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press release

April 30, 2020, 6:25 a.m. EDT

U.S. Xpress Enterprises Reports First Quarter 2020 Results and Discusses COVID-19 Impact on Operations

U.S. Xpress Enterprises, Inc. /zigman2/quotes/202703514/composite USX +1.95% (the “Company”) today announced results for the first quarter of 2020 and provided a COVID-19 update.

COVID – 19 Business Update

  • Unwavering focus on employee health and safety for both driving and non-driving team members – over 95% of Company’s corporate office staff began working from home mid-March, with results showing an increase in productivity and efficiency in many departments

  • The Company’s volumes through April remained consistent primarily as result of the Company’s customer mix

  • The Company remains confident in its current liquidity position and does not anticipate material liquidity constraints

Eric Fuller, President and CEO, commented, “The spread of COVID-19 across our nation has dramatically impacted not only how we work but all aspects of our daily lives. In this period of uncertainty, we are committed to keeping our employees safe and our customers’ products moving across the country. U.S. Xpress provides an essential service to our customers and their customers as millions of Americans depend on us to ship their products and keep their store shelves stocked. To ensure we seamlessly maintain our operations, we have transitioned a majority of our office staff to a work from home environment, distributed protective gear to our drivers and shop personnel and designed shipper and receiver interaction processes for our drivers. We have also implemented procedures to ensure we are effectively communicating with our employees to keep them safe and informed. I am extremely proud of our entire organization and thankful for their tireless efforts during such an extraordinary time.”

Operational Update

Given the rapid on-set and spread of COVID-19, U.S. Xpress moved quickly to enable the Company’s office employees to work remotely starting March 16 [th] and during that week transitioned more than 1,400 employees, or over 95% of the Company’s corporate office staff, to a work from home environment. Since then, non-remote personnel have largely been limited to employees working on-site at customer locations and shop technicians working in Company facilities, all of whom are following strict protocols to ensure their safety.

The Company has instituted policies to facilitate effective communication in this environment. For non-driving employees, the Company ensures multiple daily contacts with direct reports and has developed KPIs, facilitated by U.S. Xpress’ digital capabilities, to measure the Company’s operational effectiveness. The Company has also implemented new processes and support staff to ensure employees have access to necessary medical services as well as ensuring an adequate supply of safety equipment, including masks and gloves, for the Company’s workers who are on the frontlines, and providing regular cleaning and disinfecting of Company facilities. U.S. Xpress’ employees are playing an essential role in the country’s fight against COVID-19 as they work to keep critical supplies moving and store shelves stocked. The Company is working daily with their drivers to keep them informed and safe in this rapidly changing environment.

To further ensure the safety of U.S. Xpress drivers’ and staff, the Company has instituted mandatory temperature checks for drivers prior to entering Company facilities. For new drivers, the Company has leveraged its new driver training program as well as created a virtual orientation program that allows drivers to complete all of their work remotely and, therefore, avoiding a majority of classroom work. This is an attractive innovation for drivers and has positively contributed to the Company’s recruiting efforts.

The investments in technology that U.S. Xpress has implemented have enabled the Company to quickly adapt to this new environment. The Company has digitized and automated many processes which has allowed its employees to successfully work remotely. These investments have also enabled the Company’s workforce to maintain their efficiency and, in some cases, drive improved output and customer satisfaction. While unintended, this is a direct result of the Company’s digital initiatives including the ‘frictionless order’ and represents opportunities for further efficiency gains once the virus is successfully eradicated.

The active support of the entire team enabled U.S. Xpress to handle a sharp increase in demand from the Company’s grocery, consumer products, and home improvement and hardware customers during the early days of the shelter in place orders while transitioning capacity from other customers where volumes declined. Working largely remotely, the Company continued to accept, plan, and deliver over 30,000 loads per week during March, and U.S. Xpress proved the ability to staff and operate effectively using the Company’s technology and active management framework.

