USA Truck on Thursday reported a strong 2021 fourth quarter that exceeded Wall Street expectations.
The Van Buren trucking and logistics company experienced solid demand in a strong freight and pricing market that doubled net income to $12.2 million in the three months that ended Dec. 31, compared with last year.
Revenue increased 26.5% to $200.9 million. Excluding fuel surcharges, it was $180.7 million.
James Reed, USA Truck's president and chief executive officer, attributed the record results to recent transformation within the company and continued execution of key goals.
"The fourth quarter and full year 2021 represent our highest total revenue and adjusted earnings per share in the company's history," Reed said in a written statement.
Wall Street analysts expected earnings to fall around 71 cents per share, according to a Yahoo! Finance consensus, about in line with what ArcBest made this time last year. ArcBest instead had adjusted earnings per share of $1.38.
The company reported that fourth quarter earnings were positively affected by an IRS deduction clarification that yielded an increase of 6 cents per share. USA Truck's operating ratio improved to 91.8% from 93.9% last year.
"During the fourth quarter, continued execution on our strategic initiatives, operational strategy and strong freight and pricing market resulted in a trucking segment adjusted operating ratio improvement of 440 basis points year over year to 88.7%," Reed said.
The company's trucking segment reported higher revenue and income in the quarter compared with last year. Trucking revenue increased 14.6% to $15.2 million. Trucking income doubled to $11.6 million, reflecting an operating ratio of 90.3%, or an adjusted 88.7%.
Base revenue per tractor per week increased $443 or 11.5%.
Base revenue per loaded mile increased 50 cents or 19.8%.
The company's logistics segment reported higher revenue and income in the fourth quarter over the previous year. Logistics revenue improved 44.9% to $94.6 million. Logistics income grew 44.1% to $4.9 million, reflecting an unchanged operating ratio of 94.8%.
Gross margin dollars increased 26.9% to $11.9 million over the previous year.
Revenue per load increased 17.4%, or $349 per load year over year. It grew 5.9% or $132 per load from the third quarter.
Load count increased by 7,640, or 23.4% year over year.
For the full year, USA Truck had solid revenue and income gains compared with 2020. Revenue grew 28.9% to $710.4 million. Income more than quintupled to $24.8 million in the 12 months that ended Dec. 31.
At the end of the year, total debt and lease liabilities totaled $144.8 million, with $124.1 million available to borrow in credit.
USA Truck on Monday completed a $130 million asset-backed credit facility that provides more predictable equipment valuation and increased borrowing capacity, as well as equipment financing arrangements that secure low cost fixed interest rates.
The company is scheduled to host a conference call with investors at 8 a.m. today to discuss fourth quarter results. The call is available online at usa-truck.com or by dialing 1-888-506-0062, access code 114576.
Shares of USA Truck rose less than 1%, or 7 cents, to close at $19.80 on the Nasdaq stock exchange. The report was released after the stock market closed.