USA Truck saw its base revenue and quarterly losses grow as the Van Buren-based trucking firm found difficulty shifting out of reverse.
On Thursday (July 19), USA Truck reported a second quarter loss of $3.5 million on revenue of $103.5 million. One year ago, the company posted a $600,000 net loss on sales of $108.5 million.
At the six-month mark, USA Truck is riding an $8.4 million loss, more than four times the loss it reported a year ago.
Cliff Beckham, President and CEO, put on his best spin, but there was no hiding the obvious negativities in the company's latest financials.
“USA Truck's net loss for the second quarter of 2012 narrowed compared to the past three sequential quarters,” Beckham said. “Bright spots included continued strong performance in our SCS [strategic capacity solutions] segment, improved base revenue per manned tractor and lower fuel expense. Unfortunately, progress in these areas was hampered by lackluster performance in our trucking segment where unmanned t
ractors and lack of network efficiency continued to diminish asset productivity.”
Beckham also disclosed that the firm had not met terms of a credit agreement and was in the process of re-working its debt.
“At June 30, our outstanding debt, less cash, represented 50.9% of our balance sheet capitalization, compared to 47.4% at December 31, 2011. At June 30, 2012, we were not in compliance with the financial covenants contained in our revolving credit agreement. We have obtained a waiver from our bank group for such non-compliance that is effective through September 30, 2012,” he said. “Concurrently, we are negotiating a new five-year revolving credit facility with a different lender that will replace our current revolving credit agreement. We anticipate the new facility will afford us improved pricing and significantly greater financial flexibility.”
USA Truck's stock closed trading on Wednesday at $4.85 a share. The company's stock has traded between $4.47 and $12.41 in the past 12 months.