options and restricted stock 81 132 101 -- Denominator for diluted earnings (loss) per share – adjusted weighted average shares and assumed conversion 10,516 10,478 10,524 10,343 Basic earnings (loss) per share $ 0.24 $ 0.07 $ 0.34 $ (0.08 ) Diluted earnings (loss) per share $ 0.23 $ 0.07 $ 0.34 $ (0.08 ) Weighted average anti-dilutive employee stock options and restricted stock 84 2 74 7 |
Note 2 - Note Receivable (Detai
Note 2 - Note Receivable (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2010 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Proceeds from Sale of Real Estate | $ 200,000 | ||||
Notes, Loans and Financing Receivable, Gross, Noncurrent | $ 2,100,000 | ||||
Note Receivable Interest Rate | 7.00% | ||||
Maturities Of Note Receivable | $ 1,900,000 | ||||
Deferred Gain Sale Of Property | $ 700,000 | ||||
Notes, Loans and Financing Receivable, Net, Current | $ 1,900,000 | $ 1,900,000 | |||
Gain (Loss) on Disposition of Property Plant Equipment | $ 2,100 | $ 1,900 | $ 4,100 | $ 3,800 |
Note 3 - Share-Based Compensa28
Note 3 - Share-Based Compensation (Details Textual) - shares | 1 Months Ended | ||
Jan. 30, 2015 | Jun. 30, 2015 | May. 30, 2014 | |
Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 500,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 382,484 | ||
Long-term Incentive Plan 2015 [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
Note 4 - Segment Reporting (Det
Note 4 - Segment Reporting (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | ||
Operating Segments [Member] | Trucking [Member] | Foreign Countries [Member] | |||||
Revenues | $ 10,000 | $ 15,600 | $ 21,800 | $ 30,400 | |
Operating Segments [Member] | Trucking [Member] | |||||
Revenues | [1] | 93,846 | 106,310 | 190,248 | 209,224 |
Trucking [Member] | |||||
Revenues | 93,427 | 106,146 | $ 189,214 | 208,912 | |
Number of Reportable Segments | 2 | ||||
Revenues | $ 133,573 | $ 153,298 | $ 266,460 | $ 298,787 | |
[1] | Includes foreign revenue of $10.0 million and $21.8 million for the three months and six months ended June 30, 2015, respectively, and $15.6 million and $30.4 million for the three and six months ended June 30, 2014, respectively. |
Note 4 - Segment Reporting - Se
Note 4 - Segment Reporting - Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Operating Segments [Member] | Trucking [Member] | |||||
Revenues | [1] | $ 93,846 | $ 106,310 | $ 190,248 | $ 209,224 |
Operating income (loss) | 2,025 | (1,734) | 2,640 | (7,855) | |
Depreciation and amortization | 10,211 | 11,104 | 20,824 | 22,511 | |
Operating Segments [Member] | S C S [Member] | |||||
Revenues | 41,605 | 49,896 | 80,276 | 95,148 | |
Operating income (loss) | 3,259 | 5,991 | 6,235 | 11,069 | |
Depreciation and amortization | 66 | 44 | 124 | 92 | |
Intersegment Eliminations [Member] | Trucking [Member] | |||||
Revenues | (419) | (164) | (1,034) | (312) | |
Intersegment Eliminations [Member] | S C S [Member] | |||||
Revenues | (1,459) | (2,744) | (3,030) | (5,273) | |
Trucking [Member] | |||||
Revenues | 93,427 | 106,146 | 189,214 | 208,912 | |
S C S [Member] | |||||
Revenues | 40,146 | 47,152 | 77,246 | 89,875 | |
Revenues | 133,573 | 153,298 | 266,460 | 298,787 | |
Operating income (loss) | 5,284 | 4,257 | 8,875 | 3,214 | |
Depreciation and amortization | $ 10,277 | $ 11,148 | $ 20,948 | $ 22,603 | |
[1] | Includes foreign revenue of $10.0 million and $21.8 million for the three months and six months ended June 30, 2015, respectively, and $15.6 million and $30.4 million for the three and six months ended June 30, 2014, respectively. |
Note 5 - Assets Held for Sale -
Note 5 - Assets Held for Sale - Assets Held for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Revenue equipment assets held for sale | $ 7,079 | $ 3,536 |
Note 6 - Accrued Expenses - Acc
Note 6 - Accrued Expenses - Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Salaries, wages and employee benefits | $ 6,463 | $ 7,043 |
Federal and state tax accruals | 8,251 | 186 |
Other | 1,588 | 1,023 |
Total accrued expenses | $ 16,302 | $ 8,252 |
Note 7 - Long-term Debt (Detail
Note 7 - Long-term Debt (Details Textual) - USD ($) $ in Millions | 1 Months Ended | |
Feb. 28, 2015 | Jun. 30, 2015 | |
Revolving Credit Facility [Member] | Base Rate [Member] | Through May 31, 2016 [Member] | Minimum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |
Revolving Credit Facility [Member] | Base Rate [Member] | Through May 31, 2016 [Member] | Maximum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |
Revolving Credit Facility [Member] | Base Rate [Member] | Through May 31, 2016 [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Through May 31, 2016 [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | After May 31, 2016 [Member] | Minimum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | After May 31, 2016 [Member] | Maximum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |
Revolving Credit Facility [Member] | Eligible Investment Grade Accounts Receivable [Member] | Minimum [Member] | ||
