U.S. Xpress Reports Second Quarter 2022 Financial Results

Chattanooga, Tenn. - August 3, 2022 - U.S. Xpress Enterprises, Inc. (NYSE: USX) today announced financial and operating results for the second quarter of 2022.

Second Quarter 2022 Highlights compared to Second Quarter 2021

•
Operating revenue of $553.7 million compared to $475.0 million
•
Operating income of $6.5 million compared to $8.9 million
•
Adjusted operating income1 of $2.5 million compared to $8.9 million
•
Loss per share of $0.01 compared to earnings per diluted share (EPS) of $0.37
•
Adjusted loss per share1 of $0.05 compared to EPS of $0.08

"Second quarter highlights included sequential overall fleet growth and improved margins in our Brokerage segment and Dedicated division," said Eric Fuller, President and CEO. "However, these positive accomplishments were partially offset by higher net fuel and claims expense in the quarter, particularly in our OTR division. While our Variant fleet grew to approximately 1,900 tractors, its results continued to lag due to lower utilization and higher turnover. Looking ahead to the third quarter, our immediate priorities remain improving utilization in our Variant fleet, lowering our fixed costs per tractor and growing our overall fleet size."

Second Quarter 2022 Financial Performance

Quarter Ended June 30,
Six Months Ended June 30,
2022
2021
2022
2021
Operating revenue
$
553,703
$
475,021
$
1,070,891
$
925,781
Revenue, excluding fuel surcharge
$
479,185
$
437,533
$
943,512
$
855,174
Operating income
$
6,468
$
8,906
$
6,258
$
16,904
Net income (loss) attributable to controlling interest
$
(554
)
$
19,096
$
(9,456
)
$
21,634
Earnings (losses) per diluted share
$
(0.01
)
$
0.37
$
(0.19
)
$
0.42
Adjusted net income (loss) attributable to controlling interest1
$
(2,300
)
$
4,185
$
(3,359
)
$
6,723
Adjusted earnings (losses) per diluted share1
$
(0.05
)
$
0.08
$
(0.06
)
$
0.13
Operating Ratio
Truckload operating ratio
99.8
%
97.7
%
99.9
%
97.9
%
Brokerage operating ratio
93.7
%
99.8
%
97.2
%
99.2
%
Operating ratio
98.8
%
98.1
%
99.4
%
98.2
%
Adjusted operating ratio1
99.5
%
98.0
%
99.4
%
98.0
%
1 Second quarter 2022 adjustments included a pretax $4.0 million gain on sale of a terminal and a pretax non-cash mark-to-market adjustment of $1.8 million related to a strategic investment. See "Non-GAAP Financial Measures" section of this earnings release for more detail including GAAP to Non-GAAP reconciliations.

Operating revenue was $553.7 million, an increase of $78.7 million compared to the second quarter of 2021. The increase was a combination of increased revenue in the Company's Truckload segment of $49.6 million and an increase of $37.0 million in fuel surcharge revenue partially offset by a decrease in Brokerage segment revenue of $7.9 million. Revenue, excluding the impact of fuel surcharge revenues increased $41.7 million to $479.2 million, an increase of 9.5% compared to the second quarter of 2021.

Operating income, on a GAAP basis, was $6.5 million for the second quarter of 2022 compared to $8.9 million in the second quarter of 2021 on both a GAAP and adjusted basis1. Second quarter 2022 operating expenses included an unfavorable settlement resulting in increased claims expense of $3.4 million from an insurance claim which originated prior to our 2018 IPO and for which the primary liable party lacked sufficient assets to pay. In addition, on an adjusted basis1, second quarter 2022 operating income excluded a $4.0 million gain on the sale of a terminal which was leased to a former subsidiary.
1
Net loss attributable to controlling interest for the second quarter of 2022 was $0.6 million, or $0.01 per diluted share, compared to net income of $19.1 million, or $0.37 per diluted share, in the second quarter of 2021. As a reminder, second quarter 2021 net income attributable to controlling interest benefitted from a $14.9 million, net of tax unrealized gain on a strategic equity investment.

