U.S. Xpress Enterprises, Inc. Reports Second Quarter 2018 Results

CHATTANOOGA, Tenn.--()--U.S. Xpress Enterprises, Inc. (NYSE:USX) (the “Company”) today announced results for the second quarter of 2018.

Second Quarter 2018 Highlights

  • Total Operating Revenue of $449.8 million, an increase of 21.4% compared to second quarter 2017
  • Operating Income of $20.0 million compared to $2.7 million in the second quarter 2017
  • Adjusted Operating Income, a non-GAAP measure, of $26.5 million compared to $5.1 million in the second quarter of 2017
  • Operating ratio of 95.5%, a 380 basis point improvement compared to second quarter 2017
  • Adjusted Operating Ratio, a non-GAAP measure, of 93.4%, a 510 basis point improvement compared to second quarter 2017
  • IPO proceeds net of fees and expenses used to reduce net debt by approximately $236.2 million

Second Quarter Financial Performance

  Three Months Ended June 30,   Six Months Ended June 30,
2018   2017 2018   2017
Total Revenue $ 449,758   $ 370,350 $ 875,466   $ 734,026
Revenue, excluding fuel surcharge $ 402,808 $ 338,463 $ 785,666 $ 670,305
Operating Income $ 20,018 $ 2,689 $ 34,872 $ 4,617
Adjusted Operating Income1 $ 26,455 $ 5,050 $ 41,309 $ 6,978
Operating Ratio 95.5 % 99.3 % 96.0 % 99.4 %
Adjusted Operating Ratio1 93.4 % 98.5 % 94.7 % 99.0 %
Net Income (Loss) attributable to controlling interest $ 615 $ (8,452 ) $ 1,774 $ (12,884 )
Adjusted Net Income (Loss) attributable to controlling interest1 $ 11,285 $ (6,977 ) $ 12,444 $ (11,409 )
1 See GAAP to non-GAAP reconciliation in the schedules following this release
 

Eric Fuller, President and CEO, commented, “Over the last three years we have implemented a complete overhaul of the Company’s strategy and operations that we expect will improve execution and profitability. To achieve our goal, we changed the Company’s culture and recruited the expertise necessary to drive our transformation. We also implemented several strategic initiatives focused on improving driver retention, increasing our asset utilization, creating synergies for our customers within our different service offerings and driving a culture of cost management. The early success of our initiatives can clearly be seen in our second quarter results where we delivered our best Adjusted Operating Ratio since 1998. That said, we are not satisfied with our results and believe we can improve as we continue to execute our strategy designed to deliver an operating ratio in line with our peer group.”

Another sign of our successful execution was our initial public offering where our shares began trading on the NYSE on June 14th. Our IPO was the culmination of years of hard work by our employees combined with the strong partnership and support of our customers and partners. Our offering is an important step in the transformation and growth of U.S. Xpress and I am excited with the many opportunities that lie ahead,” concluded Mr. Fuller.

Enterprise Update

Total revenue for the second quarter of 2018 increased by $79.4 million to $449.8 million as compared to the second quarter of 2017. The increase was primarily a result of an 11.4% increase in the Company’s average revenue per loaded mile (excluding fuel surcharge revenue), a 56.2% increase in brokerage revenue to $58.4 million, and a $15.1 million increase in fuel surcharge revenue. Excluding the impact of fuel surcharges, second quarter revenue increased $64.3 million to $402.8 million, an increase of 19.0% as compared to the prior year quarter.

Operating income for the second quarter of 2018 was $20.0 million which compares favorably to the $2.7 million achieved in the second quarter of 2017. Excluding one-time costs related to the Company’s IPO transaction completed in June of 2018, second quarter Adjusted Operating Income was $26.5 million. The second quarter 2018 Adjusted Operating Ratio was 93.4%, representing a 510 basis point improvement as compared to the second quarter of 2017. The Adjusted Operating Ratio of 93.4% for the second quarter is the Company’s lowest operating ratio in 20 years.

