USA Truck Announces Board Changes, Addresses Takeover Concerns
Nov 10, 2012 (Menafn - Times Record - McClatchy-Tribune Information Services via COMTEX) --Van Buren-based USA Truck Inc. announced changes in its board of directors and the adoption of a stockholders' rights plan Friday, steps taken in efforts to return the company to profitability.
The company appointed Robert A. Peiser as chairman of the board to succeed Terry A. Elliott.
Peiser, who joined the board in February 2012 and was named vice chairman in August, has management experience with companies executing turnaround strategies to improve their operational and financial performance.
He was credited with being the principal architect of that Trans World Airlines' successful restructuring in 1995. More recently, he was instrumental in improved profitability at Imperial Sugar Co.and privately held Omniflight Helicopters.
Elliott will remain on the board and continue in his current position as chairman of the audit committee.
The company also announced that Robert E. Creager has been appointed to the board, filling an existing board vacancy. Creager will become a member of the audit committee, adding an additional financial expert with broad business and public company director experience.
Creager is a former audit practice leader of the Houston office of PriceWaterhouseCoopers.
Cliff Beckham, president and CEO of the company, also reported the company has initiated a national search for an experienced operations executive. In the interim, it has engaged Thomas M. Glaser, former president and chief operating officer of Celadon Group, as a consultant to begin hands-on sessions with company operations personnel. "We expect the operational, yield management, and other potential improvements to be attainable gradually over 2013 and beyond," Beckham said in a company statement.
The board has also adopted a Stockholders' Rights Plan, which it said is "designed to ensure that all USA Truck stockholders are treated fairly in the event of an unsolicited takeover attempt regarding the company."
A board statement maintained the company is not aware of any pending unsolicited takeover plan.
The plan adoption is not intended to prevent a takeover of the company "on terms that are fair to and in the best interests of stockholders." Rather, the move was taken "in light of the significant recent decline in the market price of the company's common stock and the fact that the company is in the process of implementing its turnaround plan," according to the statement.
Among provisions of the plan is allowance of a two-year period in which the company can implement its turnaround strategy.
Two weeks ago, USA Truck announced a quarterly revenue loss of 6.1 million, and 14.4 million for the first three quarters of the year. Over the past year, stock prices have ranged from a high of 10.08 per share to a low of 2.65. It closed Friday at 2.90 per share.
Last year, the company turned back an attempt by Celadon Group to discuss a merger of the two companies.
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