1.

Increased fuel costs adversely impacted the quarter by approximately $0.05 per share, driven by a $0.41 per gallon increase in our average price at the pump.  During the fourth quarter, the national average retail price of diesel fuel as reported by the U.S. Department of Energy rose during nine out of 13 weeks, including four consecutive weeks in December.  Pursuant to agreements with our customers, we add a surcharge for excess fuel costs to our freight bills.  While most of our contracts allow us to adjust the rate of that surcharge weekly based on the national average retail price of diesel fuel, there is a lag period.  For example, this week’s fuel surcharge rate is based on last week’s national average diesel price.  Thus, in periods of rising prices, our fuel surcharge is based on last week’s lower diesel price while we are paying this week’s higher diesel price at the pump.

 

2.	An increase in claims activity during the quarter resulted in approximately $0.06 per share of additional insurance and claims expense.

 

3.

We also experienced an increase of approximately $0.12 per share in equipment maintenance expense during the quarter.  Our maintenance costs remain stubbornly high as a result of (a) our older in-service tractor and trailer fleets, which had an average age of approximately 27 and 66 months, respectively, compared to approximately 27 and 62 months at the end of 2009, (b) the preparation costs we incurred as a result of increased equipment sales, (c) our continuing efforts to improve our safety and compliance performance, and (d) an increase in the costs recorded for tires placed into service.

 

 

 

 

 

 

 

 

 

 

 

	(in thousands, except per share data)
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2010			2009				2010			2009
Revenue:
Trucking revenue (1)	$	86,456		$	78,674		$	338,369		$	310,023
Strategic Capacity Solutions revenue (2)		10,102			4,158			34,917			13,741
Intermodal revenue (2)		5,449			2,313			13,597			7,756
Base revenue		102,007			85,145			386,883			331,520
Fuel surcharge revenue		20,084			15,171			73,278			50,848
Total revenue		122,091			100,316			460,161			382,368
Operating expenses and costs:
Salaries, wages and employee benefits		33,718			33,492			132,445			128,319
Fuel and fuel taxes		31,055			27,012			114,915			93,803
Purchased transportation		24,023			12,515			79,601			44,058
Depreciation and amortization		12,508			12,416			49,754			50,152
Operations and maintenance		10,154			6,715			36,086			26,594
Insurance and claims		5,981			4,500			22,811			21,086
Operating taxes and licenses		1,420			1,210			5,652			5,642
Communications and utilities		979			1,038			3,948			3,951
Gain on disposal of assets, net		(232)			(9)			(320)			(7)
Other		4,246			4,305			15,177			15,377
Total operating expenses and costs		123,852			103,194			460,069			388,975
Operating (loss) income		(1,761)			(2,878)			92			(6,607)
Other expenses (income):
Interest expense		795			768			3,438			3,030
Other, net		(145)			(133)			(45)			(207)
Total other expenses, net		650			635			3,393			2,823
Loss before income taxes		(2,411)			(3,513)			(3,301)			(9,430)
Income tax (benefit) expense		(614)			(1,001)			7			(2,253)
Net loss	$	(1,797)		$	(2,512)		$	(3,308)		$	(7,177)
Per share information:
Average shares outstanding (Basic)		10,297			10,275			10,295			10,240
Basic loss per share	$	(0.17)		$	(0.24)		$	(0.32)		$	(0.70)
Average shares outstanding (Diluted)		10,297			10,275			10,295			10,240
Diluted loss per share	$	(0.17)		$	(0.24)		$	(0.32)		$	(0.70)

 

 

 

 

	(in thousands)
	December 31,
	2010			2009
Assets
Current assets:
Cash and cash equivalents	$	2,726		$	797
Receivables, net		47,983			48,586
Inventories		2,080			1,541
Deferred income taxes		--			962
Prepaid expenses and other current assets		12,885			7,931
Total current assets		65,674			59,817
Property and equipment, at cost		423,115			426,752
Accumulated depreciation and amortization		(163,867)			(156,331)
Property and equipment, net		259,248			270,421
Note receivable		2,048			--
Other assets		415			462
Total assets	$	327,385		$	330,700
Liabilities and Stockholders’ equity
Current liabilities:
Bank drafts payable	$	4,233		$	5,678
Trade accounts payable		16,691			9,847
Current portion of insurance and claims accruals		4,725			4,356
Accrued expenses		8,401			9,008
Note payable		1,009			1,015
Current maturities of long-term debt and capital leases		18,766			63,461
Deferred income taxes		1,094			--
Total current liabilities		54,919			93,365
Deferred gain		618			--
Long-term debt and capital leases, less current maturities		79,750			39,116
Deferred income taxes		50,782			53,073
Insurance and claims accruals, less current portion		3,608			4,600
Total stockholders’ equity		137,708			140,546
Total liabilities and stockholders’ equity	$	327,385		$	330,700

 

 

	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
	2010				2009				2010				2009
Total miles (in thousands) (3)		62,783				61,088				246,742				240,379
Empty mile factor		10.1	%			10.5	%			10.0	%			10.9	%
Weighted average number of tractors (4)		2,369				2,320				2,347				2,338
Average miles per tractor per period		26,502				26,331				105,131				102,814
Average miles per tractor per week		2,016				2,003				2,016				1,972
Average miles per trip (5)(6)		569				594				560				599
Base Trucking revenue per tractor per week (6)	$	2,777			$	2,580			$	2,765			$	2,543
Number of tractors at end of period (4)		2,363				2,328				2,363				2,328
Operating ratio (7)		101. 7	%			103.4	%			99.9	%			102.0	%

 

(1)

Trucking revenue includes base revenue generated from our General Freight and Dedicated Freight service offerings.

(2)

We previously included the results of our Brokerage and Container-on-Flat-Car rail intermodal service offerings in Strategic Capacity Solutions.  Our Trailer-on-Flat-Car rail intermodal service offering was previously included in our Trucking operating segment.  Container-on-Flat-Car rail intermodal and Trailer-on-Flat-Car rail intermodal are now combined and reported as Intermodal and Brokerage is now reported as Strategic Capacity Solutions.  Strategic Capacity Solutions and Intermodal are classified as separate operating segments and aggregated into one segment for financial reporting purposes.

(6)

Because of the reclassification mentioned in footnote 2 above, previously reported amounts for average miles per trip and base Trucking revenue per tractor per week have been recalculated excluding Trailer-on-Flat-Car rail intermodal from Trucking.

(7)

Operating ratio is based upon total operating expenses, net of fuel surcharge, as a percentage of base revenue.

 

Selected other financial information:
	(in thousands)
	Twelve Months Ended December 31,
	2010			2009
Net cash provided by operating activities	$	48,245		$	32,851
Capital expenditures, net		38,261			39,694

 

This press release 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. 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,” “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 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. 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.  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.