August 1, 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 IMPROVED SECOND QUARTER RESULTS
FORT DODGE, IOWA (PR Newswire) August 1, 2003--Smithway Motor Xpress Corp.
(Nasdaq SmallCap Market: SMXC) announced today financial and operating results
for the second quarter and six months ended June 30, 2003.
For the quarter, operating revenue decreased approximately 6.6% to $42.2 million
from $45.2 million for the corresponding quarter in 2002. Smithway's net loss
was $458,000, or ($0.09) per basic and diluted share, compared with net loss of
$1.2 million, or ($0.24) per basic and diluted share, for the same quarter in
2002.
For the first six months in 2003, operating revenue decreased approximately 5.0%
to $82.1 million from $86.5 million for the first six months in 2002. Smithway's
net loss was $2.0 million, or ($0.42) per basic and diluted share, compared with
net loss of $3.2 million, or ($0.66) per basic and diluted share, for the first
six months in 2002.
The improvement in performance is primarily attributable to decreased expenses
resulting from ongoing cost containment efforts. On a cost per mile basis,
comparing second quarter 2003 to second quarter 2002 non-driver wages decreased
20.6%, fringe benefits decreased 12.0%, fuel expense, net of fuel surcharge
revenue, decreased 7.9% and general and administrative costs decreased 20.7%.
Following the end of the quarter, five operating terminals have been
consolidated into existing locations and two maintenance facilities have been
closed. These measures are a part of the Company's initiatives to return to
profitability.
Following the end of the quarter the Company obtained waivers for loan covenant
violations at June 30, 2003. Additionally, the primary lender extended the due
date of the credit agreement to July 1, 2004.
In other matters, the Company has scheduled its annual shareholders meeting for
Friday, October 24, 2003, at 10:00 a.m. in Fort Dodge, Iowa.
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 Year to Date
June 30, June 30,
(unaudited) (unaudited)
---------------------------- -------------------------
2002 2003 2002 2003
-------------- ------------ ------------ ------------
Operating revenue:
Freight $45,041 $42,196 $86,100 $82,075
Other 198 45 359 52
-------------- ------------ ------------ ------------
Operating revenue 45,239 42,241 86,459 82,127
Operating expenses:
Purchased transportation 16,551 14,344 31,842 28,699
Compensation and employee benefits 13,740 12,653 27,144 25,027
Fuel, supplies, and maintenance 7,023 7,094 13,507 14,931
Insurance and claims 1,639 1,476 3,452 2,498
Taxes and licenses 920 839 1,756 1,680
General and administrative 1,928 1,856 3,737 3,214
Communications and utilities 432 381 939 793
Depreciation and amortization 4,269 3,781 8,045 7,491
-------------- ------------ ------------ ------------
Total operating expenses 46,502 42,424 90,422 84,333
-------------- ------------ ------------ ------------
Loss from operations (1,263) (183) (3,963) (2,206)
Financial (expense) income:
Interest expense (524) (496) (1,085) (946)
Interest income 10 2 17 4
-------------- ------------ ------------ ------------
Loss before income taxes (1,777) (677) (5,031) (3,148)
Income tax benefit (616) (219) (1,833) (1,132)
-------------- ------------ ------------ ------------
Net loss ($1,161) ($458) ($3,198) ($2,016)
============== ============ ============ ============
-------------- ------------ ------------ ------------
Basic and diluted loss per share ($0.24) ($0.09) ($0.66) ($0.42)
============== ============ ============ ============
Basic weighted average common shares outstanding 4,846,021 4,846,821 4,845,277 4,846,821
Diluted weighted average common shares outstanding 4,846,021 4,846,821 4,845,277 4,846,821
Operating Statistics
---------------------------- -------------------------
2002 2003 2002 2003
-------------- ------------ ------------ ------------
Operating ratio 102.8% 100.4% 104.6% 102.7%
Average operating revenue per tractor per week $2,374 $2,585 $2,229 $2,485
Average revenue per tractor per week $2,221* $2,389* $2,103* $2,285*
Average revenue per seated tractor per week $2,503* $2,511* $2,402* $2,398*
Average length of haul in miles 656 647 664 649
Average revenue per loaded mile $1.36* $1.37* $1.36* $1.36*
Ending company tractors 870 760 870 760
Ending owner/operators tractors 552 467 552 467
Ending trailers 2,665 2,317 2,665 2,317
Weighted average tractors 1,466 1,257 1,492 1,271
*excludes fuel surcharge, brokerage, and other revenue.
SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
December 31, June 30,
2002 2003
-------------------- ----------------
ASSETS
Current assets:
Cash and cash equivalents $105 $349
Receivables, net 14,125 16,845
Inventories 868 995
Prepaid expenses and other 4,508 4,748
-------------------- ----------------
Total current assets 19,606 22,937
Property and equipment 131,601 127,076
Less accumulated depreciation 64,031 66,053
-------------------- ----------------
Net property and equipment 67,570 61,023
Other assets 2,233 2,181
-------------------- ----------------
Total assets $89,409 $86,141
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current debt $11,595 $11,659
Accounts payable and accrued expenses 12,139 14,559
-------------------- ----------------
Total current liabilities 23,734 26,218
Long-term debt 32,225 29,447
Deferred income taxes 10,257 9,299
-------------------- ----------------
Total liabilities 66,216 64,964
Stockholders' equity 23,193 21,177
-------------------- ----------------
Total liabilities and stockholders' equity $89,409 $86,141
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