WARREN, Mich., April 28, 2016 /PRNewswire/ -- Universal
Truckload Services, Inc. (NASDAQ: UACL) today reported first
quarter 2016 net income of $7.5
million, or $0.26 per basic
and diluted share, on total operating revenues of $260.4 million. This compares to
$8.2 million, or $0.27 per basic and diluted share, during the
first quarter of 2015 on total operating revenues of $263.6 million.
Operating revenues from our transportation services decreased
$10.5 million, or 6.5%, to
$149.9 million in the quarter ended
April 2, 2016. The decline
included an $8.4 million decrease in
fuel surcharges, and a 6.7% decrease in average operating revenues
per load, excluding fuel surcharges. Load volumes were relatively
stable, increasing a modest 1.1%, however, a weak pricing
environment and declining fuel surcharges drove the overall
decline. Value-added service revenues increased $5.3 million, or 7.6%, in the most recent quarter
to $75.6 million reflecting new
business awarded in the second half of 2015. Intermodal
service revenues also increased, up 6.0% to $34.9 million compared to the same period
last year. Our intermodal service revenues include a
$2.7 million increase in drayage
revenues, partially offset by lower domestic intermodal and depot
services.
Consolidated income from operations decreased $1.1 million to $13.9
million in the first quarter of 2016 and EBITDA decreased
6.8% to $22.5 million during the same
period. Our operating margin and EBITDA margin for the first
quarter of 2016 are 5.3% and 8.6% of operating revenues.
These profitability metrics compare to 5.7% and 9.1%, respectively,
in the first quarter of 2015.
Income from operations in our transportation segment decreased
7.3% to $5.9 million in the first
quarter of 2016, despite a $9.7
million decline in transportation segment revenues.
Income from operations in our logistics segment, which includes
value-added services and dedicated transportation services,
decreased 2.6%, or $0.2 million to
$8.5 million on $102.6 million of operating revenues compared to
$96.2 million in operating revenues
in the same period last year.
"We are starting to see the growth anticipated in our
value-added services," commented Universal's Chief Executive
Officer, Jeff Rogers.
"However, a soft pricing environment and low diesel prices
continues to put downward pressure in our transportation service
revenues. Once again, intermodal performed very well for us
and we are getting excited about the improvements made in our
dedicated operations. There is work ahead of us, but we will
stay focused on driving profitable growth, and ensure we are
achieving maximum efficiency with our strong business model."
Universal calculates and reports selected financial metrics in
connection with lending arrangements, or to isolate and exclude the
impact of non-operating expenses related to our corporate
development activities. These statistics are described in
more detail below in the section captioned "Non-GAAP Financial
Measures."
As of April 2, 2016, we held cash
and cash equivalents totaling $11.7
million and marketable securities of $13.4 million. Outstanding debt, net of
debt issue costs, totaled $233.4
million and our capital expenditures totaled $36.0 million during the first three months of
2016.
Universal Truckload Services, Inc. also announced today that our
Board of Directors has declared a quarterly cash dividend of
$0.07 per share of common
stock. The dividend is payable to shareholders of record at
the close of business on May 9, 2016
and is expected to be paid on May 19,
2016.
Conference call:
We invite investors and analysts to our quarterly earnings
conference call. During the call, Jeff Rogers, CEO, Jude
Beres, CFO, and Steven
Fitzpatrick, Vice President of Finance and Investor
Relations, will discuss Universal's first quarter 2016 financial
performance, the demand outlook in our key markets and other trends
impacting our business.
Quarterly Earnings Conference Call Dial-in Details
|
Time:
|
10:00 AM
EDT
|
|
Date:
|
Friday, April 29,
2016
|
|
Call Toll
Free:
|
(866)
622-0924
|
|
International
Dial-in:
|
+1 (660)
422-4956
|
|
Conference
ID:
|
83911871
|
A replay of the conference call will be available beginning two
hours after the call through May 26,
2016, by calling (855) 859-2056 (toll free) or +1 (404)
537-3406 (toll) and using conference ID 83911871. The call will
also be available on investors.goutsi.com.
