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MarketScreener Homepage  >  Equities  >  Nyse  >  U.S. Xpress Enterprises, Inc.    USX

U.S. XPRESS ENTERPRISES, INC.

(USX)
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U S Xpress Enterprises : Reports Third Quarter 2020 Results

10/22/2020 | 04:11pm EST

U.S. Xpress Enterprises, Inc. (NYSE: USX) (the “Company”) today announced results for the third quarter of 2020.

Third Quarter 2020 Financial Highlights

  • Operating revenue of $431.5 million compared to $428.5 million in the third quarter of 2019
  • Operating income of $15.9 million compared to $3.3 million in the third quarter of 2019
  • Operating ratio of 96.3% compared to 99.2% in the third quarter of 2019
  • Adjusted operating ratio1, a non-GAAP measure, of 96.1% compared to 99.2% in the third quarter of 2019
  • Truckload operating ratio improved 450 basis points to 94.6% from 99.1% in the third quarter of 2019
  • Net income attributable to controlling interest of $10.7 million, or $0.20 per diluted share, compared to a loss of $1.4 million in the third quarter of 2019, or a loss of $0.03 per diluted share

Third Quarter Financial Performance

 

Quarter Ended September 30,

 

Nine Months Ended September 30,

2020

 

2019

 

2020

 

2019

Operating revenue

$

431,469

 

$

428,503

 

$

1,286,514

 

$

1,257,728

 

Revenue, excluding fuel surcharge

$

403,679

 

$

386,666

 

$

1,190,463

 

$

1,133,162

 

Operating income

$

15,891

 

$

3,282

 

$

28,500

 

$

24,707

 

Adjusted operating income1

$

15,891

 

$

3,282

 

$

28,500

 

$

28,637

 

Operating ratio

 

96.3

%

 

99.2

%

 

97.8

%

 

98.0

%

Adjusted operating ratio1

 

96.1

%

 

99.2

%

 

97.6

%

 

97.5

%

Net income attributable to controlling interest

$

10,696

 

$

(1,446

)

$

10,978

 

$

5,947

 

Adjusted net income attributable to controlling interest1

$

10,696

 

$

(1,446

)

$

12,978

 

$

8,736

 

Earnings per diluted share

$

0.20

 

$

(0.03

)

$

0.20

 

$

0.12

 

Adjusted earnings per diluted share1

$

0.20

 

$

(0.03

)

$

0.24

 

$

0.18

 

 

Eric Fuller, President and CEO, commented, “This is an exciting time at U.S. Xpress as we transform our business with the goal of delivering not only peer levels of profitability but also deploy an operating model that is being purposefully built to organically scale over time. Through the third quarter, we continued to scale our digital fleet, adding approximately 100 average tractors representing more than 25% sequential growth as compared with the second quarter. The digital fleet business model, now branded as Variant, continues to prove out, maintaining a more than 20% advantage in utilization, an approximately 70% reduction in driver turnover, and substantially fewer accidents per million miles than the legacy Over-the-Road, or OTR, fleet. This provides real confidence in the scalability of our digital model as we work toward our goal of transitioning an additional 400 underperforming tractors in our legacy OTR solo fleet by the end of the first quarter of 2021 as part of our Phase 1 conversion of 900 tractors.”

Mr. Fuller continued, “Our third quarter truckload operating ratio improved to 94.6% or a 450 basis points improvement over the prior year. The improvement was tempered somewhat by a higher percentage of unseated trucks in our legacy OTR fleet due to increased competition for drivers and suspension of our student program during the second quarter, which contributed to an approximate 6% reduction in miles driven during the quarter. Looking forward, adjustments we have made over the past two months to our digital fleet recruiting program are beginning to deliver increased hiring momentum through October, contract rates are renewing at higher levels, brokerage margins expanded as we exited the quarter, and our consolidated safety record is the best in the Company’s modern history. We believe the efficiency and technology changes we are implementing are gaining momentum and position us to positively impact our profitability through next year.”

Enterprise Update

Operating revenue was $431.5 million, an increase of $3.0 million compared to the third quarter of 2019. The increase was primarily attributable to increased revenues in the Company’s Brokerage division of $9.9 million, an increase of $7.1 million in Truckload revenue, and decreased fuel surcharge revenues of $14.0 million. Excluding the impact of fuel surcharges, third quarter revenue increased $17.0 million to $403.7 million, an increase of 4.4% as compared to the prior year quarter.

