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4th Quarter 2014 Earnings
Call Presentation
February 11, 2015
To enable audio, call 800-351-6807 (U.S. / Canada) 1-334-323-7224 (International) access code: 541247
2
Financial information in this presentation is preliminary and based upon information available to the Company as of the
date of this presentation. As such, this information remains subject to the completion of normal quarter-end closing and
interim review procedures, which could result in changes, some of which could be material, to the preliminary
information provided in this presentation.
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933,
as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements
are made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. These statements generally
may be identified by their use of terms or phrases such as “expects,” “estimates,” “anticipates,” “projects,” “believes,”
“plans,” “goals,” “intends,” “may,” “will,” “should,” “could,” “potential,” “continue,” “future” and terms or phrases of similar
substance. Forward-looking statements are based upon the current beliefs and expectations of our management and
are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause
future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-
looking statements. Accordingly, actual results may differ materially from those set forth in the forward-looking
statements. Readers should review and consider the factors that may affect future results and other disclosures by the
Company in its press releases, Annual Report on Form 10-K and other filings with the Securities and Exchange
Commission. Any forward-looking statement speaks only as of the date on which it is made. We disclaim any obligation
to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the
forward-looking information. In light of these risks and uncertainties, the forward-looking events and circumstances
discussed in this presentation might not occur.
All forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety
by this cautionary statement.
References to the “Company,” “we,” “us,” “our” and words of similar import refer to USA Truck, Inc. and its subsidiary.
Safe Harbor Statement
3
113.6 117.6
125.0 125.9 125.8
80
90
100
110
120
130
Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
Base Revenue (1)
Q4 Consolidated Results
Consolidated base revenue increased
$12.2 million, or 10.7%, over Q4 2013
Net income jumped $8.8 million to $4.2
million versus $(4.6) million loss last year
EPS of $0.40, best Q4 in company history
– Highest EPS of any quarter since Q3 2005
– $0.84 per share improvement over Q4 2013
9th consecutive quarter of year-over-year
improvements
($/M)
(0.44) (0.15)
0.07 0.26
0.40
-0.50
-0.30
-0.10
0.10
0.30
0.50
Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
Earnings/Loss per Share (2) ($/Share)
(1) Base revenue excludes fuel surcharge revenue.
(2) Q4 2013 includes a $0.35 per share non-cash charge related to the long-term claims liability reserve
and $0.09 per share in non-operating legal and related defense expenses.
4
104.1
93.2
85
90
95
100
105
Q4 2013 Trucking SCS Q4 2014
Operating Ratio
(4.7) (1.0)
4.3 5.4
8.6
-6
-4
-2
0
2
4
6
8
10
Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
Operating Income/(Loss) (1)
Q4 Consolidated Results
($/M) Third consecutive quarter of positive
operating income
$13.3 million improvement in operating
income compared to Q4 2013
– Trucking contributed $11.8 million of the
increase
Consolidated OR improved 1,090 basis
points to 93.2%
– Balanced contribution from Trucking and
SCS
– Trucking OR: 95.1%
– SCS OR: 88.8%
(%)
(1) Q4 2013 includes a $6.0 million non-cash charge related to the
long-term claims liability reserve.
(5.4)
(5.6)
5
Q4 Trucking Highlights
Base revenue increased $3.5 million, or
4.2%, YOY
$12 million reduction in operating expenses
– $2.9 million contribution from fleet fuel
efficiency initiatives, including investments in
new equipment and enhancements to the
existing fleet
– Average miles per gallon up 10.4% YOY
– Insurance and claims expenses at 4.4% of
base revenue versus 5.7% for Q4 2013
– Variable expense reductions partially offset
by increases in driver compensation
$11.8 million YOY improvement in operating
income to $4.2 million
– Improved pricing and yield management
– Improved operational execution
– Lower operating expenses
1,400 basis-point improvement in OR
to 95.1%
(1) Base revenue excludes fuel surcharge revenue.
(2) Q4 2013 includes a $6.0 million non-cash charge related to the long-term
claims liability reserve.
83.3 80.2
83.2 86.1 86.8
60
65
70
75
80
85
90
Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
Base Revenue (1)
($/M)
(7.6) (6.1) (1.7)
0.01 4.2
-10
-8
-6
-4
-2
0
2
4
6
Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
Operating Income/(Loss) (2) ($/M)
($/M)
6
Q4 Trucking Operating Metrics
Weekly revenue per seated
truck above $3,000 for fourth
consecutive quarter
– Grew 9.1% on 13.5% increase
in rate per loaded mile
Maximizing utilization of
company-owned fleet
– Growing dedicated fleet
– Increased size of owner-
operator fleet 37%
Positive results from driver
recruitment and retention
initiatives
Q4 2013 Q4 2014 Difference
Weekly Revenue Per Seated Truck ($) 2,963 3,233 9.1%
Total Miles (000s) 57,079 52,471 (8.1)%
Rate Per Loaded Mile ($) 1.672 1.898 13.5%
Average No. of In-service Trucks 2,235 2,194 (1.8)%
Average No. of Seated Trucks 2,139 2,043 (4.5)%
Annualized Driver Turnover (%) 106.5 100.0 650 bps
Average Length of Haul (miles) 608 598 (1.6)%
7
30.4
37.4
41.8
39.9 39.0
10
15
20
25
30
35
40
45
Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
Base Revenue (1)
Q4 SCS Highlights
Base revenue jumped 28.5% YOY
– Higher load volumes
– Total revenue per employee increased
14.5%
Operating income increased 49.6% YOY
– Gross margin widened 270 bps to 17.3%
– Continued improvement in employee
productivity
– Operating ratio improved 160 bps
to 88.8%
(1) Base revenue excludes fuel surcharge revenue.
($/M)
2.9
5.1
6.0 5.3
4.4
0
1
2
3
4
5
6
7
Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
Operating Income ($/M)
8
FY 2014 Overview
Executing Plan to Drive Operating Leverage
Operational
Execution
Cost
Effectiveness
Profitable
Revenue
Growth
Turnaround Accomplishments
Reduced maintenance costs/mile
Significantly improved fuel efficiency
Continued to refine the freight network
Further improved yield management
Expanded SCS operating income
Built foundation for strong dedicated
business
Increased owner-operator fleet
Increased revenue from customers
utilizing more than one service offering
9
2
(12.6)
(23.3)
(8.7)
17.2
-30
-20
-10
0
10
20
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
Operating Income/(Loss) (2)
FY 2014 Consolidated Results
386.9 411.0 408.7 443.9
494.3
0
100
200
300
400
500
600
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
Base Revenue (1) ($/M)
($/M)
(0.32) (1.05)
(1.71)
(0.88)
0.58
-2.20
-1.60
-1.00
-0.40
0.20
0.80
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
Earnings/Loss per Share (3) ($/Share)
Achieved FY 2014 financial goals:
– Positive operating income
– Positive EPS
Record base revenue, up 11.4% over
FY 2013
Operating income increased $25.9 million
over FY 2013
– Trucking OR approaching breakeven
– SCS operating income more than doubled
EPS highest in 8 years
– GAAP EPS of $0.58 per share
– Non-GAAP EPS of $0.74 compared to
$(0.44) for FY 2013
0.0
(1) Base revenue excludes fuel surcharge revenue.
(2) FY 2013 includes a $6.0 million non-cash charge related to the long-term
claims liability reserve.
(3) FY 2013 includes a $0.35 per share non-cash charge related to the long-
term claims liability reserve and $0.09 per share in non-operating legal and
related defense expenses.
10
Balance Sheet and Liquidity
($/MM) 12/31/12 12/31/13 12/31/14
Total Debt 138.3 128.9 117.5
Total Capitalization 247.7 227.8 222.9
Debt to Adj. EBITDA (1) 6.3x 3.0x 1.9x
Cash Flow from Operations 15.5 35.9 49.7
$11.4 million reduction in debt during FY 2014
FY 2014 improvement in cash flow from operations reflects enhanced
operational effectiveness across all services
Net cash capital for FY 2014 of $37.5 million
– Continued reinvestment in rolling stock
FY 2015 planned net cash capital of $55 to $70 million
(1) See Appendix for calculation of Adjusted EBITDA.
11
Refinancing
$170 million senior secured revolving credit facility completed on
February 5, 2015
– Lower cost of capital
• Immediate interest rate reduction of 75 bps
– Enhanced flexibility
– Substantially increases company’s access to capital
– Improved terms reflect significant progress in improving operational effectiveness
Non-cash write-off of unamortized debt issuance costs of $0.8 million to be
taken in Q1 2015
12
Trucking
Asset-Light SCS
2015: Positioning USAK as
Capacity Solutions Provider
Executing Strategy to Drive Growth as Capacity Solutions Provider
>90 of Top 100 Customers Use Multiple Services
13
2015 Outlook
2015: “Even Better”
DRIVE OPERATING AND ASSET LEVERAGE
Growth in revenue, operating income
and EPS
Further improve yield management
Continued expansion of owner-operator
fleet
Increased wallet share of customers’
transportation spend
Grow dedicated freight business
14
Appendix
Non-GAAP Reconciliation
RECONCILIATION OF GAAP NET INCOME (LOSS) TO EBITDA
(UNAUDITED)
(in thousands)
Three Months Ended Year Ended
December 31, December 31,
2014 2013 2014 2013 2012
GAAP net income (loss)……………………………………….. $ 4,182 $ (4,636) $ 6,033 $ (9,110) $ (17,671)
Add:
Income tax expense (benefit)………………………………… 3,326 (2,446) 5,193 (3,988) (9,589)
Interest, net…………………………………………………… 738 910 3,008 3,662 4,052
Depreciation and amortization……………………………….. 10,556 11,547 43,830 44,947 45,058
EBITDA……………………………………………………..…. $ 18,802 $ 5,375 $ 58,064 $ 35,511 $ 21,850
Add:
Long-term claims liability reserve adjustment………………. -- 5,970 -- 5,970 --
Defense costs………………………………………………… 171 1,480 2,764 1,480 --
Adjusted EBITDA……………………………………………… $ 18,973 $ 12,825 $ 60,828 $ 42,961 $ 21,850
15
Appendix
Non-GAAP Reconciliation
RECONCILIATION OF GAAP DILUTED INCOME (LOSS) PER SHARE TO ADJUSTED INCOME LOSS PER SHARE
(UNAUDITED)
Three Months Ended Year Ended
December 31, December 31,
2014 2013 2014 2013
GAAP diluted earnings (loss) per share……………………………………… $ 0.40 $ (0.45) $ 0.58 $ (0.88)
Adjusted for:
Income tax expense (benefit)……………………………………………… 0.32 (0.24) 0.49 (0.39)
Income before income taxes……………………………………………..... 0.72 (0.69) 1.07 (1.27)
Long-term claims liability reserve adjustment……………………………. -- 0.58 -- (0.58)
Defense costs……………………………………………………………… 0.02 0.14 0.27 (0.14)
Adjusted income before taxes……………………………………………….. 0.74 0.04 1.34 (0.55)
Provision for income tax expense………………………………………… 0.33 0.04 0.60 0.11
Adjusted diluted earnings (loss) per share…………………………………... $ 0.41 $ 0.00 $ 0.74 $ (0.44)