XPRSA U.S. Xpress Ent Class A (MM)

U.S. Xpress Enterprises, Inc. (NASDAQ:XPRSA) today announced operating revenue and earnings for the third quarter and nine months ended September 30, 2006. Financial Highlights Revenue for the third quarter of 2006 increased 33.4% to $396.6 million compared with $297.2�million in the third quarter of 2005. Net income for the third quarter increased 81.9% to $7.3 million, or $0.47�per diluted share, compared with net income of $4.0 million, or $0.25 per diluted share in the prior-year period. For the nine months ended September 30, 2006, revenue increased 28.3% to $1.09 billion from $846.3 million in the prior-year period. For the first nine months of 2006, the Company reported net income of $13.7 million, or $0.88�per diluted share, compared with net income, before a one-time pre-tax charge of $2.8 million related to the sale and exit of the Company�s airport-to-airport business, of $3.8 million, or $0.24�per diluted share, for the prior-year period. After the one-time charge, the Company reported net income of $2.4 million, or $0.24 per diluted share for the nine months ended September 30, 2005. On February 28, 2006, the Company acquired additional equity in both Arnold Transportation and Total Transportation, increasing its ownership interest in each to 80% from 49%. Accordingly, the financial results of Arnold and Total from February 28, 2006, are included in the Company�s consolidated financial statements. Consolidated revenue, excluding fuel surcharges, and operating income for the third quarter of 2006 includes $76.8 million of revenue and $6.6 million in operating income of Arnold and Total. Results for the nine months ended September 30, 2006, include $184.2 million of revenue and $13.2 million in operating income of Arnold and Total. Truckload Operations During the third quarter, truckload revenue, excluding the effect of fuel surcharges, increased 29.4% to $312.0 million from $241.1 million a year ago while truckload operating income increased 51.6% to $17.7 million from $11.7 million in the third quarter of 2005. These increases were primarily driven by the contributions of Arnold and Total. Co-Chairman, Patrick Quinn, stated, �Despite weakness in the freight market and spot market pricing relative to last year, we achieved significant improvements in our truckload operating margins on both a year-over-year and sequential 2006 quarterly basis. We believe these results demonstrate the progress we have made in improving the performance of our base truckload business. The less than one percent increase in our rate per revenue mile reflects the soft spot market experienced in the third quarter of 2006 compared to the prior-year quarter, which was significantly impacted by tight truckload capacity after the hurricanes during the third quarter of 2005. All of our truckload operations have achieved meaningful year-over-year rate increases on their base contractual business. �The driver recruiting market remains very difficult. However, due in part to improvements in our driver turnover, our seated tractors grew sequentially from the end of the second quarter of 2006 by approximately 250 tractors. The average age of our tractor fleet continues to decline in advance of the introduction of the new higher cost and less efficient engines mandated by federal regulations beginning in 2007. Given our current delivery schedule of new tractors, we expect the average age of our tractor fleet equipped with pre-2007 emission engine to approach 1.5 years in the first quarter of 2007.� Xpress Global Systems Revenue of Xpress Global Systems was essentially flat at $24.1 million for the quarters ended September 30, 2006 and 2005. Xpress Global Systems� operating income for the third quarter was $1.5 million compared with an operating loss of $2.2 million in the prior-year quarter. The significant improvement in operating income reflects the improvement the Company has achieved in on-time customer service, pricing and yield management, operational efficiencies and reduced overhead expenditures. Co-Chairman Max Fuller stated, �We are pleased that the contributions to earnings of Arnold and Total, the improvements achieved in the base U.S. Xpress truckload business and the sustained turnaround at Xpress Global resulted