Bulletin
Investor Alert

press release

July 28, 2020, 4:16 p.m. EDT

U.S. Xpress Enterprises Reports Second Quarter 2020 Results

U.S. Xpress Enterprises, Inc. /zigman2/quotes/202703514/composite USX +5.19% (the “Company”) today announced results for the second quarter of 2020.

Second Quarter 2020 Financial Highlights

  • Operating revenue of $422.5 million compared to $413.9 million in the second quarter of 2019

  • Operating income of $16.3 million compared to $8.8 million in the second quarter of 2019

  • Operating ratio of 96.1% compared to 97.9% in the second quarter of 2019

  • Adjusted operating ratio [1] , a non-GAAP measure, of 95.9% compared to 97.5% in the second quarter of 2019

  • Net income attributable to controlling interest of $9.5 million, or $0.18 per diluted share, compared to $2.7 million in the second quarter of 2019, or $0.05 per diluted share

Second Quarter Financial Performance

Quarter Ended June 30,   Six Months Ended June 30,
2020 2019   2020 2019
Operating revenue $ 422,477   $ 413,862   $ 855,045   $ 829,225  
Revenue, excluding fuel surcharge $ 393,964   $ 371,184   $ 786,784   $ 746,496  
Operating income $ 16,277   $ 8,787   $ 12,609   $ 21,425  
Adjusted operating income [1] $ 16,277   $ 9,317   $ 12,609   $ 25,355  
Operating ratio   96.1 %   97.9 %   98.5 %   97.4 %
Adjusted operating ratio [1]   95.9 %   97.5 %   98.4 %   96.6 %
Net income attributable to controlling interest $ 9,498   $ 2,672   $ 282   $ 7,393  
Adjusted net income attributable to controlling interest [1] $ 9,498   $ 2,912   $ 2,282   $ 10,182  
Earnings per diluted share $ 0.18   $ 0.05   $ (0.00 ) $ 0.15  
Adjusted earnings per diluted share [1] $ 0.18   $ 0.06   $ 0.04   $ 0.21  

Eric Fuller, President and CEO, commented, “I am very pleased with our second quarter results as we are beginning to see the tangible, financial benefits of our strategic initiatives focused on utilizing technology to improve our processes, accelerate the velocity of our business, improve our customers’ and drivers’ satisfaction, and lower our costs. The approximate 500 basis points of sequential margin improvement we achieved exceeded normal seasonality. The successful launch of our digital fleet, ongoing success in reducing overhead costs, better safety performance, and lower fuel costs more than offset a sequential decrease in revenue per mile in our Over-the-Road division as there continued to be excess tractor capacity relative to freight demand in the market for a majority of the quarter due in part to COVID-19.”

Mr. Fuller continued, “A major digital initiative that we have been working on over the last two years has been the development, launch, and ramp of our digital fleet. This fleet is largely recruited, planned, dispatched, and managed using artificial intelligence and digital platforms. We developed the concept as a hypothesis in 2018 based in part on the business models of the digital freight brokerages. During 2019, we began building our technology leadership and teams to construct the necessary databases, applications, and processes to launch a pilot fleet with a small number of trucks in the fourth quarter of 2019. The test was successful and we expanded the pilot fleet to approximately 100 trucks in the first quarter. Given the positive results of the first quarter pilot we moved to a full production model, scaling the business to approximately 400 trucks in the second quarter of 2020. Phase one of our plan is to convert a total of 900 Over-the-Road solo trucks, with the lowest returns, to our digital platform over the next few quarters. Phase two of our plan will be to potentially convert an additional 1,200 trucks over the next couple of years. While the conversion will not be linear, we expect our margins to expand further.”

Enterprise Update

Operating revenue was $422.5 million, an increase of $8.6 million compared to the second quarter of 2019. The increase was primarily attributable to increased revenues in the Company’s Truckload division of $16.2 million, an increase of $6.6 million in Brokerage revenue, and decreased fuel surcharge revenues of $14.2 million. Excluding the impact of fuel surcharges, second quarter revenue increased $22.8 million to $394.0 million, an increase of 6.1% as compared to the prior year quarter.

Operating income for the second quarter of 2020 was $16.3 million which compares favorably to the $8.8 million in the second quarter of 2019. Operating ratio for the second quarter of 2020 was 96.1% compared to 97.9% in the prior year quarter.