Operating income for the third quarter of 2020 was $15.9 million which compares favorably to the $3.3 million in the third quarter of 2019. Operating ratio for the third quarter of 2020 was 96.3% compared to 99.2% in the prior year quarter.

Net income attributable to controlling interest for the third quarter of 2020 was $10.7 million compared to a loss of $1.4 million in the prior year quarter. Earnings per diluted share were $0.20 for the third quarter of 2020 and adjusted earnings per diluted share1 were $0.20.

Truckload Segment

 

Quarter Ended September 30,

 

Nine Months Ended September 30,

2020

 

2019

 

2020

 

2019

Over the road
Average revenue per tractor per week*

$

3,680

$

3,479

$

3,566

$

3,572

Average revenue per mile*

$

2.047

$

1.910

$

1.921

$

1.949

Average revenue miles per tractor per week

 

1,798

 

1,821

 

1,856

 

1,832

Average tractors

 

3,684

 

3,785

 

3,781

 

3,671

Dedicated
Average revenue per tractor per week*

$

4,065

$

4,011

$

4,085

$

3,998

Average revenue per mile*

$

2.353

$

2.408

$

2.360

$

2.367

Average revenue miles per tractor per week

 

1,728

 

1,666

 

1,731

 

1,689

Average tractors

 

2,710

 

2,748

 

2,717

 

2,693

Consolidated
Average revenue per tractor per week*

$

3,843

$

3,703

$

3,783

$

3,752

Average revenue per mile*

$

2.173

$

2.109

$

2.097

$

2.118

Average revenue miles per tractor per week

 

1,768

 

1,756

 

1,804

 

1,772

Average tractors

 

6,394

 

6,533

 

6,498

 

6,364

* Excluding fuel surcharge revenues

The Truckload segment achieved an operating ratio of 94.6% and an adjusted operating ratio1 of 94.1% for the third quarter of 2020, a 450 and 490 basis point improvement, respectively, compared to the operating ratio of 99.2% and the adjusted operating ratio1 of 99.0% achieved in the third quarter of 2019. This improvement was primarily the result of higher rate per mile combined with lower claims expense and other costs as the Company continued to execute on its digital initiatives while maintaining a focus on reducing fixed and variable costs.

In the OTR division, average revenue per tractor per week increased 5.8% compared with the third quarter of 2019. Primarily the result of a 7.2% increase in average revenue per mile partially offset by a 1.3% decrease in revenue miles per tractor per week.

Mr. Fuller added, “The trucking environment shifted rapidly during the third quarter, which meaningfully impacted spot market rates, driver recruiting and retention costs, and seated truck count. The impact on the third quarter was mixed. Higher rates on the uncommitted portion of our OTR fleet helped drive higher revenue per truck and bodes well for contract renewals and bids over the next several quarters. Because the vast majority of our fleet is under contracts, the expected benefit of higher rates will come over time. However, the strong market caused immediate driver-related cost increases and more unseated trucks. In essence, dramatically improved revenue across a relatively small portion of our fleet supported cost increases across the entire fleet. Meanwhile, the benefits of our strategic shift away from student drivers led to higher unseated trucks in the near term, but also contributed to the best safety performance, as measured by reportable accidents per million miles, in recent memory and sequentially lower claims costs. As the benefits of contract renewals, digital fleet growth, and safety experience compound over coming quarters, we expect the benefits to far outweigh the third quarter costs.”

The Dedicated division’s average revenue per tractor per week increased $54 per tractor per week, or 1.3%, compared to the third quarter of 2019 primarily a result of a 3.7% increase in revenue miles per tractor per week partially offset by a 2.3% reduction in average revenue per mile.

Mr. Fuller concluded, “Our Dedicated division continues to perform at record levels having delivered its sixth consecutive quarter of average revenue per tractor per week in excess of $4,000. We remain focused on organically growing the Dedicated division given the stability that the business provides through economic cycles.”

