WARREN, Mich., July 27, 2017 /PRNewswire/ -- Universal
Logistics Holdings, Inc. (NASDAQ: ULH) today reported second
quarter 2017 net income of $2.7
million, or $0.10 per basic
and diluted share, on total operating revenues of $305.2 million. This compares to
$9.0 million, or $0.32 per basic and diluted share, during second
quarter 2016 on total operating revenues of $276.8 million.
Operating revenues from truckload services increased
$2.9 million to $76.7 million, compared to $73.8 million for the same period last year.
Included in truckload revenues in the second quarter 2017 were
$7.1 million of separately-identified
fuel surcharges compared to $5.9
million during the same period last year. During the
quarter, Universal's average operating revenue per load, excluding
fuel surcharges, increased 8.9% primarily due to an increase in
length of haul and an increase in revenue per mile. This
increase was partially offset by a 3.5% decrease in the number of
loads hauled. During the quarter ended July 1, 2017, Universal hauled 80,720 loads
compared to 83,637 during the same period last year.
Revenues for the second quarter 2017 from brokerage services
increased $8.2 million, or 14.5% to
$64.7 million compared to
$56.5 million one year earlier. The
growth is due to increases in both the average operating revenue
per load, excluding fuel surcharges, and in the number of loads
hauled. Universal's average operating revenue per load,
excluding fuel surcharges, increased 2.8% to $1,275 per load, up from $1,240 per load in the second quarter 2016.
The number of brokerage loads hauled increased 18.2% in the second
quarter 2017 to 48,768 compared to 41,254 during the same period
last year.
Intermodal services revenues increased $2.4 million to $38.7
million in the second quarter of 2017, up from $36.3 million during the same period last
year. During the quarter ended July 1,
2017, Universal moved 87,952 intermodal loads compared to
84,370 during the same period last year. Included in
intermodal revenues in the quarter ended July 1, 2017 were also $3.9 million in separately-identified fuel
surcharges compared to $3.3 million
during the same period last year.
Operating revenues from dedicated services in the second quarter
2017 increased $0.3 million to
$24.4 million compared to
$24.1 million one year earlier. The
increase is primarily due to a 2.6% increase average operating
revenue per load, excluding fuel surcharges, which was partially
offset by a 1.4% decrease in the number of loads
hauled.
Value-added services revenues increased $14.5 million to $100.6
million in the second quarter of 2017, compared to
$86.1 million in the same period last
year. Our continued support of major customer vehicle
programs, as well as improvements in our heavy-truck operations
positively impacted top-line revenues in Universal's value-added
services division. Overall, valued-added services grew by
16.8% compared to the same period last year.
Consolidated income from operations decreased $10.4 million to $6.4
million, compared to $16.8
million in second quarter 2016. The overall decrease
is primarily attributable to an $8.0
million loss in our Mexican value-added operations and
higher than anticipated costs supporting one of our major
value-added operations still in launch phase. During the
second quarter 2017, Universal's logistics segment, which includes
value-added and dedicated services, incurred an operating loss of
$2.5 million compared to $10.6 million of operating income in the same
period last year. Income from operations in Universal's
transportation segment, which is primarily comprised of truckload,
brokerage and intermodal services operations, increased 23.2% to
$8.5 million from $6.9 million during the same period last
year.
During the second quarter of 2017, EBITDA decreased $7.6 million to $18.4
million, compared to $26.0
million in the same period last year. As a percentage
of total operating revenues, operating income and EBITDA margins
for the second quarter 2017 were 2.1% and 6.0%, respectively.
These profitability metrics compare to 6.1% and 9.4%, respectively,
in second quarter 2016.
"We are pleased with the results our transportation segment
delivered for us this quarter," stated Jeff
Rogers, Universal's Chief Executive Officer. "Both our
truckload and intermodal operations delivered their strongest
results in over a year, and our brokerage business continues to
grow at a double-digit pace. On the logistics side, with the
transition of an unprofitable Mexican program, one of our largest
domestic value-added programs returning positive results, and a
signs of strong recovery in North American Class 8 production, I am
optimistic for the remainder of 2017 and beyond. We have some hard
work ahead of us, but much of the headwinds have subsided and we
are as committed as ever to the success of Universal, its
customers, and the thousands of employees, agents and
owner-operators we represent."
