Smithway Motor Xpress Corp. Reports First Quarter Results

Smithway Motor Xpress Corp. Reports First Quarter Results 


FORT DODGE, Iowa, April 30  /PRNewswire-FirstCall/ -- Smithway Motor Xpress
Corp.  announced today financial and operating results for the first quarter
ended March 31, 2004.

For the quarter, operating revenue increased approximately 9.3% to $43.6
million from $39.9 million for the corresponding quarter in 2003. Our net
earnings were $335,000, or $0.07 per basic and diluted share, compared with net
loss of $1.6 million, or ($0.32) per basic and diluted share, for the same
quarter in 2003.

Net earnings for the quarter include $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 quarter would have been $392,000, or ($0.08) per
basic and diluted share, compared with net loss of $1.6 million, or ($0.32) per
basic and diluted share, for the same quarter in 2003.

G. Larry Owens, President and Chief Executive Officer, commented, "We are
pleased to report the continued success of profit improvement initiatives
implemented in 2003.  We believe these measures, which have continued to impact
quarter to quarter operating results, will return us to profitability in the
near future. Our first quarter 2004 revenue exceeded the revenue from the first
quarter of 2003 by $3.7 million, a 9.3% improvement, resulting from a dramatic
increase in our truck production. For the quarter, average revenue per seated
tractor per week increased by $586 or 18.2% compared to the first quarter of
2003 as we continued our focus on asset productivity and lane flow and as
freight demand increased, allowing for a six cent increase in revenue per
loaded mile, increased revenue miles per tractor, and decreased deadhead.
Additionally, during the quarter, we had fewer unseated tractors compared to
the same quarter a year ago.

"We continue to analyze customer relationships in an effort to maximize truck
production.  Recently we have been successful in adding customers who require
dedicated service.  These arrangements provide repetitive routes and pay for
all miles, thereby increasing our truck yield, improving driver satisfaction,
and raising our rate per total mile.

"We were in compliance with all loan covenants at March 31, 2004 and we expect
to remain in compliance throughout 2004. After two years of limited capital
acquisitions, we have taken delivery of 63 new tractors allowing for
replacement of older, high mileage tractors. We plan to replace 20 tractors per
month throughout the remainder of 2004. Finally, we continue to be very pleased
with our safety record."

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 turn around
continued operating losses, which could result in further 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
new 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
                                                   March 31,
                                                  (unaudited)
                                              2003              2004
  Operating revenue:
     Freight                                 $39,656           $43,408
     Other                                       230               192
        Operating revenue                     39,886            43,600
  Operating expenses:
     Purchased transportation                 14,355            14,078
     Compensation and employee
      benefits                                12,374            13,424
     Fuel, supplies, and maintenance           7,837             8,658
     Insurance and claims                      1,022             1,490
     Taxes and licenses                          841               881
     General and administrative                1,358             1,722
     Communications and utilities                412               366
     Depreciation and amortization             3,710             3,177
        Total operating expenses              41,909            43,796
        Earnings (loss) from
         operations                           (2,023)             (196)

  Other (expense) income:
     Interest expense                           (450)             (373)
     Interest income                               2                 4
     Life Insurance Proceeds                       -               727
        Earnings (Loss) before income taxes   (2,471)              162
     Income tax benefit                         (913)             (173)
        Net earnings (loss)                  $(1,558)             $335

  Basic and diluted earnings (loss)
   per share                                  $(0.32)            $0.07

  Basic weighted average common
   shares outstanding                      4,846,821         4,846,821
  Diluted weighted average common
   shares outstanding                      4,846,821         4,912,869


     Operating Statistics

                                                2003              2004

     Operating ratio                          105.1%            100.4%
     Average operating revenue per
      tractor per week                        $2,388            $2,847
     Average revenue per tractor per week     $2,169 *          $2,601 *
     Average revenue per seated
      tractor per week                        $2,276 *          $2,690 *
     Average length of haul in miles             673               667
     Average revenue per loaded mile           $1.34 *           $1.40 *
     Ending company tractors                     771               748
     Ending owner/operators tractors             515               434
     Ending trailers                           2,434             2,236
     Weighted average tractors                 1,285             1,178

    *excludes fuel surcharge, brokerage, and other revenue.


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

                                            December 31,       March 31,
                                                2003              2004

  ASSETS
    Current assets:
        Cash and cash equivalents               $355              $450
        Receivables, net                      14,697            18,413
        Inventories                              882               957
        Prepaid expenses and other             4,304             5,132
           Total current assets               20,238            24,952

    Property and equipment                   124,634           126,569
    Less accumulated depreciation             70,235            70,930
        Net property and equipment            54,399            55,639

    Other assets                               2,043             2,015

  Total assets                               $76,680           $82,606

  LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
        Current debt                         $10,582           $11,134
        Accounts payable and
         accrued expenses                     13,438            16,100
           Total current liabilities          24,020            27,234

    Long-term debt                            23,035            25,413
    Deferred income taxes                      9,020             9,019

  Total liabilities                           56,075            61,666

    Stockholders' equity                      20,605            20,940

  Total liabilities and stockholders'
   equity                                    $76,680           $82,606


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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