Truckload Segment

 

Three Months Ended June 30,

  Six Months Ended June 30,
2018   2017 2018   2017
Over the road    
Average revenue per tractor per week1 $ 3,957 $ 3,302 $ 3,890 $ 3,306
Average revenue per mile1 $ 2.023 $ 1.785 $ 1.997 $ 1.774
Average revenue miles per tractor per week 1,956 1,849 1,952 1,863
Average tractors 3,578 3,837 3,605 3,835
Dedicated
Average revenue per tractor per week1 $ 3,647 $ 3,735 $ 3,598 $ 3,649
Average revenue per mile1 $ 2.234 $ 2.064 $ 2.209 $ 2.076
Average revenue miles per tractor per week 1,632 1,810 1,629 1,757
Average tractors 2,721 2,353 2,672 2,369
Consolidated
Average revenue per tractor per week1 $ 3,823 $ 3,467 $ 3,771 $ 3,437
Average revenue per mile1 $ 2.105 $ 1.890 $ 2.078 $ 1.885
Average revenue miles per tractor per week 1,816 1,834 1,814 1,823
Average tractors 6,299 6,190 6,277 6,204
1 Excluding fuel surcharge revenues

The above table excludes revenue, miles and tractors for services performed in Mexico.

 

Mr. Fuller said, “Overall, we remain optimistic as we continue to execute our strategy and market conditions remain strong. Of note, we experienced improving rates and volumes through the second quarter and expect no catalyst over the near term that would negatively impact current trends. That said, we continue to see an erosion of professional driver availability. As a result, we are continuing to focus on our driver centric initiatives to both retain the professional drivers who have chosen to partner with us and to attract new professional drivers to our team. We believe this focus allowed us to offset the difficult conditions, which have created a significant professional driver supply challenge for the broader industry as we slightly increased our tractor count during the second quarter of 2018 through an 11% reduction in our driver turnover percentage. The environment in the third quarter of 2018 remains strong from a rate and volume perspective and we are currently anticipating rates to further increase on a sequential basis as we continue to implement contract rate increases in both our over the road and dedicated divisions.”

The Truckload segment achieved an Adjusted Operating Ratio of 92.7% for the second quarter of 2018, a 540 basis point improvement as compared to the Adjusted Operating Ratio of 98.1% achieved in the second quarter of 2017. The improvement was due to the continued successful implementation of the Company’s strategic initiatives as well as broader market conditions.

In the over the road division, average revenue per tractor per week increased 19.8% in the second quarter of 2018, as compared to the second quarter of 2017. The increase was primarily the result of a 13.3% increase in the division’s average revenue per loaded mile (excluding fuel surcharge revenue) and a 5.8% increase in the division’s revenue miles per tractor per week. Generally, during a challenging driver market with increased demand, utilization will decline because a greater percentage of tractors are in transition onboarding new professional drivers as compared to being productive and because increased freight selectivity slows down overall velocity.

Despite the challenging market for drivers, utilization increased through the successful execution of numerous operational initiatives gaining traction through the quarter. This strong utilization was impacted by the over the road division’s support of dedicated accounts during the quarter, which negatively impacted over the road utilization by approximately 150 basis points. While supporting the dedicated accounts with the Company’s over the road fleet negatively affected our utilization in the second quarter, management believes that when these accounts are operationally established, U.S. Xpress will be able to recognize this increase in over the road utilization.

The dedicated division’s average revenue per tractor per week (excluding fuel surcharge revenue) decreased 2.4% in the second quarter of 2018 as compared to the second quarter of 2017. The decrease was primarily a result of a 9.8% decrease in the division’s revenue miles per tractor per week partially offset by a 8.2% increase in the division’s average revenue per loaded mile (excluding fuel surcharge revenue). The reduction in our utilization was primarily the result of certain accounts’ shipping patterns that performed differently than expected which affected utilization, driver hiring, and retention, and due in part to mix changes in the portfolio. As a result of negotiations related to these accounts that were underperforming from a utilization standpoint, rate increases have been implemented that were effective as of the end of July 2018. Overall, tractor count in the Company’s dedicated division has increased by 15.6% in the second quarter of 2018 as compared to the same period in the prior year and 3.7% sequentially as compared to the first quarter of 2018.

Brokerage Segment

  Three Months Ended June 30,   Six Months Ended June 30,
2018   2017 2018   2017
Brokerage revenue $ 58,361   $ 37,368 $ 112,902   $ 75,150
Gross margin % 12.2 % 10.9 % 13.1 % 12.3 %
Load Count 42,135 34,700 81,385 68,173
 

Brokerage segment revenues increased 56.2% to $58.4 million in the second quarter of 2018 as compared to $37.4 million in the second quarter of 2017. The increase was primarily the result of a 21.4% increase in load count and higher revenue on a per load basis, and due in part to higher fuel prices. Brokerage gross margins expanded 130 basis points to 12.2% in the second quarter of 2018 as compared to 10.9% in the second quarter of 2017.

