USA Truck posts 2020 net income of $4.7 million, revenue up 5.4%

More demand for shipping and logistics services combined with fewer trucks and trailers to meet the demand helped USA Truck post its best ever per share earnings in the fourth quarter, the company reported Thursday (Feb. 4).

The Van Buren-based company posted full year net income of $4.746 million, much better than the $4.698 million loss in 2019. Revenue during the year was $551.138 million, better than the $522.631 million in 2019.

Fourth quarter net income was $5.933 million, also well ahead of the $4.827 million loss in the 2019 quarter. Per share earnings of 66 cents beat the consensus estimate of 42 cents. Quarterly revenue was $158.842 million, up 28% compared with the $124.111 million in the 2019 quarter, and better than the consensus estimate of $145.65 million.

“The fourth quarter of 2020 was the best quarterly earnings per share in our Company history. I am very pleased with and proud of the teamwork, cultural buy-in, and determination shown by our entire team of drivers and driver support that created these results, which clearly demonstrate our collective focus on delivering improved financial and operational results,” President and CEO James Reed noted in the report.

The company said a “second wave of COVID related buying in the consumer marketplace” boosted demand for company services.

“This demand upside was bolstered on the supply side by a tight driver market that resulted from several factors including the Drug and Alcohol Clearinghouse implementation, driver school closures or limited enrollments, and potential candidates opting for unemployment benefits and other public assistance incentives,” the company noted in the report.

SEGMENT PERFORMANCE
Trucking segment
2020 revenue: $384.256 million
2019 revenue: $377.093 million

2020 operating income: $9.297 million
2019 operating income: ($447,000)

4Q 2020 revenue: $104.251 million
4Q 2019 revenue: $97.127 million

4Q 2020 operating income: $6.355 million
4Q 2019 operating income: ($2.616 million)

Following are other key metrics in the trucking segment.
• Base revenue per available tractor per week increased $684, or 21.6%, compared to the fourth quarter of 2019.
• Base revenue per loaded mile increased $0.385, or 17.9% year over year. This change was the result of higher demand for services driven by holiday activity, and tightening supply resulting in higher rate realizations.
• Loaded miles per available tractor per week increased 46 miles, or 3.1%, compared to the fourth quarter of 2019.
• The average seated tractor count for the fourth quarter of 2020 was 1,776, which represented a decrease of 2.1% over the fourth quarter 2019 average of 1,815.
• Average unseated tractor percentage for the fourth quarter of 2020 was 6.9%, unchanged from the fourth quarter of 2019.

Logistics segment
2020 revenue: $191.952 million
2019 revenue: $154.011 million

2020 operating income: $3.561 million
2019 operating income: ($447,000)

4Q 2020 revenue: $65.328 million
4Q 2019 revenue: $33.622 million

4Q 2020 operating income: $3.381 million
4Q 2019 operating income: ($939,000)

Following are other key metrics in the trucking segment.
• Revenue per load increased 53.8%, or $701 per load year over year, and 23.6%.
• Load count increased by 6,779 loads, or 26.2%, year over year.

USA Truck shares (NASDAQ: USAK) closed Thursday at $11.47, up 44 cents. During the past 52 weeks the share price has ranged between $2.36 and $12.85.