Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 19, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | USA TRUCK INC | |
Entity Central Index Key | 0000883945 | |
Trading Symbol | usak | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 8,538,645 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash | $ 584 | $ 989 |
Accounts receivable, net of allowance for doubtful accounts of $484 and $575, respectively | 63,345 | 57,189 |
Other receivables | 4,474 | 5,688 |
Inventories | 742 | 722 |
Assets held for sale | 2,296 | 2,611 |
Prepaid expenses and other current assets | 7,102 | 7,675 |
Total current assets | 78,543 | 74,874 |
Property and equipment: | ||
Land and structures | 32,981 | 32,434 |
Revenue equipment | 290,506 | 280,623 |
Service, office and other equipment | 28,379 | 28,094 |
Property and equipment, at cost | 351,866 | 341,151 |
Accumulated depreciation and amortization | (115,811) | (115,766) |
Property and equipment, net | 236,055 | 225,385 |
Operating leases - right of use assets | 15,433 | |
Goodwill | 5,231 | 4,926 |
Other intangibles, net | 17,474 | 17,837 |
Other assets | 1,713 | 1,003 |
Total assets | 354,449 | 324,025 |
Current liabilities: | ||
Accounts payable | 29,934 | 23,482 |
Current portion of insurance and claims accruals | 17,270 | 15,852 |
Accrued expenses | 7,308 | 9,366 |
Current maturities of finance leases | 17,574 | |
Current maturities of finance leases | 17,292 | |
Current maturities of operating leases | 8,423 | |
Insurance premium financing | 2,144 | 4,435 |
Total current liabilities | 82,653 | 70,427 |
Deferred gain | 223 | 84 |
Long-term debt | 92,450 | 85,300 |
Finance leases, less current maturities | 54,396 | |
Finance leases, less current maturities | 53,460 | |
Operating leases, less current maturities | 7,010 | |
Deferred income taxes | 24,463 | 23,518 |
Insurance and claims accruals, less current portion | 9,963 | 9,963 |
Total liabilities | 271,158 | 242,752 |
Stockholders’ equity: | ||
Preferred Stock, $0.01 par value; 1,000,000 shares authorized; none issued | 0 | 0 |
Common Stock, $0.01 par value; 30,000,000 shares authorized; issued 12,007,077 shares, and 12,011,495 shares, respectively | 120 | 120 |
Additional paid-in capital | 62,392 | 66,433 |
Retained earnings | 79,968 | 78,467 |
Less treasury stock, at cost (3,420,044 shares, and 3,650,060 shares, respectively) | (59,189) | (63,747) |
Total stockholders’ equity | 83,291 | 81,273 |
Total liabilities and stockholders’ equity | $ 354,449 | $ 324,025 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Allowance for doubtful accounts | $ 484 | $ 575 |
Stockholders’ equity: | ||
Preferred Stock, par or stated value per share (in usd per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Common Stock, par or stated value per share (in usd per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common Stock, shares issued (in shares) | 12,007,077 | 12,011,495 |
Treasury stock, shares (in shares) | 3,420,044 | 3,650,060 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue | ||
Operating revenue | $ 133,974 | $ 125,013 |
Operating expenses | ||
Salaries, wages and employee benefits | 36,090 | 32,237 |
Fuel and fuel taxes | 13,631 | 13,479 |
Depreciation and amortization | 8,818 | 7,180 |
Equipment rent | 2,720 | 2,718 |
Insurance and claims | 7,280 | 5,602 |
Operations and maintenance | 7,273 | 7,961 |
Purchased transportation | 48,281 | 49,038 |
Operating taxes and licenses | 1,117 | 502 |
Communications and utilities | 767 | 713 |
Gain on disposal of assets, net | (145) | (169) |
Restructuring, impairment and other costs (reversal) | 0 | (639) |
Other | 4,221 | 3,999 |
Total operating expenses | 130,053 | 122,621 |
Operating income | 3,921 | 2,392 |
Other expenses | ||
Interest expense, net | 1,741 | 818 |
Other, net | 137 | 120 |
Total other expenses, net | 1,878 | 938 |
Income before income taxes | 2,043 | 1,454 |
Income tax expense | 542 | 419 |
Consolidated net income and comprehensive income | $ 1,501 | $ 1,035 |
Net earnings per share | ||
Average shares outstanding (basic) (in shares) | 8,375 | 8,035 |
Basic earnings per share (in usd per share) | $ 0.18 | $ 0.13 |
Average shares outstanding (diluted) (in shares) | 8,399 | 8,040 |
Diluted earnings per share (in usd per shares) | $ 0.18 | $ 0.13 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock |
Balance (in shares) at Dec. 31, 2017 | 12,142,000 | ||||
Balance at Dec. 31, 2017 | $ 66,488 | $ 121 | $ 68,667 | $ 65,460 | $ (67,760) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of treasury stock | (2,094) | 2,094 | |||
Stock-based compensation | (136) | (136) | |||
Forfeited restricted stock (in shares) | (49,000) | ||||
Net share settlement related to restricted stock vesting (in shares) | (2,000) | ||||
Net share settlement related to restricted stock vesting | (40) | (40) | |||
Net income | 1,035 | 1,035 | |||
Balance (in shares) at Mar. 31, 2018 | 12,091,000 | ||||
Balance at Mar. 31, 2018 | 67,347 | $ 121 | 66,397 | 66,495 | (65,666) |
Balance (in shares) at Dec. 31, 2018 | 12,012,000 | ||||
Balance at Dec. 31, 2018 | 81,273 | $ 120 | 66,433 | 78,467 | (63,747) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of treasury stock | (4,558) | 4,558 | |||
Stock-based compensation | 589 | 589 | |||
Net share settlement related to restricted stock vesting (in shares) | (5,000) | ||||
Net share settlement related to restricted stock vesting | (72) | (72) | |||
Net income | 1,501 | 1,501 | |||
Balance (in shares) at Mar. 31, 2019 | 12,007,000 | ||||
Balance at Mar. 31, 2019 | $ 83,291 | $ 120 | $ 62,392 | $ 79,968 | $ (59,189) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities: | ||
Net income | $ 1,501 | $ 1,035 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 8,818 | 7,180 |
Deferred income tax, net | 945 | (949) |
Share-based compensation | 589 | (136) |
Gain on disposal of assets, net | (145) | (169) |
Reversal of previously recorded restructuring, impairment and other costs | 0 | (639) |
Other | 139 | (51) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,942) | (1,230) |
Inventories and prepaid expenses | (403) | (598) |
Accounts payable and accrued liabilities | 754 | 9,734 |
Insurance and claims accruals | 1,418 | 1,369 |
Other long-term assets and liabilities | (710) | 61 |
Net cash provided by operating activities | 7,964 | 15,607 |
Investing activities: | ||
Acquisition of Davis Transfer Company (net of cash) | (305) | 0 |
Capital expenditures | (17,041) | (307) |
Proceeds from sale of property and equipment | 5,858 | 1,308 |
Net cash (used in) provided by investing activities | (11,488) | 1,001 |
Financing activities: | ||
Borrowings under long-term debt | 12,050 | 5,878 |
Payments on long-term debt | (6,235) | (16,138) |
Payments on finance lease obligations | (3,110) | (6,373) |
Net change in bank drafts payable | 486 | 0 |
Net payments for tax withholdings for vested stock-based awards | (72) | (40) |
Net cash provided by (used in) financing activities | 3,119 | (16,673) |
Decrease in cash | (405) | (65) |
Cash: | ||
Beginning of period | 989 | 71 |
End of period | 584 | 6 |
Supplemental disclosure of cash flow information: | ||
Interest | 1,482 | 834 |
Income taxes | 0 | 0 |
Supplemental disclosure of non-cash investing activities: | ||
