Business Wire | Jul 27, 2020 04:06PM EDT

USA Truck Reports Second Quarter 2020 Results

Jul. 27, 2020

VAN BUREN, Ark.--(BUSINESS WIRE)--Jul. 27, 2020--USA Truck Inc. (NASDAQ: USAK), a leading capacity solutions provider, today announced its financial results for the three and six months ended June 30, 2020.

For the quarter ended June 30, 2020, consolidated operating revenue was $123.7 million compared to $133.6 million for the prior-year period. Base revenue(a), which excludes fuel surcharge revenue, was $113.2 million compared to $116.7 million for the 2019 period. The Company reported a net loss of $0.9 million, or $0.11 per diluted share for the second quarter 2020 and adjusted net loss(a) of $0.5 million, or $0.06 per diluted share, compared to net income of $0.0 million, or $0.00 per diluted share and adjusted net income(a) of $0.3 million, or $0.03 per diluted share for the same quarter in 2019. The Company's second quarter 2020 consolidated operating ratio was 99.2%, compared to 98.5% in the comparable 2019 quarter.

President and CEO James Reed commented, "The second quarter of 2020 was unlike any quarter we have seen in transportation, producing unprecedented day to day and week to week swings in freight and pricing due to the COVID-19 pandemic. Our diversified customer base - we classify approximately 80% of our customers as essential / quasi-essential - kept our asset-based freight moving consistently through the quarter. Although our non-essential customers, which are critical to our network despite being a smaller relative percentage of the freight basket, have yet to make a full recovery. We supplemented this shortfall with lower priced spot freight and consequently saw an overall degradation in our base revenue per available tractor per week. Despite the challenges, the Trucking segment improved its adjusted operating ratio(a) by 370 basis points sequentially.

USAT Logistics' efficiency continued to improve as we saw a 15.7% increase year over year in load count, continuing the recent trend of efficiency gains and throughput capacity. But the broader environment proved challenging as spot prices alternated between near all-time lows and near all-time highs all within the same quarter. We expect this segment will continue to track ahead of the market in coming quarters.

Our organization is continuing to show progress in key initiatives of regionalization, technology, and cost control. Regionalization is starting to gain traction, as we anticipate the opening of a terminal in the Dallas, Texas market by the end of third quarter. We expect the addition of this terminal to result in lower over the road maintenance costs, improved driver retention, and better network execution. Additionally, we have entered into an agreement for delivery of an additional 189 new tractors that we expect to be completed during 2020. This transaction will reduce our average age of the fleet, improve maintenance costs further, and contribute to our cost reduction initiatives.

We believe we are well positioned as market capacity is tightening: we continue to focus on providing great service to our customers, improving utilization on our trucks, and increasing volumes through our USAT Logistics segment."

Trucking For the second quarter of 2020, Trucking operating revenue (before intersegment eliminations) decreased $7.8 million, or 8.1%, to $88.6 million, compared to the second quarter of 2019. Trucking operating income of $1.2 million for the 2020 period, reflected an operating ratio of 98.7%, compared to operating income of $0.8 million and an operating ratio of 99.1% for the second quarter of 2019. This represents an increase of $0.3 million year over year in operating income and a 40 basis point improvement in operating ratio. Trucking adjusted operating income(a) was $1.7 million for the 2020 period, reflecting an adjusted operating ratio(a) of 97.8%, compared to adjusted operating income(a) of $1.2 million and an adjusted operating ratio(a) of 98.6% for the comparable 2019 period. This represents an increase of $0.6 million year over year in adjusted operating income(a) and a 80 basis point improvement in adjusted operating ratio(a).

