USA Truck Inc. on Thursday posted first-quarter gains despite soft demand and struggles with winter weather.
Revenue rose to $134 million for the three months that ended March 31, compared with $125 million reported in last year's first quarter.
Net income rose to $1.5 million, or 18 cents per share, from $1 million, or 13 cents per share, year over year.
Despite a challenging period, the earnings report detailed the company's second-consecutive quarter of profitability.
Low spot rates for freight, relatively weak demand, an "unusually difficult weather season" and a shortage of drivers were all head winds for USA Truck in the quarter, James Reed, USA Truck's president and chief executive officer, said in prepared remarks.
"It was a tough quarter, but we persevered and produced a result that demonstrates progress toward becoming one of the best performing companies in our sector," Reed said.
The Van Buren company's revenue growth came largely from its trucking segment, which accounted for $95 million, compared with $79 million posted for the first quarter of 2018.
The company's USAT Logistics segment faltered a bit because of unexpected spot rate declines, fuel expenses and other costs. The company posted logistics revenue of $39 million, down from $46 million a year ago.
Higher costs were also a hurdle. The trucker took on total operating expenses of $130 million, up from $123 million reported in last year's first quarter. Costs related to salaries, wages and employee benefits rose over 12 percent, or almost $4 million, to $36 million year over year.
Expenses related to insurance and claims, operating taxes and licenses, fuel and depreciation and amortization were also higher compared with 2018's first quarter.
Despite revenue and income gains, the results fell below expectations. Analysts for Yahoo Finance predicted earnings of 21 cents per share.
Shares of USA Truck fell 34 cents, or 2 percent, to close Thursday at $15.68. The shares have traded as high as $27.59 and as low as $13.82 the past 52 weeks. The earnings report was released after the market closed.
USA Truck has scheduled a conference call at 8 a.m. today to discuss the results. It can be accessed online or by dialing (844) 824-3828 .
Business on 04/26/2019