SMXC Smithway (MM)

Smithway Motor Xpress Corp. Reports Second Quarter Results FORT DODGE, Iowa, July 23 /PRNewswire-FirstCall/ -- Smithway Motor Xpress Corp. (NASDAQ:SMXC) announced today financial and operating results for the second quarter and six months ended June 30, 2004. For the second quarter of 2004, operating revenue increased approximately 10.5% to $46.7 million from $42.2 million for the corresponding quarter in 2003. Our net earnings were $665,000, or $0.14 per basic and $0.13 per diluted share, compared with net loss of $458,000, or ($0.09) per basic and diluted share, for the same quarter in 2003. For the first six months of 2004, operating revenue increased approximately 9.9% to $90.3 million from $82.1 million for the first six months in 2003. Our net earnings were $1.0 million, or $0.21 per basic share and $0.20 per diluted share, compared with net loss of $2.0 million, or ($0.42) per basic and diluted share, for the first six months of 2003. Net earnings for the first six months of 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, our net earnings for the first six months would have been $273,000, or $0.06 per basic and diluted share, compared with net loss of $2.0 million, or ($0.42) per basic and diluted share, for the first six months of 2003. G. Larry Owens, President and Chief Executive Officer, commented, "We are pleased to announce our return to quarterly and year-to-date profitability. For the quarter, average revenue per seated tractor per week increased by $416, or 16.6%, compared to the second quarter of 2003 as we continued our focus on asset productivity and lane flow and as freight demand increased, allowing for a nine cent increase in revenue per loaded mile, increased revenue miles per tractor, and decreased deadhead. We were in compliance with all loan covenants at June 30, 2004 and we expect to remain in compliance throughout 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 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 Six months ended June 30, June 30, (unaudited) (unaudited) 2003 2004 2003 2004 Operating revenue: Freight $42,075 $46,461 $81,731 $89,869 Other 166 218 396 410 Operating revenue 42,241 46,679 82,127 90,279 Operating expenses: Purchased transportation 14,344 15,181 28,699 29,259 Compensation and employee benefits 12,653 12,984 25,027 26,408 Fuel, supplies, and maintenance 7,094 8,984 14,931 17,642 Insurance and claims 1,476 1,467 2,498 2,957 Taxes and licenses 839 991 1,680 1,872 General and administrative 1,856 1,712 3,214 3,434 Communications and utilities 381 314 793 680 Depreciation and amortization 3,781 3,315 7,491 6,492 Total operating expenses 42,424 44,948 84,333 88,744 (Loss) earnings from operations (183) 1,731 (2,206) 1,535 Other (expense) income: Interest expense (496) (390) (946) (763) Interest income 2 6 4 10 Life Insurance Proceeds - - - 727 (Loss) earnings before income taxes (677) 1,347 (3,148) 1,509 Income tax (benefit) expense (219) 682 (1,132) 509 Net (loss) earnings $(458) $665 $(2,016) $1,000 Basic (loss) earnings per share $(0.09) $0.14 $(0.42) $0.21 Diluted (loss) earnings per share $(0.09) $0.13 $(0.42) $0.20 Basic weighted average common shares outstanding 4,846,821 4,847,173 4,846,821 4,846,997 Diluted weighted average common shares outstanding 4,846,821 4,938,463 4,846,821 4,926,214 Operating Statistics 2003 2004 2003 2004 Operating ratio 100.4% 96.3% 102.7% 98.3% Average operating revenue per tractor per week $2,585 $3,109 $2,485 $2,975 Average revenue per tractor per week $2,381* $2,803* $2,274* $2,700* Average revenue per seated tractor per week $2,503* $2,919* $2,388* $2,803* Average length of haul in miles 647 663 649 665 Average revenue per loaded mile $1.37* $1.46* $1.36* $1.43* Ending company tractors 760 722 760 722 Ending owner/operators tractors 467 433 467 433 Ending trailers 2,317 2,200 2,317 2,200 Weighted average tractors 1,257 1,155 1,271 1,167 *excludes fuel surcharge, brokerage, and other revenue. SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) December 31, June 30, 2003 2004 ASSETS Current assets: Cash and cash equivalents $355 $2,913 Receivables, net 14,697 17,919 Inventories 882 1,096 Prepaid expenses and other 4,304 4,407 Total current assets 20,238 26,335 Property and equipment 124,634 124,572 Less accumulated depreciation 70,235 68,984 Net property and equipment 54,399 55,588 Other assets 2,043 2,015 Total assets $76,680 $83,938 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current debt $10,582 $11,323 Accounts payable and accrued expenses 13,438 16,553 Total current liabilities 24,020 27,876 Long-term debt 23,035 24,577 Deferred income taxes 9,020 9,875 Total liabilities 56,075 62,328 Stockholders' equity 20,605 21,610 Total liabilities and stockholders' equity $76,680 $83,938 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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