Trucking operations delivered the following results during the second quarter:

* Base revenue per available tractor per week decreased $347 per week, or 10.4%, compared to the second quarter of 2019, and $220 per week or 6.8% sequentially, primarily due to a decrease in base revenue per loaded mile. * Base revenue per loaded mile decreased $0.123, or 5.7% year over year and $0.068, or 3.3%, sequentially. This change was the result of continued decreased rate realizations. * Loaded miles per available tractor per week decreased 76 miles, or 4.9%, compared to the second quarter of 2019, and by 57 miles per tractor, or 3.7% sequentially. * Deadhead percentage for second quarter 2020 increased 40 basis points year over year but improved 10 basis points sequentially. * The average seated tractor count for the second quarter of 2020 was 1,943, which represented an increase of 6.9% over the second quarter 2019 average of 1,817, and a 3.8% increase over the sequential average of 1,871. Average unseated tractor percentage for second quarter 2020 was 5.8%, an increase from 5.2% for both the second quarter of 2019 and sequentially.

USAT Logistics: Operating revenue (before intersegment eliminations) was $38.7 million for the second quarter of 2020, a decrease of $0.8 million, or 2.1% year over year. Both operating loss and adjusted operating loss(a) were $0.2 million for the second quarter of 2020, reflecting an operating ratio of 100.5% and an adjusted operating ratio of 100.5%, compared to operating income and adjusted operating income(a) of $1.1 million and an operating ratio of 97.1% and an adjusted operating ratio(a) of 96.8% for the comparable 2019 period. This change represented a decrease of $1.3 million year over year in operating income and adjusted operating income(a) and a degradation of 340 basis points in operating ratio and 370 basis points in adjusted operating ratio(a) compared to the second quarter of 2019.

USAT Logistics operations delivered the following results during the second quarter:

* Gross margin dollars decreased 27.9%, or $1.8 million year over year, to $4.7 million for the second quarter 2020, but increased 18.7%, or $0.7 million, sequentially. * Gross margin percentage for the second quarter of 2020 decreased 430 basis points to 12.2% compared to 16.5% in the second quarter of 2019 but increased 110 basis points sequentially from 11.1%. * Revenue per load decreased 15.4%, or $212 per load year over year, and decreased 11.8%, or $155 per load, sequentially. * Load count increased by approximately 4,500 loads, or 15.7%, year over year and by 6,100 loads, or 22.4%, sequentially.

Segment Results

The following table includes key operating results and statistics by reportable segment:



Three Months Ended Six Months Ended

June 30, June 30,

Trucking: 2020 2019 2020 2019

Operating revenue (beforeintersegment eliminations) (in $ 88,627 $ 96,476 $ 182,622 $ 191,378 thousands)

Operating income (loss) (1) (in $ 1,176 $ 837 $ (511 ) $ 2,445 thousands)

Adjusted operating income (loss) $ 1,733 $ 1,178 $ 478 $ 3,468 (2) (in thousands)

Operating ratio (3) 98.7 % 99.1 % 100.3 % 98.7 %

Adjusted operating ratio (4) 97.8 % 98.6 % 99.7 % 97.9 %

Total miles (5) (in thousands) 45,961 44,683 91,680 87,447

Deadhead percentage (6) 13.1 % 12.7 % 13.2 % 13.0 %

Base revenue per loaded mile $ 2.017 $ 2.140 $ 2.051 $ 2.191

Average number of seated tractors 1,943 1,817 1,907 1,792

Average number of available 2,063 1,916 2,018 1,916 tractors (7)

Average number of in-service 2,075 1,945 2,039 1,950 tractors (8)

Loaded miles per available 1,489 1,565 1,517 1,535 tractor per week

Base revenue per available $ 3,003 $ 3,350 $ 3,111 $ 3,362 tractor per week

Average loaded miles per trip 501 500 498 493



USAT Logistics:

Operating revenue (beforeintersegment eliminations) (in $ 38,738 $ 39,575 $ 74,562 $ 81,025 thousands)

Operating (loss) income (1) (in $ (176 ) $ 1,146 $ (801 ) $ 3,459 thousands)

Adjusted operating (loss) income $ (172 ) $ 1,146 $ (797 ) $ 3,459 (2) (in thousands)

Gross margin (9) (in thousands) $ 4,712 $ 6,532 $ 8,681 $ 14,219

Gross margin percentage (10) 12.2 % 16.5 % 11.6 % 17.5 %

Load count (in thousands) 33.4 28.8 60.6 56.5



1) Operating income (loss) is calculated by deducting operating expenses (before intersegment eliminations) from operating revenue (before intersegment eliminations).

