U.S. Xpress Enterprises, Inc. (NYSE:USX) (the “Company”) today
announced results for the second quarter of 2020.
Second Quarter 2020 Financial Highlights
- Operating revenue of $422.5 million compared to $413.9 million
in the second quarter of 2019
- Operating income of $16.3 million compared to $8.8 million in
the second quarter of 2019
- Operating ratio of 96.1% compared to 97.9% in the second
quarter of 2019
- Adjusted operating ratio1, a non-GAAP measure, of 95.9%
compared to 97.5% in the second quarter of 2019
- Net income attributable to controlling interest of $9.5
million, or $0.18 per diluted share, compared to $2.7 million in
the second quarter of 2019, or $0.05 per diluted share
Second Quarter Financial Performance
Quarter Ended June 30,
Six Months Ended June 30,
2020
2019
2020
2019
Operating revenue
$
422,477
$
413,862
$
855,045
$
829,225
Revenue, excluding fuel surcharge
$
393,964
$
371,184
$
786,784
$
746,496
Operating income
$
16,277
$
8,787
$
12,609
$
21,425
Adjusted operating income1
$
16,277
$
9,317
$
12,609
$
25,355
Operating ratio
96.1
%
97.9
%
98.5
%
97.4
%
Adjusted operating ratio1
95.9
%
97.5
%
98.4
%
96.6
%
Net income attributable to controlling interest
$
9,498
$
2,672
$
282
$
7,393
Adjusted net income attributable to controlling interest1
$
9,498
$
2,912
$
2,282
$
10,182
Earnings per diluted share
$
0.18
$
0.05
$
(0.00
)
$
0.15
Adjusted earnings per diluted share1
$
0.18
$
0.06
$
0.04
$
0.21
Eric Fuller, President and CEO, commented, “I am very pleased
with our second quarter results as we are beginning to see the
tangible, financial benefits of our strategic initiatives focused
on utilizing technology to improve our processes, accelerate the
velocity of our business, improve our customers’ and drivers’
satisfaction, and lower our costs. The approximate 500 basis points
of sequential margin improvement we achieved exceeded normal
seasonality. The successful launch of our digital fleet, ongoing
success in reducing overhead costs, better safety performance, and
lower fuel costs more than offset a sequential decrease in revenue
per mile in our Over-the-Road division as there continued to be
excess tractor capacity relative to freight demand in the market
for a majority of the quarter due in part to COVID-19.”
Mr. Fuller continued, “A major digital initiative that we have
been working on over the last two years has been the development,
launch, and ramp of our digital fleet. This fleet is largely
recruited, planned, dispatched, and managed using artificial
intelligence and digital platforms. We developed the concept as a
hypothesis in 2018 based in part on the business models of the
digital freight brokerages. During 2019, we began building our
technology leadership and teams to construct the necessary
databases, applications, and processes to launch a pilot fleet with
a small number of trucks in the fourth quarter of 2019. The test
was successful and we expanded the pilot fleet to approximately 100
trucks in the first quarter. Given the positive results of the
first quarter pilot we moved to a full production model, scaling
the business to approximately 400 trucks in the second quarter of
2020. Phase one of our plan is to convert a total of 900
Over-the-Road solo trucks, with the lowest returns, to our digital
platform over the next few quarters. Phase two of our plan will be
to potentially convert an additional 1,200 trucks over the next
couple of years. While the conversion will not be linear, we expect
our margins to expand further.”
Enterprise Update
Operating revenue was $422.5 million, an increase of $8.6
million compared to the second quarter of 2019. The increase was
primarily attributable to increased revenues in the Company’s
Truckload division of $16.2 million, an increase of $6.6 million in
Brokerage revenue, and decreased fuel surcharge revenues of $14.2
million. Excluding the impact of fuel surcharges, second quarter
revenue increased $22.8 million to $394.0 million, an increase of
6.1% as compared to the prior year quarter.
Operating income for the second quarter of 2020 was $16.3
million which compares favorably to the $8.8 million in the second
quarter of 2019. Operating ratio for the second quarter of 2020 was
96.1% compared to 97.9% in the prior year quarter.
