U.S. Xpress Reports $554M Revenue for Q2
[Stay on top of transportation news: Get TTNews in your inbox.]
U.S. Xpress Enterprises posted revenue gains but sluggish earnings during the second quarter of 2022, the company reported Aug. 3.
The Chattanooga, Tenn.-based truckload carrier posted net income of $46,000, or negative 1 cent a diluted share, for the three months ending June 30. That compared with $19.1 million, or 37 cents a share, during the same time the previous year. Total operating revenue increased by 16.6% to $553.7 million from $475 million.
Wall Street analysts expected 5 cents EPS and quarterly revenue of $548.29 million, according to Zacks Consensus Estimate.
Net income for the quarter excluded an unrealized loss on a strategic equity investment of $1.4 million, net of tax, and the gain on sale of a terminal. Net loss attributable to controlling interest was $554,000, or 1 cent, compared to net income of $19.1 million, or 37 cents, last year. Net income in Q2 2021 benefited from a $14.9 million net of tax unrealized gain on a strategic equity investment.
“Second-quarter highlights included sequential overall fleet growth and improved margins in our brokerage segment and dedicated division,” U.S. Xpress CEO Eric Fuller said in a statement. “However, these positive accomplishments were partially offset by higher net fuel and claims expense in the quarter, particularly in our [over-the-road] division.”
Fuller also provided an update on Variant, the company’s digitally dispatched and managed asset-based fleet that launched in Q2 2020. U.S. Xpress continues to work on growing the division, which exited the quarter with 1,889 tractors comprising approximately half of the overall OTR operation. Revenue for Variant increased 66% to $87.7 million, due primarily to a 72.4% increase in seated tractors in the fleet, but challenges remain, Fuller said.
“While our Variant fleet grew to approximately 1,900 tractors, its results continued to lag due to lower utilization and higher turnover,” he said. “Looking ahead to the third quarter, our immediate priorities remain improving utilization in our Variant fleet, lowering our fixed costs per tractor and growing our overall fleet size.”
The company’s overall truckload segment saw Q2 revenue increase 14.6% to $390.7 million from $341 million last year quarter. This was propelled by a 14.4% increase in average revenue per mile, combined with an increase in average tractors of 506 units. These gains were partially offset by a 6.7% decrease in revenue miles per tractor. The segment includes over-the-road, dedicated and consolidated operations.
Truckload operating income fell 89.7% to $900,000 from $8.7 million last year, due primarily to lower utilization and increased net fuel expense in the quarter. U.S. Xpress noted that rate increases covered general inflation in the business on a year-over-year basis. Adjusted Q2 truckload operating loss, which excludes the $4 million gain on sale of the terminal mentioned earlier, was $3.1 million compared with adjusted truckload operating income of $8.7 million a year ago.
Want more news? Listen to today's daily briefing above or go here for more info
The dedicated operations saw its Q2 average tractor count increase 4.9% to 2,655 from 2,531, while average revenue per mile increased 17.8% to $2.883 from $2.448. Consolidated operations saw its Q2 average tractor count increase 8.7% to 6,355 from 5,849, while average revenue per mile increased 114.4% to $2.694 from $2.354.
The brokerage segment saw revenue decrease 8.3% to $88.5 million from $96.5 million last year, due to a 25% decrease in load count that was offset by a 22.3% increase in revenue per load. The operating income increased to $5.6 million from $200,000.
U.S. Xpress ranks No. 23 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 54 on the TT Top 100 list of the largest logistics companies in North America.