Net income attributable to controlling interest for the second quarter of 2020 was $9.5 million compared to $2.7 million in the prior year quarter. Adjusted net income attributable to controlling interest [1] for the second quarter of 2020 was $9.5 million, compared to $2.9 million in the 2019 quarter. Earnings per diluted share were $0.18 for the second quarter of 2020 and adjusted earnings per diluted share [1] were $0.18.

Truckload Segment

Quarter Ended June 30,   Six Months Ended June 30,
2020 2019   2020 2019
Over the road
Average revenue per tractor per week [*] $ 3,558 $ 3,625 $ 3,511 $ 3,621
Average revenue per mile [*] $ 1.855 $ 1.956 $ 1.863 $ 1.970
Average revenue miles per tractor per week   1,918   1,853   1,884   1,838
Average tractors   3,825   3,611   3,830   3,614
Dedicated
Average revenue per tractor per week [*] $ 4,122 $ 4,018 $ 4,095 $ 3,990
Average revenue per mile [*] $ 2.351 $ 2.355 $ 2.363 $ 2.346
Average revenue miles per tractor per week   1,753   1,706   1,733   1,700
Average tractors   2,739   2,674   2,721   2,666
Consolidated
Average revenue per tractor per week [*] $ 3,793 $ 3,792 $ 3,753 $ 3,777
Average revenue per mile [*] $ 2.051 $ 2.118 $ 2.061 $ 2.123
Average revenue miles per tractor per week   1,849   1,791   1,821   1,779
Average tractors   6,564   6,285   6,551   6,280
* Excluding fuel surcharge revenues

The Truckload segment achieved an operating ratio of 94.6% and an adjusted operating ratio [1] of 94.1% for the second quarter of 2020, a 340 and 350 basis point improvement, respectively, compared to the operating ratio of 98.0% and the adjusted operating ratio [1] of 97.6% achieved in the second quarter of 2019. This improvement was achieved despite a 3.2% decline in average revenue per mile as the Company continued to execute on its digital initiatives while maintaining a focus on reducing fixed and variable costs.

In the Over-the-Road division, the persistent oversupply of tractors relative to market demand continued to pressure spot pricing lower compared to the 2019 quarter. Contract revenue per mile was down year over year by approximately 5%. Average revenue per tractor per week declined 1.8% compared with the second quarter of 2019. Average revenue per mile decreased 5.2% compared with the 2019 quarter.

Mr. Fuller added, “The Over-the-Road division experienced substantial improvement in the second quarter driven by the conversion of an additional 300 of our lowest performing tractors into our digital fleet. This conversion helped drive our OTR utilization up by 3.5%, as compared to the first quarter of 2020, while contributing to a reduction in both our fixed and variable costs.”

The Dedicated division’s average revenue per tractor per week increased $104 per tractor per week, or 2.6% compared to the second quarter of 2019 on relatively flat average revenue per mile and higher miles per tractor. The fluctuations in volume in the general freight market and in specific industries related to COVID-19 have not negatively impacted the volumes of the Company’s major Dedicated accounts, which are concentrated in the discount retail and grocery market sectors.

Mr. Fuller concluded, “Our Dedicated division continued to perform very well in the second quarter having delivered its fifth consecutive quarter of record productivity. Average revenue per tractor per week expanded from the first quarter, to $4,122, while we grew the truck count in this division by 1.3%. I continue to be very pleased with our team’s execution and we remain focused on organically growing the Dedicated division given the stability that we believe this business provides through economic cycles.”

Brokerage Segment

Quarter Ended June 30,   Six Months Ended June 30,
2020 2019   2020 2019
Brokerage revenue $ 46,029   $ 39,457   $ 96,505   $ 85,701  
Gross margin %   8.1 %   16.1 %   5.8 %   16.9 %
Load Count   40,933     29,701     84,426     63,520  

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 $46.0 million in the second quarter of 2020 compared to $39.5 million in the second quarter of 2019, primarily as a result of increased load count partially offset by decreased revenue per load. Brokerage operating loss was $4.2 million in the second quarter of 2020 as compared to operating income of $1.3 million in the year ago quarter. Management will continue to focus on improving margins in this segment over the next few quarters.