Market and Customer Update

U.S. Xpress has a strong and diversified customer base with the Company’s top 25 customers representing 71% of 2019 revenues. At the peak of the COVID-19 crisis, customers representing 96% of the Company’s pre-COVID-19 revenues remained operational, and incremental volumes from those customers more than made up for the non-operational customers.

U.S. Xpress has a strong customer mix of Grocery, E-Commerce, Consumer Products, Discount Retail, and Home Improvement, with little exposure to automotive, manufacturing, and restaurants. The Company has not seen a drop in total load volume to date through April; however, the Company has experienced a sequential decline in spot rates compared with the first quarter of 2020.

Liquidity and Capital Resources

Due to uncertainties regarding the depth and duration of the economic impact of the COVID-19 crisis, as well as the impact of re-starting various components of the global supply chain at different times, U.S. Xpress has considered many different scenarios, including those that would entail a significant multi-quarter degradation of business conditions across the Company’s customer base. Based on this analysis, the Company is managing the business to prudently control expenses and to ensure excess liquidity even if operating and financial results are significantly and negatively impacted for an extended period.

During the quarter, the Company proactively closed on a new five-year $250 million credit facility. The former facility was fully paid off with proceeds from the new facility and contemporaneous real estate and equipment financings. The new facility lowers the Company’s interest rate while increasing its flexibility. The new facility has a single covenant which is a fixed charge coverage, which is tested only if available borrowing falls below a threshold amount which is less than the greater of $20 million or 10% of the facility. Available credit under the facility is the lesser of the facility size or a borrowing base related to eligible accounts, equipment, and real estate.

At the end of the first quarter 2020, the Company had $96.3 million of liquidity (defined as cash plus availability under the Company’s revolving credit facility), $438.5 million of net debt (defined as long-term debt, including current maturities, less cash balances), and $222.8 million of total stockholders' equity. The Company does not anticipate material liquidity constraints or any issues with its ongoing ability to remain in compliance with its revolving credit facility.

The Company continues to evaluate its planned capital expenditures and now estimates 2020 net capital expenditures to approximate $100 to $120 million for the full year of 2020, which includes an approximate $20 million transaction that carried over from the 4 [th] quarter of 2019. The reduction from the Company’s prior estimate relates primarily to a deferral of a small quantity of planned tractor replacements combined with a reduction in the planned number of new trailer deliveries for the balance of the year. The Company expects to finance 100% of the acquisition price of new revenue equipment capital expenditures with finance leases or secured equipment notes, with no use of cash or revolver liquidity. The Company will continue to monitor market conditions and may further reduce its planned capital expenditures as prudent. First quarter 2020 net capital expenditures were $67.1 million.

First Quarter 2020 Financial Highlights

  • Operating revenue of $432.6 million compared to $415.4 million in the first quarter of 2019

  • Operating loss of $3.7 million compared to operating income of $12.6 million in the first quarter of 2019

  • Operating ratio of 100.8% compared to 97.0% in the first quarter of 2019

  • Net loss attributable to controlling interest of $9.2 million, or $0.19 per diluted share, included a $2.0 million, or $0.04 per share, loss on sale of an equity method investment compared to Net income attributable to controlling interest of $4.7 million in the first quarter of 2019

  • Adjusted net loss attributable to controlling interest, a non-GAAP measure, of $7.2 million, or $.15 per diluted share, compared to Adjusted net income of $7.3 million in the first quarter of 2019

First Quarter Financial Performance

 
Quarter Ended March 31,
2020   2019
Operating revenue $ 432,568   $ 415,363  
Revenue, excluding fuel surcharge $ 392,820   $ 375,312  
Operating income (loss) $ (3,668 ) $ 12,638  
Adjusted operating income (loss) [1] $ (3,668 ) $ 16,038  
Operating ratio   100.8 %   97.0 %
Adjusted operating ratio [1]   100.9 %   95.7 %
Net income (loss) attributable to controlling interest $ (9,216 ) $ 4,721  
Adjusted net income (loss) attributable to controlling interest [1] $ (7,216 ) $ 7,312  
Earnings (losses) per diluted share $ (0.19 ) $ 0.10  
Adjusted earnings (losses) per diluted share [1] $ (0.15 ) $ 0.15  
[1 ] See GAAP to non-GAAP reconciliation in the schedules following this release

Mr. Fuller noted, “The truckload freight environment has been lackluster for several quarters. Prior to the outbreak of COVID-19, we were seeing early signs of a broad market improvement. After the outbreak, during March, freight volumes and spot market pricing ramped up in response to the demand associated with consumer stockpiling and inventory restocking. While the outlook is uncertain, we believe we are well positioned as less than 4% of our revenues were generated by customers that closed during the peak of the pandemic and we did not experience a drop off in volumes.”

Enterprise Update

Operating revenue was $432.6 million, an increase of $17.2 million compared to the first quarter of 2019. The increase was primarily attributable to increased volumes in the Company’s Truckload division and an increase of $4.3 million in Brokerage revenue.

Operating loss for the first quarter of 2020 was $3.7 million compared to operating income of $12.6 million in the first quarter of 2019. Operating ratio for the first quarter of 2020 was 100.8% compared to 97.0% in the prior year quarter.

Net loss attributable to controlling interest for the first quarter of 2020 was $9.2 million compared to net income attributable to controlling interest of $4.7 million in the prior year quarter. The first quarter of 2020 included a $2.0 million loss on sale of an equity method investment. The Company’s adjusted net loss attributable to controlling interest excluding this charge was $7.2 million or $.15 per share.

Truckload Segment

 
Quarter Ended March 31,
2020 2019
Over-the-road
Average revenue per tractor per week [1] $ 3,463 $ 3,616
Average revenue per mile [1] $ 1.871 $ 1.985
Average revenue miles per tractor per week   1,851   1,822
Average tractors   3,835   3,617
Dedicated
Average revenue per tractor per week [1] $ 4,068 $ 3,961
Average revenue per mile [1] $ 2.376 $ 2.337
Average revenue miles per tractor per week   1,712   1,695
Average tractors   2,703   2,658
Consolidated
Average revenue per tractor per week [1] $ 3,713 $ 3,762
Average revenue per mile [1] $ 2.070 $ 2.128
Average revenue miles per tractor per week   1,794   1,768
Average tractors   6,538   6,275
1 Excluding fuel surcharge revenues
[The above table excludes revenue, miles and tractors for services performed in Mexico.]

Mr. Fuller said, “Our Dedicated division continued to perform very well in the first quarter having delivered its fourth consecutive quarter of record productivity. We were pleased that average revenue per tractor per week remained above $4,000, while we grew the truck count in this division by 1.7% year over year. The execution in Dedicated continues to be outstanding and we will continue to grow the business over time as attractive opportunities arise.”

In the Over-the-Road division, the persistent oversupply of tractors relative to market demand continued to pressure spot pricing lower by more than 10% compared to the prior year quarter. Contract revenue per mile trended negative year over year by approximately 3.7%. Average revenue per tractor per week declined 4.2% compared with the first quarter of 2019. Average revenue per mile decreased 5.7% compared with the 2019 quarter, while average revenue miles per tractor per week increased 1.6%.

The Dedicated division’s average revenue per tractor per week increased $107 per tractor per week, or 2.7% compared to the first quarter of 2019 on a 1.7% increase in average revenue per mile and higher miles per tractor. The Company continued to see consistent results in its Dedicated division. The fluctuations in volume in the general freight market and in specific industries have not negatively impacted the volumes of the Company’s major Dedicated accounts, which are concentrated in the discount retail and grocery market sectors.