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 our customers.

Liquidity and Capital Resources

As of June 30, 2018, U.S. Xpress had $122.6 million of cash and availability under our revolving credit facility, $385.8 million of net debt and $213.6 million of total stockholders' equity. IPO proceeds net of fees and expenses were used to reduce net debt by approximately $236.2 million during the quarter. U.S. Xpress is committed to continuing its efforts to strengthen its balance sheet and reducing the Company’s leverage ratio which we believe will further position the Company for future opportunities as they arise. As a result of the significant decrease in debt combined with the new capital structure put in place in conjunction with the IPO, consolidated interest expense in the third quarter of 2018 is expected to approximate $5.0 million as compared to $12.9 million in the third quarter of 2017.

Capital expenditures, net of proceeds, were $28.8 million in the current year quarter and $47.5 million year to date. For 2018, U.S. Xpress expects net capital expenditures will be between $170.0 and $190.0 million. Note, that for 2018 total net capital expenditures are higher than the Company’s normalized annualized replacement requirements. This is primarily a result of the mix of this year’s equipment replacements that will be 100% purchased with none planned for off-balance sheet leases. This ratio results in a higher net capital expenditures number for 2018 than if the Company’s fleet had rotated based on the overall fleet financing profile of approximately two thirds owned and one third leased.

Conference Call

As previously announced, the Company will hold a conference call to discuss its second quarter results at 5:00 p.m. (Eastern Time) on August 2nd, 2018. The conference call can be accessed live over the by phone dialing 1-877-876-9176 or, for international callers, 1-785-424-1667 and requesting to be joined to the U.S. Xpress Second Quarter Earnings Conference Call. A replay will be available starting at 8:00 p.m. (Eastern Time) on August 2nd, 2018 and can be accessed by dialing 1-844-512-2921 or, for international callers, 1-412-317-6671. The passcode for the replay is 130463. The replay will be available until 11:59 p.m. (Eastern Time) on August 9th, 2018.

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 also will be available on this website.

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 Expenses, Adjusted Operating Income (on both a consolidated and segment basis), and Adjusted Net Income. 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. The non-GAAP information provided is used by our management and may not be comparable to similarly titled measures disclosed by other companies. The non-GAAP measures used herein have limitations as analytical tools, and you should not consider them 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.

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,” “focus,” “continue,” “will,” “could,” “should,” “may,” and similar terms and phrases. In this press release, such statements may include, but are not limited to, statements concerning: any projections of earnings, revenues, cash flows, capital expenditures, or other financial items; any statement of plans, strategies, or objectives for future operations; any statements regarding future economic or industry conditions or performance; 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); expected 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; expected 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, and intermodal 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; and our ability to adapt to changing market conditions and technologies. 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)
 
  Three Months Ended June 30,   Six Months Ended June 30,
(in thousands, except per share data) 2018   2017 2018   2017
Operating Revenue:
Revenue, excluding fuel surcharge $ 402,808 $ 338,463 $ 785,666 $ 670,305
Fuel surcharge   46,950     31,887     89,800     63,721  
Total operating revenue   449,758     370,350     875,466     734,026  
Operating Expenses:
Salaries, wages and benefits 139,701 135,214 272,625 265,465
Fuel and fuel taxes 57,704 51,712 116,093 102,180
Vehicle rents 19,393 14,773 39,415 40,168
Depreciation and amortization, net of (gain) loss 24,149 26,510 48,855 45,758
Purchased transportation 118,681 68,828 220,457 137,853
Operating expense and supplies 29,073 33,167 58,864 64,539
Insurance premiums and claims 19,165 17,582 39,335 35,024
Operating taxes and licenses 3,509 3,097 6,910 6,464
Communications and utilities 2,425 1,953 4,891 3,921
General and other operating   15,940     14,825     33,149     28,037  
Total operating expenses   429,740     367,661     840,594     729,409  
Operating Income 20,018 2,689 34,872 4,617
Other Expenses (Income):
Interest Expense, net 12,298 12,906 24,956 23,424
Early extinguishment of debt 7,753 - 7,753 -
Equity in (income) loss of affiliated companies (119 ) 657 177 1,000
Other, net   242     (216 )   167     (808 )
  20,174     13,347     33,053     23,616  
Income (loss) Before Income Taxes (156 ) (10,658 ) 1,819 (18,999 )
Income Tax Benefit   (1,191 )   (2,261 )   (598 )   (6,195 )
Net Income (loss)   1,035     (8,397 )   2,417     (12,804 )
Net Income attributable to non-controlling interest   420     55     643     80  
Net Income (loss) attributable to controlling interest $ 615   $ (8,452 ) $ 1,774   $ (12,884 )
 
