WARREN, Mich., April 30, 2020 /PRNewswire/ -- Universal
Logistics Holdings, Inc. (NASDAQ: ULH), a leading asset-light
provider of customized transportation and logistics solutions,
today reported consolidated first quarter 2020 net income of
$12.2 million, or $0.45 per basic and diluted share, on total
operating revenues of $382.2 million.
This compares to $17.3 million, or
$0.61 per basic and diluted share,
during first quarter 2019 on total operating revenues of
$377.4 million. Included in
first quarter 2020 results were $3.4
million of pre-tax holding losses, or $0.09 per share, on marketable securities due to
changes in fair value recognized in income. This compares to
$0.9 million of pre-tax holding gains
in the first quarter of 2019.
In the first quarter 2020, Universal reported operating income
of $23.9 million compared to
$26.5 million in the first quarter
one year earlier. As a percentage of operating revenue, operating
income margin for the first quarter 2020 was 6.3% compared to 7.0%
during the same period last year. EBITDA, a non-GAAP measure,
decreased by $4.6 million during the
first quarter 2020 to $39.8 million,
compared to $44.4 million one year
earlier. As a percentage of operating revenue, EBITDA margin
for the first quarter 2020 was 10.4% compared to 11.8% during the
same period last year.
"Given the deteriorating operating environment caused largely by
the COVID-19 pandemic, Universal put up some pretty solid results
in the first quarter of 2020," stated Tim
Phillips, Universal's Chief Executive Officer. "We
started off the year with high expectations, but as the virus
overwhelmed our international trading partners, particularly
China, and then rapidly spread
here at home, it became increasingly apparent that the negative
impact would last longer than everyone originally
predicted.
"From a service line perspective, the pandemic has impacted and
continues to impact each one differently. For example, our
intermodal drayage operations supporting the ports in Southern California were impacted early as
slower than normal port activity extended through the normal
Chinese New Year and beyond. The spread of COVID-19 eventually
caused China to shut down much of
its manufacturing and exporting activities, and the anticipated
spike in post-Chinese New Year activity never materialized.
As the virus hit our shores, the resulting pandemic led to a
significant decline in domestic demand, and a spike in
blank-sailings. With loads down over 40%, our Southern California intermodal operations
experienced first quarter 2020 revenue declines of $8.2 million and $2.7
million in lower operating income compared to the same
period last year.
"Our truckload transportation services were hardest hit much
later in the quarter as demand fell across many of the industries
we serve, including retail, automotive, industrial, and steel and
metals. There were a few bright spots, however, as demand for
consumer goods, including food and beverage, remained robust
throughout the quarter. Although the timing of a recovery
remains uncertain, as stay-at-home orders are lifted, we expect
retail and manufacturing activity to come back on-line and the
demand for transportation services supporting them to
increase.
"One of the most significant headwinds impacting Universal came
in late March with the shuttering of North American automotive and
heavy-truck production. In connection with numerous plant closings,
our dedicated transportation and value-added services supporting
these operations came to a standstill. We remained in constant
communication with our customers, and as decisions to close
operations were announced, we quickly aligned our staffing levels
to match customer requirements. This meant cost cutting and
furloughing employees across our workforce. While several of
our value-added service contracts contain fixed and variable fees,
we anticipate that the loss of production will significantly impact
our dedicated transportation and value-added services until
commercial activity returns. We estimate the loss of customer
production during the last two weeks of the quarter to have
reduced our revenue and operating income by $8.3 million and $2.6
million, respectively.
"I am encouraged to report we have heavy-truck production
gearing up at one of our customer's facilities, and based on the
current outlook, we expect most North American automotive and
heavy-truck operations we support to resume over the next several
weeks. While we do anticipate fewer shifts and lower
production compared to pre-COVID-19 levels, we expect to be in a
position to support production ramp-up and believe Universal's
variable cost model will allow us to grow profitability during the
recovery.
"Given the current operating environment and the uncertainty
caused by the COVID-19 pandemic, we are withdrawing our previously
issued earnings outlook for 2020. We are also temporarily
suspending our regular quarterly dividend. We have implemented
numerous cost-saving initiatives across the organization and
anticipate scaling back our planned capital expenditures for the
remainder of 2020. While we expect there to be near-term
challenges, I believe we have deployed the right strategies to
ensure Universal can weather these uncertain times and position
ourselves for long-term success. We remain committed to doing
our part to make certain the critical goods and services the
country needs are delivered, while staying focused on the safety
and well-being of our employees, contractors and customers."