Brokerage Segment

 
Quarter Ended March 31,
2020   2019
Brokerage revenue $ 50,476   $ 46,244  
Gross margin %   3.7 %   17.5 %
Load Count   43,493     33,819  
 

The Brokerage segment continues to provide additional selectivity for the Company’s assets to optimize yield while at the same time offering more capacity solutions to customers. Brokerage segment revenue increased to $50.5 million in the first quarter of 2020 compared to $46.2 million in the first quarter of 2019, primarily as a result of increased load count partially offset by decreased revenue per load. Brokerage operating loss was $4.9 million in the first quarter of 2020 as compared to operating income of $2.8 million in the year ago quarter.

Outlook

Due to the economic uncertainty associated with COVID-19 and the associated impact on shippers, consumers, competitors, supply chains, financial markets, and the Company’s employees, U.S. Xpress is not offering guidance regarding a range of expected earnings per share or similar measures for future quarters. However, the Company does expect to have sufficient sources of liquidity to fund its operations through 2020 and beyond even under an extended economic downturn.

Conference Call

The Company will hold a conference call to discuss its first quarter results at 8:30 a.m. (Eastern Time) on April 30, 2020. The conference call can be accessed live over the by phone dialing 1-855-327-6837 or, for international callers, 1-631-891-4304 and requesting to be joined to the U.S. Xpress First Quarter 2020 Earnings Conference Call. A replay will be available starting at 11:30 a.m. (Eastern Time) on April 30, 2020, and can be accessed by dialing 1-844-512-2921 or, for international callers, 1-412-317-6671. The passcode for the replay is 10009315. The replay will be available until 11:59 p.m. (Eastern Time) on May 7, 2020.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of the Company’s website at investor.usxpress.com. The online replay will remain available for a limited time beginning immediately following the call. Supplementary information for the conference call will also be available on this website.

(1) Non-GAAP Financial Measures

In addition to our net income determined in accordance with U.S. generally accepted accounting principles (‘‘GAAP’’), we evaluate operating performance using certain non-GAAP measures, including Adjusted Operating Ratio, Adjusted Operating Income, Adjusted Net Income Attributable to Controlling Interest, and Adjusted EPS (on a consolidated and, as applicable, segment basis). Management believes the use of non-GAAP measures assists investors and securities analysts in understanding the ongoing operating performance of our business by allowing more effective comparison between periods. Further, management uses non-GAAP Adjusted Operating Ratio, Adjusted Operating Income, Adjusted Net Income Attributable to Controlling Interest, and Adjusted EPS measures on a supplemental basis to remove items that may not be an indicator of performance from period-to-period. The non-GAAP information provided is used by our management and may not be comparable to similar measures disclosed by other companies. The non-GAAP measures used herein have limitations as analytical tools and should not be considered measures of income generated by our business or discretionary cash available to us to invest in the growth of our business. You should not consider the non-GAAP measures used herein in isolation or as substitutes for analysis of our results as reported under GAAP. Management compensates for these limitations by relying primarily on GAAP results and using non-GAAP financial measures on a supplemental basis.

Pursuant to the requirements of Regulation G and Regulation S-K, we have provided reconciliations of Adjusted Operating Ratio, Adjusted Operating Income, Adjusted Net Income Attributable to Controlling Interest, and Adjusted EPS to the most comparable GAAP financial measures at the end of this press release.

About U.S. Xpress Enterprises

Founded in 1985, U.S. Xpress Enterprises, Inc. is the nation’s fifth largest asset-based truckload carrier by revenue, providing services primarily throughout the United States. We offer customers a broad portfolio of services using our own truckload fleet and third-party carriers through our non-asset-based truck brokerage network. Our modern fleet of tractors is backed up by a team of committed professionals whose focus lies squarely on meeting the needs of our customers and our drivers.