Net income attributable to controlling interest for the second
quarter of 2020 was $9.5 million compared to $2.7 million in the
prior year quarter. Adjusted net income attributable to controlling
interest1 for the second quarter of 2020 was $9.5 million, compared
to $2.9 million in the 2019 quarter. Earnings per diluted share
were $0.18 for the second quarter of 2020 and adjusted earnings per
diluted share1 were $0.18.
Truckload Segment
Quarter Ended June 30,
Six Months Ended June 30,
2020
2019
2020
2019
Over the road Average revenue per tractor per week*
$
3,558
$
3,625
$
3,511
$
3,621
Average revenue per mile*
$
1.855
$
1.956
$
1.863
$
1.970
Average revenue miles per tractor per week
1,918
1,853
1,884
1,838
Average tractors
3,825
3,611
3,830
3,614
Dedicated Average revenue per tractor per week*
$
4,122
$
4,018
$
4,095
$
3,990
Average revenue per mile*
$
2.351
$
2.355
$
2.363
$
2.346
Average revenue miles per tractor per week
1,753
1,706
1,733
1,700
Average tractors
2,739
2,674
2,721
2,666
Consolidated Average revenue per tractor per week*
$
3,793
$
3,792
$
3,753
$
3,777
Average revenue per mile*
$
2.051
$
2.118
$
2.061
$
2.123
Average revenue miles per tractor per week
1,849
1,791
1,821
1,779
Average tractors
6,564
6,285
6,551
6,280
* Excluding fuel surcharge revenues
The Truckload segment achieved an operating ratio of 94.6% and
an adjusted operating ratio1 of 94.1% for the second quarter of
2020, a 340 and 350 basis point improvement, respectively, compared
to the operating ratio of 98.0% and the adjusted operating ratio1
of 97.6% achieved in the second quarter of 2019. This improvement
was achieved despite a 3.2% decline in average revenue per mile as
the Company continued to execute on its digital initiatives while
maintaining a focus on reducing fixed and variable costs.
In the Over-the-Road division, the persistent oversupply of
tractors relative to market demand continued to pressure spot
pricing lower compared to the 2019 quarter. Contract revenue per
mile was down year over year by approximately 5%. Average revenue
per tractor per week declined 1.8% compared with the second quarter
of 2019. Average revenue per mile decreased 5.2% compared with the
2019 quarter.
Mr. Fuller added, “The Over-the-Road division experienced
substantial improvement in the second quarter driven by the
conversion of an additional 300 of our lowest performing tractors
into our digital fleet. This conversion helped drive our OTR
utilization up by 3.5%, as compared to the first quarter of 2020,
while contributing to a reduction in both our fixed and variable
costs.”
The Dedicated division’s average revenue per tractor per week
increased $104 per tractor per week, or 2.6% compared to the second
quarter of 2019 on relatively flat average revenue per mile and
higher miles per tractor. The fluctuations in volume in the general
freight market and in specific industries related to COVID-19 have
not negatively impacted the volumes of the Company’s major
Dedicated accounts, which are concentrated in the discount retail
and grocery market sectors.
Mr. Fuller concluded, “Our Dedicated division continued to
perform very well in the second quarter having delivered its fifth
consecutive quarter of record productivity. Average revenue per
tractor per week expanded from the first quarter, to $4,122, while
we grew the truck count in this division by 1.3%. I continue to be
very pleased with our team’s execution and we remain focused on
organically growing the Dedicated division given the stability that
we believe this business provides through economic cycles.”
Brokerage Segment
Quarter Ended June 30,
Six Months Ended June 30,
2020
2019
2020
2019
Brokerage revenue
$
46,029
$
39,457
$
96,505
$
85,701
Gross margin %
8.1
%
16.1
%
5.8
%
16.9
%
Load Count
40,933
29,701
84,426
63,520
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 $46.0 million in the second quarter of
2020 compared to $39.5 million in the second quarter of 2019,
primarily as a result of increased load count partially offset by
decreased revenue per load. Brokerage operating loss was $4.2
million in the second quarter of 2020 as compared to operating
income of $1.3 million in the year ago quarter. Management will
continue to focus on improving margins in this segment over the
next few quarters.
