USA Truck Inc (NASDAQ:USAK) Q2 2020 Earnings Conference Call - Final Transcript
Jul 28, 2020 • 09:00 am ET
Good day, and welcome to the USA Truck's Second Quarter 2020 Earnings Conference Call. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. [Operator Instructions]
I would now like to turn the conference over to Mike Stephens. Please go ahead.
Thank you, Sarah, and good morning, and welcome to USAT Capacity Solutions Second Quarter Earnings Conference Call. Joining us this morning from the company are James Reed, President and CEO; and Zach King, Senior Vice President and CFO. We thank you for joining us today.
In order to help you better understand USAT Capacity Solutions and its results, some forward-looking statements could be made during the call. As we all know, forward-looking statements, by their very nature, are subject to uncertainties and risks. For a more complete discussion of factors that could affect the company's future results, please refer to the forward-looking statements section of the company's earnings press release and the company's most recent SEC public filings in order to provide more meaningful comparisons, certain information discussed on the conference call, including non-GAAP financial measures as outlined and described in the tables in our earnings press release.
I'll now turn the time over to Zach.
Thank you, Mike. We want to thank everyone for joining us on the call today, and we appreciate your interest in and support of USA Truck. We hope you all had an opportunity to review our earnings release from last night.
As we stated in the second quarter, the second quarter was unlike any quarter we have experienced as a management team. The coronavirus pandemic pressured our nonessential customers, which make up approximately 20% of our active trucking customer base, causing many to stop shipping altogether or significantly reduce shipments. This caused us to move trucks into the spot market, which has been at a four year low. The move caused a decrease in utilization, rate and base revenue per tractor per week. In Logistics, we were able to increase load count 16% year-over-year and 23% sequentially to help offset the rate pressure in the marketplace.
If you'll please turn with me to Slide number 3, we'll do a brief review of our financial results. Consolidated operating revenues came in at $123.7 million for the quarter, which represents a 7.4% decrease year-over-year. Base revenue was down 2.8%, which excludes fuel. Consolidated adjusted operating ratio for the quarter was 98.6%, up from 98% in the prior year, primarily driven by weaker freight environment due to the COVID-19 pandemic, which affected both of our operating segments. Our adjusted loss per diluted share was $0.06.
Turning to Slide number 4. Trucking operating revenue before intersegment eliminations decreased $7.8 million or 8.1% to $88.6 million. Base revenue, excluding fuel, was down 3.5% to $80.5 million, compared to $83.4 million for the second quarter of 2019. Our Trucking segment generated adjusted operating income of $1.7 million, an increase of 47% year-over-year. As a result, our Trucking segment second quarter 2020 adjusted operating ratio was 97.8%, an