Sign In  |  Register  |  About Sunnyvale  |  Contact Us

Sunnyvale, CA
September 01, 2020 10:10am
7-Day Forecast | Traffic
  • Search Hotels in Sunnyvale

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

U.S. Xpress Enterprises Reports Fourth Quarter 2021 Results

U.S. Xpress Enterprises, Inc. (NYSE: USX) today announced results for the fourth quarter of 2021.

Fourth Quarter 2021 Highlights Compared to Fourth Quarter 2020

  • Operating revenue of $531.6 million compared to $455.6 million
  • Operating loss of $5.1 million compared to operating income of $15.1 million
  • Adjusted operating loss1, of $0.8 million compared to operating income of $15.1 million
  • Net loss attributable to controlling interest of $5.3 million, or $0.10 per diluted share compared to net income attributable to controlling interest of $7.6 million, or $0.15 per diluted share
  • Adjusted net loss attributable to controlling interest1, of $2.0 million, or $0.03 per diluted share compared to net income attributable to controlling interest of $7.6 million, or $0.15 per diluted share

“The fourth quarter was marked by several achievements, as our average tractor count increased year-over-year for the first time in six quarters, fueled by Variant, which grew its fleet to more than 1,500 tractors exiting the year. Meanwhile, our Brokerage segment continued to grow load count and revenue while our Dedicated division generated record revenue per tractor per week,” said Eric Fuller, President and CEO. “Despite these achievements, our consolidated earnings were disappointing primarily due to operational challenges at Variant that were negatively impacting our ability to scale profitably, which we are actively addressing. Looking ahead to 2022, our priorities are restoring Variant’s revenue productivity and driver turnover to previous levels, lowering our overhead per tractor, and continuing to sequentially grow our overall fleet size. With recent changes underway, we believe we are well-positioned for progress in the year ahead.”

Fourth Quarter and Full Year 2021 Financial Performance

Quarter Ended December 31,

Year Ending December 31,

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Operating revenue

$

531,605

 

$

455,587

 

$

1,948,526

 

$

1,742,101

 

Revenue, excluding fuel surcharge

$

487,280

 

$

428,736

 

$

1,794,278

 

$

1,619,199

 

Operating income (loss)

$

(5,110

)

$

15,051

 

$

18,429

 

$

43,551

 

Net income (loss) attributable to controlling interest

$

(5,286

)

$

7,574

 

$

10,870

 

$

18,552

 

Earnings (loss) per diluted share

$

(0.10

)

$

0.15

 

$

0.21

 

$

0.35

 

Adjusted net income (loss) attributable to controlling interest1

$

(1,995

)

$

7,574

 

$

8,158

 

$

20,552

 

Adjusted earnings per diluted share1

$

(0.03

)

$

0.15

 

$

0.16

 

$

0.39

 

Operating Ratio
Truckload operating ratio

 

102.0

%

 

96.2

%

 

99.0

%

 

96.3

%

Brokerage operating ratio

 

97.2

%

 

98.9

%

 

99.2

%

 

105.6

%

Operating ratio

 

101.0

%

 

96.7

%

 

99.1

%

 

97.5

%

Adjusted operating ratio1

 

100.2

%

 

96.5

%

 

98.7

%

 

97.3

%

1 Non-cash adjustments in the quarter included a $4.3 million write-off of obsolete technology and a mark-to-market adjustment of $0.5 million related to a strategic investment.

Variant Update

During the second half of 2021, Variant’s turnover, utilization, and revenue per tractor per week began to deteriorate, and these trends accelerated in the fourth quarter. In December, a leadership change was announced, and Variant’s technology and operations teams now report directly to the Company’s CEO. Since the change, Variant’s key metrics have improved, including revenue per tractor per week which averaged approximately $4,100 over the last four weeks, an improvement relative to third and fourth quarter results. In addition, we have reduced expenses at Variant by more than $10 million on an annualized basis.

