U.S. Xpress Enterprises, Inc. (NYSE:USX) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 05:00 pm ET

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U.S. Xpress Enterprises, Inc. (NYSE:USX) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, greetings, and welcome to the U.S. Xpress Fourth Quarter and Full Year 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this program is being recorded.

It is now my pleasure to introduce your host, Brian Baubach, Senior Vice President of Corporate Finance. Thank you. You may begin.

Executive
Brian Baubach

Thank you, operator, and good afternoon, everyone. We appreciate your participation in our fourth quarter 2018 earnings call. With me here today are Eric Fuller, President and Chief Executive Officer; and Eric Peterson, Chief Financial Officer.

As a reminder, a replay of this call will be available in the Investors Section of our website through February 14th, 2019. We've also posted a supplemental presentation to complement today's discussion on our website at investor.usxpress.com.

Before we begin, let me remind everyone that this call may contain certain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include remarks about future expectations, beliefs, estimates, plans, and prospects. Such statements are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from those indicated or implied by such statements. Such risks and other factors are set forth in our final prospectus, dated June 13, 2018, and we do not undertake any duty to update such forward-looking statements.

Additionally, during today's call, we will discuss certain non-GAAP measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with US GAAP. A reconciliation of these non-GAAP measures to the most comparable GAAP measure can be found in our earnings release.

At this point, I'll turn the call over to Eric Fuller.

Executive
William Eric Fuller

Thank you, Brian, and good afternoon, everybody.

I'd like to start by reviewing our fourth quarter results and the progress that we have achieved executing upon our strategic initiatives, and then conclude with a review of our market outlook. Eric Peterson will then discuss our fourth quarter financial results in more detail before opening the call for questions.

I'm proud of our fourth quarter and full-year 2018 results. For the fourth quarter, our adjusted operating ratio improved 280 basis points year-over-year to 92.5%. This quarter's performance represents the sixth consecutive quarter of OR improvement, and is the best adjusted operating ratio that we have delivered in 20 years. Our focus has been to manage the business by core metrics, including Rate, Truck Count, Utilization and Cost. We measure our success by our adjusted operating ratio that our team delivers as we work to increase earnings.

2018 was the best year in our Company's history, with record financial results, positive early year momentum, and an improved capital structure from our June initial public offering. We are well positioned to continue to methodically manage our capital allocation, improve