USA Truck Fourth Quarter ‘Marred’ By Poor Execution

Lost accounts — purposeful and not on purpose — set back fourth quarter and full-year results for Van Buren-based USA Truck.

The dry goods trucking firm posted a fourth quarter loss of $4.4 million, or $0.42 per share, on declining revenues of $126.2 million. One year ago, USA Truck recorded a loss of $1.8 million, or $0.17 per share, for the same quarter of 2010 on revenue of $122.1 million.

For the full year 2011, USA Truck tallied $10.78 million in losses on revenue of $519.4 million.

Shares of USA Truck (NASDAQ: USAK) closed trading Monday up $0.22 to $8.91.  In the last 52 weeks, the company’s shares have ranged from a low of $6.75 to a high of $13.49.

“Overall, however, our financial results are disappointing. Our cost control efforts in our trucking segment were effective, but we simply did not make the necessary progress on load volume or pricing during the quarter,” said CEO Clif Beckham. “Nevertheless, we believe that improvements in our underlying operational performance will support higher freight volumes and rates, and that the economic environment entering 2012 affords us a sound foundation for gaining asset utilization and profitability.”

Beckham said the company’s third quarter was “marred” by the implementation of a new software system that became problematic in tracking freight for the trucking firm. In turn, USA Truck lost valuable business in the fourth quarter.

“The service failures and lack of confidence in booking freight caused us to lose a percentage of our loads with many customers, often the most operationally demanding, highest paying loads,” Beckham said. “Compounding this situation, we phased out service on two major accounts, one due to the end of a project and one due to inadequate pricing.  Although we did not expect to have this freight long-term, replacing approximately 6.2% of our loads in one quarter has depressed our utilization and our rate structure while we replace the freight.  These problems and the resulting lower miles also accelerated turnover in our driver base.”

In addition to pursuing operational turnarounds, Beckham said that a new director had been added to the board.

Robert A. Peiser, whom USA Truck touted as having “broad-based executive, director and management experience with companies in transition in a variety of domestic and international industries” recently joined the board of directors.

“Peiser’s director experiences include both profit and not-for-profit companies and he has served in an advisory capacity to a private equity firm,” said Beckham.

Peiser holds an MBA degree in Finance and Management Control from Harvard University and a BA degree in Economics from the University of Pennsylvania.