Digital Fleet (now branded as “Variant”) Conversion Update

The Company continues to make progress on its initiative to have 900 tractors in the digital fleet component of its OTR division by the end of the first quarter of 2021. The average number of tractors in this division increased approximately 100 average tractors to 500 tractors sequentially from the second quarter of 2020. The Company also continues to see improved operating metrics compared to its legacy OTR fleet, including:

  • Utilization continues to track ~20% better
  • Turnover continues to track ~70% lower
  • Accidents per million miles continue to track ~30% lower

Brokerage Segment

 

Quarter Ended September 30,

 

Nine Months Ended September 30,

2020

 

2019

 

2020

 

2019

Brokerage revenue

$

55,970

 

$

46,036

 

$

152,475

 

$

131,737

 

Gross margin %

 

6.7

%

 

12.0

%

 

6.1

%

 

15.2

%

Load Count

 

38,779

 

 

36,634

 

 

123,205

 

 

100,154

 

 

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 $56.0 million in the third quarter of 2020 compared to $46.0 million in the third quarter of 2019, primarily as a result of increased revenue per load and to a lesser extent an increase in load count. Brokerage operating loss was $4.5 million in the third quarter of 2020 as compared to an operating loss of $0.1 million in the year ago quarter. The Company continues to work on sequentially improving margins in this division.

Liquidity and Capital Resources

At the end of the third quarter 2020, the Company had $154.9 million of liquidity (defined as cash plus availability under the Company’s revolving credit facility), $386.3 million of net debt (defined as long-term debt, including current maturities, less cash balances), and $252.2 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. Through September 30, 2020, net capital expenditures were $95.3 million including the carryover $20 million from 2019.

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, increasing inventory re-stocking, tight trucking capacity, and a relatively benign cost inflation outside of driver-related and insurance premium expenses. These conditions are expected to continue to support spot market rates in excess of contract rates and a strengthening contract renewal environment over the next several quarters. Based on these assumptions, the Company expects its internal initiatives around digitization and cost management, combined with continued strength in Dedicated, to have U.S. Xpress well positioned to continue improving its margins through 2021.

Conference Call

The Company will hold a conference call to discuss its third quarter results at 5:00 p.m. (Eastern Time) on October 22, 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 Third Quarter 2020 Earnings Conference Call. A replay will be available starting at 8:00 p.m. (Eastern Time) on October 22, 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 13711865. The replay will be available until 11:59 p.m. (Eastern Time) on October 29, 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 rates, expected margins, future growth of our digital fleet and Dedicated division, expected net capital expenditures, the expected impact of our driver, digital fleet, 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 September 30,

 

Nine Months Ended September 30,

(in thousands, except per share data)

2020

 

2019

 

2020

 

2019

Operating Revenue:
Revenue, excluding fuel surcharge

$

403,679

 

$

386,666

 

$

1,190,463

 

$

1,133,162

 

Fuel surcharge

 

27,790

 

 

41,837

 

 

96,051

 

 

124,566

 

Total operating revenue

 

431,469

 

 

428,503

 

 

1,286,514

 

 

1,257,728

 

Operating Expenses:
Salaries, wages and benefits

 

137,541

 

 

134,862

 

 

412,889

 

 

389,907

 

Fuel and fuel taxes

 

33,208

 

 

47,315

 

 

103,265

 

 

141,252

 

Vehicle rents

 

20,956

 

 

19,470

 

 

64,168

 

 

57,025

 

Depreciation and amortization, net of (gain) loss

 

25,785

 

 

26,684

 

 

77,871

 

 

74,498

 

Purchased transportation

 

125,997

 

 

122,433

 

 

373,117

 

 

349,017

 

Operating expense and supplies

 

33,927

 

 

36,147

 

 

101,249

 

 

104,744

 

Insurance premiums and claims

 

17,835

 

 

19,570

 

 

65,141

 

 

63,189

 

Operating taxes and licenses

 

3,359

 

 

3,533

 

 

10,756

 

 

10,112

 

Communications and utilities

 

2,187

 

 

2,209

 

 

6,895

 

 

6,659

 

Gain on sale of subsidiary

 

-

 

 

-

 

 

-

 

 

(670

)

General and other operating

 

14,783

 

 

12,998

 

 

42,663

 

 

37,288

 

Total operating expenses

 

415,578

 

 

425,221

 

 

1,258,014

 

 

1,233,021

 

Operating Income

 

15,891

 

 

3,282

 

 

28,500

 

 

24,707

 

Other Expenses (Income):
Interest Expense, net

 

4,381

 

 

5,467

 

 

14,664

 

 

16,366

 

Equity in loss of affiliated companies

 

-

 

 

91

 

