Contact: | Ray Harlin | |
Chief Financial Officer | ||
(423) 510-3323 |
U.S. XPRESS ENTERPRISES REPORTS HIGHER SECOND QUARTER RESULTS
Posts Sixth Consecutive Quarter of Year-Over-Year Earnings Improvement
CHATTANOOGA, Tenn. (July 16, 2003) — U.S. Xpress Enterprises, Inc. (NASDAQ/NM: XPRSA) announced operating revenues and earnings for the second quarter ended June 30, 2003. Operating revenues increased 7.6% to $231.9 million, compared with $215.6 million for the second quarter of 2002. For the six months ended June 30, 2003, revenues increased 9.6% to $452.6 million from $412.9 million in the prior-year period.
Net income for the second quarter was $2.2 million, or $0.16 per diluted share, compared with net income of $931,000, or $0.07 per diluted share, in the second quarter of 2002. For the first six months of 2003, the Company reported net income of $2.3 million, or $0.17 per share, compared with a net loss of $505,000, or $0.04 per share, for the prior-year period. The first six months of 2002 included a non-cash charge for the early extinguishment of debt of approximately $1.1 million, or $0.08 per diluted share.
Commenting on the announcement, Patrick Quinn, Co-Chairman of U.S. Xpress, stated, “We are pleased with the continued trend of sequential and year-over-year improvement in our operating results. In our truckload operations, operating income and revenues improved during the second quarter despite the lackluster economic environment, which adversely impacted loaded miles per tractor. Revenue excluding the effect of fuel surcharges increased 3.2% to $197.0 million as we continued to expand our regional and dedicated contract operations. The 10.7% increase to $5.7 million in operating income was achieved through a 2.9% increase in revenue per loaded mile and control of fixed expenses.
“The Xpress Global Systems operating segment increased revenues in the second quarter by 25.3% to $35.4 million driven by new business awards and strong demand experienced in our floorcovering distribution operation and expanded volume in our existing airport to airport network. The increase in operating income to $1.2 million compared to $454,000 in the prior year quarter resulted from improved yields within the floorcovering distribution operation.”
Investor Conference Call and Simulcast
U.S. Xpress Enterprises, Inc. will conduct a conference call, at 11:00 am EDT on July 17, 2003, to discuss this quarter’s results. The number to call for this interactive teleconference is (719) 457-2637. A seven-day replay of the conference call will be available by dialing (719) 457-0820 and entering the passcode, 264243.
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4080 Jenkins Road, Chattanooga, TN 37421
423.510.3000
XPRSA Reports Second Quarter Results
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July 16, 2003
The Company will also provide an online Web simulcast and rebroadcast of its 2003 second quarter earnings release conference call. The live broadcast of U.S. Xpress’ quarterly conference call will be available online at the Company’s website, www.usxpress.com, as well as www.firstcallevents.com/service/ajwz383734766gf12.html on July 17, 2003, beginning at 11:00 a.m. EDT. The online replay will follow shortly after the call and continue through July 31, 2003.
U.S. Xpress Enterprises, Inc. is the fifth-largest publicly owned truckload carrier in the United States. The Company provides regional, dedicated and expedited truckload services throughout North America, with regional capabilities in the West, Midwest and Southeastern United States. The Company is one of the largest providers of expedited and time-definite services in the truckload sector. U.S. Xpress focuses on customers operating in dedicated, just-in-time or deferred airfreight market segments, while utilizing one of the largest team-operated fleets in the industry. Xpress Global Systems, Inc., a wholly owned subsidiary, is the leading provider of transportation, warehousing and distribution services to the floor coverings industry and provides airport-to-airport transportation services to the airfreight and airfreight forwarding industries through a network of over 80 locations in North America. Xpress Global Systems also provides distribution-related services to a number of other industries, including retail, automotive and building materials. The Company also offers logistic services through its joint ownership of Transplace, an Internet-based global transportation logistics company.
This press release contains certain forward-looking information that is subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Without limitation, these risks and uncertainties include economic recession or downturns in customers’ business cycles, rapid fluctuations in fuel pricing or availability, increases in interest rates, the availability of adequate sources of financing and the availability of qualified drivers. Readers are urged to carefully review and consider the various disclosures made by the company in this press release and in the company’s periodic reports on forms 10-K and 10-Q.
