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

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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.

 

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