 

-

 

 

270

 

Other, net

 

-

 

 

-

 

 

2,000

 

 

26

 

 

4,381

 

 

5,558

 

 

16,664

 

 

16,662

 

Income Before Income Taxes

 

11,510

 

 

(2,276

)

 

11,836

 

 

8,045

 

Income Tax Provision

 

1,337

 

 

(813

)

 

1,867

 

 

1,503

 

Net Income (Loss)

 

10,173

 

 

(1,463

)

 

9,969

 

 

6,542

 

Net Income (Loss) attributable to non-controlling interest

 

(523

)

 

(17

)

 

(1,009

)

 

595

 

Net Income (Loss) attributable to controlling interest

$

10,696

 

$

(1,446

)

$

10,978

 

$

5,947

 

 
Income Per Share
Basic earnings (loss) per share

$

0.22

 

$

(0.03

)

$

0.22

 

$

0.12

 

Basic weighted average shares outstanding

 

49,667

 

 

48,984

 

 

49,462

 

 

48,709

 

Diluted earnings (loss) per share

$

0.20

 

$

(0.03

)

$

0.20

 

$

0.12

 

Diluted weighted average shares outstanding

 

51,194

 

 

48,984

 

 

50,493

 

 

49,289

 

 
 
Condensed Consolidated Balance Sheets (unaudited)

September 30,

 

December 31,

(in thousands)

2020

 

2019

Assets
Current assets:
Cash and cash equivalents

$

7,422

 

$

5,687

 

Customer receivables, net of allowance of $185 and $63, respectively

 

190,644

 

 

183,706

 

Other receivables

 

16,345

 

 

15,253

 

Prepaid insurance and licenses

 

23,073

 

 

11,326

 

Operating supplies

 

8,249

 

 

7,193

 

Assets held for sale

 

25,623

 

 

17,732

 

Other current assets

 

16,405

 

 

15,831

 

Total current assets

 

287,761

 

 

256,728

 

Property and equipment, at cost

 

900,719

 

 

880,101

 

Less accumulated depreciation and amortization

 

(397,263

)

 

(388,318

)

Net property and equipment

 

503,456

 

 

491,783

 

Other assets:
Operating lease right-of-use assets

 

280,687

 

 

276,618

 

Goodwill

 

59,221

 

 

57,708

 

Intangible assets, net

 

25,938

 

 

27,214

 

Other

 

33,979

 

 

30,058

 

Total other assets

 

399,825

 

 

391,598

 

Total assets

$

1,191,042

 

$

1,140,109

 

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable

$

77,646

 

$

68,918

 

Book overdraft

 

-

 

 

1,313

 

Accrued wages and benefits

 

32,095

 

 

24,110

 

Claims and insurance accruals

 

51,571

 

 

51,910

 

Other accrued liabilities

 

7,483

 

 

9,127

 

Current portion of operating leases

 

74,357

 

 

69,866

 

Current maturities of long-term debt and finance leases

 

111,232

 

 

80,247

 

Total current liabilities

 

354,384

 

 

305,491

 

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

 

282,453

 

 

315,797

 

Less debt issuance costs

 

(325

)

 

(1,223

)

Net long-term debt and finance leases

 

282,128

 

 

314,574

 

Deferred income taxes

 

22,236

 

 

20,692

 

Other long-term liabilities

 

18,710

 

 

5,249

 

Claims and insurance accruals, long-term

 

55,174

 

 

56,910

 

Noncurrent operating lease liability

 

206,190

 

 

206,357

 

Commitments and contingencies

 

-

 

 

-

 

Stockholders' Equity:
Common Stock

 

496

 

 

490

 

Additional paid-in capital

 

260,365

 

 

250,700

 

Accumulated deficit

 

(10,004

)

 

(20,982

)

Stockholders' equity

 

250,857

 

 

230,208

 

Noncontrolling interest

 

1,363

 

 

628

 

Total stockholders' equity

 

252,220

 

 

230,836

 

Total liabilities and stockholders' equity

$

1,191,042

 

$

1,140,109

 

 
 
Condensed Consolidated Cash Flow Statements (unaudited)

Nine Months Ended September 30,

(in thousands)

2020

 

2019

Operating activities
Net income

$

9,969

 

$

6,542

 

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

 

1,543

 

 

1,018

 

Depreciation and amortization

 

