U.S. Xpress Reports Third Quarter 2022 Financial Results

Rhea-AI Summary

U.S. Xpress Enterprises (NYSE: USX) reported third-quarter 2022 operating revenue of $547.8 million, up from $491.1 million in the same quarter last year. However, the company experienced an operating loss of $22.7 million, compared to an operating income of $6.6 million in Q3 2021. This loss was attributed to a $25.7 million increase in claims expenses and $4.4 million in expenses related to its Realignment Plan. Despite cost-cutting initiatives projected to save $28.0 million annually, net loss for the quarter was $19.8 million, or $0.38 per diluted share.

Positive

• Operating revenue increased by $56.7 million compared to Q3 2021.
• Realignment Plan expected to yield annualized cost reductions of $28.0 million.

Negative

• Operating loss of $22.7 million compared to an operating income of $6.6 million in Q3 2021.
• Net loss attributable to controlling interest was $19.8 million, or $0.38 per diluted share, compared to $5.5 million loss in Q3 2021.
• Claims expenses increased by $25.7 million compared to the prior year.

CHATTANOOGA, Tenn.--(BUSINESS WIRE)-- U.S. Xpress Enterprises, Inc. (NYSE: USX) today announced financial and operating results for the third quarter of 2022.

Third Quarter 2022 Highlights compared to Third Quarter 2021

• Operating revenue of $547.8 million compared to $491.1 million
• Operating loss of $22.7 million compared to operating income of $6.6 million
• Operating loss included a $25.7 million increase in claims expense and $4.4 million in other expenses primarily related to the Company’s Realignment Plan¹
• Initiatives associated with the Company’s Realignment Plan are now expected to drive $28.0 million in annualized cost reductions

“During the third quarter, we were successful growing our overall fleet size, sequentially improving utilization in our OTR division and taking actions to reduce costs throughout the Company,” said Eric Fuller, President and CEO. “However, quarterly progress on our initiatives was outweighed by elevated claims expense primarily due to recent unexpected and adverse developments in two claims from prior years, along with certain one-time costs in the quarter. As we exit the year, our priority is to get back to the basics and service our customers at a high level. In addition to the $28.0 million in annualized costs we have already taken out of the business, we will continue to identify additional cost takeout opportunities, while allocating capital in a disciplined manner targeting projects that we believe will drive the Company forward.”

Third Quarter 2022 Financial Performance
	Quarter Ended September 30,							Nine Months Ended September 30,
	2022			2021				2022			2021
Operating revenue	$	547,828		$	491,140			$	1,618,719		$	1,416,921
Revenue, excluding fuel surcharge		477,428			451,824				1,420,940			1,306,998
Operating income (loss)		(22,740	)		6,635				(16,482	)		23,539
Net income (loss) attributable to controlling interest		(19,790	)		(5,478	)			(29,246	)		16,156
Earnings (losses) per diluted share		(0.38	)		(0.11	)			(0.57	)		0.31
Adjusted net income (loss) attributable to controlling interest1		(19,630	)		3,430				(22,989	)		10,153
Adjusted earnings (losses) per diluted share1	$	(0.38	)	$	0.07			$	(0.44	)	$	0.19
Operating Ratio
Truckload operating ratio		105.6	%		98.0	%			101.9	%		97.9	%
Brokerage operating ratio		94.9	%		101.6	%			96.5	%		100.0	%
Operating ratio		104.2	%		98.6	%			101.0	%		98.3	%
Adjusted operating ratio1		104.5	%		98.5	%			101.1	%		98.2	%
1 See "Non-GAAP Financial Measures" section of this earnings release for more detail including GAAP to Non-GAAP reconciliations.

Operating revenue was $547.8 million, an increase of $56.7 million compared to the third quarter of 2021. The increase was primarily the result of a 12.1% increase in average available tractors combined with a 9.0% increase in average truckload rate per mile. Revenue, excluding fuel surcharge increased $25.6 million to $477.4 million, an increase of 5.7% compared to the third quarter of 2021.