Liquidity and Capital Resources

At the end of the second quarter 2020, the Company had $140.4 million of liquidity (defined as cash plus availability under the Company’s revolving credit facility), an increase of approximately $45 million from the first quarter, $381.6 million of net debt (defined as long-term debt, including current maturities, less cash balances), and $240.2 million of total stockholders' equity.

The Company expects its 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 fourth quarter of 2019. The Company will continue to monitor market conditions and may further reduce its planned capital expenditures as prudent. Through June 30, 2020, net capital expenditures were $65.0 million including the carryover $20 million from 2019.

COVID – 19 Business Update

  • Continued unwavering focus on employee health and safety for both driving and non-driving team members – over 95% of Company’s corporate office staff continue working from home

  • The Company’s volumes through the second quarter 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

Outlook

The Company’s baseline assumptions for the balance of 2020 include a general sequential economic recovery that may be volatile nationally or by region at times, a muted increase of capacity, and a relatively benign cost inflation, which should allow for a more favorable rate environment over the next several quarters. Based on these assumptions, we expect our internal initiatives around digitization and cost management, combined with our continued strength in Dedicated and an improving rate outlook have us well positioned to continue improving our margins through 2021.

Conference Call

The Company will hold a conference call to discuss its second quarter results at 5:00 p.m. (Eastern Time) on July 28, 2020. The conference call can be accessed live over the by phone dialing 1-877-423-9813 or, for international callers, 1-201-689-8573 and requesting to be joined to the U.S. Xpress Second Quarter 2020 Earnings Conference Call. A replay will be available starting at 8:00 p.m. (Eastern Time) on July 28, 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 13706047. The replay will be available until 11:59 p.m. (Eastern Time) on August 4, 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, digital fleet, 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 June 30,   Six Months Ended June 30,
(in thousands, except per share data) 2020   2019   2020   2019
Operating Revenue:
Revenue, excluding fuel surcharge $ 393,964   $ 371,184   $ 786,784   $ 746,496  
Fuel surcharge   28,513     42,678     68,261     82,729  
Total operating revenue   422,477     413,862     855,045     829,225  
Operating Expenses:
Salaries, wages and benefits   139,987     130,521     275,381     255,084  
Fuel and fuel taxes   29,874     47,374     70,197     94,278  
Vehicle rents   21,335     18,579     43,212     37,555  
Depreciation and amortization, net of (gain) loss   26,283     24,752     52,086     47,814  
Purchased transportation   117,366     112,579     247,120     226,584  
Operating expense and supplies   28,126     29,968     57,800     57,913  
Insurance premiums and claims   21,283     19,266     47,306     43,619  
Operating taxes and licenses   3,720     3,406     7,397     6,579  
Communications and utilities   2,256     2,185     4,708     4,450  
Gain on sale of subsidiary   -     (670 )   -     (670 )
General and other operating   15,970     17,115     37,229     34,594  
Total operating expenses   406,200     405,075     842,436     807,800  
Operating Income   16,277     8,787     12,609     21,425  
Other Expenses (Income):
Interest Expense, net   4,862     5,296     10,283     10,899  
Equity in loss of affiliated companies   -     90     -     179  
Other, net   -     -     2,000     26  
  4,862     5,386     12,283     11,104  
Income Before Income Taxes   11,415     3,401     326     10,321  
Income Tax Provision   2,387     415     530     2,316  
Net Income (Loss)   9,028     2,986     (204 )   8,005  
Net Income (Loss) attributable to non-controlling interest   (470 )   314     (486 )   612  
Net Income attributable to controlling interest $ 9,498   $ 2,672   $ 282   $ 7,393  
 
