WARREN, Mich., Feb. 23, 2017 /PRNewswire/ -- Universal
Logistics Holdings, Inc. (NASDAQ: ULH) today reported 2016
consolidated net income of $24.2
million, or $0.85 per basic
and diluted share, on total operating revenue of $1.07 billion. Net income in the fourth
quarter of 2016 totaled $2.7 million,
or $0.10 per basic and diluted share,
on total operating revenue of $264.1
million. This compares to $9.3
million of net income on total operating revenue of
$286.0 million in the fourth quarter
of 2015.
Operating revenues from transportation services in the fourth
quarter of 2016 decreased 13.8% to $153.0
million compared to the same period last year. The
$24.5 million decrease reflects a
6.1% year-over-year decline in average operating revenues per load,
excluding fuel surcharges, a 3.1% decrease in the number of loads
hauled, and $2.0 million of lower
fuel surcharges. Top line revenues in Universal's value-added
services increased 7.0% to $76.5
million; however, the increase was muted by a decline in
operations supporting heavy-truck. Value-added revenues in
heavy-truck fell by 38.2% during the quarter, while revenues in
other industries serviced by Universal grew by 13.7%. Revenues from
intermodal services declined 6.5% to $34.6 million in the fourth quarter of
2016. In addition to a $0.7
million decline in depot services, the decrease in
intermodal services reflects a 3.0% decrease in the number of loads
hauled during the quarter and a $1.0
million decrease in fuel surcharges. Intermodal's
average operating revenues per load, excluding fuel surcharges,
remained relatively flat.
Revenues from operations included in Universal's transportation
segment, which is primarily comprised of truckload and intermodal
services, decreased $18.6 million, or
10.4%, to $160.0 million in the
quarter from $178.6 million one year
earlier. Revenues in the logistics segment, which includes
value-added and dedicated transportation services, decreased
$3.2 million, or 3.0%, to
$104.1 million in the quarter, and
included a $10.8 million decline in
heavy-truck.
Consolidated income from operations during the fourth quarter of
2016 decreased $12.7 million to
$5.8 million, compared to
$18.5 million one year earlier.
Persistent industry-wide headwinds negatively impacted results
during the period, where Universal's combined transportation and
intermodal revenues fell by $26.9
million. Fourth quarter results were also compressed due to
$2.7 million of lower operating
income attributable to heavy-truck operations, a $1.2 million charge to bad debt expense for a
customer-related bankruptcy and $0.5
million in losses on the sale of used revenue
equipment. Expressed as a percentage of operating revenue,
income from operations decreased to 2.2% in the fourth quarter
of 2016, compared to 6.5% in the same period last year.
"Our model is strong," stated Jeff
Rogers, Universal's Chief Executive Officer. "We endured a
difficult environment all year, and the fourth quarter was no
exception. Our unique position servicing heavy industrial
customers subjects us to volatility when those end-markets are
depressed; however, it also provides us great upside potential when
those markets recover. Universal's 2016 results did not meet
our expectations, but our strategy remains the same: Simplify,
Focus and Execute. We have undergone quite a transformation
over the past few years; streamlining and rebranding our operating
subsidiaries, staying focused on margins and controlling costs.
Now, it is time to execute. I believe in Universal's business
model and remain confident that we are well positioned for the
years ahead."
Universal calculates and reports selected financial metrics in
connection with lending arrangements, in order 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 December 31, 2016, Universal
held $1.8 million in cash and cash
equivalents and marketable securities totaling $14.4 million. Net outstanding debt at year
end was $261.3 million and fourth
quarter capital expenditures totaled $18.7
million.
Universal Logistics Holdings, Inc. also announced that its 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 March 6, 2017 and is
expected to be paid on March 16,
2017.
Conference call:
We invite investors and analysts to our quarterly earnings
conference call. During the call, Jeff Rogers, Chief Executive Officer,
Jude Beres, Chief Financial Officer,
and Steven Fitzpatrick, Vice
President of Finance and Investor Relations, will discuss
Universal's fourth 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
EST
|
Date:
|
|
Friday, February 24,
2017
|
Call Toll
Free:
|
|
(866)
622-0924
|
International
Dial-in:
|
+1 (660)
422-4956
|
Conference ID:
|
|
54192791
|
A replay of the conference call will be available beginning two
hours after the call through March 24,
2017, by calling (855) 859-2056 (toll free) or +1 (404)
537-3406 (toll) and using conference ID 54192791. The call will
also be available on
investors.universallogistics.com.