About Universal:
Universal Truckload Services, Inc. is a leading asset-light
provider of customized transportation and logistics solutions
throughout the United States, and
in Mexico, Canada and Colombia. We provide our customers with
supply chain solutions that can be scaled to meet their changing
demands and volumes. We offer our customers a broad array of
services across their entire supply chain, including
transportation, intermodal, and value-added services.
Forward Looking Statements
Some of the statements contained in this press release might
be considered forward-looking statements. These statements
identify prospective information. Forward-looking statements
are based on information available at the time and/or management's
good faith belief with respect to future events, and are subject to
risks and uncertainties that could cause actual performance or
results to differ materially from those expressed in the
statements. These forward-looking statements are subject to a
number of factors that may cause actual results to differ
materially from the expectations described. Additional
information about the factors that may adversely affect these
forward-looking statements is contained in the Company's reports
and filings with the Securities and Exchange Commission. The
Company assumes no obligation to update forward-looking statements
to reflect actual results, changes in assumptions or changes in
other factors affecting forward-looking information except to the
extent required by applicable securities laws.
UNIVERSAL
TRUCKLOAD SERVICES, INC.
|
Unaudited Condensed
Consolidated Statements of Income
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
|
April
2,
|
|
March
28,
|
|
|
2016
|
|
2015
|
|
Operating
revenues:
|
|
|
|
|
|
Transportation services
|
|
$ 149,924
|
|
$ 160,404
|
|
Value-added services
|
|
75,554
|
|
70,218
|
|
Intermodal services
|
|
34,916
|
|
32,939
|
|
Total operating
revenues
|
|
260,394
|
|
263,561
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Purchased transportation and equipment rent
|
|
121,665
|
|
132,080
|
|
Direct
personnel and related benefits
|
|
64,010
|
|
51,510
|
|
Commission expense
|
|
8,072
|
|
8,818
|
|
Operating expense (exclusive of items shown separately)
|
|
23,926
|
|
27,045
|
|
Occupancy expense
|
|
7,723
|
|
6,827
|
|
Selling,
general and administrative
|
|
8,350
|
|
9,006
|
|
Insurance and claims
|
|
4,172
|
|
4,170
|
|
Depreciation and amortization
|
|
8,546
|
|
9,038
|
|
Total operating expenses
|
|
246,464
|
|
248,494
|
|
Income from operations
|
|
13,930
|
|
15,067
|
|
Interest expense,
net
|
|
(1,963)
|
|
(1,842)
|
|
Other non-operating
income
|
|
138
|
|
107
|
|
Income before provision for income taxes
|
|
12,105
|
|
13,332
|
|
Provision for income
taxes
|
|
4,628
|
|
5,168
|
|
Net income
|
|
$
7,477
|
|
$
8,164
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
Basic
|
|
$
0.26
|
|
$
0.27
|
|
Diluted
|
|
$
0.26
|
|
$
0.27
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
Basic
|
|
28,402
|
|
29,992
|
|
Diluted
|
|
28,402
|
|
29,998
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
0.07
|
|
$
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL
TRUCKLOAD SERVICES, INC.
|
Unaudited Condensed
Consolidated Balance Sheets
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
April 2,
2016
|
|
December 31,
2015
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
11,731
|
|
$
12,930
|
Marketable
securities
|
|
13,378
|
|
13,431
|
Accounts
receivable - net
|
|
139,253
|
|
141,275
|
Other current
assets
|
|
32,254
|
|
35,204
|
Total
current assets
|
|
196,616
|
|
202,840
|
Property and
equipment - net
|
|
206,497
|
|
177,189
|
Other long-term
assets - net
|
|
131,081
|
|
129,470
|
Total
assets
|
|
$ 534,194
|
|
$
509,499
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
Current
liabilities, excluding current maturities of capital
lease obligations and debt
|
|
$ 115,173
|
|
$
91,700
|
Debt -
net
|
|
233,402
|
|
233,414
|
Capital lease
obligations
|
|
293
|
|
1,981
|
Other
long-term liabilities
|
|
48,981
|
|
51,323
|
Total liabilities
|
|
397,849
|
|
378,418
|
Total shareholders' equity
|
|
136,345
|
|
131,081
|
Total liabilities and shareholders' equity
|
|
$ 534,194
|
|
$
509,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL
TRUCKLOAD SERVICES, INC.
