USA Truck Inc.’s negative earnings report was driven primarily by rate reductions and lower volumes with some dedicated customers.
Reporting before the stock markets opened Wednesday, the Van Buren-based carrier reported a net loss of $1.35 million, or 15 cents per share, for the quarter that ended June 30, compared to net income of $2.77 million, or 26 cents per share, in the same period a year ago.
The loss missed the average estimated profit of 19 cents per share from four analysts surveyed by Thomson Reuters.
Revenue fell 15 percent to $99.51 million, excluding fuel surcharge revenue of $10.38 million.
USA Truck’s base revenue per loaded mile decreased 17 cents or more than 9 percent in the second quarter, president and CEO Randy Rogers said in a news release.
“Despite the disappointing quarterly results,” he said, “the company generated incremental progress from the previously announced initiatives, and believes it can produce substantially improved results through the following actions, all of which are in progress:
- Accelerated disposal of high-cost equipment
- Expanded focus on cost control, including a reduction in force in the second quarter
- Continued refinement of its network to build greater density, aided by a lower fleet size
- Continued growth of USAT Logistics market share as demonstrated by increased load count in the quarter.”
The company has reduced the number of company-owned tractors by 5.3 percent, started outsourcing 80 percent of repair and maintenance costs after closing four maintenance facilities and plans to generate savings of $2 million annually by not filling open positions.
So far this year, USAT Logistics, the company’s asset light business, increased its load count by 12 percent.
Throughout the remainder of the year, the company will focus on improving its base rate per loaded mile, the productivity of its sales force and put its tractors to better use.
In mid-morning trading Wednesday on the Nasdaq, USA Truck’s shares were down $3.48, or 18.1 percent, at $15.75. Shares have traded between $11.58 and $23.48 in the past year.