- First Quarter 2023 Operating Revenues: $437.4 million, 16.5% decrease
- First Quarter 2023 Operating Income: $38.2 million, 34.0% decrease
- First Quarter 2023 Earnings Per Share: $0.95 per share, 39.1% decrease
- Declares Quarterly Dividend: $0.105 per share
WARREN,
Mich., April 27, 2023 /PRNewswire/ -- Universal
Logistics Holdings, Inc. (NASDAQ: ULH) today reported consolidated
first quarter 2023 net income of $24.9
million, or $0.95 per basic
and diluted share, on total operating revenues of $437.4 million. This compares to net income of
$42.0 million, or $1.56 per basic and diluted share, during first
quarter 2022 on total operating revenues of $523.9 million.
In the first quarter 2023, Universal's operating income
decreased $19.6 million to
$38.2 million, compared to
$57.8 million in the first quarter
one year earlier. Universal's first quarter 2023 operating results
were negatively impacted by a $1.2
million pre-tax charge for settlement of an auto liability
claim in excess of policy limits. As a percentage of operating
revenue, operating margin for the first quarter 2023 was 8.7%,
compared to 11.0% during the same period last year. EBITDA, a
non-GAAP measure, decreased $18.3
million during the first quarter 2023 to $56.7 million, compared to $75.0 million one year earlier. As a percentage
of operating revenue, EBITDA margin for the first quarter 2023 was
13.0%, compared to 14.3% during the same period last year.
"Given an extremely challenging transportation backdrop, I am
encouraged by the solid operating results Universal reported in the
first quarter of 2023," stated Universal's CEO Tim Phillips. "Our diversification strategy is
increasingly evident during a transportation down-cycle as our
contract logistics segment was the cornerstone of Universal's
financial performance in the first quarter. We continue to
experience robust demand in our contract logistics segment,
particularly in support of North American automotive production,
and we anticipate firm demand through the remainder of the year.
Our intermodal, trucking and company-managed brokerage segments
experienced broad declines as weak import volumes, elevated
inventory levels and excess capacity contributed to downward
pressure on freight volumes and rates. While there are clearly
headwinds in the transportation space, we believe our business
model is sound, and we are well positioned when a recovery in the
freight cycle begins."
Segment Information:
Contract Logistics
- First Quarter 2023 Operating Revenues: $211.3 million, 4.8% increase
- First Quarter 2023 Operating Income: $27.8 million, 13.1% operating margin
In the contract logistics segment, which includes our
value-added and dedicated services, first quarter 2023 operating
revenues increased 4.8% to $211.3
million, compared to $201.6
million for the same period last year. At the end of
the first quarter 2023, we managed 65 value-added programs compared
to 63 at the end of the first quarter 2022. Included in contract
logistics segment revenues were $9.7
million in separately identified fuel surcharges from
dedicated transportation services, compared to $8.8 million during the same period last year.
First quarter 2023 income from operations increased $4.3 million to $27.8
million, compared to $23.5
million during the same period last year. As a percentage of
revenue, operating margin in the contract logistics segment for the
first quarter 2023 was 13.1%, compared to 11.6% during the same
period last year.
Intermodal
- First Quarter 2023 Operating Revenues: $111.0 million, 29.6% decrease
- First Quarter 2023 Operating Income: $6.8 million, 6.1% operating margin
Operating revenues in the intermodal segment decreased 29.6% to
$111.0 million in the first quarter
2023, compared to $157.6 million for
the same period last year. Included in intermodal segment revenues
for the recently completed quarter were $17.1 million in separately identified fuel
surcharges, compared to $18.2 million
during the same period last year. Intermodal segment revenues also
include other accessorial charges such as detention, demurrage and
storage, which totaled $26.0 million
during the first quarter 2023, compared to $36.2 million one year earlier. The average
operating revenue per load, excluding fuel surcharges, decreased
18.7% and load volumes fell an additional 20.7% on a year-over-year
basis. First quarter 2023 income from operations decreased
$16.2 million to $6.8 million, compared to $23.0 million during the same period last year.
