Smithway Reports 107% Increase in First Quarter Earnings

FORT DODGE, Iowa, April 25  /PRNewswire-FirstCall/ -- Smithway Motor Xpress Corp. (NASDAQ:SMXC) announced today financial and operating results for the first quarter ended March 31, 2006.

For the quarter, net earnings improved 107% to $1,043,000 compared to $503,000 for the same quarter in 2005.

For the first quarter of 2006, operating revenue increased approximately 16% to $57.7 million from $49.7 million for the corresponding quarter in 2005. Operating revenue, excluding fuel surcharge revenue of $8.2 million, increased approximately 10% to $49.5 million from $44.8 million, excluding fuel surcharge revenue of $4.9 million, for the corresponding quarter in 2005. For the first quarter of 2006, net earnings were $1,043,000, or $0.21 per basic and diluted share, compared with net earnings of $503,000, or $0.10 per basic share and diluted share, for the same quarter in 2005.

G. Larry Owens, President and Chief Executive Officer, commented, "This is only the second time in our company's history that first quarter net earnings have exceeded $1.0 million.  We have been profitable for each of the past nine quarters and our earnings per share for the past twelve months ($0.95) are higher than any other twelve month period since 1999. Our operating ratio, excluding fuel surcharge revenue, for the quarter was 95.3% compared to 97.0% during the first quarter of 2005, a 170 basis improvement.

"Our improvement in earnings has been slowed somewhat by increasing costs. During the quarter, average fuel prices increased 22% to $2.39 per gallon compared to $1.96 per gallon in the first quarter of 2005.  Increased fuel surcharge revenue mitigated approximately 89% of this price increase.  Also, during the past twelve months we increased driver wages twice in response to the market and we raised driver wages again on April 1, 2006.

"We are proud of what we have accomplished yet we are not satisfied.  We continually work to contain costs, improve our operations and bring on new business in order to have a positive impact on future earnings."

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 Capital 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 and annual 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)
                                                   2005              2006
     Operating revenue:
        Freight                                  $49,447           $57,277
        Other                                        277               412
             Operating revenue                    49,724            57,689
     Operating expenses:
        Purchased transportation                  16,368            20,553
        Compensation and employee benefits        13,660            15,129
        Fuel, supplies, and maintenance           11,078            12,758
        Insurance and claims                       2,008             1,433
        Taxes and licenses                           873               954
        General and administrative                 1,942             1,866
        Communications and utilities                 331               344
        Gain on disposal of assets                  (540)             (562)
        Depreciation and amortization              2,678             2,864
             Total operating expenses             48,398            55,339
             Earnings from operations              1,326             2,350

     Other (expense) income:
        Interest expense                            (369)             (501)
        Interest income                               33                18
             Earnings before income taxes            990             1,867

        Income tax expense                           487               824
             Net earnings                           $503            $1,043

     Basic earnings per share                      $0.10             $0.21
     Diluted earnings per share                    $0.10             $0.21
     Basic weighted average common
      shares outstanding                       4,903,845         4,971,624
     Diluted weighted average common
      shares outstanding                       5,022,379         5,075,893

        Operating Statistics

                                                   2005              2006
        Operating ratio (1)                        97.3%             95.9%
        Operating ratio, excluding fuel
         surcharges (2)                            97.0%             95.3%
        Average operating revenue per
         tractor per week                         $3,107            $3,500
        Average revenue per tractor per
         week (3)                                 $2,672            $2,816
        Average revenue per seated
         tractor per week (3)                     $2,746            $2,877
        Average length of haul in miles              630               623
        Average revenue per loaded mile
         (3)                                       $1.52             $1.61
        Ending company tractors                      787               793
        Ending owner/operators tractors              446               476
        Ending trailers                            2,075             2,139
        Weighted average tractors                  1,231             1,268

     (1) Operating expenses divided by operating revenue.
     (2) Operating expenses minus fuel surcharge revenue, divided by
         operating revenue excluding fuel surcharge revenue.
     (3) Excludes fuel surcharge, brokerage, and other revenue.  For the
         three months ended March 31, 2005 and 2006, brokerage revenue was
         $1,801 and $2,661.



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


                                               December 31,       March 31,
                                                  2005              2006
                                                                 (unaudited)
      ASSETS
         Current assets:
             Cash and cash equivalents              $168              $346
             Receivables, net                     19,820            21,228
             Inventories                             938               993
             Prepaid expenses and other            5,705             6,365
                Total current assets              26,631            28,932

         Property and equipment                  121,126           119,996
         Less accumulated depreciation            59,704            58,669
             Net property and equipment           61,422            61,327

         Other assets                              2,058             2,058

      Total assets                               $90,111           $92,317

      LIABILITIES AND STOCKHOLDERS'
       EQUITY
         Current liabilities:
             Current debt                         $8,363            $8,344
             Accounts payable and
              accrued expenses                    17,351            19,224
                Total current liabilities         25,714            27,568


         Long-term debt                           25,185            24,487
         Deferred income taxes                    11,734            11,729

      Total liabilities                           62,633            63,784

         Stockholders' equity                     27,478            28,533

      Total liabilities and
       stockholders' equity                      $90,111           $92,317


DATASOURCE: Smithway Motor Xpress Corp.



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

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



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

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