LITTLE ROCK — USA Truck Inc. of Van Buren reported Thursday that it had a net loss of $3.5 million, or 34 cents a share, for the second quarter of its current fiscal year ending June 30.
The figure was down from a net income of $600,000, or 6 cents per share, from the same period a year ago.
The average forecast of four analysts who cover the company was for a loss of half that amount, 17 cents a share, according to Zack’s Investment Research.
Cliff Beckham, chief executive officer, noted in a news release that the quarterly loss was narrower compared with the previous three quarters.
“Bright spots included continued strong performance in our Strategic Capacity Solutions Segment, improved base revenue per manned tractor and lower fuel expense,” Beckham said. “Unfortunately, progress in these areas was hampered by lackluster performance in our trucking segment, where [idle] tractors and lack of network efficiency continued to diminish asset productivity.”
Factors cited in the company’s performance in the most recent quarter included a sluggish U.S. economy, particularly in manufacturing; “disappointing” operational execution; and an idle tractor count that averaged 12.2 percent — peaking at 14.1 percent — which the company attributed to a challenging environment for hiring and retaining drivers.
Excluding a fuel surcharge of $26.05 million, revenue fell 4.6 percent to $103.5 million.
As of June 30, USA Truck’s outstanding debt, less cash, totaled 50.9 percent of its capitalization, up from 47.4 percent on Dec. 31, putting the company in noncompliance of the covenants of its revolving credit agreement. The company said it has obtained a waiver from its bank group through Sept. 30 as it negotiates a new 5-year revolving credit facility with a different lender.
On Monday, J.B. Hunt Transport Services Inc. of Lowell — the state’s largest trucking firm — reported second-quarter earnings of $80.5 million, or 67 cents a share, up 22.5 percent from $65.7 million, or 53 cents a share, from the same period a year ago.
USA Truck operates one of the nation’s largest truckload fleets, delivering freight throughout the U.S. and to portions of Mexico and Canada. It started as a small spinoff of Arkansas Best Corp. of Fort Smith in 1983 and was incorporated under its current name in 1986.
Three years later, Robert Powell, then senior vice president of ABF Freight System Inc., and five others purchased USA Truck from Arkansas Best Corp. of Fort Smith for $2.4 million and assumption of more than $25 million in debt, according to USA Truck’s website. ABF Freight System is a subsidiary of Arkansas Best.
In March 1992, USA Truck executed an initial public offering of stock.
USA Truck’s stock closed Thursday at $4.69, down 16 cents or 3.3 percent, on the Nasdaq. The stock has traded between $4.47 and $12.41 in the past year.
Business, Pages 27 on 07/20/2012