in a new record for quarterly earnings per share. We believe the diversification of our truckload business and operational improvements we have accomplished in recent years has made us less dependent on a strong freight and spot pricing market to achieve improved operating results. �Consistent with other published reports, freight demand in October is softer than what we experienced in October of last year while spot pricing remains depressed. Further, we have not experienced the normal seasonal improvement in freight demand to the degree we would have expected by this time in the quarter. However, we believe we are much better positioned today than we were a year ago to generate improved yields from our base business and minimize the impact of a potentially softer year-over-year freight market in the fourth quarter.� Conference Call and Webcast U.S. Xpress Enterprises will host a conference call to discuss third quarter results on Tuesday, October 24, 2006, at 10:00�a.m. ET. The number to call for this interactive teleconference is (303)�262-2140. A replay of the conference call will be available through October 31, 2006, by dialing (303)�590-3000 and entering the confirmation number, 11074092#. The live broadcast of U.S. Xpress Enterprises' quarterly conference call will be available online beginning at 10:00 a.m. ET on October 24, 2006, at the Company's website, www.usxpress.com, and at http://www.videonewswire.com/event.asp?id=36191&regd=n on October 24, 2006. The online replay will follow shortly after the call and continue through November 24, 2006. U.S. Xpress Enterprises, Inc. U.S. Xpress Enterprises, Inc. is the fifth largest publicly owned truckload carrier in the United States, measured by revenue. The Company provides dedicated, regional, and expedited team truckload services throughout North America, with regional capabilities in the West, Midwest, and Southeastern United States. The Company is one of the largest providers of expedited and time-definite services in the truckload industry and is a leader in providing expedited intermodal rail services. Xpress Global Systems, Inc., a wholly owned subsidiary, is a provider of transportation, warehousing, and distribution services to the floor covering industry. The Company participates in logistics services through its joint ownership of Transplace, an Internet-based global transportation logistics company. U.S. Xpress has an 80% ownership interest in Arnold Transportation Services, Inc., which provides regional, dedicated, and medium length-of-haul services with a fleet of approximately 1,500 trucks, and Total Transportation of Mississippi and affiliated companies, a truckload carrier that provides medium length of haul and dedicated dry-van service with a fleet of approximately 500 trucks primarily in the Eastern United States. Additionally, U.S. Xpress has a 49% ownership interest in Abilene Motor Express, Inc., a truckload carrier that provides medium length of haul and dedicated dry van truck services, primarily in the eastern United States with a fleet of approximately 170 trucks. Please visit the Company's website at www.usxpress.com. This press release contains certain statements that may be considered "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements generally may be identified by their use of terms or phrases such as "expects," "estimates," "anticipates," "projects," "believes," "plans," "intends," "may," "will," "should," "could," "potential," "continue," "future," and terms or phrases of similar substance. In this press release, these statements include, without limitation, statements relating to freight demand, competition for drivers, tractor fleet age, improvements in the performance of truckload and Xpress Global operations, and the company�s ability to generate improved yields and withstand decreases in freight volumes. The following factors, among others, could cause actual results to differ materially from those expressed in forward-looking statements: the risk that freight demand decreases further than we expect or that any decrease in freight demand is for an extended period of time; the risk that we will be unable to obtain the improvements in freight yields that we expect regardless of freight volumes; further increases in the compensation of or