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INVESTOR PRESENTATION August 2020

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Page 1: USX Investor Presentation Outline vFinal

INVESTOR PRESENTATIONAugust 2020

Page 2: USX Investor Presentation Outline vFinal

DISCLAIMER AND FORWARD-LOOKING STATEMENTS

INVESTOR PRESENTATION 2

Forward-Looking StatementsThis presentation (the “Presentation”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements, which involve risks and uncertainties, are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “design,” “estimate,” “expect,” “focus,” “forecast,” “foresee,” “goal,” “hope,” “intend,” “likely,” “may,” “might,” “optimistic,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this Presentation, including statements regarding the Company’s strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management and expected market growth are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the section entitled “Item 1A. Risk Factors,” set forth in our Annual Report on Form 10-K for the year ended December 31, 2019 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020. Readers should review and consider such risk factors along with various disclosures in our press releases, stockholder reports, and other filings with the Securities and Exchange Commission. These forward-looking statements reflect the Company’s views with respect to future events as of the date of this Presentation and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. These forward-looking statements represent the Company’s estimates and assumptions only as of the date of this Presentation and, except as required by law, the Company undertakes no obligation to update or review publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this Presentation. You should read this Presentation with the understanding that the Company’s actual future results may be materially different from what we expect. The Company qualifies all of its forward-looking statements by these cautionary statements.

Non-GAAP Financial MeasuresIn addition to our net income determined in accordance with U.S. generally accepted accounting principles (‘‘GAAP’’), we evaluate operating performance using certain non-GAAP measures, including Adjusted Operating Ratio, Adjusted Operating Income (Loss), Adjusted Net Income (Loss) Attributable to Controlling Interest, and Adjusted EPS (on a consolidated and, as applicable, segment basis). Management believes the use of non-GAAP measures assists investors and securities analysts in understanding the ongoing operating performance of our business by allowing more effective comparison between periods. Further, management uses non-GAAP Adjusted Operating Ratio, Adjusted Operating Income (Loss), Adjusted Net Income (Loss) Attributable to Controlling Interest, and Adjusted EPS measures on a supplemental basis to remove items that may not be an indicator of performance from period-to-period. The non-GAAP information provided is used by our management and may not be comparable to similar measures disclosed by other companies. The non-GAAP measures used herein have limitations as analytical tools and should not be considered measures of income generated by our business or discretionary cash available to us to invest in the growth of our business. You should not consider the non-GAAP measures used herein in isolation or as substitutes for analysis of our results as reported under GAAP. Management compensates for these limitations by relying primarily on GAAP results and using non-GAAP financial measures on a supplemental basis. Refer to the Appendix section of this Presentation for definitions of Adjusted Operating Ratio, Adjusted Operating Income (Loss), Adjusted Net Income (Loss) Attributable to Controlling Interest, and Adjusted EPS and reconciliations of those measures to the most directly comparable GAAP measures.

Page 3: USX Investor Presentation Outline vFinal

• Leading North American Truckload Player with a Balanced Portfolio Enjoying Benefits of Scale

• Continuing Investment in Technology to Increase Frictionless Order and Digital Fleet Momentum

• Business Model Designed to Take Advantage of All Cycles Complemented by a Diverse Customer Base

• Significant Transformation Underway to Drive Efficiency and Growth

INVESTMENT HIGHLIGHTS

INVESTOR PRESENTATION 3

A Unique Growth

Opportunity

Internal Improvements

+ Operating Leverage

Page 4: USX Investor Presentation Outline vFinal

1 U.S. Xpress Adjusted Operating Ratio (“Adjusted OR”). See appendix of this presentation for Adjusted OR reconciliation.2 Tractor and trailer estimates as of 4Q19

LEADING TRUCKLOAD OPERATOR SCALED FOR SUCCESS

INVESTOR PRESENTATION 4

A Leading Truckload Carrier

• Complementary asset-based and brokerage service offerings with an allocation strategy designed to maximize productivity

• Fully developed terminal networks and scalable

• Modern tractor fleet with advanced safety & efficiency features

• Diversified end markets and blue-chip customer base of Fortune 500 companies

• Management team and philosophy improving the business around metrics-driven, performance-based culture committed to transparency