Income (loss) Per Share
Basic earnings (loss) per share $ 0.04 $ (1.32 ) $ 0.17 $ (2.02 )
Basic weighted average shares outstanding   14,214     6,385     10,321     6,385  
Diluted earnings (loss) per share $ 0.04 $ (1.32 ) $ 0.17 $ (2.02 )
Diluted weighted average shares outstanding   14,456     6,385     10,443     6,385  
 
   
Condensed Consolidated Balance Sheets (unaudited)
   
June 30, December 31,
(in thousands) 2018 2017
Assets
Current assets:
Cash and cash equivalents $ 6,508 $ 9,232
Customer receivables, net of allowance of $69 and $122, respectively 206,558 186,407
Other receivables 22,240 21,637
Prepaid insurance and licenses 7,574 7,070
Operating supplies 9,432 8,787
Assets held for sale 9,720 3,417
Other current assets   15,892     12,170  
Total current assets   277,924     248,720  
Property and equipment, at cost 844,533 835,814
Less accumulated depreciation and amortization   (388,877 )   (371,909 )
Net property and equipment   455,656     463,905  
Other assets:
Goodwill 57,708 57,708
Intangible assets, net 29,827 30,742
Other   21,110     19,496  
Total other assets   108,645     107,946  
Total assets $ 842,225   $ 820,571  
Liabilities, Redeemable Restricted Units and Stockholder's Equity (Deficit)
Current liabilities:
Accounts payable $ 74,944 $ 80,555
Book overdraft - 3,537
Accrued wages and benefits 24,885 20,530
Claims and insurance accruals 46,839 47,641
Other accrued liabilities 5,420 13,901
Current maturities of long-term debt   110,062     132,332  

Total current liabilities

  262,150     298,496  
Long-term debt, net of current maturities 282,209 480,472
Less unamortized discount and debt issuance costs   (1,508 )   (7,266 )
Net long-term debt   280,701     473,206  
Deferred income taxes 14,787 15,630
Other long-term liabilities 12,901 14,350
Claims and insurance accruals, long-term 58,124 56,713
Commitments and contingencies:
Redeemable restricted units - 3,281
Stockholder's Equity (Deficit):
Common Stock 483 64
Additional paid-in capital 250,607 1
Accumulated deficit   (40,460 )   (43,459 )
Stockholder’s equity (deficit) 210,630 (43,394 )
Noncontrolling interest   2,932     2,289  
Total stockholder's equity (deficit)   213,562     (41,105 )
Total liabilities, redeemable restricted units and stockholder's equity $ 842,225   $ 820,571  
 
   
Condensed Consolidated Cash Flow Statements (unaudited)
 
  Six Months Ended June 30,
(in thousands) 2018 2017
Operating activities
Net income (loss) $ 2,417 $ (12,804 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Early extinguishment of debt 7,753 -
Equity in loss of affiliated companies 177 1,000
Deferred income tax benefit (959 ) (7,077 )
Provision for losses on receivables 36 -
Depreciation and amortization 46,792 44,976
Losses on sale of property and equipment 2,063 782
Restricted unit amortization 629 259
Original issue discount and deferred financing amortization 1,387 1,456
Interest paid-in-kind (7,516 ) 953
Purchase commitment interest (income) expense 171 (366 )
Changes in operating assets and liabilities
Receivables (17,531 ) (7,246 )
Prepaid insurance and licenses (504 ) (284 )
Operating supplies (1,042 ) (66 )
Other assets (3,777 ) (1,361 )
Accounts payable and other accrued liabilities (15,353 ) (12,934 )
Accrued wages and benefits   4,356     (471 )
Net cash provided by operating activities   19,099     6,817  
Investing activities
Payments for purchases of property and equipment (62,864 ) (227,380 )
Proceeds from sales of property and equipment 15,355 15,270
Acquisition of business - (2,219 )
Other   (500 )   (618 )
Net cash used in investing activities   (48,009 )   (214,947 )
Financing activities
Borrowings under lines of credit 214,432 198,590
Payments under lines of credit (243,765 ) (158,204 )
Borrowings under long-term debt 244,677 216,808
Payments of long-term debt (427,341 ) (55,051 )
Payments of financing costs and original issue discount (4,151 ) (195 )
Proceeds from issuance of 16,668,000 shares, net of expenses 247,098 -
Payments of long-term consideration for business acquisition (1,010 ) -
Repurchase of membership units (217 ) (340 )
Book overdraft   (3,537 )   7,432  
Net cash provided by financing activities   26,186     209,040  
Net change in cash and cash equivalents (2,724 ) 910
Cash and cash equivalents
Beginning of year   9,232     3,278  
End of year $ 6,508   $ 4,188  
 
