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USA Truck saw second-quarter revenue and net income decrease compared with the prior year, the company reported July 27.
The Van Buren, Ark.-based motor carrier posted a net loss of $931,000, or 11 cents per diluted share, for the three months ending June 30. That compares with net income of $1,000 (0 cents) the previous year. Consolidated operating revenue last quarter decreased by 7.4% to $123.7 million from $133.6 million.
The company’s results topped expectations of investment analysts on Wall Street, which were looking for a loss of 9 cents per share and quarterly revenue of $117.4 million, according to Zacks Consensus Estimate.
USA Truck CEO James Reed said the coronavirus pandemic has created an unpredictable environment both for his company and the industry.
“The second quarter of 2020 was unlike any quarter we have seen in transportation, producing unprecedented day-to-day and week-to-week swings in freight and pricing due to the COVID-19 pandemic,” Reed said in a statement. He noted, however, that the company’s diversified customer base — about 80% of which is considered essential and quasi-essential — helped keep freight moving through the quarter.
The company’s trucking segment for Q2 saw operating revenue decrease by 8.1% to $88.6 million from $96.5 million during the same period in 2019. Operating income for the segment, however, rose to $1.2 million during the quarter compared with $837,000 the prior year due in part to lower operating expenses.
“Although our non-essential customers, which are critical to our network despite being a smaller relative percentage of the freight basket, have yet to make a full recovery, we supplemented this shortfall with lower-priced spot freight and consequently saw an overall degradation in our base revenue per available tractor per week,” Reed said.
The company’s logistics segment saw operating revenue decrease 2.1% during the quarter to $38.7 million from $39.6 million. Operating loss was $176,000 for the quarter compared with operating income of $1.15 million the year prior. USA Truck started with fewer than 10 tractors when it was founded in 1983 as Crawford Produce. The company has expanded to include more than 2,000 driving team members.
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