Purchases of revenue equipment included in accounts payable | $ 3,214 | $ 0 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION In the opinion of the management of USA Truck, Inc., the accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Certain information and footnote disclosures normally included in financial statements required by GAAP have been condensed or omitted. All normal recurring adjustments considered necessary for a fair presentation have been included. Operating results for the three month periods ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ended December 31, 2019 . These financial statements should be read in conjunction with the financial statements, and footnotes thereto, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 . The accompanying consolidated financial statements include USA Truck, Inc., and its wholly owned subsidiaries: International Freight Services, Inc. ("IFS"), a Delaware corporation; Davis Transfer Company Inc., a Georgia corporation ("DTC"), Davis Transfer Logistics Inc., a Georgia corporation ("DTL"), and B & G Leasing, L.L.C., a Georgia limited liability company, ("B & G," and collectively with DTC and DTL, "Davis Transfer Company"). All significant intercompany balances and transactions have been eliminated in preparing the consolidated financial statements. Certain amounts reported in prior periods have been reclassified to conform to the current year presentation. References to the “Company,” “we,” “us,” “our” or similar terms refer to USA Truck, Inc. and its subsidiary. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU No. 2016-2, Leases, which requires lessees to recognize a right-to-use asset and a lease obligation for all leases. Lessees are permitted to make an accounting policy election to not recognize an asset and liability for leases with a term of twelve months or less. Lessor accounting under the new standard is substantially unchanged. Additional qualitative and quantitative disclosures, including significant judgments made by management, will be required. The Company adopted the new standard beginning with the first quarter of 2019 using a modified retrospective transition approach, which includes a number of practical expedients. The effect of the adoption is reflected within the financial statements and Note 10. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Revenue is measured based upon consideration specified in a contract with a customer. The Company recognizes revenue over time, as contractual performance obligations are satisfied by transferring the benefit of the service to our customer. The benefit is transferred to the customer as the service is provided and revenue is recognized accordingly via time-based metrics. A corresponding contract asset of $1.5 million and $1.1 million was recorded in the March 31, 2019 and December 31, 2018 balance sheets, respectively, in the Accounts receivable line item. The Company is entitled to receive payment as it satisfies performance obligations with customers. The amount of remaining performance obligations relating to loads in process at 11:59 pm as of the end of each reporting period was deemed to be immaterial. Our business consists of two reportable segments, Trucking and USAT Logistics. For more detailed information about our reportable segments, see Note 4. The Company’s revenue types are line haul, fuel surcharge and accessorial. Line haul revenue represents the majority of our revenue and consists of fees earned for freight transportation, excluding fuel surcharge. Fuel surcharge revenue consists of additional fees earned by the Company in connection with the performance of line haul services to partially or completely offset the cost of fuel. Accessorial revenue consists of ancillary services `provided by the Company, including but not limited to, stop-off charges, loading and unloading charges, tractor or trailer detention charges, expedited charges, repositioning charges, etc. These accessorial charges are recognized as revenue throughout the service provided. The following tables set forth revenue disaggregated by revenue type and segment (in thousands): Three Months Ended Revenue type 2019 2018 Trucking USAT Logistics Eliminations Total Trucking USAT Logistics Eliminations Total Freight 81,423 36,630 (2,210 ) 115,843 66,917 40,973 (608 ) 107,282 Fuel surcharge 11,765 3,842 (167 ) 15,440 11,175 3,559 — 14,734 Accessorial 1,714 977 — 2,691 754 2,243 — 2,997 Total $ 94,902 $ 41,449 $ (2,377 ) $ 133,974 $ 78,846 $ 46,775 $ (608 ) $ 125,013 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING The Company’s two reportable segments are Trucking and USAT Logistics. In determining its reportable segments, the Company's management focuses on financial information, such as operating revenue, operating expense categories, operating ratios and operating income, as well as on key operating statistics, to make operating decisions. Trucking . Trucking is comprised of one-way truckload and dedicated freight motor carrier services. Truckload provides motor carrier services as a medium-haul common and contract carrier. USA Truck has provided truckload motor carrier services since its inception, and continues to derive the largest portion of its gross revenue from these services. Dedicated freight provides truckload motor carrier services to specific customers for movement of freight over particular routes at specified times. USAT Logistics. USAT Logistics' service offerings consist of freight brokerage, logistics, and rail intermodal services. Each of these service offerings match customer shipments with available equipment of authorized third-party motor carriers and other service providers. The Company provides these services to many existing Trucking customers, many of whom prefer to rely on a single service provider, or a small group of service providers, to provide all their transportation solutions. Revenue equipment assets are not allocated to USAT Logistics as freight services for customers are brokered through arrangements with third-party motor carriers who utilize their own equipment. To the extent rail intermodal operations require the use of Company-owned assets, they are obtained from the Company’s Trucking segment on an as-needed basis. Depreciation and amortization expense is allocated to USAT Logistics based on the Company-owned assets specifically utilized to generate USAT Logistics revenue. All intercompany transactions between segments reflect rates similar to those that would be negotiated with independent third parties. All other expenses for USAT Logistics are specifically identifiable direct costs or are allocated to USAT Logistics based on relevant cost drivers, as determined by management. In determining its reportable segments, the Company’s management focuses on financial information, such as operating revenue, operating expense categories, operating ratios and operating income, as well as on key operating statistics, to make operating decisions. A summary of operating revenue by segment is as follows (in thousands): Three Months Ended Operating revenue 2019 2018 Trucking revenue (1) $ 94,902 $ 78,846 Trucking intersegment eliminations (341 ) (113 ) Trucking operating revenue 94,561 78,733 USAT Logistics revenue 41,449 46,775 USAT Logistics intersegment eliminations (2,036 ) (495 ) USAT Logistics operating revenue 39,413 46,280 Total operating revenue $ 133,974 $ 125,013 (1) Includes foreign revenue of $9.5 million and $9.9 million for the three months ended March 31, 2019 and 2018, respectively. All foreign revenue is collected in U.S. dollars. A summary of operating income (loss) by segment is as follows (in thousands): Three Months Ended Operating income (loss) 2019 2018 Trucking $ 1,609 $ (464 ) USAT Logistics 2,312 2,856 Total operating income $ 3,921 $ 2,392 A summary of depreciation and amortization by segment is as follows (in thousands): Three Months Ended Depreciation and amortization 2019 2018 Trucking $ 8,579 $ 7,026 USAT Logistics 239 154 Total depreciation and amortization $ 8,818 $ 7,180 |
Equity Compensation and Employe
Equity Compensation and Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Compensation and Employee Benefit Plans | EQUITY COMPENSATION AND EMPLOYEE BENEFIT PLANS The Company adopted the 2014 Omnibus Incentive Plan (the “Incentive Plan”) in May 2014. The Incentive Plan replaced the 2004 Equity Incentive Plan and provided for the granting of up to 500,000 shares of common stock through equity-based awards to directors, officers and other key employees and consultants. The First Amendment to the Incentive Plan was adopted in May 2017, which, among other things, increased the number of shares of common stock available for issuance under the Incentive Plan by an additional 500,000 shares. As of March 31, 2019 , 56,412 shares remain available under the Incentive Plan for the issuance of future equity-based compensation awards. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | INTANGIBLE ASSETS AND GOODWILL The following tables summarizes the intangible assets and amortization expense for the period ended March 31, 2019 (in thousands): March 31, 2019 Amortization period (years) Gross Amount Accumulated Amortization Net intangible assets Trade name Indefinite $ 5,000 $ — $ 5,000 Non-compete agreement 2 140 20 120 Customer relationships 10 12,900 546 12,354 Total intangible assets $ 18,040 $ 566 $ 17,474 Changes in carrying amount of goodwill by reportable segment is as follows (in thousands): Trucking USAT Logistics Balance at December 31, 2018 $ 4,926 $ — Working capital adjustment 305 — Balance at March 31, 2019 $ 5,231 $ — The above intangible assets have a weighted average life of 119 months . The expected remaining amortization of these assets for the next five successive years and thereafter is as follows (in thousands): 2019 $ 996 2020 1,346 2021 1,288 2022 1,288 2023 1,288 2024 1,288 Thereafter 4,980 Total $ 12,474 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | ACCRUED EXPENSES Accrued expenses consisted of the following (in thousands): Accrued expenses March 31, December 31, Salaries, wages and employee benefits $ 4,274 $ 5,775 Federal and state tax accruals 1,679 1,898 Other (1) 1,355 1,693 Total accrued expenses $ 7,308 $ 9,366 (1) As of March 31, 2019 and December 31, 2018 , no single item included within other accrued expenses exceeded 5.0% of our total current liabilities. (2) See Note 15 for information regarding the revision. |