2) Adjusted operating income (loss)(a) is calculated by deducting operating expenses (before intersegment eliminations) excluding severance costs included in salaries, wages and employee benefits, certain asset impairments, and amortization of acquisition related intangibles, net of fuel surcharge revenue from operating revenue (before intersegment eliminations), net of fuel surcharge revenue.

3) Operating ratio is calculated as operating expenses (before intersegment eliminations) as a percentage of operating revenue (before intersegment eliminations).

4) Adjusted operating ratio(a) is calculated as operating expenses (before intersegment eliminations) excluding severance costs included in salaries, wages and employee benefits, certain asset impairments, and amortization of acquisition related intangibles, net of fuel surcharge revenue, as a percentage of operating revenue (before intersegment eliminations) excluding fuel surcharge revenue.

5) Total miles include both loaded and empty miles.

6) Deadhead percentage is calculated by dividing empty miles by total miles.

7) Available tractors are a) all Company tractors that are available to be dispatched, including available unseated tractors, and b) all tractors in the independent contractor fleet.

8) In-service tractors include all of the tractors in the Company fleet (Company-operated tractors) and all the tractors in the independent contractor fleet.

9) Gross margin is calculated by deducting USAT Logistics purchased transportation expense from USAT Logistics operating revenue (before intersegment eliminations).

10) Gross margin percentage is calculated as USAT Logistics gross margin divided by USAT Logistics operating revenue (before intersegment eliminations).

Balance Sheet and Liquidity

As of June 30, 2020, total debt and lease liabilities was $189.5 million, total debt and lease liabilities, net of cash ("Net Debt")(a), was $189.4 million and total stockholders' equity was $75.5 million. Net Debt to Adjusted EBITDAR(a) for the trailing twelve months ended June 30, 2020 was 4.1x. The Company had approximately $38 million available to borrow under its Credit Facility as of June 30, 2020.

Second Quarter 2020 Conference Call Information

USA Truck will hold a conference call to discuss its second quarter 2020 results on Tuesday, July 28, 2020 at 8:00 AM CT / 9:00 AM ET. To participate in the call, please dial 1-844-824-3828 (U.S./Canada) or 1?412?317?5138 (International). A live webcast of the conference call will be broadcast in the Investor Relations section of the Company's website www.usa-truck.com, under the "Events & Presentations" tab of the "Investor Relations" menu. For those who cannot listen to the live broadcast, the presentation materials and an audio replay of the call will be available at our website, www.usa-truck.com, under the "Events & Presentations" tab of the "Investor Relations" menu, or may be accessed using the following link: https://services.choruscall.com/links/usak200728.html. A telephone replay of the call will also be available through August 4, 2020, and may be accessed by calling 1-877-344-7529 (U.S.), 1-855-669-9658 (Canada), or 1?412-317-0088 (International) and by referencing conference ID #10145647.

(a) About Non-GAAP Financial Information

In addition to our GAAP results, this press release also includes certain non-GAAP financial measures, as defined by the SEC. The terms "Base Revenue," "Net Debt," "EBITDAR," "Adjusted EBITDAR," "Adjusted operating ratio," "Adjusted operating income (loss)," "Adjusted net income (loss)," and "Adjusted earnings (loss) per diluted share," as we define them, are not presented in accordance with GAAP.

