SMITHWAY MOTOR XPRESS, INC. 401(k)
RETIREMENT SAVINGS AND INVESTMENT PLAN
Financial Statements and Schedule
December 31, 2000 and 1999
(With Independent Auditors' Report Thereon)
SMITHWAY MOTOR XPRESS, INC. 401(k)
RETIREMENT SAVINGS AND INVESTMENT PLAN
Table of Contents
Page
Independent Auditors' Report 1
Statements of Net Assets Available for Plan Benefits 2
Statements of Changes in Net Assets Available for Plan Benefits 2
Notes to Financial Statements 3
Schedule
1 Schedules of Assets Held for Investment Purposes 6
Independent Auditors' Report
The Plan Trustees
Smithway Motor Xpress, Inc. 401(k) Retirement Savings and Investment Plan:
We have audited the statements of net assets available for plan benefits of
Smithway Motor Xpress, Inc. 401(k) Retirement Savings and Investment Plan
as of December 31, 2000 and 1999, and the related statements of changes in
net assets available for plan benefits for the years then ended. These
financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the net assets available for plan benefits of
Smithway Motor Xpress, Inc. 401(k) Retirement Savings and Investment Plan
as of December 31, 2000 and 1999, and the changes in its net assets
available for plan benefits for the years then ended in conformity with
accounting principles generally accepted in the United States of America.
Our audit of the Plan's financial statements as of and for the years ended
December 31, 2000 and 1999, was made for the purpose of forming an opinion
on the financial statements taken as a whole. The supplemental schedule 1
is presented for the purpose of additional analysis and is not a required
part of the basic financial statements, but is supplementary information
required by the Department of Labor's Rules and Regulations for Reporting
and Disclosure under the Employee Retirement Income Security Act of 1974.
The supplemental schedule has been subjected to the auditing procedures
applied in the audits of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
/s/KPMG LLP
Des Moines, Iowa
June 15, 2001
1
SMITHWAY MOTOR XPRESS, INC. 401(k)
RETIREMENT SAVINGS AND INVESTMENT PLAN
Statements of Net Assets Available for Plan Benefits
December 31, 2000 and 1999
2000 1999
----------- -----------
Assets:
Cash $ 491,713 439,946
----------- -----------
Investments (note 8):
Investment in registered investment companies 8,923,690 9,352,826
Common stock 892,521 1,862,419
Loans to participants 878,602 888,369
----------- -----------
10,694,813 12,103,614
Contributions receivable - employees 113,989 144,839
Contributions receivable - employer 172,450 262,998
Other receivables 2,432 413
----------- -----------
Total assets 11,475,397 12,951,810
Liabilities (note 6) 28,898 55,325
----------- -----------
Net assets available for benefits (note 2) $ 11,446,499 12,896,485
=========== ===========
Statements of Changes in Net Assets Available for Plan Benefits
Years ended December 31, 2000 and 1999
2000 1999
----------- -----------
Additions to net assets attributed to:
Employer contributions (note 3) $ 171,493 263,398
Employee contributions and rollovers (note 3) 1,317,190 1,703,325
Net investment income (notes 2 and 8) - 837,741
Other 4,339 -
----------- -----------
Total additions 1,493,022 2,804,464
----------- -----------
Deductions from net assets attributed to:
Benefits paid to participants (note 5) 1,188,095 1,189,404
Net investment loss (notes 2 and 8) 1,694,276 -
Administrative fees 60,637 92,138
Other - 4,683
----------- -----------
Total deductions 2,943,008 1,286,225
----------- -----------
Net (decrease) increase in net assets available for benefits (1,449,986) 1,518,239
Net assets available for benefits:
Beginning of year 12,896,485 11,378,246
----------- -----------
End of year $ 11,446,499 12,896,485
=========== ===========
See accompanying notes to financial statements.
2 (Continued)
SMITHWAY MOTOR XPRESS, INC. 401(k)
RETIREMENT SAVINGS AND INVESTMENT PLAN
Notes to Financial Statements
December 31, 2000 and 1999
(1) Summary of Significant Accounting Policies
Plan Information and Basis of Presentation
The accompanying financial statements of Smithway Motor Xpress, Inc.
401(k) Retirement Savings and Investment Plan (the Plan) have been
prepared on the accrual basis of accounting and are subject to the
provisions of the Employee Retirement Income Security Act of 1974
(ERISA). The Plan is sponsored by Smithway Motor Xpress Corp. (the
Company) and has two entry dates per year. Full-time employees are
eligible for participation in the Plan on the next entry date after
completing one year of service. Participants should refer to the Plan
agreement for more complete information.
Investments
Investments, other than loans, are reported at fair value, as
determined by using available market information. Purchases and sales
of securities are recorded on a trade-date basis. Loans to
participants are valued at their unpaid principal balance,
representing estimated fair value.
Net investment income includes investment income, realized gains
(losses), and unrealized appreciation (depreciation) on investments
held.
Administrative Fees
Certain administrative fees are paid by the Company.
Income Taxes
The Internal Revenue Service has issued a determination letter that
the Plan is qualified, and the trust established under the Plan is
tax-exempt, under Sections 401(a) and 501(a) of the Internal Revenue
Code. The Plan has been amended since receiving the determination
letter. An updated determination letter has not been requested;
however, UMB Bank (the Plan Administrator) and the Plan's tax counsel
believe the Plan is currently designed and being operated in
compliance with the applicable requirements of the Internal Revenue
Code. Therefore, they believe the Plan was qualified and the related
trust was tax-exempt as of December 31, 2000 and 1999. Future
qualification of the Plan will depend on continuing operation in
compliance with the Internal Revenue Code.
