EXHIBIT 99.1
FOR IMMEDIATE RELEASE
VAN BUREN, ARKANSAS JULY 17, 2003
USA Truck, Inc. (NASDAQ NMS: USAK) today announced operating revenues, before
fuel surcharge, of $72,265,273 for the quarter ended June 30, 2003, an increase
of 4.8% from $68,924,995 for the same quarter of 2002. Net income increased
153.8% to $1,853,054 for the second quarter of 2003, compared to net income of
$730,149 for the same quarter of 2002. Diluted earnings per share for the
quarter ended June 30, 2003 increased 150.0% to $0.20 compared to $0.08 for the
same quarter of 2002.
For the six months ended June 30, 2003, operating revenues, before fuel
surcharge, increased 5.7% to $137,979,387, from $130,570,440 for the same period
of 2002. Earnings decreased 12.3% to $704,751 for the six months ended June 30,
2003, compared to $804,002 for the same period of 2002. Diluted earnings per
share for the six months ended June 30, 2003 decreased 12.3% to $.08 from $.09
for the same period of 2002.
The following table summarizes the earnings information of the Company:
<Table>
<Caption>
Quarter Ended Six Months Ended
June 30, June 30,
-------------------------------- --------------------------------
2003 2002 2003 2002
------------- ------------- ------------- -------------
REVENUE:
Revenue, before fuel surcharge $ 72,265,273 $ 68,924,995 $ 137,979,387 $ 130,570,440
Fuel surcharge 3,131,247 1,067,865 6,803,647 1,264,575
------------- ------------- ------------- -------------
Total revenues 75,396,520 69,992,860 144,783,034 131,835,015
OPERATING EXPENSES AND COSTS:
Salaries, wages and employee benefits 27,141,915 27,195,500 52,959,950 53,871,488
Fuel and fuel taxes 13,821,371 11,814,124 29,212,385 22,529,475
Purchased transportation 6,556,543 7,363,717 12,090,729 11,478,547
Depreciation and amortization 7,498,621 6,798,107 14,948,671 13,420,889
Operations and maintenance 6,181,556 5,655,077 11,921,303 10,930,497
Insurance and claims 4,893,756 4,169,637 10,295,825 7,852,754
Operating taxes and licenses 1,177,163 1,098,147 2,207,945 2,118,256
Communications and utilities 746,611 690,494 1,423,524 1,387,417
Other 3,402,227 2,513,453 6,292,839 4,584,580
------------- ------------- ------------- -------------
71,419,763 67,298,256 141,353,171 128,173,903
------------- ------------- ------------- -------------
OPERATING INCOME 3,976,757 2,694,604 3,429,863 3,661,112
OTHER EXPENSES (INCOME):
Interest expense 598,523 754,361 1,288,327 1,583,890
Gain on disposal of assets (376,976) (15,969) (381,193) (10,328)
Other, net 40,262 (63,156) 52,893 (53,725)
------------- ------------- ------------- -------------
261,809 675,236 960,027 1,519,837
------------- ------------- ------------- -------------
INCOME BEFORE INCOME TAXES 3,714,948 2,019,368 2,469,836 2,141,275
INCOME TAX EXPENSE 1,861,894 1,289,219 1,765,085 1,337,273
------------- ------------- ------------- -------------
NET INCOME $ 1,853,054 $ 730,149 $ 704,751 $ 804,002
============= ============= ============= =============
PER SHARE INFORMATION:
Average shares outstanding (Basic) 9,326,899 9,313,158 9,322,583 9,292,138
============= ============= ============= =============
Basic net income per share $ 0.20 $ 0.08 $ 0.08 $ 0.09
============= ============= ============= =============
Average shares outstanding (Diluted) 9,351,853 9,363,262 9,344,222 9,342,242
============= ============= ============= =============
Diluted net income per share $ 0.20 $ 0.08 $ 0.08 $ 0.09
============= ============= ============= =============
</Table>
Key Operating Statistics:
<Table>
<Caption>
Quarter Ended Six Months Ended
June 30, June 30,
---------------------------- ----------------------------
2003 2002 2003 2002
----------- ----------- ----------- ------------
Total miles (loaded & empty) 58,273,375 57,046,238 112,392,972 110,135,435
Empty mile factor 9.24% 9.17% 9.20% 9.66%
Revenue per mile* $ 1.240 $ 1.208 $ 1.228 $ 1.186
Average number of tractors 1,896 1,883 1,897 1,839
Miles per tractor 30,735 30,295 59,243 59,889
Average miles per tractor per week 2,439 2,367 2,351 2,358
Miles per trip 860 864 856 857
Number of shipments 70,644 64,177 135,926 122,548
Operating ratio** 94.5% 96.1% 97.5% 97.2%
</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 June 30, 2003 to the
quarter ended June 30, 2002, Robert M. Powell, Chairman and CEO of the Company,
made the following statement:
Freight volumes have generally improved during the second quarter
resulting in improved tractor utilization. However, that volume was
inconsistent among the various geographic regions of the country, which
caused an up-tick in empty miles in the second quarter as we
re-positioned equipment between those regions. It is unclear whether
the improving freight volumes are a product of an overall increase in
shipper demand or reduced capacity in the truckload industry.
Regardless of the volume's source, it set the stage for the firming of
rates, to which our increased revenue per mile attests.
We continue to see margin improvements through our ongoing campaign to
address the cost side of our business, most notably in the area of
wages where several years of effort to reign in driver pay are now
paying dividends. Fuel prices have also been relatively stable within
ranges where our fuel surcharge has been sufficient to offset most of
the additional costs brought about by fuel prices lingering above
historical averages.
While margins are improving, there are still a few cost areas we are
addressing. First, revenue equipment depreciation is up because of the
extended lives and lower residual values on a large portion of our
tractor fleet resulting from the recent depression in the used
equipment markets. We have begun trading those older tractors for new
ones and are seeing early signs of recovery in those markets as
evidenced by our improved gains on disposal of property and equipment.
However, returning the fleet to its historical average age will take
several quarters during which
depreciation will remain higher than normal, as will maintenance costs.
Second, we have seen tightening in the driver markets despite the high
national unemployment rates. Increased competition for drivers, coupled
with increased driver turnover due to inconsistent tractor utilization,
has resulted in an increase in recruiting costs, though our tractor
fleet was almost fully manned during the second quarter.
Freight volumes are slowly improving, as are our other fundamental
operating factors. Overall, we are pleased to have posted our strongest
earnings per share quarter since the fourth quarter of 1999, but we are
not yet satisfied and will continue to work on our operating margins.
By agreement with its customers, and consistent with industry practice, the
Company adds a surcharge to its rates as diesel fuel prices increase above an
industry-standard baseline price per gallon. Because fuel prices are volatile,
management believes that presenting operating statistics calculated on the basis
of total revenue, including the fuel surcharge, could provide a distorted
picture of the Company's operating performance, particularly when comparing
results for current and prior periods. Therefore, the fuel surcharge is excluded
from revenue and, instead, taken as a credit against expense when calculating
the operating ratio in the Key Operating Statistics table above. The surcharge
is also excluded from revenue for purposes of calculating revenue per mile in
that table. Revenue data, on both a total basis and excluding the fuel
surcharge, is included in the earnings information table above.
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
third-party logistics services.
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Contact: CLIFF BECKHAM, Chief Financial Officer - (479) 471-2633