Chattanooga, TN, Apr. 15--U.S. Xpress Enterprises, Inc. today reported higher operating revenues and earnings for the first quarter ended March 31. Revenues increased 6.3% to $234.7 million compared with $220.7 million in the first quarter of 2003. Net income for the first quarter of 2004 was $800,000, or $0.06 per diluted share, compared with net income of $121,000, or $0.01 per share, in the first quarter of 2003.
Consolidated operating income increased 13.4% to $3.6 million in the first quarter compared with $3.2 million in the prior-year period. Truckload segment operating income increased 10.6% to $3.4 million and Xpress Global Systems increased operating income to $230,000 in the first quarter compared with $126,000 in the prior-year period.
Co-Chairman, Patrick Quinn, stated, "First quarter results were up substantially from a year ago on higher operating income from both the truckload and Xpress Global segments. The record 6.0% increase in revenue per mile to $1.35 was a particular highlight for us in what is seasonally our slowest quarter. Additionally, our rate per mile in March was well above the quarter average. We have aggressively pursued rate increases throughout our customer base. In certain cases, we have walked away from under performing accounts and freight lanes that did not offer the opportunity to achieve adequate financial returns. Heading into the heavier freight volume months, this stronger rate structure should lead to continued improvement in earnings while offsetting the higher operating costs associated with increased driver pay, revenue equipment costs, fuel expenses, insurance and the less efficient EPA-compliant engines.
"In truckload operations, our dedicated contract and regional businesses continued their strong pace of development with revenue growth of over 50% compared to the prior year quarter. These two operations combined accounted for approximately 27% of truckload revenues in the quarter compared with 18% a year ago. Truckload operations also benefited from continued growth in one of our new service offerings--an expedited rail program. To meet growing demand and improve financial returns in certain long to medium-haul markets, we began offering this service to customers almost a year ago. Using our existing trailers along with the expedited rail service, we can provide our customers with service comparable to solo truck transit time. During the first quarter, our expedited rail service generated approximately $15.5 million of truckload revenue. Xpress Global revenues were up 18.2% in the quarter on a 24% increase in our carpet business and a 9% increase in our airport-to-airport operation. Profitability at Xpress Global was driven primarily by the growth in revenues in the carpet and floorcoverings as airport-to-airport failed to deliver improved operating results due to lower than anticipated freight volumes."
