USA Truck’s net income in the second quarter of 2019 came to total $1000 dollars. Last year, the large truckload carrier’s net income for the same quarter was $2.5 million.
Although USA Truck drove more miles in 2019 than it did in 2018, the revenue per load decreased by a staggering 18.4%.
The spot market had dropped by as much as 18% from June 2018 to June 2019, causing much of USA Truck’s contract business to pull out and head to the ultra-cheap spot market.
USA Truck’s Chief Financial Officer, Jason Bates, alluded to the issue of high variability in rates as the cause for such downturns.
To quickly improve its financial performance, the company plans to cut fixed costs by up to 10% and add new customers to its already large base.
