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USA Truck Inc. of Van Buren on Monday reported a loss of income of $931,000 in the second quarter of fiscal 2020.
The company made $1,000 in the same quarter a year ago. USA Truck has reported four consecutive negative quarters dating back to the third quarter of fiscal 2019, a year in which it lost $4.9 million.
The company reported revenue of $123.7 million for the quarter, down from $133.6 million a year ago. Earnings per share was a negative 11 cents, a decrease from a zero EPS a year ago.
“The second quarter of 2020 was unlike any quarter we have seen in transportation, producing unprecedented day-to-day and week-to-week swings in freight and pricing due to the COVID-19 pandemic,” CEO James Reed said.
USA Truck has been focused on a regionalization business model because Reed wants it to have a disciplined operational network. He said the company would be opening a Dallas-area terminal by the end of the next quarter and would add 189 new tractors this year to lower expected maintenance costs.
Reed said approximately 20% of the company’s trucking business are in industries that haven’t fully recovered from pandemic slowdowns or shutdowns, so USA Truck supplemented its consistent business with spot-market deliveries. The spot market, glutted with a high supply of companies doing the same as USA Truck, has seen depressed prices, leading to USA Truck’s lower revenue.
The trucking segment of USA Truck reported operating revenue of $88.6 million for the quarter, down from $96.5 million a year ago. Revenue per truck per week, a key industry metric, was $3,005, down from $3,350 a year ago.
The company’s logistics division reported operating revenue of $38.7 million, down from $39.6 million.
“Our organization is continuing to show progress in key initiatives of regionalization, technology and cost control,” Reed said. “We believe we are well positioned as market capacity is tightening; we continue to focus on providing great service to our customers, improving utilization on our trucks, and increasing volumes through our USAT Logistics segment.”