| Non-GAAP Reconciliation - Adjusted Net Income and EPS (unaudited) |
| | | | | | | | | | | | | | | | |
| | | | | | Quarter Ended December 31, | | | Year Ending December 31, | |
| (in thousands, except per share data) | | | | | 2022 | | | 2021 | | | 2022 | | | 2021 | |
| GAAP: Net income (loss) attributable to controlling interest | | | $ | (11,211 | ) | | $ | (5,286 | ) | | $ | (40,457 | ) | | $ | 10,870 | |
| Adjusted for: | | | | | | | | | | | | | | | | | | | |
| Income tax provision (benefit) | | | | | | (3,323 | ) | | | (4,299 | ) | | | (13,179 | ) | | | 433 | |
| Income (loss) before income taxes attributable to controlling interest | | | $ | (14,534 | ) | | $ | (9,585 | ) | | $ | (53,636 | ) | | $ | 11,303 | |
Unrealized loss (gain) on equity investment1 | | | | | | 2,107 | | | | 452 | | | | 12,096 | | | | (7,677 | ) |
Gain on sale of terminal2 | | | | | | - | | | | - | | | | (4,002 | ) | | | - | |
Gain on sale of equity method investment3 | | |
| | | | - | | | | - | | | | (1,258 | ) | | | - | |
Impairment charges4 | | | | | | | - | | | | 4,334 | | | | 4,218 | | | | 4,334 | |
| Adjusted income (loss) before income taxes | | | | | | | (12,427 | ) | | | (4,799 | ) | | | (42,582 | ) | | | 7,960 | |
| Adjusted income tax (benefit) | | | | | | | (3,266 | ) | | | (2,804 | ) | | | (10,432 | ) | | | (198 | ) |
| Non-GAAP: Adjusted net income (loss) attributable to controlling interest | | | $ | (9,161 | ) | | $ | (1,995 | ) | | $ | (32,150 | ) | | $ | 8,158 | |
| | | | | | | | | | | | | | | | | | | | | |
| GAAP: Earnings (losses) per diluted share | | | | | | $ | (0.22 | ) | | $ | (0.10 | ) | | $ | (0.79 | ) | | $ | 0.21 | |
| Adjusted for: | | | | | | | | | | | | | | | | | | | | |
| Income tax expense attributable to controlling interest | | | | (0.06 | ) | | | (0.09 | ) | | | (0.26 | ) | | | 0.01 | |
| Income (loss) before income taxes attributable to controlling interest | | | $ | (0.28 | ) | | $ | (0.19 | ) | | $ | (1.05 | ) | | $ | 0.22 | |
Unrealized loss (gain) on equity investment1 | | | | | | | 0.04 | | | | 0.01 | | | | 0.24 | | | | (0.15 | ) |
Gain on sale of terminal2 | | | | | | | - | | | | - | | | | (0.08 | ) | | | - | |
Gain on sale of equity method investment3 | | | | | | | - | | | | - | | | | (0.02 | ) | | | - | |
Impairment charges4 | | | | | | | - | | | | 0.09 | | | | 0.08 | | | | 0.08 | |
| Adjusted income (loss) before income taxes | | | | | | | (0.24 | ) | | | (0.09 | ) | | | (0.83 | ) | | | 0.15 | |
| Adjusted income tax (benefit) | | | | | | | (0.06 | ) | | | (0.05 | ) | | | (0.20 | ) | | | (0.01 | ) |
| Non-GAAP: Adjusted earnings (losses) per diluted share attributable to controlling interest | | | $ | (0.18 | ) | | $ | (0.04 | ) | | $ | (0.63 | ) | | $ | 0.16 | |
| | | | | | | | | | | | | | | | | | | | | |
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 and third quarter of 2022, we incurred a non-cash adjustment 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, future utilization, the expected impact of the Company’s realignment plan, the Company’s spot market exposure, cost structure, Truckload operations and OTR division, 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; 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 premiums 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 premiums 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 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 U.S. 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.
