SMXC Smithway (MM)

Smithway Motor Xpress Corp. Reports Fourth Quarter and Year End Results FORT DODGE, Iowa, Feb. 17 /PRNewswire-FirstCall/ -- Smithway Motor Xpress Corp. announced today financial and operating results for the fourth quarter and year ended December 31, 2003. For the quarter, operating revenue increased approximately 2.5% to $40.7 million from $39.7 million for the corresponding quarter in 2002. The Company's net loss was $268,000, or ($0.06) per basic and diluted share, compared with net loss of $4.7 million, or ($0.97) per basic and diluted share, for the same quarter in 2002. For the year, operating revenue decreased approximately 2.4% to $165.3 million from $169.5 million in 2002. The Company's net loss in 2003 was $2.6 million, or ($0.53)per basic and diluted share, compared with net loss of $8.7 million, or ($1.79) per basic and diluted share, for 2002. The main contributors to the improvement in operating results were increased revenue production of the tractor fleet and continuous attention to the previously discussed plan for profit improvement. Also, the fourth quarter results in 2002 included charges totaling $3.1 million, after tax, for impairment of goodwill and an increase to insurance reserves. G. Larry Owens, Executive Vice President, Chief Administrative Officer and Chief Financial Officer, commented, "During the fourth quarter, the Company achieved revenue growth for the first time in 12 quarters. Despite a fleet which decreased in numbers by 9%, the Company's fourth quarter 2003 revenue exceeded the revenue from the fourth quarter of 2002. For the quarter, average revenue per seated tractor per week increased by approximately 11.5% versus the fourth quarter of 2002 as new initiatives focusing on asset productivity and lane flow were continued and freight demand increased, allowing for a two cent increase in revenue per loaded mile, increased revenue miles per tractor, and decreased deadhead. Additionally, during the quarter, the Company had fewer unseated tractors. "The Company was in compliance with all loan covenants at December 31, 2003 and expects to remain in compliance throughout 2004. After two years of limited capital acquisitions, the Company has negotiated for the purchase and financing of over200 new tractors during 2004, allowing for replacement of older, high mileage tractors. "We are pleased that initiatives to reduce expenses and improve operations, implemented in the last six months, are impacting current results and have set the stage for a return to profitability. Finally, we continue to be very pleased with our safety record." 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 National 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 turn around continued operating losses, which could result in further 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 new 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) 2002 2003 2002 2003 Operating revenue: Freight $39,686 $40,592 $168,918 $164,648 Other 51 149 550 681 Operating revenue 39,737 40,741 169,468 165,329 Operating expenses: Purchased transportation 14,330 13,006 62,364 55,596 Compensation and employee benefits 12,552 12,416 51,834 50,328 Fuel, supplies, and maintenance 7,286 7,506 27,722 29,857 Insurance and claims 2,252 1,403 7,324 5,571 Taxes and licenses 816 871 3,444 3,444 General and administrative 1,708 1,853 7,153 6,934 Communications and utilities 426 333 1,783 1,463 Depreciation and amortization 7,637 3,281 19,725 14,239 Total operating expenses 47,007 40,669 181,349 167,432 Earnings (loss) from operations (7,270) 72 (11,881) (2,103) Financial (expense) income: Interest expense (373) (392) (1,955) (1,781) Interest income 18 1 40 26 Loss before income taxes (7,625) (319) (13,796) (3,858) Income tax benefit (2,902) (51) (5,118) (1,269) Net loss ($4,723) ($268) ($8,678) ($2,589) Basic and diluted loss per share ($0.97) ($0.06) ($1.79) ($0.53) Basic weighted average common shares outstanding 4,846,021 4,846,821 4,845,652 4,846,821 Diluted weighted average common shares outstanding 4,846,021 4,846,821 4,845,652 4,846,821 Operating Statistics 2002 2003 2002 2003 Operating ratio 118.3% 99.8% 107.0% 101.3% Average operating revenue per tractor per week $2,353 $2,642 $2,311 $2,577 Average revenue per tractor per week $2,177 * $2,434 * $2,162 * $2,367 * Average revenue per seated tractor per week $2,285 * $2,548 * $2,391 * $2,484 * Average length of haul in miles 659 677 664 659 Average revenue per loaded mile $1.38 * $1.40 * $1.37 * $1.37 * Ending company tractors 773 750 773 750 Ending owner/operators tractors 521 430 521 430 Ending trailers 2,480 2,278 2,480 2,278 Weighted average tractors 1,299 1,186 1,410 1,234 *excludes fuel surcharge, brokerage, and other revenue. SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) December 31, December 31, 2002 2003 ASSETS Current assets: Cash and cash equivalents $105 $355 Receivables, net 14,125 14,697 Inventories 868 882 Prepaid expenses and other 4,508 4,304 Total current assets 19,606 20,238 Property and equipment 131,601 124,634 Less accumulated depreciation 64,031 70,235 Net property and equipment 67,570 54,399 Other assets 2,233 2,043 Total assets $89,409 $76,680 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current debt $11,595 $10,582 Accounts payable and accrued expenses 12,139 13,438 Total current liabilities 23,734 24,020 Long-term debt 32,225 23,035 Deferred income taxes 10,257 9,020 Total liabilities 66,216 56,075 Stockholders' equity 23,193 20,605 Total liabilities and stockholders' equity $89,409 $76,680 DATASOURCE: Smithway Motor Xpress Corp. CONTACT: Press, G. Larry Owens, Executive Vice President, Chief Administrative Officer, and Chief Financial Officer of Smithway Motor Xpress Corp., +1-515-576-7418 Web site: http://www.smxinc.com/

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