USA Truck Reports Second Quarter 2021 Results

• 2Q 2021 earnings per diluted share of $0.47 versus 2Q 2020 loss per diluted share of $0.11
• 2Q 2021 adjusted earnings per diluted share^(a) of $0.50 versus 2Q 2020 adjusted loss per diluted share^(a) $0.06
• 2Q 2021 consolidated operating revenue increased 37.4% to a quarterly record of $170.0 million from $123.7 million in 2Q 2020

VAN BUREN, AR / ACCESSWIRE / July 29, 2021 / USA Truck Inc. (NASDAQ:USAK), a leading capacity solutions provider, today announced its financial results for three and six months ended June 30, 2021.

For the quarter ended June 30, 2021 (the "2021 Quarter"), consolidated operating revenue was $170.0 million compared to $123.7 million for the quarter ended June 30, 2020 (the "2020 Quarter"). Base revenue^(a) for the 2021 Quarter, which excluded fuel surcharge revenue, was $153.0 million compared to $113.2 million for the 2020 Quarter. The Company reported net income of $4.2 million, or $0.47 per diluted share for the 2021 Quarter and adjusted net income^(a) of $4.4 million, or $0.50 per diluted share, compared to a net loss of $0.9 million, or $0.11 per diluted share and adjusted net loss^(a) of $0.5 million, or $0.06 per diluted share for the 2020 Quarter. The Company's consolidated operating ratio was 95.9%, compared to 99.2% for the 2020 Quarter.

President and CEO James Reed commented, "For the fourth straight quarter, USA Truck produced the best quarterly EPS in the Company's history for that respective quarter. We also set an all‑time quarterly revenue record of $170.0 million during the quarter. We are proud of these results, the progress they represent, and the team that worked so hard to achieve them, while acknowledging that we still have much higher goals to achieve and better results that we believe we can produce.

While the pricing environment remains strong, our results also reflect the outcome of structural changes within our business around our network, operational execution, and cultural transformation. However, despite the improvements in our operational execution the driver market remains extremely difficult to recruit in but, counter-intuitively, our retention is better than it has ever been. Equipment delivery schedules have slipped and that has affected our fleet age and costs performance, but profitability has improved. As a result of these efforts, our Trucking segment adjusted operating ratio(a) improved 140 basis points year over year to 96.4%. USAT Logistics load volume increased 11.2% with revenue up 103.3% year over year and the increased volumes and pricing drove an improvement in adjusted operating ratio(a) for the 2021 Quarter of 580 basis points year over year to 94.7%."

Trucking: For the 2021 Quarter, Trucking operating revenue (before intersegment eliminations) increased $16.7 million, or 18.9%, to $105.4 million compared to the 2020 Quarter. Trucking operating income of $3.1 million for the 2021 Quarter reflected an operating ratio of 97.1% compared to operating income of $1.2 million and an operating ratio of 98.7% for the 2020 Quarter. This represented an increase of $1.9 million year over year in operating income and a 160 basis point improvement in operating ratio. Trucking adjusted operating income^(a) was $3.4 million for the 2021 Quarter, reflecting an adjusted operating ratio^(a) of 96.4%, compared to adjusted operating income^(a) of $1.7 million and an adjusted operating ratio^(a) of 97.8% for the 2020 Quarter. This represented an increase of $1.6 million year over year in adjusted operating income^(a) and a 140 basis point improvement in adjusted operating ratio^(a).

Trucking operations delivered the following results during the 2021 Quarter:

• Base revenue per available tractor per week increased $732, or 24.4%, compared to the 2020 Quarter primarily due to the increase in base revenue per loaded mile.
• Base revenue per loaded mile increased $0.444, or 22.0% compared to the 2020 Quarter as a result of the tight supply market, our improvements in network efficiencies and higher rate realizations during the bidding process.
• Deadhead percentage improved 190 basis points compared to the 2020 Quarter and 40 basis points compared to the sequential quarter.
• Loaded miles per available tractor per week increased 29 miles, or 1.9%, compared to the 2020 Quarter.
• Average number of seated tractors for the 2021 Quarter was 1,787, which represented a decrease of 8.0% when compared to an average of 1,943 in the 2020 Quarter. Average unseated tractor percentage for the 2021 Quarter was 7.0%, an unfavorable change from 5.8% for both the 2020 Quarter and the sequential quarter.