Investor Contact
Matt Garvie
Vice President, Investor Relations
(423)-633-7153
mgarvie@usxpress.com
| Condensed Consolidated Income Statements (unaudited) |
| | | Quarter Ended December 31, | | | Year Ending December 31, | |
| (in thousands, except per share data) | | 2022 | | | 2021 | | | 2022 | | | 2021 | |
| Operating Revenue: | | | | | | | | | | | | |
| Revenue, excluding fuel surcharge | | $ | 475,209 | | | $ | 487,280 | | | $ | 1,896,149 | | | $ | 1,794,278 | |
| Fuel surcharge | | | 67,242 | | | | 44,325 | | | | 265,021 | | | | 154,248 | |
| Total operating revenue | | | 542,451 | | | | 531,605 | | | | 2,161,170 | | | | 1,948,526 | |
| Operating Expenses: | | | | | | | | | | | | | | | | |
| Salaries, wages and benefits | | | 187,432 | | | | 174,538 | | | | 726,308 | | | | 619,983 | |
| Fuel and fuel taxes | | | 87,335 | | | | 51,973 | | | | 328,037 | | | | 182,875 | |
| Vehicle rents | | | 29,254 | | | | 24,375 | | | | 104,121 | | | | 90,085 | |
| Depreciation and amortization, net of (gain) loss | | | 25,456 | | | | 16,880 | | | | 82,289 | | | | 81,976 | |
| Purchased transportation | | | 118,710 | | | | 175,969 | | | | 533,014 | | | | 634,271 | |
| Operating expense and supplies | | | 47,822 | | | | 42,138 | | | | 191,654 | | | | 147,779 | |
| Insurance premiums and claims | | | 28,283 | | | | 24,424 | | | | 115,735 | | | | 83,376 | |
| Operating taxes and licenses | | | 3,883 | | | | 4,297 | | | | 15,663 | | | | 14,490 | |
| Communications and utilities | | | 3,741 | | | | 4,610 | | | | 14,856 | | | | 12,639 | |
| General and other operating | | | 16,203 | | | | 17,511 | | | | 71,643 | | | | 62,623 | |
| Total operating expenses | | | 548,119 | | | | 536,715 | | | | 2,183,320 | | | | 1,930,097 | |
| Operating Income (Loss) | | | (5,668 | ) | | | (5,110 | ) | | | (22,150 | ) | | | 18,429 | |
| Other Expenses (Income): | | | | | | | | | | | | | | | | |
| Interest expense, net | | | 6,073 | | | | 3,716 | | | | 19,054 | | | | 14,532 | |
| Other, net | | | 2,107 | | | | 452 | | | | 10,838 | | | | (7,677 | ) |
| | | | 8,180 | | | | 4,168 | | | | 29,892 | | | | 6,855 | |
| Income (Loss) Before Income Taxes | | | (13,848 | ) | | | (9,278 | ) | | | (52,042 | ) | | | 11,574 | |
| Income Tax Provision (Benefit) | | | (3,323 | ) | | | (4,299 | ) | | | (13,179 | ) | | | 433 | |
| Net Income (Loss) | | | (10,525 | ) | | | (4,979 | ) | | | (38,863 | ) | | | 11,141 | |
| Net Income attributable to non-controlling interest | | | 686 | | | | 307 | | | | 1,594 | | | | 271 | |
| Net Income (Loss) attributable to controlling interest | | $ | (11,211 | ) | | $ | (5,286 | ) | | $ | (40,457 | ) | | $ | 10,870 | |
| | | | | | | | | | | | | | | | | |
| Income (Loss) Per Share | | | | | | | | | | | | | | | | |
| Basic earnings (losses) per share | | $ | (0.22 | ) | | $ | (0.10 | ) | | $ | (0.79 | ) | | $ | 0.22 | |
| Basic weighted average shares outstanding | | | 51,602 | | | | 50,598 | | | | 51,311 | | | | 50,370 | |
| Diluted earnings (losses) per share | | $ | (0.22 | ) | | $ | (0.10 | ) | | $ | (0.79 | ) | | $ | 0.21 | |
| Diluted weighted average shares outstanding | | | 51,602 | | | | 50,598 | | | | 51,311 | | | | 52,167 | |
| Condensed Consolidated Balance Sheets (unaudited) |
| | | December 31, | | | December 31, | |
| (in thousands) | | 2022 | | | 2021 | |
| Assets | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 2,275 | | | $ | 5,695 | |
| Customer receivables, net of allowance of $990 and $11, respectively | | | 222,794 | | | | 231,687 | |
| Other receivables | | | 17,676 | | | | 18,046 | |
| Prepaid insurance and licenses | | | 13,847 | | | | 13,867 | |
| Operating supplies | | | 8,410 | | | | 9,550 | |
| Assets held for sale | | | 25,759 | | | | 11,831 | |
| Other current assets | | | 46,642 | | | | 32,020 | |
| Total current assets | | | 337,403 | | | | 322,696 | |
| Property and equipment, at cost | | | 980,607 | | | | 890,933 | |
