Financial News

U.S. Xpress Enterprises Reports Second Quarter 2021 Results

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

Second Quarter 2021 Financial Highlights compared to Second Quarter 2020

  • Operating revenue of $475.0 million compared to $422.5 million
  • Operating income of $8.9 million compared to $16.3 million
  • Net income attributable to controlling interest of $19.1 million, or $0.37 per diluted share, compared to $9.5 million, or $0.18 per diluted share
  • Adjusted net income attributable to controlling interest1, a non-GAAP measure, of $4.2 million, or $0.08 per diluted share compared to $9.5 million, or $0.18 per diluted share
  • Variant exited the quarter with 1,160 tractors and generated 15.5% of Truckload revenues in the quarter as compared to 4.7%
  • Xpress Technologies, the Company’s Brokerage segment, generated revenue of $96.5 million compared to $46.0 million, with 74.7% of transactions processed digitally in the second quarter of 2021 compared to 21.6%

Second-Quarter Financial Performance

Quarter Ended June 30, Six Months Ended June 30,

2021

2020

2021

2020

Operating revenue

$

475,021

 

$

422,477

 

$

925,781

 

$

855,045

 

Revenue, excluding fuel surcharge

$

437,533

 

$

393,964

 

$

855,174

 

$

786,784

 

Operating income

$

8,906

 

$

16,277

 

$

16,904

 

$

12,609

 

Net income attributable to controlling interest

$

19,096

 

$

9,498

 

$

21,634

 

$

282

 

Earnings per diluted share

$

0.37

 

$

0.18

 

$

0.42

 

$

(0.00

)

Adjusted net income attributable to controlling interest1

$

4,185

 

$

9,498

 

$

6,723

 

$

2,282

 

Adjusted earnings per diluted share1

$

0.08

 

$

0.18

 

$

0.13

 

$

0.04

 

Operating Ratio
Truckload operating ratio

 

97.7

%

 

94.6

%

 

97.9

%

 

97.1

%

Brokerage operating ratio

 

99.8

%

 

109.0

%

 

99.2

%

 

109.3

%

Operating ratio

 

98.1

%

 

96.1

%

 

98.2

%

 

98.5

%

Adjusted operating ratio1

 

98.0

%

 

95.9

%

 

98.0

%

 

98.4

%

Eric Fuller, President and CEO, commented, “From a strategic perspective, we continued to effectively execute our digital transformation plan, which underpins our goal to double revenue and significantly expand margins over the next four years. The key foundation points of our plan are to grow our Variant fleet, expand our digital brokerage, and continually optimize our freight selection algorithms. Over time, we expect these goals to lead to higher revenue and lower cost per transaction. For the second quarter, we were successful in each of these areas. Variant’s fleet grew to 1,160 tractors and remains on track to meet our goal of 1,500 tractors by the end of this year, Brokerage segment revenue more than doubled, and revenue per tractor in our OTR Truckload operations increased approximately 8% compared with the second quarter of 2020 on a healthy mix of 23% higher revenue per mile and 12% fewer miles per tractor.”

“Operationally, second-quarter results in our Brokerage and Dedicated divisions were positive. Brokerage revenue increased 110% year-over-year while gross margin expanded, and the percentage of digital transactions increased to 74.7%, and the segment swung to profitability versus a loss in the second quarter last year. Meanwhile, average revenue per tractor in Dedicated improved 5% to a new second-quarter record of $4,336 per week.”

Mr. Fuller continued, “While the freight market has been robust, our financial results are being impacted by a lower overall tractor count, tight driver market, and the duplicative cost structure required to build and develop Variant while reducing underperforming portions of our legacy OTR fleet. Exiting the second quarter, we believe we have hit the inflection point where Variant’s fleet has achieved the scale to grow at a pace faster than the expected remaining contraction of our legacy OTR fleet, and we believe we can grow overall tractor count sequentially. A larger fleet comprised of a higher percentage of more profitable Variant tractors is consistent with our long-term vision of revenue and margin expansion.”

Enterprise Update

Operating revenue was $475.0 million, an increase of $52.5 million compared to the second quarter of 2020. The increase in operating revenue was primarily attributable to revenue growth in the Company’s Brokerage segment and increased fuel surcharge revenue compared to the second quarter of 2020 offset by lower Truckload segment revenues. Excluding the impact of fuel surcharges, second-quarter revenue increased $43.6 million to $437.5 million, an increase of 11.1% compared to the second quarter of 2020.