         
Key Operating Factors & Truckload Statistics (unaudited)
 
Quarter Ended June 30, % Six Months Ended June 30, %
2018 2017 Change 2018 2017 Change
Operating Revenue:
Truckload1 $ 344,447 $ 301,095 14.4 % $ 672,764 $ 595,154 13.0 %
Fuel Surcharge 46,950 31,887 47.2 % 89,800 63,722 40.9 %
Brokerage   58,361     37,368   56.2 %   112,902     75,150   50.2 %
Total Operating Revenue $ 449,758 $ 370,350 21.4 % $ 875,466 $ 734,026 19.3 %
 
Operating Income:
Truckload $ 18,590 $ 3,295 464.2 % $ 31,093 $ 4,997 522.2 %
Brokerage $ 1,428   $ (606 ) nm $ 3,779   $ (380 ) nm
$ 20,018 $ 2,689 644.4 % $ 34,872 $ 4,617 655.3 %
 
Operating Ratio:
Operating Ratio 95.5 % 99.3 % -3.8 % 96.0 % 99.4 % -3.4 %
Adjusted Operating Ratio2 93.4 % 98.5 % -5.2 % 94.7 % 99.0 % -4.3 %
 
Truckload Operating Ratio 95.3 % 99.0 % -3.8 % 95.9 % 99.2 % -3.3 %
Adjusted Truckload Operating Ratio2 92.7 % 98.1 % -5.5 % 94.4 % 98.8 % -4.4 %
Brokerage Operating Ratio 97.6 % 101.6 % -4.0 % 96.7 % 100.5 % -3.8 %
 
Truckload Statistics:3
Revenue Per Mile1 $ 2.105 $ 1.890 11.4 % $ 2.078 $ 1.885 10.2 %
 
Average Tractors -
Company Owned 4,955 5,490 -9.7 % 5,054 5,504 -8.2 %
Owner Operators   1,344     700   92.0 %   1,223     700   74.7 %
Total Average Tractors 6,299 6,190 1.8 % 6,277 6,204 1.2 %
 

Average Revenue Miles Per Tractor Per Week

1,816 1,834 -1.0 % 1,814 1,823 -0.5 %
 

Average Revenue Per Tractor Per Week1

$ 3,823 $ 3,467 10.3 % $ 3,771 $ 3,437 9.7 %
 
Total Miles 163,009 162,132 0.5 % 324,066 320,922 1.0 %
 
Total Company Miles 125,206 139,794 -10.4 % 255,532 276,585 -7.6 %
 
Total Independent Contractor Miles 37,803 22,338 69.2 % 68,534 44,337 54.6 %
 
Independent Contractor fuel surcharge 10,514 4,255 147.1 % 18,470 8,642 113.7 %
 
1 Excluding fuel surcharge revenues
2 See GAAP to non-GAAP reconciliation in the schedules following this release
3 Excludes revenue, miles and tractors for services performed in Mexico.
 