Insurance Premium Financing
Insurance Premium Financing | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Insurance Premium Financing | INSURANCE PREMIUM FINANCING During October 2018, the Company entered into agreements to pay approximately $4.7 million to third-party financing companies for the Company's annual insurance premiums. The balance of the note payable as of March 31, 2019 was $2.1 million . |
Long-term Debt
Long-term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | LONG-TERM DEBT Long-term debt consisted of the following (in thousands): March 31, December 31, Revolving credit agreement $ 92,450 $ 85,300 On January 31, 2019 , USA Truck, Inc., a Delaware corporation (the "Company"), entered into a five years , $225.0 million senior secured revolving credit facility (the "New Credit Facility") with a group of lenders and the Agent pursuant to the terms of an Amended and Restated Loan and Security Agreement that amends and restates the terms of the Company's previous five years , $170.0 million senior secured revolving credit facility dated February 15, 2015 . The Credit Facility is structured as a $225.0 million revolving credit facility, with an accordion feature that, so long as no event of default exists, allows the Company to request an increase in the revolving credit facility of up to $75.0 million , exercisable in increments of $20.0 million . The Credit Facility is a five year facility scheduled to terminate on January 31, 2024 . Borrowings under the Credit Facility are classified as either “base rate loans” or “LIBOR loans”. Base rate loans accrue interest at a base rate equal to the Agent’s prime rate plus an applicable margin set at 0.25% through June 30, 2019, and adjusted quarterly thereafter between 0.25% and 0.75% based on the Company’s consolidated fixed charge coverage ratio. LIBOR loans accrue interest at the London Interbank Offered Rate (“LIBOR”) plus an applicable margin set at 1.25% through June 30, 2019, and adjusted quarterly thereafter between 1.25% and 1.75% based on the Company’s consolidated fixed charge coverage ratio. The Credit Facility includes, within its $225.0 million revolving credit facility, a letter of credit sub-facility in an aggregate amount of $15.0 million and a swingline sub-facility (the “Swingline”) in an aggregate amount of $25.0 million . An unused line fee of 0.25% is applied to the average daily amount by which the lenders’ aggregate revolving commitments exceed the outstanding principal amount of revolver loans and the aggregate undrawn amount of all outstanding letters of credit issued under the Credit Facility. The Credit Facility is secured by a pledge of substantially all of the Company’s assets, except for any real estate or revenue equipment financed outside the Credit Facility. Borrowings under the Credit Facility are subject to a borrowing base limited to the lesser of (A) $225.0 million ; or (B) the sum of (i) 90% of eligible investment grade accounts receivable (reduced to 85% in certain situations), plus (ii) 85% of eligible non-investment grade accounts receivable, plus (iii) the lesser of (a) 85% of eligible unbilled accounts receivable and (b) $10.0 million , plus (iv) the product of 85% multiplied by the net orderly liquidation value percentage applied to the net book value of eligible revenue equipment, plus (v) 85% multiplied by the net book value of otherwise eligible newly acquired revenue equipment that has not yet been subject to an appraisal. The borrowing base is reduced by an availability reserve, including reserves based on dilution and certain other customary reserves. The Credit Facility contains a single financial covenant, which requires a consolidated fixed charge coverage ratio of at least 1.0 to 1.0 that is triggered in the event excess availability under the Credit Facility falls below 10% of the lenders’ total commitments. Also, certain restrictions regarding the Company’s ability to pay dividends, make certain investments, prepay certain indebtedness, execute share repurchase programs and enter into certain acquisitions and hedging arrangements are triggered in the event excess availability under the Credit Facility falls below 10% of the lenders’ total commitments. The Company had no borrowings under the Swingline as of March 31, 2019 . The average interest rate including all borrowings made under the Credit Facility as of March 31, 2019 was 3.88% . As debt is repriced on a monthly basis, the borrowings under the Credit Facility approximate fair value. As of March 31, 2019 , the Company had outstanding $5.4 million in letters of credit and had approximately $50.0 million available to borrow under the Credit Facility. |
Leases and Right of Use Assets
Leases and Right of Use Assets | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases and Right of Use Assets | LEASES AND RIGHT OF USE ASSETS USA Truck adopted ASU 2016-02, Leases (Topic 842), on January 1, 2019. The standard requires lessees to recognize a right-of-use ("ROU") asset and lease liability for all leases. Some of our leases contain both lease and non-lease components, which we have elected to treat as a single lease component. We have also elected not to recognize leases that have an original lease term, including reasonably certain renewal or purchase options, of twelve months or less in our consolidated balance sheets for all classes of underlying assets. Lease costs for short-term leases are recognized on a straight-line basis over the lease term. We elected the package of transition practical expedients for existing contracts, which allowed us to carry forward our historical assessments of whether contracts are or contain leases, lease classification and determination of initial direct costs. USA Truck leases property and equipment under finance and operating leases. The Company has operating and finance leases for revenue equipment, real estate, information technology equipment (primarily servers and copiers), and various other equipment used in operating our business. Certain leases for revenue equipment and information technology contain options to purchase, extend, guarantee residual value, or terminate the lease. Determining the lease term and amount of lease payments to include in the calculation of the ROU asset and lease liability for leases containing options requires the use of judgment to determine whether the exercise of an option is reasonably certain, and if the optional period and payments should be included in the calculation of the associated ROU asset and liability. In making this determination, we consider all relevant economic factors that would compel us to exercise or not exercise an option. When available, we use the rate implicit in the lease to discount lease payments; however, the rate implicit in the lease is not readily determinable for substantially all of our leases. In such cases, we use an estimate of our incremental borrowing rate to discount lease payments based on information available at lease commencement. As of March 31, 2019 , the Company has entered into leases with lessors who do not participate in the Credit Facility. Currently, such leases do not contain cross-default provisions with the Revolver. Revenue Equipment In addition to the revenue equipment owned by the Company, we currently lease 960 additional tractors and 700 trailers. Of the leased revenue equipment, 606 tractors and 651 trailers are classified as finance leases, 354 tractors and 49 trailers are classified as operating leases. Some of these assets are leased on a month-to-month basis and the leases can be terminated without penalty. The lease term for these types of leases is determined by the length of the underlying customer contract or based on the judgment of the business. These leases are