Adjusted net loss attributable to controlling interest1 was $2.3 million or $0.05 per diluted share and excludes an unrealized loss on a strategic equity investment of $1.4 million, net of tax, and the gain on sale of the terminal mentioned above. This compares to net income attributable to controlling interest of $4.2 million, or $0.08 per diluted share, in the second quarter of 2021.

Variant Update

The Company continues to grow Variant's fleet, exiting the quarter with 1,889 tractors comprising approximately half of the overall OTR division. In the second quarter, Variant generated revenue of $87.7 million, net of fuel surcharge revenue, a 66.0% increase compared to the same period of the prior year. The year-over-year increase in revenue was primarily due to a 72.4% increase in seated tractors in the fleet.
Sequentially, Variant grew its fleet by approximately 200 tractors while average revenue per tractor declined primarily due to a lower rate per mile caused by the decline in the spot market during the quarter, which was partially offset by higher contract rates in the quarter.
Variant Key Metrics

Quarter Ended,
June 30,
March 31,
2022
2022
Ending truck count
1,889
1,691
Preventable accidents, per mm
7.87
8.12
Turnover
150
%
148
%
Average revenue miles per tractor per week (Utilization)
1,573
1,593
Average revenue per tractor per week
$
3,863
$
4,065

Mr. Fuller commented, "Sequentially, we were successful in continuing to grow our Variant fleet, and we continued to focus on restoring Variant's utilization to its previous levels. We lost some of our momentum in revenue productivity due to the rapid deterioration in the spot market which more than offset the higher contract rates in the quarter. Additionally, we expect the progress that we made in the quarter bringing more structure and discipline to our fleet operations will benefit utilization and driver turnover in the coming quarters, both of which are critical to improving our overall financial results."
2
Truckload Segment

Quarter Ended June 30,
Six Months Ended June 30,
2022
2021
2022
2021
Over-the-road
Average revenue per tractor per week1
$
3,909
$
3,837
$
3,875
$
3,778
Average revenue per mile1
$
2.543
$
2.278
$
2.544
$
2.223
Average revenue miles per tractor per week
1,537
1,684
1,523
1,699
Average tractors
3,700
3,318
3,677
3,369
Dedicated
Average revenue per tractor per week1
$
4,913
$
4,336
$
4,813
$
4,243
Average revenue per mile1
$
2.883
$
2.448
$
2.849
$
2.420
Average revenue miles per tractor per week
1,704
1,772
1,690
1,753
Average tractors
2,655
2,531
2,620
2,603
Consolidated
Average revenue per tractor per week1
$
4,328
$
4,053
$
4,266
$
3,981
Average revenue per mile1
$
2.694
$
2.354
$
2.679
$
2.311
Average revenue miles per tractor per week
1,607
1,722
1,592
1,723
Average tractors
6,355
5,849
6,297
5,972
1 Excluding fuel surcharge revenues

The Truckload segment generated revenue, excluding the impact of our fuel surcharge program, of $390.7 million compared to $341.0 million in the second quarter of 2021. This increase in Truckload segment revenue was due to a 14.4% increase in average revenue per mile combined with an increase in average tractors in the quarter of 506 which was partially offset by an 6.7% decrease in revenue miles per tractor.

Truckload operating income was $0.9 million compared to $8.7 million in the second quarter of 2021 on a GAAP basis. The decrease in Truckload operating income was primarily due to lower utilization and increased net fuel expense in the quarter, while the Truckload rate increases covered the general inflation in the business on a year-over-year basis.

Adjusted truckload operating loss1, which excludes the $4.0 million gain on sale of the terminal mentioned above was $3.1 million in the second quarter of 2022 compared to adjusted Truckload operating income1 of $8.7 million in the second quarter of 2021.

Brokerage Segment

Quarter Ended June 30,
Six Months Ended June 30,
2022
2021
2022
2021
Brokerage revenue
$
88,526
$
96,488
$
182,454
$
178,328
Gross margin %
20.6
%
12.0
%
16.9
%
12.9
%
Operating income
5,558
161
5,075
1,432
Operating ratio
93.7
%
99.8
%
97.2
%
99.2
%
Load count
33,522
44,676
75,634
86,861
Percentage of loads processed on digital platform
90.3
%
74.7
%
87.5
%
70.6
%

The Brokerage segment generated revenue of $88.5 million, which was a decline of 8.3% compared to the second quarter of 2021. The decrease in Brokerage segment revenue was driven by a 25.0% decrease in load count which more than offset the 22.3% increase in revenue per load compared to the second quarter of 2021.