| Less accumulated depreciation and amortization | | | (397,806 | ) | | | (370,112 | ) |
| Net property and equipment | | | 582,801 | | | | 520,821 | |
| Other assets: | | | | | | | | |
| Operating lease right-of-use assets | | | 333,498 | | | | 292,347 | |
| Goodwill | | | 59,221 | | | | 59,221 | |
| Intangible assets, net | | | 23,784 | | | | 24,129 | |
| Other | | | 44,758 | | | | 50,829 | |
| Total other assets | | | 461,261 | | | | 426,526 | |
| Total assets | | $ | 1,381,465 | | | $ | 1,270,043 | |
| Liabilities and Stockholders' Equity | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable | | $ | 111,222 | | | $ | 126,910 | |
| Book overdraft | | | 4,213 | | | | 7,096 | |
| Accrued wages and benefits | | | 35,457 | | | | 45,011 | |
| Claims and insurance accruals | | | 73,372 | | | | 44,309 | |
| Other accrued liabilities | | | 8,703 | | | | 5,962 | |
| Current portion of operating leases | | | 105,078 | | | | 88,375 | |
| Current maturities of long-term debt and finance leases | | | 124,033 | | | | 85,117 | |
| Total current liabilities | | | 462,078 | | | | 402,780 | |
| Long-term debt and finance leases, net of current maturities | | | 360,175 | | | | 290,392 | |
| Less debt issuance costs | | | (310 | ) | | | (357 | ) |
| Net long-term debt and finance leases | | | 359,865 | | | | 290,035 | |
| Deferred income taxes | | | 9,718 | | | | 24,301 | |
| Other long-term liabilities | | | 22,878 | | | | 14,457 | |
| Claims and insurance accruals, long-term | | | 50,825 | | | | 54,819 | |
| Noncurrent operating lease liability | | | 230,505 | | | | 205,362 | |
| Commitments and contingencies | | | - | | | | - | |
| Stockholders' Equity: | | | | | | | | |
| Common stock | | | 515 | | | | 505 | |
| Additional paid-in capital | | | 273,781 | | | | 267,621 | |
| Retained earnings (deficit) | | | (32,017 | ) | | | 8,440 | |
| Stockholders' equity | | | 242,279 | | | | 276,566 | |
| Noncontrolling interest | | | 3,317 | | | | 1,723 | |
| Total stockholders' equity | | | 245,596 | | | | 278,289 | |
| Total liabilities and stockholders' equity | | $ | 1,381,465 | | | $ | 1,270,043 | |
| Condensed Consolidated Cash Flow Statements (unaudited) |
| | | Year Ending December 31, | |
| (in thousands) | | 2022 | | | 2021 | |
| Operating activities | | | | | | |
| Net income (loss) | | $ | (38,863 | ) | | $ | 11,141 | |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |
| Deferred income tax benefit | | | (14,583 | ) | | | (861 | ) |
| Depreciation and amortization | | | 82,756 | | | | 82,975 | |
| Gains on sale of property and equipment | | | (467 | ) | | | (999 | ) |
| Share based compensation | | | 5,287 | | | | 6,244 | |
| Other | | | 332 | | | | 684 | |
| Unrealized loss (gain) on investment | | | 12,096 | | | | (7,677 | ) |
| Changes in operating assets and liabilities | | | | | | | | |
| Receivables | | | 6,839 | | | | (38,556 | ) |
| Prepaid insurance and licenses | | | 99 | | | | 398 | |
| Operating supplies | | | 1,234 | | | | (465 | ) |
| Other assets | | | (149 | ) | | | (20,578 | ) |
| Accounts payable and other accrued liabilities | | | (1,564 | ) | | | 41,345 | |
| Accrued wages and benefits | | | (9,553 | ) | | | 4,916 | |
| Net cash provided by operating activities | | | 43,464 | | | | 78,567 | |
| Investing activities | | | | | | | | |
| Payments for purchases of property and equipment | | | (199,134 | ) | | | (192,366 | ) |
| Proceeds from sales of property and equipment | | | 46,020 | | | | 95,369 | |
| Net cash used in investing activities | | | (153,114 | ) | | | (96,997 | ) |
| Financing activities | | | | | | | | |
| Borrowings under lines of credit | | | 494,196 | | | | 334,512 | |
| Payments under lines of credit | | | (421,896 | ) | | | (310,612 | ) |
| Borrowings under long-term debt | | | 130,336 | | | | 124,721 | |
| Payments of long-term debt and finance leases | | | (95,054 | ) | | | (137,661 | ) |