Operating income for the second quarter of 2021 was $8.9 million compared to $16.3 million in the second quarter of 2020. The decline in operating income was primarily driven by lower fixed cost coverage resulting from lower tractor count and increases in technology and personnel expenses as well as higher net fuel costs. These factors more than offset improved Brokerage margin and continued improvement in claims experience. Operating ratio for the second quarter of 2021 was 98.1% compared to 96.1% in the second quarter of 2020.

Net income attributable to controlling interest for the second quarter of 2021 was $19.1 million compared to $9.5 million in the second quarter of 2020. Excluding the $14.9 million net of tax, unrealized gain on the Company’s investment in TuSimple, adjusted net income attributable to controlling interest1 for the second quarter of 2021 was $4.2 million, compared to $9.5 million in the second quarter of 2020. Earnings per diluted share were $0.37 compared to $0.18 in the second quarter of 2020, and adjusted earnings per diluted share1 were $0.08 for the second quarter of 2021 compared to $0.18 in the second quarter of 2020.

Truckload Segment

 

Quarter Ended June 30, Six Months Ended June 30,

 

2021

2020

2021

2020

Over the road
Average revenue per tractor per week*

$

3,837

$

3,558

$

3,778

$

3,511

Average revenue per mile*

$

2.278

$

1.855

$

2.223

$

1.863

Average revenue miles per tractor per week

 

1,684

 

1,918

 

1,699

 

1,884

Average tractors

 

3,318

 

3,825

 

3,369

 

3,830

Dedicated
Average revenue per tractor per week*

$

4,336

$

4,122

$

4,243

$

4,095

Average revenue per mile*

$

2.448

$

2.351

$

2.420

$

2.363

Average revenue miles per tractor per week

 

1,772

 

1,753

 

1,753

 

1,733

Average tractors

 

2,531

 

2,739

 

2,603

 

2,721

Consolidated
Average revenue per tractor per week*

$

4,053

$

3,793

$

3,981

$

3,753

Average revenue per mile*

$

2.354

$

2.051

$

2.311

$

2.061

Average revenue miles per tractor per week

 

1,722

 

1,849

 

1,723

 

1,821

Average tractors

 

5,849

 

6,564

 

5,972

 

6,551

* Excluding fuel surcharge revenues

The Truckload segment achieved an operating ratio of 97.7% and an adjusted operating ratio1 of 97.4% for the second quarter of 2021, a 310 and 330 basis point deterioration, respectively, compared to the operating ratio of 94.6% and the adjusted operating ratio1 of 94.1% achieved in the second quarter of 2020. Truckload revenue declined modestly, primarily due to a lower average tractor count, which more than offset higher average revenue per tractor per week. The increase in revenue per tractor per week, a key measure of asset utilization, was primarily the result of a more favorable freight market, along with the implementation of Variant’s Optimizer 2.0, which optimizes for revenue per total mile in addition to total miles per tractor.

In the OTR division, average revenue per tractor per week increased $279 or 7.8% compared to the second quarter of 2020. This improvement primarily reflected a 22.8% increase in average revenue per mile, partially offset by a 12.2% reduction in average miles per tractor.

The Dedicated division’s average revenue per tractor per week increased $214 or 5.2% compared to the second quarter of 2020 on 4.1% higher average revenue per mile and 1.1% higher revenue miles per tractor.

Mr. Fuller commented, “During the second quarter, we continued to execute on our plan as we successfully eliminated approximately 300 tractors in our underperforming legacy OTR fleet while growing Variant by approximately 200 tractors. In our Dedicated division, our team continues to successfully address pricing in certain Dedicated accounts as a result of driver and capacity cost inflation. I am pleased with our progress to date; however, we have more work to do in the second half of the year. I am optimistic that our Dedicated division is on track to deliver sequential margin improvement in the second half of the year.”