Segment operating income was $5.6 million compared to $0.2 million in the second quarter of 2021. The increase in Brokerage segment operating income was primarily the result of lower purchased transportation expense in the second quarter as compared to the second quarter of 2021.
3
Liquidity and Capital Allocation

At the end of the second quarter of 2022, the Company had $155.7 million of liquidity (defined as cash balances plus availability under the Company's revolving credit facility), $418.5 million of net debt (defined as long-term debt, including current maturities, less cash balances), and $270.4 million of stockholders' equity.

Year-to-date, through June 30, 2022, capital expenditures, net of proceeds were $66.9 million, and exclude equipment financed under operating leases. As a reminder, the majority of the Company's annual capital expenditures relate to tractors and trailers, for which the Company generally uses a combination of loan financing agreements and finance lease arrangements to fund these acquisitions.

Outlook

Mr. Fuller commented, "Looking ahead to the third quarter, we are focused on continued overall fleet growth, restoring Variant's utilization to its previous levels which we believe will drive improvement in Variant's other key metrics as well as a continued focus on cost discipline and allocating capital to projects which we believe will drive the business forward. Our focused efforts in these areas are key to demonstrating the operating leverage potential of our model."

Conference Call Information

The Company will host a conference call and simultaneous webcast to discuss its second quarter 2022 financial and operating results on August 3, 2022, at 5:00 p.m. ET. The conference call can be accessed live by dialing 1-877-423-9813 or, for international callers, 1-201-689-8465 and asking to be joined to the US Xpress Second Quarter 2022 Earnings Conference Call. The webcast can be accessed on the Investor Relations website at investor.usxpress.com.

Supplemental Financial Information

Additional information regarding the Company's operating results is provided below as well as on the Company's investor page at investor.usxpress.com.

