U.S. Xpress Enterprises, Inc. (NYSE: USX) (the “Company”) today
announced results for the first quarter of 2020 and provided a
COVID-19 update.
COVID – 19 Business Update
- Unwavering focus on employee health and safety for both driving
and non-driving team members – over 95% of Company’s corporate
office staff began working from home mid-March, with results
showing an increase in productivity and efficiency in many
departments
- The Company’s volumes through April 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
Eric Fuller, President and CEO, commented, “The spread of
COVID-19 across our nation has dramatically impacted not only how
we work but all aspects of our daily lives. In this period of
uncertainty, we are committed to keeping our employees safe and our
customers’ products moving across the country. U.S. Xpress provides
an essential service to our customers and their customers as
millions of Americans depend on us to ship their products and keep
their store shelves stocked. To ensure we seamlessly maintain our
operations, we have transitioned a majority of our office staff to
a work from home environment, distributed protective gear to our
drivers and shop personnel and designed shipper and receiver
interaction processes for our drivers. We have also implemented
procedures to ensure we are effectively communicating with our
employees to keep them safe and informed. I am extremely proud of
our entire organization and thankful for their tireless efforts
during such an extraordinary time.”
Operational Update
Given the rapid on-set and spread of COVID-19, U.S. Xpress moved
quickly to enable the Company’s office employees to work remotely
starting March 16th and during that week transitioned more than
1,400 employees, or over 95% of the Company’s corporate office
staff, to a work from home environment. Since then, non-remote
personnel have largely been limited to employees working on-site at
customer locations and shop technicians working in Company
facilities, all of whom are following strict protocols to ensure
their safety.
The Company has instituted policies to facilitate effective
communication in this environment. For non-driving employees, the
Company ensures multiple daily contacts with direct reports and has
developed KPIs, facilitated by U.S. Xpress’ digital capabilities,
to measure the Company’s operational effectiveness. The Company has
also implemented new processes and support staff to ensure
employees have access to necessary medical services as well as
ensuring an adequate supply of safety equipment, including masks
and gloves, for the Company’s workers who are on the frontlines,
and providing regular cleaning and disinfecting of Company
facilities. U.S. Xpress’ employees are playing an essential role in
the country’s fight against COVID-19 as they work to keep critical
supplies moving and store shelves stocked. The Company is working
daily with their drivers to keep them informed and safe in this
rapidly changing environment.
To further ensure the safety of U.S. Xpress drivers’ and staff,
the Company has instituted mandatory temperature checks for drivers
prior to entering Company facilities. For new drivers, the Company
has leveraged its new driver training program as well as created a
virtual orientation program that allows drivers to complete all of
their work remotely and, therefore, avoiding a majority of
classroom work. This is an attractive innovation for drivers and
has positively contributed to the Company’s recruiting efforts.
The investments in technology that U.S. Xpress has implemented
have enabled the Company to quickly adapt to this new environment.
The Company has digitized and automated many processes which has
allowed its employees to successfully work remotely. These
investments have also enabled the Company’s workforce to maintain
their efficiency and, in some cases, drive improved output and
customer satisfaction. While unintended, this is a direct result of
the Company’s digital initiatives including the ‘frictionless
order’ and represents opportunities for further efficiency gains
once the virus is successfully eradicated.
The active support of the entire team enabled U.S. Xpress to
handle a sharp increase in demand from the Company’s grocery,
consumer products, and home improvement and hardware customers
during the early days of the shelter in place orders while
transitioning capacity from other customers where volumes declined.
Working largely remotely, the Company continued to accept, plan,
and deliver over 30,000 loads per week during March, and U.S.
Xpress proved the ability to staff and operate effectively using
the Company’s technology and active management framework.
Market and Customer Update
U.S. Xpress has a strong and diversified customer base with the
Company’s top 25 customers representing 71% of 2019 revenues. At
the peak of the COVID-19 crisis, customers representing 96% of the
Company’s pre-COVID-19 revenues remained operational, and
incremental volumes from those customers more than made up for the
non-operational customers.