Variant Update

The Company continues to execute on its plan to have 1,500 tractors in the Variant fleet by the end of the year. The average number of tractors in this division increased approximately 25% to 1,015 tractors sequentially from the first quarter of 2021. This growth in tractor count combined with improved revenue per tractor compared to the Company’s legacy OTR division allowed Variant’s revenue to grow to 15.5% of Truckload revenues compared to 4.7% in the second quarter of 2020 and up sequentially from 11.8% in the first quarter of 2021. The Variant fleet continues to outperform the legacy OTR fleet in average revenue per tractor per week, turnover, average revenue miles per tractor per week, and preventable accidents per million miles.

Mr. Fuller noted, “At its current scale, Variant is generating an annualized revenue run rate of more than $200 million. Looking forward, we remain on track to grow Variant to 1,500 tractors by the end of the year, which would represent an annualized revenue run rate of $300 million, and approximately 25% of Truckload revenues.”

Brokerage Segment

Quarter Ended June 30, Six Months Ended June 30,

2021

2020

2021

2020

Brokerage revenue

$

96,488

 

$

46,029

 

$

178,328

 

$

96,505

 

Gross margin %

 

12.0

%

 

8.1

%

 

12.9

%

 

5.8

%

Load Count

 

44,676

 

 

40,933

 

 

86,861

 

 

84,426

 

Percentage of loads processed on digital platform

 

74.7

%

 

21.6

%

 

70.6

%

 

18.2

%

Brokerage segment revenue increased to $96.5 million in the second quarter of 2021 compared to $46.0 million in the second quarter of 2020, primarily as a result of the better rate environment, higher fuel costs, and the conversion of the Company’s portfolio from 77.3% contract and 22.7% spot in the second quarter of 2020 to 52.6% and 47.4%, respectively in the second quarter of 2021. Brokerage operating income was $0.2 million in the second quarter of 2021 compared to an operating loss of $4.2 million in the second quarter of 2020.

Mr. Fuller said, “I’m pleased with the progress in our Brokerage segment as we grew both the top line and the percentage of transactions processed digitally. Growing our Brokerage segment is a key component of our goal to double total revenues over the next four years because it offers our customers additional transportation solutions as we scale our capabilities. Looking ahead, we remain focused on growing load count and building out our network density, which we expect will lead to operating margin improvement at scale.”

Liquidity and Capital Resources

At the end of the second quarter 2021, the Company had $181.0 million of liquidity (defined as cash plus availability under the Company’s revolving credit facility), $328.0 million of net debt (defined as long-term debt, including current maturities, less cash balances), and $284.2 million of total stockholders' equity.

The Company continues to expect net capital expenditures between $130.0 million and $150.0 million for the full year 2021. The Company will continue to monitor market conditions and may change its planned capital expenditures as prudent. Through June 30, 2021, net capital expenditures were $15.2 million.

Outlook

The Company continues to expect strong freight demand for the balance of 2021 given the broader economic recovery and tailwinds from the Federal Government’s stimulus package, which had a notable impact on the Company’s operations in the first half of 2021. On the supply side, the market for professional drivers remains challenging, which is helping to keep supply tight. These conditions are expected to continue to support a strong spot market and contract renewal environment through the remainder of 2021.

From a cost perspective, inflationary pressure and higher fixed costs will continue to pressure margins until Variant growth exceeds legacy OTR decline. The Company believes the overall fleet reached its low point towards the end of second quarter of 2021 and expects total fleet size to begin growing in the third quarter, with Variant becoming an increasing percentage of the fleet.

Conference Call

The Company will hold a conference call to discuss its second-quarter results at 5:00 p.m. (Eastern Time) on July 22, 2021. The conference call can be accessed live over the phone by 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 2021 Earnings Conference Call. A replay will be available starting at 8:00 p.m. (Eastern Time) on July 22, 2021, and can be accessed by dialing 1-844-512-2921 or, for international callers, 1-412-317-6671. The passcode for the replay is 13720615. The replay will be available until 11:59 p.m. (Eastern Time) on July 29, 2021.

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

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.

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 future unit, revenue and profit growth of our Variant fleet and Brokerage segment, our ability to scale our digital businesses, statements regarding the profitability of our Dedicated division, and any other statements concerning: any projections of earnings, revenues, cash flows, capital expenditures, operating ratio, operating margin, 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; 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; classification of 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, including whether implementation of such strategies will improve profitability; 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; credit, reputational and relationship risks of certain of our current and former equity investments; our ability to maintain effective internal controls without material weaknesses; our voting control is concentrated with certain members of the Fuller and Quinn families, which limits the ability of other stockholders to influence corporate matters; 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.