Forward-Looking Statements

This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as "expects," "estimates," "projects," "believes," "anticipates," "plans," "intends," “outlook,” “strategy,” “optimistic,” “will,” “could,” “should,” “may,” “focus,” “seek,” “potential,” “continue,” “goal,” “target,” “objective,” derivations thereof, and similar terms and phrases. In this press release, such statements may include, but are not limited to, statements in the "Outlook" section, statements regarding the freight environment, expected margins including operating ratio or adjusted operating ratio, the expected impact of our driver, frictionless order and other initiatives, and any other statements concerning: any projections of earnings, revenues, cash flows, capital expenditures, compliance with financial covenants, or other financial items; any statement of plans, strategies, or objectives for future operations; any statements regarding future economic or industry conditions or performance; any statements regarding our responses to COVID-19 and the associated economic conditions; and any statements of belief and any statements of assumptions underlying any of the foregoing. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those in the forward-looking statements: general economic conditions, including inflation and consumer spending; political conditions and regulations, including future changes thereto; changes in tax laws or in their interpretations and changes in tax rates; future insurance and claims experience, including adverse changes in claims experience and loss development factors, or additional changes in management's estimates of liability based upon such experience and development factors that cause our expectations of insurance and claims expense to be inaccurate or otherwise impacts our results; impact of pending or future legal proceedings; future market for used revenue equipment and real estate; future revenue equipment prices; future capital expenditures, including equipment purchasing and leasing plans and equipment turnover (including expected trade-ins); fleet age; future depreciation and amortization; changes in management’s estimates of the need for new tractors and trailers; future ability to generate sufficient cash from operations and obtain financing on favorable terms to meet our significant ongoing capital requirements; our ability to maintain compliance with the provisions of our credit agreement; freight environment, including freight demand, rates, capacity, and volumes; future asset utilization; loss of one or more of our major customers; our ability to renew dedicated service offering contracts on the terms and schedule we expect; surplus inventories, recessionary economic cycles, and downturns in customers' business cycles; strikes, work slowdowns, or work stoppages at the Company, customers, ports, or other shipping related facilities; increases or rapid fluctuations in fuel prices, as well as fluctuations in surcharge collection, including, but not limited to, changes in customer fuel surcharge policies and increases in fuel surcharge bases by customers; interest rates, fuel taxes, tolls, and license and registration fees; increases in compensation for and difficulty in attracting and retaining qualified professional drivers and independent contractors; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, intermodal, and brokerage (including digital brokerage) competitors; regulatory requirements that increase costs, decrease efficiency, or reduce the availability of drivers, including revised hours-of-service requirements for drivers and the Federal Motor Carrier Safety Administration’s Compliance, Safety, Accountability program that implemented new driver standards and modified the methodology for determining a carrier’s Department of Transportation safety rating; future safety performance; our ability to reduce, or control increases in, operating costs; future third-party service provider relationships and availability; execution of the Company’s current business strategy or changes in the Company’s business strategy; the ability of the Company’s infrastructure to support future organic or inorganic growth; our ability to identify acceptable acquisition candidates, consummate acquisitions, and integrate acquired operations; our ability to adapt to changing market conditions and technologies, including the future use of autonomous tractors; disruptions to our information technology; the cost of and our ability to effectively and efficiently implement technology initiatives; costs, diversion of management’s attention, and potential payments made in connection with the multiple class action lawsuits a stockholder derivative lawsuit arising out of our IPO; changes in methods of determining LIBOR or replacement of LIBOR; credit, reputational and relationship risks of certain of our current and former equity investments; risks arising from our Mexican operations; our ability to maintain effective internal controls without material weaknesses, as well as remediate the existing material weakness; and the impact of the recent coronavirus outbreak or other similar outbreaks Readers should review and consider these factors along with the various disclosures by the Company in its press releases, stockholder reports, and filings with the Securities and Exchange Commission. We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information.