treated as short-term as the cumulative right-of-use is less than 12 months over the term of the contract. The Company uses the leased revenue equipment for the same operational purposes as its owned equipment. Real Estate We have operating and finance leases for office space, terminal facilities, and drop yards. Many of our leases contain charges for common area maintenance or other miscellaneous expenses that are updated based on landlord estimates. Due to this variability, the cash flows associated with these charges are not included in the minimum lease payments used in determining the ROU asset and associated lease liability. Some of our real estate leases contain options to renew or extend the lease or terminate the lease before the expiration date. These options are factored into the determination of the lease term and lease payments when their exercise is considered to be reasonably certain. Information Technology and Other Equipment The Company leases information technology and other equipment, primarily servers and copiers, in the course of our operations. The components of lease expense for the three months ended March 31, 2019 are as follows (in thousands): Three Months Ended March 31, 2019 Operating lease costs $ 2,159 Finance lease costs: Amortization of assets 2,691 Interest on lease liabilities 546 Total finance lease costs 3,237 Variable and short-term lease costs 561 Total lease costs $ 5,957 Supplemental information and balance sheet location related to leases is as follows (in thousands, except lease term and discount rate): Three Months Ended Operating leases: March 31, 2019 Operating lease right-of-use assets $ 15,433 Current maturities of operating leases 8,423 Non-current operating leases 7,010 Total operating lease liabilities $ 15,433 Finance leases: Property, plant and equipment, at cost 80,307 Accumulated amortization (18,250 ) Property, plant and equipment, net $ 62,057 Current maturities of long-term debt 17,574 Long-term debt and finance leases 54,396 $ 71,970 Weighted average remaining lease term (in months): Operating leases 22 months Finance leases 36 months Weighted average discount rate: Operating leases 4.13 % Finance leases 2.46 % Supplemental cash flow information related to leases is as follows (in thousands): Three Months Ended Cash paid for amounts included in measurement of liabilities: March 31, 2019 Operating cash flows from operating leases $ 2,067 Operating cash flows from finance leases 546 Financing cash flows from finance leases 3,110 ROU assets obtained in exchange for lease liabilities: Operating leases 563 Finance leases $ 4,327 Maturities of lease liabilities as of March 31, 2019 are as follows (in thousands): Finance Leases Operating Leases 2019 $ 18,811 $ 5,927 2020 21,629 5,810 2021 7,325 1,493 2022 7,325 1,015 2023 17,133 653 Thereafter 2,451 1,394 Total lease payments 74,674 16,292 Less: Imputed interest (2,704 ) (859 ) Total lease obligations 71,970 15,433 Less: Current obligations (17,574 ) (8,423 ) Long-term lease obligations $ 54,396 $ 7,010 OTHER COMMITMENTS As of March 31, 2019 , the Company had $27.7 million in noncancellable commitments for purchases of both revenue and non-revenue equipment. We anticipate funding these commitments with cash flows from operating and financing activities. RELATED PARTY LEASE In the normal course of business, the Company leases office and shop space from a related party under a monthly operating lease. Rent expense for this space was approximately $0.04 million for the period ended March 31, 2019 , and is included in the "Operations and maintenance" line item in the accompanying consolidated statement of income and comprehensive income. |
Leases and Right of Use Assets | LEASES AND RIGHT OF USE ASSETS USA Truck adopted ASU 2016-02, Leases (Topic 842), on January 1, 2019. The standard requires lessees to recognize a right-of-use ("ROU") asset and lease liability for all leases. Some of our leases contain both lease and non-lease components, which we have elected to treat as a single lease component. We have also elected not to recognize leases that have an original lease term, including reasonably certain renewal or purchase options, of twelve months or less in our consolidated balance sheets for all classes of underlying assets. Lease costs for short-term leases are recognized on a straight-line basis over the lease term. We elected the package of transition practical expedients for existing contracts, which allowed us to carry forward our historical assessments of whether contracts are or contain leases, lease classification and determination of initial direct costs. USA Truck leases property and equipment under finance and operating leases. The Company has operating and finance leases for revenue equipment, real estate, information technology equipment (primarily servers and copiers), and various other equipment used in operating our business. Certain leases for revenue equipment and information technology contain options to purchase, extend, guarantee residual value, or terminate the lease. Determining the lease term and amount of lease payments to include in the calculation of the ROU asset and lease liability for leases containing options requires the use of judgment to determine whether the exercise of an option is reasonably certain, and if the optional period and payments should be included in the calculation of the associated ROU asset and liability. In making this determination, we consider all relevant economic factors that would compel us to exercise or not exercise an option. When available, we use the rate implicit in the lease to discount lease payments; however, the rate implicit in the lease is not readily determinable for substantially all of our leases. In such cases, we use an estimate of our incremental borrowing rate to discount lease payments based on information available at lease commencement. As of March 31, 2019 , the Company has entered into leases with lessors who do not participate in the Credit Facility. Currently, such leases do not contain cross-default provisions with the Revolver. Revenue Equipment In addition to the revenue equipment owned by the Company, we currently lease 960 additional tractors and 700 trailers. Of the leased revenue equipment, 606 tractors and 651 trailers are classified as finance leases, 354 tractors and 49 trailers are classified as operating leases. Some of these assets are leased on a month-to-month basis and the leases can be terminated without penalty. The lease term for these types of leases is determined by the length of the underlying customer contract or based on the judgment of the business. These leases are treated as short-term as the cumulative right-of-use is less than 12 months over the term of the contract. The Company uses the leased revenue equipment for the same operational purposes as its owned equipment. Real Estate We have operating and finance leases for office space, terminal facilities, and drop yards. Many of our leases contain charges for common area maintenance or other miscellaneous expenses that are updated based on landlord estimates. Due to this variability, the cash flows associated with these charges are not included in the minimum lease payments used in determining the ROU asset and associated lease liability. Some of our real estate leases contain options to renew or extend the lease or terminate the lease before the expiration date. These options are factored into the determination of the lease term and lease payments when their exercise is considered to be reasonably certain. Information Technology and Other Equipment The Company leases information technology and other equipment, primarily servers and copiers, in the course of our operations. The components of lease expense for the three months ended March 31, 2019 are as follows (in thousands): Three Months Ended March 31, 2019 Operating lease costs $ 2,159 Finance lease costs: Amortization of assets 2,691 Interest on lease liabilities 546 Total finance lease costs 3,237 Variable and short-term lease costs 561 Total lease costs $ 5,957 Supplemental information and balance sheet location related to leases is as follows (in thousands, except lease term and discount rate): Three Months Ended Operating leases: March 31, 2019 Operating lease right-of-use assets $ 15,433 Current maturities of operating leases 8,423 Non-current operating leases 7,010 Total operating lease liabilities $ 15,433 Finance leases: Property, plant and equipment, at cost 80,307 