The Company defines Base Revenue as operating revenue less fuel surcharge revenue and intercompany eliminations. The Company defines Net Debt as total debt, including insurance premium financing and lease liabilities, net of cash. The Company defines EBITDAR as net income (loss), plus interest expense net of interest income, provision for income tax expense (benefit), depreciation and amortization, and equipment rent. The Company defines Adjusted EBITDAR as EBITDAR plus non-cash equity compensation, severance costs included in salaries, wages and employee benefits, and asset impairments. Adjusted operating ratio is calculated as operating expenses excluding severance costs included in salaries, wages and employee benefits, certain asset impairments, and amortization of acquisition related intangibles, net of fuel surcharge revenue, as a percentage of operating revenue excluding fuel surcharge revenue. Adjusted operating income (loss) is calculated by deducting operating expenses excluding severance costs included in salaries, wages and employee benefits, certain asset impairments, and amortization of acquisition related intangibles, net of fuel surcharge revenue, from operating revenue, net of fuel surcharge revenue. Adjusted net income (loss) is defined as net income (loss) excluding severance costs included in salaries, wages and employee benefits, certain asset impairments, and amortization of acquisition related intangibles plus or minus the income tax effect of such adjustments using a statutory tax rate. Adjusted earnings (loss) per diluted share is defined as Adjusted net income (loss) divided by the weighted average number of diluted shares outstanding during the period. The per-share impact of each item is determined by dividing it by the weighted average diluted shares outstanding. These financial measures supplement our GAAP results in evaluating certain aspects of our business. We believe that using these measures improves comparability in analyzing our performance because they remove the impact of items from our operating results that, in our opinion, do not reflect our core operating performance. Management and the board of directors focus on Base Revenue, Net Debt, EBITDAR, Adjusted EBITDAR, Adjusted operating ratio, Adjusted operating income (loss), Adjusted net income (loss), and Adjusted earnings (loss) per diluted share as key measures of our performance and liquidity, all of which are reconciled to the most comparable GAAP financial measures and further discussed below. We believe our presentation of these non-GAAP financial measures is useful to investors and other users because it provides them the same information that we use internally for purposes of assessing our core operating performance.

Base Revenue, Net Debt, EBITDAR, Adjusted EBITDAR, Adjusted operating ratio, Adjusted operating income (loss), Adjusted net income (loss), and Adjusted earnings (loss) per diluted share are not substitutes for their comparable GAAP financial measures, such as total debt, net income (loss), cash flows from operating activities, operating ratio, diluted earnings (loss) per share, or other measures prescribed by GAAP. There are limitations to using non-GAAP financial measures. Although we believe that they improve comparability in analyzing our period to period performance, they could limit comparability to other companies in our industry if those companies define these measures differently. Because of these limitations, our non-GAAP financial measures should not be considered measures of income generated by our business or discretionary cash available to us to invest in the growth of our business. Management compensates for these limitations by primarily relying on GAAP results and using non-GAAP financial measures on a supplemental basis.

Pursuant to the requirements of Regulation G and Regulation S-K, we have provided reconciliations of Base Revenue, Net Debt, EBITDAR, Adjusted EBITDAR, Adjusted operating ratio, Adjusted operating income (loss), Adjusted net income (loss), and Adjusted earnings (loss) per diluted share to the most comparable GAAP financial measures at the end of this press release.

Cautionary Statement Concerning Forward-Looking Statements

Financial information in this press release is preliminary and based upon information available to the Company as of the date of this press release. As such, this information remains subject to the completion of our quarterly review procedures, and the filing of the related Quarterly Report on Form 10-Q, which could result in changes, some of which could be material, to the preliminary information provided in this press release.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. These statements generally may be identified by their use of terms or phrases such as "seek," "expects," "estimates," "anticipates," "projects," "believes," "hopes," "plans," "goals," "intends," "may," "might," "likely," "will," "should," "would," "could," "potential," "predict," "continue," "strategy," "future" and terms or phrases of similar substance. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, including the impacts and duration of the COVID-19 pandemic. In addition, there are other risks, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. Accordingly, actual results may differ materially from those set forth in the forward-looking statements. Readers should review and consider the factors that may affect future results and other disclosures by the Company in its press releases, Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made. We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information, except as required by law. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release might not occur. All forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by this cautionary statement.

References to the "Company," "we," "us," "our" and words of similar expression refer to USA Truck Inc. and its subsidiaries.

