USA Truck Takes Move to Prevent Hostile Takeover
Financially troubled USA Truck on Thursday announced a “stockholders’ rights plan” that seemingly protects the company from a hostile takeover following a rapid share-price decline that has seen price levels well below any point in the company’s publicly-held history.
The Van Buren-based long-haul carrier also announced board and management changes designed “to bring material improvements to our operating results.”
Improvements are necessary for the company that is on track to post its fourth consecutive year of income loss.
The company reported Oct. 26 that its third quarter revenue fell 2.3% and it lost $6.1 million in the quarter compared to a 2011 third-quarter loss of $4.3 million. The 59 cent per share loss was far worse than the consensus estimate of a 25 cent per share loss from the two analysts who still follow the publicly held trucking company.
For the first nine months of 2012, the long-haul carrier recorded a net loss of $14.4 million, considerably worse than the $6.4 million loss during the same period of 2011. Revenue for the first nine months of 2012 totaled $301.7 million, down from the $310.8 million during the same period f 2011. Click here to read the full story from our partners at TheCityWire.com.