Income Per Share
Basic earnings per share $ 0.19   $ 0.05   $ 0.01   $ 0.15  
Basic weighted average shares outstanding   49,499     48,742     49,358     48,569  
Diluted earnings per share $ 0.18   $ 0.05   $ (0.00 ) $ 0.15  
Diluted weighted average shares outstanding   50,215     49,312     49,518     49,184  
Condensed Consolidated Balance Sheets (unaudited)
June 30,   December 31,
(in thousands) 2020   2019
Assets
Current assets:
Cash and cash equivalents $ 1,326   $ 5,687  
Customer receivables, net of allowance of $207 and $63, respectively   185,035     183,706  
Other receivables   16,573     15,253  
Prepaid insurance and licenses   9,392     11,326  
Operating supplies   7,950     7,193  
Assets held for sale   12,715     17,732  
Other current assets   14,553     15,831  
Total current assets   247,544     256,728  
Property and equipment, at cost   912,264     880,101  
Less accumulated depreciation and amortization   (400,641 )   (388,318 )
Net property and equipment   511,623     491,783  
Other assets:
Operating lease right-of-use assets   277,362     276,618  
Goodwill   59,221     57,708  
Intangible assets, net   26,364     27,214  
Other   31,327     30,058  
Total other assets   394,274     391,598  
Total assets $ 1,153,441   $ 1,140,109  
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 72,459   $ 68,918  
Book overdraft   4,945     1,313  
Accrued wages and benefits   26,970     24,110  
Claims and insurance accruals   48,881     51,910  
Other accrued liabilities   6,642     9,127  
Current portion of operating leases   70,438     69,866  
Current maturities of long-term debt and finance leases   87,106     80,247  
Total current liabilities   317,441     305,491  
Long-term debt and finance leases, net of current maturities   295,858     315,797  
Less debt issuance costs   (335 )   (1,223 )
Net long-term debt and finance leases   295,523     314,574  
Deferred income taxes   20,993     20,692  
Other long-term liabilities   12,325     5,249  
Claims and insurance accruals, long-term   60,306     56,910  
Noncurrent operating lease liability   206,616     206,357  
Commitments and contingencies   -     -  
Stockholders' Equity:
Common Stock   493     490  
Additional paid-in capital   258,558     250,700  
Accumulated deficit   (20,700 )   (20,982 )
Stockholders' equity   238,351     230,208  
Noncontrolling interest   1,886     628  
Total stockholders' equity   240,237     230,836  
Total liabilities and stockholders' equity $ 1,153,441   $ 1,140,109  
Condensed Consolidated Cash Flow Statements (unaudited)
Six Months Ended June 30,
(in thousands) 2020   2019
Operating activities
Net income (loss) $ (204 ) $ 8,005  
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Deferred income tax provision   301     1,824  
Depreciation and amortization   45,683     44,401  
Losses on sale of property and equipment   6,403     3,413  
Share based compensation   2,000     1,880  
Other   2,967     572  
Gain on sale of subsidiary   -     (670 )
Changes in operating assets and liabilities
Receivables   (3,027 )   5,320  
Prepaid insurance and licenses   1,933     612  
Operating supplies   95     72  
Other assets   1,085     (3,288 )
Accounts payable and other accrued liabilities   11,822     (2,167 )
Accrued wages and benefits   2,738     (2,401 )
Net cash provided by operating activities   71,796     57,573  
Investing activities
Payments for purchases of property and equipment   (87,270 )   (105,137 )
Proceeds from sales of property and equipment   24,101     23,041  
Other   (1,880 )   -  
Proceeds from sale of subsidiary, net of cash   -     (8,259 )
Net cash used in investing activities   (65,049 )   (90,355 )
Financing activities
Borrowings under lines of credit   180,254     10,700  
Payments under lines of credit   (180,254 )   (9,900 )
Borrowings under long-term debt   183,662     65,704  
Payments of long-term debt and finance leases   (196,742 )   (51,936 )
Payments of financing costs   (1,276 )   -  
Net proceeds from issuance of common stock under ESPP   420     -  
Tax withholding related to net share settlement of restricted stock awards   (93 )   (44 )
Purchase of noncontrolling interest   -     (8,659 )
Payments of long-term consideration for business acquisition   (1,000 )   (990 )
Proceeds from long-term consideration for sale of subsidiary   290     -  
Book overdraft   3,631     9,791  
Net cash (used in) provided by financing activities   (11,108 )   14,666  
Change in cash balances of assets held for sale   -     11,784  
Net change in cash and cash equivalents   (4,361 )   (6,332 )
Cash and cash equivalents
Beginning of year   5,687     9,892  
End of period $ 1,326   $ 3,560  
Key Operating Factors & Truckload Statistics (unaudited)
 
Quarter Ended June 30,   %   Six Months Ended June 30,   %
2020 2019   Change   2020 2019   Change
Operating Revenue:
Truckload [1] $ 347,935   $ 331,727   4.9 % $ 690,279   $ 660,795   4.5 %
Fuel Surcharge   28,513     42,678   -33.2 %   68,261     82,729   -17.5 %
Brokerage   46,029     39,457   16.7 %   96,505     85,701   12.6 %
Total Operating Revenue $ 422,477   $ 413,862   2.1 % $ 855,045   $ 829,225   3.1 %
 