U.S. Xpress has a strong customer mix of Grocery, E-Commerce,
Consumer Products, Discount Retail, and Home Improvement, with
little exposure to automotive, manufacturing, and restaurants. The
Company has not seen a drop in total load volume to date through
April; however, the Company has experienced a sequential decline in
spot rates compared with the first quarter of 2020.
Liquidity and Capital Resources
Due to uncertainties regarding the depth and duration of the
economic impact of the COVID-19 crisis, as well as the impact of
re-starting various components of the global supply chain at
different times, U.S. Xpress has considered many different
scenarios, including those that would entail a significant
multi-quarter degradation of business conditions across the
Company’s customer base. Based on this analysis, the Company is
managing the business to prudently control expenses and to ensure
excess liquidity even if operating and financial results are
significantly and negatively impacted for an extended period.
During the quarter, the Company proactively closed on a new
five-year $250 million credit facility. The former facility was
fully paid off with proceeds from the new facility and
contemporaneous real estate and equipment financings. The new
facility lowers the Company’s interest rate while increasing its
flexibility. The new facility has a single covenant which is a
fixed charge coverage, which is tested only if available borrowing
falls below a threshold amount which is less than the greater of
$20 million or 10% of the facility. Available credit under the
facility is the lesser of the facility size or a borrowing base
related to eligible accounts, equipment, and real estate.
At the end of the first quarter 2020, the Company had $96.3
million of liquidity (defined as cash plus availability under the
Company’s revolving credit facility), $438.5 million of net debt
(defined as long-term debt, including current maturities, less cash
balances), and $222.8 million of total stockholders' equity. The
Company does not anticipate material liquidity constraints or any
issues with its ongoing ability to remain in compliance with its
revolving credit facility.
The Company continues to evaluate its planned capital
expenditures and now estimates 2020 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 4th quarter of 2019. The reduction from the Company’s
prior estimate relates primarily to a deferral of a small quantity
of planned tractor replacements combined with a reduction in the
planned number of new trailer deliveries for the balance of the
year. The Company expects to finance 100% of the acquisition price
of new revenue equipment capital expenditures with finance leases
or secured equipment notes, with no use of cash or revolver
liquidity. The Company will continue to monitor market conditions
and may further reduce its planned capital expenditures as prudent.
First quarter 2020 net capital expenditures were $67.1 million.
First Quarter 2020 Financial Highlights
- Operating revenue of $432.6 million compared to $415.4 million
in the first quarter of 2019
- Operating loss of $3.7 million compared to operating income of
$12.6 million in the first quarter of 2019
- Operating ratio of 100.8% compared to 97.0% in the first
quarter of 2019
- Net loss attributable to controlling interest of $9.2 million,
or $0.19 per diluted share, included a $2.0 million, or $0.04 per
share, loss on sale of an equity method investment compared to Net
income attributable to controlling interest of $4.7 million in the
first quarter of 2019
- Adjusted net loss attributable to controlling interest, a
non-GAAP measure, of $7.2 million, or $.15 per diluted share,
compared to Adjusted net income of $7.3 million in the first
quarter of 2019
First Quarter Financial Performance
Quarter Ended March 31,
2020
2019
Operating revenue
$
432,568
$
415,363
Revenue, excluding fuel surcharge
$
392,820
$
375,312
Operating income (loss)
$
(3,668
)
$
12,638
Adjusted operating income (loss)1
$
(3,668
)
$
16,038
Operating ratio
100.8
%
97.0
%
Adjusted operating ratio1
100.9
%
95.7
%
Net income (loss) attributable to controlling interest
$
(9,216
)
$
4,721
Adjusted net income (loss) attributable to controlling interest1
$
(7,216
)
$
7,312
Earnings (losses) per diluted share
$
(0.19
)
$
0.10
Adjusted earnings (losses) per diluted share1
$
(0.15
)
$
0.15
1 See GAAP to non-GAAP reconciliation in the schedules following
this release
Mr. Fuller noted, “The truckload freight environment has been
lackluster for several quarters. Prior to the outbreak of COVID-19,
we were seeing early signs of a broad market improvement. After the
outbreak, during March, freight volumes and spot market pricing
ramped up in response to the demand associated with consumer
stockpiling and inventory restocking. While the outlook is
uncertain, we believe we are well positioned as less than 4% of our
revenues were generated by customers that closed during the peak of
the pandemic and we did not experience a drop off in volumes.”