USX Financial

Source: U.S. Xpress Enterprises, Inc.

Condensed Consolidated Income Statements (unaudited)
Quarter Ended June 30, Six Months Ended June 30,
(in thousands, except per share data)

2021

 

2020

 

2021

 

2020

Operating Revenue:
Revenue, excluding fuel surcharge

$

437,533

 

$

393,964

 

$

855,174

 

$

786,784

 

Fuel surcharge

 

37,488

 

 

28,513

 

 

70,607

 

 

68,261

 

Total operating revenue

 

475,021

 

 

422,477

 

 

925,781

 

 

855,045

 

Operating Expenses:
Salaries, wages and benefits

 

144,500

 

 

139,970

 

 

286,503

 

 

275,348

 

Fuel and fuel taxes

 

43,783

 

 

29,850

 

 

84,187

 

 

70,057

 

Vehicle rents

 

21,547

 

 

21,335

 

 

43,010

 

 

43,212

 

Depreciation and amortization, net of (gain) loss

 

23,205

 

 

26,283

 

 

45,587

 

 

52,086

 

Purchased transportation

 

157,489

 

 

117,366

 

 

299,150

 

 

247,120

 

Operating expense and supplies

 

34,443

 

 

31,592

 

 

66,958

 

 

67,322

 

Insurance premiums and claims

 

18,933

 

 

21,283

 

 

40,710

 

 

47,306

 

Operating taxes and licenses

 

3,247

 

 

3,720

 

 

6,516

 

 

7,397

 

Communications and utilities

 

2,964

 

 

2,256

 

 

5,352

 

 

4,708

 

General and other operating

 

16,004

 

 

12,545

 

 

30,904

 

 

27,880

 

Total operating expenses

 

466,115

 

 

406,200

 

 

908,877

 

 

842,436

 

Operating Income

 

8,906

 

 

16,277

 

 

16,904

 

 

12,609

 

Other Expenses (Income):
Interest expense, net

 

3,557

 

 

4,862

 

 

7,244

 

 

10,283

 

Other, net

 

(20,191

)

 

-

 

 

(20,191

)

 

2,000

 

 

(16,634

)

 

4,862

 

 

(12,947

)

 

12,283

 

Income Before Income Taxes

 

25,540

 

 

11,415

 

 

29,851

 

 

326

 

Income Tax Provision

 

6,443

 

 

2,387

 

 

8,093

 

 

530

 

Net Income (Loss)

 

19,097

 

 

9,028

 

 

21,758

 

 

(204

)

Net Income (Loss) attributable to non-controlling interest

 

1

 

 

(470

)

 

124

 

 

(486

)

Net Income attributable to controlling interest

$

19,096

 

$

9,498

 

$

21,634

 

$

282

 

 
Income Per Share
Basic earnings per share

$

0.38

 

$

0.19

 

$

0.43

 

$

0.01

 

Basic weighted average shares outstanding

 

50,334

 

 

49,499

 

 

50,156

 

 

49,358

 

Diluted earnings per share

$

0.37

 

$

0.18

 

$

0.42

 

$

(0.00

)

Diluted weighted average shares outstanding

 

51,848

 

 

50,215

 

 

51,705

 

 

49,518

 

Condensed Consolidated Balance Sheets (unaudited)
June 30, December 31,
(in thousands)

2021

2020

Assets
Current assets:
Cash and cash equivalents

$

5,275

 

$

5,505

 

Customer receivables, net of allowance of $150 and $157, respectively

 

220,264

 

 

189,869

 

Other receivables

 

17,198

 

 

19,203

 

Prepaid insurance and licenses

 

9,685

 

 

14,265

 

Operating supplies

 

9,729

 

 

8,953

 

Assets held for sale

 

18,188

 

 

12,382

 

Other current assets

 

27,379

 

 

16,263

 

Total current assets

 

307,718

 

 

266,440

 

Property and equipment, at cost

 

863,459

 

 

896,264

 

Less accumulated depreciation and amortization

 

(391,669

)

 

(394,603

)

Net property and equipment

 

471,790

 

 

501,661

 

Other assets:
Operating lease right-of-use assets

 

263,099

 

 

287,251

 

Goodwill

 