As a percentage of revenue, operating margin in the intermodal
segment for the first quarter 2023 was 6.1%, compared to 14.6% one
year earlier.
Trucking
- First Quarter 2023 Operating Revenues: $79.7 million, 18.2% decrease
- First Quarter 2023 Operating Income: $3.8 million, 4.8% operating margin
In the trucking segment, first quarter 2023 operating revenues
decreased 18.2% to $79.7 million,
compared to $97.5 million for the
same period last year. First quarter 2023 trucking segment revenues
included $34.7 million of brokerage
services, compared to $42.0 million
during the same period last year. Also included in our trucking
segment revenues were $7.2 million in
separately identified fuel surcharges during the first quarter
2023, compared to $7.5 million in
fuel surcharges during the same period last year. On a
year-over-year basis, the average operating revenue per load,
excluding fuel surcharges, decreased 8.8% and load volumes declined
11.8%. Income from operations in the first quarter 2023 decreased
$3.6 million to $3.8 million compared to $7.4 million during the same period last year. As
a percentage of revenue, operating margin in the trucking segment
for the first quarter 2023 was 4.8% compared to 7.6% during the
same period last year.
Company-managed Brokerage
- First Quarter 2023 Operating Revenues: $34.0 million, 47.9% decrease
- First Quarter 2023 Operating (Loss): $(0.4) million, (1.1)% operating margin
First quarter 2023 operating revenues in the company-managed
brokerage segment decreased 47.9% to $34.0
million compared to $65.2
million for the same period last year. On a year-over-year
basis, average operating revenue per load and load volumes in the
company-managed brokerage segment decreased 22.1% and 18.9%,
respectively. In the first quarter 2023, the company-managed
brokerage segment experienced an operating loss of $(0.4) million compared to operating income of
$3.9 million one year earlier. The
first quarter 2023 operating results included a $1.2 million charge for settlement of an auto
liability claim in excess of policy limits. As a percentage of
revenue, operating margin for the first quarter 2023 was (1.1)%
compared to 5.9% during the same period last year. The claims
charge recorded in the first quarter 2023 adversely impacted the
company-managed brokerage segment's operating margin by 350 basis
points.
Cash Dividend
Universal Logistics Holdings, Inc. also announced today that its
Board of Directors has declared a cash dividend of $0.105 per share of common stock. The
dividend is payable to shareholders of record at the close of
business on June 5, 2023 and is
expected to be paid on July 3,
2023.
Other Matters
As of April 1, 2023, Universal
held cash and cash equivalents totaling $76.8 million, and $10.0
million in marketable securities. Outstanding debt at the
end of the first quarter 2023 was $381.9
million and capital expenditures totaled $31.3 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, April 28,
2023
|
Call Toll
Free:
|
(877)
270-2148
|
International
Dial-in:
|
+1 (412)
902-6510
|
A replay of the conference call will be available through
May 5, 2023, by calling (877)
344-7529 (toll free) or +1 (412) 317-0088 (toll) and using encore
replay code 2912510. The call will also be available on
investors.universallogistics.com.
About Universal:
Universal Logistics Holdings, Inc. ("Universal") is a holding
company that owns subsidiaries engaged in providing a variety of
customized transportation and logistics solutions throughout
the United States, and in
Mexico, Canada and Colombia. Our operating
subsidiaries provide customers with supply chain solutions that can
be scaled to meet their changing demands and volumes. Universal's
consolidated subsidiaries offer customers a broad array of services
across the entire supply chain, including truckload, brokerage,
intermodal, dedicated, and value-added services. In this press
release, the terms "us," "we," "our," or the "Company" refer to
Universal and its consolidated subsidiaries.
