USA Truck Exceeds Q4 Forecast, Doubles Profits Over Last Year

USA Truck reported a strong 2021 fourth quarter on Thursday that exceeded Wall Street expectations.

Trucking and logistics company Van Buren saw strong demand in a strong freight and pricing market that doubled its net profit to $12.2 million in the three months ended Dec. 31, per compared to last year.

Revenue increased 26.5% to $200.9 million. Excluding fuel surcharges, it was $180.7 million.

James Reed, President and CEO of USA Truck, attributed the record results to recent transformation within the company and continued execution of key objectives.

“The fourth quarter and full year 2021 represents our highest total revenue and adjusted earnings per share in company history,” Reed said in a written statement.

Wall Street analysts had expected earnings to fall about 71 cents per share, according to Yahoo! Financial consensus, roughly in line with what ArcBest did this time last year. Instead, ArcBest had adjusted earnings per share of $1.38.

The company said fourth quarter earnings were positively impacted by an IRS deduction clarification that resulted in an increase of 6 cents per share. USA Truck’s operating ratio improved to 91.8% from 93.9% last year.

“During the fourth quarter, continued execution of our strategic initiatives, operating strategy, and strong freight and pricing markets resulted in an improved Trucking adjusted operating ratio of 440 points. year-over-year basis at 88.7%,” Reed said.

The company’s trucking segment reported higher earnings and revenue in the quarter compared to a year ago. Trucking revenues increased 14.6% to $15.2 million. Trucking revenues doubled to $11.6 million, reflecting an operating ratio of 90.3%, or an adjusted rate of 88.7%.

Base revenue per tractor per week increased by $443 or 11.5%.

Base revenue per loaded mile increased by 50 cents or 19.8%.

The company’s logistics segment reported higher revenue and revenue in the fourth quarter compared to the prior year. Logistics revenue increased 44.9% to $94.6 million. Logistics revenue increased 44.1% to $4.9 million, reflecting an unchanged operating ratio of 94.8%.

Gross margin in dollars increased by 26.9% to $11.9 million over the prior year.

Revenue per load increased 17.4%, or $349 per load year over year. It increased by 5.9% or $132 per load compared to the third quarter.

The number of charges increased by 7,640, or 23.4% year-over-year.

For the full year, USA Truck reported strong revenue and revenue gains compared to 2020. Revenue increased 28.9% to $710.4 million. Revenue increased more than fivefold to $24.8 million in the 12 months ended Dec. 31.

At year-end, total debt and lease liabilities were $144.8 million, including $124.1 million available to borrow on credit.

USA Truck on Monday entered into a $130 million asset-backed credit facility that provides more predictable equipment valuation and increased borrowing capacity, as well as equipment financing agreements that guarantee interest rates. fixed interest at low cost.

The company is scheduled to hold a conference call with investors at 8 a.m. today to discuss fourth quarter results. The call is available online at usa-truck.com or by dialing 1-888-506-0062, passcode 114576.

USA Truck shares rose less than 1%, or 7 cents, to close at $19.80 on the Nasdaq exchange. The report was released after the close of trading.

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