(1)
Non-GAAP Financial Measures

In addition to our net income determined in accordance with U.S. generally accepted accounting principles (''GAAP''), we evaluate operating performance using certain non-GAAP measures, including Adjusted Operating Ratio, Adjusted Operating Income, Adjusted Net Income Attributable to Controlling Interest, and Adjusted EPS (on a consolidated and, as applicable, segment basis). Management believes the use of non-GAAP measures assists investors and securities analysts in understanding the ongoing operating performance of our business by allowing more effective comparison between periods. Further, management uses non-GAAP Adjusted Operating Ratio, Adjusted Operating Income, Adjusted Net Income Attributable to Controlling Interest, and Adjusted EPS measures on a supplemental basis to remove items that may not be an indicator of performance from period-to-period. The non-GAAP information provided is used by our management and may not be comparable to similar measures disclosed by other companies. The non-GAAP measures used herein have limitations as analytical tools and should not be considered measures of income generated by our business or discretionary cash available to us to invest in the growth of our business. You should not consider the non-GAAP measures used herein in isolation or as substitutes for analysis of our results as reported under GAAP. Management compensates for these limitations by relying primarily on GAAP results and using non-GAAP financial measures on a supplemental basis.
4
Non-GAAP Reconciliation - Adjusted Operating Income and Adjusted Operating Ratio (unaudited)
Quarter Ended June 30,
Six Months Ended June 30,
(in thousands)
2022
2021
2022
2021
GAAP Presentation:
Total revenue
$
553,703
$
475,021
$
1,070,891
$
925,781
Total operating expenses
(547,235
)
(466,115
)
(1,064,633
)
(908,877
)
Operating income
$
6,468
$
8,906
$
6,258
$
16,904
Operating ratio
98.8
%
98.1
%
99.4
%
98.2
%
Non-GAAP Presentation
Total revenue
$
553,703
$
475,021
$
1,070,891
$
925,781
Fuel surcharge
(74,518
)
(37,488
)
(127,379
)
(70,607
)
Revenue, excluding fuel surcharge
479,185
437,533
943,512
855,174
Total operating expenses
547,235
466,115
1,064,633
908,877
Adjusted for:
Fuel surcharge
(74,518
)
(37,488
)
(127,379
)
(70,607
)
Impairment charges1
-
-
(2,970
)
-
Gain on sale of terminal2
4,002
-
4,002
-
Adjusted operating expenses
476,719
428,627
938,286
838,270
Adjusted operating income
$
2,466
$
8,906
$
5,226
$
16,904
Adjusted operating ratio
99.5
%
98.0
%
99.4
%
98.0
%
1During the first quarter of 2022, we incurred a non-cash adjustment of $2,970 due to the write off of obsolete technology
2During the second quarter of 2022, we recognized a gain of $4,002 on sale of terminal which was leased to a former subsidiary
5
Non-GAAP Reconciliation - Truckload Adjusted Operating Income and Adjusted Operating Ratio (unaudited)
Quarter Ended June 30,
Six Months Ended June 30,
(in thousands)
2022
2021
2022
2021
Truckload GAAP Presentation:
Total Truckload revenue
$
465,177
$
378,533
$
888,437
$
747,453
Total Truckload operating expenses
(464,267
)
(369,788
)
(887,254
)
(731,981
)
Truckload operating income
$
910
$
8,745
$
1,183
$
15,472
Truckload operating ratio
99.8
%
97.7
%
99.9
%
97.9
%
Truckload Non-GAAP Presentation
Total Truckload revenue
$
465,177
$
378,533
$
888,437
$
747,453
Fuel surcharge
(74,518
)
(37,488
)
(127,379
)
(70,607
)
Revenue, excluding fuel surcharge
390,659
341,045
761,058
676,846
Total Truckload operating expenses
464,267
369,788
887,254
731,981
Adjusted for:
Fuel surcharge
(74,518
)
(37,488
)
(127,379
)
(70,607
)
Impairment charges1
-
-
(2,235
)
-
Gain on sale of terminal2
4,002
-
4,002
-
Truckload Adjusted operating expenses
393,751
332,300
761,642
661,374
Truckload Adjusted operating income (loss)
$
(3,092
)
$
8,745
$
(584
)
$
15,472
Truckload Adjusted operating ratio
100.8
%
97.4
%
100.1
%
97.7
%
1During the first quarter of 2022, we incurred a non-cash adjustment of $2,235 due to the write off of obsolete technology
2During the second quarter of 2022, we recognized a gain of $4,002 on sale of terminal which was leased to a former subsidiary
6
Non-GAAP Reconciliation - Adjusted Net Income and EPS (unaudited)
Quarter Ended June 30,
Six Months Ended June 30,
(in thousands, except per share data)
2022
2021
2022
2021
GAAP: Net income (loss) attributable to controlling interest
$
(554
)
$
19,096
$
(9,456
)
$
21,634
Adjusted for:
Income tax provision (benefit)
79
6,443
(2,070
)
8,093
Income (loss) before income taxes attributable to controlling interest
$
(475
)
$
25,539
$
(11,526
)
$
29,727
Unrealized loss (gain) on equity investment1
1,757
(20,191
)
10,120
(20,191
)
Gain on sale of terminal2
(4,002
)
-
(4,002
)
-
Gain on sale of equity method investment3

