Wednesday, trucking company Knight Transportation Inc. (KNX) reported a 18.6% decline in fourth quarter earnings hurt in large part by higher fuel expense net of fuel surcharge. The company's chairman and chief executive officer, Kevin Knight said the freight market is in the early stages of a turnaround.
The Phoenix, Arizona headquartered truckload carrier said net income for the quarter fell 18.6% to $13.1 million from $16.1 million in the corresponding period last year. Earnings per share declined to $0.16, from $0.19 in the same period last year, yet came in line with the $0.16 per share projected by twenty analysts polled by Thomson Reuters. Analysts estimates typically exclude special items. The company attributed the decline primarily due to higher fuel expense net of fuel surcharge.
Total quarterly revenue fell 4.0%, to $167.8 million from $174.8 million in the year-ago quarter due primarily to decreased fuel surcharge revenue as the U.S. average cost of diesel fuel per gallon during quarter declined to $2.74 from $2.93 in the same period last year. Twelve Street analysts expected the company report revenue of $172.37 million for the quarter. Revenue before fuel surcharge increased 0.2% to $143.9 million from $143.6 million in the year-ago quarter.
Total loads hauled increased 10.6% compared to the same period a year ago. Miles per tractor increased 2.1%, as compared to the same period last year. Equipment productivity was nearly flat with a decrease of 0.1% from the year-ago period.
On a consolidated basis, operating ratio was 85.4%, up from 81.2% in the same period last year. Knight Dry Van operating ratio was 85.0% while Knight Refrigerated operating ratio was 85.2%. Knight Brokerage generated an operating ratio of 92.8%. Gain on the sale of equipment advanced to $694 thousands from $258 thousands for the same period last year.
For the twelve-month period, net income declined to $50.6 million or $0.60 per share from $56.3 million or $0.66 per share in the previous year. Total revenue declined to $651.7 million from $766.9 million last year. Revenue before fuel surcharge decreased 4.0%, to $571.5 million from $595.6 million in the previous year. Street analysts expected the company to report earnings of $0.61 per share on revenue of $656.93 million.
The company finished 2009 with $97.8 million in cash and short-term investments. It had no debt as of December 31.
Chairman and chief executive officer, Kevin Knight, said, "Throughout 2009, the year-over-year negative difference in miles per tractor narrowed as the year progressed until now being positive for the first time in many quarters. Although significant improvement in miles per tractor is needed before rivaling the levels experienced a few years ago, we believe that our improvement in miles per tractor, especially without major reductions in our tractor count, is evidence that we are in the early stages of a turnaround in the truckload freight market."
KNX rose $0.28 or 1.47% and closed Wednesday's regular trading at $19.37. After hours, KNX declined $0.05 or 0.25% and traded at $19.32.
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