Scaled for Success with Network Breadth & Depth

1000+

500 - 1000

200 - 500

100 - 200

50 - 100

20 - 50

0 - 20

Population per Square Mile by State

5thLARGEST ASSET-BASED

TRUCKLOAD CARRIER IN THE U.S. TRACTORS~6,700

TRAILERS~15,500$1.7B

TOTAL OPERATING REVENUE IN FY 2019

Terminal (13)Drop Yard (35)Office (5)Warehouse (1)ShopHeadquartersLand

Page 5: USX Investor Presentation Outline vFinal

COMPLEMENTARY PORTFOLIO BALANCES MARKET CYCLES

5

Digital fleet launch contributed to 3.5% increase in OTR utilization on a year over year basis

Digital fleet launch contributed to 3.5% increase in OTR utilization on a year over year basis

1.~1-2% attributable to detention and other ancillary charges

2019 Revenue (Ex. FSC) Breakdown by Division (1) (%)48%Over-the-Road (“OTR”)

37%Dedicated

12%Brokerage

• Transports a full trailer of freight for a single customer from origin to destination, typically without intermediate stops or handling

• Tractors are operated with one (“solo”) driver or a team of two drivers (“expedited”) to handle more time-sensitive, higher margin freight

• Contractually assigned equipment, drivers and on-site personnel to address customers’ needs for committed capacity and service levels

• Multi-year initial contract term with guaranteed volumes and pricing

• Non-asset-based freight brokerage service through which loads are contracted to third-party carriers

• Allocation strategy designed to maximize profitability of our Truckload fleet before outsourcing loads to third-party carriers

Launched digital fleet and scaled to 400 tractors in Q2

Fifth sequential quarter with average revenue per tractor per week in excess of $4,000

37.8% YoY increase in load count in Q2

BENEFIT TO PORTFOLIOBENEFIT TO PORTFOLIO

INVESTOR PRESENTATION

Page 6: USX Investor Presentation Outline vFinal

LONG-STANDING, DIVERSE CUSTOMER BASE

INVESTOR PRESENTATION 6

Customer Mix Relatively Balanced Through Seasonal and Cyclical Swings

Long-Standing Blue Chip Customer BaseUtilizing Multiple Service Offerings

Retail, 40%

Food & Beverage, 20%

E-Commerce and Packages

9%

Manufacturing10%

Consumer Products

9%

3PL, 5%Paper & Packaging, 2%

Chemical, 2%Automotive, 2%

Other, 1%

2019 Customer

Mix

• Retail mix is weighted towards discount retail and consumer products

• Our top 25 customers represent 71% of our 2019 revenue • 8 of our top 10 customers use all 3 of our service offerings

and relationships exceed 15 years

Page 7: USX Investor Presentation Outline vFinal

TRANSITIONING ONTO A DIGITAL ENVIRONMENT

INVESTOR PRESENTATION 7

• Customer Service

• Fleet Management

• Load Planning

• Freight Selection to Prioritize Assets

• Fleet Renewal and Maintenance Redesign Program

• FRICTIONLESS ORDER

Transformation:Restructuring Systems to Achieve Digital Platform

Foundation:Leadership and Culture

Transformation

• Eric Fuller Named CEO in 2015

• Eric Peterson named CFO in 2015

• Execution Oriented Culture Instilled

• Started to Manage the Business by Core Metrics

Digital Initiatives:Frictionless Order

& Digital Fleet

Page 8: USX Investor Presentation Outline vFinal

UPDATE ON TECHNOLOGY INITIATIVES

INVESTOR PRESENTATION 8

Applying Digital Technology to Streamline the Value Chain from Booking Through Collection

The Digital Initiatives:Frictionless Order:• Elimination of manual

touchpoints• Simplifying legacy

operating system -improves velocity

• Improve Driver experience

• Reduce driver turnover

Digital Fleet:• App based driver experience• Leverages system

improvements from Frictionless Order

• Revolutionary technology changes for trucking industry

• Optimization and automation of many legacy manual processes

Continuing towards theFrictionless Order

Page 9: USX Investor Presentation Outline vFinal

DIGITAL FLEET

INVESTOR PRESENTATION 9

What is the Digital Fleet? • New fleet largely recruited,

planned, dispatched, and managed using artificial intelligence and digital platforms

• Completely different app-based driver experience with minimal friction

• Initially targeted at converting OTR solo trucks with lower utilization and higher turnover