difficulty in attracting and retaining qualified drivers and independent contractors; further fluctuations in the price or availability of diesel fuel or in surcharge collection; recessionary economic cycles and downturns in customers' business cycles; excess tractor or trailer capacity in the trucking industry; decreased demand for our services or loss of one or more of our major customers; surplus inventories; strikes, work slow downs, or work stoppages at our facilities or at customers, ports, or other shipping related facilities; increases in interest rates, fuel taxes, tolls, and license and registration fees; increases in the prices paid for new revenue equipment and changes in the resale value of our used equipment; elevated experience in the frequency and severity of claims relating to accident, cargo, workers' compensation, health, and other claims; increased insurance premiums; fluctuations in claims expenses that result from high self-insured retention amounts and differences between estimates used in establishing and adjusting claims reserves and actual results over time; adverse changes in claims experience and loss development factors; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, and intermodal competitors; regulatory requirements that increase costs or decrease efficiency, including revised hours-of-service requirements for drivers and new emissions control regulations; our ability to execute our business strategy; our ability to grow our revenue at historical rates; the loss of one of our senior officers; our ability to finance revenue equipment purchases and other capital requirements, and to do so on acceptable terms; the risk that our substantial indebtedness and operating lease obligations could adversely impact our ability to respond to changes in our industry or business, or that we could be unable to comply with the restrictive and financial covenants contained therein; the risk that railroad service instability could increase our costs and reduce our ability to offer expedited intermodal rail service; the risk of adverse results at Arnold Transportation or Total Transportation of Mississippi that are included in our results; our ability to identify acceptable acquisition candidates, consummate acquisitions, and integrate acquired operations; the number of shares repurchased, if any; and the effects of repurchasing the shares on debt, equity, and liquidity; Readers should review and consider these factors along with our various disclosures in filings with the Securities and Exchange Commission. We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information. U.S. XPRESS ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Data) (Unaudited) � Three Months Ended Nine Months Ended September 30, September 30, � 2006� � 2005� � 2006� � 2005� Operating Revenue: Revenue, before fuel surcharge $ 334,815� $ 262,623� $ 929,257� $ 763,605� Fuel surcharge � 61,768� � 34,617� � 156,497� � 82,663� Total operating revenue $ 396,583� $ 297,240� $ 1,085,754� $ 846,268� � Operating Expenses: Salaries, wages and benefits 129,700� 100,756� 359,695� 295,928� Fuel and fuel taxes 90,395� 60,680� 245,928� 161,790� Vehicle rents 18,441� 17,140� 56,172� 51,608� Depreciation and amortization, net of gain on sale 16,123� 12,015� 43,792� 34,545� Purchased transportation 62,287� 49,041� 170,556� 147,130� Operating expense and supplies 25,166� 18,524� 69,267� 57,048� Insurance premiums and claims 16,556� 12,756� 46,109� 34,329� Operating taxes and licenses 4,338� 3,614� 12,329� 10,348� Communications and utilities 3,313� 2,600� 9,791� 8,203� General and other operating 10,853� 10,625� 32,016� 33,492� Loss on sale and exit of business � 177� � -� � 577� � 2,787� Total operating expenses � 377,349� � 287,751� � 1,046,232� � 837,208� � Income from Operations 19,234� 9,489� 39,522� 9,060� � Interest Expense, net 4,977� 2,071� 12,766� 5,856� Early extinguishment of debt -� -� -� 201� Equity in (income) loss of affiliated companies (132) (557) 427� (1,808) Minority Interest � 508� � -� � 1,011� � -� 5,353� 1,514� 14,204� 4,249� � Income Before Income Taxes 13,881� 7,975� 25,318� 4,811� � Income Tax Provision � 6,609� � 3,976� � 11,587� � 2,457� � Net Income $ 7,272� $ 3,999� $ 13,731� $ 2,354� � Earnings Per Share - basic $ 0.47� $ 0.25� $ 