Operating loss was $22.7 million for the third quarter of 2022 compared to operating income of $6.6 million in the third quarter of 2021. Third quarter 2022 operating expenses included incremental claims expense of $25.7 million compared to the third quarter of 2021, primarily due to recent unexpected and adverse developments in two large claims resulting from accidents which occurred in prior years. In addition, third-quarter results included $4.4 million in other expenses¹, primarily related to the Company’s Realignment Plan which are described below in the Supplemental Financial Information section of this earnings release.

Net loss attributable to controlling interest for the third quarter of 2022 was $19.8 million, or $0.38 per diluted share, compared to $5.5 million, or $0.11 per diluted share, in the third quarter of 2021.

Truckload Segment
	Quarter Ended September 30,							Nine Months Ended September 30,
	2022			2021				2022			2021
Truckload revenue, net of fuel surcharge	$	401,941		$	361,004			$	1,162,999		$	1,037,850
Operating income (loss)		(26,604	)		8,081				(25,421	)		23,553
Operating ratio		105.6	%		98.0	%			101.9	%		97.9	%
Adjusted operating income (loss)1	$	(25,463	)	$	8,081			$	(26,047	)	$	23,553
Adjusting operating ratio1		106.3	%		97.8	%			102.2	%		97.7	%
1 - See "Non-GAAP Financial Measures" section of this earnings release for more detail including GAAP to Non-GAAP reconciliations.

Truckload revenue, net of fuel surcharge was $401.9 million compared to $361.0 million in the third quarter of 2021. The increase was primarily due to a combination of increased average available tractors and an increased overall truckload rate per mile compared to the third quarter of 2021.

The Company’s OTR division increased average revenue per tractor per week due to an increase in average revenue per mile while average revenue miles were flat compared to the third quarter of 2021. Total division revenue grew from a combination of this higher revenue per tractor per week combined with a 14.8% increase in average tractors. However, significant cost inflation weighed on the OTR division’s contribution to overall Truckload segment results in the third quarter.

The Company’s Dedicated division continued to perform at a high level in the quarter. The division grew its average revenue per tractor per week by 12.2% and average tractors by 8.3% which contributed to an increase in total division revenue compared to the third quarter of 2021. The decline in average revenue miles per tractor per week was due to customer mix shift towards more discount retail and grocery business in the quarter.

Brokerage Segment
	Quarter Ended September 30,							Nine Months Ended September 30,
	2022			2021				2022			2021
Brokerage revenue	$	75,487		$	90,820			$	257,941		$	269,148
Gross margin %		20.5	%		11.2	%			17.9	%		12.3	%
Operating income (loss)	$	3,864		$	(1,446	)		$	8,939		$	(14	)
Operating ratio		94.9	%		101.6	%			96.5	%		100.0	%
Load count		29,043			43,766				104,677			130,627

Brokerage revenue was $75.5 million, which was a decline of 16.9% compared to the third quarter of 2021. The decrease in Brokerage revenue was driven by a 33.6% decrease in load count which more than offset the 25.3% increase in revenue per load compared to the third quarter of 2021. The year-over-year decline in load count was primarily due to an increase in allocation of available freight to the Company’s asset-based OTR fleet which increased by 14.8% compared to the third quarter of 2021.

Brokerage operating income was $3.9 million compared to an operating loss of $1.4 million in the third quarter of 2021. The increase in Brokerage segment operating income was due to the higher gross margin in the third quarter as compared to the third quarter of 2021.

Liquidity and Capital Allocation

At the end of the third quarter of 2022, the Company had liquidity of $131.1 million (defined as cash balances plus availability under the Company’s revolving credit facility), $461.1 million of net debt (defined as long-term debt, including current maturities less cash balances), and $252.2 million of stockholders’ equity.

Year-to-date, through September 30, 2022, capital expenditures, net of proceeds were $113.8 million, and exclude equipment financed under operating leases. Most 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 fourth quarter, we expect further implementation of our Realignment Plan to yield additional cost savings and we will continue to allocate capital, in a disciplined manner, to projects which we believe will drive the business forward. With that said, we must continue to improve utilization in our OTR division to meaningfully improve our overall financial results.”