How will it roll out?• Built databases, apps, processes,

targeted driver profile and launched small pilot in Q4 2019

• Expanded pilot to ~100 trucks in Q1 2020• Launched program to ~400 trucks (avg)

for Q2 2020• Phase 1 target a total of ~900 trucks (500

additional) over the next few quarters–– Timing depends primarily on finding the right

professional truck drivers and the right freight• Phase 2 target of additional ~1,200

tractors- will update timing in future quarters

Initial Results • ~ 20% higher miles/week versus

prior usage in general OTR • ~ 70% improvement in annualized

driver turnover rate• ~5x more trucks per operational

employee• Lower safety incidents per million

miles • Improved service levels

Page 10: USX Investor Presentation Outline vFinal

DIGITAL FLEET STATUS

INVESTOR PRESENTATION 10

OTR BACKGROUND

• Meaningful portion of OTR fleet historical underperformers– Further challenged by friction in legacy

systems

• During 2019:– Hired new technology leadership and team to

advance our digital transition– Built databases, apps, automated processes,

targeted driver & freight profiles– Identified Phase 1 target of a total of ~ 900

OTR underperforming tractors to convert to new digital platform

Q4 2019 ~3,850 OTR

Tractors

2,100Historical

UnderperformingOTR Tractors

1,750Other

OTR Tractors

Page 11: USX Investor Presentation Outline vFinal

DIGITAL FLEET ROADMAP – PHASE 1

INVESTOR PRESENTATION 11

Q4 2019 OTR

900Phase 1 -Historical

Underperformers

Q1 2020

Transitioned100

tractors to new digital platform

Q2 2020

Transitioned300

tractors to new digital platform

ThroughQ1 2021

Transition500

tractors to new digital platform*

*Will not necessarily be linear as timing depends primarily on finding the right professional truck drivers and the right freight

>20% improvement in

utilization

Significant reduction in fixed costs

~70% decline in driver

turnover

~5x more trucks per operations employee

Lower safety incidents per million miles

Page 12: USX Investor Presentation Outline vFinal

Given improved operational efficiency, reduced the fleet by more than 1,100 trailers year to date in truckload operations with no impact on revenues

Procurement department is driving expense discipline, having achieved $4 million of run rate savings through the second quarter

The Brokerage segment plays an important role in delivering freight to the digital fleet. Improving Brokerage margins is a priority for management.

RECENT SUCCESSES TOWARD GOAL OF IMPROVED PROFITABILITY REGARDLESS OF MARKET CONDITIONS

INVESTOR PRESENTATION 12

Achieved ~500 basis points of margin expansion in Q2’20 despite continued rate pressure in the Company’s OTR division

Delivered meaningful progress on the Frictionless Order initiative having removed 6.5 million annualized touch points, year to date. Velocity of business is improving.

Ramped the Company’s digital fleet to 400 tractors and achieved significant improvement in utilization, safety, driver turnover, and expenses in Q2’20

Given improved driver turn over, exited the Company’s OTR student driver training program. Will contribute $4 million of quarterly expenses eliminated in Q3’20 and thereafter

Page 13: USX Investor Presentation Outline vFinal

OUR PLATFORM AND INITIATIVES ARE FOCUSED ON OUR DRIVERS

13

6,299 6,201 6,295 6,275 6,285 6,533

6,663 6,538 6,564

Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20

AVG. TRACTOR COUNT

Our Commitment to What Matters to Our Drivers

Enabled Us to Maintain and Recently Grow Truck Count in a Challenging Driver Market

• Optimize Available Hours • Maximize Take-Home

Pay• Dedicated & Attractive

Lanes• Safe & Efficient Fleet • Redesigned Development

Center(s)

INVESTOR PRESENTATION

Page 14: USX Investor Presentation Outline vFinal

FINANCIAL HIGHLIGHTSSecond Quarter

Page 15: USX Investor Presentation Outline vFinal

Patience and Discipline Paying Off• Positive Quarter with Strong Runway– Team and customers cooperating to function as safely and efficiently as possible in

Covid-19 environment– ~470 BPS sequential improvement in operating ratio (~500 BPS improvement in

adjusted operating ratio)– OTR improved due to launch of Digital Fleet – 400 trucks underway– Dedicated (35% of revenue) growing and generated record revenue per tractor– Brokerage under the spotlight for improvement– Fuel prices tailwind, but less than OTR rate pressure headwind

• Cost conscious culture permeating the Company – run rate fixed and variable costs down excluding the impact of fuel

• Reduced 1,100 excess trailers since late 2019 with no revenue impact, improving cost/mile and saving baseline invested capital of $~30M Operating leverage expected from:– USX Specific: Expansion of digital fleet, fixed/variable cost reduction, Brokerage– Market Based: Rate cycle/Industry capacity reduction

