USA Truck (NASDAQ: USAK) reported Q3 EPS of ($0.13), $0.16 worse than the analyst estimate of $0.03. Revenue for the quarter came in at $93.6 million versus the consensus estimate of $129.6 million.

• 3Q 2019 loss per diluted share of ($0.16) versus 3Q 2018 earnings per diluted share of $0.40
• 3Q 2019 adjusted loss per diluted share(a) of ($0.13) when adjusted for acquisition related intangible amortization versus 3Q 2018 adjusted earnings per diluted share(a) of $0.43
• 3Q 2019 Trucking operating revenue increased 7.8% to $93.6 million from $86.8 million in 3Q 2018

President and CEO James Reed commented, "The third quarter marked a continuation of the challenging freight environment the industry has experienced in 2019. A seasonally soft market, coupled with increased trucking capacity in the market has created an environment where shippers are motivated to allocate a larger portion of their freight to the spot market and low priced carrier options. This environment continues to adversely impact results in both our Trucking and USAT Logistics segments.

We have instituted measures aimed at stabilizing our operational and financial performance for the remainder of 2019 and to set the stage for further improvements in 2020. These measures include:

• Eliminate 5-10% of fixed costs across all departments. We have implemented approximately $5.6 million in annualized cost savings in 2019, with additional areas under review.
• Increase actualization of bid awards. We have implemented bid award tracking procedures to more closely monitor customer commitments at the lane level. This has enabled us to identify customer-specific opportunities and impact freight realization.
• Expand our terminal footprint to enhance alignment with our improving network. The goal of this terminal expansion is to drive further reductions in outside repair costs throughout our network, in addition to offering more accessible amenities to our drivers. We recently entered into a lease agreement to open a terminal in Carlisle, PA that will provide tractor and trailer repairs, as well as provide driver amenities. We have also opened maintenance facilities in South Holland, IL and Atlanta, GA, and are making improvements to driver amenities in several other terminals across the network.
• Add salesforce in USAT Logistics to increase volume. We added 11 personnel to the logistics salesforce to broaden our sales pipeline and extend our customer reach at a time when freight volumes are critical.

We continue to implement the tenets of our long-term strategy outlined at our Investor Day Conference in May of this year: increasing revenue per truck, utilization improvement, cost control, unpaid mile reduction, and increasing the USAT Logistics share of our overall revenue. We remain vigilant in making the necessary structural changes required to realize the Company’s long-term strategy outlined in that meeting, and are making progress in closing the gap to our key competitors. Despite our challenges, we continue to be energized by the responsiveness of our team. They battle the myriad of challenges presented in the current freight environment every day and we strongly believe our quest for change will continue to transform USA Truck into a world-class service provider.”

For earnings history and earnings-related data on USA Truck (USAK) click here.