U.S. Xpress Enterprises, Inc. (NYSE:USX) (the “Company”), the
nation’s fifth largest asset-based truckload carrier by revenue,
today announced that it has amended the Company’s credit
facility.
Eric Peterson, Chief Financial Officer, commented, “Given the
persistently soft truckload market conditions that we have
experienced this year, we proactively approached our lenders to
amend the financial covenants under our primary credit facility.
Although an amendment may not have been required at this time, we
believe it was prudent to gain additional flexibility to operate
our business in the normal course and continue to invest in the
future. We are pleased to have the ongoing support of our lenders,
and we remain confident in our strategy and business
initiatives.”
The amendment, among other things, contains the following new
financial covenant requirements:
Quarter Ending Quarter Ending Quarter Ending
Quarter Ending September 30, 2019 December 31, 2019
March 31, 2020 June 30, 2020 Existing New Existing
New Existing New Existing New Leverage Ratio
Requirement 3.00x 3.25x 3.00x 3.50x 3.00x 3.50x
3.00x 3.25x Interest Coverage Requirement 2.00x 2.00x
2.00x 1.20x 2.00x 1.20x 2.00x 1.75x
Additional information regarding the terms of the amendment can
be found on the Company’s form 8-K filed with the Securities and
Exchange Commission.
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 regarding the freight environment,
compliance with financial covenants, available liquidity, and any
other 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; in relation to exiting our fixed cost
investment in U.S.-Mexico cross border business, the actual costs
of severance, leased vehicle turn-in, equipment repositioning, and
other expenses associated with exiting the operations; the impact
of supply and demand on availability and pricing of replacement
loads for tractors in our U.S. network; the prices obtained for
assets being disposed of; and the timing and amount of deferred
consideration collected; our ability to adapt to changing market
conditions and technologies; disruptions to our information
technology and our inability to implement technology initiatives;
costs, diversion of management’s attention, and potential payments
made in connection with the multiple class action lawsuits arising
out of our IPO; and our ability to remediate several outstanding
material weaknesses. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20190930005789/en/
U.S. Xpress Enterprises, Inc. Brian Baubach Sr. Vice President
Corporate Finance and Investor Relations investors@usxpress.com
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