Smithway Motor Xpress Corp. Reports First Quarter Results

Smithway Motor Xpress Corp. Reports First Quarter Results
Earnings Exceed Management Expectations 


FORT DODGE, Iowa, April 22  /PRNewswire-FirstCall/ -- Smithway Motor Xpress
Corp. (NASDAQ:SMXC) announced today financial and operating results for the
first quarter ended March 31, 2005.

For the quarter, operating revenue increased approximately 14.0% to $49.7
million from $43.6 million for the corresponding quarter in 2004. Operating
revenue, excluding fuel surcharge revenue of $4.9 million, increased
approximately 7% to $44.8 million from $41.8 million, excluding fuel surcharge
revenue of $1.8 million, for the corresponding quarter in 2004. Net earnings
were $503,000, or $0.10 per basic and diluted share, compared with net earnings
of $335,000, or $0.07 per basic and diluted share, for the same quarter in
2004.

Net earnings, excluding unusual items, were $503,000, or $0.10 per basic and
diluted share, compared with net loss of $392,000, or $0.08 per basic and
diluted share, for the same quarter in 2004. (Net earnings for the 2004 quarter
included $727,000, or $0.15 per basic and diluted share, of tax-free life
insurance proceeds. Without the life insurance proceeds, our net loss for the
2004 quarter would have been $392,000, or $0.08 per basic and diluted share.)

G. Larry Owens, President and Chief Executive Officer, commented, "Inclement
weather and seasonally lower freight in the winter months typically cause
financial performance of trucking companies to suffer during the first and last
quarter of the calendar year. In light of this seasonality, we are pleased with
our earnings this quarter which exceeded our expectations and represent our
best first quarter performance in the past six years. Our first quarter 2005
revenue, excluding fuel surcharge revenue, exceeded the revenue from the first
quarter of 2004 by $3.0 million, a 7.3% improvement, resulting from a 3.19%
increase in weighted average tractors and a 3.44% increase in our truck
production. For the quarter, average revenue per seated tractor per week
increased by $91.29, 3.44%, compared to the first quarter of 2004 primarily due
to a $0.12 increase in average revenue per loaded mile.

"During the quarter, we reduced our operating ratio by more than 300 basis
points as compared to the first quarter of 2004.  Increased freight rates more
than offset increased operating costs. Average fuel prices increased 30% to
$1.96 per gallon this quarter compared to $1.50 per gallon in the first quarter
of 2004.  Increased fuel surcharge revenue mitigated approximately 79% of this
price increase.  On two occasions since the third quarter of 2004 we have
increased driver wages in response to the market.  We continually monitor
expenses and have increased our truck to non-driver employee ratio to 4.97
during the first quarter of 2005 from 4.51 during the first quarter of 2004, a
10% improvement.  Additionally we have reduced our tractor-to-trailer ratio by
disposing of underutilized trailers and have eliminated two small terminals
which we determined were not cost effective in our operation.

"By continually increasing freight rates, conservatively managing expenses, and
maintaining our unwavering emphasis on safety, we expect further improvement in
our earnings and operating ratio."

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 SmallCap 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,"
"plans," "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 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
                                                     March 31,
                                                    (unaudited)
                                              2004              2005
  Operating revenue:
    Freight                                 $43,408           $49,447
    Other                                       192               277
        Operating revenue                    43,600            49,724
  Operating expenses:
    Purchased transportation                 14,078            16,368
    Compensation and employee benefits       13,581            13,660
    Fuel, supplies, and maintenance           8,658            11,078
    Insurance and claims                      1,333             2,008
    Taxes and licenses                          881               873
    General and administrative                1,722             1,942
    Communications and utilities                366               331
    Depreciation and amortization             3,177             2,138
        Total operating expenses             43,796            48,398
        (Loss) earnings from operations        (196)            1,326

  Other (expense) income:
    Interest expense                           (373)             (369)
    Interest income                               4                33
    Life Insurance Proceeds                     727                 -
        Earnings before income taxes            162               990
    Income tax (benefit) expense               (173)              487
        Net earnings                           $335              $503

  Basic earnings per share                    $0.07             $0.10
  Diluted earnings per share                  $0.07             $0.10
  Basic weighted average common
   shares outstanding                     4,846,821         4,903,845
  Diluted weighted average common
   shares outstanding                     4,912,869         5,022,379


    Operating Statistics

                                              2004              2005

    Operating ratio                           100.4%             97.3%
    Average operating revenue per
     tractor per week                        $2,811            $3,107
    Average revenue per tractor per week     $2,568 *          $2,672 *
    Average revenue per seated
     tractor per week                        $2,655 *          $2,746 *
    Average length of haul in miles             667               630
    Average revenue per loaded mile           $1.40 *           $1.52 *
    Ending company tractors                     748               787
    Ending owner/operators tractors             434               446
    Ending trailers                           2,236             2,075
    Weighted average tractors                 1,193             1,231

  *excludes fuel surcharge, brokerage, and other revenue.



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

                                          December 31,       March 31,
                                              2004              2005
                                                            (unaudited)
  ASSETS
     Current assets:
         Cash and cash equivalents            $5,054            $4,101
         Receivables, net                     16,776            19,227
         Inventories                             948               968
         Prepaid expenses and other            4,142             5,738
            Total current assets              26,920            30,034

     Property and equipment                  117,048           117,556
     Less accumulated depreciation            67,772            67,869
         Net property and equipment           49,276            49,687

     Other assets                              2,080             2,073

  Total assets                               $78,276           $81,794

  LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
         Current debt                         $9,301            $8,613
         Accounts payable and
          accrued expenses                    15,256            17,903
            Total current liabilities         24,557            26,516

     Long-term debt                           20,008            20,946
     Deferred income taxes                    10,702            10,729

  Total liabilities                           55,267            58,191

     Stockholders' equity                     23,009            23,603

  Total liabilities and stockholders'
   equity                                    $78,276           $81,794


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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