Universal calculates and reports selected financial metrics in
connection with lending arrangements, or in an effort 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 July 1, 2017, Universal held
cash and cash equivalents totaling $2.0
million, and $14.1 million in
marketable securities. Outstanding debt at the end of the
second quarter 2017 was $251.7
million and capital expenditures totaled $15.6 million.
Universal Logistics Holdings, Inc. also announced today 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 August 7,
2017 and is expected to be paid on August 17, 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 second quarter 2017 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
ET
|
Date:
|
|
Friday, July 28,
2017
|
Call Toll
Free:
|
|
(866)
622-0924
|
International
Dial-in:
|
+1 (660)
422-4956
|
Conference ID:
|
|
42884669
|
A replay of the conference call will be available beginning two
hours after the call through August 24,
2017, by calling (855) 859-2056 (toll free) or +1 (404)
537-3406 (toll) and using conference ID 42884669. 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 truckload,
brokerage, intermodal, dedicated, 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 can be identified by words such as: "expect,"
"anticipate," "intend," "plan," "goal," "seek," "believe,"
"project," "estimate," "future," "likely," "may," "should" and
similar references to future periods. 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
|
|
|
Twenty-six Weeks
Ended
|
|
|
|
July
1,
|
|
|
July
2,
|
|
|
July
1,
|
|
|
July
2,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truckload
services
|
|
$
|
76,744
|
|
|
$
|
73,827
|
|
|
$
|
148,234
|
|
|
$
|
143,648
|
|
Brokerage
services
|
|
|
64,714
|
|
|
|
56,498
|
|
|
|
122,703
|
|
|
|
106,236
|
|
Intermodal
services
|
|
|
38,729
|
|
|
|
36,298
|
|
|
|
74,656
|
|
|
|
71,674
|
|
Dedicated
services
|
|
|
24,375
|
|
|
|
24,053
|
|
|
|
49,271
|
|
|
|
46,136
|
|
Value-added
services
|
|
|
100,637
|
|
|
|
86,137
|
|
|
|
194,777
|
|
|
|
169,513
|
|
Total operating
revenues
|
|
|
305,199
|
|
|
|
276,813
|
|
|
|
589,641
|
|
|
|
537,207
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
transportation and equipment rent
|
|
|
142,600
|
|
|
|
132,012
|
|
|
|
273,827
|
|
|
|
253,677
|
|
Direct personnel and
related benefits
|
|
|
81,238
|
|
|
|
65,903
|
|
|
|
156,782
|
|
|
|
130,418
|
|
Operating supplies and
expenses
|
|
|
31,467
|
|
|
|
25,421
|
|
|
|
60,451
|
|
|
|
50,085
|
|
Commission
expense
|
|
|
8,237
|
|
|
|
8,379
|
|
|
|
15,781
|
|
|
|
16,451
|
|
Occupancy
expense
|
|
|
7,666
|
|
|
|
7,974
|
|
|
|
15,497
|
|
|
|
15,697
|
|
General and
administrative
|
|
|
6,495
|
|
|
|
6,729
|
|
|
|
14,453
|
|
|
|
13,836
|
|
Insurance and
claims
|
|
|
9,538
|
|
|
|
4,486
|
|
|
|
15,396
|
|
|
|
8,658
|
|
Depreciation and
amortization
|
|
|
11,541
|
|
|
|
9,135
|
|
|
|
21,868
|
|
|
|
17,681
|
|
Total operating
expenses
|
|
|
298,782
|
|
|
|
260,039
|
|
|
|
574,055
|
|
|
|
506,503
|
|
Income from
operations
|
|
|
6,417
|
|
|
|
16,774
|
|
|
|
15,586
|
|
|
|
30,704
|
|
Interest expense,
net
|
|
|
(2,481)
|
|
|
|
(2,115)
|
|
|
|
(4,717)
|
|
|
|
(4,078)
|
|
Other non-operating
income
|
|
|
464
|
|
|
|
112
|
|
|
|
532
|
|
|
|
250
|
|
Income before
provision for income taxes
|
|
|
4,400
|
|
|
|
14,771
|
|
|
|
11,401
|
|
|
|
26,876
|
|
Provision for income
taxes
|
|
|
1,661
|
|
|
|
5,724
|
|
|
|
4,344
|
|
|
|
10,352
|
|
Net income
|
|
$
|
2,739
|
|
|
$
|
9,047
|
|
|
$
|
7,057
|
|
|
$
|
16,524
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.10
|
|
|
$
|
0.32
|
|
|
$
|
0.25
|
|
|
$
|
0.58
|
|
Diluted
|
|
$
|
0.10
|
|
|
$
|
0.32
|
|
|
$
|
0.25
|
|
|
$
|
0.58
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
28,443
|
|
|
|
28,414
|
|
|
|
28,439
|
|
|
|
28,408
|
|
Diluted
|
|
|
28,443
|
|
|
|
28,414
|
|
|
|
28,439
|
|
|
|
28,408
|
|
Dividends declared
per common share:
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
$
|
0.14
|
|
|
$
|
0.14
|
|
UNIVERSAL
LOGISTICS HOLDINGS, INC.
