U.S. Xpress Enterprises Inc. has announced that it will revise its accounting for a non-cash charge previously recognized in the first quarter of 2002 for a write-off related to interest rate swap agreements, which ceased to qualify as cash flow hedges in connection with the first-quarter refinancing of its credit facility.
The accounting revision will increase first-quarter 2002 earnings per share by four cents and year-to-date earnings per share by two cents, while decreasing second-quarter 2002 earnings per share by two cents. The second-half 2002 earnings per share will be negatively impacted by approximately two cents per share.
"We want to emphasize that the change relates solely to a revision in the application of generally accepted accounting principles for this non-cash charge, and there were no accounting improprieties," said CFO Ray Harlin. "Moreover, it does not in any way affect our cash position or our operations."