EX-99.1
6
exhibit99_1.htm
Contact:
Ray Harlin
Chief Financial Officer
423-510-3323
U.S. XPRESS ENTERPRISES INCREASES EQUITY INTEREST IN
ARNOLD TRANSPORTATION AND TOTAL TRANSPORTATION
CHATTANOOGA, Tenn. (February 28, 2006) - U.S. Xpress Enterprises, Inc. (NASDAQ/NM: XPRSA) announced today it has completed the acquisition of additional equity in both Arnold Transportation Services Inc. ("Arnold") and Total Transportation of Mississippi and affiliated companies ("Total"), increasing its ownership interest in each to 80% from 49%, for a total of approximately $7.9 million in cash. U.S. Xpress had previously announced reaching agreements in principle for these acquisitions on February 13, 2006.
As previously disclosed, for 2005, Arnold and Total contributed $2.8 million of equity in earnings for U.S. Xpress, reported combined revenue of $317.0 million, combined net income of approximately $5.7 million and achieved an operating ratio of approximately 94.7%. U.S. Xpress will account for the operations of both companies on a consolidated basis. As a result, commencing March 1, 2006, both the combined net income and existing debt of Arnold and Total will be consolidated into U.S. Xpress' income statement and balance sheet. Had the transactions occurred as of December 31, 2005, U.S. Xpress' total debt outstanding, including current maturities, would have increased from $177.2 million to approximately $308 million. Considering the historical and expected cash flows of Arnold and Total, U.S. Xpress' consolidated fixed-charge coverage and senior-leverage ratios are expected to remain well within the
limits of the U.S. Xpress' primary credit agreement.
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. Please visit the Company's website at www.usxpress.com.
Arnold Transportation Services, Inc. is a privately held dry van truckload carrier headquartered in Jacksonville, Florida, and offers regional, dedicated and medium length of haul service with a fleet of approximately 1,500 trucks primarily in the Northeast, Southeast, and Southwest United States.
-
MORE
-
4080 Jenkins Road, Chattanooga, TN 37421
423.510.3000
XPRSA Increases Equity Interest in Arnold Transportation and Total Transportation
Page 2
February 28, 2006
Total Transportation of Mississippi and affiliated companies is 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. TTMS principal operating centers are in Jackson, Mississippi; Memphis, Tennessee; Knoxville, Tennessee; and Tupelo, Mississippi.
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 anticipated financial ratios under the U.S. Xpress primary credit agreement. The following factors, among others, could cause actual results to differ materially from those expressed in forward-looking statements: the risk that we will be unable to obtain the level of rate increases and improvement
in freight mix that we expect regardless of increased freight volumes; the risk that our perception of industry fundamentals is incorrect and an improvement in freight volumes and pricing does not occur; the risk that the actions we have taken to increase margins and reduce costs in our Xpress Global segment will not be effective; 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.
-END-

EX - 99 . 1 6 exhibit99 _ 1 . htm Contact : Ray Harlin Chief Financial Officer 423 - 510 - 3323 U . S . XPRESS ENTERPRISES INCREASES EQUITY INTEREST IN ARNOLD TRANSPORTATION AND TOTAL TRANSPORTATION CHATTANOOGA , Tenn . ( February 28 , 2006 ) - U . S . Xpress Enterprises , Inc . ( NASDAQ / NM : XPRSA ) announced today it has completed the acquisition of additional equity in both Arnold Transportation Services Inc . ( " Arnold " ) and Total Transportation of Mississippi and affiliated companies ( " Total " ) , increasing its ownership interest in each to 80 % from 49 % , for a total of approximately $ 7.9 million in cash . U . S . Xpress had previously announced reaching agreements in principle for these acquisitions on February 13 , 2006 . As previously disclosed , for 2005 , Arnold and Total contributed $ 2.8 million of equity in earnings for U . S . Xpress , reported combined revenue of $ 317.0 million , combined net income of approximately $ 5.7 million and achieved an operating ratio of approximately 94 . 7 % . U . S . Xpress will account for the operations of both companies on a consolidated basis . As a result , commencing March 1 , 2006 , both the combined net income and existing debt of Arnold and Total will be consolidated into U . S . Xpress ' income statement and balance sheet . Had the transactions occurred as of December 31 , 2005 , U . S . Xpress ' total debt outstanding , including current maturities , would have increased from $ 177.2 million to approximately $ 308 million . Considering the historical and expected cash flows of Arnold and Total , U . S . Xpress ' consolidated fixed - charge coverage and senior - leverage ratios are expected to remain well within the limits of the U . S . Xpress ' primary credit agreement . 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 . Please visit the Company 's website at www.usxpress.com . Arnold Transportation Services , Inc . is a privately held dry van truckload carrier headquartered in Jacksonville , Florida , and offers regional , dedicated and medium length of haul service with a fleet of approximately 1,500 trucks primarily in the Northeast , Southeast , and Southwest United States . - MORE - 4080 Jenkins Road , Chattanooga , TN 37421 423 . 510 . 3000 XPRSA Increases Equity Interest in Arnold Transportation and Total Transportation Page 2 February 28 , 2006 Total Transportation of Mississippi and affiliated companies is 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 . TTMS principal operating centers are in Jackson , Mississippi ; Memphis , Tennessee ; Knoxville , Tennessee ; and Tupelo , Mississippi . 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 anticipated financial ratios under the U . S . Xpress primary credit agreement . The following factors , among others , could cause actual results to differ materially from those expressed in forward - looking statements : the risk that we will be unable to obtain the level of rate increases and improvement in freight mix that we expect regardless of increased freight volumes ; the risk that our perception of industry fundamentals is incorrect and an improvement in freight volumes and pricing does not occur ; the risk that the actions we have taken to increase margins and reduce costs in our Xpress Global segment will not be effective ; 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 . - END -
O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY O O O O O O O O O O O O O O O O O O O B-Parties.ACQUIRED_COMPANY I-Parties.ACQUIRED_COMPANY I-Parties.ACQUIRED_COMPANY I-Parties.ACQUIRED_COMPANY I-Parties.ACQUIRED_COMPANY O O O O O O B-Parties.ACQUIRED_COMPANY I-Parties.ACQUIRED_COMPANY O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B-Generic_Info.ANNUAL_REVENUES I-Generic_Info.ANNUAL_REVENUES O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B-Parties.BUYING_COMPANY O O O O B-Parties.ACQUIRED_COMPANY I-Parties.ACQUIRED_COMPANY O B-Parties.ACQUIRED_COMPANY I-Parties.ACQUIRED_COMPANY O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O