About Universal:
Universal Logistics Holdings, 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
LOGISTICS HOLDINGS, INC.
Unaudited Condensed
Consolidated Statements of Income
(In thousands, except
per share data)
|
|
|
|
Thirteen Weeks
Ended
|
|
|
Year
Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
services
|
|
$
|
152,957
|
|
|
$
|
177,466
|
|
|
$
|
629,192
|
|
|
$
|
696,134
|
|
Value-added
services
|
|
|
76,509
|
|
|
|
71,535
|
|
|
|
302,225
|
|
|
|
285,258
|
|
Intermodal
services
|
|
|
34,585
|
|
|
|
36,990
|
|
|
|
141,334
|
|
|
|
147,381
|
|
Total operating
revenues
|
|
|
264,051
|
|
|
|
285,991
|
|
|
|
1,072,751
|
|
|
|
1,128,773
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
transportation and equipment rent
|
|
|
124,266
|
|
|
|
139,706
|
|
|
|
509,775
|
|
|
|
567,558
|
|
Direct personnel and
related benefits
|
|
|
68,044
|
|
|
|
61,279
|
|
|
|
262,659
|
|
|
|
220,653
|
|
Commission
expense
|
|
|
7,682
|
|
|
|
9,832
|
|
|
|
32,350
|
|
|
|
37,844
|
|
Operating
expense
|
|
|
24,147
|
|
|
|
26,899
|
|
|
|
96,612
|
|
|
|
108,523
|
|
Occupancy
expense
|
|
|
8,151
|
|
|
|
6,831
|
|
|
|
31,923
|
|
|
|
27,004
|
|
Selling, general and
administrative
|
|
|
11,850
|
|
|
|
9,786
|
|
|
|
38,426
|
|
|
|
37,510
|
|
Insurance and
claims
|
|
|
4,117
|
|
|
|
4,770
|
|
|
|
17,724
|
|
|
|
21,413
|
|
Depreciation and
amortization
|
|
|
9,945
|
|
|
|
8,424
|
|
|
|
36,702
|
|
|
|
34,873
|
|
Total operating
expenses
|
|
|
258,202
|
|
|
|
267,527
|
|
|
|
1,026,171
|
|
|
|
1,055,378
|
|
Income from
operations
|
|
|
5,849
|
|
|
|
18,464
|
|
|
|
46,580
|
|
|
|
73,395
|
|
Interest expense,
net
|
|
|
(1,953)
|
|
|
|
(3,359)
|
|
|
|
(8,109)
|
|
|
|
(9,180)
|
|
Other non-operating
income (expense)
|
|
|
514
|
|
|
|
(17)
|
|
|
|
934
|
|
|
|
790
|
|
Income before
provision for income taxes
|
|
|
4,410
|
|
|
|
15,088
|
|
|
|
39,405
|
|
|
|
65,005
|
|
Provision for income
taxes
|
|
|
1,687
|
|
|
|
5,782
|
|
|
|
15,161
|
|
|
|
25,004
|
|
Net income
|
|
$
|
2,723
|
|
|
$
|
9,306
|
|
|
$
|
24,244
|
|
|
$
|
40,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.10
|
|
|
$
|
0.33
|
|
|
$
|
0.85
|
|
|
$
|
1.37
|
|
Diluted
|
|
$
|
0.10
|
|
|
$
|
0.33
|
|
|
$
|
0.85
|
|
|
$
|
1.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
28,415
|
|
|
|
28,380
|
|
|
|
28,411
|
|
|
|
29,233
|
|
Diluted
|
|
|
28,415
|
|
|
|
28,382
|
|
|
|
28,411
|
|
|
|
29,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
$
|
0.28
|
|
|
$
|
0.28
|
|
UNIVERSAL
LOGISTICS HOLDINGS, INC.