59,221

 

 

59,221

 

Intangible assets, net

 

24,723

 

 

25,513

 

Other

 

50,576

 

 

39,504

 

Total other assets

 

397,619

 

 

411,489

 

Total assets

$

1,177,127

 

$

1,179,590

 

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable

$

100,864

 

$

83,621

 

Book overdraft

 

5,873

 

 

-

 

Accrued wages and benefits

 

40,866

 

 

40,095

 

Claims and insurance accruals

 

45,674

 

 

47,667

 

Other accrued liabilities

 

5,639

 

 

5,986

 

Current portion of operating leases

 

76,512

 

 

78,193

 

Current maturities of long-term debt and finance leases

 

76,616

 

 

103,690

 

Total current liabilities

 

352,044

 

 

359,252

 

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

 

257,088

 

 

255,287

 

Less debt issuance costs

 

(381

)

 

(314

)

Net long-term debt and finance leases

 

256,707

 

 

254,973

 

Deferred income taxes

 

32,786

 

 

25,162

 

Other long-term liabilities

 

14,809

 

 

14,615

 

Claims and insurance accruals, long-term

 

47,472

 

 

55,420

 

Noncurrent operating lease liability

 

187,576

 

 

209,311

 

Commitments and contingencies

 

-

 

 

-

 

Stockholders' Equity:
Common stock

 

503

 

 

497

 

Additional paid-in capital

 

264,450

 

 

261,338

 

Retained earnings (deficit)

 

19,204

 

 

(2,430

)

Stockholders' equity

 

284,157

 

 

259,405

 

Noncontrolling interest

 

1,576

 

 

1,452

 

Total stockholders' equity

 

285,733

 

 

260,857

 

Total liabilities and stockholders' equity

$

1,177,127

 

$

1,179,590

 

 
Condensed Consolidated Cash Flow Statements (unaudited)
Six Months Ended June 30,
(in thousands)

2021

2020

Operating activities
Net income (loss)

$

21,758

 

$

(204

)

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

 

7,624

 

 

301

 

Depreciation and amortization

 

41,036

 

 

45,683

 

Losses on sale of property and equipment

 

4,551

 

 

6,403

 

Share based compensation

 

3,791

 

 

2,000

 

Other

 

381

 

 

2,967

 

Unrealized gain on investment

 

(20,191

)

 

-

 

Changes in operating assets and liabilities
Receivables

 

(27,163

)

 

(3,027

)

Prepaid insurance and licenses

 

4,580

 

 

1,933

 

Operating supplies

 

(724

)

 

95

 

Other assets

 

(1,967

)

 

1,085

 

Accounts payable and other accrued liabilities

 

5,954

 

 

11,822

 

Accrued wages and benefits

 

771

 

 

2,738

 

Net cash provided by operating activities

 

40,401

 

 

71,796

 

Investing activities
Payments for purchases of property and equipment

 

(62,851

)

 

(87,270

)

Proceeds from sales of property and equipment

 

47,660

 

 

24,101

 

Other

 

-

 

 

(1,880

)

Net cash used in investing activities

 

(15,191

)

 

(65,049

)

Financing activities
Borrowings under lines of credit

 

138,812

 

 

180,254

 

Payments under lines of credit

 

(123,812

)

 

(180,254

)

Borrowings under long-term debt

 

38,116

 

 

183,662

 

Payments of long-term debt and finance leases

 

(83,961

)

 

(196,742

)

Payments of financing costs

 

(100

)

 

(1,276

)

Net proceeds from issuance of common stock under ESPP

 

538

 

 

420

 

Tax withholding related to net share settlement of restricted stock awards

 

(1,211

)

 

(93

)

Payments of long-term consideration for business acquisition

 

-

 

 

(1,000

)

Proceeds from long-term consideration for sale of subsidiary

 

305

 

 

290

 

Book overdraft

 

5,873

 

 

3,631

 

Net cash used in financing activities

 

(25,440

)

 

(11,108

)

Net change in cash and cash equivalents

 

(230

)

 

(4,361

)

Cash and cash equivalents
Beginning of year

 

5,505

 

 

5,687

 

End of period

$

5,275

 

$

1,326

 

Key Operating Factors & Truckload Statistics (unaudited)
 
Quarter Ended June 30, % Six Months Ended June 30, %

2021

2020

 