USAT Logistics: Operating revenue (before intersegment eliminations) was $78.7 million for the 2021 Quarter, an increase of $40.0 million, or 103.3% compared to the 2020 Quarter. Both operating income and adjusted operating income^(a) were $3.9 million for the 2021 Quarter, reflecting an operating ratio of 95.1% and an adjusted operating ratio^(a) of 94.7%, compared to an operating loss and adjusted operating loss^(a) of $0.2 million and an operating ratio and adjusted operating ratio^(a) of 100.5% for the 2020 Quarter. This change represented an increase of $4.0 million year over year in both operating income and adjusted operating income^(a) and an improvement of 540 basis points in operating ratio and 580 basis points in adjusted operating ratio^(a) compared to the 2020 Quarter.

USAT Logistics operations delivered the following results during the 2021 Quarter:

• Gross margin dollars increased 106.6% to $9.7 million compared to the 2020 Quarter, and increased 18.3%, or $1.5 million, sequentially.
• Gross margin percentage improved 20 basis points to 12.4% when compared to 12.2% for the 2020 Quarter, and 40 basis points sequentially from 12.0%.
• Revenue per load increased 82.9%, or $962 per load compared to the 2020 Quarter, and 2.7%, or $55 per load, sequentially.
• Load count increased by 3,738 loads, or 11.2% compared to the 2020 Quarter, and 4,030 loads, or 12.2%, sequentially.

Segment Results
The following table includes key operating results and statistics by reportable segment:

¹ Operating income (loss) is calculated by deducting operating expenses (before intersegment eliminations) from operating revenue (before intersegment eliminations).
² Adjusted operating income (loss)^(a) is calculated by deducting operating expenses (before intersegment eliminations) excluding severance costs included in salaries, wages and employee benefits, certain asset impairments, and amortization of acquisition related intangibles, net of fuel surcharge revenue from operating revenue (before intersegment eliminations), net of fuel surcharge revenue.
³ Operating ratio is calculated as operating expenses (before intersegment eliminations) as a percentage of operating revenue (before intersegment eliminations).
⁴ Adjusted operating ratio^(a) is calculated as operating expenses (before intersegment eliminations) excluding severance costs included in salaries, wages and employee benefits, certain asset impairments, and amortization of acquisition related intangibles, net of fuel surcharge revenue, as a percentage of operating revenue (before intersegment eliminations) excluding fuel surcharge revenue.
⁵ Total miles include both loaded and empty miles.
⁶ Deadhead percentage is calculated by dividing empty miles by total miles.
⁷ Available tractors are a) all Company tractors that are available to be dispatched, including available unseated tractors, and b) all tractors in the independent contractor fleet.
⁸ In-service tractors include all of the tractors in the Company fleet (Company-operated tractors) and all the tractors in the independent contractor fleet.
⁹ Gross margin is calculated by deducting USAT Logistics purchased transportation expense from USAT Logistics operating revenue (before intersegment eliminations).
¹⁰ Gross margin percentage is calculated as USAT Logistics gross margin divided by USAT Logistics operating revenue (before intersegment eliminations).

Balance Sheet and Liquidity
As of June 30, 2021, total debt and financing lease liabilities was $138.0 million, total debt and financing lease liabilities, net of cash (excluding restricted cash) ("Net Debt")^(a), was $136.1 million and total stockholders' equity was $93.2 million. Net Debt^(a) to Adjusted EBITDA^(a) for the trailing twelve months ended June 30, 2021 was 2.0x. The Company had $86.6 million available to borrow under its Credit Facility as of June 30, 2021.

Second Quarter 2021 Conference Call Information
USA Truck will hold a conference call to discuss its second quarter 2021 results on Friday, July 30, 2021 at 8:00 AM CT / 9:00 AM ET. To participate in the call, please dial 1-877-407-9205 (U.S./Canada) or 1‑201‑689‑8054 (International). A live webcast of the conference call will be broadcast in the Investor Relations section of the Company's website www.usa-truck.com, under the "Events & Presentations" tab of the "Investor Relations" menu. For those who cannot listen to the live broadcast, the presentation materials and an audio replay of the call will be available at our website, www.usa-truck.com, under the "Events & Presentations" tab of the "Investor Relations" menu, or may be accessed using the following link: https://www.webcaster4.com/Webcast/Page/2611/41448. A telephone replay of the call will also be available for one year from the date of the call.

^(a) About Non-GAAP Financial Information
In addition to our GAAP results, this press release also includes certain non-GAAP financial measures, as defined by the SEC. The terms "Base Revenue," "Net Debt," "EBITDA," "Adjusted EBITDA," "Adjusted operating ratio," "Adjusted operating income (loss)," "Adjusted net income (loss)," and "Adjusted earnings (loss) per diluted share," as we define them, are not presented in accordance with GAAP.