About USA Truck

USA Truck provides comprehensive capacity solutions to a broad and diverse customer base throughout North America. Our Trucking and USAT Logistics divisions blend an extensive portfolio of asset and asset-light services, offering a balanced approach for our customers' supply chain management, including customized truckload, dedicated contract carriage, intermodal and third-party logistics freight management services. For more information, visit usa-truck.com or usatlogistics.com.

This press release and related information will be available to interested parties at our investor relations website, http://investor.usa-truck.com.

USA TRUCK INC.CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS)INCOME(UNAUDITED)



Three Months Ended Six Months Ended

June 30, June 30,

2020 2019 2020 2019

(in thousands, except per share data)

Operating revenue $ 123,737 $ 133,622 $ 250,510 $ 267,596



Operating expenses:

Salaries, wages and 33,636 33,806 69,481 69,896 employee benefits

Fuel and fuel taxes 8,082 14,102 19,945 27,733

Depreciation and 10,034 9,125 20,045 17,943 amortization

Insurance and claims 4,009 7,160 9,866 14,440

Equipment rent 2,336 2,568 4,628 5,288

Operations and 8,606 8,481 17,502 15,754 maintenance

Purchased transportation 49,276 49,072 97,090 97,353

Operating taxes and 1,349 1,311 2,508 2,428 licenses

Communications and 906 719 1,719 1,486 utilities

(Gain) loss on disposal (16 ) 141 22 (4 )of assets, net

Asset impairments 588 367 588 367

Other 3,931 4,787 8,428 9,008

Total operating expenses $ 122,737 $ 131,639 $ 251,822 $ 261,692

Operating income (loss) 1,000 1,983 (1,312 ) 5,904



Other expenses:

Interest expense, net 1,235 1,595 2,919 3,336

Other, net 64 171 110 308

Total other expenses, net 1,299 1,766 3,029 3,644

(Loss) income before (299 ) 217 (4,341 ) 2,260 income taxes

Income tax expense 632 216 (859 ) 758 (benefit)



Consolidated net (loss)income and comprehensive $ (931 ) $ 1 $ (3,482 ) $ 1,502 (loss) income



Net (loss) earnings per share:

Average shares 8,820 8,554 8,737 8,479 outstanding (basic)

Basic (loss) earnings per $ (0.11 ) $ 0.00 $ (0.40 ) $ 0.18 share



Average shares 8,820 8,567 8,737 8,498 outstanding (diluted)

Diluted (loss) earnings $ (0.11 ) $ 0.00 $ (0.40 ) $ 0.18 per share

GAAP TO NON-GAAP RECONCILIATIONS^(a)(UNAUDITED)ADJUSTED (LOSS) EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION,RENT^(a)

Three Months Ended

6/30/2020 3/31/2020 12/31/2019 9/30/2019

(in thousands)

Net loss $ (931 ) $ (2,551 ) $ (4,827 ) $ (1,373 )

Add:

Depreciation and amortization 10,034 10,011 9,598 9,652

Equipment rent 2,336 2,292 2,459 2,427

Interest expense, net 1,235 1,684 1,646 1,615

Income tax expense (benefit) 632 (1,491 ) (493 ) (421 )

EBITDAR^(a) 13,306 9,945 8,383 11,900

Add:

Non-cash equity compensation 363 471 527 (107 )

Severance costs included insalaries, wages and employee 84 92 122 - benefits

Asset impairments 588 - 418 1

Adjusted EBITDAR^(a) $ 14,341 $ 10,508 $ 9,450 $ 11,794

ADJUSTED NET (LOSS) INCOME RECONCILIATION^(a)



Three Months Ended Six Months Ended

June 30, June 30,

2020 2019 2020 2019

(in thousands)

Net (loss) income $ (931 ) $ 1 $ (3,482 ) $ 1,502

Adjusted for:

Severance costs included insalaries, wages, and employee 84 - 176 319 benefits

Asset impairment - land 137 - 137 -

Amortization of acquisition related 340 341 680 704 intangibles

Income tax effect of adjustments (143 ) (87 ) (253 ) (261 )