Variant Key Metrics

Quarter Ended

Year Ended

2019 Legacy

March 31,

2021

June 30,

2021

September 30,

2021

December 31,

2021

December 31,

2021

Ending truck count

 

2,100

 

 

951

 

 

1,160

 

 

1,283

 

 

1,555

 

 

1,555

 

Preventable accidents, per mm

 

12.10

 

 

5.56

 

 

5.44

 

 

6.00

 

 

6.82

 

 

6.24

 

Turnover*

 

150

%

 

58

%

 

74

%

 

81

%

 

95

%

 

95

%

Average revenue miles per tractor per week (Utilization)

 

1,453

 

 

1,828

 

 

1,764

 

 

1,642

 

 

1,522

 

 

1,655

 

Average revenue per tractor per week

$

2,780

 

$

3,764

 

$

4,000

 

$

3,929

 

$

3,740

 

$

3,861

 

*Turnover is annualized and year-to-date for each period presented.

The deterioration in Variant’s key metrics was primarily the result of growing Variant without the proper balance of technology and domain expertise, which led to gaps in optimization and inefficient load planning. In addition, Variant’s priorities were disproportionately focused on longer-term solutions rather than addressing the existing challenges and focusing on remediation efforts to deliver improved service.

Mr. Fuller commented “We built Variant purposely outside of US Xpress with a team that had technology expertise, but not necessarily trucking expertise, and provided them with a mandate to build a technology-enabled fleet. For most of Variant’s history, this framework was successful, as the fleet grew rapidly and produced a better experience for drivers and customers while enhancing utilization, safety, and revenue per tractor. However, as Variant began to achieve significant scale, we found that the team needed to shift their focus from idea generation to execution to ensure that the fleet ran smoothly while maintaining its superior operating metrics. To achieve this shift, I have brought together the technology and operations teams reporting directly to me as we work collaboratively to get back on track in 2022. Since mid-December, the operational changes that we have made have translated to improvements in utilization, revenue per tractor and overhead per tractor.”

Enterprise Update

Operating revenue was $531.6 million, an increase of $76.0 million compared to the fourth quarter of 2020. The increase was a combination of increased revenues in the Company’s Brokerage segment of $35.5 million, an increase of $23.0 million in the Truckload segment, and an increase in fuel surcharge revenues of $17.5 million. Excluding the impact of fuel surcharge revenues, fourth quarter revenue increased $58.5 million to $487.3 million, an increase of 13.7% as compared to the fourth quarter of 2020.

Operating loss for the fourth quarter of 2021 was $5.1 million, which compares to operating income of $15.1 million in the fourth quarter of 2020. Adjusted operating loss1, which excludes a non-cash write-off of $4.3 million of obsolete technology in the quarter, was $0.8 million, as compared to adjusted operating income of $15.1 million in the fourth quarter of 2020. During the fourth quarter, the Company also experienced unusual claims activity primarily related to two severe accidents that negatively impacted operating expenses by $6.0 million.

Net loss attributable to controlling interest for the fourth quarter of 2021 was $5.3 million, or $0.10 per diluted share, compared to net income attributable to controlling interest of $7.6 million, or $0.15 per diluted share, in the fourth quarter of 2020. Adjusted net loss attributable to controlling interest1 was $2.0 million, or $0.03 per diluted share as compared to adjusted net income attributable to controlling interest of $7.6 million or earnings per diluted share of $0.15, in the fourth quarter of 2020.