0.90� $ 0.15� � Weighted average shares - basic � 15,314� � 15,908� � 15,320� � 16,117� � Earnings Per Share - diluted $ 0.47� $ 0.25� $ 0.88� $ 0.14� � Weighted average shares - diluted � 15,595� � 15,983� � 15,574� � 16,286� U.S. XPRESS ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Data - Net of Fuel Surcharge Revenue) (Unaudited) � � Three Months Ended Nine Months Ended September 30, � September 30, � 2006� � 2005� � 2006� � 2005� � � Operating Revenue 100.0� % 100.0� % 100.0� % 100.0� % � Operating Expenses: Salaries, wages and benefits 38.8� 38.3� 38.6� 38.7� Fuel and fuel taxes 8.6� 9.9� 9.6� 10.3� Vehicle rents 5.5� 6.5� 6.0� 6.7� Depreciation and amortization, net of gain on sale 4.8� 4.6� 4.7� 4.5� Purchased transportation 18.6� 18.7� 18.4� 19.3� Operating expense and supplies 7.5� 7.1� 7.5� 7.5� Insurance premiums and claims 4.9� 4.9� 5.0� 4.5� Operating taxes and licenses 1.3� 1.4� 1.3� 1.4� Communications and utilities 1.0� 1.0� 1.1� 1.1� General and other operating 3.2� 4.0� 3.4� 4.4� Loss on sale and exit of business 0.1� 0.0� 0.1� 0.4� Total operating expenses 94.3� 96.4� 95.7� 98.8� � Income from Operations 5.7� 3.6� 4.3� 1.2� � � Interest Expense, net 1.5� 0.8� 1.4� 0.8� Early extinguishment of debt 0.0� 0.0� 0.0� 0.0� Equity in income of affiliated companies 0.0� (0.2) 0.1� (0.2) Minority Intererst 0.1� 0.0� 0.1� 0.0� 1.6� 0.6� 1.6� 0.6� � Income Before Income Taxes 4.1� 3.0� 2.7� 0.6� � Income Tax Provision 2.0� 1.5� 1.2� 0.3� � Net Income 2.1� % 1.5� % 1.5� % 0.3� % U.S. XPRESS ENTERPRISES, INC. KEY OPERATING FACTORS � Three Months Ended September 30, Nine Months Ended September 30, % % � 2006� � 2005� Change � 2006� � 2005� Change OPERATING RATIO (1) 94.3% 96.4% -2.3% 95.7% 98.8% -3.1% � OPERATING REVENUE: Truckload, net of fuel surcharge (2) $ 311,963� $ 241,147� 29.4% $ 861,185� $ 678,695� 26.9% Fuel Surcharge 61,768� 34,617� 78.4% 156,497� 82,663� 89.3% Xpress Global Systems 24,122� 24,069� 0.2% 72,162� 102,927� -29.9% Inter-company � (1,270) � (2,593) -51.0% � (4,090) � (18,017) -77.3% Total Operating Revenue $ 396,583� $ 297,240� 33.4% $ 1,085,754� $ 846,268� 28.3% � OPERATING INCOME (LOSS): Truckload (2) $ 17,736� $ 11,700� 51.6% $ 35,961� $ 20,360� 76.6% Xpress Global Systems � 1,498� � (2,211) n/a� � 3,561� � (11,300) n/a� Total Operating Income $ 19,234� $ 9,489� 102.7% $ 39,522� $ 9,060� 336.2% � TRUCKLOAD STATISTICS: (2) Revenue Per Mile (3) $ 1.650� $ 1.641� 0.5% $ 1.608� $ 1.547� 3.9% � Revenue Per Total Mile (3) $ 1.451� $ 1.455� -0.3% $ 1.415� $ 1.376� 2.8% � Tractors (at end of period)- Company Owned 6,453� 4,658� 38.5% 6,453� 4,658� 38.5% Owner Operators � 951� � 524� 81.5% � 951� � 524� 81.5% Total Tractors (at end of period) 7,404� 5,182� 42.9% 7,404� 5,182� 42.9% � Average Number of Tractors in Fleet During Period 7,245� 5,113� 41.7% 6,612� 5,034� 31.3% � Average Revenue Miles Per Tractor Per Period (3)(4) 23,566� 24,495� -3.8% 72,282� 74,438� -2.9% � Average Revenue Per Tractor Per Period (3)(4) $ 39,611� $ 41,725� -5.1% $ 118,768� $ 118,890� -0.1% � Total Revenue Miles (5) 188,096� 144,809� 29.9% 530,830� 432,375� 22.8% � Total Miles (5) 213,921� 163,289� 31.0% 603,228� 486,227� 24.1% � Average Length of Haul 585� 671� -12.8% 584� 673� -13.2% � Empty Mile Percentage 12.07% 11.32% 6.6% 12.00% 11.07% 8.4% � � September 30, 2006 December 31, 2005 BALANCE SHEET DATA: Total Assets $ 851,753� $ 607,384� Total Equity 245,305� 232,412� Long-term Debt, including 329,160� 177,155� Current Maturities and Securitization � � (1) Operating ratio as reported in this press release is based upon total operating expenses, net of fuel surcharges, as a percentage of revenue, before fuel surcharge. (2) Data for truckload includes data for all truckload operations, including the following from their dates of consolidation: Arnold Transportation, Inc. and Total Transportation of Mississippi, Inc. in March 2006. (3) Net of fuel surcharge revenues. (4) Excludes revenue and miles from expedited intermodal rail services. (5) Includes miles of expedited intermodal rail services. U.S. Xpress Enterprises, Inc. (NASDAQ:XPRSA) today announced operating revenue and earnings for the third quarter and nine months ended September 30, 2006. Financial Highlights Revenue for the third quarter of 2006 increased 33.4% to $396.6 