First half 2021 income up 123.7% at USA Truck; revenue up 31.1%

by Michael Tilley ([email protected]) 854 views 

A national and global supply chain facing far more demand than capacity to deliver has helped Van Buren-based USA Truck turn the corner on what was a financially tough 2020. First-half 2021 revenue is up more than 30% and net income is up 123.7%.

The trucking and logistics company reported Thursday (July 29) that second-quarter net income was $4.193 million, well ahead of the $931,000 loss reported in the same quarter of 2020. Quarterly revenue was $170.031 million, up 37.4% compared with the $123.737 million in the same quarter of 2020. Earnings per share was 47 cents.

“For the fourth straight quarter, USA Truck produced the best quarterly EPS in the Company’s history for that respective quarter. We also set an all‑time quarterly revenue record of $170.0 million during the quarter,” USA Truck President and CEO James Reed noted in the earnings report posted after the markets closed. “We are proud of these results, the progress they represent, and the team that worked so hard to achieve them, while acknowledging that we still have much higher goals to achieve and better results that we believe we can produce.”

Net income in the first six months of 2021 was $7.79 million, up 123.7% compared with the $3.482 million in the same period of 2020. First-half revenue was $328.536 million, well ahead of the $250.51 million in the same period of 2020.

Reed noted that the “pricing environment remains strong” because demand for freight shipment continues to outpace freight capacity, but also sought to credit “our results also reflect the outcome of structural changes within our business around our network, operational execution, and cultural transformation.”

The ability to push for higher prices is best reflected in a 14.9% gain in first-half 2021 operating revenue in the trucking segment and an impressive 73.4% gain in the company’s logistics segment. Operating income in the segments point to the higher margins produced by the better pricing.

First-half trucking revenue was $207.878 million, up from the $180.921 million in the same period of 2020. Operating income in the segment for the first half was $7.254 million, significantly better than the $478,000 in the same period.

First-half logistics revenue was $120.658 million, up from the $69.589 million in the same period of 2020. Operating income in the segment for the first half was $6.4 million, also significantly better than the $797,000 loss in the same period.

The company also was able to reduce its debt load from $154.198 million as of Dec. 31, to $136.098 million as of June 30.

Following are other key metrics included in the quarterly report.
• Base revenue per available tractor per week increased $732, or 24.4%, compared to the 2020 quarter primarily due to the increase in base revenue per loaded mile.
• Base revenue per loaded mile increased $0.444, or 22% compared to the 2020 quarter as a result of the tight supply market, our improvements in network efficiencies and higher rate realizations during the bidding process.
• Loaded miles per available tractor per week increased 29 miles, or 1.9%, compared to the 2020 quarter.
• Average number of seated tractors for the 2021 Quarter was 1,787, down 8% when compared to an average of 1,943 in the 2020 quarter.
• USAT Logistics load volume increased 11.2% with revenue up 103.3% year over year.
• Revenue per load in the logistics segment increased 82.9%, or $962 per load compared to the 2020 quarter.
• Load count increased by 3,738 loads, or 11.2% compared to the 2020 quarter.

The price of the thinly traded stock (NASDAQ: USAK) closed Thursday at $14.82, up 29 cents. During the past 52 weeks, the share price has ranged between $21.89 and $8.04.

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