Truckload Segment

Quarter Ended December 31, Year Ending December 31,

 

2021

 

2020

 

2021

 

2020

Over the road (OTR)
Average revenue per tractor per week*

$

3,610

$

3,937

$

3,732

$

3,650

Average revenue per mile*

$

2.481

$

2.165

$

2.333

$

1.976

Average revenue miles per tractor per week

 

1,455

 

1,819

 

1,600

 

1,847

Average tractors

 

3,614

 

3,355

 

3,442

 

3,675

Dedicated
Average revenue per tractor per week*

$

4,617

$

4,081

$

4,359

$

4,084

Average revenue per mile*

$

2.714

$

2.373

$

2.518

$

2.363

Average revenue miles per tractor per week

 

1,701

 

1,720

 

1,731

 

1,728

Average tractors

 

2,533

 

2,789

 

2,564

 

2,735

Consolidated
Average revenue per tractor per week*

$

4,025

$

4,003

$

4,000

$

3,835

Average revenue per mile*

$

2.586

$

2.256

$

2.416

$

2.135

Average revenue miles per tractor per week

 

1,556

 

1,774

 

1,656

 

1,796

Average tractors

 

6,147

 

6,144

 

6,006

 

6,410

* Excluding fuel surcharge revenues

In the OTR division, the average tractor count increased 259 tractors compared to the fourth quarter of 2020 primarily as a result of growth in the Company’s Variant fleet. Average revenue per mile increased 14.6% year-over-year; however, average revenue miles per tractor per week declined by 20.0%, which contributed to average revenue per tractor per week declining by 8.3%, or $327, compared to the fourth quarter of 2020. The decline in average revenue miles per week was primarily related to operational challenges in the Company’s Variant division as outlined in the Variant Update section.

In the Dedicated division, the average number of tractors declined by 256 tractors from the fourth quarter of 2020 but increased by 13 tractors sequentially from the third quarter of 2021. The average revenue per mile increased by 14.4% year-over-year, which contributed to average revenue per tractor per week increasing by 13.1%, or $536, compared to the fourth quarter of 2020.

Brokerage Segment

Quarter Ended December 31, Year Ending December 31,

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Brokerage revenue

$

111,858

 

$

76,350

 

$

381,006

 

$

228,825

 

Gross margin %

 

13.3

%

 

13.3

%

 

12.6

%

 

8.5

%

Load Count

 

48,551

 

 

42,155

 

 

179,178

 

 

165,360

 

Percentage of loads processed on digital platform

 

82.5

%

 

62.1

%

 

76.7

%

 

36.8

%

The Brokerage segment continues to provide additional selectivity for the Company’s assets to optimize yield while at the same time offering additional capacity solutions for its customers. Brokerage revenue increased 46.5% to $111.9 million in the fourth quarter compared to $76.4 million in the fourth quarter of 2020. The increase in revenue was driven by a 27.2% increase in revenue per load and a 15.2% in load count.

Brokerage operating income was $3.1 million in the fourth quarter as compared to $0.8 million in the fourth quarter of 2020 and benefitted from surge capacity that the Company provided to some of its customers during the holiday season.

Liquidity and Capital Resources

At the end of the fourth quarter 2021, the Company had $188.9 million of liquidity (defined as cash plus availability under the Company’s revolving credit facility), $369.8 million of net debt (defined as long-term debt, including current maturities, less cash balances), and $276.6 million of total stockholders' equity.

Capital expenditures, net of proceeds, related primarily to tractors and trailers were $97.0 million for 2021, excluding equipment financed under operating leases. This was below the Company’s previous guidance range of $130.0 million to $150.0 million, primarily due to delays in anticipated fourth quarter equipment deliveries.

Outlook

Mr. Fuller concluded, “We expect a robust freight market early in the year that moderates as the year goes on, due to improvements in the supply chain, inventory restocking, and perhaps some slowing of manufacturing and imports based on Fed tightening and a return to consumer spending on services. At the same time, shortages of drivers and new tractors and trailers should limit capacity expansion. We expect this to result in meaningful increases in OTR contract rates and to a lesser extent in Dedicated, at least in the first half of the year. The rate increase benefit likely will be offset in significant part by inflation, some of which is already embedded in our costs, with more to come.

Based on our macro expectations, improvements in our operating results are likely to come primarily from improvements in OTR per tractor utilization, better freight selection when more freight is being run through the Optimizer, and better fixed cost coverage through increases in total fleet size and miles. The good news is much of this is under our control, and I believe we have the right team in the right jobs with the right plan for success. The pace of our success will be apparent in the results of turnover, safety, revenue per tractor, and eventually total seated tractor count, primarily in Variant but also across our entire Truckload segment.”

