USA Truck Reports First Profitable Quarter Since 2011

by Marty Cook  on Thursday, Jul. 31, 2014 8:59 am  

CEO John Simone said USA Truck is seeing progress "in virtually every area of our business."

USA Truck of Van Buren reported its first profitable quarter since 2011 on Thursday.

USA Truck CEO John Simone called the achievement "an important milestone" for the company, which has posted five consecutive years of losses. USA Truck reported net income of $700,000, or 7 cents per share, in the second quarter of 2014 compared to a loss of $1.4 million in the same quarter a year ago.

"While continuing the work of implementing our turnaround plan, the progress we are making is evident in virtually every area of our business," Simone said in a news release. "Despite the harsh winter that impacted the trucking industry as the year began, our results, on an adjusted basis, for the first six months of 2014 are also positive ..."

USA Truck beat analysts' estimates for earnings and revenue.

Revenue was up to $125 million, an increase of 12 percent from the second quarter of 2013. USA Truck said income would have been higher but the company had $2.2 million in defense costs related to its legal battle with Knight Transportation Inc. of Phoenix, which attempted to buy the company last year.

Without the legal fees, USA Truck said it would have had profit of $2.1 million or 20 cents per share for the quarter.

For the first six months of 2014, USA Truck reported a loss of $900,000 compared to a loss of $3.9 million for the same six-month period of 2013.

Driver shortage continues to hurt the industry, and USA Truck wasn’t immune in the second quarter. The company reported an increased in unseated trucks from 5.6 percent to 8.1 percent from the second quarter of 2013 to the same quarter this year.

 

 

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