|
Unaudited Condensed
Consolidated Balance Sheets
|
(In
thousands)
|
|
|
|
|
July
1,
2017
|
|
|
December
31,
2016
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
2,039
|
|
|
$
|
1,755
|
|
Marketable
securities
|
|
|
14,117
|
|
|
|
14,359
|
|
Accounts receivable -
net
|
|
|
154,976
|
|
|
|
144,712
|
|
Other current
assets
|
|
|
50,474
|
|
|
|
46,625
|
|
Total current
assets
|
|
|
221,606
|
|
|
|
207,451
|
|
Property and equipment
- net
|
|
|
260,776
|
|
|
|
246,277
|
|
Other long-term assets
- net
|
|
|
114,097
|
|
|
|
116,729
|
|
Total
assets
|
|
$
|
596,479
|
|
|
$
|
570,457
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
Current liabilities,
excluding current maturities of debt
|
|
$
|
142,063
|
|
|
$
|
110,061
|
|
Debt - net
|
|
|
250,234
|
|
|
|
261,267
|
|
Other long-term
liabilities
|
|
|
52,976
|
|
|
|
51,397
|
|
Total
liabilities
|
|
|
445,273
|
|
|
|
422,725
|
|
Total shareholders'
equity
|
|
|
151,206
|
|
|
|
147,732
|
|
Total liabilities and
shareholders' equity
|
|
$
|
596,479
|
|
|
$
|
570,457
|
|
UNIVERSAL
LOGISTICS HOLDINGS, INC.
|
Unaudited Summary of
Operating Data
|
|
|
|
|
Thirteen Weeks
Ended
|
|
|
Twenty-six Weeks
Ended
|
|
|
|
July
1,
|
|
|
July
2,
|
|
|
July
1,
|
|
|
July
2,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Truckload
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
loads
|
|
|
80,720
|
|
|
|
83,637
|
|
|
|
160,255
|
|
|
|
162,675
|
|
Average operating
revenue per load, excluding fuel surcharges
|
|
$
|
866
|
|
|
$
|
795
|
|
|
$
|
838
|
|
|
$
|
796
|
|
Average operating
revenue per mile, excluding fuel surcharges
|
|
$
|
2.46
|
|
|
$
|
2.42
|
|
|
$
|
2.41
|
|
|
$
|
2.37
|
|
Average length of
haul
|
|
|
351
|
|
|
|
329
|
|
|
|
347
|
|
|
|
336
|
|
Average number of
tractors
|
|
|
1,959
|
|
|
|
2,000
|
|
|
|
1,944
|
|
|
|
2,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of loads
(a)
|
|
|
48,768
|
|
|
|
41,254
|
|
|
|
91,126
|
|
|
|
79,490
|
|
Average operating
revenue per load, excluding fuel surcharges
(a)
|
|
$
|
1,275
|
|
|
$
|
1,240
|
|
|
$
|
1,270
|
|
|
$
|
1,210
|
|
Average length of haul
(a)
|
|
|
548
|
|
|
|
579
|
|
|
|
572
|
|
|
|
578
|
|
Number of active
carriers
|
|
|
37,020
|
|
|
|
26,268
|
|
|
|
37,020
|
|
|
|
26,268
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermodal
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
loads
|
|
|
87,952
|
|
|
|
84,370
|
|
|
|
171,505
|
|
|
|
166,049
|
|
Average operating
revenue per load, excluding fuel surcharges
|
|
$
|
387
|
|
|
$
|
390
|
|
|
$
|
387
|
|
|
$
|
391
|
|
Average number of
tractors
|
|
|
924
|
|
|
|
914
|
|
|
|
900
|
|
|
|
909
|
|
Number of
depots
|
|
|
12
|
|
|
|
11
|
|
|
|
12
|
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dedicated
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
loads
|
|
|
52,310
|
|
|
|
53,058
|
|
|
|
104,306
|
|
|
|
97,644
|
|
Average operating
revenue per load, excluding fuel surcharges
|
|
$
|
389
|
|
|
$
|
379
|
|
|
$
|
392
|
|
|
$
|
394
|
|
Average operating
revenue per mile, excluding fuel surcharges
|
|
$
|
1.91
|
|
|
$
|
1.98
|
|
|
$
|
1.96
|
|
|
$
|
1.93
|
|
Average length of
haul
|
|
|
203
|
|
|
|
191
|
|
|
|
200
|
|
|
|
204
|
|
Average number of
tractors
|
|
|
812
|
|
|
|
707
|
|
|
|
771
|
|
|
|
729
|
|
(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.