THEMES FOR THE QUARTER

INVESTOR PRESENTATION 15

Page 16: USX Investor Presentation Outline vFinal

FINANCIAL METRICS

16

1.In January of 2019, we disposed of our Mexico cross-border operations with annual revenues of approximately $50 million2.See GAAP to non-GAAP reconciliation in the Appendix

INVESTOR PRESENTATION

22,892

3,282

31,835

1,202

16,038

(3,668)

9,317

16,277

25,355

12,609

Q3-18 Q3-19 Q4-18 Q4-19 Q1-19 Q1-20 Q2-19 Q2-20 YTD-19YTD-20

Adjusted Operating Income2

413,887386,666

422,530405,288 375,312392,820 371,184 393,964

746,496786,784

Q3-18 Q3-19 Q4-18 Q4-19 Q1-19 Q1-20 Q2-19 Q2-20 YTD-19YTD-20

Total Revenue (Excl. Fuel Surcharge)1

94.5%

99.2%

92.5%

99.7%

95.7%

100.9%

97.5%95.9% 96.6%

98.4%

Q3-18 Q3-19 Q4-18 Q4-19 Q1-19 Q1-20 Q2-19 Q2-20 YTD-19YTD-20

Adjusted Operating Ratio2 Adjusted Net Income2

16,129

(1,446)

19,494

(2,820)

7,312

(7,216)2,912

9,498 10,182

2,282

Q3-18 Q3-19 Q4-18 Q4-19 Q1-19 Q1-20 Q2-19 Q2-20 YTD-19YTD-20Q1-20

Page 17: USX Investor Presentation Outline vFinal

Rate Utilization

DRIVEN BY MOMENTUM IN OUR CORE METRICS

6,2866,564

Q2-19 Q2-20

Average Tractors (#)Recent Operating Metrics

Tractor Count

2.118

2.051

Q2-19 Q2-20

Average Revenue per Loaded Mile ($)

Average Revenue Miles per Tractor per Week (#)

1,791

1,849

Q2-19 Q2-20

INVESTOR PRESENTATION 17

Illustrative Sensitivity Each ~1% movement in

rate per mile ($0.02) will have a ~$10 million impact on annual net income

Each ~ 1% movement in average tractors (~65 tractors) will have a ~$3 million impact on annual net income

Each ~1% movement in revenue miles per tractor per week will have a ~$3 million impact on annual net income

Commentary • Spot market exposure pressured rates in the second quarter

• Contract rates down YOY

• Marginal reduction in driver turnover has material impact on seated tractor growth

• Digital fleet growth contributed to increased utilization in our Over- the-Road division

• Continued utilization momentum in our Dedicated division

Page 18: USX Investor Presentation Outline vFinal

Culture and Momentum Building• Digital Initiatives—Digital Fleet and

Frictionless Order • Procurement Department -- Second full

year and gaining breadth and depth of impact

Second Quarter Highlights• Student program costs down $16mm

annual run run rate; 50% realized in Q2 and remainder expected in 2H

• Procurement program on track for $5mm+ annual run rate for 2020 and accelerating

• Cumulatively since late 2019 reduced trailer fleet by 1,100 units without revenue impact, lowering capital investment needs by ~$30mm

Other Commentary• Rate down sequentially• Net fuel cost per mile down

sequentially• Insurance and claims down ~ $5 million

versus prior quarter (accident rate improving, but this will have volatility so difficult to forecast)

Brokerage• Negative operating ratio but has added

selectivity to asset-based freight• Shining a bright light on this segment

COST CONTROL AND CAPITAL EFFICIENCY

INVESTOR PRESENTATION 18

~470 BPSMargin

Improvement

Digital initiatives Fixed Cost Market Impact Other

100.8%

96.1%

Digital Fleet Utilization

LowerTurnover

FewerAccidents

Student Program

General and Other

Fuel

Rate

Misc.

Q1 2020 Q2 2020Operating Ratio

Page 19: USX Investor Presentation Outline vFinal

STRENGTHENED BALANCE SHEET & SIGNIFICANT INTEREST SAVINGS

INVESTOR PRESENTATION 19

Capitalization Table with Cost of DebtCapitalizationJune 30, 2020 Cost of Debt

($ in thousands) BalancePercent of

CapitalizationInterest

RateWt. Avg

Interest Rate

Cash and cash equivalents $ 1,326

Funded Debt & Finance Leases

Credit Facility - Revolver1 - - - N/A -

Equipment debt2 354,518 56.9% 92.5% 4.37% 4.04%

Real estate debt 26,721 4.3% 7.0% 5.72% 0.40%Miscellaneous debt2 2,063 0.3% 0.5% 3.26% 0.02%