Conference Call Information

The Company will host a conference call and simultaneous webcast to discuss its third quarter 2022 financial and operating results on November 3, 2022, at 5:00 p.m. ET. The conference call can be accessed live by dialing 1-888-800-8518 or, for international callers, 1-646-307-1863 and asking to be joined to the US Xpress Third Quarter 2022 Earnings Conference Call. The simultaneous 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) Certain Expenses Contained in the Company’s Third Quarter Results

During the third quarter, the Company took action to reduce operating expenses. Once fully implemented, the Company anticipates that these actions will result in approximately $28.0 million in annualized cost reductions. The costs include a combination of workforce reduction, real estate footprint rationalization and general and other expenses which are mainly vendor-related expenses. The Company anticipates these cost reduction actions to begin benefitting its financial results beginning in the fourth quarter.

In addition, the Company incurred $30.1 million in expenses that the Company believes may not be indicative of future operating expenses. These expenses negatively impacted the Company’s Truckload segment adjusted operating ratio by approximately 750 basis points².

	Quarter Ended
	September 30,
Expense (in millions, $USD)	2022
Incremental insurance premiums and claims expense	$	25.7
Atlanta lease termination		1.2
Obsolete technology write-off		1.2
Bad debt write-off		1.0
Severance-related expense		1.0
Total other certain expenses	$	30.1