Borrowing Based Treshhold, Percentage | 85.00% | |
Revolving Credit Facility [Member] | Eligible Investment Grade Accounts Receivable [Member] | Maximum [Member] | ||
Borrowing Based Treshhold, Percentage | 90.00% | |
Revolving Credit Facility [Member] | Eligible Investment Grade Accounts Receivable [Member] | ||
Borrowing Based Treshhold, Percentage | 85.00% | |
Revolving Credit Facility [Member] | Eligible Unbilled Accounts Receivable [Member] | ||
Borrowing Based Treshhold, Percentage | 85.00% | |
Revolving Credit Facility [Member] | Eligible Revenue Equipment [Member] | ||
Borrowing Based Treshhold, Percentage | 85.00% | |
Borrowing Base Before Additions | $ 10 | |
Revolving Credit Facility [Member] | Newly Acquired Revenue Equipment [Member] | ||
Borrowing Based Treshhold, Percentage | 85.00% | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 170 | |
Line Of Credit Facility Additional Borrowing Capacity | 80 | |
Line of Credit Facility, Additional Borrowing Capacity, Incremental Amount | $ 20 | |
Debt Instrument, Term | 5 years | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |
Write off of Deferred Debt Issuance Cost | $ 0.8 | |
Debt Instrument, Covenant, Fixed Charge Coverage Ratio | 1 | |
Minimum Excess Availability Percentage of Maximum Revolver Amount | 10.00% | |
Debt, Weighted Average Interest Rate | 1.74% | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 112.7 | |
Letter of Credit Sub Facility [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15 | |
Swing Line Sub Facility [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 20 | |
Letters of Credit Outstanding, Amount | $ 4.3 |
Note 7 - Long-term Debt - Long-
Note 7 - Long-term Debt - Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Revolving credit agreement | $ 53,000 | $ 71,000 |
Other | 896 | |
Total debt | 53,000 | 71,896 |
Less current maturities | (896) | |
Long-term debt, less current maturities | $ 53,000 | $ 71,000 |
Note 8 - Leases and Commitmen35
Note 8 - Leases and Commitments (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Capital Lease Obligations [Member] | Minimum [Member] | ||||
Debt Instrument, Interest Rate, Effective Percentage | 1.65% | 1.65% | ||
Capital Lease Obligations [Member] | Maximum [Member] | ||||
Debt Instrument, Interest Rate, Effective Percentage | 3.11% | 3.11% | ||
Non-Revenue Equipment [Member] | ||||
Purchase Obligation | $ 1.6 | $ 1.6 | ||
Revenue Equipment [Member] | ||||
Purchase Obligation | 60.5 | 60.5 | ||
Capital Lease Obligations | 32.8 | 32.8 | ||
Capital Lease Obligations, Current | 18.3 | 18.3 | ||
Capital Leases, Income Statement, Amortization Expense | 2.5 | $ 3.2 | 5.2 | $ 6.6 |
Operating Leases, Rent Expense | $ 1.5 | $ 1.3 | $ 2.8 | $ 2.6 |
Note 8 - Leases and Commitmen36
Note 8 - Leases and Commitments - Capitalized Leases Included In Property And Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Capitalized Costs | $ 57,370 | $ 75,188 |
Accumulated Amortization | 22,580 | 27,770 |
Net Book Value | 34,790 | 47,418 |
Accumulated Amortization | $ 22,580 | $ 27,770 |
Note 8 - Leases and Commitmen37
Note 8 - Leases and Commitments - Future Minimum Payments Under Capitalized Leases (Details) | Jun. 30, 2015USD ($) |
Capital leases | $ 18,832,000 |
Capital leases | 12,165,000 |
Capital leases | 1,056,000 |
Capital leases | 1,646,000 |
Capital leases | 0 |
Capital leases | 0 |
Operating leases | 3,940,000 |
Operating leases | 3,643,000 |
Operating leases | 3,578,000 |
Operating leases | 1,577,000 |
Operating leases | 10,000 |
Operating leases | $ 233,000 |
Note 9 - Income Taxes (Details
Note 9 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Unrecognized Tax Benefits | $ 0 | $ 0 | ||
Effective Income Tax Rate Reconciliation, Percent | 43.70% | 47.10% | 43.90% | (6.10%) |
Note 10 - Earnings (Loss) Per39
Note 10 - Earnings (Loss) Per Share - Computation of Basic and Diluted Loss Earnings Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator: | ||||
Net income (loss) | $ 2,460 | $ 722 | $ 3,576 | $ (867) |
Denominator: | ||||
Denominator for basic earnings (loss) per share – weighted average shares (in shares) | 10,435,000 | 10,346,000 | 10,423,000 | 10,343,000 |
Effect of dilutive securities: | ||||
Employee stock options and restricted stock (in shares) | 81,000 | 132,000 | 101,000 | 0 |
Denominator for diluted earnings (loss) per share – adjusted weighted average shares and assumed conversion (in shares) | 10,516,000 | 10,478,000 | 10,524,000 | 10,343,000 |
Basic earnings (loss) per share (in dollars per share) | $ 0.24 | $ 0.07 | $ 0.34 | $ (0.08) |
Diluted earnings (loss) per share (in dollars per share) | $ 0.23 | $ 0.07 | $ 0.34 | $ (0.08) |
Weighted average anti-dilutive employee stock options and restricted stock (in shares) | 84,000 | 2,000 | 74,000 | 7,000 |
Note 13 - Subsequent Events (De
Note 13 - Subsequent Events (Details Textual) $ in Millions | 3 Months Ended |
Sep. 30, 2015USD ($) | |
Scenario, Forecast [Member] | Chief Executive Officer [Member] | |
Severance Costs | $ 1.3 |