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," "prospect," "seek," "believe," "targets,"
"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 Universal's reports and filings with the
Securities and Exchange Commission. Universal 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
1,
|
|
|
April
2,
|
|
|
|
2023
|
|
|
2022
|
|
Operating
revenues:
|
|
|
|
|
|
|
Truckload
services
|
|
$
|
46,401
|
|
|
$
|
57,483
|
|
Brokerage
services
|
|
|
68,673
|
|
|
|
107,172
|
|
Intermodal
services
|
|
|
111,026
|
|
|
|
157,613
|
|
Dedicated
services
|
|
|
85,232
|
|
|
|
75,487
|
|
Value-added
services
|
|
|
126,064
|
|
|
|
126,106
|
|
Total operating
revenues
|
|
|
437,396
|
|
|
|
523,861
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Purchased
transportation and equipment rent
|
|
|
156,085
|
|
|
|
232,131
|
|
Direct personnel and
related benefits
|
|
|
139,752
|
|
|
|
136,667
|
|
Operating supplies and
expenses
|
|
|
46,189
|
|
|
|
42,124
|
|
Commission
expense
|
|
|
8,172
|
|
|
|
10,024
|
|
Occupancy
expense
|
|
|
11,152
|
|
|
|
10,195
|
|
General and
administrative
|
|
|
11,256
|
|
|
|
10,063
|
|
Insurance and
claims
|
|
|
8,079
|
|
|
|
8,581
|
|
Depreciation and
amortization
|
|
|
18,515
|
|
|
|
16,228
|
|
Total operating
expenses
|
|
|
399,200
|
|
|
|
466,013
|
|
Income from
operations
|
|
|
38,196
|
|
|
|
57,848
|
|
Interest expense,
net
|
|
|
(4,975)
|
|
|
|
(2,433)
|
|
Other non-operating
income
|
|
|
15
|
|
|
|
953
|
|
Income before income
taxes
|
|
|
33,236
|
|
|
|
56,368
|
|
Provision for income
taxes
|
|
|
8,360
|
|
|
|
14,360
|
|
Net income
|
|
$
|
24,876
|
|
|
$
|
42,008
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
Basic
|
|
$
|
0.95
|
|
|
$
|
1.56
|
|
Diluted
|
|
$
|
0.95
|
|
|
$
|
1.56
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
26,281
|
|
|
|
26,864
|
|
Diluted
|
|
|
26,314
|
|
|
|
26,865
|
|
|
|
|
|
|
|
|
Dividends declared per
common share:
|
|
$
|
0.105
|
|
|
$
|
0.105
|
|
UNIVERSAL LOGISTICS
HOLDINGS, INC.
Unaudited Condensed
Consolidated Balance Sheets
(In
thousands)
|
|
|
|
|
|
April 1,
2023
|
|
|
December 31,
2022
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
76,775
|
|
|
$
|
47,181
|
|
Marketable
securities
|
|
|
9,987
|
|
|
|
10,000
|
|
Accounts receivable -
net
|
|
|
332,407
|
|
|
|
350,720
|
|
Other current
assets
|
|
|
54,657
|
|
|
|
51,751
|
|
Total current
assets
|
|
|
473,826
|
|
|
|
459,652
|
|
Property and equipment
- net
|
|
|
406,473
|
|
|
|
391,154
|
|
Other long-term assets
- net
|
|
|
355,001
|
|
|
|
352,872
|
|
Total
assets
|
|
$
|
1,235,300
|
|
|
$
|
1,203,678
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
Current liabilities,
excluding current maturities of debt
|
|
$
|
232,759
|
|
|
$
|
221,598
|
|
Debt - net
|
|
|
377,724
|
|
|
|
378,500
|
|
Other long-term
liabilities
|
|
|
156,518
|
|
|
|
156,650
|
|
Total
liabilities
|
|
|
767,001
|
|
|
|
756,748
|
|
Total shareholders'
equity
|
|
|
468,299
|
|
|
|
446,930
|
|
Total liabilities and
shareholders' equity
|
|
$
|
1,235,300
|
|
|
$
|
1,203,678
|
|
UNIVERSAL LOGISTICS
HOLDINGS, INC.