 
Non-GAAP Reconciliation - Adjusted Operating Income and Adjusted Operating Ratio (unaudited)
     
Three Months Ended June 30, Six Months Ended June 30,
(in thousands) 2018 2017 2018 2017
GAAP Presentation:
Total revenue $ 449,758 $ 370,350 $ 875,466 $ 734,026
Total operating expenses   (429,740 )   (367,661 )   (840,594 )   (729,409 )
Operating Income $ 20,018   $ 2,689   $ 34,872   $ 4,617  
Operating ratio   95.5 %   99.3 %   96.0 %   99.4 %
 
Non-GAAP Presentation
Total revenue $ 449,758 $ 370,350 $ 875,466 $ 734,026
Fuel surcharge   (46,950 )   (31,887 )   (89,800 )   (63,721 )
Revenue, excluding fuel surcharge 402,808 338,463 785,666 670,305
 
Total operating expenses 429,740 367,661 840,594 729,409
Adjusted for:
Fuel surcharge (46,950 ) (31,887 ) (89,800 ) (63,721 )
Fuel purchase arrangements - (2,361 ) - (2,361 )
IPO-related costs1   (6,437 )   -     (6,437 )   -  
Adjusted operating expenses   376,353     333,413     744,357     663,327  
Adjusted Operating Income $ 26,455   $ 5,050   $ 41,309   $ 6,978  
Adjusted Operating Ratio   93.4 %   98.5 %   94.7 %   99.0 %
 
Non-GAAP Reconciliation - Truckload Adjusted Operating Income and Adjusted Operating Ratio (unaudited)
 
Three Months Ended June 30, Six Months Ended June 30,
(in thousands)   2018     2017     2018     2017  
Truckload GAAP Presentation:
Total Truckload revenue $ 391,397 $ 332,982 $ 762,564 $ 658,876
Total Truckload operating expenses   (372,807 )   (329,687 )   (731,471 )   (653,880 )
Truckload Operating Income $ 18,590   $ 3,295   $ 31,093   $ 4,996  
Truckload Operating ratio   95.3 %   99.0 %   95.9 %   99.2 %
 
Truckload Non-GAAP Presentation
Total Truckload revenue $ 391,397 $ 332,982 $ 762,564 $ 658,876
Fuel surcharge   (46,950 )   (31,887 )   (89,800 )   (63,721 )
Revenue, excluding fuel surcharge 344,447 301,095 672,764 595,155
 
Total Truckload operating expenses 372,807 329,687 731,471 653,880
Adjusted for:
Fuel surcharge (46,950 ) (31,887 ) (89,800 ) (63,721 )
Fuel purchase arrangements - (2,361 ) - (2,361 )
IPO-related costs1   (6,437 )   -     (6,437 )   -  
Truckload Adjusted operating expenses   319,420     295,439     635,234     587,798  
Truckload Adjusted Operating Income $ 25,027   $ 5,656   $ 37,530   $ 7,357  
Truckload Adjusted operating ratio   92.7 %   98.1 %   94.4 %   98.8 %
 

1 During the second quarter, we incurred one time expenses for the IPO related to pay out of our SAR program and deal bonuses totaling $6,437.

 

       
Non-GAAP Reconciliation - Adjusted Net Income (unaudited)
 
Three Months Ended June 30, Six Months Ended June 30,
(in thousands, except per share data) 2018 2017 2018 2017
GAAP: Net Income (Loss) attributable to controlling interest $ 615 $ (8,452 ) $ 1,774 $ (12,884 )
Adjusted for:
Income tax benefit   (1,191 )   (2,261 )   (598 )   (6,195 )
Income (loss) before income taxes attributable to controlling interest $ (576 ) $ (10,713 ) $ 1,176   $ (19,079 )
Fuel purchase arrangements 2,361 2,361
Debt extinguishment costs in conjunction with IPO1 7,753 - 7,753 -
IPO-related costs2   6,437     -     6,437     -  
Adjusted income (loss) before income taxes   13,614     (8,352 )   15,366     (16,718 )
Adjusted income tax provision (benefit)   2,329     (1,375 )   2,922     (5,309 )
Non-GAAP: Adjusted Net Income(Loss) attributable to controlling interest $ 11,285   $ (6,977 ) $ 12,444   $ (11,409 )
 
1 In connection with the IPO, we recognized an early extinguishment of debt charge related to our then existing term loan.

2 During the second quarter, we incurred one time expenses for the IPO related to pay out of our SAR program and deal bonuses totaling $6,437.

 

Contacts

U.S. Xpress Enterprises, Inc.
Brian Baubach
Sr. Vice President Corporate Finance and Investor Relations
investors@usxpress.com

Contacts

U.S. Xpress Enterprises, Inc.
Brian Baubach
Sr. Vice President Corporate Finance and Investor Relations
investors@usxpress.com