|
UNIVERSAL
LOGISTICS HOLDINGS, INC.
|
Unaudited Summary of
Operating Data - Continued
|
|
|
|
|
Thirteen Weeks
Ended
|
|
|
Twenty-six Weeks
Ended
|
|
|
|
July
1,
|
|
|
July
2,
|
|
|
July
1,
|
|
|
July
2,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Value-added
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of
direct employees
|
|
|
3,931
|
|
|
|
4,167
|
|
|
$
|
4,354
|
|
|
$
|
4,154
|
|
Average number of
full-time equivalents
|
|
|
1,846
|
|
|
|
1,498
|
|
|
|
1,666
|
|
|
|
1,489
|
|
Number of active
programs
|
|
|
50
|
|
|
|
51
|
|
|
|
50
|
|
|
|
51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
by Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
|
|
$
|
175,032
|
|
|
$
|
169,286
|
|
|
$
|
353,428
|
|
|
$
|
326,832
|
|
Logistics
|
|
|
129,850
|
|
|
|
107,229
|
|
|
|
235,585
|
|
|
|
209,786
|
|
Other
|
|
|
317
|
|
|
|
298
|
|
|
|
628
|
|
|
|
589
|
|
Total
|
|
$
|
305,199
|
|
|
$
|
276,813
|
|
|
$
|
589,641
|
|
|
$
|
537,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Operations by Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
|
|
$
|
8,495
|
|
|
$
|
6,919
|
|
|
$
|
14,848
|
|
|
$
|
12,807
|
|
Logistics
|
|
|
(2,525)
|
|
|
|
10,609
|
|
|
|
1,668
|
|
|
|
19,158
|
|
Other
|
|
|
447
|
|
|
|
(754)
|
|
|
|
(930)
|
|
|
|
(1,261)
|
|
Total
|
|
$
|
6,417
|
|
|
$
|
16,774
|
|
|
$
|
15,586
|
|
|
$
|
30,704
|
|
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. 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
|
|
|
Twenty-six Weeks
Ended
|
|
|
|
July
1,
|
|
|
July
2,
|
|
|
July
1,
|
|
|
July
2,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
( in
thousands)
|
|
|
( in
thousands)
|
|
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,739
|
|
|
$
|
9,047
|
|
|
$
|
7,057
|
|
|
$
|
16,524
|
|
Provision for income
taxes
|
|
|
1,661
|
|
|
|
5,724
|
|
|
|
4,344
|
|
|
|
10,352
|
|
Interest expense,
net
|
|
|
2,481
|
|
|
|
2,115
|
|
|
|
4,717
|
|
|
|
4,078
|
|
Depreciation and
amortization
|
|
|
11,541
|
|
|
|
9,135
|
|
|
|
21,868
|
|
|
|
17,681
|
|
EBITDA
|
|
$
|
18,422
|
|
|
$
|
26,021
|
|
|
$
|
37,986
|
|
|
$
|
48,635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA margin
(a)
|
|
|
6.0
|
%
|
|
|
9.4
|
%
|
|
|
6.4
|
%
|
|
|
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.
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SOURCE Universal Logistics Holdings, Inc.