Note 12 - Liquidity

3 Months Ended

Mar. 31, 2020

Note

12.

Liquidity

Our business requires significant capital investments over the short-term and the long-term. We generally finance our capital requirements with borrowings under our Credit Facility, cash flows from operations, long-term operating leases, finance leases, secured installment notes with finance companies, and proceeds from the sale of our used revenue equipment. We had working capital (total current assets less total current liabilities) of

$114.1

million and

$93.1

million at

March 31, 2020

and

December 31, 2019,

respectively. Based on our expected financial condition, net capital expenditures, and results of operations and related net cash flows, we believe our working capital and sources of liquidity will be adequate to meet our current and projected needs for at least the next year.

As of

March 31, 2020,

we had

$24.3

million of borrowings outstanding, undrawn letters of credit outstanding of approximately

$35.1

million, and available borrowing capacity of

$35.6

million under the Credit Facility. Fluctuations in the outstanding balance and related availability under our Credit Facility are driven primarily by cash flows from operations and the timing and nature of property and equipment additions that are

not

funded through notes payable, as well as the nature and timing of collection of accounts receivable, payments of accrued expenses, and receipt of proceeds from disposals of property and equipment.

As part of our strategic focus to reduce overhead costs and in response to the uncertainty of the upcoming economic environment as a result of COVID-

19,

we have begun taking measures to preserve our liquidity, including capital reductions, financing, cost reduction, and working capital actions. Additionally, we have other potential flexible sources of liquidity that we can leverage if needed, including currently unencumbered owned revenue equipment, and accounts receivable attributable to our Factoring reportable segment that are

not

currently included in the borrowing base of our ABL credit facility or otherwise encumbered.