Operating revenues from truckload services decreased
$6.8 million to $58.9 million, compared to $65.7 million for the same period last year.
Included in truckload revenues for the recently completed quarter
were $3.0 million in separately
identified fuel surcharges compared to $6.8
million during the same period last year. The decrease
in truckload services reflects a 7.2% decrease in the number of
loads hauled, which was partially offset by a 1.8% increase in
average operating revenue per load, excluding fuel surcharges.
Brokerage service revenue was flat in the first quarter 2020
compared to the same period last year at $85.9 million. During the first quarter 2020, the
number of brokerage loads moved increased 13.9%, while the average
operating revenue per load decreased 10.1% over the same period
last year.
Intermodal services revenues increased $19.2 million to $110.3
million in the first quarter 2020, up from $91.2 million during the same period last year.
Intermodal revenues for the recently completed quarter includes
$28.0 million of incremental revenues
from acquired companies. During the first quarter 2020
intermodal fuel surcharges totaled $13.6
million, compared to $10.6
million during the same period last year. The increase in
intermodal services reflects a 19.7% increase in the number of
loads hauled, while the average operating revenue per load,
excluding fuel surcharges, was relatively consistent on a year over
year basis.
First quarter 2020 operating revenues from dedicated services
decreased to $31.6 million compared
to $37.0 million one year earlier.
Dedicated services revenues included $3.5
million in separately identified fuel surcharges in the
first quarter 2020 compared to $4.6
million during the same period last year. The decrease
was primarily attributable the shutdown of North American
automotive manufacturing in the last two weeks of the
quarter.
Overall, revenues from value-added services decreased
$2.2 million during the first quarter
2020 to $95.5 million.
This compares to $97.7 million from
value-added services one year earlier. Included in the
decrease was $6.3 million from
operations supporting heavy-truck customers, while those supporting
passenger vehicle programs outperformed last year. Both
platforms were adversely impacted by the shutdown of North American
automotive and heavy-truck manufacturing in the last two weeks of
the quarter.
During the first quarter 2020, the transportation segment, which
is primarily comprised of truckload, brokerage and intermodal
services operations, reported operating income of $12.1 million on total operating revenues of
$254.7 million. The transportation
segment was negatively impacted by a significant decline in drayage
activity in our Southern
California intermodal operations during the first quarter
2020. In the logistics segment, which includes value-added and
dedicated services, first quarter 2020 income from operations was
$11.7 million on total operating
revenues of $127.0 million. The
shutdown of North American automotive and heavy-truck manufacturing
in the last two weeks of the quarter adversely impacted our
logistics segment results.
As of April 4, 2020, Universal
held cash and cash equivalents totaling $8.0
million and $6.3 million in
marketable securities. Outstanding debt at the end of the first
quarter 2020 was $480.8 million and
capital expenditures totaled $32.8
million.
Universal calculates and reports selected financial metrics not
only for purposes of our lending arrangements but also 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."
Conference call:
We invite investors and analysts to our quarterly earnings
conference call.
Quarterly Earnings Conference Call Dial-in Details:
Time: 10:00 a.m. Eastern Time
Date: Friday, May 1,
2020
Call Toll Free: (866) 622-0924
International Dial-in: +1 (660) 422-4956
Conference ID: 5286964
A replay of the conference call will be available beginning two
hours after the call through June 5,
2020, by calling (855) 859-2056 (toll free) or +1 (404)
537-3406 (toll) and using conference ID 5286964. The call will also
be available on investors.universallogistics.com.
Source: Universal Logistics Holdings, Inc.