| Payments of financing costs | | | - | | | | (100 | ) |
| Tax withholding related to net share settlement of restricted stock awards | | | (440 | ) | | | (1,237 | ) |
| Proceeds from long-term consideration for sale of subsidiary | | | 648 | | | | 617 | |
| Proceeds from issuance of common stock under ESPP | | | 1,323 | | | | 1,284 | |
| Book overdraft | | | (2,883 | ) | | | 7,096 | |
| Net cash provided by financing activities | | | 106,230 | | | | 18,620 | |
| Net change in cash and cash equivalents | | | (3,420 | ) | | | 190 | |
| Cash and cash equivalents | | | | | | | | |
| Beginning of year | | | 5,695 | | | | 5,505 | |
| End of period | | $ | 2,275 | | | $ | 5,695 | |
| Truckload Statistics (unaudited) |
| | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended December 31, | | | % | | | Year Ending December 31, | | | % | |
| | | 2022 | | | 2021 | | | Change | | | 2022 | | | 2021 | | | Change | |
| Over-the-road (OTR) | | | | | | | | | | | | | | | | | | |
Average revenue per tractor per week1 | | $ | 3,638 | | | $ | 3,610 | | | | 0.8 | % | | $ | 3,808 | | | $ | 3,732 | | | | 2.0 | % |
Average revenue per mile1 | | $ | 2.417 | | | $ | 2.481 | | | | (2.6 | %) | | $ | 2.492 | | | $ | 2.333 | | | | 6.8 | % |
| Average revenue miles per tractor per week | | | 1,505 | | | | 1,455 | | | | 3.4 | % | | | 1,528 | | | | 1,600 | | | | (4.5 | %) |
| Average tractors | | | 4,160 | | | | 3,614 | | | | 15.1 | % | | | 3,858 | | | | 3,442 | | | | 12.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Dedicated | | | | | | | | | | | | | | | | | | | | | | | | |
Average revenue per tractor per week1 | | $ | 4,792 | | | $ | 4,617 | | | | 3.8 | % | | $ | 4,823 | | | $ | 4,359 | | | | 10.6 | % |
Average revenue per mile1 | | $ | 3.022 | | | $ | 2.714 | | | | 11.3 | % | | $ | 2.926 | | | $ | 2.518 | | | | 16.2 | % |
| Average revenue miles per tractor per week | | | 1,586 | | | | 1,701 | | | | (6.8 | %) | | | 1,648 | | | | 1,731 | | | | (4.8 | %) |
| Average tractors | | | 2,812 | | | | 2,533 | | | | 11.0 | % | | | 2,696 | | | | 2,564 | | | | 5.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Consolidated | | | | | | | | | | | | | | | | | | | | | | | | |
Average revenue per tractor per week1 | | $ | 4,104 | | | $ | 4,025 | | | | 2.0 | % | | $ | 4,225 | | | $ | 4,000 | | | | 5.6 | % |
Average revenue per mile1 | | $ | 2.669 | | | $ | 2.586 | | | | 3.2 | % | | $ | 2.679 | | | $ | 2.416 | | | | 10.9 | % |
| Average revenue miles per tractor per week | | | 1,538 | | | | 1,556 | | | | (1.2 | %) | | | 1,577 | | | | 1,656 | | | | (4.8 | %) |
| Average tractors | | | 6,972 | | | | 6,147 | | | | 13.4 | % | | | 6,553 | | | | 6,006 | | | | 9.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Average tractors - | | | | | | | | | | | | | | | | | | | | | | | | |
| Company owned | | | 6,077 | | | | 5,066 | | | | 20.0 | % | | | 5,605 | | | | 4,731 | | | | 18.5 | % |
| Owner operators | | | 895 | | | | 1,081 | | | | (17.2 | %) | | | 948 | | | | 1,275 | | | | (25.6 | %) |
| Total average tractors | | | 6,972 | | | | 6,147 | | | | 13.4 | % | | | 6,553 | | | | 6,006 | | | | 9.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Miles driven - | | | | | | | | | | | | | | | | | | | | | | | | |
| Total company miles | | | 132,990 | | | | 114,713 | | | | 15.9 | % | | | 503,250 | | | | 450,493 | | | | 11.7 | % |
| Total independent contractor miles | | | 21,922 | | | | 26,459 | | | | (17.1 | %) | | | 93,635 | | | | 127,596 | | | | (26.6 | %) |
| Total miles | | | 154,912 | | | | 141,172 | | | | 9.7 | % | | | 596,885 | | | | 578,089 | | | | 3.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Independent contractor fuel surcharge | | $ | 10,799 | | | $ | 8,420 | | | | 28.3 | % | | $ | 44,972 | | | $ | 32,503 | | | | 38.4 | % |
1 Excluding fuel surcharge revenues | | | | | | | | | | | | | | | | | |
