USA Truck third quarter net income up 109.7%; revenue up 27.6%

by Michael Tilley ([email protected]) 996 views 

A clear indication of rising demand for global shipping logistics can be found in the more than 80% revenue gain in the first three quarters of 2021 with USA Truck’s logistics segment. Operating income in the segment is up more than 530% through September.

Van Buren-based USA Truck on Thursday (Oct. 28) reported a third-quarter net income of $4.813 million, more than double the $2.295 million in the same period of 2020. Earnings per share were 54 cents, better than the consensus estimate of 49 cents.

Revenue in the quarter totaled $180.997 million, up from the $141.786 million in the same quarter of 2020.

“We continue to transform the culture of our Company and in doing so we have delivered five straight quarters of record quarterly adjusted earnings per share. Our team set a second consecutive quarterly operating revenue record at $181.0 million and posted a 140 basis point improvement in adjusted operating ratio(a) year over year,” USA Truck President and CEO James Reed said in the earnings statement.

Net income through the first three quarters of the year is $12.603 million, a wide swing from the $1.187 million loss during the same period of 2020. Total revenue in the first three quarters is $509.533 million, better than the $392.296 million in the same period of 2020.

The company’s trucking segment posted revenue of $321.663 million through the first three quarters, up 14.8% compared with the $280.005 million in the same period of 2020. Operating income in the trucking segment in the three quarters was $12.036 million, up 181.5% compared with the $4.276 million in the same period of 2020.

The company’s logistics segment posted revenue of $238.708 million through the first three quarters, up 80.6% compared with the $126.623 million in the same period of 2020. Operating income in the segment in the three quarters was $9.809 million, up 531.9% compared with the $181,000 in the same period of 2020.

Following are other metrics noted in the third-quarter earnings report,
• Base revenue per available tractor per week increased $689, or 19.9%, primarily due to an increase in base revenue per loaded mile.
• Base revenue per loaded mile increased 50.4 cents, or 22.0% as a result of increased spot and contract pricing driven by market pressures.
• Loaded miles per available tractor per week decreased 26 miles, or 1.7%.
• Average number of seated tractors was 1,750, a decrease of 4.2% compared with an average of 1,827 in the 2020 quarter.
• Average unseated tractor percentage was 5.8%, an improvement from 7.2% for the 2020 quarter.
• Revenue per load in the logistics segment increased 37%, or $599 per load compared to the 2020 quarter, and 4.6%.
• Load count in the logistics segment increased by 4,638 loads, or 14.4% compared to the 2020 quarter.

USA Truck shares (NASDAQ: USAK) closed Thursday at $18.75, up 15 cents. The earnings report was posted after the markets closed. The price of the thinly traded stock has in the past 52 weeks ranged between $21.89 and $8.04.