(2) 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 (Loss), Adjusted Net Income (Loss) 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 (Loss), Adjusted Net Income (Loss) 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 September 30,								Nine Months Ended September 30,
(in thousands)		2022				2021				2022				2021
GAAP Presentation:
Total revenue		$	547,828			$	491,140			$	1,618,719			$	1,416,921
Total operating expenses			(570,568	)			(484,505	)			(1,635,201	)			(1,393,382	)
Operating income		$	(22,740	)		$	6,635			$	(16,482	)		$	23,539
Operating ratio			104.2	%			98.6	%			101.0	%			98.3	%
Non-GAAP Presentation
Total revenue		$	547,828			$	491,140			$	1,618,719			$	1,416,921
Fuel surcharge			(70,400	)			(39,316	)			(197,779	)			(109,923	)
Revenue, excluding fuel surcharge			477,428				451,824				1,420,940				1,306,998
Total operating expenses			570,568				484,505				1,635,201				1,393,382
Adjusted for:
Fuel surcharge			(70,400	)			(39,316	)			(197,779	)			(109,923	)
Impairment charges1			(1,248	)			-				(4,218	)			-
Gain on sale of terminal2			-				-				4,002				-
Adjusted operating expenses			498,920				445,189				1,437,206				1,283,459
Adjusted operating income		$	(21,492	)		$	6,635			$	(16,266	)		$	23,539
Adjusted operating ratio			104.5	%			98.5	%			101.1	%			98.2	%
1During the first and third quarter of 2022, we incurred a non-cash adjustment 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 September 30,								Nine Months Ended September 30,
(in thousands)		2022				2021				2022				2021
Truckload GAAP Presentation:
Total Truckload revenue		$	472,341			$	400,320			$	1,360,778			$	1,147,773
Total Truckload operating expenses			(498,945	)			(392,239	)			(1,386,199	)			(1,124,220	)
Truckload operating income		$	(26,604	)		$	8,081			$	(25,421	)		$	23,553
Truckload operating ratio			105.6	%			98.0	%			101.9	%			97.9	%
Truckload Non-GAAP Presentation
Total Truckload revenue		$	472,341			$	400,320			$	1,360,778			$	1,147,773
Fuel surcharge			(70,400	)			(39,316	)			(197,779	)			(109,923	)
Revenue, excluding fuel surcharge			401,941				361,004				1,162,999				1,037,850
Total Truckload operating expenses			498,945				392,239				1,386,199				1,124,220
Adjusted for:
Fuel surcharge			(70,400	)			(39,316	)			(197,779	)			(109,923	)
Impairment charges1			(1,141	)			-				(3,376	)			-
Gain on sale of terminal2			-				-				4,002				-
Truckload Adjusted operating expenses			427,404				352,923				1,189,046				1,014,297
Truckload Adjusted operating income (loss)		$	(25,463	)		$	8,081			$	(26,047	)		$	23,553
Truckload Adjusted operating ratio			106.3	%			97.8	%			102.2	%			97.7	%
1During the first and third quarter of 2022, we incurred a non-cash adjustment 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 September 30,								Nine Months Ended September 30,
(in thousands, except per share data)		2022				2021				2022				2021
GAAP: Net income (loss) attributable to controlling interest		$	(19,790	)		$	(5,478	)		$	(29,246	)		$	16,156
Adjusted for:
Income tax provision (benefit)			(7,786	)			(3,361	)			(9,856	)			4,732
Income (loss) before income taxes attributable to controlling interest		$	(27,576	)		$	(8,839	)		$	(39,102	)		$	20,888
Unrealized loss (gain) on equity investment1			(131	)			12,062				9,989				(8,129	)
Gain on sale of terminal2			-				-				(4,002	)			-
Gain on sale of equity method investment3			-				-				(1,258	)			-
Impairment charges4			1,248				-				4,218				-
Adjusted income (loss) before income taxes			(26,459	)			3,223				(30,155	)			12,759
Adjusted income tax provision (benefit)			(6,829	)			(207	)			(7,166	)			2,606
Non-GAAP: Adjusted net income (loss) attributable to controlling interest		$	(19,630	)		$	3,430			$	(22,989	)		$	10,153
GAAP: Earnings (losses) per diluted share		$	(0.38	)		$	(0.11	)		$	(0.57	)		$	0.31
Adjusted for:
Income tax expense attributable to controlling interest			(0.15	)			(0.06	)			(0.19	)			0.09
Income (loss) before income taxes attributable to controlling interest		$	(0.53	)		$	(0.17	)		$	(0.76	)		$	0.40
Unrealized loss (gain) on equity investment1			-				0.24				0.20				(0.16	)
Gain on sale of terminal2			-				-				(0.08	)			-
Gain on sale of equity method investment3			-				-				(0.02	)			-
Impairment charges4			0.02				-				0.08				-
Adjusted income (loss) before income taxes			(0.51	)			0.07				(0.58	)			0.24
Adjusted income tax provision (benefit)			(0.13	)			-				(0.14	)			0.05
Non-GAAP: Adjusted earnings (losses) per diluted share attributable to controlling interest		$	(0.38	)		$	0.07			$	(0.44	)		$	0.19
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 and third quarter of 2022, we incurred a non-cash adjustment 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 “Certain Expenses” and “Outlook” sections, statements regarding the freight environment, future utilization, the expected impact of the Company’s realignment plan, including lowering fixed and other costs, allocating capital to projects that will drive the business forward, 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 premiums 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 premiums 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 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 U.S. 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 September 30,								Nine Months Ended September 30,
(in thousands, except per share data)		2022				2021				2022				2021
Operating Revenue:
Revenue, excluding fuel surcharge		$	477,428			$	451,824			$	1,420,940			$	1,306,998
Fuel surcharge			70,400				39,316				197,779				109,923
Total operating revenue			547,828				491,140				1,618,719				1,416,921
Operating Expenses:
Salaries, wages and benefits			188,430				158,942				538,876				445,445
Fuel and fuel taxes			86,406				46,715				240,702				130,902
Vehicle rents			26,237				22,700				74,867				65,710
Depreciation and amortization, net of (gain) loss			23,187				19,509				56,833				65,096
Purchased transportation			123,535				159,152				414,304				458,302
Operating expense and supplies			51,339				38,683				143,832				105,641
Insurance premiums and claims			43,912				18,242				87,452				58,952
Operating taxes and licenses			4,112				3,677				11,780				10,193
Communications and utilities			3,707				2,677				11,115				8,029
General and other operating			19,703				14,208				55,440				45,112
Total operating expenses			570,568				484,505				1,635,201				1,393,382
Operating Income			(22,740	)			6,635				(16,482	)			23,539
Other Expenses (Income):
Interest expense, net			4,588				3,572				12,981				10,816
Other, net			(131	)			12,062				8,731				(8,129	)
			4,457				15,634				21,712				2,687
Income (Loss) Before Income Taxes			(27,197	)			(8,999	)			(38,194	)			20,852
Income Tax Provision (Benefit)			(7,786	)			(3,361	)			(9,856	)			4,732
Net Income (Loss)			(19,411	)			(5,638	)			(28,338	)			16,120
Net Income attributable to non-controlling interest			379				(160	)			908				(36	)
Net Income (Loss) attributable to controlling interest		$	(19,790	)		$	(5,478	)		$	(29,246	)		$	16,156
Income (Loss) Per Share
Basic earnings (losses) per share		$	(0.38	)		$	(0.11	)		$	(0.57	)		$	0.32
Basic weighted average shares outstanding			51,562				50,563				51,213				50,293
Diluted earnings (losses) per share		$	(0.38	)		$	(0.11	)		$	(0.57	)		$	0.31
Diluted weighted average shares outstanding			51,562				50,563				51,213				51,839