68,104

 

 

68,813

 

Losses on sale of property and equipment

 

9,767

 

 

5,685

 

Share based compensation

 

3,421

 

 

2,810

 

Other

 

3,186

 

 

783

 

Gain on sale of subsidiary

 

-

 

 

(670

)

Changes in operating assets and liabilities
Receivables

 

(8,354

)

 

(5,650

)

Prepaid insurance and licenses

 

(11,747

)

 

(12,189

)

Operating supplies

 

(204

)

 

(443

)

Other assets

 

(3,047

)

 

(4,800

)

Accounts payable and other accrued liabilities

 

21,413

 

 

22,076

 

Accrued wages and benefits

 

7,863

 

 

(729

)

Net cash provided by operating activities

 

101,914

 

 

83,246

 

Investing activities
Payments for purchases of property and equipment

 

(129,582

)

 

(127,899

)

Proceeds from sales of property and equipment

 

36,192

 

 

33,301

 

Other

 

(1,880

)

 

(2,000

)

Proceeds from sale of subsidiary, net of cash

 

-

 

 

(6,432

)

Net cash used in investing activities

 

(95,270

)

 

(103,030

)

Financing activities
Borrowings under lines of credit

 

231,254

 

 

56,200

 

Payments under lines of credit

 

(231,254

)

 

(53,300

)

Borrowings under long-term debt

 

228,981

 

 

78,803

 

Payments of long-term debt and finance leases

 

(231,340

)

 

(73,472

)

Payments of financing costs

 

(1,391

)

 

(170

)

Net proceeds from issuance of common stock under ESPP

 

851

 

 

349

 

Tax withholding related to net share settlement of restricted stock awards

 

(135

)

 

(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

 

438

 

 

-

 

Book overdraft

 

(1,313

)

 

3,833

 

Net cash (used in) provided by financing activities

 

(4,909

)

 

2,550

 

Change in cash balances of assets held for sale

 

-

 

 

11,784

 

Net change in cash and cash equivalents

 

1,735

 

 

(5,450

)

Cash and cash equivalents
Beginning of year

 

5,687

 

 

9,892

 

End of period

$

7,422

 

$

4,442

 

 
 
Key Operating Factors & Truckload Statistics (unaudited)
 

Quarter Ended September 30,

 

%

 

Nine Months Ended September 30,

 

%

2020

 

2019

 

Change

 

2020

 

2019

 

Change

Operating Revenue:
Truckload1

$

347,709

 

$

340,630

 

2.1

%

$

1,037,988

 

$

1,001,425

 

3.7

%

Fuel Surcharge

 

27,790

 

 

41,837

 

-33.6

%

 

96,051

 

 

124,566

 

-22.9

%

Brokerage

 

55,970

 

 

46,036

 

21.6

%

 

152,475

 

 

131,737

 

15.7

%

Total Operating Revenue

$

431,469

 

$

428,503

 

0.7

%

$

1,286,514

 

$

1,257,728

 

2.3

%

 
Operating Income (Loss):
Truckload

$

20,407

 

$

3,345

 

510.1

%

$

42,035

 

$

20,689

 

103.2

%

Brokerage

$

(4,516

)

$

(63

)

n/m

 

$

(13,535

)

$

4,018

 

n/m

 

$

15,891

 

$

3,282

 

384.2

%

$

28,500

 

$

24,707

 

15.4

%

 
Operating Ratio:
Operating Ratio

 

96.3

%

 

99.2

%

-2.9

%

 

97.8

%

 

98.0

%

-0.2

%

Adjusted Operating Ratio2

 

96.1

%

 

99.2

%

-3.1

%

 

97.6

%

 

97.5

%

0.1

%

 
Truckload Operating Ratio

 

94.6

%

 

99.1

%

-4.5

%

 

96.3

%

 

98.2

%

-1.9

%

Adjusted Truckload Operating Ratio2

 

94.1

%

 

99.0

%

-4.9

%

 

96.0

%

 

97.5

%

-1.6

%

Brokerage Operating Ratio

 

108.1

%

 

100.1

%

8.0

%

 

108.9

%

 

96.9

%

12.4

%

 
Truckload Statistics:
Revenue Per Mile1

$

2.173

 

$

2.109

 

3.0

%

$

2.097

 

$

2.118

 

-1.0

%

 
Average Tractors -
Company Owned

 