Accumulated amortization (18,250 ) Property, plant and equipment, net $ 62,057 Current maturities of long-term debt 17,574 Long-term debt and finance leases 54,396 $ 71,970 Weighted average remaining lease term (in months): Operating leases 22 months Finance leases 36 months Weighted average discount rate: Operating leases 4.13 % Finance leases 2.46 % Supplemental cash flow information related to leases is as follows (in thousands): Three Months Ended Cash paid for amounts included in measurement of liabilities: March 31, 2019 Operating cash flows from operating leases $ 2,067 Operating cash flows from finance leases 546 Financing cash flows from finance leases 3,110 ROU assets obtained in exchange for lease liabilities: Operating leases 563 Finance leases $ 4,327 Maturities of lease liabilities as of March 31, 2019 are as follows (in thousands): Finance Leases Operating Leases 2019 $ 18,811 $ 5,927 2020 21,629 5,810 2021 7,325 1,493 2022 7,325 1,015 2023 17,133 653 Thereafter 2,451 1,394 Total lease payments 74,674 16,292 Less: Imputed interest (2,704 ) (859 ) Total lease obligations 71,970 15,433 Less: Current obligations (17,574 ) (8,423 ) Long-term lease obligations $ 54,396 $ 7,010 OTHER COMMITMENTS As of March 31, 2019 , the Company had $27.7 million in noncancellable commitments for purchases of both revenue and non-revenue equipment. We anticipate funding these commitments with cash flows from operating and financing activities. RELATED PARTY LEASE In the normal course of business, the Company leases office and shop space from a related party under a monthly operating lease. Rent expense for this space was approximately $0.04 million for the period ended March 31, 2019 , and is included in the "Operations and maintenance" line item in the accompanying consolidated statement of income and comprehensive income. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES During the three months ended March 31, 2019 and 2018 , the Company’s effective tax rate was 26.5% and 28.8% , respectively. The Company’s effective tax rate, when compared to the federal statutory rate of 21% , is primarily affected by state income taxes, net of federal income tax effect for the current year periods, and permanent differences, the most significant of which is the effect of the partially non-deductible per diem pay structure for our drivers. Drivers may elect to receive non-taxable per diem pay in lieu of a portion of their taxable wages. This per diem program increases the Company’s drivers’ net pay per mile, after taxes, while decreasing gross pay, before taxes. Per diem pay is partially non-deductible by the Company under current IRS regulations. As a result, salaries, wages and employee benefits costs are slightly lower and effective income tax rates are higher than the statutory rate. Due to the partially non-deductible effect of per diem pay, the Company’s tax rate will change based on fluctuations in earnings (losses) and in the number of drivers who elect to receive this pay structure. Generally, as pretax income or loss increases, the impact of the driver per diem program on the Company’s effective tax rate decreases, because aggregate per diem pay becomes smaller in relation to pretax income or loss, while in periods where earnings are at or near breakeven the impact of the per diem program on the Company’s effective tax rate can be significant. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by adjusting the weighted average number of shares of common stock outstanding by common stock equivalents attributable to dilutive restricted stock and incentive stock options. The computation of diluted earnings per share does not assume conversion, exercise or contingent issuance of securities that would have an anti-dilutive effect on loss per share. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Numerator: 2019 2018 Net income $ 1,501 $ 1,035 Denominator: Denominator for basic earnings per share – weighted average shares 8,375 8,035 Effect of dilutive securities: Employee restricted stock and incentive stock options 24 5 Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversion 8,399 8,040 Basic earnings per share $ 0.18 $ 0.13 Diluted earnings per share $ 0.18 $ 0.13 Weighted average anti-dilutive employee restricted stock and incentive stock options 260 — |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | LEGAL PROCEEDINGS The Company is party to routine litigation incidental to its business, primarily involving claims for personal injury and property damage incurred in the transportation of freight. The Company maintains insurance to cover liabilities in excess of certain self-insured retention levels. Though management believes these claims to be immaterial to the Company’s long-term financial position, adverse results of one or more of these claims could have a material adverse effect on the Company’s financial position or results of operations in any given reporting period. |
Restructuring, Impairment and O
Restructuring, Impairment and Other Costs | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment and Other Costs | RESTRUCTURING, IMPAIRMENT AND OTHER COSTS On March 7, 2019, Mr. Johannes "Werner" P. Hugo resigned as Senior Vice President - Trucking Operations. Pursuant to Mr. Hugo's resignation, the Executive Compensation Committee approved a separation agreement with Mr. Hugo (the "Hugo Separation Agreement"). Pursuant to the Hugo Separation Agreement, Mr. Hugo received (i) salary continuation through April 6, 2019, (ii) continued vesting of 1,934 shares of restricted stock scheduled to vest on March 22, 2019, (iii) noncompete payments equal to his then-current base salary ( $275,000 per year) for a period of twelve months subject to ongoing compliance with certain non-competition, non-solicitation, non-disparagement, and confidentiality covenants in favor of the Company, and (iv) a prorated cash payment, if and to the extent earned, under the short term cash incentive compensation program adopted by the Executive Compensation Committee for 2019. In addition, the Separation Agreement contained a customary release of claims in favor of the Company. Total costs associated with Mr. Hugo’s resignation were $0.3 million and were recorded in the “Salaries, wages and employee benefits” line item in the accompanying condensed statements of income and comprehensive income. At March 31, 2019 , the Company had accrued severance costs associated with Mr. Hugo's retirement of approximately $0.3 million . In March 2018, the Company announced the retirement of Mr. James A. Craig, the Company’s Executive Vice President, Chief Commercial Officer, and President – USAT Logistics. Effective March 23, 2018, in connection with Mr. Craig’s retirement, the Executive Compensation Committee (the “Committee”) approved a separation agreement (the “Separation Agreement”) with the following terms: (i) salary continuation through May 31, 2018, (ii) non-compete payments equal to his current salary for a period of twelve months subject to ongoing compliance with certain non-competition, non-solicitation, non-disparagement, and confidentiality covenants in favor of the Company, (iii) a prorated cash payment, if and to the extent earned, under the short-term cash incentive compensation program adopted by the Committee for 2018, and (iv) accelerated vesting of 5,488 shares of time-vested restricted stock of the Company scheduled to vest on July 30, 2018 and 5,488 shares of performance-vested restricted stock of the Company scheduled to vest on July 30, 2018 depending on performance relative to USAT Logistics performance goals. At March 31, 2019 , the Company had accrued severance costs associated with Mr. Craig’s retirement of approximately $0.1 million . Total costs associated with Mr. Craig’s retirement were $0.7 million and were recorded in the “Salaries, wages and employee benefits” line item in the accompanying condensed consolidated statements of income and comprehensive income (loss). The following tables summarize the Company’s liabilities, charges, and cash payments related to executive severance agreements made during the three months ended March 31, 2019 and 2018 (in thousands): Accrued Costs Incurred Payments Expenses/ Charges Accrued Severance costs included in salaries, wages and employee benefits $ 247 $ 319 $ (189 ) $ — $ 377 Three Months Ended Costs incurred 2019 2018 Trucking $ 319 $ 484 USAT Logistics — 227 Total $ 319 $ 711 |
Correction of Immaterial Errors
