“While our first quarter results are disappointing, our underlying strategic progress has been meaningful.  In addition to narrowing our net loss during the quarter, we also improved operating cash flow, free cash flow (cash flow from operations less net cash used in investing activities) (which increased approximately $9.7 million) and the overall health of our balance sheet (44.2% total debt, less cash, to total capitalization ratio compared to 45.8% at March 31, 2010).  We believe freight and capacity dynamics in the marketplace are favorable for additional pricing gains in the second quarter, which we expect will benefit all three of our business segments as we press forward with the VEVA strategic plan.”

 

 

	(in thousands, except per share data)
	Three Months Ended
	March 31,
	2011			2010
	(unaudited)
Revenue:
Trucking revenue	$	82,874		$	80,690
Strategic Capacity Solutions revenue		11,568			6,210
Intermodal revenue		5,208			2,326
Base revenue		99,650			89,226
Fuel surcharge revenue		24,392			16,408
Total revenue		124,042			105,634
Operating expenses and costs:
Fuel and fuel taxes		34,727			28,395
Salaries, wages and employee benefits		33,100			33,227
Purchased transportation		25,379			15,605
Depreciation and amortization		12,614			12,499
Operations and maintenance		9,877			7,664
Insurance and claims		5,864			6,070
Operating taxes and licenses		1,398			1,393
Communications and utilities		985			946
Gain on disposal of assets, net		(915)			(7)
Other		4,195			3,340
Total operating expenses and costs		127,224			109,132
Operating loss		(3,182)			(3,498)
Other expenses (income):
Interest expense		743			769
Other, net		(11)			51
Total other expenses, net		732			820
Loss before income taxes		(3,914)			(4,318)
Income tax benefit		(1,198)			(1,322)
Net loss	$	(2,716)		$	(2,996)
Per share information:
Average shares outstanding (Basic)		10,298			10,277
Basic loss per share	$	(0.26)		$	(0.29)
Average shares outstanding (Diluted)		10,298			10,277
Diluted loss per share	$	(0.26)		$	(0.29)

 

 

	Three Months Ended
	March 31,
	2011				2010
	(unaudited)
Trucking:
Operating loss (in thousands) (1)	$	(4,117)			$	(3,760)
Operating ratio (2)		105.0	%			104.7	%
Total miles (in thousands) (3)		58,662				61,481
Empty mile factor		10.0	%			10.2	%
Weighted average number of tractors (4)		2,342				2,344
Average miles per tractor per period		25,048				26,229
Average miles per tractor per week		1,948				2,040
Average miles per trip		556				576
Base Trucking revenue per tractor per week	$	2,752			$	2,677
Number of tractors at end of period (4)		2,338				2,349
Strategic Capacity Solutions:
Operating income (in thousands) (1)	$	1,333			$	321
Gross margin (5)		15.6	%			13.0	%
Intermodal:
Operating loss (in thousands) (1)	$	(398)			$	(59)
Gross margin (5)		6.0	%			3.6	%

(2)   Operating ratio is calculated by dividing total operating expenses, net of fuel surcharge, by base revenue.

 

 

	(in thousands)
	March 31,			December 31,
	2011			2010
Assets
Current assets:
Cash	$	2,643		$	2,726
Receivables, net		56,940			47,983
Inventories		2,295			2,080
Prepaid expenses and other current assets		15,098			12,885
Total current assets		76,976			65,674
Property and equipment, at cost		430,272			423,115
Accumulated depreciation and amortization		(163,642)			(163,867)
Property and equipment, net		266,630			259,248
Note receivable		2,043			2,048
Other assets		431			415
Total assets	$	346,080		$	327,385
Liabilities and Stockholders’ equity
Current liabilities:
Bank drafts payable	$	4,218		$	4,233
Trade accounts payable		24,458			16,691
Current portion of insurance and claims accruals		5,330			4,725
Accrued expenses		10,708			8,401
Note payable		675			1,009
Current maturities of long-term debt and capital leases		27,318			18,766
Deferred income taxes		1,725			1,094
Total current liabilities		74,432			54,919
Deferred gain		617			618
Long-term debt and capital leases, less current maturities		83,591			79,750
Deferred income taxes		48,897			50,782
Insurance and claims accruals, less current portion		3,519			3,608
Total stockholders’ equity		135,024			137,708
Total liabilities and stockholders’ equity	$	346,080		$	327,385

 

 

Selected other financial information:
	(in thousands)
	Three Months Ended March 31,
	2011			2010
Net cash provided by operating activities	$	4,717		$	4,588
Capital expenditures, net		16,834			17,923

 

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.