1 / 20

USA Truck, Inc. (NASDAQ: USAK) Investor Presentation February 2018

USA Truck, Inc. is a trusted and innovative transportation solutions provider, dedicated to improving the lives of its team members, customers, industry partners, and communities. We provide a diverse range of services including trucking, logistics, and asset-light solutions throughout North America.

dbrackett
Download Presentation

USA Truck, Inc. (NASDAQ: USAK) Investor Presentation February 2018

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. USA Truck, Inc. (NASDAQ: USAK)Investor PresentationFebruary 2018

  2. Disclosur Statement Our Vision: USA Truck is driven to be a premier North American transportation solutions provider that improves the lives of team members, customers, industry partners, and our communities. We promote a culture of trust in a safe, fun, and friendly environment where people grow and thrive.

  3. Disclosure Statement Forward-Looking Statements This presentation contains 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. Such forward-looking statements are made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. These statements generally may be identified by their use of terms or phrases such as “expects,” “estimates,” “anticipates,” “projects,” “believes,” “plans,” “goals,” “intends,” “may,” “will,” “should,” “could,” “potential,” “continue,” “strategy,” “future” and terms or phrases of similar substance. 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. Accordingly, actual results may differ materially from those set forth in the forward-looking statements. Readers should review and consider the factors that may affect future results and other disclosures by the Company in its press releases, Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made. 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, except as required by law. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release might not occur. All forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by this cautionary statement. Non-GAAP Financial Data This presentation includes the use of EBITDA, Adjusted EBITDA, adjusted operating ratio and Adjusted EPS, financial measures that are not in accordance with generally accepted accounting principles (“GAAP”). Each such measure is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors and lenders. While management believes such measures are useful for investors, they should not be used as a replacement for financial measures that are in accordance with GAAP. Please see the Appendix to this presentation for a reconciliation to the closest GAAP financial measures. The Company defines EBITDA as net loss, plus interest expense net of interest income, provision for income taxes and depreciation and amortization. It defines Adjusted EBITDA as these items plus non-cash equity compensation, restructuring, impairment and other costs, and severance costs included in salaries, wages and employee benefits. Adjusted operating ratio is calculated as operating expenses less restructuring, impairment (excluding impairment of assets held for sale) and other costs, net of fuel surcharges, as a percentage of operating revenue excluding fuel surcharge revenue. Adjusted EPS is defined as earnings or loss before income taxes plus loss on extinguishment of debt, restructuring, impairment and other costs, and severance costs included in salaries, wages and employee benefits reduced by our statutory income tax rate, divided by weighted average diluted shares outstanding. Because not all companies use identical calculations, the Company's presentation of non-GAAP financial measures may not be comparable to similarly titled measures of other companies. All forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by this cautionary statement. References to the “Company,” “we,” “us,” “our” and words of similar import refer to USA Truck, Inc. and its subsidiary.

  4. Company Overview CAPACITY SOLUTIONS PROVIDER Trucking Logistics • 5 regional centers, 2 satellite offices • Plus Power – ICs pulling company trailers • Portfolio of asset-light services, focused on truckload configurations via dry van, flatbed, refrigerated and intermodal serving all of North America • 1,681 in-service tractors, includes 265 independent contractors • 5,637 trailers • Network concentration east of Interstate 35 ~95 TOP 100 CUSTOMERS UTILIZE MULTIPLE SERVICES

  5. Current Business Mix Operating Revenue (1)FY 2017 Consolidated Base Revenue Composition (3)FY2017 ($/M) ($/M) Adjusted Operating Income (2) FY 2017 Fleet Mix ($/M) Trucking Trucking • Operating is defined as revenue less intersegment eliminations. See Appendix for GAAP reconciliation. • See Appendix for reconciliation of non-GAAP to GAAP and calculation of Adjusted Operating income. • Excludes fuel surcharge revenue. See Appendix for non-GAAP to GAAP reconciliation.

  6. 4Q 2017 Results • Consolidated operating revenue of $123.3 million, up 19.5% YOY • Consolidated operating income of $5.5 million, net income of $14.8 million, operating ratio of 95.5%; all represent YOY improvements • Trucking Segment generated operating income of $3.5 million, improved from $(6.2) million loss in 4Q16, and $(1.2) million loss in 3Q17 • USAT Logistics Segment generated operating income of $2.0 million, improved from $1.5 million in 4Q16, but down from $3.0 million in 3Q17 Operating Revenue by Segment ($/M) 103.1 Operating Income (Loss) by Segment ($/M) 5.5 (4.7) • See Appendix for non-GAAP to GAAP reconciliation and calculation of adjusted EPS.

