USA Truck Inc. on Thursday reported a second-quarter profit of $1,000, a fraction of the trucking company's reported profit from a year ago.
Revenue for the three months that ended June 30 fell to $133 million, a 1% decline from last year's $135 million. Revenue, excluding fuel surcharges, was $116.7 million.
Net income plummeted to $1,000 from $2.5 million profit posted for the same quarter a year ago.
In Thursday's quarterly earnings report, James Reed, USA Truck's president and chief executive officer, said the quarter was a challenge because of a softer freight environment, declining spot rates and unrealized bid awards.
"Even in the face of these challenges, the company remained profitable," Reed said in his remarks. "We believe that staying profitable in this market demonstrates that the USA Truck self-help story is working to improve results."
The Van Buren trucking company's results fell way below Wall Street's estimates for the quarter, a Thomson Reuters consensus shows. Instead of the estimated 23 cents per share earnings average, down from last year's 31 cents per share, USA Truck reported less than a penny per share.
Some of the losses stemmed from the recent flooding of the Arkansas River. This, along with charges related to the impairment of tractors held for sale and accelerated compensation expenses for its former chairman, accounted for about $600,000, or 5 cents a share, the company reported.
Declining spot rates for freight also put pressure on USA Truck's logistics segment. Operating revenue fell to $39 million, a 22% drop from $50 million a year ago. Operating income fell to $1 million, down from $2 million a year ago.
USA Truck's trucking segment saw revenue growth for the quarter. USA Truck reported operating revenue of $96 million, a 13% climb from last year's $85 million. However, operating income fell to $837,000, a 58% drop from $2 million a year ago.
Shares of USA Truck fell 12 cents, or 1.2%, to close Thursday at $9.66. The second-quarter earnings report was released after the stock market closed. The shares have dropped about 35% since the beginning of the year.
USA Truck will host a conference call with analysts today at 8 a.m. to discuss its earnings, the trucking firm told investors. The call can be accessed by dialing (844) 824-3828 or online at the Events & Presentations page at usa-truck.com.
Business on 07/26/2019