USA Truck will undergo another change to its executive staff after Michael Borrows resigned as chief financial officer.
The Van Buren-based trucking and transportation company announced Borrows' departure Friday in a filing with the U.S. Securities and Exchange Commission. The exact reason for his resignation was not revealed, but the filing said it was not related to any "accounting, internal controls, or financial reporting matter."
"On behalf of the entire company, we would like to thank Michael for his service to the company," Chief Executive Officer Randy Rogers said in a news release. "We wish him all the best in his future endeavors. The board will commence a process to identify a successor to Mr. Borrows."
USA Truck said Rogers was not available for further comment Friday, and Borrows did not return a message seeking comment. The company announced the resignation Friday morning, and shares of USA Truck stock fell as much as 7 percent during the day before closing trading at $18.65, down $1.20.
Bob Williams, senior vice president at Simmons First Investment Group Inc. in Little Rock, said the stock's slide was a sign that some may be concerned about the company. But Williams also said the change at USA Truck isn't completely surprising because of the number of other changes that have taken place.
"There's been turnover," Williams said. "They've brought new people onto the board. They brought in a new [chief executive officer] at the first of the year. The new guard is coming in."
The 48-year-old Borrows had been with the company since September 2014, when CEO John Simone hired him as Cliff Beckham's replacement. Borrows came to USA Truck after nearly three years as managing director of Pollen, Inc. Borrows also held leadership roles at Kansas City Southern Railway Co. from 2006 to 2009, and at BNSF Railway from 1996 to 2006..
Borrows earned $607,903 in total compensation in 2015, including a base salary of $225,000.
The USA Truck board approved a base salary increase to $300,000 for 2016, according to a filing with the SEC.
Borrows is the latest executive to leave USA Truck.
Rogers became the company's fourth CEO since 2013 when USA Truck selected him as Tom Glaser's replacement in January. Glaser had been chief operating officer for three months and CEO for three more, taking over day-to-day responsibilities from Simone, who took a leave of absence and later resigned because of lung cancer. Simone died in March.
Glaser and Rogers restructured USA Truck's executive team, beginning with Glaser's hiring of Martin Tewari as president of the company's trucking division and Billy Cartright as vice president for safety and recruiting. Rogers hired Jim Craig as president of the company's brokerage and logistics division, which was recently renamed USAT Logistics.
The new executive team -- Rogers, Tewari, Craig and Borrows -- participated in the company's first-quarter earnings call May 5. USA Truck reported a $1.8 million loss in net income during the first quarter, but said the results were affected by $5.3 million in restructuring costs as the company began to map out its plans under the management team.
"There is no question the transformation is underway at USA Truck," Rogers said during the first-quarter earnings call. "We have not yet been together for an entire quarter, but this team is working very collaboratively and is extremely focused on delivering defined and measurable results."
Business on 05/21/2016