Total Funded Debt & Finance Leases $ 383,302 61.5% 100.0% 4.46%

Stockholders Equity3 $ 240,237 38.5%

Total Capitalization $ 623,539 100.0%

1. Applicable Rate is subject to changes in the Average Daily Availability and LIBOR margins range from 1.25-1.75%. As of 06/30/2020 the applicable margin was 1.50%

2. Includes Finance Leases3. Based on 06/30/2020 closing price of $6.00 and approximate shares outstanding of 49,499

Page 20: USX Investor Presentation Outline vFinal

IN SUMMARY

INVESTOR PRESENTATION 20

• Leading North American Truckload Player with a Balanced Portfolio Enjoying Benefits of Scale

• Continuing Investment in Technology to Increase Frictionless Order and Digital Fleet Momentum

• Business Model Designed to Take Advantage of All Cycles Complemented by a Diverse Customer Base

• Significant Transformation Underway to Drive Efficiency and Growth

A Unique Growth

Opportunity

Internal Improvements

+ Operating Leverage

Page 21: USX Investor Presentation Outline vFinal

APPENDIX

Page 22: USX Investor Presentation Outline vFinal

FINANCIAL SUMMARY

22

Three Months Ended June 30,

2020 2019 Change

Over the RoadDigital fleet contributed to increase in utilization while market conditions had an adverse impact on rates

Average revenue per tractor per week1 $ 3,558 $ 3,625 $ (67)

Average revenue per mile $ 1.855 $ 1.956 $ (0.10)

Avg. revenue miles per tractor per week1 1,918 1,853 65

Average tractors 3,825 3,611 214

DedicatedImprovement in utilization is the result in our initiative to enhance or replace under performing business and to focus growth on higher performing accounts

Average revenue per tractor per week1 $ 4,122 $ 4,018 $ 104

Average revenue per mile $ 2.351 $ 2.355 $ (0.00)

Avg. revenue miles per tractor per week1 1,753 1,706 47

Average tractors 2,739 2,674 65

ConsolidatedIncreased utilization on per unit basis allowed us to offset rate degradation

Average revenue per tractor per week1 $ 3,793 $ 3,792 $ 1

Average revenue per mile $ 2.051 $ 2.118 $ (0.067)

Avg. revenue miles per tractor per week1 1,849 1,791 58

Average tractors 6,564 6,285 279

BrokerageBrokerage margins continued to be an area of focus

Brokerage revenue $ 46,029 $ 39,457 $ 6,572

Gross margin % 8.1% 16.1% (8.0%)

Load count 40,933 29,701 11,232

1. Excluding fuel surcharge revenue

INVESTOR PRESENTATION

Page 23: USX Investor Presentation Outline vFinal

NON-GAAP RECONCILIATION

23EARNINGS SUPPLEMENT

Non-GAAP Reconciliation - Truckload Adjusted Operating Income and Adjusted Operating Ratio (unaudited)

Quarter Ended June 30, Six Months Ended June 30,(in thousands) 2020 2019 2020 2019Truckload GAAP Presentation: Total Truckload revenue 376,448$ 374,405$ 758,540$ 743,524$ Total Truckload operating expenses (356,020) (366,902) (736,912) (726,180) Truckload operating income 20,428$ 7,503$ 21,628$ 17,344$ Truckload operating ratio 94.6% 98.0% 97.1% 97.7%

Truckload Non-GAAP PresentationTotal Truckload revenue 376,448$ 374,405$ 758,540$ 743,524$ Fuel surcharge (28,513) (42,678) (68,261) (82,729) Revenue, excluding fuel surcharge 347,935 331,727 690,279 660,795

Total Truckload operating expenses 356,020 366,902 736,912 726,180 Adjusted for:Fuel surcharge (28,513) (42,678) (68,261) (82,729) Mexico transition costs1 - (1,200) - (4,600) Gain on sale of subsidiary2 - 670 - 670 Truckload Adjusted operating expenses 327,507 323,694 668,651 639,521 Truckload Adjusted operating income 20,428$ 8,033$ 21,628$ 21,274$ Truckload Adjusted operating ratio 94.1% 97.6% 96.9% 96.8%

1 During the second quarter and six months ended June 30, 2019, we incurred expenses related to the exit of our Mexico business totaling $1,200 and $4,6002During the second quarter of 2019, we recognized a gain on the sale of our Mexico business