Enterprise Update
Operating revenue was $432.6 million, an increase of $17.2
million compared to the first quarter of 2019. The increase was
primarily attributable to increased volumes in the Company’s
Truckload division and an increase of $4.3 million in Brokerage
revenue.
Operating loss for the first quarter of 2020 was $3.7 million
compared to operating income of $12.6 million in the first quarter
of 2019. Operating ratio for the first quarter of 2020 was 100.8%
compared to 97.0% in the prior year quarter.
Net loss attributable to controlling interest for the first
quarter of 2020 was $9.2 million compared to net income
attributable to controlling interest of $4.7 million in the prior
year quarter. The first quarter of 2020 included a $2.0 million
loss on sale of an equity method investment. The Company’s adjusted
net loss attributable to controlling interest excluding this charge
was $7.2 million or $.15 per share.
Truckload Segment
Quarter Ended March 31,
2020
2019
Over-the-road Average revenue per tractor per week1
$
3,463
$
3,616
Average revenue per mile1
$
1.871
$
1.985
Average revenue miles per tractor per week
1,851
1,822
Average tractors
3,835
3,617
Dedicated Average revenue per tractor per week1
$
4,068
$
3,961
Average revenue per mile1
$
2.376
$
2.337
Average revenue miles per tractor per week
1,712
1,695
Average tractors
2,703
2,658
Consolidated Average revenue per tractor per week1
$
3,713
$
3,762
Average revenue per mile1
$
2.070
$
2.128
Average revenue miles per tractor per week
1,794
1,768
Average tractors
6,538
6,275
1 Excluding fuel surcharge revenues The above table excludes
revenue, miles and tractors for services performed in Mexico.
Mr. Fuller said, “Our Dedicated division continued to perform
very well in the first quarter having delivered its fourth
consecutive quarter of record productivity. We were pleased that
average revenue per tractor per week remained above $4,000, while
we grew the truck count in this division by 1.7% year over year.
The execution in Dedicated continues to be outstanding and we will
continue to grow the business over time as attractive opportunities
arise.”
In the Over-the-Road division, the persistent oversupply of
tractors relative to market demand continued to pressure spot
pricing lower by more than 10% compared to the prior year quarter.
Contract revenue per mile trended negative year over year by
approximately 3.7%. Average revenue per tractor per week declined
4.2% compared with the first quarter of 2019. Average revenue per
mile decreased 5.7% compared with the 2019 quarter, while average
revenue miles per tractor per week increased 1.6%.
The Dedicated division’s average revenue per tractor per week
increased $107 per tractor per week, or 2.7% compared to the first
quarter of 2019 on a 1.7% increase in average revenue per mile and
higher miles per tractor. The Company continued to see consistent
results in its Dedicated division. The fluctuations in volume in
the general freight market and in specific industries have not
negatively impacted the volumes of the Company’s major Dedicated
accounts, which are concentrated in the discount retail and grocery
market sectors.
Brokerage Segment
Quarter Ended March 31,
2020
2019
Brokerage revenue
$
50,476
$
46,244
Gross margin %
3.7
%
17.5
%
Load Count
43,493
33,819
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 $50.5 million in the first quarter of
2020 compared to $46.2 million in the first quarter of 2019,
primarily as a result of increased load count partially offset by
decreased revenue per load. Brokerage operating loss was $4.9
million in the first quarter of 2020 as compared to operating
income of $2.8 million in the year ago quarter.
Outlook
Due to the economic uncertainty associated with COVID-19 and the
associated impact on shippers, consumers, competitors, supply
chains, financial markets, and the Company’s employees, U.S. Xpress
is not offering guidance regarding a range of expected earnings per
share or similar measures for future quarters. However, the Company
does expect to have sufficient sources of liquidity to fund its
operations through 2020 and beyond even under an extended economic
downturn.