|
Unaudited
Summary of Operating Data
|
|
|
|
Thirteen Weeks
Ended
|
April
2,
|
|
March
28,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Transportation
Services:
|
|
|
|
|
|
Average operating
revenues per loaded mile (a)
|
|
$
2.35
|
|
$
2.68
|
|
Average operating
revenues per loaded mile,
|
|
|
|
|
|
|
excluding fuel
surcharges, where separately identifiable (a)
|
|
$
2.21
|
|
$
2.44
|
|
Average operating
revenues per load (a)
|
|
$
895
|
|
$
996
|
|
Average operating
revenues per load, excluding
|
|
|
|
|
|
|
fuel surcharges,
where separately identifiable (a)
|
|
$
843
|
|
$
904
|
|
Average length of
haul (a) (b)
|
|
381
|
|
371
|
|
Number of loads
(a)
|
|
148,354
|
|
146,811
|
|
|
|
|
|
Value Added
Services:
|
|
|
|
|
|
Number of facilities
(c)
|
|
|
|
|
|
|
Customer
provided
|
|
17
|
|
17
|
|
|
Company
leased
|
|
31
|
|
30
|
|
|
Total
|
|
48
|
|
47
|
|
|
|
|
|
|
|
Intermodal
Services:
|
|
|
|
|
|
Drayage (in
thousands)
|
|
$
32,281
|
|
$
29,623
|
|
Domestic Intermodal
(in thousands)
|
|
452
|
|
809
|
|
Depot (in
thousands)
|
|
2,183
|
|
2,507
|
|
Total (in
thousands)
|
|
$
34,916
|
|
$
32,939
|
|
|
|
|
|
|
|
Average operating
revenues per loaded mile
|
|
$
5.07
|
|
$
5.10
|
|
Average operating
revenues per loaded mile,
|
|
|
|
|
|
|
excluding fuel
surcharges, where separately identifiable
|
|
$
4.53
|
|
$
4.17
|
|
Average operating
revenues per load
|
|
$
396
|
|
$
399
|
|
Average operating
revenues per load, excluding
|
|
|
|
|
|
|
fuel surcharges,
where separately identifiable
|
|
$
353
|
|
$
326
|
|
Number of
loads
|
|
81,495
|
|
74,316
|
|
Number of container
yards
|
|
11
|
|
10
|
|
|
|
|
|
|
|
|
|
(a)
|
Excludes operating
data from Universal Logistics Solutions International, Inc., in
order to improve the relevance of the statistical data related to
our brokerage services and improve the comparability to our peer
companies. Also excludes final mile delivery and shuttle
service loads.
|
(b)
|
Average length of
haul is computed using loaded miles, excluding final mile delivery
and shuttle service loads.
|
(c)
|
Excludes storage
yards, terminals and office facilities.
|
UNIVERSAL
TRUCKLOAD SERVICES, INC.