Conference Call

The Company will hold a conference call to discuss its fourth quarter 2021 results at 5:00 p.m. (Eastern Time) on February 9, 2022. 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 Fourth Quarter 2021 Earnings Conference Call.

Supplemental Financial Information

Additional information regarding the U.S. Xpress’ operating results is provided below as well as on the Company’s investor page at investor.usxpress.com.

(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.

 
Non-GAAP Reconciliation - Adjusted Operating Income and Adjusted Operating Ratio (unaudited)
 
Quarter Ended December 31, Year Ending December 31,
(in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

GAAP Presentation:
Total revenue

$

531,605

 

$

455,587

 

$

1,948,526

 

$

1,742,101

 

Total operating expenses

 

(536,715

)

 

(440,536

)

 

(1,930,097

)

 

(1,698,550

)

Operating income (loss)

$

(5,110

)

$

15,051

 

$

18,429

 

$

43,551

 

Operating ratio

 

101.0

%

 

96.7

%

 

99.1

%

 

97.5

%

 
Non-GAAP Presentation
Total revenue

$

531,605

 

$

455,587

 

$

1,948,526

 

$

1,742,101

 

Fuel surcharge

 

(44,325

)

 

(26,851

)

 

(154,248

)

 

(122,902

)

Revenue, excluding fuel surcharge

 

487,280

 

 

428,736

 

 

1,794,278

 

 

1,619,199

 

 
Total operating expenses

 

536,715

 

 

440,536

 

 

1,930,097

 

 

1,698,550

 

Adjusted for:
Fuel surcharge

 

(44,325

)

 

(26,851

)

 

(154,248

)

 

(122,902

)

Impairment charges1

 

(4,334

)

 

-

 

 

(4,334

)

 

-

 

Adjusted operating expenses

 

488,056

 

 

413,685

 

 

1,771,515

 

 

1,575,648

 

Adjusted operating income (Loss)

$

(776

)

$

15,051

 

$

22,763

 

$

43,551

 

Adjusted operating ratio

 

100.2

%

 

96.5

%

 

98.7

%

 

97.3

%

 
1During the fourth quarter of 2021, we incurred a non-cash adjustment of $4.3 million due to the write off of obsolete technology.
 
Non-GAAP Reconciliation - Truckload Adjusted Operating Income and Adjusted Operating Ratio (unaudited)
 
Quarter Ended December 31, Year Ending December 31,
(in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Truckload GAAP Presentation:
Total Truckload revenue

$

419,747

 

$

379,237

 

$

1,567,520

 

$

1,513,276

 

Total Truckload operating expenses

 

(427,977

)

 

(365,005

)

 

(1,552,197

)

 

(1,457,009

)

Truckload operating income (loss)

$

(8,230

)

$

14,232

 

$

15,323

 

$

56,267

 

Truckload operating ratio

 

102.0

%

 

96.2

%

 

99.0

%

 

96.3

%

 
Truckload Non-GAAP Presentation
Total Truckload revenue

$

419,747

 

$

379,237

 

$

1,567,520

 

$

1,513,276

 

Fuel surcharge

 

(44,325

)

 

(26,851

)

 

(154,248

)

 

(122,902

)

Revenue, excluding fuel surcharge

 

375,422

 

 

352,386

 

 

1,413,272

 

 

1,390,374

 

 
Total Truckload operating expenses

 

427,977

 

 

365,005

 

 

1,552,197

 

 

1,457,009

 

Adjusted for:
Fuel surcharge

 

(44,325

)

 

(26,851

)

 

(154,248

)

 

(122,902

)

Impairment charges1

 

(4,334

)

 

-

 

 

(4,334

)

 

-

 

Truckload Adjusted operating expenses

 

379,318

 

 

338,154

 

 

1,393,615

 

 

1,334,107

 

Truckload Adjusted operating income (loss)

$

(3,896

)

$

14,232

 

$

19,657

 

$

56,267

 

Truckload Adjusted operating ratio

 

101.0

%

 

96.0

%

 

98.6

%

 

96.0

%

 
1During the fourth quarter of 2021, we incurred a non-cash adjustment of $4.3 million due to the write off of obsolete technology.
 