Conference Call
The Company will hold a conference call to discuss its first
quarter results at 8:30 a.m. (Eastern Time) on April 30, 2020. The
conference call can be accessed live over the by phone dialing
1-855-327-6837 or, for international callers, 1-631-891-4304 and
requesting to be joined to the U.S. Xpress First Quarter 2020
Earnings Conference Call. A replay will be available starting at
11:30 a.m. (Eastern Time) on April 30, 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 10009315. The replay
will be available until 11:59 p.m. (Eastern Time) on May 7,
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, 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 March 31,
(in thousands, except per share data)
2020
2019
Operating Revenue: Revenue, excluding fuel surcharge
$
392,820
$
375,312
Fuel surcharge
39,748
40,051
Total operating revenue
432,568
415,363
Operating Expenses: Salaries, wages and benefits
135,394
124,563
Fuel and fuel taxes
40,323
46,904
Vehicle rents
21,877
18,976
Depreciation and amortization, net of (gain) loss
25,803
23,062
Purchased transportation
129,754
114,005
Operating expense and supplies
29,674
27,945
Insurance premiums and claims
26,023
24,353
Operating taxes and licenses
3,677
3,173
Communications and utilities
2,452
2,265
General and other operating
21,259
17,479
Total operating expenses
436,236
402,725
Operating Income (Loss)
(3,668
)
12,638
Other Expenses (Income): Interest Expense, net
5,421
5,603
Equity in loss of affiliated companies
-
89
Other, net
2,000
26
7,421
5,718
Income (Loss) Before Income Taxes
(11,089
)
6,920
Income Tax Provision (Benefit)
(1,857
)
1,901
Net Income (Loss)
(9,232
)
5,019
Net Income (Loss) attributable to non-controlling interest
(16
)
298
Net Income (Loss) attributable to controlling interest
$
(9,216
)
$
4,721
Income (Loss) Per Share Basic earnings (losses) per
share
$
(0.19
)
$
0.10
Basic weighted average shares outstanding
49,217
48,394
Diluted earnings (losses) per share
$
(0.19
)
$
0.10
Diluted weighted average shares outstanding
49,217
49,391
Condensed Consolidated Balance Sheets
(unaudited)
March 31,
December 31,
(in thousands)
2020
2019
Assets Current assets: Cash and cash equivalents
$
5,626
$
5,687
Customer receivables, net of allowance of $36 and $63, respectively
186,009
183,706
Other receivables
16,040
15,253
Prepaid insurance and licenses
17,110
11,326
Operating supplies
7,344
7,193
Assets held for sale
15,570
17,732
Other current assets
15,945
15,831
Total current assets
263,644
256,728
Property and equipment, at cost
934,871
880,101
Less accumulated depreciation and amortization
(400,452
)
(388,318
)
Net property and equipment
534,419
491,783
Other assets: Operating lease right-of-use assets
280,106
276,618
Goodwill
57,708
57,708
Intangible assets, net
26,789
27,214
Other
30,865
30,058
Total other assets
395,468
391,598
Total assets
$
1,193,531
$
1,140,109
Liabilities and Stockholders' Equity Current
liabilities: Accounts payable
$
79,012
$
68,918
Book overdraft
3,689
1,313
Accrued wages and benefits
25,955
24,110
Claims and insurance accruals
48,734
51,910
Other accrued liabilities
6,431
9,127
Current portion of operating leases
68,021
69,866
Current maturities of long-term debt and finance leases
81,700
80,247
Total current liabilities
313,542
305,491
Long-term debt and finance leases, net of current maturities
362,722
315,797
Less debt issuance costs
(324
)
(1,223
)
Net long-term debt and finance leases
362,398
314,574
Deferred income taxes
18,810
20,692
Other long-term liabilities
4,852
5,249
Claims and insurance accruals, long-term
59,466
56,910