Liquidity and Capital Resources
At the end of the second quarter 2020, the Company had $140.4
million of liquidity (defined as cash plus availability under the
Company’s revolving credit facility), an increase of approximately
$45 million from the first quarter, $381.6 million of net debt
(defined as long-term debt, including current maturities, less cash
balances), and $240.2 million of total stockholders' equity.
The Company expects its 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
fourth quarter of 2019. The Company will continue to monitor market
conditions and may further reduce its planned capital expenditures
as prudent. Through June 30, 2020, net capital expenditures were
$65.0 million including the carryover $20 million from 2019.
COVID – 19 Business Update
- Continued unwavering focus on employee health and safety for
both driving and non-driving team members – over 95% of Company’s
corporate office staff continue working from home
- The Company’s volumes through the second quarter 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
Outlook
The Company’s baseline assumptions for the balance of 2020
include a general sequential economic recovery that may be volatile
nationally or by region at times, a muted increase of capacity, and
a relatively benign cost inflation, which should allow for a more
favorable rate environment over the next several quarters. Based on
these assumptions, we expect our internal initiatives around
digitization and cost management, combined with our continued
strength in Dedicated and an improving rate outlook have us well
positioned to continue improving our margins through 2021.
Conference Call
The Company will hold a conference call to discuss its second
quarter results at 5:00 p.m. (Eastern Time) on July 28, 2020. 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 Second Quarter 2020
Earnings Conference Call. A replay will be available starting at
8:00 p.m. (Eastern Time) on July 28, 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 13706047. The replay
will be available until 11:59 p.m. (Eastern Time) on August 4,
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, digital fleet,
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 June 30,
Six Months Ended June 30,
(in thousands, except per share data)
2020
2019
2020
2019
Operating Revenue: Revenue, excluding fuel surcharge
$
393,964
$
371,184
$
786,784
$
746,496
Fuel surcharge
28,513
42,678
68,261
82,729
Total operating revenue
422,477
413,862
855,045
829,225
Operating Expenses: Salaries, wages and benefits
139,987
130,521
275,381
255,084
Fuel and fuel taxes
29,874
47,374
70,197
94,278
Vehicle rents
21,335
18,579
43,212
37,555
Depreciation and amortization, net of (gain) loss
26,283
24,752
52,086
47,814
Purchased transportation
117,366
112,579
247,120
226,584
Operating expense and supplies
28,126
29,968
57,800
57,913
Insurance premiums and claims
21,283
19,266
47,306
43,619
Operating taxes and licenses
3,720
3,406
7,397
6,579
Communications and utilities
2,256
2,185
4,708
4,450
Gain on sale of subsidiary
-
(670
)
-
(670
)
General and other operating
15,970
17,115
37,229
34,594
Total operating expenses
406,200
405,075
842,436
807,800
Operating Income
16,277
8,787
12,609
21,425
Other Expenses (Income): Interest Expense, net
4,862
5,296
10,283
10,899
Equity in loss of affiliated companies
-
90
-
179
Other, net
-
-
2,000
26
4,862
5,386
12,283
11,104
Income Before Income Taxes
11,415
3,401
326
10,321
Income Tax Provision
2,387
415
530
2,316
Net Income (Loss)
9,028
2,986
(204
)
8,005