 
Condensed Consolidated Income Statements (unaudited)
Quarter Ended March 31,
(in thousands, except per share data) 2020   2019
Operating Revenue:
Revenue, excluding fuel surcharge $ 392,820   $ 375,312
Fuel surcharge   39,748     40,051
Total operating revenue   432,568     415,363
Operating Expenses:
Salaries, wages and benefits   135,394     124,563
Fuel and fuel taxes   40,323     46,904
Vehicle rents   21,877     18,976
Depreciation and amortization, net of (gain) loss   25,803     23,062
Purchased transportation   129,754     114,005
Operating expense and supplies   29,674     27,945
Insurance premiums and claims   26,023     24,353
Operating taxes and licenses   3,677     3,173
Communications and utilities   2,452     2,265
General and other operating   21,259     17,479
Total operating expenses   436,236     402,725
Operating Income (Loss)   (3,668 )   12,638
Other Expenses (Income):
Interest Expense, net   5,421     5,603
Equity in loss of affiliated companies   -     89
Other, net   2,000     26
  7,421     5,718
Income (Loss) Before Income Taxes   (11,089 )   6,920
Income Tax Provision (Benefit)   (1,857 )   1,901
Net Income (Loss)   (9,232 )   5,019
Net Income (Loss) attributable to non-controlling interest   (16 )   298
Net Income (Loss) attributable to controlling interest $ (9,216 ) $ 4,721
 
Income (Loss) Per Share
Basic earnings (losses) per share $ (0.19 ) $ 0.10
Basic weighted average shares outstanding   49,217     48,394
Diluted earnings (losses) per share $ (0.19 ) $ 0.10
Diluted weighted average shares outstanding   49,217     49,391
 
 
Condensed Consolidated Balance Sheets (unaudited)
March 31,   December 31,
(in thousands) 2020   2019
Assets
Current assets:
Cash and cash equivalents $ 5,626   $ 5,687  
Customer receivables, net of allowance of $36 and $63, respectively   186,009     183,706  
Other receivables   16,040     15,253  
Prepaid insurance and licenses   17,110     11,326  
Operating supplies   7,344     7,193  
Assets held for sale   15,570     17,732  
Other current assets   15,945     15,831  
Total current assets   263,644     256,728  
Property and equipment, at cost   934,871     880,101  
Less accumulated depreciation and amortization   (400,452 )   (388,318 )
Net property and equipment   534,419     491,783  
Other assets:
Operating lease right-of-use assets   280,106     276,618  
Goodwill   57,708     57,708  
Intangible assets, net   26,789     27,214  
Other   30,865     30,058  
Total other assets   395,468     391,598  
Total assets $ 1,193,531   $ 1,140,109  
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 79,012   $ 68,918  
Book overdraft   3,689     1,313  
Accrued wages and benefits   25,955     24,110  
Claims and insurance accruals   48,734     51,910  
Other accrued liabilities   6,431     9,127  
Current portion of operating leases   68,021     69,866  
Current maturities of long-term debt and finance leases   81,700     80,247  
Total current liabilities   313,542     305,491  
Long-term debt and finance leases, net of current maturities   362,722     315,797  
Less debt issuance costs   (324 )   (1,223 )
Net long-term debt and finance leases   362,398     314,574  
Deferred income taxes   18,810     20,692  
Other long-term liabilities   4,852     5,249  
Claims and insurance accruals, long-term   59,466     56,910  
Noncurrent operating lease liability   211,694     206,357  
Commitments and contingencies   -     -  
Stockholders' Equity:
Common Stock   493     490  
Additional paid-in capital   251,862     250,700  
Accumulated deficit   (30,198 )   (20,982 )
Stockholders' equity   222,157     230,208  
Noncontrolling interest   612     628  
Total stockholders' equity   222,769     230,836  
Total liabilities and stockholders' equity $ 1,193,531   $ 1,140,109  
 