-
-
(1,258
)
-
Impairment charges4
-
-
2,970
-
Adjusted income (loss) before income taxes
(2,720
)
5,348
(3,696
)
9,536
Adjusted income tax provision (benefit)
(420
)
1,163
(337
)
2,813
Non-GAAP: Adjusted net income (loss) attributable to controlling interest
$
(2,300
)
$
4,185
$
(3,359
)
$
6,723
GAAP: Earnings (losses) per diluted share
$
(0.01
)
$
0.37
$
(0.19
)
$
0.42
Adjusted for:
Income tax expense attributable to controlling interest
-
0.12
(0.04
)
0.15
Income (loss) before income taxes attributable to controlling interest
$
(0.01
)
$
0.49
$
(0.23
)
$
0.57
Unrealized loss (gain) on equity investment1
0.03
(0.39
)
0.20
(0.39
)
Gain on sale of terminal2
(0.08
)
-
(0.08
)
-
Gain on sale of equity method investment3
-
-
(0.02
)
-
Impairment charges4
-
-
0.06
-
Adjusted income (loss) before income taxes
(0.06
)
0.10
(0.07
)
0.18
Adjusted income tax provision (benefit)
(0.01
)
0.02
(0.01
)
0.05
Non-GAAP: Adjusted earnings (losses) per diluted share attributable to controlling interest
$
(0.05
)
$
0.08
$
(0.06
)
$
0.13
1During 2022 and 2021, we recognized an unrealized loss (gain) on a strategic equity investment
2During the second quarter of 2022, we recognized a gain of $4,002 on sale of terminal which was leased to a former subsidiary
3During the first quarter of 2022, we incurred a gain on sale related to an equity method investment in a former wholly owned subsidiary of $1,258
4During the first quarter of 2022, we incurred a non-cash adjustment of $2,970 due to the write off of obsolete technology
7
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," "optimistic," "will," "could," "should," "may," "focus," "seek," "potential," "continue," "goal," "target," "objective," derivations thereof, and similar terms and phrases. In this press release, such statements may include, but are not limited to, statements in the "Outlook" section, statements regarding the freight environment, expected rates, expected margins, future growth of our Variant fleet and overall fleet size, driver turnover, utilization in our Variant fleet, lowering fixed and other costs, allocating capital to projects that will drive the business forward, the expected impact of our Variant fleet and other initiatives, and any other statements concerning: any projections of earnings, revenues, cash flows, capital expenditures, compliance with financial covenants, or other financial items; any statement of plans, strategies, or objectives for future operations; any statements regarding future economic or industry conditions or performance; any statements regarding our responses to COVID-19 and the associated economic conditions; 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 and availability; future capital expenditures, including equipment purchasing and leasing plans and equipment turnover (including expected trade-ins); 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; 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; independent contractors we contract could be deemed by regulators or the judicial process to be employees; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, intermodal, and brokerage (including digital brokerage) competitors; changes in regulatory requirements that increase costs, decrease efficiency, or reduce the availability of drivers; safety-related evaluations and rankings under the Federal Motor Carrier Safety Administration's Compliance, Safety, Accountability program; increasing attention on environmental, social and governance matters; 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; our ability to adapt to changing market conditions and technologies, including the future use of autonomous tractors; disruptions to our information technology; the cost of and our ability to effectively and efficiently implement technology initiatives; costs, diversion of management's attention, and potential payments made in connection with the multiple class action lawsuits a stockholder derivative lawsuit arising out of our IPO; credit, reputational and relationship risks of certain of our current and former equity investments; the dual class structure of our common stock has the effect of concentrating voting control with certain members of the Fuller and Quinn families, which limits or precludes the ability of other stockholders to influence corporate matters; our ability to maintain effective internal controls without material weaknesses; and the impact of the recent coronavirus outbreak or other similar outbreaks. 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.

About US Xpress

Through its subsidiaries, U.S. Xpress Enterprises, Inc. offers customers over-the-road, dedicated, and brokerage services. Founded in 1985, the Company utilizes a combination of smart technology, a modern fleet of tractors and a network of highly trained, professional drivers to efficiently move freight for a wide variety of customers. U.S. Xpress implements a range of digital initiatives and technology to drive innovation in the industry, streamline the value chain for customers and improve the overall driver experience.

