7:17AM USA Truck beats by $0.04, beats on revs. Note: On Sept 27, USAK rejected KNX's $9 per share acquisition proposal (USAK) 9.05 : Reports Q3 (Sep) loss of $0.06 per share, $0.04 better than the Capital IQ Consensus Estimate of ($0.10); revenues rose 14.0% year/year to $141.8 mln vs the $137.03 mln consensus.
"The third quarter of 2013 marked our fourth consecutive quarter of substantially improved operating and bottom-line results. Our increased cash flow enabled us to pay down debt for the first time since the fourth quarter of 2011. These achievements are even more impressive given the challenging conditions the truckload industry has been facing and the fact that our third quarter is usually seasonally weaker than our second.
USA Truck Announces Significantly Improved Operating Results on 13.5% Revenue Growth
- Operating income increases by $8.3 million
- Base revenue increases to $113.9 million
- EBITDA up 339% to $12.0 million
- Debt reduced by $5.0 million
This worn out dog is fortunate to get a $9 bid. The BOD of USAK will wind up being sued for breach of fiduciary responsibility if they turn down the bid.
They should raise their bid to at least 12. USA won't budge for less than that. It will be a great combo, but the Knight bros. have to raise bid or some other trucking co. will bid in higher, Come on Knight bros raise bid and expand to the South.
Sentiment: Strong Buy
I'm going to be watching USAK closely. This is an interesting one, but is already showing great signs of potential. It's on the watch list for a lot of the major alerts sites. Prophet Alerts gives top notch alerts like USAK. I just found them recently but have been surprisingly impressed