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
|
|
|
|
April
4,
|
|
|
March
30,
|
|
|
|
2020
|
|
|
2019
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
Truckload
services
|
|
$
|
58,898
|
|
|
$
|
65,671
|
|
Brokerage
services
|
|
|
85,900
|
|
|
|
85,867
|
|
Intermodal
services
|
|
|
110,322
|
|
|
|
91,168
|
|
Dedicated
services
|
|
|
31,579
|
|
|
|
37,021
|
|
Value-added
services
|
|
|
95,463
|
|
|
|
97,679
|
|
Total operating
revenues
|
|
|
382,162
|
|
|
|
377,406
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Purchased
transportation and equipment rent
|
|
|
180,856
|
|
|
|
177,325
|
|
Direct personnel and
related benefits
|
|
|
97,388
|
|
|
|
93,167
|
|
Operating supplies and
expenses
|
|
|
30,695
|
|
|
|
30,770
|
|
Commission
expense
|
|
|
7,170
|
|
|
|
7,836
|
|
Occupancy
expense
|
|
|
8,831
|
|
|
|
9,284
|
|
General and
administrative
|
|
|
8,924
|
|
|
|
9,241
|
|
Insurance and
claims
|
|
|
4,872
|
|
|
|
6,352
|
|
Depreciation and
amortization
|
|
|
19,518
|
|
|
|
16,918
|
|
Total operating
expenses
|
|
|
358,254
|
|
|
|
350,893
|
|
Income from
operations
|
|
|
23,908
|
|
|
|
26,513
|
|
Interest expense,
net
|
|
|
(4,209)
|
|
|
|
(4,369)
|
|
Other non-operating
income
|
|
|
(3,605)
|
|
|
|
953
|
|
Income before income
taxes
|
|
|
16,094
|
|
|
|
23,097
|
|
Income tax
expense
|
|
|
3,931
|
|
|
|
5,800
|
|
Net income
|
|
$
|
12,163
|
|
|
$
|
17,297
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.45
|
|
|
$
|
0.61
|
|
Diluted
|
|
$
|
0.45
|
|
|
$
|
0.61
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
27,223
|
|
|
|
28,380
|
|
Diluted
|
|
|
27,223
|
|
|
|
28,381
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share:
|
|
$
|
0.105
|
|
|
$
|
0.105
|
|
UNIVERSAL
LOGISTICS HOLDINGS, INC.
|
Unaudited Condensed
Consolidated Balance Sheets
|
(In
thousands)
|
|
|
|
April
4,
2020
|
|
|
December
31,
2019
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
7,995
|
|
|
$
|
7,726
|
|
Marketable
securities
|
|
|
6,320
|
|
|
|
9,369
|
|
Accounts receivable -
net
|
|
|
219,229
|
|
|
|
210,534
|
|
Other current
assets
|
|
|
42,449
|
|
|
|
44,214
|
|
Total current
assets
|
|
|
275,993
|
|
|
|
271,843
|
|
Property and equipment
- net
|
|
|
355,381
|
|
|
|
339,823
|
|
Other long-term assets
- net
|
|
|
377,081
|
|
|
|
376,331
|
|
Total
assets
|
|
$
|
1,008,455
|
|
|
$
|
987,997
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
Current liabilities,
excluding current maturities of debt
|
|
$
|
185,690
|
|
|
$
|
192,099
|
|
Debt - net
|
|
|
478,781
|
|
|
|
457,612
|
|
Other long-term
liabilities
|
|
|
135,321
|
|
|
|
133,069
|
|
Total
liabilities
|
|
|
799,792
|
|
|
|
782,780
|
|
Total shareholders'
equity
|
|
|
208,663
|
|
|
|
205,217
|
|
Total liabilities and
shareholders' equity
|
|
$
|
1,008,455
|
|
|
$
|
987,997
|
|
UNIVERSAL
LOGISTICS HOLDINGS, INC.