million compared with $297.2 million in the third quarter of 2005. Net income for the third quarter increased 81.9% to $7.3 million, or $0.47 per diluted share, compared with net income of $4.0 million, or $0.25 per diluted share in the prior-year period. For the nine months ended September 30, 2006, revenue increased 28.3% to $1.09 billion from $846.3 million in the prior-year period. For the first nine months of 2006, the Company reported net income of $13.7 million, or $0.88 per diluted share, compared with net income, before a one-time pre-tax charge of $2.8 million related to the sale and exit of the Company's airport-to-airport business, of $3.8 million, or $0.24 per diluted share, for the prior-year period. After the one-time charge, the Company reported net income of $2.4 million, or $0.24 per diluted share for the nine months ended September 30, 2005. On February 28, 2006, the Company acquired additional equity in both Arnold Transportation and Total Transportation, increasing its ownership interest in each to 80% from 49%. Accordingly, the financial results of Arnold and Total from February 28, 2006, are included in the Company's consolidated financial statements. Consolidated revenue, excluding fuel surcharges, and operating income for the third quarter of 2006 includes $76.8 million of revenue and $6.6 million in operating income of Arnold and Total. Results for the nine months ended September 30, 2006, include $184.2 million of revenue and $13.2 million in operating income of Arnold and Total. Truckload Operations During the third quarter, truckload revenue, excluding the effect of fuel surcharges, increased 29.4% to $312.0 million from $241.1 million a year ago while truckload operating income increased 51.6% to $17.7 million from $11.7 million in the third quarter of 2005. These increases were primarily driven by the contributions of Arnold and Total. Co-Chairman, Patrick Quinn, stated, "Despite weakness in the freight market and spot market pricing relative to last year, we achieved significant improvements in our truckload operating margins on both a year-over-year and sequential 2006 quarterly basis. We believe these results demonstrate the progress we have made in improving the performance of our base truckload business. The less than one percent increase in our rate per revenue mile reflects the soft spot market experienced in the third quarter of 2006 compared to the prior-year quarter, which was significantly impacted by tight truckload capacity after the hurricanes during the third quarter of 2005. All of our truckload operations have achieved meaningful year-over-year rate increases on their base contractual business. "The driver recruiting market remains very difficult. However, due in part to improvements in our driver turnover, our seated tractors grew sequentially from the end of the second quarter of 2006 by approximately 250 tractors. The average age of our tractor fleet continues to decline in advance of the introduction of the new higher cost and less efficient engines mandated by federal regulations beginning in 2007. Given our current delivery schedule of new tractors, we expect the average age of our tractor fleet equipped with pre-2007 emission engine to approach 1.5 years in the first quarter of 2007." Xpress Global Systems Revenue of Xpress Global Systems was essentially flat at $24.1 million for the quarters ended September 30, 2006 and 2005. Xpress Global Systems' operating income for the third quarter was $1.5 million compared with an operating loss of $2.2 million in the prior-year quarter. The significant improvement in operating income reflects the improvement the Company has achieved in on-time customer service, pricing and yield management, operational efficiencies and reduced overhead expenditures. Co-Chairman Max Fuller stated, "We are pleased that the contributions to earnings of Arnold and Total, the improvements achieved in the base U.S. Xpress truckload business and the sustained turnaround at Xpress Global resulted in a new record for quarterly earnings per share. We believe the diversification of our truckload business and operational improvements we have accomplished in recent years has made us less dependent on a strong freight and spot pricing market to achieve improved operating