Operating Income (Loss):
Truckload $ 20,428   $ 7,503   172.3 % $ 21,628   $ 17,344   24.7 %
Brokerage $ (4,151 ) $ 1,284   -423.3 % $ (9,019 ) $ 4,081   -321.0 %
$ 16,277   $ 8,787   85.2 % $ 12,609   $ 21,425   -41.1 %
 
Operating Ratio:
Operating Ratio   96.1 %   97.9 % -1.8 %   98.5 %   97.4 % 1.1 %
Adjusted Operating Ratio [2]   95.9 %   97.5 % -1.6 %   98.4 %   96.6 % 1.9 %
 
Truckload Operating Ratio   94.6 %   98.0 % -3.5 %   97.1 %   97.7 % -0.6 %
Adjusted Truckload Operating Ratio [2]   94.1 %   97.6 % -3.6 %   96.9 %   96.8 % 0.1 %
Brokerage Operating Ratio   109.0 %   96.7 % 12.7 %   109.3 %   95.2 % 14.8 %
 
Truckload Statistics:
Revenue Per Mile [1] $ 2.051   $ 2.118   -3.2 % $ 2.061   $ 2.123   -2.9 %
 
Average Tractors -
Company Owned   4,777     4,548   5.0 %   4,762     4,613   3.2 %
Owner Operators   1,787     1,738   2.8 %   1,789     1,667   7.3 %
Total Average Tractors   6,564     6,286   4.4 %   6,551     6,280   4.3 %
 
Average Revenue Miles Per Tractor
Per Week
  1,849     1,791   3.2 %   1,821     1,779   2.4 %
 
Average Revenue Per Tractor
Per Week [1]
$ 3,793   $ 3,792   0.0 % $ 3,753   $ 3,777   -0.6 %
 
Total Miles   175,833     162,217   8.4 %   345,020     319,201   8.1 %
 
Total Company Miles   125,743     114,344   10.0 %   243,869     228,125   6.9 %
 
Total Independent Contractor Miles   50,090     47,873   4.6 %   101,151     91,076   11.1 %
 
Independent Contractor fuel surcharge   7,311     12,233   -40.2 %   18,522     22,713   -18.5 %
 
1 Excluding fuel surcharge revenues
2 See GAAP to non-GAAP reconciliation in the schedules following this release
Non-GAAP Reconciliation - Adjusted Operating Income and Adjusted Operating Ratio (unaudited)
 
Quarter Ended June 30,   Six Months Ended June 30,
(in thousands) 2020   2019   2020   2019
GAAP Presentation:
Total revenue $ 422,477   $ 413,862   $ 855,045   $ 829,225  
Total operating expenses   (406,200 )   (405,075 )   (842,436 )   (807,800 )
Operating income $ 16,277   $ 8,787   $ 12,609   $ 21,425  
Operating ratio   96.1 %   97.9 %   98.5 %   97.4 %
 
Non-GAAP Presentation
Total revenue $ 422,477   $ 413,862   $ 855,045   $ 829,225  
Fuel surcharge   (28,513 )   (42,678 )   (68,261 )   (82,729 )
Revenue, excluding fuel surcharge   393,964     371,184     786,784     746,496  
 
Total operating expenses   406,200     405,075     842,436     807,800  
Adjusted for:
Fuel surcharge   (28,513 )   (42,678 )   (68,261 )   (82,729 )
Mexico transition costs [1]   -     (1,200 )   -     (4,600 )
Gain on sale of subsidiary [2]   -     670     -     670  
Adjusted operating expenses   377,687     361,867     774,175     721,141  
Adjusted Operating Income $ 16,277   $ 9,317   $ 12,609   $ 25,355  
Adjusted operating ratio   95.9 %   97.5 %   98.4 %   96.6 %
 
[1] During the second quarter and six months ended June 30, 2019, we incurred expenses related to the exit of our Mexico business totaling $1,200 and $4,600
[2] During the second quarter of 2019, we recognized a gain on the sale of our Mexico business
 
