EXHIBIT 99
APRIL 22, 2005
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 FIRST QUARTER RESULTS
EARNINGS EXCEED MANAGEMENT EXPECTATIONS
FORT DODGE, IOWA (PR NEWSWIRE) APRIL 22, 2005--Smithway Motor Xpress Corp.
(Nasdaq SmallCap Market: SMXC) announced today financial and operating results
for the first quarter ended March 31, 2005.
For the quarter, operating revenue increased approximately 14.0% to $49.7
million from $43.6 million for the corresponding quarter in 2004. Operating
revenue, excluding fuel surcharge revenue of $4.9 million, increased
approximately 7% to $44.8 million from $41.8 million, excluding fuel surcharge
revenue of $1.8 million, for the corresponding quarter in 2004. Net earnings
were $503,000, or $0.10 per basic and diluted share, compared with net earnings
of $335,000, or $0.07 per basic and diluted share, for the same quarter in 2004.
Net earnings, excluding unusual items, were $503,000, or $0.10 per basic and
diluted share, compared with net loss of $392,000, or $0.08 per basic and
diluted share, for the same quarter in 2004. (Net earnings for the 2004 quarter
included $727,000, or $0.15 per basic and diluted share, of tax-free life
insurance proceeds. Without the life insurance proceeds, our net loss for the
2004 quarter would have been $392,000, or $0.08 per basic and diluted share.)
G. Larry Owens, President and Chief Executive Officer, commented, "Inclement
weather and seasonally lower freight in the winter months typically cause
financial performance of trucking companies to suffer during the first and last
quarter of the calendar year. In light of this seasonality, we are pleased with
our earnings this quarter which exceeded our expectations and represent our best
first quarter performance in the past six years. Our first quarter 2005 revenue,
excluding fuel surcharge revenue, exceeded the revenue from the first quarter of
2004 by $3.0 million, a 7.3% improvement, resulting from a 3.19% increase in
weighted average tractors and a 3.44% increase in our truck production. For the
quarter, average revenue per seated tractor per week increased by $91.29, 3.44%,
compared to the first quarter of 2004 primarily due to a $0.12 increase in
average revenue per loaded mile.
"During the quarter, we reduced our operating ratio by more than 300 basis
points as compared to the first quarter of 2004. Increased freight rates more
than offset increased operating costs.
Average fuel prices increased 30% to $1.96 per gallon this quarter compared to
$1.50 per gallon in the first quarter of 2004. Increased fuel surcharge revenue
mitigated approximately 79% of this price increase. On two occasions since the
third quarter of 2004 we have increased driver wages in response to the market.
We continually monitor expenses and have increased our truck to non-driver
employee ratio to 4.97 during the first quarter of 2005 from 4.51 during the
first quarter of 2004, a 10% improvement. Additionally we have reduced our
tractor-to-trailer ratio by disposing of underutilized trailers and have
eliminated two small terminals which we determined were not cost effective in
our operation.
"By continually increasing freight rates, conservatively managing expenses, and
maintaining our unwavering emphasis on safety, we expect further improvement in
our earnings and operating ratio."
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 SmallCap 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,"
"plans," "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 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
MARCH 31,
(UNAUDITED)
--------------------------------
2004 2005
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Operating revenue:
Freight $ 43,408 $ 49,447
Other 192 277
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Operating revenue 43,600 49,724
Operating expenses:
Purchased transportation 14,078 16,368
Compensation and employee benefits 13,581 13,660
Fuel, supplies, and maintenance 8,658 11,078
Insurance and claims 1,333 2,008
Taxes and licenses 881 873
General and administrative 1,722 1,942
Communications and utilities 366 331
Depreciation and amortization 3,177 2,138
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Total operating expenses 43,796 48,398
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(Loss) earnings from operations (196) 1,326
Other (expense) income:
Interest expense (373) (369)
Interest income 4 33
Life Insurance Proceeds 727 -
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Earnings before income taxes 162 990
Income tax (benefit) expense (173) 487
----------- -----------
Net earnings $ 335 $ 503
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Basic earnings per share $ 0.07 $ 0.10
----------- -----------
Diluted earnings per share $ 0.07 $ 0.10
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Basic weighted average common shares outstanding 4,846,821 4,903,845
Diluted weighted average common shares outstanding 4,912,869 5,022,379
OPERATING STATISTICS
2004 2005
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Operating ratio 100.4% 97.3%
Average operating revenue per tractor per week $ 2,811 $ 3,107
Average revenue per tractor per week $ 2,568* $ 2,672*
Average revenue per seated tractor per week $ 2,655* $ 2,746*
Average length of haul in miles 667 630
Average revenue per loaded mile $ 1.40* $ 1.52*
Ending company tractors 748 787
Ending owner/operators tractors 434 446
Ending trailers 2,236 2,075
Weighted average tractors 1,193 1,231
* excludes fuel surcharge, brokerage, and other revenue.
SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
DECEMBER 31, MARCH 31,
2004 2005
(unaudited)
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ASSETS
Current assets:
Cash and cash equivalents $ 5,054 $ 4,101
Receivables, net 16,776 19,227
Inventories 948 968
Prepaid expenses and other 4,142 5,738
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Total current assets 26,920 30,034
Property and equipment 117,048 117,556
Less accumulated depreciation 67,772 67,869
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Net property and equipment 49,276 49,687
Other assets 2,080 2,073
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Total assets $ 78,276 $ 81,794
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LIABILITIES AND STOCKHOLDERS'EQUITY
Current liabilities:
Current debt $ 9,301 $ 8,613
Accounts payable and accrued expenses 15,256 17,903
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Total current liabilities 24,557 26,516
Long-term debt 20,008 20,946
Deferred income taxes 10,702 10,729
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Total liabilities 55,267 58,191
Stockholders' equity 23,009 23,603
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Total liabilities and stockholders' equity $ 78,276 $ 81,794
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