[Stay on top of transportation news: Get TTNews in your inbox.]
US Xpress Enterprises posted earnings gains and revenue growth for the second quarter, the company reported.
The Chattanooga, Tenn-based trucking company on July 22 reported controlling interest net income of $19.1 million, or 37 cents per diluted share, for the three months ended ends June 30. That compares to $9.5 million 18 cents in 2020 period = Stage. Total operating revenue increased 12.4% from $422.5 million to $475 million.
US Xpress also provides an update on its fleet based on its digitally managed and dispatched asset, Variant. The platform – launching in Q2 2020 – in Q2 2021 grew to 1,160 tractors and generated 15.5% of total US Xpress truck sales. The company says it is still on track to reach its goal of 1,500 tractors by the end of the year.
“From a strategic perspective, we continue to effectively execute our digital transformation plan, which underpins our goal of doubling revenue and dramatically expanding margins over the next four years. ,” US Xpress CEO Eric Fuller said in a statement. “The key cornerstones of our plan are growing the Variant fleet, expanding our digital brokerage, and continuously optimizing our freight selection algorithms.” Fuller said the company was successful in each category in Q2.
Despite strong Q2 results amid a strong overall freight market, Fuller noted that financial performance is being impacted by lower overall tractor numbers, market tight vehicle and duplicate cost structure required to build and develop Variant.
“After the second quarter, we believe we have reached an inflection point as the Variant fleet has reached the scale to grow at a faster rate than expected for the rest of our legacy. [over-the-road] Fuller said. “We believe we can grow the overall number of tractors sequentially. A larger fleet that includes a higher percentage of more profitable Variant tractors is consistent with our long-term vision for revenue and margin expansion. “
The company’s results beat expectations of investment analysts on Wall Street, who expected 13-cent EPS and quarterly revenue of $457.09 million, according to Zacks Consensus Estimates.
The US Xpress truck business saw Q2 revenue drop 2% to $341.1 million from $347.9 million last year. The segment’s operating income fell 57.2% to $8.7 million from $20.4 million in the previous quarter. The truck segment includes off-road and specialized operations.
The off-road vehicle segment saw an increase in average revenue per tractor per week by $279, or 7.8%, compared to Q2 2020. This improvement mainly reflects a 22.8% increase in average sales per mile, partially offset by a 12.2% reduction in average miles per tractor. The dedicated segment reported a $214 increase in average revenue per tractor per week, or 5.2%, year over year. This reflected 4.1% higher average revenue per mile and 1.1% higher revenue miles per tractor.
The brokerage division saw Q2 revenue increase 109.6 percent to $96.5 million from $46 million in Q2 2020. Operating income recovered to a profit of $161,000 from operating loss of $4.2 million last year.
US Xpress ranked 21st above Transportation Topics List of the 100 largest rental carriers in North America and Number 47 above TT Top 50 list of largest logistics companies in North America.
Want more news? Listen to today’s daily recap below or go here for more information:
https://www.ttnews.com/articles/us-xpress-reports-475-million-revenue-q2 | U.S. Xpress Reports $475 Million Revenue for Q2