Use of Estimates
The Plan Administrator has made a number of estimates and assumptions
relating to the reporting of assets, liabilities, and changes therein
to prepare these financial statements in conformity with accounting
principles generally accepted in the United States of America. Actual
results could differ from those estimates.
3 (Continued)
SMITHWAY MOTOR XPRESS, INC. 401(k)
RETIREMENT SAVINGS AND INVESTMENT PLAN
Notes to Financial Statements
December 31, 2000 and 1999
(2) Net Assets Available for Benefits
The Plan Administrator maintains funds received from the Plan
primarily in registered investment companies or in the Company's
common stock.
(3) Contributions
Under the terms of the Plan agreement, the Company may, at its
discretion, make annual contributions to the Plan, which shall be
allocated to eligible participants based on a percentage of the total
deferred compensation contributed during the Plan year. Forfeitures,
if any, are used to reduce future employer contributions.
Employees may make voluntary contributions to the Plan up to 15% of
their compensation, subject to certain limitations as specified in the
Plan agreement.
(4) Participant Accounts
Each participant's account is credited with the participant's
contribution, the employer's contribution, and an allocation of Plan
earnings. Each participant will be permitted to direct the Plan
Administrator to invest their individual accounts into various
approved investments permitted under the Plan.
Participants are immediately vested in their voluntary contributions
and the earnings thereon. Vesting in the remainder of their accounts
is based on years of service in which the participant has completed at
least 1,000 hours of service. A participant is 100% vested after six
years of service.
(5) Benefits
Under the terms of the Plan agreement, participants or their
beneficiaries are eligible for benefits upon retirement, death, or
disability. Benefits shall be distributed through one of several
options selected by the participants, as defined in the Plan
agreement.
(6) Liabilities
Liabilities include refunds payable for excess contributions received
by the Plan which are reimbursable to the participants, benefit claims
payables, and other miscellaneous operating payables.
(7) Plan Termination
Although the Company has not expressed any intent to terminate its
participation in the Plan, it may do so at any time, subject to the
provisions set forth in ERISA. Should the Plan be terminated at some
future time, all participants become 100% vested in benefits earned as
of the termination date.
4 (Continued)
SMITHWAY MOTOR XPRESS, INC. 401(k)
RETIREMENT SAVINGS AND INVESTMENT PLAN
Notes to Financial Statements
December 31, 2000 and 1999
(8) Investments
The fair values of the investments of the Plan at December 31, 2000 and
1999 were as follows:
2000 1999
--------------- --------------
Fidelity Asset Manager $ 1,548,635 1,508,986
Fidelity Magellan Fund 3,148,804 3,436,326
Capital Preservation Fund 1,007,370 860,617
PBHG Growth Fund 1,565,529 2,002,400
Putnam Vista Fund 861,865 841,936
Strong Government Securities 791,487 702,561
Smithway Motor Xpress Corp.
common stock * 892,521 1,862,419
Participant Loans 878,602 888,369
--------------- --------------
$ 10,694,813 12,103,614
=============== ==============
Included in net investment (loss) income for the years ended December 31,
2000 and 1999 was (depreciation) appreciation of investments(including gains and
losses on investments bought and sold, as well as held during the year) of
($1,811,605) and $752,545, respectively, as follows:
2000 1999
--------------- --------------
Registered investment companies $ (650,540) 2,098,834
Common stock * (1,161,065) (1,346,289)
--------------- --------------
$ (1,811,605) 752,545
=============== ==============
*Party-in-interest
5 (Continued)
Schedule 1
SMITHWAY MOTOR XPRESS, INC. 401(k)
RETIREMENT SAVINGS AND INVESTMENT PLAN
Schedules of Assets Held for Investment Purposes
December 31, 2000 and 1999
2000
------------------------------
Fair
Description Cost value
- --------------------------------------------------------- ------------- ---------------
Fidelity Asset Manager $ 1,607,102 1,548,635
Fidelity Magellan Fund 2,404,187 3,148,804
Capital Preservation Fund 1,007,370 1,007,370
PBHG Growth Fund 1,380,947 1,565,529
Putnam Vista Fund 955,945 861,865
Strong Government Securities 799,624 791,487
Smithway Motor Xpress Corp. common stock * 690,471 892,521
------------- ---------------
8,845,646 9,816,211
Loans to participants 878,602 878,602
------------- ---------------
$ 9,724,248 10,694,813
============= ===============
1999
------------------------------
Fair
Description Cost value
- --------------------------------------------------------- ------------- ---------------
Fidelity Asset Manager $ 1,420,645 1,508,986
Fidelity Magellan Fund 2,051,716 3,436,326
Capital Preservation Fund 860,617 860,617
PBHG Growth Fund 905,998 2,002,400
Putnam Vista Fund 648,424 841,936
Strong Government Securities 755,142 702,561
Smithway Motor Xpress Corp. common stock * 534,659 1,862,419
------------- ---------------
7,177,201 11,215,245
Loans to participants 888,369 888,369
------------- ---------------
$ 8,065,570 12,103,614
============= ===============
*Party-in-interest
See accompanying independent auditors' report.
6 (Continued)
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have duly
caused this annual report to be signed on its behalf by the undersigned hereunto
duly authorized.
SMITHWAY MOTOR XPRESS, INC. 401 (K)
RETIREMENT SAVINGS AND INVESTMENT PLAN
Date: June 27, 2000
/s/ Tom Nelson
By:
Tom Nelson, Administrator
7