Smithway Motor Xpress (SMXC) 8-K Smithway Reports Record Third Quarter Earnings

EXHIBIT 99
October 24, 2006

FOR IMMEDIATE RELEASE

Press Contact: Douglas C. Sandvig
Senior Vice President,
Treasurer and Chief Financial Officer
Smithway Motor Xpress Corp.
(515) 576-7418

SMITHWAY REPORTS RECORD THIRD QUARTER EARNINGS

FORT DODGE, IOWA (PR Newswire) October 24, 2006—Smithway Motor Xpress Corp. (Nasdaq Capital Market: SMXC) announced today its financial and operating results for the third quarter and nine months ended September 30, 2006.

For the quarter, net earnings improved 6% to $1.7 million compared to $1.6 million for the same quarter in 2005. For the first nine months of 2006, net earnings improved 24% to $4.3 million compared to $3.5 million in the 2005 period.

For the third quarter of 2006, operating revenue increased approximately 3% to $59.0 million from $57.3 million for the corresponding quarter in 2005. Operating revenue, excluding fuel surcharge revenue of $10.4 million, decreased approximately 1% to $48.6 million from $49.1 million, excluding fuel surcharge revenue of $8.2 million, for the corresponding quarter in 2005. For the third quarter of 2006, net earnings were $1.7 million, or $0.35 per basic share and $0.34 per diluted share, compared with net earnings of $1.6 million, or $0.33 per basic share and $0.32 per diluted share, for the same quarter in 2005.

For the first nine months of 2006, operating revenue increased approximately 9% to $177.6 million from $162.4 million for the corresponding period in 2005. Operating revenue, excluding fuel surcharge revenue of $28.7 million, increased approximately 4% to $148.9 million from $142.7 million, excluding fuel surcharge revenue of $19.7 million, for the corresponding period in 2005. For the first nine months of 2006, net earnings were $4.3 million, or $0.87 per basic share and $0.85 per diluted share, compared with net earnings of $3.5 million, or $0.71 per basic share and $0.69 per diluted share, for the same period in 2005.

G. Larry Owens, President and Chief Executive Officer, commented, “Our third quarter 2006 earnings marked the highest quarterly earnings in Smithway history. Our earnings for the first nine months of 2006 were also the highest in history. These strong results boosted our earnings per share for the trailing four quarters to $1.02. Our operating ratio, excluding fuel surcharge revenue, for the quarter was 92.7% compared to 93.3% during the third quarter of 2005, a 60 basis point improvement. For the nine months ended September 30, 2006, our operating ratio improved by 100 basis points.

“We were able to achieve these improved results despite lower freight demand, escalating fuel prices and increased driver pay which increased our costs and reduced our truck production. A 5% increase in our rate per loaded mile somewhat offset these negative factors, resulting in a 3.9% decrease in revenue per seated tractor per week, compared to the third quarter 2005.

“During the quarter, average fuel prices increased 14% to $2.81 per gallon compared to $2.46 per gallon in the third quarter of 2005. Fuel surcharge revenue mitigated 90% of this price increase. We raised driver wages on April 1, 2006 and may be required to do so again in order to continue to attract and retain qualified drivers.

“We are proud of our record earnings this quarter, which were achieved by our team during a time of moderating freight demand and increasing costs. We continue our focus on excellence in operations as well as our commitment to disciplined cost controls so that we can positively impact future earnings.”

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 Capital 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,” “plans,” “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 quarterly and annual 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 obligation to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise.

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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						Nine months ended
	September 30,						September 30,
	(unaudited)						(unaudited)
		2005			2006			2005			2006
Operating revenue:
Freight	$	56,867		$	58,458		$	161,272		$	176,106
Other		440			541			1,115			1,463
Operating revenue		57,307			58,999			162,387			177,569
Operating expenses:
Purchased transportation		20,423			20,546			55,938			62,780
Compensation and employee benefits		13,866			13,629			42,107			43,441
Fuel, supplies, and maintenance		13,106			14,276			36,121			41,217
Insurance and claims		1,309			1,402			4,975			4,320
Taxes and licenses		880			942			2,785			2,908
General and administrative		1,826			2,054			5,592			5,946
Communications and utilities		266			276			862			893
Gain on disposal of assets		(476	)		(839	)		(1,496	)		(2,151	)
Depreciation and amortization		2,810			3,142			8,154			9,017
Total operating expenses		54,010			55,428			155,038			168,371
Earnings from operations		3,297			3,571			7,349			9,198
Other (expense) income:
Interest expense		(500	)		(629	)		(1,268	)		(1,669	)
Interest income		47			67			98			126
Earnings before income taxes		2,844			3,009			6,179			7,655
Income tax expense		1,216			1,287			2,693			3,331
Net earnings	$	1,628		$	1,722		$	3,486		$	4,324
Basic earnings per share	$	0.33		$	0.35		$	0.71		$	0.87
Diluted earnings per share	$	0.32		$	0.34		$	0.69		$	0.85
Basic weighted average common shares outstanding		4,936,624			4,988,124			4,925,818			4,979,501
Diluted weighted average common shares outstanding		5,060,194			5,083,302			5,043,778			5,080,523
OPERATING STATISTICS
Operating ratio (1)		94.2	%		93.9	%		95.5	%		94.8	%
Operating ratio, excluding fuel surcharges (2)		93.3	%		92.7	%		94.8	%		93.8	%
Average operating revenue per tractor per week	$	3,572		$	3,571		$	3,374		$	3,599
Average revenue per tractor per week (3)	$	2,884		$	2,795		$	2,806		$	2,852
Average revenue per seated tractor per week(3)	$	2,956		$	2,842		$	2,890		$	2,913
Average length of haul in miles		622			606			625			611
Average revenue per loaded mile (3)	$	1.55		$	1.63		$	1.54		$	1.62
Ending company tractors		769			791			769			791
Ending owner/operators tractors		478			485			478			485
Ending trailers		2,170			2,133			2,170			2,133
Weighted average tractors		1,234			1,271			1,234			1,265

(1) Operating expenses divided by operating revenue.
(2) Operating expenses minus fuel surcharge revenue, divided by operating revenue excluding fuel surcharge revenue.
(3) Excludes fuel surcharge, brokerage, and other revenue. For the three months ended September 30, 2005 and 2006, brokerage revenue was $1,918 and $2,377. For the nine months ended September 30, 2005 and 2006, brokerage revenue was $6,497 and $6,674.

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SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

	December 31,		September 30,
	2005		2006
			(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	168	$	1,907
Receivables, net		19,820		21,402
Inventories		938		1,083
Prepaid expenses and other		5,705		6,986
Total current assets		26,631		31,378
Property and equipment		121,126		125,310
Less accumulated depreciation		59,704		54,798
Net property and equipment		61,422		70,512
Other assets		2,058		2,060
Total assets	$	90,111	$	103,950
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current debt	$	8,363	$	10,116
Accounts payable and accrued expenses		17,351		19,442
Total current liabilities		25,714		29,558
Long-term debt		25,185		29,066
Deferred income taxes		11,734		13,389
Total liabilities		62,633		72,013
Stockholders’ equity		27,478		31,937
Total liabilities and stockholders’ equity	$	90,111	$	103,950

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