USA Truck Inc (NASDAQ:USAK) Q2 2020 Earnings Conference Call - Final Transcript
Jul 28, 2020 • 09:00 am ET
improvement of 80 points year-over-year and 370 basis points sequentially.
Trucking base revenue per loaded mile decreased from $2.14 to $2.02 or 5.7%, and utilization decreased 76 miles per truck per week or 4.9% from the second quarter of 2019, largely due to network interruptions caused by non-essential customers' freight volumes. These rate and utilization outcomes negatively affected base revenue per available tractor per week, which decreased $347 or 10.4% year-over-year for the second quarter.
Our debt head percentage for the second quarter of 2020 improved by 10 basis points from the first quarter. Our average available unseated tractor count percentage was 5.8%, a 60 basis point increase from the second quarter of 2019. The average available tractor count for the first quarter of 2020 was 2,063, which is a 7.7% increase when compared to the second quarter of 2019. This truck count growth was due to additions of owner operators.
Turning to Slide number 6. We'll review the results of our USAT Logistics segment. Revenue before intersegment eliminations decreased $0.8 million from the second quarter of 2019 or 2.1% to $38.7 million. Our Logistics segment generated $172,000 adjusted operating loss and had 100.5% operating ratio. Gross margin dollars decreased $1.8 million to $4.7 million. Gross margin percentage for the first quarter of 2020 was 12.2% versus 16.5% for the comparable quarter of 2019.
Load count increased to 33,400 loads during the second quarter of 2020 from the 27,200 loads in the first quarter, an increase of 22.8%, an increase by 15.9% or approximately 4,500 loads year-over-year. The primary drivers of these results were a decrease in revenue per load of approximately 15.6% and only an 11% decrease in purchased transportation costs per load when compared to the robust brokerage market experienced in the second quarter of 2019. This market environment drove our margin per load to $141 per load from $227 per load year-over-year.
If you'll turn with me to Slide number 7, we'll highlight some key balance sheet and liquidity measures. As of June 30, 2020, total debt and lease liabilities were $189.5 million, and stockholders' equity was $75.5 million. Net debt was $189.4 million, and our net debt to adjusted EBITDAR for the trailing 12-months ended was 4.1 times, down from 4.2 times as of Q1. This represents a net debt decrease of $6.8 million from Q1 2020 and a 10 basis point improvement in our leverage ratio. The company had approximately $38 million available to borrow under its credit facility as of June 30, 2020.
The continued impact and uncertainty caused by the COVID-19 pandemic on our customers, employees and communities has caused us to continue to focus on minimizing cash outflows. We continue to expect minimal capex in the near-term. However, during July, we did enter into an agreement to lease 189 new tractors and disposed of certain high-cost tractors during the back half of 2020. We expect this agreement to allow us the opportunity to reduce our average tractor age and improve our maintenance