Smithway Motor Xpress Corp. Announces Continued Improved Profitability

Smithway Motor Xpress Corp. Announces Continued Improved
Profitability 


FORT DODGE, Iowa, Oct. 29  /PRNewswire-FirstCall/ -- Smithway Motor Xpress
Corp. (NASDAQ:SMXC) announced today financial and operating results for the
third quarter and nine months ended September 30, 2004.

For the third quarter of 2004, operating revenue increased approximately 14.6%
to $48.7 million from $42.5 million for the corresponding quarter in 2003. Net
earnings were $854,000, or $0.18 per basic and $0.17 per diluted share,
compared with net loss of ($305,000), or ($0.06) per basic and diluted share,
for the same quarter in 2003.

For the first nine months of 2004, operating revenue increased approximately
11.5% to $138.9 million from $124.6 million for the first nine months in 2003.
Net earnings were $1.9 million, or $0.38 per basic share and diluted share,
compared with net loss of ($2.3 million), or ($0.48) per basic and diluted
share, for the first nine months of 2003.

Net earnings for the first nine months of 2004 include $727,000, or $0.15 per
basic and diluted share, of tax-free life insurance proceeds received during
the first quarter. Without the life insurance proceeds, net earnings for the
first nine months would have been $1.1 million, or $0.23 per basic and diluted
share, compared with net loss of ($2.3 million), or ($0.48) per basic and
diluted share, for the first nine months of 2003.

G. Larry Owens, President and Chief Executive Officer, commented, "Smithway's
results for the third quarter 2004 mark our highest quarterly earnings since
the second quarter of 1999. For the quarter, average revenue per seated tractor
per week increased by $290, or 11.0%, compared to the third quarter of 2003 as
we continued our focus on asset productivity and lane flow and as freight
demand increased, allowing for a nine cent increase in revenue per loaded mile,
increased revenue miles per tractor, and decreased deadhead.

"Higher truck production and freight rates have allowed us to absorb a two cent
per mile driver pay increase and unusually high fuel prices.  Almost all of our
trucks, which we are replacing at the rate of 20 units per month, are seated
with a driver. We are pleased with our continued profitability and look forward
to further improvement."

Smithway is a truckload carrier that hauls diversified freight nationwide,
concentrating primarily on the flatbed segment of the truckload market. Its
Class A Common Stock is traded on the Nasdaq National Market under the symbol
"SMXC."

This press release and statements made by the Company in its stockholder
reports and public filings, as well as oral public statements by Company
representatives, may contain certain forward-looking information, usually
identified by words such as "anticipates," "believes," "estimates," "projects,"
"expects," or similar expressions.  These statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
 Such statements are based upon the current beliefs and expectations of the
Company's management and are subject to significant risks and uncertainties. 
Actual results may differ from those set forth in forward- looking statements. 
The following factors, among others, could cause actual results to differ
materially from those in forward-looking statements: failure to sustain the
recent return to quarterly operating profitability, which could result in
violation of bank covenants and acceleration of indebtedness at several
financial institutions; the ability to obtain financing on acceptable terms,
and obtain waivers and amendments to current financing in the event of default;
economic recessions or downturns in customers' business cycles; excessive
increases in capacity within truckload markets; surplus inventories; decreased
demand for transportation services offered by the Company; increases or rapid
fluctuations in inflation, interest rates, fuel prices, and fuel hedging; the
availability and costs of attracting and retaining qualified drivers and
owner-operators; increases in insurance premiums and deductible amounts, or
changes in excess coverage, relating to accident, cargo, workers' compensation,
health, and other claims; the resale value of used equipment and prices of new
equipment; seasonal factors such as harsh weather conditions that increase
operating costs; regulatory requirements that increase costs and decrease
efficiency, including emissions standards and hours-of-service regulations;
changes in management; and the ability to negotiate, consummate, and integrate
acquisitions.  Readers should review and consider the various disclosures made
by the Company in this press release, stockholder reports, and in its Forms
10-K, 10-Q, and other public filings.  The Company disclaims any such
obligation to update or alter its forward-looking statements whether as a
result of new information, future events, or otherwise.

                SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Dollars in thousands, except share and per share data and operating
                                statistics)

                             Three months ended        Nine months ended
                               September 30,             September 30,
                               (unaudited)               (unaudited)
                             2003         2004         2003         2004
    Operating revenue:
      Freight              $42,325      $48,469     $124,056     $138,338
      Other                    136          189          532          599
        Operating revenue   42,461       48,658      124,588      138,937
    Operating expenses:
      Purchased
       transportation       13,891       16,125       42,590       45,384
      Compensation and
       employee benefits    13,185       13,572       38,812       40,272
      Fuel, supplies,
       and maintenance       7,420        9,710       22,351       27,352
      Insurance and claims   1,370        1,288        3,268        3,953
      Taxes and licenses       893          906        2,573        2,778
      General and
       administrative        1,867        1,714        5,081        5,148
      Communications and
       utilities               337          282        1,130          962
      Depreciation and
       amortization          3,467        3,203       10,958        9,695
        Total operating
         expenses           42,430       46,800      126,763      135,544
        (Loss) earnings
         from operations        31        1,858       (2,175)       3,393

    Other (expense) income:
      Interest expense        (443)        (378)      (1,389)      (1,141)
      Interest income           21           16           25           26
      Life Insurance Proceeds    -            -            -          727
        (Loss) earnings
         before income taxes  (391)       1,496       (3,539)       3,005
      Income tax
       (benefit) expense       (86)         642       (1,218)       1,151
        Net (loss) earnings  $(305)        $854      $(2,321)      $1,854

    Basic (loss)
     earnings per share     $(0.06)       $0.18       $(0.48)       $0.38
    Diluted (loss)
     earnings per share     $(0.06)       $0.17       $(0.48)       $0.38
    Basic weighted
     average common
     shares outstanding  4,846,821    4,848,821    4,846,821    4,847,609
    Diluted weighted
     average common
     shares outstanding  4,846,821    4,968,889    4,846,821    4,940,442


      Operating Statistics

                             2003         2004         2003         2004

      Operating ratio        99.9%        96.2%       101.7%        97.6%
      Average operating
       revenue per
       tractor per week     $2,704       $3,227       $2,556       $3,034
      Average revenue per
       tractor per week     $2,495  *    $2,842  *    $2,345  *    $2,725  *
      Average revenue
       per seated
       tractor per week     $2,625  *    $2,915  *    $2,464  *    $2,816  *
      Average length of
       haul in miles           660          653          653          661
      Average revenue
       per loaded mile       $1.39  *     $1.48  *     $1.37  *     $1.45  *
      Ending company
       tractors                746          754          746          754
      Ending owner/operators
       tractors                436          435          436          435
      Ending trailers        2,299        2,163        2,299        2,163
      Weighted average
       tractors              1,208        1,160        1,250        1,174


    * excludes fuel surcharge, brokerage, and other revenue.



                SMITHWAY MOTOR XPRESS CORP. AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                           (Dollars in thousands)

                                               December 31,    September 30,
                                                   2003              2004
     ASSETS
        Current assets:
            Cash and cash equivalents               $355            $5,260
            Receivables, net                      14,697            18,446
            Inventories                              882             1,102
            Prepaid expenses and other             4,304             4,753
               Total current assets               20,238            29,561

        Property and equipment                   124,634           119,238
        Less accumulated depreciation             70,235            67,534
            Net property and equipment            54,399            51,704

        Other assets                               2,043             2,022

     Total assets                                $76,680           $83,287

     LIABILITIES AND STOCKHOLDERS' EQUITY
        Current liabilities:
            Current debt                         $10,582           $10,525
            Accounts payable and accrued
             expenses                             13,438            17,874
               Total current liabilities          24,020            28,399

        Long-term debt                            23,035            22,001
        Deferred income taxes                      9,020            10,423

     Total liabilities                            56,075            60,823

        Stockholders' equity                      20,605            22,464

     Total liabilities and stockholders' equity  $76,680           $83,287


DATASOURCE: Smithway Motor Xpress Corp.



CONTACT:  Douglas C. Sandvig, Senior Vice President, Treasurer and Chief

Financial Officer of Smithway Motor Xpress Corp., [phone]



Web site:  http://www.smxinc.com/ 

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