Correction of Immaterial Errors | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Correction of Immaterial Errors | In connection with the preparation of our condensed consolidated financial statements for the three months ended March 31, 2019, we identified immaterial errors related to the recognition of certain income and expenses in the prior quarterly and annual periods. In accordance with SAB No. 99, “Materiality,” and SAB No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” we evaluated the errors and determined that the related impact was not material to our financial statements for any prior annual or interim period, but that correcting the cumulative impact of the error would be significant to our results of operations for the three months ended March 31, 2019. Accordingly, we have adjusted our consolidated balance sheets at December 31, 2018. The impact of the errors on our three month ended March 31, 2018 consolidated statements of income and comprehensive income, consolidated statement of cash flows, and retained earnings were deemed to be immaterial and will be adjusted in conjunction with our annual filing for the year ended December 31, 2019 on Form 10-K. We will also correct previously reported financial information for such immaterial errors in our future filings, as applicable. The effects of the adjusted on the individual line items within our condensed consolidated balance sheet at December 31, 2018 is as follows (in thousands): December 31, 2018 As Reported Adjustments As Adjusted Accounts receivable, net $ 56,003 $ 1,186 $ 57,189 Other receivables 5,104 584 5,688 Prepaid expenses and other current assets 7,224 451 7,675 Accounts payable 22,453 1,029 23,482 Accrued expenses 8,977 389 9,366 Retained earnings 77,664 803 78,467 Total stockholders' equity 80,470 803 81,273 |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | In February 2016, the FASB issued ASU No. 2016-2, Leases, which requires lessees to recognize a right-to-use asset and a lease obligation for all leases. Lessees are permitted to make an accounting policy election to not recognize an asset and liability for leases with a term of twelve months or less. Lessor accounting under the new standard is substantially unchanged. Additional qualitative and quantitative disclosures, including significant judgments made by management, will be required. The Company adopted the new standard beginning with the first quarter of 2019 using a modified retrospective transition approach, which includes a number of practical expedients. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The following tables set forth revenue disaggregated by revenue type and segment (in thousands): Three Months Ended Revenue type 2019 2018 Trucking USAT Logistics Eliminations Total Trucking USAT Logistics Eliminations Total Freight 81,423 36,630 (2,210 ) 115,843 66,917 40,973 (608 ) 107,282 Fuel surcharge 11,765 3,842 (167 ) 15,440 11,175 3,559 — 14,734 Accessorial 1,714 977 — 2,691 754 2,243 — 2,997 Total $ 94,902 $ 41,449 $ (2,377 ) $ 133,974 $ 78,846 $ 46,775 $ (608 ) $ 125,013 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | A summary of operating income (loss) by segment is as follows (in thousands): Three Months Ended Operating income (loss) 2019 2018 Trucking $ 1,609 $ (464 ) USAT Logistics 2,312 2,856 Total operating income $ 3,921 $ 2,392 A summary of operating revenue by segment is as follows (in thousands): Three Months Ended Operating revenue 2019 2018 Trucking revenue (1) $ 94,902 $ 78,846 Trucking intersegment eliminations (341 ) (113 ) Trucking operating revenue 94,561 78,733 USAT Logistics revenue 41,449 46,775 USAT Logistics intersegment eliminations (2,036 ) (495 ) USAT Logistics operating revenue 39,413 46,280 Total operating revenue $ 133,974 $ 125,013 (1) Includes foreign revenue of $9.5 million and $9.9 million for the three months ended March 31, 2019 and 2018, respectively. All foreign revenue is collected in U.S. dollars. A summary of depreciation and amortization by segment is as follows (in thousands): Three Months Ended Depreciation and amortization 2019 2018 Trucking $ 8,579 $ 7,026 USAT Logistics 239 154 Total depreciation and amortization $ 8,818 $ 7,180 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets | The following tables summarizes the intangible assets and amortization expense for the period ended March 31, 2019 (in thousands): March 31, 2019 Amortization period (years) Gross Amount Accumulated Amortization Net intangible assets Trade name Indefinite $ 5,000 $ — $ 5,000 Non-compete agreement 2 140 20 120 Customer relationships 10 12,900 546 12,354 Total intangible assets $ 18,040 $ 566 $ 17,474 |
Schedule of Finite-Lived Intangible Assets | The following tables summarizes the intangible assets and amortization expense for the period ended March 31, 2019 (in thousands): March 31, 2019 Amortization period (years) Gross Amount Accumulated Amortization Net intangible assets Trade name Indefinite $ 5,000 $ — $ 5,000 Non-compete agreement 2 140 20 120 Customer relationships 10 12,900 546 12,354 Total intangible assets $ 18,040 $ 566 $ 17,474 |
Schedule of Goodwill | Changes in carrying amount of goodwill by reportable segment is as follows (in thousands): Trucking USAT Logistics Balance at December 31, 2018 $ 4,926 $ — Working capital adjustment 305 — Balance at March 31, 2019 $ 5,231 $ — |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The expected remaining amortization of these assets for the next five successive years and thereafter is as follows (in thousands): 2019 $ 996 2020 1,346 2021 1,288 2022 1,288 2023 1,288 2024 1,288 Thereafter 4,980 Total $ 12,474 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses consisted of the following (in thousands): Accrued expenses March 31, December 31, Salaries, wages and employee benefits $ 4,274 $ 5,775 Federal and state tax accruals 1,679 1,898 Other (1) 1,355 1,693 Total accrued expenses $ 7,308 $ 9,366 (1) As of March 31, 2019 and December 31, 2018 , no single item included within other accrued expenses exceeded 5.0% of our total current liabilities. (2) See Note 15 for information regarding the revision. |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following (in thousands): March 31, December 31, Revolving credit agreement $ 92,450 $ 85,300 |
Leases and Right of Use Assets
Leases and Right of Use Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | Supplemental cash flow information related to leases is as follows (in thousands): Three Months Ended Cash paid for amounts included in measurement of liabilities: March 31, 2019 Operating cash flows from operating leases $ 2,067 Operating cash flows from finance leases 546 Financing cash flows from finance leases 3,110 ROU assets obtained in exchange for lease liabilities: Operating leases 563 Finance leases $ 4,327 The components of lease expense for the three months ended March 31, 2019 are as follows (in thousands): Three Months Ended March 31, 2019 Operating lease costs $ 2,159 Finance lease costs: Amortization of assets 2,691 Interest on lease liabilities 546 Total finance lease costs 3,237 Variable and short-term lease costs 561 Total lease costs $ 5,957 |
Assets and Liabilities, Lessee | Supplemental information and balance sheet location related to leases is as follows (in thousands, except lease term and discount rate): Three Months Ended Operating leases: March 31, 2019 Operating lease right-of-use assets $ 15,433 Current maturities of operating leases 8,423 Non-current operating leases 7,010 Total operating lease liabilities $ 15,433 Finance leases: Property, plant and equipment, at cost 80,307 Accumulated amortization (18,250 ) Property, plant and equipment, net $ 62,057 Current maturities of long-term debt 17,574 Long-term debt and finance leases 54,396 $ 71,970 Weighted average remaining lease term (in months): Operating leases 22 months Finance leases 36 months Weighted average discount rate: Operating leases 4.13 % Finance leases 2.46 % |