Non-GAAP Reconciliation - Adjusted Net Income and EPS (unaudited)
 
Quarter Ended December 31, Year Ending December 31,
(in thousands, except per share data)

 

2021

 

 

2020

 

2021

 

 

2020

GAAP: Net income (loss) attributable to controlling interest

$

(5,286

)

$

7,574

$

10,870

 

$

18,552

Adjusted for:
Income tax provision (benefit)

 

(4,299

)

 

3,205

 

433

 

 

5,072

Income (loss) before income taxes attributable to controlling interest

$

(9,585

)

$

10,779

$

11,303

 

$

23,624

Unrealized (gain) loss on equity investment1

 

452

 

 

-

 

(7,677

)

 

-

Impairment charges2

 

4,334

 

 

-

 

4,334

 

 

-

Loss on sale of equity method investment3

 

-

 

 

-

 

-

 

 

2,000

Adjusted income (loss) before income taxes

 

(4,799

)

 

10,779

 

7,960

 

 

25,624

Adjusted income tax provision (benefit)

 

(2,804

)

 

3,205

 

(198

)

 

5,072

Non-GAAP: Adjusted net income (loss) attributable to controlling interest

$

(1,995

)

$

7,574

$

8,158

 

$

20,552

 
GAAP: Earnings (loss) per diluted share

$

(0.10

)

$

0.15

$

0.21

 

$

0.35

Adjusted for:
Income tax expense attributable to controlling interest

 

(0.07

)

 

0.06

 

0.01

 

 

0.10

Income (loss) before income taxes attributable to controlling interest

$

(0.17

)

$

0.21

$

0.22

 

$

0.45

Unrealized (gain) loss on equity investment1

 

0.01

 

 

-

 

(0.15

)

 

-

Impairment charges2

 

0.08

 

 

-

 

0.08

 

 

-

Loss on sale of equity method investment3

 

-

 

 

-

 

-

 

 

0.04

Adjusted income (loss) before income taxes

 

(0.08

)

 

0.21

 

0.15

 

 

0.49

Adjusted income tax provision (benefit)

 

(0.05

)

 

0.06

 

(0.01

)

 

0.10

Non-GAAP: Adjusted earnings (loss) per diluted share attributable to controlling interest

$

(0.03

)

$

0.15

$

0.16

 

$

0.39

 
1During the fourth quarter and year ending December 31, 2021, we recognized an unrealized (gain) loss on our TuSimple equity investment totaling $452 and $(7,677)
2During the fourth quarter of 2021, we incurred a non-cash adjustment of $4.3 million due to the write off of obsolete technology.
3During the first quarter of 2020, we incurred loss on sale related to an equity method investment in a former wholly owned subsidiary

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 rates, expected margins, future growth of our digital fleet, digital brokerage, and Dedicated division, expected net capital expenditures, the expected impact of our driver, digital fleet, 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.

About U.S. Xpress Enterprises

Through its subsidiaries, U.S. Xpress Enterprises, Inc. offers customers over-the-road, dedicated, and brokerage services. Founded in 1985, the Company utilizes a combination of smart technology, a modern fleet of tractors and a network of highly trained, professional drivers to efficiently move freight for a wide variety of customers. U.S. Xpress implements a range of digital initiatives and technology to drive innovation in the industry, streamline the value chain for customers and improve the overall driver experience.