Adjusted net (loss) income^(a) $ (513 ) $ 255 $ (2,742 ) $ 2,264

ADJUSTED (LOSS) EARNINGS PER DILUTED SHARE RECONCILIATION^(a)



Three Months Ended Six Months Ended

June 30, June 30,

2020 2019 2020 2019

(Loss) earnings per diluted share $ (0.11 ) $ 0.00 $ (0.40 ) 0.18

Adjusted for:

Severance costs included insalaries, wages and employee 0.01 - 0.02 0.04 benefits

Asset impairment - land 0.02 - 0.02 -

Amortization of acquisition 0.04 0.04 0.08 0.08 related intangibles

Income tax effect of adjustments (0.02 ) (0.01 ) (0.03 ) (0.03 )

Adjusted (loss) earnings per $ (0.06 ) $ 0.03 $ (0.31 ) $ 0.27 diluted share^(a)

NET DEBT RECONCILIATION^(a)



June 30, 2020 December 31, 2019

(in thousands)

Total current debt and lease liabilities $ 32,020 $ 42,994

Long-term debt, less current maturities 92,158 83,349

Leases, less current maturities 65,329 64,209

Total Debt 189,507 190,552

Less: Cash (92 ) (97 )

Net Debt^(a) $ 189,415 $ 190,455

ADJUSTED OPERATING RATIO RECONCILIATION^(a)



Three Months Ended Six Months Ended

June 30, June 30,

Consolidated 2020 2019 2020 2019

(in thousands)

Operating revenue $ 123,737 $ 133,622 $ 250,510 $ 267,596

Less: fuel surcharge (10,534 ) (16,901 ) (24,546 ) (32,341 ) revenue

Base revenue $ 113,203 $ 116,721 $ 225,964 $ 235,255

Operating expense $ 122,737 $ 131,639 $ 251,822 $ 261,692

Adjusted for:

Severance costsincluded in salaries, (84 ) - (176 ) (319 ) wages, and employeebenefits

Asset impairment - land (137 ) - (137 ) -

Amortization ofacquisition related (340 ) (341 ) (680 ) (704 ) intangibles

Fuel surcharge revenue (10,534 ) (16,901 ) (24,546 ) (32,341 )

Adjusted operating $ 111,642 $ 114,397 $ 226,283 $ 228,328 expense

Operating income (loss) $ 1,000 $ 1,983 $ (1,312 ) $ 5,904

Adjusted operating $ 1,561 $ 2,324 $ (319 ) $ 6,927 income (loss)^(a)

Operating ratio 99.2 % 98.5 % 100.5 % 97.8 %

Adjusted operating 98.6 % 98.0 % 100.1 % 97.1 %ratio^(a)



Three Months Ended Six Months Ended

June 30, June 30,

Trucking Segment 2020 2019 2020 2019

(in thousands)

Operating revenue $ 87,920 $ 96,069 $ 180,921 $ 190,609

Intersegment activity 707 407 1,701 769

Operating revenue(before intersegment 88,627 96,476 182,622 191,378 eliminations)

Less: fuel surcharge (8,083 ) (13,034 ) (19,371 ) (24,799 ) revenue

Base revenue $ 80,544 $ 83,442 $ 163,251 $ 166,579

Operating expense(before intersegment $ 87,451 $ 95,639 $ 183,133 $ 188,933 eliminations)

Adjusted for:

Severance costs includedin salaries, wages, and (80 ) - (172 ) (319 ) employee benefits

Asset impairment - land (137 ) - (137 ) -

Amortization ofacquisition related (340 ) (341 ) (680 ) (704 ) intangibles

Fuel surcharge revenue (8,083 ) (13,034 ) (19,371 ) (24,799 )

Adjusted operating $ 78,811 $ 82,264 $ 162,773 $ 163,111 expense

Operating income (loss) $ 1,176 $ 837 $ (511 ) $ 2,445

Adjusted operating $ 1,733 $ 1,178 $ 478 $ 3,468 income^(a)