  7. Trucking 4Q Results Base Revenue per Loaded Mile • Base rate per loaded mile increased $0.352, or 20.1%, vs 4Q16 and $0.25, or 13.5%, sequentially • Miles per seated truck per week decreased 58 miles per tractor, or 2.9%, over 4Q16, and increased 8 miles per tractor, or 0.4% sequentially • Unseated tractors at 5.5% in 4Q17, down from 9.3% in 4Q16, and down from 6.5% sequentially • Base revenue per seated tractor per week increased by $487, or 16.1% over 4Q16, and increased $378, or 12.1% sequentially ($) Avg. Miles/Seated Truck/Week Base Revenue per Seated Tractor per Week ($)

  8. USAT Logistics 4Q Results Operating Revenue • $39.5 million in operating revenue – up $6.3 million, or 19.0% YOY, and $1.7 million, or 4.5% sequentially • $7.1 million in gross margin – up $0.9 million, or 14.6% YOY, but down $0.5 million, or 7.3% sequentially • tightening spot market driving compressed gross margin percentage • 24K loads – down 1.4K, or 5.5% YOY, and 3.1K, or 11.4% sequentially • Implementation of value-driven market-based pricing model, designed to: • increase volume • normalize gross margin • increase market share • strengthening customer relationships ($/M) Gross Margin(1) ($/M) Gross Margin defined as operating revenue less purchased transportation expense. Load Count (000s)

  9. Balance Sheet and Liquidity • Total stockholders’ equity of $66.5 million at December 31, 2017 • Approximately $61.8 million in liquidity available under revolving credit facility as of December 31, 2017 • Anticipated 2018 Net Capex of $40-50 million • Reduce leverage ratio over the long-term, targeting Net Debt to Adjusted EBITDA of between 2.5x and 3.0x See Appendix for non-GAAP to GAAP reconciliation and calculation of adjusted EBITDA.

  10. 2017 Strategic Action Plan & Performance Targets Assessment Strategic Action Plan Performance Targets • Increase rates • Addition of certain short-haul routes • Further improve maintenance costs • Leverage outside spend • Continued implementation of extended warranty program • Further optimize network • Focus on technology and new processes to continue improvements in utilization • Increase percentage of independent contractors to 15-25% • Increase base revenue per seated tractor per week by ~3-5% over the 2016 average of $2,998 • Attained $3,179 in base revenue per seated tractor per week, a 6.0% increase • Increase seated truck count by ~5-7% throughout 2017 over the 4Q16 average of 1,547. • Achievement of 1,592 seated tractors. 2.9% above the 4Q16 average • Fixed Controllable Cost Reduction • Reduction of $4.1 million in fixed controllable costs throughout 2017

  11. 2018 Strategic Action Plan & Performance Targets Strategic Action Plan Performance Targets • Increase Trucking base revenue per seated tractor • Continue evolution of network, customer, market and lane strategies • Drive incremental asset utilization • Minimize unseated truck % • Grow IC fleet • Decrease expenses through continued cost management • Investment in technology to increase safety and efficiency • Implement value-driven customer pricing model for USAT Logistics. • Designed to increase volume, normalize gross margin through transparent, market-based pricing. • Increase base revenue per seated tractor per week by ~5-7% over the 2017 FY average of $3,179 • Maintain unseated tractor percentage at, or below, 5% • Increase seated tractor count by ~4-6% over the 2017 FY average of 1,592 • Primarily through IC-O/O growth • Reduce $3-5 million of fixed controllable costs in 2018, on a CPM basis • Grow USAT Logistics business to ~35% of Total Revenues

  12. APPENDIX

  13. GAAP to Non-GAAP Reconciliations

  14. GAAP to Non-GAAP Reconciliations

  15. GAAP to Non-GAAP Reconciliations

  16. Trucking GAAP Reconciliation • ADJUSTED OPERATING RATIO RECONCILIATION

  17. USAT Logistics GAAP Reconciliation • ADJUSTED OPERATING RATIO RECONCILIATION

  18. Trucking 4Q Results Avg. Miles/Seated Truck/Week • Average weekly miles per seated truck • Decreased 58 miles per week, or ~3% vs. 4Q16, improved 8 miles per week, or ~0.4% vs. 3Q17 • 4Q17 salaries, wages and benefits up 4.3% vs. 4Q16; up 7.6% on a CPM basis • 4Q17 insurance and claims expense per mile increased both YOY and sequentially • 4Q17 O&M increased 24.4% vs. 4Q16 and increased 1.6% vs. 2Q17 • 4Q17 purchased transportation/mile 12.3% lower than 3Q17, on 16.2% decrease in independent contractor fleet • 4Q17 total operating expenses up $0.105 per mile compared to 3Q17 • Base revenue excludes fuel surcharge revenue.

  19. Experienced Executive Leadership Team Jim Craig EVP, Chief Commercial Officer and President, USAT Logistics Jason Bates Executive Vice President and CFO James Reed President and CEO Werner Hugo Senior Vice President, Trucking Operations Cheryl Stone Senior Vice President, Human Resources Kim Littlejohn Vice President, Chief Technology Officer Allen Lowry Vice President, Safety and Risk Management Richard Hainlen Vice President, Revenue Operations Jeff Harris Vice President, Maintenance

  20. Back Cover

More Related