USA Truck, Inc. (USAK) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $3.81 million, or $ 0.48 a share in the quarter, against a net profit of $3.94 million, or $0.39 a share in the last year period. On an adjusted basis, loss per share was at $0.47 for the quarter compared with a profit of $0.38a share in the same period last year.
Revenue during the quarter dropped 12.59 percent to $103.14 million from $117.98 million in the previous year period. Operating margin for the quarter stood at negative 4.50 percent as compared to a positive 6.16 percent for the previous year period.
Operating loss for the quarter was $4.64 million, compared with an operating income of $7.27 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $6.20 million compared with $7.67 million in the prior year period. At the same time, adjusted EBITDA margin contracted 49 basis points in the quarter to 6.01 percent from 6.50 percent in the last year period.
Jim Craig, EVP-Chief Commercial Officer and President-USAT Logistics stated, "USAT Logistics operating revenue declined 12.0% to $33.2 million, while gross margin tightened 40 basis points and operating income decreased $1.2 million. Operating income was again impacted by lower revenue per shipment driven by changing freight mix while margin levels remained relatively flat. Revenue improved as the fourth quarter progressed with October demand falling short of expectations, while November and December both showed improving load, revenue and margin performance. Net revenues and gross margin percentage exceeded internal expectations in both November and December of 2016."
Working capital drops significantly
USA Truck, Inc. has witnessed a decline in the working capital over the last year. It stood at $15.83 million as at Dec. 31, 2016, down 28.23 percent or $6.23 million from $22.06 million on Dec. 31, 2015. Current ratio was at 1.27 as on Dec. 31, 2016, down from 1.39 on Dec. 31, 2015.
Debt increases substantially
USA Truck, Inc. has witnessed an increase in total debt over the last one year. It stood at $148.48 million as on Dec. 31, 2016, up 46.37 percent or $47.04 million from $101.44 million on Dec. 31, 2015. Total debt was 50.34 percent of total assets as on Dec. 31, 2016, compared with 35.41 percent on Dec. 31, 2015. Debt to equity ratio was at 2.54 as on Dec. 31, 2016, up from 1.08 as on Dec. 31, 2015.
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