SMXC Smithway (MM)

Smithway Motor Xpress Corp. Reports Fourth Quarter and Year End Results FORT DODGE, Iowa, Feb. 14 /PRNewswire-FirstCall/ -- Smithway Motor Xpress Corp. (NASDAQ:SMXC) announced today financial and operating results for the fourth quarter and year ended December 31, 2004. For the fourth quarter of 2004, operating revenue increased approximately 23% to $50.1 million from $40.7 million for the corresponding quarter in 2003. Operating revenue, excluding fuel surcharge revenue of $5.3 million, increased approximately 14% to $44.8 million from $39.4 million for the corresponding quarter in 2003. Net earnings were $387,000, or $0.08 per basic and diluted share, compared with net loss of $268,000, or $0.06 per basic and diluted share, for the same quarter in 2003. For the year, operating revenue increased approximately 14% to $189.0 million from $165.3 million in 2003. Operating revenue, excluding fuel surcharge revenue of $13.4 million, increased approximately 10% to $175.6 million from $159.5 million in 2003. Net earnings were $2.2 million, or $0.46 per basic share and $0.45 per diluted share, compared with net loss of $2.6 million, or $0.53 per basic and diluted share, for 2003. Net earnings for 2004 include $727,000, or $0.15 per basic and diluted share, of tax-free life insurance proceeds received during the first quarter. Without the life insurance proceeds, net earnings for the year would have been $1.5 million, or $0.31 per basic and diluted share, compared with net loss of $2.6 million, or $0.53 per basic and diluted share, for 2003. G. Larry Owens, President and Chief Executive Officer, commented, "Smithway's results for the fourth quarter 2004 mark our fourth consecutive profitable quarter and first profitable year since 1999. For the quarter, average revenue per seated tractor per week increased by $194, or 8%, compared to the fourth quarter of 2003 as freight demand remains strong. During the quarter we experienced a ten cent increase in revenue per loaded mile, increased revenue miles per tractor, and decreased deadhead. "Higher truck production and freight rates have allowed us to absorb a two cent per mile driver pay increase and unusually high fuel prices. For the first time since 2001 we ended the year with a larger fleet compared to the previous year. We continue to increase freight rates, which will allow us to increase driver wages by another one cent per mile effective March 1, 2005. Almost all of our trucks are seated at this time but we understand that further driver pay increases are necessary to enable us to attract and retain safe, experienced, professional drivers. We continue to modernize our tractor and trailer fleet and plan to purchase 200 replacement tractors and 280 replacement trailers in 2005. "We are pleased with these financial results and look forward to further improvement in 2005 through modest fleet growth and continued improvement in our operating ratio." Smithway is a truckload carrier that hauls diversified freight nationwide, concentrating primarily on the flatbed segment of the truckload market. Its Class A Common Stock is traded on the Nasdaq SmallCap Market under the symbol "SMXC." This press release and statements made by the Company in its stockholder reports and public filings, as well as oral public statements by Company representatives, may contain certain forward-looking information, usually identified by words such as "anticipates," "believes," "estimates," "projects," "expects," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in forward-looking statements. The following factors, among others, could cause actual results to differ materially from those in forward-looking statements: failure to sustain the recent return to quarterly operating profitability, which could result in violation of bank covenants and acceleration of indebtedness at several financial institutions; the ability to obtain financing on acceptable terms, and obtain waivers and amendments to current financing in the event of default; economic recessions or downturns in customers' business cycles; excessive increases in capacity within truckload markets; surplus inventories; decreased demand for transportation services offered