Investor Contact
Matt Garvie
Vice President, Investor Relations
(423)-633-7153
mgarvie@usxpress.com
8
Condensed Consolidated Income Statements (unaudited)
Quarter Ended June 30,
Six Months Ended June 30,
(in thousands, except per share data)
2022
2021
2022
2021
Operating Revenue:
Revenue, excluding fuel surcharge
$
479,185
$
437,533
$
943,512
$
855,174
Fuel surcharge
74,518
37,488
127,379
70,607
Total operating revenue
553,703
475,021
1,070,891
925,781
Operating Expenses:
Salaries, wages and benefits
181,418
144,500
350,446
286,503
Fuel and fuel taxes
89,253
43,783
154,296
84,187
Vehicle rents
24,336
21,547
48,630
43,010
Depreciation and amortization, net of (gain) loss
14,929
23,205
33,646
45,587
Purchased transportation
140,185
157,489
290,769
299,150
Operating expense and supplies
47,679
34,443
92,493
66,958
Insurance premiums and claims
23,401
18,933
43,540
40,710
Operating taxes and licenses
3,752
3,247
7,668
6,516
Communications and utilities
3,864
2,964
7,408
5,352
General and other operating
18,418
16,004
35,737
30,904
Total operating expenses
547,235
466,115
1,064,633
908,877
Operating Income
6,468
8,906
6,258
16,904
Other Expenses (Income):
Interest expense, net
4,586
3,557
8,393
7,244
Other, net
1,757
(20,191
)
8,862
(20,191
)
6,343
(16,634
)
17,255
(12,947
)
Income (Loss) Before Income Taxes
125
25,540
(10,997
)
29,851
Income Tax Provision (Benefit)
79
6,443
(2,070
)
8,093
Net Income (Loss)
46
19,097
(8,927
)
21,758
Net Income attributable to non-controlling interest
600
1
529
124
Net Income (Loss) attributable to controlling interest
$
(554
)
$
19,096
$
(9,456
)
$
21,634
Income (Loss) Per Share
Basic earnings (losses) per share
$
(0.01
)
$
0.38
$
(0.19
)
$
0.43
Basic weighted average shares outstanding
51,221
50,334
51,036
50,156
Diluted earnings (losses) per share
$
(0.01
)
$
0.37
$
(0.19
)
$
0.42
Diluted weighted average shares outstanding
51,221
51,848
51,036
51,705

9
Condensed Consolidated Balance Sheets (unaudited)
June 30,
December 31,
(in thousands)
2022
2021
Assets
Current assets:
Cash and cash equivalents
$
3,145
$
5,695
Customer receivables, net of allowance of $44 and $11, respectively
247,721
231,687
Other receivables
18,800
18,046
Prepaid insurance and licenses
11,654
13,867
Operating supplies
10,613
9,550
Assets held for sale
16,713
11,831
Other current assets
28,058
32,020
Total current assets
336,704
322,696
Property and equipment, at cost
927,939
890,933
Less accumulated depreciation and amortization
(377,926
)
(370,112
)
Net property and equipment
550,013
520,821
Other assets:
Operating lease right-of-use assets
292,373
292,347
Goodwill
59,221
59,221
Intangible assets, net
23,956
24,129
Other
48,862
50,829
Total other assets
424,412
426,526
Total assets
$
1,311,129
$
1,270,043
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
124,768
$
126,910
Book overdraft
4,438
7,096
Accrued wages and benefits
51,010
45,011
Claims and insurance accruals
46,042
44,309
Other accrued liabilities
5,550
5,962
Current portion of operating leases
92,833
88,375
Current maturities of long-term debt and finance leases
113,599
85,117
Total current liabilities
438,240
402,780
Long-term debt and finance leases, net of current maturities
308,069
290,392
Less debt issuance costs
(333
)
(357
)
Net long-term debt and finance leases
307,736
290,035
Deferred income taxes
21,384
24,301
Other long-term liabilities
25,431
14,457
Claims and insurance accruals, long-term
43,933
54,819
Noncurrent operating lease liability
201,784
205,362
Commitments and contingencies
-
-
Stockholders' Equity:
Common stock
512
505
Additional paid-in capital
270,873
267,621
Retained earnings (deficit)
(1,016
)
8,440
Stockholders' equity
270,369
276,566
Noncontrolling interest
2,252
1,723
Total stockholders' equity
272,621
278,289
Total liabilities and stockholders' equity
$
1,311,129
$
1,270,043
10
Condensed Consolidated Cash Flow Statements (unaudited)
Six Months Ended June 30,
(in thousands)
2022
2021
Operating activities
Net income (loss)
$
(8,927
)
$
21,758
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Deferred income tax provision (benefit)
(2,917
)
7,624
Depreciation and amortization
38,983
41,036
(Gains) losses on sale of property and equipment
(5,337
)
4,551
Share based compensation
2,965
3,791
Other
(926
)
381
Unrealized loss (gain) on investment
10,120
(20,191
)
Changes in operating assets and liabilities
Receivables
(17,502
)
(27,163
)
Prepaid insurance and licenses
2,283
4,580
Operating supplies
(993
)
(724
)
Other assets
(4,789
)
(1,967
)
Accounts payable and other accrued liabilities
2,025
5,954
Accrued wages and benefits
5,807
771
Net cash provided by operating activities
20,792
40,401
Investing activities
Payments for purchases of property and equipment
(94,448
)
(62,851
)
Proceeds from sales of property and equipment
27,527
47,660
Net cash used in investing activities
(66,921
)
(15,191
)
Financing activities
Borrowings under lines of credit
262,100
138,812
Payments under lines of credit
(216,800
)
(123,812
)
Borrowings under long-term debt
44,514
38,116
Payments of long-term debt and finance leases
(44,191
)
(83,961
)
Payments of financing costs
-
(100
)
Tax withholding related to net share settlement of restricted stock awards
(431
)
(1,211
)
Proceeds from long-term consideration for sale of subsidiary
320
305
Proceeds from issuance of common stock under ESPP
725
538
Book overdraft
(2,658
)
5,873
Net cash provided by (used in) financing activities
43,579
(25,440
)
Net change in cash and cash equivalents
(2,550
)
(230
)
Cash and cash equivalents
Beginning of year
5,695
5,505
End of period
$
3,145
$
5,275

