EXHIBIT 99.1
FOR IMMEDIATE RELEASE
VAN BUREN, ARKANSAS APRIL 17, 2003
USA Truck, Inc. (NASDAQ NMS: USAK) today announced operating revenues, before
fuel surcharge, of $65,714,114 for the quarter ended March 31, 2003, an increase
of 6.6% from $61,645,445 for the same quarter of 2002. Earnings decreased to a
net loss of $1,148,303 for the first quarter of 2003, compared to net income of
$73,853 for the same quarter of 2002. Diluted earnings per share for the quarter
ended March 31, 2003 declined to a net loss of $0.12 compared to net income of
$0.01 for the same quarter of 2002.
The following table summarizes the earnings information of USA Truck, Inc. (the
"Company"):
<Table>
<Caption>
Quarter Ended
March 31,
------------------------------
2003 2002
------------ ------------
Revenue:
Revenue, before fuel surcharge $ 65,714,114 $ 61,645,445
Fuel surcharge 3,672,400 196,710
------------ ------------
69,386,514 61,842,155
Operating expenses and costs:
Salaries, wages and employee benefits 25,818,035 26,675,988
Fuel and fuel taxes 15,391,014 10,715,351
Purchased transportation 5,534,186 4,114,830
Depreciation and amortization 7,450,050 6,622,782
Operations and maintenance 5,739,747 5,275,420
Insurance and claims 5,402,069 3,683,117
Operating taxes and licenses 1,030,782 1,020,109
Communications and utilities 676,913 696,923
Other 2,890,612 2,071,127
------------ ------------
Total operating expenses and costs 69,933,408 60,875,647
------------ ------------
Operating (loss) income (546,894) 966,508
Other expenses, net 698,218 844,601
------------ ------------
(Loss) income before income taxes (1,245,112) 121,907
Income tax (benefit) expense (96,809) 48,054
------------ ------------
Net (loss) income $ (1,148,303) $ 73,853
============ ============
(Loss) income per share (diluted) $ (0.12) $ 0.01
============ ============
Average shares outstanding during period 9,320,652 9,333,972
============ ============
</Table>
Key Operating Statistics:
<Table>
<Caption>
Quarter Ended
March 31,
------------------------------
2003 2002
------------ ------------
Total miles (loaded & empty) 54,119,597 53,089,197
Empty mile factor 9.17% 10.20%
Revenue per mile* $ 1.214 $ 1.161
Average number of tractors 1,898 1,795
Miles per tractor 28,514 29,576
Average miles per tractor per week 2,263 2,347
Miles per trip 851 851
Number of shipments 65,282 58,371
Operating ratio** 100.8% 98.4%
</Table>
* Revenue per mile as reported above is based upon revenue, before fuel
surcharge.
** Operating ratio as reported above is based upon total operating expenses,
before fuel surcharge, as a percentage of revenue, before fuel surcharge.
In comparing the financial results of the quarter ended March 31, 2003 to the
quarter ended March 31, 2002, Robert M. Powell, Chairman and CEO of the Company,
made the following statement:
We continue to experience ups and downs as we execute our long-term
recovery plan. Though there were several positive developments, the first
quarter results were adversely affected by three primary factors: (1) harsh
late winter weather throughout the U.S. south and Atlantic Coast
significantly reduced our revenue equipment utilization, thus curbing
top-line revenue during January and February, (2) record high fuel prices
(up 36.8%) and (3) unfavorable insurance claims activity, which had the
single most significant impact on first quarter earnings, after the effects
of the fuel surcharge.
Over the past six months, we have litigated accident claims that occurred
two to three years ago, and have experienced an unusually high amount of
adverse verdicts and settlements. While we will do everything possible to
control claims costs during the litigation process, our long-term strategy
is to minimize accidents through our driver safety, selection and training
programs.
All three of the factors mentioned above were unexpected. However, a few
other factors were planned for, including higher maintenance costs on our
aging tractor fleet and higher driver recruiting costs in the wake of our
December 2002 driver pay reduction.
We should experience some relief on maintenance costs beginning in the
second quarter this year as we resume our program of trading in old
tractors for new ones after a 15-month hiatus that we instituted in early
2002 because of the severely depressed resale market for used equipment.
Recruiting costs should also see some relief now that we have attained our
March 31, 2003 goal of replacing drivers lost due to the pay reduction.
That driver pay reduction has been a success. Not only has it, coupled with
the driver per diem program implemented in April 2002, yielded significant
savings, but we have also successfully managed the unmanned tractors
associated with it.
Finally, our top-line revenue, before fuel surcharge, continued to expand
(up 6.6%) primarily due to strong growth in our USA Logistics division (up
44.8%), partially offset by the harsh weather referred to above. In our
General Freight division, our 2003 focus on the revenue mix (revenue
equipment utilization, empty miles and revenue per mile) has yielded strong
advances in empty miles (from 10.2% in 2002 to 9.2% in 2003) and revenue
per mile, before fuel surcharge (4.6% improvement). Utilization, though
hampered by the winter storms and unmanned equipment early in the quarter,
is still not up to par (down 3.6%). We're working every day to improve it.
Though the first quarter results were not ideal, we continue to be
encouraged by improving fundamentals in our revenue and cost structures.
This press release contains forward-looking statements and information that are
based on management's current beliefs and expectations and assumptions made by
it based upon information currently available. Forward-looking statements
include statements relating to the Company's plans, strategies, objectives,
expectations, intentions, and adequacy of resources, and may be identified by
words such as "will", "could", "should", "may", "believe", "expect", "intend",
"plan", "schedule", "estimate", "project" and similar expressions. These
statements are based on current expectations and are subject to uncertainty and
change. Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance that such
expectations will be realized. Should one or more of the risks or uncertainties
underlying such expectations materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those expected. Among the key
factors that are not within the Company's control and that have a direct bearing
on operating results are increases in diesel prices, adverse weather conditions
and the impact of increased rate competition. The Company's results have also
been, and will continue to be, significantly affected by fluctuations in general
economic conditions, as the Company's utilization rates are directly related to
business levels of shippers in a variety of industries. In addition, shortages
of qualified drivers and intense or increased competition for drivers have
adversely impacted the Company's operating results and its ability to grow, and
will continue to do so. Results for any specific period may also be affected by
various unforeseen events, such as unusual levels of equipment failure or
vehicle accident claims.
USA Truck is a medium haul, common and contract carrier specializing in
truckload quantities of general commodities. The Company operates in the 48
contiguous United States and the Canadian provinces of Ontario and Quebec and in
Mexico through the gateway city of Laredo, Texas. The Company also provides
logistic services to third parties in the trucking industry.
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Contact: CLIFF BECKHAM, Chief Financial Officer - (479) 471-2633