4,700

 

 

4,692

 

0.2

%

 

4,741

 

 

4,639

 

2.2

%

Owner Operators

 

1,694

 

 

1,841

 

-8.0

%

 

1,757

 

 

1,725

 

1.9

%

Total Average Tractors

 

6,394

 

 

6,533

 

-2.1

%

 

6,498

 

 

6,364

 

2.1

%

 
Average Revenue Miles Per Tractor
Per Week

 

1,768

 

 

1,756

 

0.7

%

 

1,804

 

 

1,772

 

1.8

%

 
Average Revenue Per Tractor
Per Week1

$

3,843

 

$

3,703

 

3.8

%

$

3,783

 

$

3,752

 

0.8

%

 
Total Miles

 

165,206

 

 

168,153

 

-1.8

%

 

510,220

 

 

487,354

 

4.7

%

 
Total Company Miles

 

119,014

 

 

118,374

 

0.5

%

 

362,882

 

 

346,499

 

4.7

%

 
Total Independent Contractor Miles

 

46,192

 

 

49,779

 

-7.2

%

 

147,338

 

 

140,855

 

4.6

%

 
Independent Contractor fuel surcharge

$

6,838

 

$

11,874

 

-42.4

%

$

25,360

 

$

34,587

 

-26.7

%

 
1 Excluding fuel surcharge revenues
2 See GAAP to non-GAAP reconciliation in the schedules following this release
 
Non-GAAP Reconciliation - Adjusted Net Income and EPS (unaudited)
 

Quarter Ended September 30,

 

Nine Months Ended September 30,

(in thousands, except per share data)

2020

 

2019

 

2020

 

2019

GAAP: Net income attributable to controlling interest

$

10,696

$

(1,446

)

$

10,978

$

5,947

 

Adjusted for:
Income tax provision

 

1,337

 

(813

)

 

1,867

 

1,503

 

Income before income taxes attributable to controlling interest

$

12,033

$

(2,259

)

$

12,845

$

7,450

 

Loss on sale of equity method investments1

 

-

 

-

 

 

2,000

 

-

 

Mexico transition costs2

 

-

 

-

 

 

-

 

4,600

 

Gain on sale of subsidiary3

 

-

 

-

 

 

-

 

(670

)

Adjusted income before income taxes

 

12,033

 

(2,259

)

 

14,845

 

11,380

 

Adjusted income tax provision

 

1,337

 

(813

)

 

1,867

 

2,644

 

Non-GAAP: Adjusted net income attributable to controlling interest

$

10,696

$

(1,446

)

$

12,978

$

8,736

 

 
GAAP: Earnings per diluted share

$

0.20

$

(0.03

)

$

0.20

$

0.12

 

Adjusted for:
Income tax expense attributable to controlling interest

 

0.03

 

(0.02

)

 

0.04

 

0.03

 

Income before income taxes attributable to controlling interest

$

0.23

$

(0.05

)

$

0.24

$

0.15

 

Loss on sale of equity method investments1

 

-

 

-

 

 

0.04

 

-

 

Mexico transition costs2

 

-

 

-

 

 

-

 

0.09

 

Gain on sale of subsidiary3

 

-

 

-

 

 

-

 

(0.01

)

Adjusted income before income taxes

 

0.23

 

(0.05

)

 

0.28

 

0.23

 

Adjusted income tax provision

 

0.03

 

(0.02

)

 

0.04

 

0.05

 

Non-GAAP: Adjusted net income attributable to controlling interest

$

0.20

$

(0.03

)

$

0.24

$

0.18

 

 
1During 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
3During the second quarter of 2019, we recognized a gain on the sale of our Mexico business
 
Non-GAAP Reconciliation - Adjusted Operating Income and Adjusted Operating Ratio (unaudited)
 

Quarter Ended September 30,

 

Nine Months Ended September 30,

(in thousands)

2020

 

2019

 

2020

 

2019

GAAP Presentation:
Total revenue

$

431,469

 

$

428,503

 

$

1,286,514

 

$

1,257,728

 

Total operating expenses

 

(415,578

)

 

(425,221

)

 

(1,258,014

)

 

(1,233,021

)

Operating income

$

15,891

 

$

3,282

 

$

28,500

 

$

24,707

 

Operating ratio

 

96.3

%

 

99.2

%

 

97.8

%

 

