U.S. Xpress Enterprises, Inc. Reports Second Quarter Results; 39% Revenue Growth and Significant Earnings Improvement

Business Wire, July 20, 2006

CHATTANOOGA, Tenn. -- U.S. Xpress Enterprises, Inc. (NASDAQ/NM: XPRSA) announced operating revenue and earnings for the second quarter and six months ended June 30, 2006.

Financial Highlights

Revenue for the second quarter of 2006 increased 39.2% to $389.5 million compared with $279.9 million in the second quarter of 2005. Net income for the second quarter increased to $5.7 million, or $0.37 per diluted share, compared with net income of $482,000, or $0.03 per diluted share in the prior year period. The 2005 second quarter results include a one-time pre-tax charge of $2.8 million related to the sale and exit of its airport-to-airport business. Before the one-time charge, the Company reported net income of $1.9 million, or $0.12 per diluted share, in the prior-year period.

For the six months ended June 30, 2006, revenue increased 25.5% to $689.2 million from $549.0 million in the prior-year period. For the first six months of 2006, the Company reported net income of $6.5 million, or $0.42 per diluted share, compared with a net loss (after the one-time charge) of $1.6 million, or $0.10 per diluted share, for the prior-year period. Before the charge, the Company reported a net loss of $196,000, or $0.01 per diluted share, for the first six months of 2005.

On February 28, 2006, the Company acquired additional equity in both Arnold Transportation and Total Transportation, increasing its ownership interest in each to 80% from 49%. Accordingly, the financial results from February 28, 2006 of Arnold and Total are included in the Company's consolidated financial statements. Consolidated revenue, excluding fuel surcharge, and operating income for the second quarter of 2006 includes $78.3 million of revenue and $4.8 million in operating income of Arnold and Total. The six months ended June 30, 2006, includes $107.4 million of revenue and $6.6 million in operating income of Arnold and Total.

Truckload Operations

During the second quarter, truckload revenue, excluding the effect of fuel surcharges, increased 38.4% to $307.9 million from $222.4 million a year ago. The increase in truckload revenue was driven by contributions from Arnold and Total and a 3.2% increase in the revenue of the U.S. Xpress truckload operations to $229.6 million. Truckload operating income for the quarter increased by 93.3% to $13.8 million from $7.1 million in the prior-year quarter due to the consolidation of Arnold and Total, which contributed $4.8 million in operating income, and a 25.6% increase in operating income to $9.0 million for the U.S. Xpress truckload operations. The improvement in operating income of the U.S. Xpress truckload operations reflects improved yields driven by a 3.7% increase in revenue per revenue mile and a lower percentage of empty miles.

Co-Chairman, Patrick Quinn, stated, "We are pleased with the improvements realized in our U.S. Xpress truckload operations during the second quarter. The results demonstrate the progress we are making in improving the performance of our over-the-road and regional solo fleets as well as the benefits of a continued focus on growing our dedicated, expedited truck and rail services. The results of Arnold and Total, which were in line with our expectations, also contributed to the strong earnings growth in the quarter."

Xpress Global Systems

Revenue of Xpress Global Systems declined to $25.6 million in the quarter compared with $37.8 million in the comparable 2005 quarter due primarily to the sale and exit from the airport-to-airport business in the second quarter of 2005. Xpress Global Systems' operating income for the second quarter was $1.7 million compared with a $5.6 million operating loss in the prior-year quarter, which includes a $2.8 million one-time charge for the loss on the sale of the airport-to-airport business.

Mr. Quinn added, "The management team at Xpress Global Systems did an excellent job of executing its business plan during what is seasonally a strong quarter for its floor covering business. The improvements in customer on time service and the yield management programs we implemented over the last year continue to pay off for us, and we have exhibited much better cost control.

"Looking forward, for the remainder of the year we are expecting a solid freight demand environment, along with constrained capacity growth in the truckload market due to a very tight driver market. Assuming these factors and given the turnaround of Xpress Global, the success of Arnold and Total, and the improving trends in our U.S. Xpress truckload operations, we continue to be optimistic about the remainder of the year."

U.S. Xpress Enterprises will host a conference call to discuss second quarter results on July 21, 2006, at 11:00 a.m. EDT. The number to call for this interactive teleconference is (913) 981-5571. A replay of the conference call will be available through July 28, 2006, by dialing (719) 457-0820 and entering the confirmation number, 4324249.

The live broadcast of U.S. Xpress Enterprises' quarterly conference call will be available online at the Company's website, www.usxpress.com, as well as http://www.videonewswire.com/event.asp?id=34455 on July 21, 2006, beginning at 11:00 a.m. EDT. The online replay will follow shortly after the call and continue through August 21, 2006.