|
Unaudited
Summary of Operating Data - Continued
|
|
|
|
Thirteen Weeks
Ended
|
April
2,
|
|
March
28,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Average
Headcount
|
|
|
|
|
|
Employees
|
|
3,985
|
|
4,254
|
|
Full time
equivalents
|
|
1,913
|
|
1,437
|
|
Total
|
|
5,898
|
|
5,691
|
|
|
|
|
|
|
|
Average number of
tractors
|
|
|
|
|
|
Provided by
owner-operators
|
|
3,178
|
|
3,259
|
|
Owned
|
|
770
|
|
846
|
|
Third party
lease
|
|
36
|
|
35
|
|
Total
|
|
3,984
|
|
4,140
|
|
|
|
|
|
|
|
Operating Revenues
by Segment:
|
|
|
|
|
|
|
|
Transportation
|
|
$
157,546
|
|
$
167,233
|
|
Logistics
|
|
102,557
|
|
96,232
|
|
Other
|
|
291
|
|
96
|
|
|
|
|
$
260,394
|
|
$
263,561
|
|
|
|
|
|
|
|
|
|
Income from
Operations by Segment:
|
|
|
|
|
|
|
|
Transportation
|
|
$
5,888
|
|
$
6,350
|
|
Logistics
|
|
8,549
|
|
8,773
|
|
Other
|
|
(507)
|
|
(56)
|
|
|
|
|
$
13,930
|
|
$
15,067
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
In addition to providing consolidated financial statements based
on generally accepted accounting principles in the United States of America (GAAP), we are
providing additional financial measures that are not required by or
prepared in accordance with GAAP (non-GAAP). We present EBITDA as
supplemental measures of our performance. We define EBITDA as net
income plus (i) interest expense, net, (ii) provision for income
taxes and (iii) depreciation and amortization, and less other
non-operating income, or EBITDA. You are encouraged to evaluate
these adjustments and the reasons we consider them appropriate for
supplemental analysis.
In accordance with the requirements of Regulation G issued by
the Securities and Exchange Commission, we are presenting the most
directly comparable GAAP financial measure and reconciling the
non-GAAP financial measure to the comparable GAAP measure. Set
forth below is a reconciliation of net income, the most comparable
GAAP measure, to EBITDA for each of the periods indicated:
|
|
Thirteen Weeks
Ended
|
|
April
2,
|
|
March
28,
|
|
|
2016
|
|
2015
|
|
|
( in
thousands)
|
EBITDA
|
|
|
|
|
Net income
|
|
$
7,477
|
|
$ 8,164
|
Provision for income
taxes
|
|
4,628
|
|
5,168
|
Interest expense,
net
|
|
1,963
|
|
1,842
|
Depreciation and
amortization
|
|
8,546
|
|
9,038
|
Other non-operating
income
|
|
(138)
|
|
(107)
|
EBITDA
|
|
$
22,476
|
|
$ 24,105
|
|
|
|
|
|
EBITDA margin
(a)
|
|
8.6%
|
|
9.1%
|
|
|
|
|
|
|
|
|
|
|
(a)
|
EBITDA margin is
computed by dividing EBITDA by total operating revenues for each of
the periods indicated.
|
We present EBITDA because we believe it assists investors and
analysts in comparing our performance across reporting periods on a
consistent basis by excluding items that we do not believe are
indicative of our core operating performance.
EBITDA has limitations as an analytical tool. Some of these
limitations are:
- EBITDA does not reflect our cash expenditures, or future
requirements, for capital expenditures or contractual
commitments;
- EBITDA does not reflect changes in, or cash requirements
for, our working capital needs;
- EBITDA does not reflect the significant interest expense,
or the cash requirements necessary to service interest or principal
payments, on our debts;
- Although depreciation and amortization are non-cash
charges, the assets being depreciated and amortized will often have
to be replaced in the future, and EBITDA does not reflect any cash
requirements for such replacements; and
- Other companies in our industry may calculate EBITDA
differently than we do, limiting its usefulness as a comparative
measure.
Because of these limitations, EBITDA should not be considered in
isolation or as a substitute for performance measures calculated in
accordance with GAAP. We compensate for these limitations by
relying primarily on our GAAP results and EBITDA only
supplementally.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/universal-truckload-services-inc-reports-first-quarter-2016-financial-results-300259369.html
SOURCE Universal Truckload Services, Inc.