Exhibit 99.1 Transport Corporation of America Reports Third Quarter Results MINNEAPOLIS, Oct. 27 /PRNewswire-FirstCall/ -- Transport Corporation of America, Inc. (Nasdaq: TCAM) today announced revenues for the third quarter 2004 of $65.7 million, compared to revenues of $64.1 million for the third quarter 2003, an increase of 2.5 percent. Excluding fuel surcharge revenues, revenues decreased 1.5 percent to $60.9 million in the third quarter 2004 from $61.8 million in the same period of 2003. Third quarter's net earnings were $36,000 or $0.01 per diluted share, compared with 2003 third quarter net earnings before cumulative effect of change in accounting principle of $1.0 million, or $0.15 per diluted share. The 2003 third quarter results included a pretax gain of $1.3 million ($0.8 million after taxes, or $0.11 per diluted share), related to the sale of the Company's Clarksville maintenance facility. During the third quarter 2003, the Company adopted the provisions of the Financial Accounting Standards Board's Interpretation No. 46 (FIN No. 46), "Consolidation of Variable Interest Entities," as it relates to the Company's leased corporate office facility. Accordingly, the Company recorded an after- tax charge for cumulative effect of change in accounting principle of $1.1 million as part of the initial adoption of this Interpretation. Including the cumulative-effect adjustment, the Company reported a net loss of $46,000, or $0.01 per share, for the third quarter 2003. Michael Paxton, Chairman, President and Chief Executive Officer, commented, "While our underlying business fundamentals and the demand for freight continues to remain very strong, the Company experienced an unfortunate increase in accident costs in the third quarter. Insurance, claims and damage expense was $3.9 million, or 6.0% of revenue, during the third quarter 2004 compared to $2.4 million, or 3.8% of revenue, for the same period 2003. This increase is primarily due to several serious accidents that occurred during the quarter. While we are disappointed with the increased accident costs, we believe this to be an anomaly. Our record based on accidents per million miles continues to be one of the best in the industry." "Our operating statistics continue to demonstrate the merits of focusing on lane density and balance," Paxton noted. "Revenue per tractor per week, excluding fuel surcharge, increased by 5.8 percent to $2,882 for the third quarter 2004 compared to $2,725 for the same period 2003. Revenue per loaded mile, excluding fuel surcharge, increased by 5.6 percent to $1.50 for the third quarter 2004 compared to $1.42 for the same period 2003. This marks the seventh consecutive quarter we have experienced an increase in our average revenue per loaded mile." (The financial tables at the end of this release reconcile the differences between these non-GAAP financial measures excluding fuel surcharges and the most directly comparable GAAP measures including fuel surcharges.) Paxton continued, "The industry's major challenge continues to be that the tight driver hiring market and the limited availability of owner operator capacity limits the amount of freight we are able to haul. At the end of the third quarter of 2004, the Company had 151 fewer tractors on the road than at the end of the third quarter 2003, which is due entirely to attrition in our independent contractor fleet. We have taken steps to increase our company- owned fleet and attract independent contractors through an expanded lease-to- own program, which we believe will increase our overall seated capacity." Paxton further noted, "Even though the Company faced challenges in the third quarter related to seated capacity and increased accident costs, we continued to focus on improving the balance sheet. The Company again used cash generated from operations to pay down an additional $0.3 million in debt during the quarter. At September 30, 2004, our total outstanding debt balance was $51.0 million compared to $65.0 million at September 30, 2003. At September 30, 2004, the Company also had $5.4 million in cash compared to $0.1 million at September 30, 2003. These funds will be used to reduce the amount of financing required to replace revenue equipment or to continue to purchase and retire Company stock." Year-To-Date Results For the nine-month period ended September 30, 2004, Transport America announced revenues of $193.1 million, compared with 2003 year-to-date revenues of $196.8 million. Excluding fuel surcharge revenues, revenues decreased 3.7% to $181.3 million for the nine-month period ended September 30, 2004 from $188.3 million in the same period of 2003. Net earnings for the nine-month period were $0.9 million, or $0.13 per diluted share, compared with a 2003 net loss before cumulative effect of change in accounting principle of $0.2 million, or $0.03 per share. As discussed above, the Company also recorded a charge for cumulative effect of a change in accounting principle of $1.1 million, or $0.15 per share, as part of the adoption of FIN No. 46, and an additional charge of $64,000, or $0.01 per share, for a change in accounting principle relating to environmental disposal costs on tires. Including the cumulative-effect adjustments, the Company reported a year-to-date net loss of $1.4 million, or $0.20 per share, for the nine-month period ending September 30, 2003. Included in the 2004 results is an after-tax impairment charge of $114,000, or $0.02 per diluted share, related to the difference between the Company's current rent on a portion of its headquarters facility and the expected rental income from a multi-year sub-lease agreement entered into during the second quarter. Included in 2003 results are a non-cash, after-tax benefit of $167,000, or $0.02 per share, for a change in estimate related to the impairment of revenue equipment recorded in 2002. 