EXHIBIT 99
OCTOBER 29, 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. ANNOUNCES CONTINUED IMPROVED PROFITABILITY
FORT DODGE, IOWA (PR NEWSWIRE) OCTOBER 29, 2004--Smithway Motor Xpress Corp.
(Nasdaq SmallCap Market: SMXC) announced today financial and operating results
for the third quarter and nine months ended September 30, 2004.
For the third quarter of 2004, operating revenue increased approximately 14.6%
to $48.7 million from $42.5 million for the corresponding quarter in 2003. Net
earnings were $854,000, or $0.18 per basic and $0.17 per diluted share, compared
with net loss of ($305,000), or ($0.06) per basic and diluted share, for the
same quarter in 2003.
For the first nine months of 2004, operating revenue increased approximately
11.5% to $138.9 million from $124.6 million for the first nine months in 2003.
Net earnings were $1.9 million, or $0.38 per basic share and diluted share,
compared with net loss of ($2.3 million), or ($0.48) per basic and diluted
share, for the first nine months of 2003.
Net earnings for the first nine 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, net earnings for the first
nine months would have been $1.1 million, or $0.23 per basic and diluted share,
compared with net loss of ($2.3 million), or ($0.48) per basic and diluted
share, for the first nine months of 2003.
G. Larry Owens, President and Chief Executive Officer, commented, "Smithway's
results for the third quarter 2004 mark our highest quarterly earnings since the
second quarter of 1999. For the quarter, average revenue per seated tractor per
week increased by $290, or 11.0%, compared to the third 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.
Higher truck production and freight rates have allowed us to absorb a two cent
per mile driver pay increase and unusually high fuel prices. Almost all of our
trucks, which we are replacing at
the rate of 20 units per month, are seated with a driver. We are pleased with
our continued profitability and look forward to further improvement."
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)
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
(UNAUDITED) (UNAUDITED)
-------------------------- --------------------------
2003 2004 2003 2004
----------- ----------- ----------- -----------
Operating revenue:
Freight $ 42,325 $ 48,469 $ 124,056 $ 138,338
Other 136 189 532 599
----------- ----------- ----------- -----------
Operating revenue 42,461 48,658 124,588 138,937
Operating expenses:
Purchased transportation 13,891 16,125 42,590 45,384
Compensation and employee benefits 13,185 13,572 38,812 40,272
Fuel, supplies, and maintenance 7,420 9,710 22,351 27,352
Insurance and claims 1,370 1,288 3,268 3,953
Taxes and licenses 893 906 2,573 2,778
General and administrative 1,867 1,714 5,081 5,148
Communications and utilities 337 282 1,130 962
Depreciation and amortization 3,467 3,203 10,958 9,695
----------- ----------- ----------- -----------
Total operating expenses 42,430 46,800 126,763 135,544
----------- ----------- ----------- -----------
(Loss) earnings from operations 31 1,858 (2,175) 3,393
Other (expense) income:
Interest expense (443) (378) (1,389) (1,141)
Interest income 21 16 25 26
Life Insurance Proceeds -- -- -- 727
----------- ----------- ----------- -----------
(Loss) earnings before income taxes (391) 1,496 (3,539) 3,005
Income tax (benefit) expense (86) 642 (1,218) 1,151
----------- ----------- ----------- -----------
Net (loss) earnings $ (305) $ 854 $ (2,321) $ 1,854
=========== =========== =========== ===========
----------- ----------- ----------- -----------
Basic (loss) earnings per share $ (0.06) $ 0.18 $ (0.48) $ 0.38
----------- ----------- ----------- -----------
Diluted (loss) earnings per share $ (0.06) $ 0.17 $ (0.48) $ 0.38
----------- ----------- ----------- -----------
Basic weighted average common shares outstanding 4,846,821 4,848,821 4,846,821 4,847,609
Diluted weighted average common shares outstanding 4,846,821 4,968,889 4,846,821 4,940,442
</Table>
OPERATING STATISTICS
<Table>
<Caption>
------------------------ ------------------------
2003 2004 2003 2004
---------- ---------- ---------- ----------
Operating ratio 99.9% 96.2% 101.7% 97.6%
Average operating revenue per tractor per week $ 2,704 $ 3,227 $ 2,556 $ 3,034
Average revenue per tractor per week $ 2,495* $ 2,842* $ 2,345* $ 2,725*
Average revenue per seated tractor per week $ 2,625* $ 2,915* $ 2,464* $ 2,816*
Average length of haul in miles 660 653 653 661
Average revenue per loaded mile $ 1.39* $ 1.48* $ 1.37* $ 1.45*
Ending company tractors 746 754 746 754
Ending owner/operators tractors 436 435 436 435
Ending trailers 2,299 2,163 2,299 2,163
Weighted average tractors 1,208 1,160 1,250 1,174
</Table>
* excludes fuel surcharge, brokerage, and other revenue.
SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
DECEMBER 31, SEPTEMBER 30,
2003 2004
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 355 $ 5,260
Receivables, net 14,697 18,446
Inventories 882 1,102
Prepaid expenses and other 4,304 4,753
------------- -------------
Total current assets 20,238 29,561
Property and equipment 124,634 119,238
Less accumulated depreciation 70,235 67,534
------------- -------------
Net property and equipment 54,399 51,704
Other assets 2,043 2,022
------------- -------------
Total assets $ 76,680 $ 83,287
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current debt $ 10,582 $ 10,525
Accounts payable and accrued expenses 13,438 17,874
------------- -------------
Total current liabilities 24,020 28,399
Long-term debt 23,035 22,001
Deferred income taxes 9,020 10,423
------------- -------------
Total liabilities 56,075 60,823
Stockholders' equity 20,605 22,464
------------- -------------
Total liabilities and stockholders' equity $ 76,680 $ 83,287
============= =============
</Table>