results. "Consistent with other published reports, freight demand in October is softer than what we experienced in October of last year while spot pricing remains depressed. Further, we have not experienced the normal seasonal improvement in freight demand to the degree we would have expected by this time in the quarter. However, we believe we are much better positioned today than we were a year ago to generate improved yields from our base business and minimize the impact of a potentially softer year-over-year freight market in the fourth quarter." Conference Call and Webcast U.S. Xpress Enterprises will host a conference call to discuss third quarter results on Tuesday, October 24, 2006, at 10:00 a.m. ET. The number to call for this interactive teleconference is (303) 262-2140. A replay of the conference call will be available through October 31, 2006, by dialing (303) 590-3000 and entering the confirmation number, 11074092#. The live broadcast of U.S. Xpress Enterprises' quarterly conference call will be available online beginning at 10:00 a.m. ET on October 24, 2006, at the Company's website, www.usxpress.com, and at http://www.videonewswire.com/event.asp?id=36191&regd=n on October 24, 2006. The online replay will follow shortly after the call and continue through November 24, 2006. U.S. Xpress Enterprises, Inc. U.S. Xpress Enterprises, Inc. is the fifth largest publicly owned truckload carrier in the United States, measured by revenue. The Company provides dedicated, regional, and expedited team truckload services throughout North America, with regional capabilities in the West, Midwest, and Southeastern United States. The Company is one of the largest providers of expedited and time-definite services in the truckload industry and is a leader in providing expedited intermodal rail services. Xpress Global Systems, Inc., a wholly owned subsidiary, is a provider of transportation, warehousing, and distribution services to the floor covering industry. The Company participates in logistics services through its joint ownership of Transplace, an Internet-based global transportation logistics company. U.S. Xpress has an 80% ownership interest in Arnold Transportation Services, Inc., which provides regional, dedicated, and medium length-of-haul services with a fleet of approximately 1,500 trucks, and Total Transportation of Mississippi and affiliated companies, a truckload carrier that provides medium length of haul and dedicated dry-van service with a fleet of approximately 500 trucks primarily in the Eastern United States. Additionally, U.S. Xpress has a 49% ownership interest in Abilene Motor Express, Inc., a truckload carrier that provides medium length of haul and dedicated dry van truck services, primarily in the eastern United States with a fleet of approximately 170 trucks. Please visit the Company's website at www.usxpress.com. This press release contains certain statements that may be considered "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements generally may be identified by their use of terms or phrases such as "expects," "estimates," "anticipates," "projects," "believes," "plans," "intends," "may," "will," "should," "could," "potential," "continue," "future," and terms or phrases of similar substance. In this press release, these statements include, without limitation, statements relating to freight demand, competition for drivers, tractor fleet age, improvements in the performance of truckload and Xpress Global operations, and the company's ability to generate improved yields and withstand decreases in freight volumes. The following factors, among others, could cause actual results to differ materially from those expressed in forward-looking statements: the risk that freight demand decreases further than we expect or that any decrease in freight demand is for an extended period of time; the risk that we will be unable to obtain the improvements in freight yields that we expect regardless of freight volumes; further increases in the compensation of or difficulty in attracting and retaining qualified drivers and independent contractors; further fluctuations in the price or availability of diesel fuel or in surcharge collection; recessionary economic cycles and downturns in customers' business cycles; excess tractor or trailer