Condensed Consolidated Balance Sheets (unaudited)
	September 30,				December 31,
(in thousands)	2022				2021
Assets
Current assets:
Cash and cash equivalents	$	1,371			$	5,695
Customer receivables, net of allowance of $1,019 and $11, respectively		241,130				231,687
Other receivables		20,756				18,046
Prepaid insurance and licenses		21,808				13,867
Operating supplies		10,277				9,550
Assets held for sale		20,466				11,831
Other current assets		26,047				32,020
Total current assets		341,855				322,696
Property and equipment, at cost		961,179				890,933
Less accumulated depreciation and amortization		(390,645	)			(370,112	)
Net property and equipment		570,534				520,821
Other assets:
Operating lease right-of-use assets		317,530				292,347
Goodwill		59,221				59,221
Intangible assets, net		23,870				24,129
Other		49,590				50,829
Total other assets		450,211				426,526
Total assets	$	1,362,600			$	1,270,043
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	132,328			$	126,910
Book overdraft		3,936				7,096
Accrued wages and benefits		41,912				45,011
Claims and insurance accruals		55,335				44,309
Other accrued liabilities		6,192				5,962
Current portion of operating leases		101,213				88,375
Current maturities of long-term debt and finance leases		115,941				85,117
Total current liabilities		456,857				402,780
Long-term debt and finance leases, net of current maturities		346,496				290,392
Less debt issuance costs		(322	)			(357	)
Net long-term debt and finance leases		346,174				290,035
Deferred income taxes		13,631				24,301
Other long-term liabilities		21,634				14,457
Claims and insurance accruals, long-term		51,386				54,819
Noncurrent operating lease liability		218,070				205,362
Commitments and contingencies		-				-
Stockholders' Equity:
Common stock		515				505
Additional paid-in capital		272,508				267,621
Retained earnings (deficit)		(20,806	)			8,440
Stockholders' equity		252,217				276,566
Noncontrolling interest		2,631				1,723
Total stockholders' equity		254,848				278,289
Total liabilities and stockholders' equity	$	1,362,600			$	1,270,043