Net Income (Loss) attributable to non-controlling interest
(470
)
314
(486
)
612
Net Income attributable to controlling interest
$
9,498
$
2,672
$
282
$
7,393
Income Per Share Basic earnings per share
$
0.19
$
0.05
$
0.01
$
0.15
Basic weighted average shares outstanding
49,499
48,742
49,358
48,569
Diluted earnings per share
$
0.18
$
0.05
$
(0.00
)
$
0.15
Diluted weighted average shares outstanding
50,215
49,312
49,518
49,184
Condensed Consolidated Balance Sheets (unaudited)
June 30,
December 31,
(in thousands)
2020
2019
Assets Current assets: Cash and cash equivalents
$
1,326
$
5,687
Customer receivables, net of allowance of $207 and $63,
respectively
185,035
183,706
Other receivables
16,573
15,253
Prepaid insurance and licenses
9,392
11,326
Operating supplies
7,950
7,193
Assets held for sale
12,715
17,732
Other current assets
14,553
15,831
Total current assets
247,544
256,728
Property and equipment, at cost
912,264
880,101
Less accumulated depreciation and amortization
(400,641
)
(388,318
)
Net property and equipment
511,623
491,783
Other assets: Operating lease right-of-use assets
277,362
276,618
Goodwill
59,221
57,708
Intangible assets, net
26,364
27,214
Other
31,327
30,058
Total other assets
394,274
391,598
Total assets
$
1,153,441
$
1,140,109
Liabilities and Stockholders' Equity Current
liabilities: Accounts payable
$
72,459
$
68,918
Book overdraft
4,945
1,313
Accrued wages and benefits
26,970
24,110
Claims and insurance accruals
48,881
51,910
Other accrued liabilities
6,642
9,127
Current portion of operating leases
70,438
69,866
Current maturities of long-term debt and finance leases
87,106
80,247
Total current liabilities
317,441
305,491
Long-term debt and finance leases, net of current maturities
295,858
315,797
Less debt issuance costs
(335
)
(1,223
)
Net long-term debt and finance leases
295,523
314,574
Deferred income taxes
20,993
20,692
Other long-term liabilities
12,325
5,249
Claims and insurance accruals, long-term
60,306
56,910
Noncurrent operating lease liability
206,616
206,357
Commitments and contingencies
-
-
Stockholders' Equity: Common Stock
493
490
Additional paid-in capital
258,558
250,700
Accumulated deficit
(20,700
)
(20,982
)
Stockholders' equity
238,351
230,208
Noncontrolling interest
1,886
628
Total stockholders' equity
240,237
230,836
Total liabilities and stockholders' equity
$
1,153,441
$
1,140,109
Condensed Consolidated Cash Flow Statements (unaudited)
Six Months Ended June 30,
(in thousands)
2020
2019
Operating activities Net income (loss)
$
(204
)
$
8,005
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: Deferred income tax provision
301
1,824
Depreciation and amortization
45,683
44,401
Losses on sale of property and equipment
6,403
3,413
Share based compensation
2,000
1,880
Other
2,967
572
Gain on sale of subsidiary
-
(670
)
Changes in operating assets and liabilities Receivables
(3,027
)
5,320
Prepaid insurance and licenses
1,933
612
Operating supplies
95
72
Other assets
1,085
(3,288
)
Accounts payable and other accrued liabilities
11,822
(2,167
)
Accrued wages and benefits
2,738
(2,401
)
Net cash provided by operating activities
71,796
57,573
Investing activities Payments for purchases of property and
equipment
(87,270
)
(105,137
)
Proceeds from sales of property and equipment
24,101
23,041
Other
(1,880
)
-
Proceeds from sale of subsidiary, net of cash
-
(8,259
)
Net cash used in investing activities
(65,049
)
(90,355
)
Financing activities Borrowings under lines of credit
180,254
10,700
Payments under lines of credit
(180,254
)
(9,900
)
Borrowings under long-term debt
183,662
