U.S. Xpress Reports Second Quarter 2022 Financial Results

Rhea-AI Summary

U.S. Xpress Enterprises (NYSE: USX) reported Q2 2022 results with operating revenue up to $553.7 million from $475.0 million in Q2 2021. However, operating income decreased to $6.5 million from $8.9 million, and the company faced a net loss of $554,000, or $0.01 per share, compared to a profit of $19.1 million last year. Revenue growth was driven mainly by the Truckload segment, but overall operating expenses surged due to increased fuel and claims costs. The company aims to boost fleet utilization and lower costs in the upcoming quarter.

Positive

• Operating revenue increased to $553.7 million, a $78.7 million rise year-over-year.
• Variant fleet revenue grew by 66% year-over-year to $87.7 million.
• Brokerage segment operating income improved to $5.6 million from $0.2 million in Q2 2021.

Negative

• Operating income fell to $6.5 million from $8.9 million in Q2 2021.
• Net loss of $554,000 compared to a profit of $19.1 million last year.
• Increased claims expense of $3.4 million affected overall profitability.

 

CHATTANOOGA, Tenn.--(BUSINESS WIRE)-- 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.

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.”

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.

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.

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
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

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

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.

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

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

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

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

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220802006194/en/

Investor Contact

Matt Garvie

Vice President, Investor Relations

(423) 633-7153

mgarvie@usxpress.com

Source: U.S. Xpress Enterprises, Inc.

FAQ

What were U.S. Xpress's earnings per share for Q2 2022?

U.S. Xpress reported a loss per share of $0.01 for Q2 2022.

How did U.S. Xpress's operating revenue change in Q2 2022?

Operating revenue increased to $553.7 million in Q2 2022 compared to $475.0 million in Q2 2021.

What is the outlook for U.S. Xpress after Q2 2022 results?

U.S. Xpress aims to improve utilization, lower fixed costs, and continue fleet growth in the upcoming quarter.

What were the main drivers of U.S. Xpress's revenue growth in Q2 2022?

The revenue growth was primarily driven by the Truckload segment and an increase in fuel surcharge revenue.