EXHIBIT 99
JULY 23, 2004
FOR IMMEDIATE RELEASE
PRESS CONTACT: DOUGLAS C. SANDVIG
Senior Vice President,
Treasurer and Chief Financial Officer
Smithway Motor Xpress Corp.
(515) 576-7418
SMITHWAY MOTOR XPRESS CORP. REPORTS SECOND QUARTER RESULTS
FORT DODGE, IOWA (PR NEWSWIRE) JULY 23, 2004--Smithway Motor Xpress Corp.
(Nasdaq SmallCap Market: SMXC) announced today financial and operating results
for the second quarter and six months ended June 30, 2004.
For the second quarter of 2004, operating revenue increased approximately 10.5%
to $46.7 million from $42.2 million for the corresponding quarter in 2003. Our
net earnings were $665,000, or $0.14 per basic and $0.13 per diluted share,
compared with net loss of $458,000, or ($0.09) per basic and diluted share, for
the same quarter in 2003.
For the first six months of 2004, operating revenue increased approximately 9.9%
to $90.3 million from $82.1 million for the first six months in 2003. Our net
earnings were $1.0 million, or $0.21 per basic share and $0.20 per diluted
share, compared with net loss of $2.0 million, or ($0.42) per basic and diluted
share, for the first six months of 2003.
Net earnings for the first six months of 2004 include $727,000, or $0.15 per
basic and diluted share, of tax-free life insurance proceeds received during the
first quarter. Without the life insurance proceeds, our net earnings for the
first six months would have been $273,000, or $0.06 per basic and diluted share,
compared with net loss of $2.0 million, or ($0.42) per basic and diluted share,
for the first six months of 2003.
G. Larry Owens, President and Chief Executive Officer, commented, "We are
pleased to announce our return to quarterly and year-to-date profitability. For
the quarter, average revenue per seated tractor per week increased by $416, or
16.6%, compared to the second quarter of 2003 as we continued our focus on asset
productivity and lane flow and as freight demand increased, allowing for a nine
cent increase in revenue per loaded mile, increased revenue miles per tractor,
and decreased deadhead. We were in compliance with all loan covenants at June
30, 2004 and we expect to remain in compliance throughout 2004. 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 sustain the
recent return to quarterly 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 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 SIX MONTHS ENDED
JUNE 30, JUNE 30,
(UNAUDITED) (UNAUDITED)
----------- ----------- ----------- ------------
2003 2004 2003 2004
----------- ----------- ----------- ------------
Operating revenue:
Freight $ 42,075 $ 46,461 $ 81,731 $ 89,869
Other 166 218 396 410
----------- ----------- ----------- -----------
Operating revenue 42,241 46,679 82,127 90,279
Operating expenses:
Purchased transportation 14,344 15,181 28,699 29,259
Compensation and employee
benefits 12,653 12,984 25,027 26,408
Fuel, supplies, and maintenance 7,094 8,984 14,931 17,642
Insurance and claims 1,476 1,467 2,498 2,957
Taxes and licenses 839 991 1,680 1,872
General and administrative 1,856 1,712 3,214 3,434
Communications and utilities 381 314 793 680
Depreciation and amortization 3,781 3,315 7,491 6,492
----------- ----------- ----------- -----------
Total operating expenses 42,424 44,948 84,333 88,744
----------- ----------- ----------- -----------
(Loss) earnings from
operations (183) 1,731 (2,206) 1,535
Other (expense) income:
Interest expense (496) (390) (946) (763)
Interest income 2 6 4 10
Life Insurance Proceeds -- -- -- 727
----------- ----------- ----------- -----------
(Loss) earnings before
income taxes (677) 1,347 (3,148) 1,509
Income tax (benefit) expense (219) 682 (1,132) 509
----------- ----------- ----------- -----------
Net (loss) earnings $ (458) $ 665 $ (2,016) $ 1,000
=========== =========== =========== ===========
----------- ----------- ----------- -----------
Basic (loss) earnings per share $ (0.09) $ 0.14 $ (0.42) $ 0.21
Diluted (loss) earnings per share $ (0.09) $ 0.13 $ (0.42) $ 0.20
----------- ----------- ----------- -----------
Basic weighted average common
shares outstanding 4,846,821 4,847,173 4,846,821 4,846,997
Diluted weighted average common
shares outstanding 4,846,821 4,938,463 4,846,821 4,926,214
OPERATING STATISTICS
----------- ----------- ----------- ------------
2003 2004 2003 2004
----------- ----------- ----------- ------------
Operating ratio 100.4% 96.3% 102.7% 98.3%
Average operating revenue per
tractor per week $ 2,585 $ 3,109 $ 2,485 $ 2,975
Average revenue per tractor
per week $ 2,381* $ 2,803* $ 2,274* $ 2,700*
Average revenue per seated
tractor per week $ 2,503* $ 2,919* $ 2,388* $ 2,803*
Average length of haul in miles 647 663 649 665
Average revenue per loaded mile $ 1.37* $ 1.46* $ 1.36* $ 1.43*
Ending company tractors 760 722 760 722
Ending owner/operators tractors 467 433 467 433
Ending trailers 2,317 2,200 2,317 2,200
Weighted average tractors 1,257 1,155 1,271 1,167
*excludes fuel surcharge,
brokerage, and other revenue.
SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
DECEMBER 31, JUNE 30,
2003 2004
------------ --------
ASSETS
Current assets:
Cash and cash equivalents $ 355 $ 2,913
Receivables, net 14,697 17,919
Inventories 882 1,096
Prepaid expenses and other 4,304 4,407
-------- --------
Total current assets 20,238 26,335
Property and equipment 124,634 124,572
Less accumulated depreciation 70,235 68,984
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Net property and equipment 54,399 55,588
Other assets 2,043 2,015
-------- --------
Total assets $ 76,680 $ 83,938
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current debt $ 10,582 $ 11,323
Accounts payable and accrued expenses 13,438 16,553
-------- --------
Total current liabilities 24,020 27,876
Long-term debt 23,035 24,577
Deferred income taxes 9,020 9,875
-------- --------
Total liabilities 56,075 62,328
Stockholders' equity 20,605 21,610
-------- --------
Total liabilities and stockholders' equity $ 76,680 $ 83,938
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