USA Truck Posts $2.5 Million Net Loss
by May 6, 2013 7:37 am 63 views
Embattled USA Truck posted a smaller first quarter loss than a year ago, and its new CEO says the Van Buren-based trucking company is poised for a return to profitability.
USA Truck posted first quarter losses of $2.47 million on total revenue of $132 million. One year ago, the company posted a $4.87 million loss on revenue of $123.7 million.
“Overall company base revenue improved by 7.2% and operating costs were held to an increase of 3.5%, thus improving operating margin by over 400 basis points,” said John Simone, President and CEO. “Our operational execution continues to improve, helping us overcome difficult weather conditions across our operating areas and fewer business days due to leap year and an early Easter. We are pleased with our progress, and our top priority is returning to profitability as quickly as possible and restoring shareholder value.”
Simone was brought on board the company in mid-February, while former CEO Cliff Beckham moved to the Chief Financial Officer position.
Simone has over 30 years of operational and management experience in the transportation industry with leading companies that include UPS, Ryder, and Greatwide Logistics. Most recently, he was the CEO of LinkAmerica where he led a successful operational turnaround.
USA Truck has struggled with major losses in recent years, including a $17.5 million loss in 2012.
“Since my arrival at USA Truck in mid-February, I have spent a great deal of time gaining a better understanding of our opportunities, both in the corporate offices and in the field visiting our customers, suppliers and remote company facilities,” he said. “I have been very encouraged by the quality of our company’s assets, customers and people. I believe there is a strong foundation and, as this earnings report points out, positive momentum. We expect to build upon that foundation and momentum by adding greater clarity, focus and execution. Our strategy: return to profitability and restore shareholder value through operational excellence, profitable revenue growth and cost efficiencies. We have identified, developed and begun executing high-leverage activities in each of these critical areas. We look forward to reporting our progress in future communications.”
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