The carrier said it lost $895,000 in the first quarter of 2002 as it took a $1 million non-cash charge to account for interest rate changes of its line of credit. Then U.S. Xpress incurred another $1.1 million charge to retire debt early as it activated a new $100 million five-year line of credit.
U.S. Xpress co-chairman Max Fuller said he retains an optimistic outlook for the rest of 2002, due in part to rapidly recovering business conditions.
"We posted improved operating results in both our U.S. Xpress and CSI/Crown operations during what continued to be a difficult operating environment for the truckload industry," he said. Growth in dedicated contract services and a rate increase boosted truckload revenue by 6%, excluding fuel surcharges, he added.
U.S. Xpress's subsidiary CSI/Crown saw a 72% increase in revenues during the quarter driven by strong demand in its floor-covering logistics business and airport-to-airport transportation services, Fuller said.
Chattanooga, TN-based U.S. Xpress also plans to expand its tractor fleet by 5.3%, primarily through contracts with owner-operators, as a result of higher demand for regional and dedicated truckload business.