Page 24: USX Investor Presentation Outline vFinal

NON-GAAP RECONCILIATION

24EARNINGS SUPPLEMENT

Non-GAAP Reconciliation - Adjusted Operating Income and Adjusted Operating Ratio (unaudited)

(in thousands) 2020 2019 2020 2019 2019 2018 2019 2018GAAP Presentation:Total operating revenue 422,477$ 413,862$ 432,568$ 415,363$ 449,633$ 469,222$ 428,503$ 460,227$ Total operating expenses 406,200 405,075 436,236 402,725 448,270 448,080 425,221 437,335 Income (losses) from operations 16,277$ 8,787$ (3,668)$ 12,638$ 1,363$ 21,142$ 3,282$ 22,892$ Operating ratio 96.1% 97.9% 100.8% 97.0% 99.7% 95.5% 99.2% 95.0%

Non-GAAP Presentation:Total operating revenue 422,477$ 413,862$ 432,568$ 415,363$ 449,633$ 469,222$ 428,503$ 460,227$ Fuel surcharge (28,513) (42,678) (39,748) (40,051) (44,345) (46,692) (41,837) (46,340) Revenue, before fuel surcharge 393,964 371,184 392,820 375,312 405,288 422,530 386,666 413,887 Total operating expenses 406,200 405,075 436,236 402,725 448,270 448,080 425,221 437,335 Adjusted for: Fuel surcharge (28,513) (42,678) (39,748) (40,051) (44,345) (46,692) (41,837) (46,340) Mexico transition costs1 - (1,200) - (3,400) - - - - Gain on sale of subsidiary2 - 670 - - 161 - - - Impairment of assets held for sale3 - - - - - (10,693) - - Adjusted operating expenses 377,687 361,867 396,488 359,274 404,086 390,695 383,384 390,995 Adjusted income (loss) from operations 16,277$ 9,317$ (3,668)$ 16,038$ 1,202$ 31,835$ 3,282$ 22,892$ Adjusted operating ratio 95.9% 97.5% 100.9% 95.7% 99.7% 92.5% 99.2% 94.5%

1 During the first and second quarter of 2019, we incurred expenses related to the exit of our Mexico business totaling $3,400 and $1,2002During the second and fourth quarter of 2019, we recognized a gain on the sale of our Mexico business totaling $670 and $1613During the fourth quarter of 2018, we incurred an impairment charge related to the exit of our U.S.- Mexico cross border business.

Three Months EndedDecember 31,March 31, September 30, June 30,

Page 25: USX Investor Presentation Outline vFinal

NON-GAAP RECONCILIATION

25EARNINGS SUPPLEMENT

Non-GAAP Reconciliation - Adjusted Net Income and EPS (unaudited)

Quarter Ended June 30, Six Months Ended June 30,(in thousands, except per share data) 2020 2019 2020 2019GAAP: Net income attributable to controlling interest 9,498$ 2,672$ 282$ 7,393$ Adjusted for:Income tax provision 2,387 415 530 2,316

Income before income taxes attributable to controlling interest 11,885$ 3,087$ 812$ 9,709$ Loss on sale of equity method investments1 - - 2,000 - Mexico transition costs2 - 1,200 - 4,600 Gain on sale of subsidiary3 - (670) - (670) Adjusted income before income taxes 11,885 3,617 2,812 13,639 Adjusted income tax provision 2,387 705 530 3,457 Non-GAAP: Adjusted net income attributable to controlling interest 9,498$ 2,912$ 2,282$ 10,182$

GAAP: Earnings per diluted share 0.18$ 0.05$ (0.00)$ 0.15$ Adjusted for:Income tax expense attributable to controlling interest 0.05 0.01 0.01 0.05 Income before income taxes attributable to controlling interest 0.23$ 0.06$ 0.01$ 0.20$ Loss on sale of equity method investments1 - - 0.04 - Mexico transition costs2 - 0.02 - 0.09 Gain on sale of subsidiary3 - (0.01) - (0.01) Adjusted income before income taxes 0.23 0.07 0.05 0.28 Adjusted income tax provision 0.05 0.01 0.01 0.07 Non-GAAP: Adjusted net income attributable to controlling interest 0.18$ 0.06$ 0.04$ 0.21$

1During the first quarter of 2020, we incurred loss on sale related to an equity method investment in a former wholly owned subsidiary2 During the second quarter and six months ended June 30, 2019, we incurred expenses related to the exit of our Mexico business totaling $1,200 and $4,6003During the second quarter of 2019, we recognized a gain on the sale of our Mexico business