USA Truck Inc. minority shareholder, ADW Capital Partners, has called for the resignation of company CEO John Simone because progress in improving profits has been too slow.
ADW, holder of about 3% of USA Truck’s shares made its bid in a letter to the company’s board from Managing Member Adam Wyden.
Read the full letter here.
“We believe USA Truck’s board of directors should explore all available strategic alternatives which should include a complete replacement of management and divisional leadership,” said Wyden, who is the son of U.S. Sen. Ron Wyden (D-Oregon).
USA Truck, which ranks No. 50 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers, didn’t respond to a request for comment from TT.
USA Truck’s management last year rebuffed an acquisition move from No. 31 Knight Transportation.
Wyden also called for the sale of the company’s truckload division and or a sale of the company in its entirety.
He told TT that he was “very disappointed” with the pace of improvement at USA Truck, and described himself as an activist investor who may seek more shares, depending on the company’s response.
In July, USA Truck reported its first profit in three years, with net income of $700,000, or 7 cents per share.
The truckload carrier’s revenue rose 12.1% to $125 million. The trucking operation, accounting for about two-thirds of revenue, lost $1.7 million before interest and taxes. The logistics business posted a $6.0 million profit on that basis in the quarter.