Operating ratio 98.7 % 99.1 % 100.3 % 98.7 %

Adjusted operating ratio 97.8 % 98.6 % 99.7 % 97.9 %^(a)



Three Months Ended Six Months Ended

June 30, June 30,

USAT Logistics Segment 2020 2019 2020 2019

(in thousands)

Operating revenue $ 35,817 $ 37,553 $ 69,589 $ 76,987

Intersegment activity 2,921 2,022 4,973 4,038

Operating revenue (before 38,738 39,575 74,562 81,025 intersegment eliminations)

Less: fuel surcharge (2,618 ) (4,087 ) (5,695 ) (7,929 ) revenue

Base revenue $ 36,120 $ 35,488 $ 68,867 $ 73,096

Operating expense (before $ 38,914 $ 38,429 $ 75,363 $ 77,566 intersegment eliminations)

Adjusted for:

Severance costs included insalaries, wages, and (4 ) - (4 ) - employee benefits

Fuel surcharge revenue (2,618 ) (4,087 ) (5,695 ) (7,929 )

Adjusted operating expense $ 36,292 $ 34,342 $ 69,664 $ 69,637

Operating (loss) income $ (176 ) $ 1,146 $ (801 ) $ 3,459

Adjusted operating (loss) $ (172 ) $ 1,146 $ (797 ) $ 3,459 income^(a)

Operating ratio 100.5 % 97.1 % 101.1 % 95.7 %

Adjusted operating ratio^ 100.5 % 96.8 % 101.2 % 95.3 %(a)

USA TRUCK INC.CONDENSED CONSOLIDATED BALANCE SHEETS(UNAUDITED)



Assets June 30, December 31, 2020 2019

Current assets: (in thousands, except share data)

Cash $ 92 $ 97

Accounts receivable, net of allowance for 53,362 49,853 doubtful accounts of $810 and $369, respectively

Other receivables 7,947 5,408

Inventories 786 769

Assets held for sale 1,082 2,542

Prepaid expenses and other current assets 6,666 7,855

Total current assets 69,935 66,524

Property and equipment:

Land and structures 33,474 33,077

Revenue equipment 320,623 309,573

Service, office and other equipment 31,077 30,235

Property and equipment, at cost 385,174 372,885

Accumulated depreciation and amortization (142,414 ) (124,216 )

Property and equipment, net 242,760 248,669

Operating leases - right of use assets 7,866 11,775

Goodwill 5,231 5,231

Other intangibles, net 15,773 16,453

Other assets 1,209 2,058

Total assets $ 342,774 $ 350,710

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ 24,197 $ 29,421

Current portion of insurance and claims accruals 9,702 12,466

Accrued expenses 8,338 6,518

Current finance lease obligations 25,928 30,779

Current operating lease obligations 3,028 6,050

Long-term debt, current maturities 3,064 6,165

Total current liabilities 74,257 91,399

Other long-term liabilities 1,629 80

Long-term debt, less current maturities 92,158 83,349

Long-term finance lease obligations 60,363 58,397

Long-term operating lease obligations 4,966 5,812

Deferred income taxes 24,824 24,017

Insurance and claims accruals, less current 9,071 9,445 portion

Total liabilities 267,268 272,499

Stockholders' equity:

Preferred Stock, $0.01 par value; 1,000,000 - - shares authorized; none issued

Common Stock, $0.01 par value; 30,000,000 sharesauthorized; issued 12,036,279 shares, and 120 120 11,987,572 shares, respectively

Additional paid-in capital 59,565 63,238

Retained earnings 70,287 73,769

Less treasury stock, at cost (3,273,902 shares, (54,466 ) (58,916 )and 3,434,231 shares, respectively)

Total stockholders' equity 75,506 78,211

Total liabilities and stockholders' equity $ 342,774 $ 350,710



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CONTACT: Zachary King, SVP & CFO (479) 471-2694 zachary.king@usa-truck.com

CONTACT: Michael Stephens, Investor Relations (479) 471-2610 michael.stephens@usa-truck.com