Non-GAAP Reconciliation - Truckload Adjusted Operating Income and Adjusted Operating Ratio (unaudited)
 
Quarter Ended June 30,   Six Months Ended June 30,
(in thousands) 2020   2019   2020   2019
Truckload GAAP Presentation:
Total Truckload revenue $ 376,448   $ 374,405   $ 758,540   $ 743,524  
Total Truckload operating expenses   (356,020 )   (366,902 )   (736,912 )   (726,180 )
Truckload operating income $ 20,428   $ 7,503   $ 21,628   $ 17,344  
Truckload operating ratio   94.6 %   98.0 %   97.1 %   97.7 %
 
Truckload Non-GAAP Presentation
Total Truckload revenue $ 376,448   $ 374,405   $ 758,540   $ 743,524  
Fuel surcharge   (28,513 )   (42,678 )   (68,261 )   (82,729 )
Revenue, excluding fuel surcharge   347,935     331,727     690,279     660,795  
 
Total Truckload operating expenses   356,020     366,902     736,912     726,180  
Adjusted for:
Fuel surcharge   (28,513 )   (42,678 )   (68,261 )   (82,729 )
Mexico transition costs [1]   -     (1,200 )   -     (4,600 )
Gain on sale of subsidiary [2]   -     670     -     670  
Truckload Adjusted operating expenses   327,507     323,694     668,651     639,521  
Truckload Adjusted operating income $ 20,428   $ 8,033   $ 21,628   $ 21,274  
Truckload Adjusted operating ratio   94.1 %   97.6 %   96.9 %   96.8 %
 
[1] During the second quarter and six months ended June 30, 2019, we incurred expenses related to the exit of our Mexico business totaling $1,200 and $4,600
[2] During the second quarter of 2019, we recognized a gain on the sale of our Mexico business
Non-GAAP Reconciliation - Adjusted Net Income and EPS (unaudited)
 
Quarter Ended June 30,   Six Months Ended June 30,
(in thousands, except per share data) 2020   2019   2020   2019
GAAP: Net income attributable to controlling interest $ 9,498   $ 2,672   $ 282   $ 7,393  
Adjusted for:
Income tax provision   2,387     415     530     2,316  
Income before income taxes attributable to controlling interest $ 11,885   $ 3,087   $ 812   $ 9,709  
Loss on sale of equity method investments [1]   -     -     2,000     -  
Mexico transition costs [2]   -     1,200     -     4,600  
Gain on sale of subsidiary [3]   -     (670 )   -     (670 )
Adjusted income before income taxes   11,885     3,617     2,812     13,639  
Adjusted income tax provision   2,387     705     530     3,457  
Non-GAAP: Adjusted net income attributable to controlling interest $ 9,498   $ 2,912   $ 2,282   $ 10,182  
 
GAAP: Earnings per diluted share $ 0.18   $ 0.05   $ (0.00 ) $ 0.15  
Adjusted for:
Income tax expense attributable to controlling interest   0.05     0.01     0.01     0.05  
Income before income taxes attributable to controlling interest $ 0.23   $ 0.06   $ 0.01   $ 0.20  
Loss on sale of equity method investments [1]   -     -     0.04     -  
Mexico transition costs [2]   -     0.02     -     0.09  
Gain on sale of subsidiary [3]   -     (0.01 )   -     (0.01 )
Adjusted income before income taxes   0.23     0.07     0.05     0.28  
Adjusted income tax provision   0.05     0.01     0.01     0.07  
Non-GAAP: Adjusted net income attributable to controlling interest $ 0.18   $ 0.06   $ 0.04   $ 0.21  
 
[1] During the first quarter of 2020, we incurred loss on sale related to an equity method investment in a former wholly owned subsidiary
[2] During the second quarter and six months ended June 30, 2019, we incurred expenses related to the exit of our Mexico business totaling $1,200 and $4,600
[3] During the second quarter of 2019, we recognized a gain on the sale of our Mexico business

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20200728005887/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

COMTEX_368556423/2456/2020-07-28T16:15:35

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

Copyright Business Wire 2020

/zigman2/quotes/202703514/composite
US : U.S.: NYSE
$ 8.11
+0.40 +5.19%
Volume: 381,345
Sept. 23, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$382.44 million
Rev. per Employee
N/A
loading...

Comtex
Link to MarketWatch's Slice.