2003 results also include increased insurance and claims cost relating to claims settlements. The Company will host a conference call and webcast today, October 27, 2004 at 10:00 a.m. Central Time. The Internet broadcast can be accessed at the Company's website, http://www.transportamerica.com , or at http://www.companyboardroom.com . About Transport America Transport Corporation of America, Inc., based in the Minneapolis - St. Paul metropolitan area, provides a wide range of truckload freight carriage and logistics services to customers in the United States and Canada. Transport America focuses on providing time-definite and other responsive services through its team of dedicated and committed employees supported by state-of- the-art technology and information systems. This news release contains forward-looking statements regarding the Company. The Company wishes to caution readers not to place undue reliance on any forward-looking statements which speak only as of the date made. The following important factors, among other things, in some cases have affected and in the future could affect the Company's actual results and could cause the Company's actual financial performance to differ materially from that expressed in any forward-looking statement: (1) the highly competitive conditions that currently exist in the Company's market and the Company's ability to compete, (2) the Company's ability to recruit, train, and retain qualified drivers, (3) increases in fuel prices, and the Company's ability to recover these costs from its customers, (4) the impact of environmental standards and regulations on new revenue equipment, (5) changes in governmental regulations applicable to the Company's operations, (6) adverse weather conditions, (7) accidents, (8) the financing and resale market for used revenue equipment, (9) changes in interest rates, (10) cost of liability insurance coverage, (11) changes in safety rating by Regulatory authorities, and (12) downturns in general economic conditions affecting the Company and its customers. The foregoing list should not be construed as exhaustive and the Company disclaims any obligation subsequently to revise or update any previously made forward-looking statements. Unanticipated events are likely to occur. Financial Tables to Follow... TRANSPORT CORPORATION OF AMERICA, INC. CONSOLIDATED STATEMENTS OF OPERATIONS Three and Nine Months ended September 30, 2004 and 2003 (In thousands, except share and per share amounts) Three Months (Unaudited) 2004 2003 Amount % Amount % Operating revenues $65,730 100.0 $64,069 100.0 Operating expenses: Salaries, wages, and benefits 19,888 30.3 17,019 26.6 Fuel, maintenance, and other expense 11,354 17.3 9,524 14.9 Purchased transportation 19,496 29.7 22,914 35.8 Revenue equipment leases 347 0.5 274 0.4 Depreciation and amortization 5,988 9.1 6,342 9.9 Insurance, claims, and damage 3,931 6.0 2,430 3.8 Taxes and licenses 1,142 1.7 1,118 1.7 Communication 441 0.7 565 0.9 Other general and administrative expenses 2,343 3.6 2,271 3.5 Impairment of revenue equipment - - - - Impairment of sublease office space - - - - Gain on disposition of equipment - - (1,321) (2.1) Total operating expenses 64,930 98.8 61,136 95.4 Operating income 800 1.2 2,933 4.6 Interest expense, net 756 1.2 1,079 1.7 Earnings (loss) before income taxes and cumulative effect of change in accounting principle 44 0.1 1,854 2.9 Income tax provision (benefit) 8 0.0 811 1.3 Earnings (loss) before cumulative effect of change in accounting principle 36 0.1 1,043 1.6 Cumulative effect of change in accounting principle, net of tax effect - - (1,089) (1.7) Net earnings (loss) $36 0.1 $(46) (0.1) Earnings (loss) per common share - basic Before cumulative effect of change in accounting principles $0.01 $0.15 Net earnings (loss) per share $0.01 $(0.01) Earnings (loss) per common share - diluted Before cumulative effect of change in accounting principles $0.01 $0.15 Net earnings (loss) per share $0.01 $(0.01) Average common shares outstanding Basic 6,523,417 7,141,730 Diluted 6,655,208 7,175,792 Nine Months (Unaudited) 2004 2003 Amount % Amount % Operating revenues $193,105 100.0 $196,808 100.0 Operating expenses: Salaries, wages, and benefits 57,365 29.7 53,965 27.4 Fuel, maintenance, and other expense 31,005 16.1 30,057 15.3 Purchased transportation 60,321 31.2 70,452 35.8 Revenue equipment leases 892 0.5 797 0.4 Depreciation