EXHIBIT 99
FEBRUARY 17, 2004
FOR IMMEDIATE RELEASE
PRESS CONTACT: G. LARRY OWENS
Executive Vice President,
Chief Administrative Officer, 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 17, 2004--Smithway Motor Xpress Corp.
(Nasdaq SmallCap Market: SMXC) announced today financial and operating results
for the fourth quarter and year ended December 31, 2003.
For the quarter, operating revenue increased approximately 2.5% to $40.7 million
from $39.7 million for the corresponding quarter in 2002. The Company's net loss
was $268,000, or ($0.06) per basic and diluted share, compared with net loss of
$4.7 million, or ($0.97) per basic and diluted share, for the same quarter in
2002.
For the year, operating revenue decreased approximately 2.4% to $165.3 million
from $169.5 million in 2002. The Company's net loss in 2003 was $2.6 million, or
($0.53) per basic and diluted share, compared with net loss of $8.7 million, or
($1.79) per basic and diluted share, for 2002.
The main contributors to the improvement in operating results were increased
revenue production of the tractor fleet and continuous attention to the
previously discussed plan for profit improvement. Also, the fourth quarter
results in 2002 included charges totaling $3.1 million, after tax, for
impairment of goodwill and an increase to insurance reserves.
G. Larry Owens, Executive Vice President, Chief Administrative Officer and Chief
Financial Officer, commented, "During the fourth quarter, the Company achieved
revenue growth for the first time in 12 quarters. Despite a fleet which
decreased in numbers by 9%, the Company's fourth quarter 2003 revenue exceeded
the revenue from the fourth quarter of 2002. For the quarter, average revenue
per seated tractor per week increased by approximately 11.5% versus the fourth
quarter of 2002 as new initiatives focusing on asset productivity and lane flow
were continued and freight demand increased, allowing for a two cent increase in
revenue per loaded mile, increased revenue miles per tractor, and decreased
deadhead. Additionally, during the quarter, the Company had fewer unseated
tractors.
The Company was in compliance with all loan covenants at December 31, 2003 and
expects to remain in compliance throughout 2004. After two years of limited
capital acquisitions, the Company has negotiated for the purchase and financing
of over 200 new tractors during 2004, allowing for replacement of older, high
mileage tractors.
We are pleased that initiatives to reduce expenses and improve operations.
implemented in the last six months, are impacting current results and have set
the stage for a return to profitability. Finally, we continue to be very pleased
with our safety record."
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 National 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 turn around
continued operating losses, which could result in further 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 new
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)
--------------------------- ---------------------------
2002 2003 2002 2003
----------- ----------- ----------- -----------
Operating revenue:
Freight $ 39,686 $ 40,592 $ 168,918 $ 164,648
Other 51 149 550 681
----------- ----------- ----------- -----------
Operating revenue 39,737 40,741 169,468 165,329
Operating expenses:
Purchased transportation 14,330 13,006 62,364 55,596
Compensation and employee benefits 12,552 12,416 51,834 50,328
Fuel, supplies, and maintenance 7,286 7,506 27,722 29,857
Insurance and claims 2,252 1,403 7,324 5,571
Taxes and licenses 816 871 3,444 3,444
General and administrative 1,708 1,853 7,153 6,934
Communications and utilities 426 333 1,783 1,463
Depreciation and amortization 7,637 3,281 19,725 14,239
----------- ----------- ----------- -----------
Total operating expenses 47,007 40,669 181,349 167,432
----------- ----------- ----------- -----------
Earnings (loss) from operations (7,270) 72 (11,881) (2,103)
Financial (expense) income:
Interest expense (373) (392) (1,955) (1,781)
Interest income 18 1 40 26
----------- ----------- ----------- -----------
Loss before income taxes (7,625) (319) (13,796) (3,858)
Income tax benefit (2,902) (51) (5,118) (1,269)
----------- ----------- ----------- -----------
Net loss ($4,723) ($268) ($8,678) ($2,589)
=========== =========== =========== ===========
----------- ----------- ----------- -----------
Basic and diluted loss per share ($0.97) ($0.06) ($1.79) ($0.53)
=========== =========== =========== ===========
Basic weighted average common shares outstanding 4,846,021 4,846,821 4,845,652 4,846,821
Diluted weighted average common shares outstanding 4,846,021 4,846,821 4,845,652 4,846,821
<Caption>
OPERATING STATISTICS
----------- ----------- ----------- -----------
2002 2003 2002 2003
----------- ----------- ----------- -----------
Operating ratio 118.3% 99.8% 107.0% 101.3%
Average operating revenue per tractor per week $ 2,353 $ 2,642 $ 2,311 $ 2,577
Average revenue per tractor per week $2,177 * $2,434 * $2,162 * $2,367 *
Average revenue per seated tractor per week $2,285 * $2,548 * $2,391 * $2,484 *
Average length of haul in miles 659 677 664 659
Average revenue per loaded mile $1.38 * $1.40 * $1.37 * $1.37 *
Ending company tractors 773 750 773 750
Ending owner/operators tractors 521 430 521 430
Ending trailers 2,480 2,278 2,480 2,278
Weighted average tractors 1,299 1,186 1,410 1,234
*excludes fuel surcharge, brokerage, and other revenue.
SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
DECEMBER 31, DECEMBER 31,
2002 2003
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 105 $ 355
Receivables, net 14,125 14,697
Inventories 868 882
Prepaid expenses and other 4,508 4,304
------------ ------------
Total current assets 19,606 20,238
Property and equipment 131,601 124,634
Less accumulated depreciation 64,031 70,235
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Net property and equipment 67,570 54,399
Other assets 2,233 2,043
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Total assets $ 89,409 $ 76,680
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current debt $ 11,595 $ 10,582
Accounts payable and accrued expenses 12,139 13,438
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Total current liabilities 23,734 24,020
Long-term debt 32,225 23,035
Deferred income taxes 10,257 9,020
------------ ------------
Total liabilities 66,216 56,075
Stockholders' equity 23,193 20,605
------------ ------------
Total liabilities and stockholders' equity $ 89,409 $ 76,680
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