April 25, 2003
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 FIRST QUARTER RESULTS
FORT DODGE, IOWA (PR Newswire) April 25, 2003--Smithway Motor Xpress Corp.
(Nasdaq SmallCap Market: SMXC) announced today financial and operating results
for the first quarter ended March 31, 2003. For the quarter, operating revenue
decreased approximately 3.2% to $39.9 million from $41.2 million for the
corresponding quarter in 2002. Smithway's net loss was $1.6 million, or ($0.32)
per basic and diluted share, compared with net loss of $2.0 million, or ($0.42)
per basic and diluted share, for the same quarter in 2002. These results were
consistent with the Company's previously announced expectations. The Company
finished the first quarter in compliance with the revised financial covenants
under its financing arrangements.
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
March 31,
(unaudited)
----------------------------
2002 2003
----------- -----------
Operating revenue:
Freight $41,059 $39,879
Other 161 7
----------- -----------
Operating revenue 41,220 39,886
Operating expenses:
Purchased transportation 15,291 14,355
Compensation and employee benefits 13,404 12,374
Fuel, supplies, and maintenance 6,484 7,837
Insurance and claims 1,813 1,022
Taxes and licenses 836 841
General and administrative 1,809 1,358
Communications and utilities 507 412
Depreciation and amortization 3,776 3,710
----------- -----------
Total operating expenses 43,920 41,909
----------- -----------
Loss from operations (2,700) (2,023)
Financial (expense) income:
Interest expense (561) (450)
Interest income 7 2
----------- -----------
Loss before income taxes (3,254) (2,471)
Income tax benefit (1,217) (913)
----------- -----------
Net loss ($2,037) ($1,558)
=========== ===========
----------- -----------
Basic and diluted loss per share ($0.42) ($0.32)
=========== ===========
Basic weighted average common shares outstanding 4,844,524 4,846,021
Diluted weighted average common shares outstanding 4,844,524 4,846,021
Operating Statistics
----------------------------
2002 2003
----------- -----------
Operating ratio 106.6% 105.1%
Average revenue per tractor per week $1,990 * $2,183 *
Average revenue per seated tractor per week $2,300 * $2,288 *
Average length of haul in miles 673 673
Average revenue per loaded mile $1.35 * $1.35 *
Ending company tractors 939 771
Ending owner/operators tractors 576 515
Ending trailers 2,715 2,434
Weighted average tractors 1,517 1,285
*excludes fuel surcharge
SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
December 31, March 31,
2002 2003
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $105 $118
Receivables, net 14,125 16,839
Inventories 868 904
Prepaid expenses and other 4,508 5,928
------------- ------------
Total current assets 19,606 23,789
Property and equipment 131,601 127,557
Less accumulated depreciation 64,031 64,802
------------- ------------
Net property and equipment 67,570 62,755
Other assets 2,233 2,188
------------- ------------
Total assets $89,409 $88,732
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current debt $11,595 $11,942
Accounts payable and accrued expenses 12,139 14,522
------------- ------------
Total current liabilities 23,734 26,464
Long-term debt 32,225 31,123
Deferred income taxes 10,257 9,510
------------- ------------
Total liabilities 66,216 67,097
Stockholders' equity 23,193 21,635
------------- ------------
Total liabilities and stockholders' equity $89,409 $88,732
============= ============