0001437749-26-015748
SEC filingOperating revenue fell 8.8% YoY and operating income dropped 72.8%, driven by Dedicated fleet shrinkage and Intermodal exit, partially offset by Brokerage growth.
Total operating revenue for Q1 2026 fell 8.8% to $203.5 million from $223.2 million in Q1 2025. Revenue net of fuel surcharges dropped 9.5% to $177.2 million. The decline was led by the sale of the Intermodal segment (zero revenue vs. $12.1M) and a 13.8% drop in Dedicated segment revenue to $63.5 million. Brokerage revenue rose 5.0% to $34.7 million, while Truckload revenue ticked up 1.0% to $105.4 million.
Operating income plummeted 72.8% to $1.6 million, and the consolidated operating ratio worsened to 99.2% from 97.4% (or 99.1% vs. 97.0% net of fuel surcharges). Major cost headwinds included: fuel and fuel taxes rising 2.4% to $33.9 million (16.7% of revenue vs. 14.8%), net fuel expense increasing 6.7% to $8.2 million, and insurance/claims costs ticking upward as a percentage of revenue. Salaries, wages and benefits decreased 8.5% ($6.0 million driver comp reduction), but depreciation fell only 9.0% as new equipment costs rise. Net income fell 68.1% to $1.4 million ($0.02 per diluted share) from $4.3 million ($0.05). The effective tax rate rose to 32.6% from 30.2% due to higher per diem and non-deductible expenses.
Truckload: Revenue net of fuel surcharges declined 0.9% to $89.3 million as average tractors dropped 6.0% (1,570 vs. 1,670) offset by a 5.5% increase in average revenue per tractor per week to $4,425. The operating ratio slipped to 100.9% from 100.3%, pressured by higher fuel costs partially mitigated by lower driver comp.
Dedicated: The steepest decline—revenue net of fuel surcharges fell 14.8% to $53.2 million as average tractors plunged 16.2% (1,058 vs. 1,262). Average revenue per tractor per week improved modestly (+1.6% to $3,909). The operating ratio ballooned to 97.4% from 93.4% due to elevated fuel, non-driver compensation, and insurance costs.
Brokerage: Revenue rose 5.0% to $34.7 million driven by a 17.0% surge in loads (23,882 vs. 20,416), though revenue per load fell. The operating ratio weakened 390 bps to 97.4%, as carrier payments and insurance costs increased as a percentage of revenue.
Intermodal: Ceased operations after September 30, 2025 sale; no contribution in Q1 2026.
Management expects capital expenditures net of proceeds to be approximately $100 million for the remainder of 2026, with committed purchases of $130.4 million in revenue equipment. Operational liquidity remains strong with no long-term debt, $74.8 million cash/escrow, and $5.9 million available under the $30.0 million credit facility (which matures August 2027). The company plans to continue quarterly cash dividends of $0.06 per share. No explicit revenue or margin guidance was provided, but management highlights ongoing investments in fuel efficiency (auxiliary power units) and sustainability (Solar, LED, SmartWay), while noting seasonal headwinds from winter weather. The pending higher cost of new tractor and trailer ownership is expected to increase depreciation in future periods.
No debt outstanding on the $30M credit facility; $24.1M in standby letters of credit reduces availability to $5.9M. Cash and cash equivalents stand at $69.8M (unaudited balance sheet). The company maintains a $5M escrow deposit related to the intermodal asset sale.
Note 9 discloses firm commitments for revenue equipment purchases: $130.4M for the remainder of 2026 and $31.2M in 2027, totaling $161.6M. Operating lease obligations through 2028 are $434,000. Self-insurance retentions are noted but not quantified as commitments.
Note 11 provides segment-level revenue and operating income for Q1 2026:
Operating cash flow of $33.0M was substantially higher than net income of $1.4M, reflecting large non-cash depreciation ($25.0M) and amortization. The operating cash flow declined 9% YoY from $36.2M, mainly due to lower net income ($4.3M in Q1 2025). Working capital provided a net inflow of $7.6M (2026) vs $5.3M (2025), driven by increases in accounts payable and accrued liabilities.
Capex of $11.9M was down 37% from $18.8M a year ago, lowering cash intensity. Proceeds from equipment sales ($9.2M) partially offset additions. Free cash flow (not explicitly stated) would be CFO minus capex = $21.1M, but that is not reported. Financing outflows of $4.9M were entirely dividends, with no share repurchases. The company ended the quarter with $74.8M in cash and equivalents, including a $5.0M escrow deposit.