Noncurrent operating lease liability
211,694
206,357
Commitments and contingencies
-
-
Stockholders' Equity: Common Stock
493
490
Additional paid-in capital
251,862
250,700
Accumulated deficit
(30,198
)
(20,982
)
Stockholders' equity
222,157
230,208
Noncontrolling interest
612
628
Total stockholders' equity
222,769
230,836
Total liabilities and stockholders' equity
$
1,193,531
$
1,140,109
Condensed Consolidated Cash Flow Statements
(unaudited)
Quarter Ended March 31,
(in thousands)
2020
2019
Operating activities Net income
$
(9,232
)
$
5,019
Adjustments to reconcile net income to net cash provided by
operating activities: Deferred income tax provision
(1,882
)
1,407
Depreciation and amortization
22,597
21,833
Losses on sale of property and equipment
3,206
1,229
Share based compensation
836
856
Other
2,652
308
Changes in operating assets and liabilities Receivables
(3,183
)
3,560
Prepaid insurance and licenses
(5,784
)
(4,761
)
Operating supplies
(151
)
(285
)
Other assets
386
383
Accounts payable and other accrued liabilities
8,788
(2,844
)
Accrued wages and benefits
1,845
(1,226
)
Net cash provided by (used in) operating activities
20,078
25,479
Investing activities Payments for purchases of property and
equipment
(76,761
)
(36,604
)
Proceeds from sales of property and equipment
9,650
13,115
Proceeds from sale of subsidiary, net of cash
-
(9,002
)
Other
(2,000
)
-
Net cash used in investing activities
(69,111
)
(32,491
)
Financing activities Borrowings under lines of credit
147,654
-
Payments under lines of credit
(70,654
)
-
Borrowings under long-term debt
142,644
14,355
Payments of long-term debt and finance leases
(171,266
)
(31,128
)
Payments of financing costs
(1,255
)
-
Tax withholding related to net share settlement of restricted stock
awards
(91
)
(39
)
Payments of long-term consideration for business acquisition
(1,000
)
(990
)
Proceeds from long-term consideration for sale of subsidiary
144
-
Proceeds from issuance of common stock under ESPP
420
-
Book overdraft
2,376
5,233
Net cash provided by (used in) financing activities
48,972
(12,569
)
Change in cash balances of assets held for sale
-
11,784
Net change in cash and cash equivalents
(61
)
(7,797
)
Cash and cash equivalents Beginning of year
5,687
9,892
End of period
$
5,626
$
2,095
Key Operating Factors & Truckload Statistics
(unaudited)
Quarter Ended March 31,
%
2020
2019
Change
Operating revenue: Truckload1
$
342,344
$
329,068
4.0
%
Fuel surcharge
39,748
40,051
-0.8
%
Brokerage
50,476
46,244
9.2
%
Total operating revenue
$
432,568
$
415,363
4.1
%
Operating income (loss): Truckload
$
1,200
$
9,842
-87.8
%
Brokerage
$
(4,868
)
$
2,796
-274.1
%
$
(3,668
)
$
12,638
-129.0
%
Operating ratio: Operating ratio
100.8
%
97.0
%
4.0
%
Adjusted operating ratio2
100.9
%
95.7
%
5.4
%
Truckload operating ratio
99.7
%
97.3
%
2.4
%
Truckload adjusted operating ratio2
99.6
%
96.0
%
3.8
%
Brokerage operating ratio
109.6
%
94.0
%
16.7
%
Truckload Statistics:3 Revenue per mile1
$
2.070
$
2.128
-2.7
%
Average tractors - Company owned
4,747
4,679
1.5
%
Independent contractors
1,791
1,596
12.2
%
Total average tractors
6,538
6,275
4.2
%
Average revenue miles per tractor per week
1,794
1,768
1.5
%
Average revenue per tractor per week1
$
3,713
$
3,762
-1.3
%
Total miles
169,187
156,984
7.8
%
Total company miles
118,126
113,781
3.8
%
Total independent contractor miles
51,061
43,203
18.2
%
Independent contractor fuel surcharge
11,211
10,480
7.0
%
1 Excluding fuel surcharge revenues 2 See GAAP to non-GAAP
reconciliation in the schedules following this release 3 Excludes
revenue, miles and tractors for services performed in Mexico.