 
Condensed Consolidated Income Statements (unaudited)
Quarter Ended December 31, Year Ending December 31,
(in thousands, except per share data)

 

2021

 

 

2020

 

2021

 

 

2020

 

Operating Revenue:
Revenue, excluding fuel surcharge

$

487,280

 

$

428,736

$

1,794,278

 

$

1,619,199

 

Fuel surcharge

 

44,325

 

 

26,851

 

154,248

 

 

122,902

 

Total operating revenue

 

531,605

 

 

455,587

 

1,948,526

 

 

1,742,101

 

Operating Expenses:
Salaries, wages and benefits

 

174,538

 

 

143,618

 

619,983

 

 

556,507

 

Fuel and fuel taxes

 

51,973

 

 

33,412

 

182,875

 

 

136,677

 

Vehicle rents

 

24,375

 

 

22,516

 

90,085

 

 

86,684

 

Depreciation and amortization, net of (gain) loss

 

16,880

 

 

24,956

 

81,976

 

 

102,827

 

Purchased transportation

 

175,969

 

 

143,079

 

634,271

 

 

516,196

 

Operating expense and supplies

 

42,138

 

 

32,107

 

147,779

 

 

133,356

 

Insurance premiums and claims

 

24,424

 

 

21,912

 

83,376

 

 

87,053

 

Operating taxes and licenses

 

4,297

 

 

4,328

 

14,490

 

 

15,084

 

Communications and utilities

 

4,610

 

 

2,095

 

12,639

 

 

8,990

 

General and other operating

 

17,511

 

 

12,513

 

62,623

 

 

55,176

 

Total operating expenses

 

536,715

 

 

440,536

 

1,930,097

 

 

1,698,550

 

Operating (Loss) Income

 

(5,110

)

 

15,051

 

18,429

 

 

43,551

 

Other Expenses (Income):
Interest expense, net

 

3,716

 

 

4,183

 

14,532

 

 

18,847

 

Other, net

 

452

 

 

-

 

(7,677

)

 

2,000

 

 

4,168

 

 

4,183

 

6,855

 

 

20,847

 

Income (Loss) Before Income Taxes

 

(9,278

)

 

10,868

 

11,574

 

 

22,704

 

Income Tax Provision (Benefit)

 

(4,299

)

 

3,205

 

433

 

 

5,072

 

Net Income (Loss)

 

(4,979

)

 

7,663

 

11,141

 

 

17,632

 

Net Income (Loss) attributable to non-controlling interest

 

307

 

 

89

 

271

 

 

(920

)

Net Income (Loss) attributable to controlling interest

$

(5,286

)

$

7,574

$

10,870

 

$

18,552

 

 
Income (Loss) Per Share
Basic earnings (loss) per share

$

(0.10

)

$

0.15

$

0.22

 

$

0.37

 

Basic weighted average shares outstanding

 

50,598

 

 

49,724

 

50,370

 

 

49,528

 

Diluted earnings (loss) per share

$

(0.10

)

$

0.15

$

0.21

 

$

0.35

 

Diluted weighted average shares outstanding

 

51,477

 

 

51,186

 

52,167

 

 

50,674

 

 
Condensed Consolidated Balance Sheets (unaudited)

December 31,

December 31,

(in thousands)

 

2021

 

 

2020

 

Assets
Current assets:
Cash and cash equivalents

$

5,695

 

$

5,505

 

Customer receivables, net of allowance of $11 and $157, respectively

 

231,687

 

 

189,869

 

Other receivables

 

18,046

 

 

19,203

 

Prepaid insurance and licenses

 

13,867

 

 

14,265

 

Operating supplies

 

9,550

 

 

8,953

 

Assets held for sale

 

11,831

 

 

12,382

 

Other current assets

 

32,020

 

 

16,263

 

Total current assets

 

322,696

 

 

266,440

 

Property and equipment, at cost

 

890,933

 

 

896,264

 

Less accumulated depreciation and amortization

 

(370,112

)

 

(394,603

)

Net property and equipment

 

520,821

 

 

501,661

 

Other assets:
Operating lease right-of-use assets

 

292,347

 

 

287,251

 

Goodwill

 

