USA Truck 3rd Quarter Profit Reaches $ 4.8 Million

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USA Truck Inc. this week posted strong third quarter 2021 results, beating analysts’ expectations.

The Van Buren-based company made a profit of $ 4.8 million from $ 2.3 million last year when it began tackling the setbacks caused by the coronavirus pandemic.

Revenue increased nearly 28% to $ 181 million. Without fuel surcharges, it stood at $ 163.2 million for the three months ended September 30.

James Reed, president and CEO of USA Truck, said his team had strong third quarter profits and the highest revenue in company history.

“We’ve fine-tuned our network, we’ve worked tirelessly to keep the trucks seated and we’ve been tireless in increasing revenue per tractor,” Reed said on an investor call Friday morning. The quarterly report was released on Thursday after the market closed.

“On the logistics side, we’ve been committed from the start to creating a market-leading volume engine that can thrive in rising and falling markets. And now that we’ve cracked that code, we’re focused on growing the team, ”he added.

On the trucking side, revenues increased by more than 16% to reach $ 15.8 million. Revenue increased $ 1 million year-on-year and the operating ratio improved 40 basis points.

Income per tractor per week increased by $ 689, or nearly 20%. Revenue per loaded mile increased 50 cents, or 22%, due to higher spot prices and contracts resulting from market pressures.

On the logistics side, revenue increased nearly 57% to $ 81.6 million. Revenue increased $ 2.4 million year-on-year and the operating ratio improved 250 basis points.

Gross profit in dollars increased 61.4% to $ 9.5 million from a year ago. They were down $ 200,000 from the second quarter.

The gross margin percentage improved 30 basis points to 11.6% compared to last year. It deteriorated by 80 basis points against 12.4% in the previous quarter.

Revenue per load increased 37%, or $ 599 per load, compared to last year.

The number of loads increased by 4,638 loads, or more than 14%.

As at September 30, total debt and finance lease debts were $ 129.1 million. The company had $ 96.3 million to borrow in the form of credit.

Analysts had expected earnings to decline by around 49 cents per share, according to a consensus from Yahoo Finance. USA Truck’s adjusted results were 57 cents per share.

Going forward, Reed said one of his top priorities is recruiting more drivers.

The American Trucking Association said earlier this week that the driver shortage reached 80,000, an industry record, as challenges from the pandemic continue and more buyers order products in line. The association’s chief economist, Bob Costello, has estimated that if companies cannot find ways to recruit young people, women and minorities into a predominantly male workforce, the shortage could exceed 160,000. by 2030.

USA Truck stock rose nearly 3%, or 52 cents, to close Friday at $ 19.27 on the Nasdaq stock exchange.

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