USA Truck, Inc (USAK) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $0.73 million, or $ 0.09 a share in the quarter, against a net profit of $2.73 million, or $0.26 a share in the last year period. On an adjusted basis, loss per share was at $0.09 for the quarter compared with a profit of $0.43a share in the same period last year. Revenue during the quarter dropped 14.60 percent to $105.46 million from $123.49 million in the previous year period. Total expenses were 99.96 percent of quarterly revenues, up from 95.58 percent for the same period last year. That has resulted in a contraction of 438 basis points in operating margin to 0.04 percent.
Operating income for the quarter was $0.04 million, compared with $5.46 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $7.67 million compared with $7.87 million in the prior year period. At the same time, adjusted EBITDA margin improved 90 basis points in the quarter to 7.27 percent from 6.37 percent in the last year period.
President and Chief execuive officer Randy Rogers commented, “We marked significant progress toward our goals of expanding the scope of USAT Logistics, improving service levels in our truckload business and reducing operating costs in the third quarter. Those gains were, and for the near term will likely be, offset by a weak freight environment and unfavorable comparisons versus prior periods due to the loss of certain dedicated account customers earlier this year. While encouraged by our progress, we recognize our results have not reached our goals and are committed to achieving substantial improvements in profitability as we move into the 2017 bid season and benefit from the extensive operating changes made over the past year.
Working capital increases
USA Truck, Inc has recorded an increase in the working capital over the last year. It stood at $15.05 million as at Sep. 30, 2016, up 19.47 percent or $2.45 million from $12.60 million on Sep. 30, 2015. Current ratio was at 1.23 as on Sep. 30, 2016, up from 1.17 on Sep. 30, 2015. Days sales outstanding went up to 56 days for the quarter compared with 50 days for the same period last year.
Debt increases substantially
USA Truck, Inc has witnessed an increase in total debt over the last one year. It stood at $116.77 million as on Sep. 30, 2016, up 57.81 percent or $42.78 million from $74 million on Sep. 30, 2015. Total debt was 37.55 percent of total assets as on Sep. 30, 2016, compared with 25.86 percent on Sep. 30, 2015. Debt to equity ratio was at 1.88 as on Sep. 30, 2016, up from 0.72 as on Sep. 30, 2015. Interest coverage ratio improved to 0.05 for the quarter from 11.07 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