65,704
Payments of long-term debt and finance leases
(196,742
)
(51,936
)
Payments of financing costs
(1,276
)
-
Net proceeds from issuance of common stock under ESPP
420
-
Tax withholding related to net share settlement of restricted stock
awards
(93
)
(44
)
Purchase of noncontrolling interest
-
(8,659
)
Payments of long-term consideration for business acquisition
(1,000
)
(990
)
Proceeds from long-term consideration for sale of subsidiary
290
-
Book overdraft
3,631
9,791
Net cash (used in) provided by financing activities
(11,108
)
14,666
Change in cash balances of assets held for sale
-
11,784
Net change in cash and cash equivalents
(4,361
)
(6,332
)
Cash and cash equivalents Beginning of year
5,687
9,892
End of period
$
1,326
$
3,560
Key Operating Factors & Truckload Statistics (unaudited)
Quarter Ended June 30,
%
Six Months Ended June 30,
%
2020
2019
Change
2020
2019
Change
Operating Revenue: Truckload1
$
347,935
$
331,727
4.9
%
$
690,279
$
660,795
4.5
%
Fuel Surcharge
28,513
42,678
-33.2
%
68,261
82,729
-17.5
%
Brokerage
46,029
39,457
16.7
%
96,505
85,701
12.6
%
Total Operating Revenue
$
422,477
$
413,862
2.1
%
$
855,045
$
829,225
3.1
%
Operating Income (Loss): Truckload
$
20,428
$
7,503
172.3
%
$
21,628
$
17,344
24.7
%
Brokerage
$
(4,151
)
$
1,284
-423.3
%
$
(9,019
)
$
4,081
-321.0
%
$
16,277
$
8,787
85.2
%
$
12,609
$
21,425
-41.1
%
Operating Ratio: Operating Ratio
96.1
%
97.9
%
-1.8
%
98.5
%
97.4
%
1.1
%
Adjusted Operating Ratio2
95.9
%
97.5
%
-1.6
%
98.4
%
96.6
%
1.9
%
Truckload Operating Ratio
94.6
%
98.0
%
-3.5
%
97.1
%
97.7
%
-0.6
%
Adjusted Truckload Operating Ratio2
94.1
%
97.6
%
-3.6
%
96.9
%
96.8
%
0.1
%
Brokerage Operating Ratio
109.0
%
96.7
%
12.7
%
109.3
%
95.2
%
14.8
%
Truckload Statistics: Revenue Per Mile1
$
2.051
$
2.118
-3.2
%
$
2.061
$
2.123
-2.9
%
Average Tractors - Company Owned
4,777
4,548
5.0
%
4,762
4,613
3.2
%
Owner Operators
1,787
1,738
2.8
%
1,789
1,667
7.3
%
Total Average Tractors
6,564
6,286
4.4
%
6,551
6,280
4.3
%
Average Revenue Miles Per TractorPer Week
1,849
1,791
3.2
%
1,821
1,779
2.4
%
Average Revenue Per TractorPer Week1
$
3,793
$
3,792
0.0
%
$
3,753
$
3,777
-0.6
%
Total Miles
175,833
162,217
8.4
%
345,020
319,201
8.1
%
Total Company Miles
125,743
114,344
10.0
%
243,869
228,125
6.9
%
Total Independent Contractor Miles
50,090
47,873
4.6
%
101,151
91,076
11.1
%
Independent Contractor fuel surcharge
7,311
12,233
-40.2
%
18,522
22,713
-18.5
%
1 Excluding fuel surcharge revenues 2 See GAAP to non-GAAP
reconciliation in the schedules following this release
Non-GAAP
Reconciliation - Adjusted Operating Income and Adjusted Operating
Ratio (unaudited)
Quarter Ended June 30,
Six Months Ended June 30,
(in thousands)
2020
2019
2020
2019
GAAP Presentation: Total revenue
$
422,477
$
413,862
$
855,045
$
829,225
Total operating expenses
(406,200
)
(405,075
)
(842,436
)
(807,800
)
Operating income
$
16,277
$
8,787
$
12,609
$
21,425
Operating ratio
96.1
%
97.9
%
98.5
%
97.4
%
Non-GAAP Presentation Total revenue
$
422,477
$
413,862
$
855,045
$
829,225
Fuel surcharge
(28,513
)
(42,678
)
(68,261
)
(82,729
)
Revenue, excluding fuel surcharge
393,964
371,184
786,784
746,496
Total operating expenses
406,200
405,075
842,436
807,800
Adjusted for: Fuel surcharge
(28,513
)
(42,678
)
(68,261
)
(82,729
)
Mexico transition costs1
-
(1,200
)
-
(4,600
)
Gain on sale of subsidiary2
-
670
-
670
Adjusted operating expenses
377,687
361,867
774,175
721,141
Adjusted Operating Income
$
16,277
$
9,317
$
12,609
$
25,355
Adjusted operating ratio
95.9
%
97.5
%
98.4
%
96.6
%
1 During the second quarter and six months ended June 30,