Change

 

2021

2020

 

Change

Operating Revenue:
Truckload1

$

341,045

 

$

347,935

 

-2.0

%

$

676,846

 

$

690,279

 

-1.9

%

Fuel Surcharge

 

37,488

 

 

28,513

 

31.5

%

 

70,607

 

 

68,261

 

3.4

%

Brokerage

 

96,488

 

 

46,029

 

109.6

%

 

178,328

 

 

96,505

 

84.8

%

Total Operating Revenue

$

475,021

 

$

422,477

 

12.4

%

$

925,781

 

$

855,045

 

8.3

%

 
Operating Income (Loss):
Truckload

$

8,745

 

$

20,428

 

-57.2

%

$

15,472

 

$

21,628

 

-28.5

%

Brokerage

$

161

 

$

(4,151

)

-103.9

%

$

1,432

 

$

(9,019

)

-115.9

%

$

8,906

 

$

16,277

 

-45.3

%

$

16,904

 

$

12,609

 

34.1

%

 
Operating Ratio:
Operating Ratio

 

98.1

%

 

96.1

%

2.1

%

 

98.2

%

 

98.5

%

-0.3

%

Adjusted Operating Ratio2

 

98.0

%

 

95.9

%

2.2

%

 

98.0

%

 

98.4

%

-0.4

%

 
Truckload Operating Ratio

 

97.7

%

 

94.6

%

3.3

%

 

97.9

%

 

97.1

%

0.8

%

Adjusted Truckload Operating Ratio2

 

97.4

%

 

94.1

%

3.5

%

 

97.7

%

 

96.9

%

0.9

%

Brokerage Operating Ratio

 

99.8

%

 

109.0

%

-8.4

%

 

99.2

%

 

109.3

%

-9.2

%

 
Truckload Statistics:
Revenue Per Mile1

$

2.354

 

$

2.051

 

14.8

%

$

2.311

 

$

2.061

 

12.1

%

 
Average Tractors -
Company Owned

 

4,517

 

 

4,777

 

-5.4

%

 

4,556

 

 

4,762

 

-4.3

%

Owner Operators

 

1,332

 

 

1,787

 

-25.5

%

 

1,417

 

 

1,789

 

-20.8

%

Total Average Tractors

 

5,849

 

 

6,564

 

-10.9

%

 

5,973

 

 

6,551

 

-8.8

%

 
Average Revenue Miles Per Tractor

Per Week

 

1,722

 

 

1,849

 

-6.9

%

 

1,723

 

 

1,821

 

-5.4

%

 
Average Revenue Per Tractor

Per Week1

$

4,053

 

$

3,793

 

6.9

%

$

3,981

 

$

3,753

 

6.1

%

 
Total Miles

 

145,405

 

 

175,833

 

-17.3

%

 

294,968

 

 

345,020

 

-14.5

%

 
Total Company Miles

 

111,558

 

 

125,743

 

-11.3

%

 

223,263

 

 

243,869

 

-8.4

%

 
Total Independent Contractor Miles

 

33,847

 

 

50,090

 

-32.4

%

 

71,705

 

 

101,151

 

-29.1

%

 
Independent Contractor fuel surcharge

 

8,422

 

 

7,311

 

15.2

%

 

16,082

 

 

18,522

 

-13.2

%

 
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)

2021

2020

2021

2020

GAAP Presentation:
Total revenue

$

475,021

 

$

422,477

 

$

925,781

 

$

855,045

 

Total operating expenses

 

(466,115

)

 

(406,200

)

 

(908,877

)

 

(842,436

)

Operating income

$

8,906

 

$

16,277

 

$

16,904

 

$

12,609

 

Operating ratio

 

98.1

%

 

96.1

%

 

98.2

%

 

98.5

%

 
Non-GAAP Presentation
Total revenue

$

475,021

 

$

422,477

 

$

925,781

 

$

855,045

 

Fuel surcharge

 

(37,488

)

 

(28,513

)

 

(70,607

)

 

(68,261

)

Revenue, excluding fuel surcharge

 

437,533

 

 

393,964

 

 

855,174

 

 

786,784

 

 
Total operating expenses

 

466,115

 

 

406,200

 

 

908,877

 

 

842,436

 