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U.S. XPRESS ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, ---------------------------------- ------------------------------- 2003 2002 2003 2002 --------------- --------------- -------------- ------------- Operating Revenue $ 231,934 $ 215,636 $ 452,600 $ 412,856 --------------- --------------- -------------- ------------- Operating Expenses: Salaries, wages and benefits 80,884 77,262 156,475 150,593 Fuel and fuel taxes 32,209 28,956 69,640 55,291 Vehicle rents 19,760 17,562 37,677 35,484 Depreciation and amortization, net of gain on sale 9,134 9,299 18,282 18,183 Purchased transportation 38,384 35,726 74,591 65,962 Operating expense and supplies 16,811 15,243 32,564 28,927 Insurance premiums and claims 11,779 11,085 22,684 20,081 Operating taxes and licenses 3,519 3,214 6,616 6,389 Communications and utilities 3,037 2,851 6,001 5,674 General and other operating 9,479 8,796 17,963 17,790 Early extinguishment of debt - - - 1,776 --------------- --------------- -------------- ------------- Total operating expenses 224,996 209,994 442,493 406,150 --------------- --------------- -------------- ------------- Income from Operations 6,938 5,642 10,107 6,706 Interest Expense, net 2,510 3,605 5,438 7,010 --------------- --------------- -------------- ------------- Income (Loss) Before Income Taxes 4,428 2,037 4,669 (304) Income Tax Provision 2,214 1,106 2,334 201 --------------- --------------- -------------- ------------- Net Income (Loss) $ 2,214 $ 931 $ 2,335 $ (505) =============== =============== ============== ============= Earnings (Loss) Per Share - basic $ 0.16 $ 0.07 $ 0.17 $ (0.04) =============== =============== ============== ============= Weighted average shares - basic 13,949 13,853 13,940 13,852 =============== =============== ============== ============= Earnings (Loss) Per Share - diluted $ 0.16 $ 0.07 $ 0.17 $ (0.04) =============== =============== ============== ============= Weighted average shares - diluted 14,092 14,076 14,063 13,852 =============== =============== ============== =============
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U.S. XPRESS ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, ---------------------------------- ------------------------------- 2003 2002 2003 2002 --------------- --------------- -------------- ------------- Operating Revenue 100.0 % 100.0 % 100.0 % 100.0 % --------------- --------------- -------------- ------------- Operating Expenses: Salaries, wages and benefits 34.9 35.8 34.6 36.5 Fuel and fuel taxes 13.9 13.4 15.4 13.4 Vehicle rents 8.5 8.1 8.3 8.6 Depreciation and amortization, net of gain on sale 3.9 4.3 4.0 4.4 Purchased transportation 16.5 16.6 16.5 16.0 Operating expense and supplies 7.2 7.1 7.2 7.0 Insurance premiums and claims 5.1 5.1 5.0 4.9 Operating taxes and licenses 1.5 1.5 1.5 1.5 Communications and utilities 1.3 1.3 1.3 1.4 General and other operating 4.2 4.2 4.0 4.3 Early extinguishment of debt 0.0 0.0 0.0 0.4 --------------- --------------- -------------- ------------- Total operating expenses 97.0 97.4 97.8 98.4 --------------- --------------- -------------- ------------- Income from Operations 3.0 2.6 2.2 1.6 Interest Expense, net 1.1 1.7 1.2 1.7 --------------- --------------- -------------- ------------- Income (Loss) Before Income Taxes 1.9 0.9 1.0 (0.1) Income Tax Provision 0.9 0.5 0.5 0.0 --------------- --------------- -------------- ------------- Net Income (Loss) 1.0 % 0.4 % 0.5 % (0.1) % =============== =============== ============== =============
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XPRSA Reports Second Quarter Results
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U.S. XPRESS ENTERPRISES, INC. KEY OPERATING FACTORS Three Months Ended Six Months Ended June 30, June 30, % % 2003 2002 Change 2003 2002 Change ------------- ------------- ----------- ------------ -------------- ----------- OPERATING RATIO 97.0 % 97.4 % -0.4 % 97.8 % 98.4 % -0.6 % OPERATING REVENUE: US Xpress, net of fuel surcharge $197,011 $190,991 3.2 % $386,911 $367,947 5.2 % Fuel Surcharge 8,365 3,436 143.5 % 18,632 4,580 306.8 % Xpress Global Systems 35,385 28,234 25.3 % 64,494 52,946 21.8 % Inter-company (8,827) (7,025) 25.7 % (17,437) (12,617) 38.2 % ------------- ------------- ---------- ------------- ------------- ---------- Total Operating Revenue $231,934 $215,636 7.6 % $452,600 $412,856 9.6 % OPERATING INCOME: US Xpress $5,742 $5,188 10.7 % $8,786 $7,988 10.0 % Xpress Global Systems 1,196 454 163.4 % 1,321 494 167.4 % Early extinguishment of debt - - - - (1,776) - ------------ ------------ ----------- ------------ ------------- ----------- Total Operating Income $6,938 $5,642 23.0 % $10,107 $6,706 50.7 % TRUCKLOAD STATISTICS: Revenue Per Mile (a) $1.286 $1.250 2.9 % $1.281 $1.244 3.0 % Revenue Per Total Mile (a) $1.156 $1.124 2.8 % $1.150 $1.119 2.8 % Tractors (at end of period)- Company owned 4,425 4,331 2.2 % 4,425 4,331 2.2 % Owner Operators 949 1,011 -6.1 % 949 1,011 -6.1 % ------------- ------------- ----------- ------------ ------------ ----------- Total Tractors (at end of period) 5,374 5,342 0.6 % 5,374 5,342 0.6 % Average Number of Tractors in Fleet During Period 5,484 5,304 3.4 % 5,496 5,282 4.1 % Average revenue miles per tractor per period 27,780 28,625 -2.9 % 54,442 55,658 -2.2 % Average revenue per tractor per period $35,724 $35,791 -0.2 % $69,715 $69,261 0.7 % Empty Mile percentage 10.07 % 10.13 % -0.6 % 10.20 % 10.09 % 1.1 % June 30, 2003 December 31, 2002 ----------------------------- ----------------------------- BALANCE SHEET DATA: Total Assets $406,913 $438,539 Total Equity 161,275 158,432 Long-term Debt, including Current Maturities 132,575 167,863 (a) Net of fuel surcharges.
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