Finance Lease, Liability, Maturity | Maturities of lease liabilities as of March 31, 2019 are as follows (in thousands): Finance Leases Operating Leases 2019 $ 18,811 $ 5,927 2020 21,629 5,810 2021 7,325 1,493 2022 7,325 1,015 2023 17,133 653 Thereafter 2,451 1,394 Total lease payments 74,674 16,292 Less: Imputed interest (2,704 ) (859 ) Total lease obligations 71,970 15,433 Less: Current obligations (17,574 ) (8,423 ) Long-term lease obligations $ 54,396 $ 7,010 |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of March 31, 2019 are as follows (in thousands): Finance Leases Operating Leases 2019 $ 18,811 $ 5,927 2020 21,629 5,810 2021 7,325 1,493 2022 7,325 1,015 2023 17,133 653 Thereafter 2,451 1,394 Total lease payments 74,674 16,292 Less: Imputed interest (2,704 ) (859 ) Total lease obligations 71,970 15,433 Less: Current obligations (17,574 ) (8,423 ) Long-term lease obligations $ 54,396 $ 7,010 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Numerator: 2019 2018 Net income $ 1,501 $ 1,035 Denominator: Denominator for basic earnings per share – weighted average shares 8,375 8,035 Effect of dilutive securities: Employee restricted stock and incentive stock options 24 5 Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversion 8,399 8,040 Basic earnings per share $ 0.18 $ 0.13 Diluted earnings per share $ 0.18 $ 0.13 Weighted average anti-dilutive employee restricted stock and incentive stock options 260 — |
Restructuring, Impairment and_2
Restructuring, Impairment and Other Costs (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs By Segment | The following tables summarize the Company’s liabilities, charges, and cash payments related to executive severance agreements made during the three months ended March 31, 2019 and 2018 (in thousands): Accrued Costs Incurred Payments Expenses/ Charges Accrued Severance costs included in salaries, wages and employee benefits $ 247 $ 319 $ (189 ) $ — $ 377 Three Months Ended Costs incurred 2019 2018 Trucking $ 319 $ 484 USAT Logistics — 227 Total $ 319 $ 711 |
Correction of Immaterial Erro_2
Correction of Immaterial Errors (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Change in Accounting Estimate | The effects of the adjusted on the individual line items within our condensed consolidated balance sheet at December 31, 2018 is as follows (in thousands): December 31, 2018 As Reported Adjustments As Adjusted Accounts receivable, net $ 56,003 $ 1,186 $ 57,189 Other receivables 5,104 584 5,688 Prepaid expenses and other current assets 7,224 451 7,675 Accounts payable 22,453 1,029 23,482 Accrued expenses 8,977 389 9,366 Retained earnings 77,664 803 78,467 Total stockholders' equity 80,470 803 81,273 |
Revenue Recognition (Details Te
Revenue Recognition (Details Textual) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | |
Revenue Recognition [Abstract] | ||
Contract asset | $ | $ 1.5 | $ 1.1 |
Number of reportable segments | segment | 2 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue by Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 133,974 | $ 125,013 |
Freight | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 115,843 | 107,282 |
Fuel Surcharge | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 15,440 | 14,734 |
Accessorial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,691 | 2,997 |
Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | (2,377) | (608) |
Intersegment Eliminations | Freight | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | (2,210) | (608) |
Intersegment Eliminations | Fuel Surcharge | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | (167) | 0 |
Intersegment Eliminations | Accessorial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Operating Segments | Trucking | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 94,902 | 78,846 |
Operating Segments | Trucking | Freight | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 81,423 | 66,917 |
Operating Segments | Trucking | Fuel Surcharge | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 11,765 | 11,175 |
Operating Segments | Trucking | Accessorial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,714 | 754 |
Operating Segments | USAT Logistics | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 41,449 | 46,775 |
Operating Segments | USAT Logistics | Freight | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 36,630 | 40,973 |
Operating Segments | USAT Logistics | Fuel Surcharge | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,842 | 3,559 |
Operating Segments | USAT Logistics | Accessorial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 977 | $ 2,243 |
Segment Reporting (Details Text
Segment Reporting (Details Textual) | 3 Months Ended |
Mar. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting Information b
Segment Reporting Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 133,974 | $ 125,013 |
Operating loss | 3,921 | 2,392 |
Depreciation and amortization | 8,818 | 7,180 |
Trucking | ||
Segment Reporting Information [Line Items] | ||
Revenues | 94,561 | 78,733 |
Operating loss | 1,609 | (464) |
Depreciation and amortization | 8,579 | 7,026 |
Trucking | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 94,902 | 78,846 |
Trucking | Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues | (341) | (113) |
USAT Logistics | ||
Segment Reporting Information [Line Items] | ||
Revenues | 39,413 | 46,280 |
Operating loss | 2,312 | 2,856 |
Depreciation and amortization | 239 | 154 |
USAT Logistics | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 41,449 | 46,775 |
USAT Logistics | Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues | (2,036) | (495) |
Foreign Countries | Trucking | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 9,500 | $ 9,900 |
Equity Compensation and Emplo_2
Equity Compensation and Employee Benefit Plans (Details Textual) | 3 Months Ended |
Mar. 31, 2019shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Number of shares authorized (in shares) | 500,000 |
Number of additional shares authorized (in shares) | 500,000 |
Number of shares available for grant (in shares) | 56,412,000 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Schedule of Intangible Assets and Amortization Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Accumulated Amortization | $ 566 |
Net intangible assets | 12,474 |
Intangible assets, gross (excluding goodwill) | 18,040 |
Intangible assets, net (excluding goodwill) | 17,474 |
Trade name | |
Indefinite-lived Intangible Assets [Line Items] | |
Indefinite-lived intangible assets (excluding goodwill) | $ 5,000 |
Non-compete agreement | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period (years) | 2 years |
Gross Amount | $ 140 |
Accumulated Amortization | 20 |
Net intangible assets | $ 120 |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period (years) | 10 years |
Gross Amount | $ 12,900 |
Accumulated Amortization | 546 |
Net intangible assets | $ 12,354 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Carrying Amount of Goodwill By Segment (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Line Items] | |
Goodwill, beginning balance | $ 4,926 |
Goodwill, ending balance | 5,231 |
Trucking | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 4,926 |
Working capital adjustment | 305 |
Goodwill, ending balance | 5,231 |
USAT Logistics | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 0 |
Working capital adjustment | 0 |
Goodwill, ending balance | $ 0 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Future Amortization Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets, weighted average useful life | 119 months |
2019 | $ 996 |
2020 | 1,346 |
2021 | 1,288 |
2022 | 1,288 |
2023 | 1,288 |
2024 | 1,288 |
Thereafter | 4,980 |
Net intangible assets | $ 12,474 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Salaries, wages and employee benefits | $ 4,274 | $ 5,775 |
Federal and state tax accruals | 1,679 | 1,898 |
Other | 1,355 | 1,693 |
Total accrued expenses | $ 7,308 | $ 9,366 |
Insurance Premium Financing (De
Insurance Premium Financing (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2018 |
Short-term Debt [Line Items] | |||
Insurance premium financing | $ 2,144 | $ 4,435 | |
Insurance Premiums Financing Note | |||
Short-term Debt [Line Items] | |||
Insurance premium financing | $ 4,700 | ||
Notes payable | $ 2,100 |
Long-term Debt - Summary of Lon
Long-term Debt - Summary of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Revolving credit agreement | $ 92,450 | $ 85,300 |
Long-term Debt (Details Textual
Long-term Debt (Details Textual) - USD ($) | Jan. 31, 2019 | Mar. 31, 2019 | Feb. 15, 2015 |
Debt Instrument [Line Items] | |||
Borrowing based threshold for eligible unbilled accounts receivable | 85.00% | ||
Remaining borrowing capacity | $ 50,000,000 | ||
Weighted average interest rate | 3.88% | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 225,000,000 | $ 170,000,000 | |
Additional borrowing capacity | 75,000,000 | ||
Additional borrowing capacity, incremental amount | $ 20,000,000 | ||
Debt instrument, term | 5 years | ||