Adjusted for:
Fuel surcharge

 

(37,488

)

 

(28,513

)

 

(70,607

)

 

(68,261

)

Adjusted operating expenses

 

428,627

 

 

377,687

 

 

838,270

 

 

774,175

 

Adjusted Operating Income

$

8,906

 

$

16,277

 

$

16,904

 

$

12,609

 

Adjusted operating ratio

 

98.0

%

 

95.9

%

 

98.0

%

 

98.4

%

 
 
Non-GAAP Reconciliation - Truckload Adjusted Operating Income and Adjusted Operating Ratio (unaudited)
 
Quarter Ended June 30, Six Months Ended June 30,
(in thousands)

2021

2020

2021

2020

Truckload GAAP Presentation:
Total Truckload revenue

$

378,533

 

$

376,448

 

$

747,453

 

$

758,540

 

Total Truckload operating expenses

 

(369,788

)

 

(356,020

)

 

(731,981

)

 

(736,912

)

Truckload operating income

$

8,745

 

$

20,428

 

$

15,472

 

$

21,628

 

Truckload operating ratio

 

97.7

%

 

94.6

%

 

97.9

%

 

97.1

%

 
Truckload Non-GAAP Presentation
Total Truckload revenue

$

378,533

 

$

376,448

 

$

747,453

 

$

758,540

 

Fuel surcharge

 

(37,488

)

 

(28,513

)

 

(70,607

)

 

(68,261

)

Revenue, excluding fuel surcharge

 

341,045

 

 

347,935

 

 

676,846

 

 

690,279

 

 
Total Truckload operating expenses

 

369,788

 

 

356,020

 

 

731,981

 

 

736,912

 

Adjusted for:
Fuel surcharge

 

(37,488

)

 

(28,513

)

 

(70,607

)

 

(68,261

)

Truckload Adjusted operating expenses

 

332,300

 

 

327,507

 

 

661,374

 

 

668,651

 

Truckload Adjusted operating income

$

8,745

 

$

20,428

 

$

15,472

 

$

21,628

 

Truckload Adjusted operating ratio

 

97.4

%

 

94.1

%

 

97.7

%

 

96.9

%

Non-GAAP Reconciliation - Adjusted Net Income and EPS (unaudited)
 
Quarter Ended June 30, Six Months Ended June 30,
(in thousands, except per share data)

2021

2020

2021

2020

GAAP: Net income attributable to controlling interest

$

19,096

 

$

9,498

$

21,634

 

$

282

 

Adjusted for:
Income tax provision

 

6,443

 

 

2,387

 

8,093

 

 

530

 

Income before income taxes attributable to controlling interest

$

25,539

 

$

11,885

$

29,727

 

$

812

 

Unrealized gain on equity investment1

 

(20,191

)

 

-

 

(20,191

)

 

-

 

Loss on sale of equity method investment2

 

-

 

 

-

 

2,000

 

Adjusted income before income taxes

 

5,348

 

 

11,885

 

9,536

 

 

2,812

 

Adjusted income tax provision

 

1,163

 

 

2,387

 

2,813

 

 

530

 

Non-GAAP: Adjusted net income attributable to controlling interest

$

4,185

 

$

9,498

$

6,723

 

$

2,282

 

 
GAAP: Earnings per diluted share

$

0.37

 

$

0.18

$

0.42

 

$

(0.00

)

Adjusted for:
Income tax expense attributable to controlling interest

 

0.12

 

 

0.05

 

0.15

 

 

0.01

 

Income before income taxes attributable to controlling interest

$

0.49

 

$

0.23

$

0.57

 

$

0.01

 

Unrealized gain on equity investment1

 

(0.39

)

 

-

 

(0.39

)

 

-

 

Loss on sale of equity method investment2

 

-

 

 

-

 

-

 

 

0.04

 

Adjusted income before income taxes

 

0.10

 

 

0.23

 

0.18

 

 

0.05

 

Adjusted income tax provision

 

0.02

 

 

0.05

 

0.05

 

 

0.01

 

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

$

0.08

 

$

0.18

$

0.13

 

$

0.04

 

 
1During the second quarter of 2021, we recognized an unrealized gain on our TuSimple equity investment
2During the first quarter of 2020, we incurred loss on sale related to an equity method investment in a former wholly owned subsidiary

 

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