 
Condensed Consolidated Cash Flow Statements (unaudited)
Quarter Ended March 31,
(in thousands) 2020   2019
Operating activities
Net income $ (9,232 ) $ 5,019  
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income tax provision   (1,882 )   1,407  
Depreciation and amortization   22,597     21,833  
Losses on sale of property and equipment   3,206     1,229  
Share based compensation   836     856  
Other   2,652     308  
Changes in operating assets and liabilities
Receivables   (3,183 )   3,560  
Prepaid insurance and licenses   (5,784 )   (4,761 )
Operating supplies   (151 )   (285 )
Other assets   386     383  
Accounts payable and other accrued liabilities   8,788     (2,844 )
Accrued wages and benefits   1,845     (1,226 )
Net cash provided by (used in) operating activities   20,078     25,479  
Investing activities
Payments for purchases of property and equipment   (76,761 )   (36,604 )
Proceeds from sales of property and equipment   9,650     13,115  
Proceeds from sale of subsidiary, net of cash   -     (9,002 )
Other   (2,000 )   -  
Net cash used in investing activities   (69,111 )   (32,491 )
Financing activities
Borrowings under lines of credit   147,654     -  
Payments under lines of credit   (70,654 )   -  
Borrowings under long-term debt   142,644     14,355  
Payments of long-term debt and finance leases   (171,266 )   (31,128 )
Payments of financing costs   (1,255 )   -  
Tax withholding related to net share settlement of restricted stock awards   (91 )   (39 )
Payments of long-term consideration for business acquisition   (1,000 )   (990 )
Proceeds from long-term consideration for sale of subsidiary   144     -  
Proceeds from issuance of common stock under ESPP   420     -  
Book overdraft   2,376     5,233  
Net cash provided by (used in) financing activities   48,972     (12,569 )
Change in cash balances of assets held for sale   -     11,784  
Net change in cash and cash equivalents   (61 )   (7,797 )
Cash and cash equivalents
Beginning of year   5,687     9,892  
End of period $ 5,626   $ 2,095  
 
 
Key Operating Factors & Truckload Statistics (unaudited)
 
Quarter Ended March 31,   %
2020   2019   Change
Operating revenue:
Truckload [1] $ 342,344   $ 329,068   4.0 %
Fuel surcharge   39,748     40,051   -0.8 %
Brokerage   50,476     46,244   9.2 %
Total operating revenue $ 432,568   $ 415,363   4.1 %
 
Operating income (loss):
Truckload $ 1,200   $ 9,842   -87.8 %
Brokerage $ (4,868 ) $ 2,796   -274.1 %
$ (3,668 ) $ 12,638   -129.0 %
 
Operating ratio:
Operating ratio   100.8 %   97.0 % 4.0 %
Adjusted operating ratio [2]   100.9 %   95.7 % 5.4 %
 
Truckload operating ratio   99.7 %   97.3 % 2.4 %
Truckload adjusted operating ratio [2]   99.6 %   96.0 % 3.8 %
Brokerage operating ratio   109.6 %   94.0 % 16.7 %
 
Truckload Statistics:3
Revenue per mile [1] $ 2.070   $ 2.128   -2.7 %
 
Average tractors -
Company owned   4,747     4,679   1.5 %
Independent contractors   1,791     1,596   12.2 %
Total average tractors   6,538     6,275   4.2 %
 
Average revenue miles per tractor per week   1,794     1,768   1.5 %
 
Average revenue per tractor per week [1] $ 3,713   $ 3,762   -1.3 %
 
Total miles   169,187     156,984   7.8 %
 
Total company miles   118,126     113,781   3.8 %
 
Total independent contractor miles   51,061     43,203   18.2 %
 
Independent contractor fuel surcharge   11,211     10,480   7.0 %
 
1 Excluding fuel surcharge revenues
2 See GAAP to non-GAAP reconciliation in the schedules following this release
3 Excludes revenue, miles and tractors for services performed in Mexico.
 
Non-GAAP Reconciliation - Adjusted Operating Income and Adjusted Operating Ratio (unaudited)
 
Quarter Ended March 31,
(in thousands) 2020 2019
GAAP Presentation:
Total revenue $ 432,568   $ 415,363  
Total operating expenses   (436,236 )   (402,725 )
Operating income (loss) $ (3,668 ) $ 12,638  
Operating ratio   100.8 %   97.0 %
 
Non-GAAP Presentation:
Total revenue $ 432,568   $ 415,363  
Fuel surcharge   (39,748 )   (40,051 )
Revenue, excluding fuel surcharge   392,820     375,312  
 
Total operating expenses   436,236     402,725  
Adjusted for:
Fuel surcharge   (39,748 )   (40,051 )
Mexico transition costs [1]   -     (3,400 )
Adjusted operating expenses   396,488     359,274  
Adjusted operating income (loss) $ (3,668 ) $ 16,038  
Adjusted operating ratio   100.9 %   95.7 %
 
Non-GAAP Reconciliation - Truckload Adjusted Operating Income and Adjusted Operating Ratio (unaudited)
 
Quarter Ended March 31,
(in thousands) 2020 2019
Truckload GAAP Presentation:
Truckload revenue $ 382,092   $ 369,119  
Truckload operating expenses   (380,892 )   (359,277 )
Truckload operating income $ 1,200   $ 9,842  
Truckload operating ratio   99.7 %   97.3 %
 
Truckload Non-GAAP Presentation:
Truckload revenue $ 382,092   $ 369,119  
Fuel surcharge   (39,748 )   (40,051 )
Revenue, excluding fuel surcharge   342,344     329,068  
 
Truckload operating expenses   380,892     359,277  
Adjusted for:
Fuel surcharge   (39,748 )   (40,051 )
Mexico transition costs [1]   -     (3,400 )
Truckload adjusted operating expenses   341,144     315,826  
Truckload adjusted operating income $ 1,200   $ 13,242  
Truckload adjusted operating ratio   99.6 %   96.0 %
[1 ] During the first quarter, we incurred expenses related to the exit of our Mexico business totaling $3,400.
 
 
Non-GAAP Reconciliation - Adjusted Net Income and EPS (unaudited)
 
Quarter Ended March 31,
(in thousands, except per share data) 2020 2019
GAAP: Net income attributable to controlling interest $ (9,216 ) $ 4,721
Adjusted for:
Income tax provision (benefit)   (1,857 )   1,901
Income (loss) before income taxes attributable to controlling interest $ (11,073 ) $ 6,622
Loss on sale of equity method investments [1]   2,000     -
Mexico transition costs [2]   -     3,400
Adjusted income (loss) before income taxes   (9,073 )   10,022
Adjusted income tax provision (benefit)   (1,857 )   2,710
Non-GAAP: Adjusted net income (loss) attributable to controlling interest $ (7,216 ) $ 7,312
 
GAAP: Earnings (losses) per diluted share $ (0.19 ) $ 0.10
Adjusted for:
Income tax provision (benefit) attributable to controlling interest   (0.04 )   0.03
Income (loss) before income taxes attributable to controlling interest $ (0.23 ) $ 0.13
Loss on sale of equity method investments [1]   0.04     -
Mexico transition costs [2]   -     0.07
Adjusted income (loss) before income taxes   (0.19 )   0.20
Adjusted income tax provision (benefit)   (0.04 )   0.05
Non-GAAP: Adjusted net income (loss) attributable to controlling interest   (0.15 ) $ 0.15
[1] During the first quarter of 2020, we incurred loss on sale related to a equity method investment in a former wholly owned subsidiary
[2 ] During the first quarter, we incurred expenses related to the exit of our Mexico business totaling $3,400.
 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20200430005174/en/

SOURCE: U.S. Xpress Enterprises, Inc.

U.S. Xpress Enterprises, Inc.
Brian Baubach
Sr. Vice President Corporate Finance and Investor Relations
investors@usxpress.com

Copyright Business Wire 2020

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US : U.S.: NYSE
$ 7.33
+0.14 +1.95%
Volume: 404,129
Jan. 15, 2021 4:00p
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Dividend Yield
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