Brief: U.S. Xpress Announces Realignment Plan

US Xpress Enterprises

07/09/2022 21:22

Sept 7 (Reuters) - US Xpress Enterprises Inc  USX.N :
    * U.S. XPRESS ANNOUNCES REALIGNMENT PLAN
    * US XPRESS ENTERPRISES - EXPECTS TO INCUR SEVERANCE RELATED
CHARGES DUE TO THIS WORKFORCE REDUCTION INITIATIVE OF $0.6
MILLION IN ITS Q3 FINANCIAL RESULTS
    * US XPRESS ENTERPRISES INC - TOTAL COSTS EXPECTED TO BE
REDUCED
BY APPROXIMATELY $25.0 MILLION ON AN ANNUALIZED BASIS BEGINNING
IN Q4 OF 2022
    * US XPRESS ENTERPRISES INC - REALIGNMENT PLAN FOCUSED ON
IMPROVING OVER-THE-ROAD OPERATIONS WITH LIMITED IMPACT TO
DEDICATED, BROKERAGE BUSINESSES
    * US XPRESS ENTERPRISES INC - EFFICIENCIES ARE EXPECTED TO
REDUCE
ANNUALIZED WAGE COSTS BY APPROXIMATELY $20.0 MILLION BEGINNING
IN Q4 OF 2022
    * US XPRESS ENTERPRISES INC - CONTINUES TO EXPECT $18
MILLION OF
INTEREST EXPENSE FOR FULL YEAR 2022
    * US XPRESS ENTERPRISES - EXPECTS TO INCUR SEVERANCE RELATED
CHARGES DUE TO THIS WORKFORCE REDUCTION INITIATIVE OF $0.6
MILLION IN ITS Q3 FINANCIAL RESULTS
    * US XPRESS ENTERPRISES INC - EXPERIENCING AN INCREASE IN
INSURANCE AND CLAIMS EXPENSE
    * US XPRESS ENTERPRISES INC - DURING Q3, COMPANY TERMINATED
LEASE
AGREEMENT FOR ITS ATLANTA OFFICE
    * US XPRESS ENTERPRISES INC - EXPECTS APPROXIMATELY $15.0
MILLION
IN ADDITIONAL INSURANCE AND CLAIMS EXPENSE, PRIMARILY DRIVEN BY
ONE LARGE CLAIM, IN Q3
    * US XPRESS ENTERPRISES INC - EXPECTS TO GENERATE ANNUALIZED
SAVINGS OF APPROXIMATELY $2.0 MILLION FROM LEASE TERMINATION
BEGINNING IN Q4
    * US XPRESS ENTERPRISES INC - CONTINUES TO EXPECT CAPITAL
EXPENDITURES, NET OF PROCEEDS TO BE APPROXIMATELY $150.0 MILLION
FOR 2022
    * US XPRESS ENTERPRISES INC - REVIEWING ADDITIONAL
DIVESTITURE
OPPORTUNITIES IN ITS REAL ESTATE PORTFOLIO
    * US XPRESS ENTERPRISES INC - TARGETING NET CAPITAL
EXPENDITURES
OF LESS THAN $100 MILLION FOR 2023
    * US XPRESS ENTERPRISES INC - ELIMINATED APPROXIMATELY $3.0
MILLION IN ADDITIONAL ANNUALIZED COSTS FROM ALL OTHER AREAS OF
BUSINESS
    * US XPRESS ENTERPRISES INC - 2023 NET CAPITAL EXPENDITURE
EXPECTATION ASSUMES SCHEDULED DELIVERIES AND TRADES FOR BALANCE
OF 2022 REMAIN ON SCHEDULE
    * US XPRESS ENTERPRISES INC - EXPECTS ITS LIQUIDITY TO
IMPROVE
OVER BALANCE OF YEAR
    * US XPRESS-JUSTIN HARNESS WILL LEAD BOTH OPERATIONAL AND
COMMERCIAL FUNCTIONS OF OTR AND BROKERAGE BUSINESSES, SERVING AS
PRESIDENT OF HIGHWAY SERVICES
    * US XPRESS ENTERPRISES INC - UNDERGOING A REAL ESTATE
FOOTPRINT
RATIONALIZATION FOCUSED ON DIVESTITURES OF NON-CORE REAL ESTATE
HOLDINGS
    * US XPRESS ENTERPRISES INC - BRANDON DANNEFFEL WILL REPLACE
HARNESS, AS PRESIDENT OF DEDICATED
    * US XPRESS ENTERPRISES INC - REVIEWING ADDITIONAL
DIVESTITURE
OPPORTUNITIES IN ITS REAL ESTATE PORTFOLIO
    * US XPRESS ENTERPRISES INC - IN TOTAL, COMPANY HAS
ELIMINATED
APPROXIMATELY $25.0 MILLION IN ANNUALIZED COSTS

Source text for Eikon:  ID:nBw2Fqxc7a 
Further company coverage:  USX.N 

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