Commitment fee percentage | 0.25% | ||
Borrowing based threshold eligible investment grade accounts receivable percentage | 85.00% | ||
Borrowing base before additions of eligible revenue equipment | $ 10,000,000 | ||
Newly acquired revenue equipment, percentage | 85.00% | ||
Eligible revenue equipment, percentage | 85.00% | ||
Fixed charge coverage ratio | 1 | ||
Minimum excess availability percentage of maximum revolver amount | 10.00% | ||
Percentage of maximum revolver amount | 10.00% | ||
Letters of credit outstanding, amount | $ 5,400,000 | ||
Letter of Credit Sub Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 15,000,000 | ||
Swing Line Sub Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 25,000,000 | ||
Minimum | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Borrowing based threshold eligible investment grade accounts receivable percentage | 85.00% | ||
Maximum | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Borrowing based threshold eligible investment grade accounts receivable percentage | 90.00% | ||
Base Rate | Minimum | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.25% | ||
Base Rate | Maximum | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.75% | ||
London Interbank Offered Rate (LIBOR) | Minimum | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
London Interbank Offered Rate (LIBOR) | Maximum | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% |
Leases and Right of Use Asset_2
Leases and Right of Use Assets - Components of Lease Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease costs | $ 2,159 |
Finance lease costs: | |
Amortization of assets | 2,691 |
Interest on lease liabilities | 546 |
Total finance lease costs | 3,237 |
Variable and short-term lease costs | 561 |
Total lease cost | $ 5,957 |
Leases and Right of Use Asset_3
Leases and Right of Use Assets - Supplemental Balance Sheet Information (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating leases: | |
Operating leases - right of use assets | $ 15,433 |
Current maturities of operating leases | 8,423 |
Non-current operating leases | 7,010 |
Total operating lease liabilities | 15,433 |
Finance leases: | |
Property, plant and equipment, at cost | 80,307 |
Accumulated amortization | (18,250) |
Property, plant and equipment, net | 62,057 |
Current maturities of finance leases | 17,574 |
Long-term debt and finance leases | 54,396 |
Total lease obligations | $ 71,970 |
Weighted average remaining lease term (in months): | |
Operating leases | 22 months |
Finance leases | 36 months |
Weighted average discount rate: | |
Operating leases | 4.13% |
Finance leases | 2.46% |
Leases and Right of Use Asset_4
Leases and Right of Use Assets - Lease Cost and Other Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | $ 2,067 |
Operating cash flows from finance leases | 546 |
Financing cash flows from finance leases | 3,110 |
ROU assets obtained in exchange for lease liabilities: | |
Right-of-use assets obtained in exchange for new operating lease | 563 |
Right-of-use assets obtained in exchange for new finance lease | $ 4,327 |
- Maturity of Lease Liabilities
- Maturity of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Finance Leases | |
2019 | $ 18,811 |
2020 | 21,629 |
2021 | 7,325 |
2022 | 7,325 |
2023 | 17,133 |
Thereafter | 2,451 |
Total lease payments | 74,674 |
Less: Imputed interest | (2,704) |
Total lease obligations | 71,970 |
Less: Current obligations | (17,574) |
Finance leases, less current maturities | 54,396 |
Operating Leases | |
2019 | 5,927 |
2020 | 5,810 |
2021 | 1,493 |
2022 | 1,015 |
2023 | 653 |
Thereafter | 1,394 |
Total lease payments | 16,292 |
Less: Imputed interest | (859) |
Total operating lease liabilities | 15,433 |
Less: Current obligations | (8,423) |
Long-term lease obligations | $ 7,010 |
Leases and Right of Use Asset_5
Leases and Right of Use Assets - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)tractortrailer | |
Lessee, Lease, Description [Line Items] | |
Number of tractors under lease | tractor | 960 |
Number of trailers under lease | trailer | 700 |
Operating lease, lease not yet commenced, payments due | $ | $ 27.7 |
Lease rent expense | $ | $ 0 |
Assets Held Under Finance Leases | |
Lessee, Lease, Description [Line Items] | |
Number of tractors under lease | tractor | 606 |
Number of trailers under lease | trailer | 651 |
Assets Held Under Operating Leases | |
Lessee, Lease, Description [Line Items] | |
Number of tractors under lease | tractor | 354 |
Number of trailers under lease | trailer | 49 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate reconciliation percent | 26.50% | 28.80% |
Effective income tax rate reconciliation at federal statutory income tax rate, percent | 21.00% |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ 1,501 | $ 1,035 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Denominator for basic earnings per share – weighted average shares (in shares) | 8,375 | 8,035 |
Effect of dilutive securities: | ||
Employee restricted stock and incentive stock options (in shares) | 24 | 5 |
Denominator for diluted earnings (loss) per share – adjusted weighted average shares and assumed conversion (in shares) | 8,399 | 8,040 |
Basic earnings per share (in usd per share) | $ 0.18 | $ 0.13 |
Diluted earnings per share (in usd per shares) | $ 0.18 | $ 0.13 |
Weighted average anti-dilutive employee restricted stock and incentive stock options (in shares) | 260 | 0 |
Restructuring, Impairment and_3
Restructuring, Impairment and Other Costs (Details Textual) - USD ($) $ in Thousands | Mar. 07, 2019 | Mar. 26, 2018 | Mar. 31, 2019 |
Hugo Separation Agreement | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance pay, annual salary | $ 275 | ||
Term for base salary continuation | 12 months | ||
Costs Incurred | $ 300 | ||
Craig's Separation Agreement | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Term for base salary continuation | 12 months | ||
Restricted Stock | |||
Restructuring Cost and Reserve [Line Items] | |||
Continued vesting of shares of restricted stock (in shares) | 1,934 | ||
Time-Vested Restricted Stock | |||
Restructuring Cost and Reserve [Line Items] | |||
Accelerated vesting, number (in shares) | 5,488 | ||
Performance-Vested Restricted Stock | |||
Restructuring Cost and Reserve [Line Items] | |||
Accelerated vesting, number (in shares) | 5,488 | ||
Salaries, Wages and Employee Benefits | Hugo Separation Agreement | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | $ 300 | ||
Salaries, Wages and Employee Benefits | Craig's Separation Agreement | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs Incurred | 700 | ||
Severance costs | $ 100 |
Restructuring, Impairment and_4
Restructuring, Impairment and Other Costs - Restructuring and Executive Severance (Details) - Executive Severance - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Accrued beginning balance | $ 247 | |
Costs Incurred | 319 | $ 711 |
Payments | (189) | |
Expenses/ Charges | 0 | |
Accrued end balance | $ 377 |
Restructuring, Impairment and_5
Restructuring, Impairment and Other Costs - Executive Severance by Segment (Details) - Executive Severance - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | $ 319 | $ 711 |
Trucking | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | 319 | 484 |
USAT Logistics | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | $ 0 | $ 227 |
Correction of Immaterial Erro_3
Correction of Immaterial Errors (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Accounts receivable, net | $ 63,345 | $ 57,189 | ||
Other receivables | 4,474 | 5,688 | ||
Prepaid expenses and other current assets | 7,102 | 7,675 | ||
Accounts payable | 29,934 | 23,482 | ||
Accrued expenses | 7,308 | 9,366 | ||
Retained earnings | 79,968 | 78,467 | ||
Total stockholders' equity | $ 83,291 | 81,273 | $ 67,347 | $ 66,488 |
As Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Accounts receivable, net | 56,003 | |||
Other receivables | 5,104 | |||
Prepaid expenses and other current assets | 7,224 | |||
Accounts payable | 22,453 | |||
Accrued expenses | 8,977 | |||
Retained earnings | 77,664 | |||
Total stockholders' equity | 80,470 | |||
Adjustments | Recognition of Certain Income and Expenses | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Accounts receivable, net | 1,186 | |||
Other receivables | 584 | |||
Prepaid expenses and other current assets | 451 | |||
Accounts payable | 1,029 | |||
Accrued expenses | 389 | |||
Retained earnings | 803 | |||
Total stockholders' equity | $ 803 |