The Company defines Base Revenue as operating revenue less fuel surcharge revenue and intercompany eliminations. The Company defines Net Debt as total debt, including insurance premium financing and financing lease liabilities, net of cash. The Company defines EBITDA as net income (loss), plus interest expense net of interest income, provision for income tax expense (benefit) and depreciation and amortization. The Company defines Adjusted EBITDA as EBITDA plus non-cash equity compensation and severance costs included in salaries, wages and employee benefits. Adjusted operating ratio is calculated as operating expenses excluding severance costs included in salaries, wages and employee benefits, certain asset impairments, and amortization of acquisition related intangibles, net of fuel surcharge revenue, as a percentage of operating revenue excluding fuel surcharge revenue. Adjusted operating income (loss) is calculated by deducting operating expenses excluding severance costs included in salaries, wages and employee benefits, certain asset impairments, and amortization of acquisition related intangibles, net of fuel surcharge revenue, from operating revenue, net of fuel surcharge revenue. Adjusted net income (loss) is defined as net income (loss) excluding severance costs included in salaries, wages and employee benefits, certain asset impairments and amortization of acquisition related intangibles plus or minus the income tax effect of such adjustments using a statutory tax rate. Adjusted earnings (loss) per diluted share is defined as Adjusted net income (loss) divided by the weighted average number of diluted shares outstanding during the period. The per-share impact of each item is determined by dividing it by the weighted average diluted shares outstanding. These financial measures supplement our GAAP results in evaluating certain aspects of our business. We believe that using these measures improves comparability in analyzing our performance because they remove the impact of items from our operating results that, in our opinion, do not reflect our core operating performance. Management and the board of directors focus on Base Revenue, Net Debt, EBITDA, Adjusted EBITDA, Adjusted operating ratio, Adjusted operating income (loss), Adjusted net income (loss), and Adjusted earnings (loss) per diluted share as key measures of our performance and liquidity, each of which are reconciled to the most comparable GAAP financial measure and further discussed below. We believe our presentation of these non-GAAP financial measures is useful to investors and other users because it provides them the same information that we use internally for purposes of assessing our core operating performance.

These non-GAAP financial measures are not substitutes for their comparable GAAP financial measures, such as total debt, net income (loss), cash flows from operating activities, operating ratio, diluted earnings (loss) per share, or other measures prescribed by GAAP. There are limitations to using non-GAAP financial measures. Although we believe that they improve comparability in analyzing our period to period performance, they could limit comparability to other companies in our industry if those companies define or calculate these measures differently. Because of these limitations, our non-GAAP financial measures 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. Management compensates for these limitations by primarily relying on GAAP results and using non-GAAP financial measures on a supplemental basis.

Pursuant to the requirements of Regulation G and Regulation S-K, we have provided reconciliations of Base Revenue, Net Debt, EBITDA, Adjusted EBITDA, Adjusted operating ratio, Adjusted operating income (loss), Adjusted net income (loss), and Adjusted earnings (loss) per diluted share to the most comparable GAAP financial measures at the end of this press release.

Cautionary Statement Concerning Forward-Looking Statements
Financial information in this press release is preliminary and based upon information available to the Company as of the date of this press release. As such, this information remains subject to the completion of our quarterly review procedures, and the filing of the related Quarterly Report on Form 10-Q, which could result in changes, some of which could be material, to the preliminary information provided in this press release.

This press release 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 "seeks," "expects," "estimates," "anticipates," "projects," "believes," "hopes," "plans," "goals," "intends," "may," "might," "likely," "will," "should," "would," "could," "potential," "predict," "continue," "strategy," "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, including the impacts and duration of the COVID-19 pandemic. In addition, there are other risks, 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, Quarterly Reports on Form 10-Q, 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, except as required by law. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release 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 expression refer to USA Truck Inc. and its subsidiaries.

About USA Truck
USA Truck provides comprehensive capacity solutions to a broad and diverse customer base throughout North America. Our Trucking and USAT Logistics divisions blend an extensive portfolio of asset and asset-light services, offering a balanced approach for our customers' supply chain management, including customized truckload, dedicated contract carriage, intermodal and third-party logistics freight management services. For more information, visit usa-truck.com or usatlogistics.com.

This press release and related information will be available to interested parties at our investor relations website, http://investor.usa-truck.com.

Zachary King, SVP & CFO
(479) 471-2694
[email protected]

Michael Stephens, Investor Relations
(479) 471-2610
[email protected]

NET DEBT RECONCILIATION

SOURCE: USA Truck, Inc.