by the Company; increases or rapid fluctuations in inflation, interest rates, fuel prices, and fuel hedging; the availability and costs of attracting and retaining qualified drivers and owner-operators; increases in insurance premiums and deductible amounts, or changes in excess coverage, relating to accident, cargo, workers' compensation, health, and other claims; the resale value of used equipment and prices of new equipment; seasonal factors such as harsh weather conditions that increase operating costs; regulatory requirements that increase costs and decrease efficiency, including emissions standards and hours-of-service regulations; changes in management; and the ability to negotiate, consummate, and integrate acquisitions. Readers should review and consider the various disclosures made by the Company in this press release, stockholder reports, and in its Forms 10-K, 10-Q, and other public filings. The Company disclaims any such obligation to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise. SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except share and per share data and operating statistics) Three months ended Year ended December 31, December 31, (unaudited) (unaudited) 2003 2004 2003 2004 Operating revenue: Freight $40,592 $49,852 $164,648 $188,190 Other 149 212 681 811 Operating revenue 40,741 50,064 165,329 189,001 Operating expenses: Purchased transportation 13,006 16,254 55,596 61,638 Compensation and employee benefits 12,694 14,196 51,506 54,468 Fuel, supplies, and maintenance 7,506 11,075 29,857 38,427 Insurance and claims 1,125 1,683 4,393 5,636 Taxes and licenses 871 875 3,444 3,653 General and administrative 1,853 1,781 6,934 6,929 Communications and utilities 333 312 1,463 1,274 Depreciation and amortization 3,281 2,645 14,239 12,340 Total operating expenses 40,669 48,821 167,432 184,365 (Loss) earnings from operations 72 1,243 (2,103) 4,636 Other (expense) income: Interest expense (392) (422) (1,781) (1,563) Interest income 1 28 26 54 Life Insurance Proceeds - - - 727 (Loss) earnings before income taxes (319) 849 (3,858) 3,854 Income tax (benefit) expense (51) 462 (1,269) 1,613 Net (loss) earnings $(268) $387 $(2,589) $2,241 Basic (loss) earnings per share $(0.06) $0.08 $(0.53) $0.46 Diluted (loss) earnings per share $(0.06) $0.08 $(0.53) $0.45 Basic weighted average common shares outstanding 4,846,821 4,860,841 4,846,821 4,850,935 Diluted weighted average common shares outstanding 4,846,821 4,986,329 4,846,821 4,951,934 Operating Statistics 2003 2004 2003 2004 Operating ratio 99.8% 97.5% 101.3% 97.5% Average operating revenue per tractor per week $2,642 $3,159 $2,577 $3,065 Average revenue per tractor per week $2,434 * $2,679 * $2,367 * $2,712 * Average revenue per seated tractor per week $2,548 * $2,742 * $2,484 * $2,797 * Average length of haul in miles 677 650 659 658 Average revenue per loaded mile $1.40 * $1.50 * $1.37 * $1.46 * Ending company tractors 750 757 750 757 Ending owner/operators tractors 430 445 430 445 Ending trailers 2,278 2,101 2,278 2,101 Weighted average tractors 1,186 1,219 1,234 1,186 *excludes fuel surcharge, brokerage, and other revenue. SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) December 31, December 31, 2003 2004 ASSETS Current assets: Cash and cash equivalents $355 $5,054 Receivables, net 14,697 16,776 Inventories 882 948 Prepaid expenses and other 4,304 4,142 Total current assets 20,238 26,920 Property and equipment 124,634 117,048 Less accumulated depreciation 70,235 67,772 Net property and equipment 54,399 49,276 Other assets 2,043 2,080 Total assets $76,680 $78,276 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current debt $10,582 $9,301 Accounts payable and accrued expenses 13,438 15,256 Total current liabilities 24,020 24,557 Long-term debt 23,035 20,008 Deferred income taxes 9,020 10,702 Total liabilities 56,075 55,267 Stockholders' equity 20,605 23,009 Total liabilities and stockholders' equity $76,680 $78,276 DATASOURCE: Smithway Motor Xpress Corp. CONTACT: Douglas C. Sandvig, Senior Vice President, Treasurer and Chief Financial Officer of Smithway Motor Xpress Corp., +1-515-576-7418 Web site: http://www.smxinc.com/

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