|
Unaudited Summary of
Operating Data
|
|
|
|
Thirteen Weeks
Ended
|
|
|
|
April
4,
|
|
|
March
30,
|
|
|
|
2020
|
|
|
2019
|
|
Truckload
Services:
|
|
|
|
|
|
|
|
|
Number of
loads
|
|
|
56,687
|
|
|
|
61,092
|
|
Average operating
revenue per load, excluding fuel surcharges
|
|
$
|
957
|
|
|
$
|
940
|
|
Average operating
revenue per mile, excluding fuel surcharges
|
|
$
|
3.22
|
|
|
$
|
2.78
|
|
Average length of
haul
|
|
|
297
|
|
|
|
338
|
|
Average number of
tractors
|
|
|
1,425
|
|
|
|
1,644
|
|
|
|
|
|
|
|
|
|
|
Brokerage
Services:
|
|
|
|
|
|
|
|
|
Number of loads
(a)
|
|
|
61,052
|
|
|
|
53,609
|
|
Average operating
revenue per load (a)
|
|
$
|
1,376
|
|
|
$
|
1,531
|
|
Average length of haul
(a)
|
|
|
613
|
|
|
|
660
|
|
|
|
|
|
|
|
|
|
|
Intermodal
Services:
|
|
|
|
|
|
|
|
|
Number of
loads
|
|
|
197,783
|
|
|
|
165,177
|
|
Average operating
revenue per load, excluding fuel surcharges
|
|
$
|
493
|
|
|
$
|
495
|
|
Average number of
tractors
|
|
|
2,530
|
|
|
|
1,658
|
|
Number of
depots
|
|
|
15
|
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
Dedicated
Services:
|
|
|
|
|
|
|
|
|
Number of loads
(b)
|
|
|
139,515
|
|
|
|
138,987
|
|
|
|
(a)
|
Excludes operating
data from freight forwarding division in order to improve the
relevance of the statistical data related to our brokerage services
and improve the comparability to our peer companies.
|
(b)
|
Includes shuttle
moves.
|
UNIVERSAL
LOGISTICS HOLDINGS, INC.
|
Unaudited Summary of
Operating Data - Continued
|
(Dollars in
thousands)
|
|
|
|
Thirteen Weeks
Ended
|
|
|
|
April
4,
|
|
|
March
30,
|
|
|
|
2020
|
|
|
2019
|
|
Value-added
Services
|
|
|
|
|
|
|
|
|
Average number of
direct employees
|
|
|
3,652
|
|
|
|
3,699
|
|
Average number of
full-time equivalents
|
|
|
1,431
|
|
|
|
1,771
|
|
Number of active
programs
|
|
|
56
|
|
|
|
49
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
by Segment:
|
|
|
|
|
|
|
|
|
Transportation
|
|
$
|
254,673
|
|
|
$
|
246,704
|
|
Logistics
|
|
|
127,042
|
|
|
|
130,399
|
|
Other
|
|
|
447
|
|
|
|
303
|
|
Total
|
|
$
|
382,162
|
|
|
$
|
377,406
|
|
|
|
|
|
|
|
|
|
|
Income from
Operations by Segment:
|
|
|
|
|
|
|
|
|
Transportation
|
|
$
|
12,103
|
|
|
$
|
12,532
|
|
Logistics
|
|
|
11,690
|
|
|
|
13,820
|
|
Other
|
|
|
115
|
|
|
|
161
|
|
Total
|
|
$
|
23,908
|
|
|
$
|
26,513
|
|
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 and
EBITDA margin, each a non-GAAP measure, as supplemental measures of
our performance. We define EBITDA as net income plus (i) interest
expense, net, (ii) income taxes, (iii) depreciation, and (iv)
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
|
|
|
|
April
4,
|
|
|
March
30,
|
|
|
|
2020
|
|
|
2019
|
|
|
|
(in
thousands)
|
|
EBITDA
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
12,163
|
|
|
$
|
17,297
|
|
Income tax
expense
|
|
|
3,931
|
|
|
|
5,800
|
|
Interest expense,
net
|
|
|
4,209
|
|
|
|
4,369
|
|
Depreciation
|
|
|
15,442
|
|
|
|
12,934
|
|
Amortization
|
|
|
4,076
|
|
|
|
3,984
|
|
EBITDA
|
|
$
|
39,821
|
|
|
$
|
44,384
|
|
|
|
|
|
|
|
|
|
|
EBITDA margin
(a)
|
|
|
10.4
|
%
|
|
|
11.8
|
%
|
|
|
(a)
|
EBITDA margin is
computed by dividing EBITDA by total operating revenues for each of
the periods indicated.
|
We present EBITDA and EBITDA margin because we believe they
assist 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 and EBITDA margin 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 only
supplementally on EBITDA and EBITDA margin.
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SOURCE Universal Logistics Holdings, Inc.