Press Contact: Douglas C. Sandvig Senior Vice President, Treasurer and Chief Financial Officer Smithway Motor Xpress Corp. (515) 576-7418
SMITHWAY MOTOR XPRESS CORP. REPORTS FOURTH QUARTER AND YEAR END RESULTS
FORT DODGE, IOWA (PR Newswire) February 14, 2005—Smithway Motor Xpress Corp. (Nasdaq SmallCap Market: SMXC) announced today financial and operating results for the fourth quarter and year ended December 31, 2004.
For the fourth quarter of 2004, operating revenue increased approximately 23% to $50.1 million from $40.7 million for the corresponding quarter in 2003. Operating revenue, excluding fuel surcharge revenue of $5.3 million, increased approximately 14% to $44.8 million from $39.4 million for the corresponding quarter in 2003. Net earnings were $387,000, or $0.08 per basic and diluted share, compared with net loss of $268,000, or $0.06 per basic and diluted share, for the same quarter in 2003.
For the year, operating revenue increased approximately 14% to $189.0 million from $165.3 million in 2003. Operating revenue, excluding fuel surcharge revenue of $13.4 million, increased approximately 10% to $175.6 million from $159.5 million in 2003. Net earnings were $2.2 million, or $0.46 per basic share and $0.45 per diluted share, compared with net loss of $2.6 million, or $0.53 per basic and diluted share, for 2003.
Net earnings for 2004 include $727,000, or $0.15 per basic and diluted share, of tax-free life insurance proceeds received during the first quarter. Without the life insurance proceeds, net earnings for the year would have been $1.5 million, or $0.31 per basic and diluted share, compared with net loss of $2.6 million, or $0.53 per basic and diluted share, for 2003.
G. Larry Owens, President and Chief Executive Officer, commented, “Smithway’s results for the fourth quarter 2004 mark our fourth consecutive profitable quarter and first profitable year since 1999. For the quarter, average revenue per seated tractor per week increased by $194, or 8%, compared to the fourth quarter of 2003 as freight demand remains strong. During the quarter we experienced a ten cent increase in revenue per loaded mile, increased revenue miles per tractor, and decreased deadhead.
Higher truck production and freight rates have allowed us to absorb a two cent per mile driver pay increase and unusually high fuel prices. For the first time since 2001 we ended the year with a larger fleet compared to the previous year. We continue to increase freight rates, which will allow us to increase driver wages by another one cent per mile effective March 1, 2005. Almost all of our trucks are seated at this time but we understand that further driver pay increases are necessary to enable us to attract and retain safe, experienced, professional drivers. We continue to modernize our tractor and trailer fleet and plan to purchase 200 replacement tractors and 280 replacement trailers in 2005.
We are pleased with these financial results and look forward to further improvement in 2005 through modest fleet growth and continued improvement in our operating ratio.”
Smithway is a truckload carrier that hauls diversified freight nationwide, concentrating primarily on the flatbed segment of the truckload market. Its Class A Common Stock is traded on the Nasdaq SmallCap Market under the symbol “SMXC.”
This press release and statements made by the Company in its stockholder reports and public filings, as well as oral public statements by Company representatives, may contain certain forward-looking information, usually identified by words such as “anticipates,” “believes,” “estimates,” “projects,” “expects,” or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in forward-looking statements. The following factors, among others, could cause actual results to differ materially from those in forward-looking statements: failure to sustain the recent return to quarterly operating profitability, which could result in violation of bank covenants and acceleration of indebtedness at several financial institutions; the ability to obtain financing on acceptable terms, and obtain waivers and amendments to current financing in the event of default; economic recessions or downturns in customers’ business cycles; excessive increases in capacity within truckload markets; surplus inventories; decreased demand for transportation services offered by the Company; increases or rapid fluctuations in inflation, interest rates, fuel prices, and fuel hedging; the availability and costs of attracting and retaining qualified drivers and owner-operators; increases in insurance premiums and deductible amounts, or changes in excess coverage, relating to accident, cargo, workers’ compensation, health, and other claims; the resale value of used equipment and prices of new equipment; seasonal factors such as harsh weather conditions that increase operating costs; regulatory requirements that increase costs and decrease efficiency, including emissions standards and hours-of-service regulations; changes in management; and the ability to negotiate, consummate, and integrate acquisitions. Readers should review and consider the various disclosures made by the Company in this press release, stockholder reports, and in its Forms 10-K, 10-Q, and other public filings. The Company disclaims any such obligation to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise.
SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except share and per share data and operating statistics)
Three months ended
Year ended
December 31,
December 31,
(unaudited)
(unaudited)
2003
2004
2003
2004
Operating revenue:
Freight
$
40,592
$
49,852
$
164,648
$
188,190
Other
149
212
681
811
Operating revenue
40,741
50,064
165,329
189,001
Operating expenses:
Purchased transportation
13,006
16,254
55,596
61,638
Compensation and employee benefits
12,694
14,196
51,506
54,468
Fuel, supplies, and maintenance
7,506
11,075
29,857
38,427
Insurance and claims
1,125
1,683
4,393
5,636
Taxes and licenses
871
875
3,444
3,653
General and administrative
1,853
1,781
6,934
6,929
Communications and utilities
333
312
1,463
1,274
Depreciation and amortization
3,281
2,645
14,239
12,340
Total operating expenses
40,669
48,821
167,432
184,365
(Loss) earnings from operations
72
1,243
(2,103
)
4,636
Other (expense) income:
Interest expense
(392
)
(422
)
(1,781
)
(1,563
)
Interest income
1
28
26
54
Life Insurance Proceeds
—
—
—
727
(Loss) earnings before income taxes
(319
)
849
(3,858
)
3,854
Income tax (benefit) expense
(51
)
462
(1,269
)
1,613
Net (loss) earnings
$
(268
)
$
387
$
(2,589
)
$
2,241
Basic (loss) earnings per share
$
(0.06
)
$
0.08
$
(0.53
)
$
0.46
Diluted (loss) earnings per share
$
(0.06
)
$
0.08
$
(0.53
)
$
0.45
Basic weighted average common shares outstanding
4,846,821
4,860,841
4,846,821
4,850,935
Diluted weighted average common shares outstanding
4,846,821
4,986,329
4,846,821
4,951,934
Operating Statistics
2003
2004
2003
2004
Operating ratio
99.8
%
97.5
%
101.3
%
97.5
%
Average operating revenue per
$
2,642
$
3,159
$
2,577
$
3,065
tractor per week
Average revenue per tractor per week
$
2,434
*
$
2,679
*
$
2,367
*
$
2,712
*
Average revenue per seated tractor
$
2,548
*
$
2,742
*
$
2,484
*
$
2,797
*
per week
Average length of haul in miles
677
650
659
658
Average revenue per loaded mile
$
1.40
*
$
1.50
*
$
1.37
*
$
1.46
*
Ending company tractors
750
757
750
757
Ending owner/operators tractors
430
445
430
445
Ending trailers
2,278
2,101
2,278
2,101
Weighted average tractors
1,186
1,219
1,234
1,186
*excludes fuel surcharge, brokerage, and other revenue.
SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands)
December 31,
December 31,
2003
2004
ASSETS
Current assets:
Cash and cash equivalents
$
355
$
5,054
Receivables, net
14,697
16,776
Inventories
882
948
Prepaid expenses and other
4,304
4,142
Total current assets
20,238
26,920
Property and equipment
124,634
117,048
Less accumulated depreciation
70,235
67,772
Net property and equipment
54,399
49,276
Other assets
2,043
2,080
Total assets
$
76,680
$
78,276
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current debt
$
10,582
$
9,301
Accounts payable and accrued expenses
13,438
15,256
Total current liabilities
24,020
24,557
Long-term debt
23,035
20,008
Deferred income taxes
9,020
10,702
Total liabilities
56,075
55,267
Stockholders' equity
20,605
23,009
Total liabilities and stockholders’ equity
$
76,680
$
78,276
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