USA Truck posts $1.8 million quarterly loss (Updated)

Van Buren-based USA Truck announced Thursday morning (April 16) a first-quarter net income loss of $1.88 million resulting from “severe contraction” in freight demand.

The loss, however, was an improvement over the $1.94 million lost in the first quarter of 2008. Total revenue in the first quarter was $93.49 million, down 26.5% from the $127.23 million in the same period of 2008.

“This quarter presented the most challenging operating environment that we have ever experienced,” Clifton Beckham, president and CEO of USA Truck, said in the earnings statement. “The quarter was characterized by a severe contraction in freight volume resulting from the current economic recession and from inventory reductions by both manufacturers and retailers.”

Beckham further explained that the current freight recession began in the third quarter of 2006, and freight volume declines “accelerated markedly” between November 2008 and January 2009.

“Although volumes have stabilized since January, albeit at historically low levels, the truckload industry continues to be plagued by too many trucks chasing too little freight, which is spawning fierce, and often irrational, price competition,” Beckham noted in the statement.

The freight recession resulted in 61,617 total miles driven in the quarter, a decline of almost 17% compared to the same quarter in 2008. The company had 2,376 trucks (tractors) at the end of the quarter, 190 fewer than at the end of the first quarter of 2008.

The company did post some good operations news. It grew revenue from the relatively new Intermodal operation five-fold to $1.6 million. The company also said it reduced the money it spent on insurance and claims expense by 25%.

Shares of USA Truck (Nasdaq: USAK) closed Wednesday at $13.14. During the past 52 weeks the share price has ranged from a $19.53 high to a $9.50 low.

EXECUTIVE COMPENSATION (includes base salary, stock and option awards and insurance and retirement benefits)
The company also released its executive compensation figures in a recent Proxy statement filed with the U.S. Securities and Exchange Commission.

Robert Powell, chairman
2008: $219,376 million
2007: $233,699 million

Clifton Beckham, president and CEO
2008: $282,717
2007: $219,332

Garry Lewis, executive vice president and chief operating officer
2008: $249,618
2007: $214,434

M. Eric Brown, senior vice president-operations
2008: $236,075
2007: $224,973

Darron Ming, chief financial officer, treasurer
2008: $195,752
2007: $151,599