59,221

 

 

59,221

 

Intangible assets, net

 

24,129

 

 

25,513

 

Other

 

50,829

 

 

39,504

 

Total other assets

 

426,526

 

 

411,489

 

Total assets

$

1,270,043

 

$

1,179,590

 

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable

$

126,910

 

$

83,621

 

Book overdraft

 

7,096

 

 

-

 

Accrued wages and benefits

 

45,011

 

 

40,095

 

Claims and insurance accruals

 

44,309

 

 

47,667

 

Other accrued liabilities

 

5,962

 

 

5,986

 

Current portion of operating leases

 

88,375

 

 

78,193

 

Current maturities of long-term debt and finance leases

 

85,117

 

 

103,690

 

Total current liabilities

 

402,780

 

 

359,252

 

Long-term debt and finance leases, net of current maturities

 

290,392

 

 

255,287

 

Less debt issuance costs

 

(357

)

 

(314

)

Net long-term debt and finance leases

 

290,035

 

 

254,973

 

Deferred income taxes

 

24,301

 

 

25,162

 

Other long-term liabilities

 

14,457

 

 

14,615

 

Claims and insurance accruals, long-term

 

54,819

 

 

55,420

 

Noncurrent operating lease liability

 

205,362

 

 

209,311

 

Commitments and contingencies

 

-

 

 

-

 

Stockholders' Equity:
Common stock

 

505

 

 

497

 

Additional paid-in capital

 

267,621

 

 

261,338

 

Retained earnings (deficit)

 

8,440

 

 

(2,430

)

Stockholders' equity

 

276,566

 

 

259,405

 

Noncontrolling interest

 

1,723

 

 

1,452

 

Total stockholders' equity

 

278,289

 

 

260,857

 

Total liabilities and stockholders' equity

$

1,270,043

 

$

1,179,590

 

 
Condensed Consolidated Cash Flow Statements (unaudited)
Year Ending December 31,
(in thousands)

 

2021

 

 

2020

 

Operating activities
Net income

$

11,141

 

$

17,632

 

Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income tax provision

 

(861

)

 

4,470

 

Depreciation and amortization

 

82,975

 

 

90,116

 

(Gains) losses on sale of property and equipment

 

(999

)

 

12,711

 

Share based compensation

 

6,244

 

 

4,395

 

Other

 

684

 

 

3,367

 

Unrealized gain on investment

 

(7,677

)

 

-

 

Changes in operating assets and liabilities
Receivables

 

(38,556

)

 

(10,048

)

Prepaid insurance and licenses

 

398

 

 

(2,939

)

Operating supplies

 

(465

)

 

(900

)

Other assets

 

(20,578

)

 

(3,718

)

Accounts payable and other accrued liabilities

 

41,345

 

 

19,940

 

Accrued wages and benefits

 

4,916

 

 

15,863

 

Net cash provided by operating activities

 

78,567

 

 

150,889

 

Investing activities
Payments for purchases of property and equipment

 

(192,366

)

 

(186,122

)

Proceeds from sales of property and equipment

 

95,369

 

 

81,399

 

Other

 

-

 

 

(6,880

)

Net cash used in investing activities

 

(96,997

)

 

(111,603

)

Financing activities
Borrowings under lines of credit

 

334,512

 

 

278,654

 

Payments under lines of credit

 

(310,612

)

 

(278,654

)

Borrowings under long-term debt

 

124,721

 

 

263,992

 

Payments of long-term debt and finance leases

 

(137,661

)

 

(301,059

)

Payments of financing costs

 

(100

)

 

(1,391

)

Net proceeds from issuance of common stock under ESPP

 

1,284

 

 

851

 

Tax withholding related to net share settlement of restricted stock awards

 

(1,237

)

 

(135

)

Payments of long-term consideration for business acquisition

 

-

 

 

(1,000

)

Proceeds from long-term consideration for sale of subsidiary

 

617

 

 

587

 

Book overdraft

 

7,096

 

 