Non-GAAP Reconciliation - Adjusted Operating Income and
Adjusted Operating Ratio (unaudited)
Quarter Ended March 31,
(in thousands)
2020
2019
GAAP Presentation: Total revenue
$
432,568
$
415,363
Total operating expenses
(436,236
)
(402,725
)
Operating income (loss)
$
(3,668
)
$
12,638
Operating ratio
100.8
%
97.0
%
Non-GAAP Presentation: Total revenue
$
432,568
$
415,363
Fuel surcharge
(39,748
)
(40,051
)
Revenue, excluding fuel surcharge
392,820
375,312
Total operating expenses
436,236
402,725
Adjusted for: Fuel surcharge
(39,748
)
(40,051
)
Mexico transition costs1
-
(3,400
)
Adjusted operating expenses
396,488
359,274
Adjusted operating income (loss)
$
(3,668
)
$
16,038
Adjusted operating ratio
100.9
%
95.7
%
Non-GAAP Reconciliation - Truckload Adjusted Operating
Income and Adjusted Operating Ratio (unaudited)
Quarter Ended March 31,
(in thousands)
2020
2019
Truckload GAAP Presentation: Truckload revenue
$
382,092
$
369,119
Truckload operating expenses
(380,892
)
(359,277
)
Truckload operating income
$
1,200
$
9,842
Truckload operating ratio
99.7
%
97.3
%
Truckload Non-GAAP Presentation: Truckload revenue
$
382,092
$
369,119
Fuel surcharge
(39,748
)
(40,051
)
Revenue, excluding fuel surcharge
342,344
329,068
Truckload operating expenses
380,892
359,277
Adjusted for: Fuel surcharge
(39,748
)
(40,051
)
Mexico transition costs1
-
(3,400
)
Truckload adjusted operating expenses
341,144
315,826
Truckload adjusted operating income
$
1,200
$
13,242
Truckload adjusted operating ratio
99.6
%
96.0
%
1 During the first quarter, we incurred expenses related to the
exit of our Mexico business totaling $3,400.
Non-GAAP Reconciliation - Adjusted Net Income and EPS
(unaudited)
Quarter Ended March 31,
(in thousands, except per share data)
2020
2019
GAAP: Net income attributable to controlling interest
$
(9,216
)
$
4,721
Adjusted for: Income tax provision (benefit)
(1,857
)
1,901
Income (loss) before income taxes attributable to controlling
interest
$
(11,073
)
$
6,622
Loss on sale of equity method investments1
2,000
-
Mexico transition costs2
-
3,400
Adjusted income (loss) before income taxes
(9,073
)
10,022
Adjusted income tax provision (benefit)
(1,857
)
2,710
Non-GAAP: Adjusted net income (loss) attributable to controlling
interest
$
(7,216
)
$
7,312
GAAP: Earnings (losses) per diluted share
$
(0.19
)
$
0.10
Adjusted for: Income tax provision (benefit) attributable to
controlling interest
(0.04
)
0.03
Income (loss) before income taxes attributable to controlling
interest
$
(0.23
)
$
0.13
Loss on sale of equity method investments1
0.04
-
Mexico transition costs2
-
0.07
Adjusted income (loss) before income taxes
(0.19
)
0.20
Adjusted income tax provision (benefit)
(0.04
)
0.05
Non-GAAP: Adjusted net income (loss) attributable to controlling
interest
(0.15
)
$
0.15
1During the first quarter of 2020, we incurred loss on sale related
to a equity method investment in a former wholly owned subsidiary 2
During the first quarter, we incurred expenses related to the exit
of our Mexico business totaling $3,400.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200430005174/en/
U.S. Xpress Enterprises, Inc. Brian Baubach Sr. Vice President
Corporate Finance and Investor Relations investors@usxpress.com
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