1Q 2019 Earnings Call Presentation - USA Truck presentation contains forward-looking statements...
Transcript of 1Q 2019 Earnings Call Presentation - USA Truck presentation contains forward-looking statements...
USAK1Q 2019 Earnings Call Presentation 1
USAK
DISCLOSURE STATEMENT
Forward-Looking Statements
This presentation contains 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. Suchforward-looking statements are made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. These statements generally may be identified by their use of terms or phrases such as“expects,” “estimates,” “anticipates,” “projects,” “believes,” “plans,” “goals,” “intends,” “may,” “will,” “should,” “could,” “potential,” “continue,” “strategy,” “future” and terms or phrases of similar substance.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, whichcould cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. Accordingly, actual results may differ materially from those setforth in the forward-looking statements. Readers should review and consider the factors that may affect future results and other disclosures by the Company in its press releases, Annual Report on Form 10-K andother filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made. We disclaim any obligation to update or revise any forward-lookingstatements to reflect actual results or changes in the factors affecting the forward-looking information, except as required by law. In light of these risks and uncertainties, the forward-looking events andcircumstances discussed in this press release might not occur. All forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by this cautionary statement.
Non-GAAP Financial Data
This presentation includes the use of EBITDA, Adjusted EBITDA, adjusted operating ratio and Adjusted EPS, financial measures that are not in accordance with generally accepted accounting principles (“GAAP”). Eachsuch measure is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors and lenders. While management believessuch measures are useful for investors, they should not be used as a replacement for financial measures that are in accordance with GAAP. Please see the Appendix to this presentation for a reconciliation to theclosest GAAP financial measures.
The Company defines EBITDA as net loss, plus interest expense net of interest income, provision for income taxes and depreciation and amortization. It defines Adjusted EBITDA as these items plus non-cash equitycompensation, restructuring, impairment and other costs, and severance costs included in salaries, wages and employee benefits. Adjusted operating ratio is calculated as operating expenses less restructuring,impairment (excluding impairment of assets held for sale) and other costs, net of fuel surcharges, as a percentage of operating revenue excluding fuel surcharge revenue. Adjusted EPS is defined as earnings or lossbefore income taxes plus loss on extinguishment of debt, restructuring, impairment and other costs, and severance costs included in salaries, wages and employee benefits reduced by our statutory income tax rate,divided by weighted average diluted shares outstanding. Because not all companies use identical calculations, the Company's presentation of non-GAAP financial measures may not be comparable to similarly titledmeasures of other companies.
All forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by this cautionary statement.
References to the “Company,” “we,” “us,” “our” and words of similar import refer to USA Truck, Inc. and its subsidiary.
2
USAK
(0.6)
2.3 3.0
2.3
-1
1
3
5
1Q18 1Q19
Trucking Logistics
1Q 2019 RESULTS
Consolidated operating revenues came in at $134.0 million for the quarter, which represents a 7.2% increase year-over-year
Consolidated adjusted operating income increased $2.1 million year-over-year
Consolidated adjusted operating ratio was 96.1% representing 170 basis point improvement year-over-year
The first quarter of 2019 generated adjusted earnings per diluted share of $0.24
78.793.6
46.240.2
0
50
100
150
1Q18 1Q19
Trucking Logistics
133.8
($/M)
($/M)
Operating Revenue by Segment
Adjusted Operating Income (1) by Segment
124.9
(1) See Appendix for non-GAAP to GAAP reconciliation and calculation of adjusted EPS.
1Q18 1Q19
Adjusted Diluted EPS ($/Sh)(1) 0.14 0.24
3
USAK
TRUCKING 1Q RESULTS
2.009
2.244
1.50
1.75
2.00
2.25
2.50
1Q18 1Q19
Base revenue per available tractor per week increased $129 or 4.0% when compared to the first quarter of 2018
Base revenue per loaded mile increased $0.235, or 11.7%, for first quarter of 2019
Loaded miles per available tractor per week decreased 112 miles, or 6.9%, year-over-year
Average available tractor count for the first quarter 2019 was 1,916, an increase of 18.3% year-over-year
3,2463,375
2,500
2,750
3,000
3,250
3,500
3,750
1Q18 1Q19
1,6161,504
0
250
500
750
1,000
1,250
1,500
1,750
1Q18 1Q19
($)
($)
Base Revenue per Loaded Mile
Base Revenue / Available Tractor / Week
Loaded Miles / Available Tractor / Week
4
USAK
USAT LOGISTICS 1Q RESULTS
($/M)
(000s)
(1) Gross Margin defined as operating revenue less purchased transportation expense.
Revenue decreased 11.4%, or $5.3 million year-over-year to $41.4 million for the first quarter of 2019
Gross margin dollars decreased 2.5%, or $0.2 million year-over-year, to $7.7 million for the first quarter of 2019
Gross margin percentage for the first quarter of 2019 increased to 18.5% from 16.9% year-over-year
Load count increased 4.1%, or approximately 1,100 loads year-over-year
Gross Margin(1)
Load Count
46.8
41.4
20.0
25.0
30.0
35.0
40.0
45.0
50.0
1Q18 1Q19
($/M)
Operating Revenue
7.9 7.7
0.0
3.0
6.0
9.0
1Q18 1Q19
26.527.6
15.0
20.0
25.0
30.0
1Q18 1Q19
5
USAK
BALANCE SHEET AND LIQUIDITY
Net Debt to Adjusted EBITDAR was 2.6x using actual and pro forma financial information from our Davis acquisition
Net Debt to Adjusted EBITDAR of between 2.0x and 3.0x over the long-term
Liquidity was approximately $50 million
Key Capitalization Metrics
12/31/18 03/31/19
Total Debt ($) 160.5 182.0
Stockholders’ Equity 81.3 83.3
Total Capitalization ($) 241.8 265.3
6
USAK
2019 STRATEGIC OBJECTIVES & PERFORMANCE TARGETS
PERFORMANCE TARGETS:
Continue to reduce CPMM
Improved 20% in the last 2 years, we expect another 5%+ improvement in CPMM
Top 1/3 of Top 10 Customers’ Scorecards
Customer satisfaction leads to long term business
Complete TMS rollout in trucking
Deliver Optimization Solution
Roll out Telematics Solution
Continue to Grow Logistics as a % of Consolidated Revenue
Continued improvement on Revenue per Truck per Week
Cost reduction targeting implementation of $3M-$4M of annualized cost savings
Started USAK Leadership Academy Monthly Leadership Summit Cross-functional Capacity Solutions Training CEO Tour
7
USAK
USAT is driven to be a premier North American transportation solutions provider that improves the lives of team members, customers, industry partners, and our communities. We promote a culture of trust in a safe, fun, and friendly environment where people grow and thrive.
8
USAK
Appendix
9
USAK
GAAP TO NON-GAAP RECONCILIATIONS
10
USAK
GAAP TO NON-GAAP RECONCILIATIONS
11
USAK
GAAP TO NON-GAAP RECONCILIATIONS
12
USAK
CONSOLIDATED GAAP RECONCILIATIONS
13
USAK
TRUCKING GAAP RECONCILIATIONS
ADJUSTED OPERATING RATIO RECONCILIATION
14
USAK
USAT LOGISTICS GAAP RECONCILIATIONS
ADJUSTED OPERATING RATIO RECONCILIATION
15