Unaudited Condensed
Consolidated Balance Sheets
(In
thousands)
|
|
|
|
December 31,
2016
|
|
|
December 31,
2015
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,755
|
|
|
$
|
12,930
|
|
Marketable
securities
|
|
|
14,359
|
|
|
|
13,431
|
|
Accounts receivable -
net
|
|
|
144,712
|
|
|
|
141,275
|
|
Other current
assets
|
|
|
46,625
|
|
|
|
35,204
|
|
Total current
assets
|
|
|
207,451
|
|
|
|
202,840
|
|
Property and equipment
- net
|
|
|
246,277
|
|
|
|
177,189
|
|
Other long-term assets
- net
|
|
|
116,729
|
|
|
|
123,126
|
|
Total
assets
|
|
$
|
570,457
|
|
|
$
|
503,155
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
Current liabilities,
excluding current maturities of capital lease
obligations and debt
|
|
$
|
109,961
|
|
|
$
|
91,700
|
|
Debt - net
|
|
|
261,267
|
|
|
|
233,414
|
|
Capital lease
obligations
|
|
|
192
|
|
|
|
1,981
|
|
Other long-term
liabilities
|
|
|
51,305
|
|
|
|
44,979
|
|
Total liabilities
|
|
|
422,725
|
|
|
|
372,074
|
|
Total shareholders' equity
|
|
|
147,732
|
|
|
|
131,081
|
|
Total liabilities and shareholders' equity
|
|
$
|
570,457
|
|
|
$
|
503,155
|
|
UNIVERSAL
LOGISTICS HOLDINGS, INC.
Unaudited Summary of
Operating Data
|
|
|
|
Thirteen Weeks
Ended
|
|
|
Year
Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Transportation
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average operating
revenues per loaded mile (a)
|
|
$
|
2.45
|
|
|
$
|
2.61
|
|
|
$
|
2.42
|
|
|
$
|
2.69
|
|
Average operating
revenues per loaded mile, excluding fuel
surcharges, where separately identifiable (a)
|
|
$
|
2.29
|
|
|
$
|
2.44
|
|
|
$
|
2.27
|
|
|
$
|
2.47
|
|
Average operating
revenues per load (a)
|
|
$
|
935
|
|
|
$
|
1,023
|
|
|
$
|
916
|
|
|
$
|
1,028
|
|
Average operating
revenues per load, excluding fuel surcharges,
where separately identifiable (a)
|
|
$
|
873
|
|
|
$
|
956
|
|
|
$
|
860
|
|
|
$
|
945
|
|
Average length of haul
(a) (b)
|
|
|
381
|
|
|
|
392
|
|
|
|
379
|
|
|
|
382
|
|
Number of loads
(a)
|
|
|
144,704
|
|
|
|
149,386
|
|
|
|
606,041
|
|
|
|
602,739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Value Added
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of facilities
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer
provided
|
|
|
18
|
|
|
|
17
|
|
|
|
18
|
|
|
|
17
|
|
Company
leased
|
|
|
29
|
|
|
|
32
|
|
|
|
29
|
|
|
|
32
|
|
Total
|
|
|
47
|
|
|
|
49
|
|
|
|
47
|
|
|
|
49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermodal
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drayage (in
thousands)
|
|
$
|
32,409
|
|
|
$
|
34,000
|
|
|
$
|
131,888
|
|
|
$
|
135,062
|
|
Domestic Intermodal
(in thousands)
|
|
|
365
|
|
|
|
469
|
|
|
|
1,620
|
|
|
|
2,108
|
|
Depot (in
thousands)
|
|
|
1,811
|
|
|
|
2,521
|
|
|
|
7,826
|
|
|
|
10,211
|
|
Total (in
thousands)
|
|
$
|
34,585
|
|
|
$
|
36,990
|
|
|
$
|
141,334
|
|
|
$
|
147,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average operating
revenues per loaded mile
|
|
$
|
6.23
|
|
|
$
|
5.42
|
|
|
$
|
5.77
|
|
|
$
|
5.46
|
|
Average operating
revenues per loaded mile, excluding fuel
surcharges, where separately identifiable
|
|
$
|
5.54
|
|
|
$
|
4.69
|
|
|
$
|
5.16
|
|
|
$
|
4.62
|
|
Average operating
revenues per load
|
|
$
|
393
|
|
|
$
|
399
|
|
|
$
|
394
|
|
|
$
|
410
|
|
Average operating
revenues per load, excluding fuel surcharges,
where separately identifiable
|
|
$
|
349
|
|
|
$
|
346
|
|
|
$
|
352
|
|
|
$
|
347
|
|
Number of
loads
|
|
|
82,566
|
|
|
|
85,140
|
|
|
|
335,129
|
|
|
|
329,426
|
|
Number of container
yards
|
|
|
11
|
|
|
|
10
|
|
|
|
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
LOGISTICS HOLDINGS, INC.