98.0

%

 
Non-GAAP Presentation
Total revenue

$

431,469

 

$

428,503

 

$

1,286,514

 

$

1,257,728

 

Fuel surcharge

 

(27,790

)

 

(41,837

)

 

(96,051

)

 

(124,566

)

Revenue, excluding fuel surcharge

 

403,679

 

 

386,666

 

 

1,190,463

 

 

1,133,162

 

 
Total operating expenses

 

415,578

 

 

425,221

 

 

1,258,014

 

 

1,233,021

 

Adjusted for:
Fuel surcharge

 

(27,790

)

 

(41,837

)

 

(96,051

)

 

(124,566

)

Mexico transition costs1

 

-

 

 

-

 

 

-

 

 

(4,600

)

Gain on sale of subsidiary2

 

-

 

 

-

 

 

-

 

 

670

 

Adjusted operating expenses

 

387,788

 

 

383,384

 

 

1,161,963

 

 

1,104,525

 

Adjusted Operating Income

$

15,891

 

$

3,282

 

$

28,500

 

$

28,637

 

Adjusted operating ratio

 

96.1

%

 

99.2

%

 

97.6

%

 

97.5

%

 
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
2During 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 September 30,

 

Nine Months Ended September 30,

(in thousands)

2020

 

2019

 

2020

 

2019

Truckload GAAP Presentation:
Total Truckload revenue

$

375,499

 

$

382,467

 

$

1,134,039

 

$

1,125,991

 

Total Truckload operating expenses

 

(355,092

)

 

(379,122

)

 

(1,092,004

)

 

(1,105,302

)

Truckload operating income

$

20,407

 

$

3,345

 

$

42,035

 

$

20,689

 

Truckload operating ratio

 

94.6

%

 

99.1

%

 

96.3

%

 

98.2

%

 
Truckload Non-GAAP Presentation
Total Truckload revenue

$

375,499

 

$

382,467

 

$

1,134,039

 

$

1,125,991

 

Fuel surcharge

 

(27,790

)

 

(41,837

)

 

(96,051

)

 

(124,566

)

Revenue, excluding fuel surcharge

 

347,709

 

 

340,630

 

 

1,037,988

 

 

1,001,425

 

 
Total Truckload operating expenses

 

355,092

 

 

379,122

 

 

1,092,004

 

 

1,105,302

 

Adjusted for:
Fuel surcharge

 

(27,790

)

 

(41,837

)

 

(96,051

)

 

(124,566

)

Mexico transition costs1

 

-

 

 

-

 

 

-

 

 

(4,600

)

Gain on sale of subsidiary2

 

-

 

 

-

 

 

-

 

 

670

 

Truckload Adjusted operating expenses

 

327,302

 

 

337,285

 

 

995,953

 

 

976,806

 

Truckload Adjusted operating income

$

20,407

 

$

3,345

 

$

42,035

 

$

24,619

 

Truckload Adjusted operating ratio

 

94.1

%

 

99.0

%

 

96.0

%

 

97.5

%

 
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
2During the second quarter of 2019, we recognized a gain on the sale of our Mexico business
 

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Financials (USD)
Sales 2020 1 744 M - -
Net income 2020 21,0 M - -
Net Debt 2020 406 M - -
P/E ratio 2020 20,1x
Yield 2020 -
Capitalization 401 M 401 M -
EV / Sales 2020 0,46x
EV / Sales 2021 0,41x
Nbr of Employees 8 572
Free-Float 45,4%
Chart U.S. XPRESS ENTERPRISES, INC.
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U.S. Xpress Enterprises, Inc. Technical Analysis Chart | USX | US90338N2027 | MarketScreener
Technical analysis trends U.S. XPRESS ENTERPRISES, INC.
Short TermMid-TermLong Term
TrendsBullishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 6
Average target price 10,00 $
Last Close Price 8,09 $
Spread / Highest target 48,3%
Spread / Average Target 23,6%
Spread / Lowest Target -1,11%
EPS Revisions
Managers and Directors
NameTitle
William Eric Fuller President, Chief Executive Officer & Director
Cameron Ramsdell President-U.S. Xpress Ventures
Max L. Fuller Executive Chairman
Eric A. Peterson Chief Financial Officer, Secretary & Treasurer
Edward Hell Braman Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
U.S. XPRESS ENTERPRISES, INC.18.27%401