Smithway Motor Xpress Corp. Reports First Quarter Results FORT
DODGE, Iowa, April 30 /PRNewswire-FirstCall/ -- Smithway Motor
Xpress Corp. announced today financial and operating results for
the first quarter ended March 31, 2004. For the quarter, operating
revenue increased approximately 9.3% to $43.6 million from $39.9
million for the corresponding quarter in 2003. Our net earnings
were $335,000, or $0.07 per basic and diluted share, compared with
net loss of $1.6 million, or ($0.32) per basic and diluted share,
for the same quarter in 2003. Net earnings for the quarter include
$727,000, or $0.15 per basic and diluted share, of tax-free life
insurance proceeds. Without the life insurance proceeds, our net
loss for the quarter would have been $392,000, or ($0.08) per basic
and diluted share, compared with net loss of $1.6 million, or
($0.32) per basic and diluted share, for the same quarter in 2003.
G. Larry Owens, President and Chief Executive Officer, commented,
"We are pleased to report the continued success of profit
improvement initiatives implemented in 2003. We believe these
measures, which have continued to impact quarter to quarter
operating results, will return us to profitability in the near
future. Our first quarter 2004 revenue exceeded the revenue from
the first quarter of 2003 by $3.7 million, a 9.3% improvement,
resulting from a dramatic increase in our truck production. For the
quarter, average revenue per seated tractor per week increased by
$586 or 18.2% compared to the first quarter of 2003 as we continued
our focus on asset productivity and lane flow and as freight demand
increased, allowing for a six cent increase in revenue per loaded
mile, increased revenue miles per tractor, and decreased deadhead.
Additionally, during the quarter, we had fewer unseated tractors
compared to the same quarter a year ago. "We continue to analyze
customer relationships in an effort to maximize truck production.
Recently we have been successful in adding customers who require
dedicated service. These arrangements provide repetitive routes and
pay for all miles, thereby increasing our truck yield, improving
driver satisfaction, and raising our rate per total mile. "We were
in compliance with all loan covenants at March 31, 2004 and we
expect to remain in compliance throughout 2004. After two years of
limited capital acquisitions, we have taken delivery of 63 new
tractors allowing for replacement of older, high mileage tractors.
We plan to replace 20 tractors per month throughout the remainder
of 2004. 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 March 31, (unaudited) 2003 2004
Operating revenue: Freight $39,656 $43,408 Other 230 192 Operating
revenue 39,886 43,600 Operating expenses: Purchased transportation
14,355 14,078 Compensation and employee benefits 12,374 13,424
Fuel, supplies, and maintenance 7,837 8,658 Insurance and claims
1,022 1,490 Taxes and licenses 841 881 General and administrative
1,358 1,722 Communications and utilities 412 366 Depreciation and
amortization 3,710 3,177 Total operating expenses 41,909 43,796
Earnings (loss) from operations (2,023) (196) Other (expense)
income: Interest expense (450) (373) Interest income 2 4 Life
Insurance Proceeds - 727 Earnings (Loss) before income taxes
(2,471) 162 Income tax benefit (913) (173) Net earnings (loss)
$(1,558) $335 Basic and diluted earnings (loss) per share $(0.32)
$0.07 Basic weighted average common shares outstanding 4,846,821
4,846,821 Diluted weighted average common shares outstanding
4,846,821 4,912,869 Operating Statistics 2003 2004 Operating ratio
105.1% 100.4% Average operating revenue per tractor per week $2,388
$2,847 Average revenue per tractor per week $2,169 * $2,601 *
Average revenue per seated tractor per week $2,276 * $2,690 *
Average length of haul in miles 673 667 Average revenue per loaded
mile $1.34 * $1.40 * Ending company tractors 771 748 Ending
owner/operators tractors 515 434 Ending trailers 2,434 2,236
Weighted average tractors 1,285 1,178 *excludes fuel surcharge,
brokerage, and other revenue. SMITHWAY MOTOR XPRESS CORP. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in
thousands) December 31, March 31, 2003 2004 ASSETS Current assets:
Cash and cash equivalents $355 $450 Receivables, net 14,697 18,413
Inventories 882 957 Prepaid expenses and other 4,304 5,132 Total
current assets 20,238 24,952 Property and equipment 124,634 126,569
Less accumulated depreciation 70,235 70,930 Net property and
equipment 54,399 55,639 Other assets 2,043 2,015 Total assets
$76,680 $82,606 LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Current debt $10,582 $11,134 Accounts payable and
accrued expenses 13,438 16,100 Total current liabilities 24,020
27,234 Long-term debt 23,035 25,413 Deferred income taxes 9,020
9,019 Total liabilities 56,075 61,666 Stockholders' equity 20,605
20,940 Total liabilities and stockholders' equity $76,680 $82,606
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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