OTR Express, Inc. (Nasdaq:OTRX), a long-haul truckload carrier, has entered into a contract with Qualcomm Incorporated (Nasdaq:QCOM) for the purchase and installation of on-board satellite communications for the entire fleet. The company also has moved its main banking operations and line of credit facility to UMB Bank, n.a. effective May 29.
OTR will purchase 500 OmniTRACS mobile communications terminals from Qualcomm by July 31 for full implementation of the existing fleet. The contract calls for the installation of 1,000 units during the next five years. The OmniTRACS mobile communications and position reporting system is designed to provide satellite messaging to and from the trucks, on-demand position reporting, streamlined data flows and improved management information.
Headquartered in San Diego, Qualcomm develops, manufactures, markets, licenses and operates advanced communications systems and products based on its proprietary digital wireless technologies. Qualcomm has sold more than 155,000 OmniTRACS units worldwide.
"With the industry becoming increasingly competitive," said John Sarto, vice president and general manager of Qualcomm's OmniTRACS division, "excellent customer service, driver retention and the bottom line are top priorities. We're confident the OmniTRACS system will be a powerful tool in aiding OTR in reaching its strategic objectives."
OTR President William P. Ward commented: "The Qualcomm OmniTRACS system will allow us to market to larger shippers that require on-board communications from their truckload carriers. The information from the on-board messages will be an integral part of our load status reporting to customers through electronic data interchange (EDI), providing our customers with current position reports, estimated arrival times and load data. We believe this will be a tremendous advancement for our customer service."
In addition, OTR has acquired a new $5.5 million line of credit with UMB Bank, n.a. to replace its existing line of credit facility. The company's main banking operations will also be serviced by UMB effective immediately.
According to Mr. Ward: "The new banking and credit arrangements with UMB are very important to the growth and development of our company. The line offers us flexibility in our capital structure, debt portfolio management and fleet expansion program. We are excited to enter into this new relationship, which we believe will be a very long and beneficial relationship for both parties."
UMB Financial Corporation, the holding company, is a regional, multi-bank holding company headquartered in Kansas City, MO. With $6.1 billion inassets, UMB offers complete banking and related financial services to both individual and business customers, including employee benefit services, trust and estate planning, cash management, financial counseling, brokerage services and commercial loans.
UMB owns and operates 16 affiliate banks with 128 locations throughout Missouri, Illinois, Kansas, Oklahoma, Nebraska and Colorado. All banks are recognized by the UMB initials. Subsidiaries of the holding company and the lead bank, UMB Bank, n.a., include a corporate trust and securities processing company in New York, a consumer credit bank in Nebraska, a trust employee benefit office in San Francisco, and single-purpose companies that deal with mortgage banking, brokerage services, leasing, venture capital and insurance.
OTR Express, Inc. is a long-haul, dry-van truckload carrier serving a large base of more than 800 customers throughout the 48 states. The company currently has 575 employees, including 90 at the home office in Olathe, KS. The common stock is traded on the NASDAQ National Market System under the symbol OTRX. For further information, please contact Gary Klusman, executive vice president, OTR Express, Inc. The telephone number is (913)829-1616, extension 3127.
OmniTRACS is a registered trademark of Qualcomm Incorporated.
June 10, 1996June 10, 1996OTR Express Announces Contract with Qualcomm and New Credit Facility with UMB BankOTR Express Announces Contract with Qualcomm and New Credit Facility with UMB Bank