and amortization 17,693 9.2 18,967 9.6 Insurance, claims, and damage 9,824 5.1 8,827 4.5 Taxes and licenses 3,391 1.8 3,433 1.7 Communication 1,339 0.7 1,661 0.8 Other general and administrative expenses 7,226 3.7 7,341 3.7 Impairment of revenue equipment - - (278) (0.1) Impairment of sublease office space 190 0.10 - 0.0 Gain on disposition of equipment (22) (0.01) (1,317) (0.7) Total operating expenses 189,224 98.0 193,905 98.5 Operating income 3,881 2.0 2,903 1.5 Interest expense, net 2,406 1.2 3,199 1.6 Earnings (loss) before income taxes and cumulative effect of change in accounting principle 1,475 0.8 (296) (0.2) Income tax provision (benefit) 573 0.3 (48) (0.0) Earnings (loss) before cumulative effect of change in accounting principle 902 0.5 (248) (1.0) Cumulative effect of change in accounting principle, net of tax effect - - (1,153) - Net earnings (loss) $902 0.5 $(1,401) (1.0) Earnings (loss) per common share - basic Before cumulative effect of change in accounting principles $0.13 $(0.03) Net earnings (loss) per share $0.13 $(0.20) Earnings (loss) per common share - diluted Before cumulative effect of change in accounting principles $0.13 $(0.03) Net earnings (loss) per share $0.13 $(0.20) Average common shares outstanding Basic 6,788,123 7,181,356 Diluted 6,904,551 7,181,356 TRANSPORT CORPORATION OF AMERICA, INC. BALANCE SHEETS September 30, 2004 and 2003 (In thousands) Unaudited ASSETS 2004 2003 Current Assets: Cash and cash equivalents $5,415 $124 Trade receivables, net of allowances 27,721 26,966 Other receivables 2,450 1,924 Operating supplies 853 849 Deferred income taxes 6,516 5,537 Prepaid expenses 2,655 2,908 Total Current Assets 45,610 38,308 Revenue Equipment, At Cost 183,751 189,307 Less: accumulated depreciation (82,664) (82,995) Revenue Equipment, Net 101,087 106,312 Property and Other Equipment: Land, buildings, and improvements 16,369 28,789 Other equipment 21,338 23,324 Less: accumulated depreciation (18,275) (19,067) Property and Other Equipment, Net 19,432 33,046 Revenue, Property and Other Equipment, Net 120,519 139,358 Other Assets, Net 945 2,229 Total Assets $167,074 $179,895 LIABILITIES AND STOCKHOLDERS' EQUITY 2004 2003 Current Liabilities: Current maturities of long-term debt $8,544 $22,359 Current maturities of capital lease obligations 8,984 4,147 Accounts payable 9,551 6,420 Checks issued in excess of cash balances 1,295 3,107 Due to independent contractors 1,386 2,587 Accrued expenses 22,759 19,237 Total Current Liabilities 52,519 57,857 Long-Term Debt & Capital Lease Obligations Long-term debt, less current maturities 28,549 24,467 Capital lease obligations, less current maturities 4,947 14,049 Total Long-Term Debt & Capital Lease Obligations 33,496 38,516 Deferred Income Taxes 25,949 25,143 Shareholders' Equity: Common stock 65 72 Additional paid-in capital 25,402 29,888 Retained earnings 29,643 28,419 Total Shareholders' Equity 55,110 58,379 Total Liabilities and Shareholders' Equity $167,074 $179,895 TRANSPORT CORPORATION OF AMERICA, INC. Selected Consolidated Financial and Operating Data Three and Nine Months Ended September 30, 2004 and 2003 Three Months Nine Months 2004 2003 2004 2003 Operating Statistics Company tractors, seated 918 823 918 823 Company tractors, other 116 212 116 212 Independent contractor 625 775 625 775 Total tractors (at end of period) 1,659 1,810 1,659 1,810 Trailers (at end of period) 4,992 5,109 4,992 5,109 Average company tractors in service 1,548 1,657 1,547 1,749 Total loaded miles (000's) 39,945 43,041 120,621 132,935 Total miles (000's) 44,996 48,027 135,281 148,228 Freight revenue per tractor per week* $2,882 $2,725 $2,865 $2,687 Fuel surcharge per tractor per week $231 $103 $188 $122 Operating revenue per tractor per week $3,113 $2,828 $3,053 $2,809 Freight revenues per loaded mile* $1.497 $1.417 $1.483 $1.401 Fuel surcharge per loaded mile $0.120 $0.053 $0.097 $0.064 Operating revenues per loaded mile $1.617 $1.470 $1.580 $1.465 Freight revenues per mile* $1.329 $1.270 $1.322 $1.257 Fuel surcharge per mile $0.106 $0.048 $0.087 $0.057 Operating revenues per mile $1.435 $1.318 $1.409 $1.314 Average empty mile percentage 11.2% 10.4% 10.8% 10.3% Average length of haul, all miles 681 714 687 725 Average annual revenues per non- driver employee (000's) $649 $633 $636 $635 Financial Data (000's) Freight revenue (excluding fuel surcharge) $59,797 $60,977 $178,845 $186,261 Fuel surcharge revenue 4,785 2,302 11,767 8,467 Operating revenue (including fuel surcharge) $64,582 $63,279 $190,612 $194,728 Logistics revenue 1,148 790 2,493 2,080 Total revenue $65,730 $64,069 $193,105 $196,808 Capital expenditures, net of proceeds $11,108 $6,566 $13,650 $6,952 Total debt and capital lease obligations $51,024 $65,022 $51,024 $65,022 * Excluding fuel surcharge SOURCE Transport Corporation of America, Inc. -0- 10/27/2004 /CONTACT: Michael Paxton, Chairman, President and CEO, or Keith Klein, Chief Financial Officer, both of Transport Corporation of America, Inc., +1-651-686-2500/ /Web site: http://www.transportamerica.com / (TCAM) CO: Transport Corporation of America, Inc. ST: Minnesota IN: TRN SU: ERN CCA