Unaudited Summary of
Operating Data - Continued
|
|
|
|
Thirteen Weeks
Ended
|
|
|
Year
Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Average
Headcount:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees
|
|
|
5,828
|
|
|
|
4,396
|
|
|
|
5,573
|
|
|
|
4,397
|
|
Full time
equivalents
|
|
|
2,497
|
|
|
|
1,844
|
|
|
|
2,172
|
|
|
|
1,606
|
|
Total
|
|
|
8,325
|
|
|
|
6,240
|
|
|
|
7,745
|
|
|
|
6,003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of
tractors:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provided by
owner-operators
|
|
|
3,083
|
|
|
|
3,293
|
|
|
|
3,136
|
|
|
|
3,298
|
|
Owned
|
|
|
1,279
|
|
|
|
766
|
|
|
|
1,183
|
|
|
|
811
|
|
Third party
lease
|
|
|
24
|
|
|
|
41
|
|
|
|
16
|
|
|
|
33
|
|
Total
|
|
|
4,386
|
|
|
|
4,100
|
|
|
|
4,335
|
|
|
|
4,142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
by Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
|
|
$
|
160,008
|
|
|
$
|
178,554
|
|
|
$
|
656,496
|
|
|
$
|
721,437
|
|
Logistics
|
|
|
104,052
|
|
|
|
107,230
|
|
|
|
414,948
|
|
|
|
406,822
|
|
Other
|
|
|
(9)
|
|
|
|
207
|
|
|
|
1,307
|
|
|
|
514
|
|
|
|
$
|
264,051
|
|
|
$
|
285,991
|
|
|
$
|
1,072,751
|
|
|
$
|
1,128,773
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Operations by Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
|
|
$
|
5,015
|
|
|
$
|
5,080
|
|
|
$
|
22,399
|
|
|
$
|
28,683
|
|
Logistics
|
|
|
3,136
|
|
|
|
12,222
|
|
|
|
27,653
|
|
|
|
43,848
|
|
Other
|
|
|
(2,302)
|
|
|
|
1,162
|
|
|
|
(3,472)
|
|
|
|
864
|
|
|
|
$
|
5,849
|
|
|
$
|
18,464
|
|
|
$
|
46,580
|
|
|
$
|
73,395
|
|
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, 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
|
|
|
Year
Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
( in
thousands)
|
|
|
( in
thousands)
|
|
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,723
|
|
|
$
|
9,306
|
|
|
$
|
24,244
|
|
|
$
|
40,001
|
|
Provision for income
taxes
|
|
|
1,687
|
|
|
|
5,782
|
|
|
|
15,161
|
|
|
|
25,004
|
|
Interest expense,
net
|
|
|
1,953
|
|
|
|
3,359
|
|
|
|
8,109
|
|
|
|
9,180
|
|
Depreciation and
amortization
|
|
|
9,945
|
|
|
|
8,424
|
|
|
|
36,702
|
|
|
|
34,873
|
|
EBITDA
|
|
$
|
16,308
|
|
|
$
|
26,871
|
|
|
$
|
84,216
|
|
|
$
|
109,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA margin
(a)
|
|
|
6.2%
|
|
|
|
9.4%
|
|
|
|
7.9%
|
|
|
|
9.7%
|
|
|
|
(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-logistics-holdings-inc-reports-2016-financial-results-300412884.html
SOURCE Universal Logistics Holdings, Inc.