USA Truck profit rises in 2nd quarter

Van Buren-based USA Truck Inc. on Tuesday reported a rise in second-quarter profit, its 11th consecutive quarter of financial improvement as it continues its turnaround plan.

Company executives announced a set of initiatives to shore up profitability and driver retention, including reducing its tractor fleet by 400 and raising take-home pay for drivers.

Net income rose to $2.5 million for the quarter, or 23 cents per diluted share, up $1.7 million from $722,000, or 7 cents per share, in the same quarter of 2014. Operating revenue fell to $133.6 million, down 12.9 percent from $153.3 million in the same quarter a year ago. Base revenue, which excludes fuel surcharges, dropped 6.2 percent, from $125 million last year to $117.2 million in the quarter that ended in June.

“USA Truck continued to deliver profitability in the second quarter,” USA Truck President and CEO Tom Glaser said in a statement. “Pricing and fuel efficiency were better than last year, while other areas still have significant room to improve, including maintenance, risk management and, importantly, driver retention.”

To that end, Glaser said, “we have taken a comprehensive look at our organization to determine where and how to accelerate the pace of improvement and have developed a series of strategic, leadership and tactical actions that are either already underway or to be implemented.”

Those actions include “strict adherence to pricing and operational standards”: “increasing driver take home pay and home time”; “streamlining the size of our tractor fleet by 400 in 2015 through retirement of 800 high-cost tractors while maintaining purchases of new tractors at 400”; “rationalizing fixed costs and SG&A to better align the Company’s overhead” with the net drop of 400 tractors in its fleet; and conducting a comprehensive review of its maintenance facilities to manage expenses.

USA Truck executives will hold a conference call at 8 a.m. Tuesday to discuss its second-quarter results. Those interested in participating in the call may dial (800) 351-6807 and using the access code 541247 or may visit the investors section of the company’s website, www.usa-truck.com

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