USA Truck Inc. of Van Buren on Thursday reported a first-quarter loss of $1.8 million, a decrease from the $1.6 million profit it reported in the same quarter of 2015.
Quarterly revenue was $110.6 million, down from $132.9 million in the first quarter last year. Earnings per share was a loss of 19 cents compared to a positive 16 cents in the same quarter a year ago.
CEO Randy Rogers said the company made “significant structural changes” in its trucking divisions that resulted in $5.3 million in costs. Rogers said the changes included layoffs of 10 percent of its department staff, closing two maintenance facilities, an operations terminal in South Carolina and two branches of its asset-light division, USAT Logistics.
Trucking reported revenue of $75.7 million for the quarter, down from $95.8 million in the same quarter of 2015. USA Truck reported decreases in the number of in-service tractors, miles per week and revenue per tractor per week as the company continues to narrow its network for efficiency.
USAT Logistics reported first-quarter revenue of $34.9 million, down from $37.1 million in the same quarter a year ago.
“We have already made significant structural changes in our trucking operations which, while absolutely necessary to drive long-term growth and shareholder value, are not without some level of short-term disruption and expense, which we experienced during the first quarter of 2016,” Rogers said.
Rogers said the company increased its use of owner-operators in its trucking fleet by 15 percent. Fourteen percent of USA Truck’s trucking capacity is handled by independent contractors.
“We are confident in our ability to make strides in safety/collision, maintenance, network optimization and other areas of efficiency as we work on essential process re-design and optimization this year,” Rogers said. “Our organization is engaged and showing tremendous resolve and commitment to changing the status quo to ensure success. With a new leadership team in place and a highly motivated organization, we expect improvements in our operating ratio and return on invested capital as we progress through the year.”
CFO Michael Borrows said USA Truck bought back 445,432 shares during the first quarter for approximately $7.5 million.
Sign up for Daily E-news
