This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

USA Truck Announces Third Quarter Expectations

VAN BUREN, Ark., Aug. 22, 2011 /PRNewswire/ -- USA Truck, Inc. (NASDAQ: USAK) today announced preliminary expectations for the third quarter of 2011.  

(Logo:   http://photos.prnewswire.com/prnh/20110114/DA30069LOGO)

Cliff Beckham, President and CEO, made the following statement:  "We expect to report a net loss for the third quarter of 2011.  It is too early in the quarter to predict a range of expected net loss.  This compares with net income of $0.6 million, or $0.06 per share, for the third quarter of 2010.  We believe the main factor is a temporary but significant decrease in the efficiency of our truckload operations associated with our efforts in implementing our new enterprise management software.  We are actively addressing this issue and expect the negative impact to be short-term.

"On July 7, 2011, after several months of planning and testing, we implemented live usage of the new operating system across our Trucking operations.  We had previously implemented the software for our Strategic Capacity Solutions and Intermodal operations. During the month of July and continuing into the first part of August, we have experienced unanticipated difficulties with load visibility, load planning, and load dispatching associated with the transition.  These issues became apparent upon live cutover because of the huge transactional volume in comparison with the volumes experienced during testing.  We had planned for a modest reduction of efficiency during July associated with initial live usage and refinement of the new system.  The magnitude and duration of the reduction in efficiency have been greater than we anticipated.  

"We also believe the drop in efficiency is related in part to a deterioration in general truckload market conditions.  Our average loaded rate per mile and the percentage of loads moved in our Spider Web network remain within our range of expectations.  But our velocity, miles per tractor per week, and empty mile factor have been impacted.  Revenue miles were approximately 15% below those experienced in July 2010 but they are trending somewhat better during the first half of August.

"Our entire executive and operations teams are dedicated to correcting these problems, and we are gaining some improvement in August.  We are also receiving strong support from our software provider.  We continue to believe we selected the right system for the long term, and upon resolution of our internal issues, we fully anticipate that the new operating system will enhance our operation efficiencies."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs