Usa Truck's Business Segments
Usa Truck's reported revenue by business segment and by geographic region, quarterly and annual, normalized against the consolidated income statement. Free below: the top 3 rows per table, this quarter and this fiscal year. Subscriber access adds the full segment history and operating income by segment.
Revenue Share by Reportable Segment - Q2 FY2022
- Trucking60.6%
- USAT Logistics42.7%
Revenue by Reportable Segment - Q2 FY2022
| Segment | Revenue (Millions) | % of Total |
|---|---|---|
| Trucking | $ 123 | 60.6% |
| USAT Logistics | $ 86 | 42.7% |
Revenue by Product & Service Category - Q2 FY2022
- Freight35.7%
- Fuel Surcharge6.3%
- Accessorial0.7%
Revenue by Product & Service Category - Q2 FY2022
| Category | Revenue (Millions) | % of Total |
|---|---|---|
| Freight | $ 72 | 35.7% |
| Fuel Surcharge | $ 13 | 6.3% |
| Accessorial | $ 1 | 0.7% |
Product and service categories are a supplemental disclosure and are not required to sum to consolidated revenue or to the reportable segments above.
Description of Usa Truck
The Company transports commodities throughout the continental United States
and into and out of portions of Canada. USA Truck also transports general commodities
into and out of Mexico by allowing through-trailer service from its terminal
in Laredo, Texas. In addition to truckload services, the Company provides freight
brokerage and rail intermodal services through its Strategic Capacity Solutions
(“SCS”) segment. USA Truck is headquartered in Van Buren, Arkansas,
with terminals, offices, and staging facilities located throughout the United
States.
The Company has two reportable segments: (i) trucking, consisting of the Company’s truckload and dedicated freight service offerings and (ii) SCS, consisting of the Company’s freight brokerage and rail intermodal service offerings. Based on several factors, including the relatively small size of the Company’s rail intermodal service offering and the interrelationship of the freight brokerage and rail intermodal operations, the Company aggregates its freight brokerage and rail intermodal service offerings into a single reportable segment.
Truckload freight services utilize company-owned equipment or equipment owned by independent contractors for the pick-up and delivery of freight. Truckload services transport freight over irregular routes as a medium-to long-haul common carrier. Dedicated freight services provide similar transportation services, but do so pursuant to agreements whereby the Company makes equipment available to a specific customer for shipments over particular routes at specified times.
SCS is intended to provide services which complement USA Truck’s trucking
services, primarily to existing customers of its trucking segment. A majority
of customers using the Company’s SCS services are also customers of its
trucking segment.
The Company focuses significant marketing efforts on customers with premium service requirements and who have consistent shipping needs within USA Truck’s primary operating areas which are primarily in the eastern half of the United States. One or more offerings are marketed to customers, with over 90% of the Company’s top 100 customers utilizing more than one service. This permits the strategic positioning of available equipment and allows the Company to provide its customers with a full array of transportation solutions. In addition, USA Truck team members have cultivated a thorough understanding of the needs of shippers in key industries. The Company believes this helps it develop long-term, service-oriented relationships and allows the Company to provide its customers a full array of transportation solutions.
The Company primarily operates in the United States and also has operations in Mexico and Canada. Most of the Company’s operating revenue is generated from within the United States.
Segment 1: Trucking
The trucking segment is a core component of USA Trucks operations, which can be further categorized into two main service offerings: truckload and dedicated freight services.
1. Truckload Services:
- USA Truck provides comprehensive truckload services for shippers needing large quantities of freight transported. This includes the full range of cargo, from raw materials to finished goods.
- The company utilizes a dedicated fleet of tractors and trailers to move freight efficiently across long-distance routes. This service is flexible, allowing customers to quickly scale up or down based on their shipping needs.
2. Dedicated Freight Services:
- Dedicated services involve providing a specific truck and driver committed to serving a single customer on an ongoing basis. This allows for tailored solutions that enhance delivery schedules, reliability, and responsiveness to unique shipping requirements.
Operational Support:
The trucking segment is supported by specialized teams:
- Driver Managers: Responsible for overseeing the drivers, they serve as the main point of contact, ensuring drivers adhere to schedules and safety protocols while maintaining communication regarding any issues that arise during transit.
- Load Planners: They are critical in maximizing efficiency by strategically assigning loads to available trucks. Their focus is on optimizing routes to enhance profitability and reduce operational costs.
- Customer Service Representatives: This team plays a vital role in maintaining customer relationships by fulfilling shipping needs, proactively communicating about the status of loads, and ensuring timely deliveries.
Segment 2: Strategic Capacity Solutions (SCS)
The SCS segment of USA Truck consists of its freight brokerage and rail intermodal services, which have been combined into a single reportable segment due to their interrelated nature.
1. Freight Brokerage Services:
- Through its freight brokerage operations, USA Truck connects shippers seeking capacity with carriers looking for freight. This service is crucial for providing flexibility and access to a broader range of transportation solutions.
- The company’s brokerage team is skilled at understanding market trends and pricing, enabling them to find the best possible solution for their clients while ensuring third-party carrier compliance and reliability.
2. Rail Intermodal Services:
- While rail intermodal services are smaller in scale, USA Truck utilizes rail transport in conjunction with trucking to provide cost-effective, efficient long-distance shipping solutions. This service appeals to shippers looking for efficient transportation methods, particularly for heavier or bulk goods.
- The integration of rail intermodal with trucking allows for multimodal service offerings that can cater effectively to variable shipping routes and costs.
Network and Personnel:
The SCS segment operates via a network of eleven branch offices strategically located across the continental United States:
- Each office is chosen based on the availability of skilled talent in those areas, ensuring effective service delivery.
- The SCS workforce comprises approximately 100 dedicated employees who focus on customer interactions, freight matching, and selecting third-party carriers to transport shipments efficiently.
- Employees play a critical role in ensuring that service remains consistent and reliable, helping clients navigate their logistics challenges with tailored responses.
Overview of Operations
In summary, USA Truck, Inc. has effectively established a robust infrastructure that supports its two primary segments—trucking and SCS. The trucking segment emphasizes driver and equipment management to optimize logistics operations, while the SCS segment enhances flexibility and capacity through its brokerage services. With a focus on safety, customer service, and operational efficiency, USA Truck is well-positioned to respond to its customers diverse needs in the dynamic transportation landscape.