(1,313

)

Net cash provided by (used in) financing activities

 

18,620

 

 

(39,468

)

Net change in cash and cash equivalents

 

190

 

 

(182

)

Cash and cash equivalents
Beginning of year

 

5,505

 

 

5,687

 

End of period

$

5,695

 

$

5,505

 

Key Operating Factors & Truckload Statistics (unaudited)
 
Quarter Ended December 31, % Year Ending December 31, %

 

2021

 

 

2020

 

Change

 

2021

 

 

2020

 

Change

Operating Revenue:
Truckload1

$

375,422

 

$

352,386

 

6.5

%

$

1,413,272

 

$

1,390,374

 

1.6

%

Fuel Surcharge

 

44,325

 

 

26,851

 

65.1

%

 

154,248

 

 

122,902

 

25.5

%

Brokerage

 

111,858

 

 

76,350

 

46.5

%

 

381,006

 

 

228,825

 

66.5

%

Total Operating Revenue

$

531,605

 

$

455,587

 

16.7

%

$

1,948,526

 

$

1,742,101

 

11.8

%

 
Operating Income (Loss):
Truckload

$

(8,230

)

$

14,232

 

-157.8

%

$

15,323

 

$

56,267

 

-72.8

%

Brokerage

$

3,120

 

$

819

 

281.0

%

$

3,106

 

$

(12,716

)

-124.4

%

$

(5,110

)

$

15,051

 

-134.0

%

$

18,429

 

$

43,551

 

-57.7

%

 
Operating Ratio:
Operating Ratio

 

101.0

%

 

96.7

%

4.4

%

 

99.1

%

 

97.5

%

1.6

%

Adjusted Operating Ratio2

 

100.2

%

 

96.5

%

3.8

%

 

98.7

%

 

97.3

%

1.5

%

 
Truckload Operating Ratio

 

102.0

%

 

96.2

%

6.0

%

 

99.0

%

 

96.3

%

2.8

%

Adjusted Truckload Operating Ratio2

 

101.0

%

 

96.0

%

5.2

%

 

98.6

%

 

96.0

%

2.8

%

Brokerage Operating Ratio

 

97.2

%

 

98.9

%

-1.7

%

 

99.2

%

 

105.6

%

-6.1

%

 
Truckload Statistics:
Revenue Per Mile1

$

2.586

 

$

2.256

 

14.6

%

$

2.416

 

$

2.135

 

13.2

%

 
Average Tractors -
Company Owned

 

5,066

 

 

4,532

 

11.8

%

 

4,731

 

 

4,689

 

0.9

%

Owner Operators

 

1,081

 

 

1,612

 

-32.9

%

 

1,275

 

 

1,721

 

-25.9

%

Total Average Tractors

 

6,147

 

 

6,144

 

0.0

%

 

6,006

 

 

6,410

 

-6.3

%

 
Average Revenue Miles Per Tractor

Per Week

 

1,556

 

 

1,774

 

-12.3

%

 

1,656

 

 

1,796

 

-7.8

%

 
Average Revenue Per Tractor

Per Week1

$

4,025

 

$

4,003

 

0.5

%

$

4,000

 

$

3,835

 

4.3

%

 
Total Miles

 

141,172

 

 

158,511

 

-10.9

%

 

578,089

 

 

668,731

 

-13.6

%

 
Total Company Miles

 

114,713

 

 

116,425

 

-1.5

%

 

450,493

 

 

479,307

 

-6.0

%

 
Total Independent Contractor Miles

 

26,459

 

 

42,086

 

-37.1

%

 

127,596

 

 

189,424

 

-32.6

%

 
Independent Contractor fuel surcharge

$

8,420

 

$

6,225

 

35.3

%

$

32,503

 

$

31,585

 

2.9

%

 
1 Excluding fuel surcharge revenues
2 See GAAP to non-GAAP reconciliation in the schedules following this release

 

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 Sunnyvale.com & California Media Partners, LLC. All rights reserved.