capacity in the trucking industry; decreased demand for our services or loss of one or more of our major customers; surplus inventories; strikes, work slow downs, or work stoppages at our facilities or at customers, ports, or other shipping related facilities; increases in interest rates, fuel taxes, tolls, and license and registration fees; increases in the prices paid for new revenue equipment and changes in the resale value of our used equipment; elevated experience in the frequency and severity of claims relating to accident, cargo, workers' compensation, health, and other claims; increased insurance premiums; fluctuations in claims expenses that result from high self-insured retention amounts and differences between estimates used in establishing and adjusting claims reserves and actual results over time; adverse changes in claims experience and loss development factors; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, and intermodal competitors; regulatory requirements that increase costs or decrease efficiency, including revised hours-of-service requirements for drivers and new emissions control regulations; our ability to execute our business strategy; our ability to grow our revenue at historical rates; the loss of one of our senior officers; our ability to finance revenue equipment purchases and other capital requirements, and to do so on acceptable terms; the risk that our substantial indebtedness and operating lease obligations could adversely impact our ability to respond to changes in our industry or business, or that we could be unable to comply with the restrictive and financial covenants contained therein; the risk that railroad service instability could increase our costs and reduce our ability to offer expedited intermodal rail service; the risk of adverse results at Arnold Transportation or Total Transportation of Mississippi that are included in our results; our ability to identify acceptable acquisition candidates, consummate acquisitions, and integrate acquired operations; the number of shares repurchased, if any; and the effects of repurchasing the shares on debt, equity, and liquidity; Readers should review and consider these factors along with our various disclosures in filings with the Securities and Exchange Commission. We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information. -0- *T U.S. XPRESS ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------------- --------------------- 2006 2005 2006 2005 --------- --------- ----------- --------- Operating Revenue: Revenue, before fuel surcharge $334,815 $262,623 $ 929,257 $763,605 Fuel surcharge 61,768 34,617 156,497 82,663 --------- --------- ----------- --------- Total operating revenue $396,583 $297,240 $1,085,754 $846,268 Operating Expenses: Salaries, wages and benefits 129,700 100,756 359,695 295,928 Fuel and fuel taxes 90,395 60,680 245,928 161,790 Vehicle rents 18,441 17,140 56,172 51,608 Depreciation and amortization, net of gain on sale 16,123 12,015 43,792 34,545 Purchased transportation 62,287 49,041 170,556 147,130 Operating expense and supplies 25,166 18,524 69,267 57,048 Insurance premiums and claims 16,556 12,756 46,109 34,329 Operating taxes and licenses 4,338 3,614 12,329 10,348 Communications and utilities 3,313 2,600 9,791 8,203 General and other operating 10,853 10,625 32,016 33,492 Loss on sale and exit of business 177 - 577 2,787 --------- --------- ----------- --------- Total operating expenses 377,349 287,751 1,046,232 837,208 --------- --------- ----------- --------- Income from Operations 19,234 9,489 39,522 9,060 Interest Expense, net 4,977 2,071 12,766 5,856 Early extinguishment of debt - - - 201 Equity in (income) loss of affiliated companies (132) (557) 427 (1,808) Minority Interest 508 - 1,011 - --------- --------- ----------- --------- 5,353 1,514 14,204 4,249 Income Before Income Taxes 13,881 7,975 25,318 4,811 Income Tax Provision 6,609 3,976 11,587 2,457 --------- --------- ----------- --------- Net Income $ 7,272 $ 3,999 $ 13,731 $ 2,354 ========= ========= =========== ========= Earnings Per Share - basic $ 0.47 $ 0.25 $ 0.90 $ 0.15 ========= ========= =========== ========= Weighted average shares - basic 15,314 15,908 15,320 16,117 ========= ========= =========== ========= Earnings Per Share - diluted $ 0.47 $ 0.25 $ 0.88 $ 0.14 ========= ========= =========== ========= Weighted average shares - diluted 15,595 15,983 15,574 16,286 ========= ========= =========== ========= *T -0- *T U.S. XPRESS ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Data - Net of Fuel Surcharge Revenue) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------------- ------------------ 2006 2005 2006 2005 ----------- ------- ---------- ------- Operating Revenue 100.0 % 100.0 % 100.0 % 100.0 % ---------- ------ --------- ------ Operating Expenses: Salaries, wages and benefits 38.8 38.3 38.6 38.7 Fuel and fuel taxes 8.6 9.9 9.6 10.3 Vehicle rents 5.5 6.5 6.0 6.7 Depreciation and amortization, net of gain on sale 4.8 4.6 4.7 4.5 Purchased transportation 18.6 18.7 18.4 19.3 Operating expense and supplies 7.5 7.1 7.5 7.5 Insurance premiums and claims 4.9 4.9 5.0 4.5 Operating taxes and licenses 1.3 1.4 1.3 1.4 Communications and utilities 1.0 1.0 1.1 1.1 General and other operating 3.2 4.0 3.4 4.4 Loss on sale and exit of business 0.1 0.0 0.1 0.4 ---------- ------ --------- ------ Total operating expenses 94.3 96.4 95.7 98.8 ---------- ------ --------- ------ Income from Operations 5.7 3.6 4.3 1.2 Interest Expense, net 1.5 0.8 1.4 0.8 Early extinguishment of debt 0.0 0.0 0.0 0.0 Equity in income of affiliated companies 0.0 (0.2) 0.1 (0.2) Minority Intererst 0.1 0.0 0.1 0.0 ---------- ------ --------- ------ 1.6 0.6 1.6 0.6 Income Before Income Taxes 4.1 3.0 2.7 0.6 Income Tax Provision 2.0 1.5 1.2 0.3 ---------- ------ --------- ------ Net Income 2.1 % 1.5 % 1.5 % 0.3 % ========== ====== ========= ====== *T -0- *T U.S. XPRESS ENTERPRISES, INC. KEY OPERATING FACTORS Three Months Ended Nine Months Ended September 30, % September 30, % ------------------- --------------------- 2006 2005 Change 2006 2005 Change --------- --------- ------ ----------- --------- ------ OPERATING RATIO (1) 94.3% 96.4% -2.3% 95.7% 98.8% -3.1% OPERATING REVENUE: Truckload, net of fuel surcharge (2) $311,963 $241,147 29.4% $ 861,185 $678,695 26.9% Fuel Surcharge 61,768 34,617 78.4% 156,497 82,663 89.3% Xpress Global Systems 24,122 24,069 0.2% 72,162 102,927 -29.9% Inter- company (1,270) (2,593) -51.0% (4,090) (18,017) -77.3% --------- --------- ------ ----------- --------- ------ Total Operating Revenue $396,583 $297,240 33.4% $1,085,754 $846,268 28.3% OPERATING INCOME (LOSS): Truckload (2) $ 17,736 $ 11,700 51.6% $ 35,961 $ 20,360 76.6% Xpress Global Systems 1,498 (2,211) n/a 3,561 (11,300) n/a --------- --------- ------ ----------- --------- ------ Total Operating Income $ 19,234 $ 9,489 102.7% $ 39,522 $ 9,060 336.2% TRUCKLOAD STATISTICS: (2) Revenue Per Mile (3) $ 1.650 $ 1.641 0.5% $ 1.608 $ 1.547 3.9% Revenue Per Total Mile (3) $ 1.451 $ 1.455 -0.3% $ 1.415 $ 1.376 2.8% Tractors (at end of period)- Company Owned 6,453 4,658 38.5% 6,453 4,658 38.5% Owner Operators 951 524 81.5% 951 524 81.5% --------- --------- ------ ----------- --------- ------ Total Tractors (at end of period) 7,404 5,182 42.9% 7,404 5,182 42.9% Average Number of Tractors in Fleet During Period 7,245 5,113 41.7% 6,612 5,034 31.3% Average Revenue Miles Per Tractor Per Period (3)(4) 23,566 24,495 -3.8% 72,282 74,438 -2.9% Average Revenue Per Tractor Per Period (3)(4) $ 39,611 $ 41,725 -5.1% $ 118,768 $118,890 -0.1% Total Revenue Miles (5) 188,096 144,809 29.9% 530,830 432,375 22.8% Total Miles (5) 213,921 163,289 31.0% 603,228 486,227 24.1% Average Length of Haul 585 671 -12.8% 584 673 -13.2% Empty Mile Percentage 12.07% 11.32% 6.6% 12.00% 11.07% 8.4% September 30, 2006 December 31, 2005 ------------------- --------------------- BALANCE SHEET DATA: Total Assets $851,753 $607,384 Total Equity 245,305 232,412 Long-term Debt, including 329,160 177,155 Current Maturities and Securitization (1) Operating ratio as reported in this press release is based upon total operating expenses, net of fuel surcharges, as a percentage of revenue, before fuel surcharge. (2) Data for truckload includes data for all truckload operations, including the following from their dates of consolidation: Arnold Transportation, Inc. and Total Transportation of Mississippi, Inc. in March 2006. (3) Net of fuel surcharge revenues. (4) Excludes revenue and miles from expedited intermodal rail services. (5) Includes miles of expedited intermodal rail services. *T