2019, we incurred expenses related to the exit of our Mexico
business totaling $1,200 and $4,600 2 During the second quarter of
2019, we recognized a gain on the sale of our Mexico business
Non-GAAP Reconciliation - Truckload Adjusted Operating
Income and Adjusted Operating Ratio (unaudited)
Quarter Ended June 30,
Six Months Ended June 30,
(in thousands)
2020
2019
2020
2019
Truckload GAAP Presentation: Total Truckload revenue
$
376,448
$
374,405
$
758,540
$
743,524
Total Truckload operating expenses
(356,020
)
(366,902
)
(736,912
)
(726,180
)
Truckload operating income
$
20,428
$
7,503
$
21,628
$
17,344
Truckload operating ratio
94.6
%
98.0
%
97.1
%
97.7
%
Truckload Non-GAAP Presentation Total Truckload
revenue
$
376,448
$
374,405
$
758,540
$
743,524
Fuel surcharge
(28,513
)
(42,678
)
(68,261
)
(82,729
)
Revenue, excluding fuel surcharge
347,935
331,727
690,279
660,795
Total Truckload operating expenses
356,020
366,902
736,912
726,180
Adjusted for: Fuel surcharge
(28,513
)
(42,678
)
(68,261
)
(82,729
)
Mexico transition costs1
-
(1,200
)
-
(4,600
)
Gain on sale of subsidiary2
-
670
-
670
Truckload Adjusted operating expenses
327,507
323,694
668,651
639,521
Truckload Adjusted operating income
$
20,428
$
8,033
$
21,628
$
21,274
Truckload Adjusted operating ratio
94.1
%
97.6
%
96.9
%
96.8
%
1 During the second quarter and six months ended June 30,
2019, we incurred expenses related to the exit of our Mexico
business totaling $1,200 and $4,600 2 During the second quarter of
2019, we recognized a gain on the sale of our Mexico business
Non-GAAP Reconciliation - Adjusted Net Income and EPS
(unaudited)
Quarter Ended June 30,
Six Months Ended June 30,
(in thousands, except per share data)
2020
2019
2020
2019
GAAP: Net income attributable to controlling interest
$
9,498
$
2,672
$
282
$
7,393
Adjusted for: Income tax provision
2,387
415
530
2,316
Income before income taxes attributable to controlling interest
$
11,885
$
3,087
$
812
$
9,709
Loss on sale of equity method investments1
-
-
2,000
-
Mexico transition costs2
-
1,200
-
4,600
Gain on sale of subsidiary3
-
(670
)
-
(670
)
Adjusted income before income taxes
11,885
3,617
2,812
13,639
Adjusted income tax provision
2,387
705
530
3,457
Non-GAAP: Adjusted net income attributable to controlling interest
$
9,498
$
2,912
$
2,282
$
10,182
GAAP: Earnings per diluted share
$
0.18
$
0.05
$
(0.00
)
$
0.15
Adjusted for: Income tax expense attributable to controlling
interest
0.05
0.01
0.01
0.05
Income before income taxes attributable to controlling interest
$
0.23
$
0.06
$
0.01
$
0.20
Loss on sale of equity method investments1
-
-
0.04
-
Mexico transition costs2
-
0.02
-
0.09
Gain on sale of subsidiary3
-
(0.01
)
-
(0.01
)
Adjusted income before income taxes
0.23
0.07
0.05
0.28
Adjusted income tax provision
0.05
0.01
0.01
0.07
Non-GAAP: Adjusted net income attributable to controlling interest
$
0.18
$
0.06
$
0.04
$
0.21
1 During the first quarter of 2020, we incurred loss on sale
related to an equity method investment in a former wholly owned
subsidiary 2 During the second quarter and six months ended June
30, 2019, we incurred expenses related to the exit of our Mexico
business totaling $1,200 and $4,600 3 During the second quarter of
2019, we recognized a gain on the sale of our Mexico business
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200728005887/en/
U.S. Xpress Enterprises, Inc. Brian Baubach Sr. Vice President
Corporate Finance and Investor Relations investors@usxpress.com
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