Condensed Consolidated Cash Flow Statements (unaudited)
	Nine Months Ended September 30,
(in thousands)	2022				2021
Operating activities
Net income (loss)	$	(28,338	)		$	16,120
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Deferred income tax provision (benefit)		(10,670	)			3,764
Depreciation and amortization		60,174				62,049
(Gains) losses on sale of property and equipment		(3,341	)			3,047
Share based compensation		3,998				5,294
Other		203				546
Unrealized loss (gain) on investment		9,989				(8,129	)
Changes in operating assets and liabilities
Receivables		(14,154	)			(38,064	)
Prepaid insurance and licenses		(7,838	)			(7,486	)
Operating supplies		(648	)			(3,420	)
Other assets		(3,677	)			(8,284	)
Accounts payable and other accrued liabilities		22,811				36,762
Accrued wages and benefits		(3,099	)			8,105
Net cash provided by operating activities		25,410				70,304
Investing activities
Payments for purchases of property and equipment		(147,643	)			(141,068	)
Proceeds from sales of property and equipment		33,877				70,016
Net cash used in investing activities		(113,766	)			(71,052	)
Financing activities
Borrowings under lines of credit		382,307				235,612
Payments under lines of credit		(314,241	)			(210,612	)
Borrowings under long-term debt		85,674				83,959
Payments of long-term debt and finance leases		(67,930	)			(110,759	)
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		483				460
Proceeds from issuance of common stock under ESPP		1,330				1,285
Book overdraft		(3,160	)			2,604
Net cash provided by financing activities		84,032				1,238
Net change in cash and cash equivalents		(4,324	)			490
Cash and cash equivalents
Beginning of year		5,695				5,505
End of period	$	1,371			$	5,995

Truckload Statistics (unaudited)
	Quarter Ended September 30,					%			Nine Months Ended September 30,					%
	2022		2021			Change			2022		2021			Change
Over-the-road
Average revenue per tractor per week1	$	3,857	$	3,770		2.3	%		$	3,870	$	3,776		2.5	%
Average revenue per mile1	$	2.475	$	2.421		2.2	%		$	2.519	$	2.286		10.2	%
Average revenue miles per tractor per week		1,558		1,558		0.0	%			1,536		1,651		-7.0	%
Average tractors		3,918		3,413		14.8	%			3,757		3,384		11.0	%
Dedicated
Average revenue per tractor per week1	$	4,870	$	4,340		12.2	%		$	4,834	$	4,274		13.1	%
Average revenue per mile1	$	2.983	$	2.527		18.0	%		$	2.894	$	2.455		17.9	%
Average revenue miles per tractor per week		1,632		1,717		-5.0	%			1,670		1,741		-4.1	%
Average tractors		2,730		2,520		8.3	%			2,657		2,575		3.2	%
Consolidated
Average revenue per tractor per week1	$	4,273	$	4,012		6.5	%		$	4,269	$	3,991		7.0	%
Average revenue per mile1	$	2.689	$	2.468		9.0	%		$	2.682	$	2.361		13.6	%
Average revenue miles per tractor per week		1,589		1,625		-2.2	%			1,592		1,690		-5.8	%
Average tractors		6,648		5,933		12.1	%			6,414		5,959		7.6	%
Average tractors -
Company owned		5,739		4,746		20.9	%			5,448		4,619		17.9	%
Owner operators		909		1,187		-23.4	%			966		1,340		-27.9	%
Total average tractors		6,648		5,933		12.1	%			6,414		5,959		7.6	%
Miles driven -
Total company miles		131,047		112,516		16.5	%			370,261		335,779		10.3	%
Total independent contractor miles		22,745		29,430		-22.7	%			71,712		101,135		-29.1	%
Total miles		153,792		141,946		8.3	%			441,973		436,914		1.2	%
Independent contractor fuel surcharge	$	11,539	$	8,001		44.2	%		$	34,173	$	24,083		41.9	%
1Excluding fuel surcharge revenues

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221103005353/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 Q3 2022 revenue results?

U.S. Xpress reported operating revenue of $547.8 million for Q3 2022, an increase from $491.1 million in Q3 2021.

Did U.S. Xpress report a profit or loss in Q3 2022?

U.S. Xpress reported an operating loss of $22.7 million in Q3 2022, compared to an operating income of $6.6 million in Q3 2021.

How much is U.S. Xpress planning to save from its Realignment Plan?

U.S. Xpress expects its Realignment Plan to yield annualized cost reductions of $28.0 million.

What was U.S. Xpress's net loss in Q3 2022?

The net loss attributable to controlling interest was $19.8 million, or $0.38 per diluted share, in Q3 2022.

What drove the increase in claims expenses for U.S. Xpress?

The increase in claims expenses was mainly due to recent unexpected adverse developments in two claims from prior years, amounting to $25.7 million.