11
Key Operating Factors & Truckload Statistics (unaudited)
Quarter Ended June 30,
%
Six Months Ended June 30,
%
2022
2021
Change
2022
2021
Change
Operating Revenue:
Truckload1
$
390,659
$
341,045
14.5
%
$
761,058
$
676,846
12.4
%
Fuel Surcharge
74,518
37,488
98.8
%
127,379
70,607
80.4
%
Brokerage
88,526
96,488
-8.3
%
182,454
178,328
2.3
%
Total Operating Revenue
$
553,703
$
475,021
16.6
%
$
1,070,891
$
925,781
15.7
%
Operating Income :
Truckload
$
910
$
8,745
-89.6
%
$
1,183
$
15,472
-92.4
%
Brokerage
5,558
161
3352.2
%
5,075
1,432
254.4
%
$
6,468
$
8,906
-27.4
%
$
6,258
$
16,904
-63.0
%
Operating Ratio:
Operating Ratio
98.8
%
98.1
%
0.7
%
99.4
%
98.2
%
1.2
%
Adjusted Operating Ratio2
99.5
%
98.0
%
1.5
%
99.4
%
98.0
%
1.5
%
Truckload Operating Ratio
99.8
%
97.7
%
2.1
%
99.9
%
97.9
%
2.0
%
Adjusted Truckload Operating Ratio2
100.8
%
97.4
%
3.4
%
100.1
%
97.7
%
2.4
%
Brokerage Operating Ratio
93.7
%
99.8
%
-6.1
%
97.2
%
99.2
%
-2.0
%
Truckload Statistics:
Revenue Per Mile1
$
2.694
$
2.354
14.4
%
$
2.679
$
2.311
15.9
%
Average Tractors -
Company Owned
5,392
4,517
19.4
%
5,303
4,556
16.4
%
Owner Operators
963
1,332
-27.7
%
994
1,417
-29.9
%
Total Average Tractors
6,355
5,849
8.7
%
6,297
5,973
5.4
%
Average Revenue Miles Per Tractor Per Week
1,607
1,722
-6.7
%
1,592
1,723
-7.6
%
Average Revenue Per Tractor Per Week1
$
4,328
$
4,053
6.8
%
$
4,266
$
3,981
7.2
%
Total Miles
146,908
145,405
1.0
%
288,181
294,968
-2.3
%
Total Company Miles
122,765
111,558
10.0
%
239,214
223,263
7.1
%
Total Independent Contractor Miles
24,143
33,847
-28.7
%
48,967
71,705
-31.7
%
Independent Contractor fuel surcharge
$
13,037
$
8,422
54.8
%
$
22,634
$
16,082
40.7
%
1 Excluding fuel surcharge revenues
2 See "Non-GAAP Financial Measures" section of this earnings release for more detail including GAAP to Non-GAAP reconciliations

12

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U.S. Xpress Enterprises Inc. published this content on 03 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2022 21:40:07 UTC.