Unaudited Summary of
Operating Data
|
|
|
|
Thirteen Weeks
Ended
|
|
|
|
April
1,
|
|
|
April
2,
|
|
|
|
2023
|
|
|
2022
|
|
Contract Logistics
Segment:
|
|
|
|
|
|
|
Average number of
value-added direct employees
|
|
|
5,494
|
|
|
|
5,096
|
|
Average number of
value-added full-time equivalents
|
|
|
812
|
|
|
|
1,584
|
|
Number of active
value-added programs
|
|
|
65
|
|
|
|
63
|
|
|
|
|
|
|
|
|
Intermodal
Segment:
|
|
|
|
|
|
|
Number of
loads
|
|
|
122,299
|
|
|
|
154,207
|
|
Average operating
revenue per load, excluding fuel surcharges
|
|
$
|
567
|
|
|
$
|
697
|
|
Average number of
tractors
|
|
|
2,123
|
|
|
|
2,124
|
|
Number of
depots
|
|
|
9
|
|
|
|
12
|
|
|
|
|
|
|
|
|
Trucking
Segment:
|
|
|
|
|
|
|
Number of
loads
|
|
|
44,855
|
|
|
|
50,860
|
|
Average operating
revenue per load, excluding fuel surcharges
|
|
$
|
1,607
|
|
|
$
|
1,762
|
|
Average length of
haul
|
|
|
399
|
|
|
|
403
|
|
Average number of
tractors
|
|
|
894
|
|
|
|
1,000
|
|
|
|
|
|
|
|
|
Company-Managed
Brokerage Segment:
|
|
|
|
|
|
|
Number of loads
(a)
|
|
|
19,956
|
|
|
|
24,610
|
|
Average operating
revenue per load (a)
|
|
$
|
1,696
|
|
|
$
|
2,176
|
|
Average length of haul
(a)
|
|
|
619
|
|
|
|
574
|
|
|
|
(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.
|
UNIVERSAL LOGISTICS
HOLDINGS, INC.
Unaudited Summary of
Operating Data - Continued
(Dollars in
thousands)
|
|
|
|
Thirteen Weeks
Ended
|
|
|
|
April
1,
|
|
|
April
2,
|
|
|
|
2023
|
|
|
2022
|
|
Operating Revenues
by Segment:
|
|
|
|
|
|
|
Contract
logistics
|
|
$
|
211,296
|
|
|
$
|
201,593
|
|
Intermodal
|
|
|
111,026
|
|
|
|
157,613
|
|
Trucking
|
|
|
79,715
|
|
|
|
97,485
|
|
Company-managed
brokerage
|
|
|
33,956
|
|
|
|
65,206
|
|
Other
|
|
|
1,403
|
|
|
|
1,964
|
|
Total
|
|
$
|
437,396
|
|
|
$
|
523,861
|
|
|
|
|
|
|
|
|
Income from
Operations by Segment:
|
|
|
|
|
|
|
Contract
logistics
|
|
$
|
27,781
|
|
|
$
|
23,475
|
|
Intermodal
|
|
|
6,812
|
|
|
|
23,010
|
|
Trucking
|
|
|
3,789
|
|
|
|
7,419
|
|
Company-managed
brokerage
|
|
|
(375)
|
|
|
|
3,863
|
|
Other
|
|
|
189
|
|
|
|
81
|
|
Total
|
|
$
|
38,196
|
|
|
$
|
57,848
|
|
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. We define EBITDA margin as EBITDA as a percentage of
total operating revenues. 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
1,
|
|
|
April
2,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
( in
thousands)
|
|
EBITDA
|
|
|
|
|
|
|
Net income
|
|
$
|
24,876
|
|
|
$
|
42,008
|
|
Income tax
expense
|
|
|
8,360
|
|
|
|
14,360
|
|
Interest expense,
net
|
|
|
4,975
|
|
|
|
2,433
|
|
Depreciation
|
|
|
15,330
|
|
|
|
12,648
|
|
Amortization
|
|
|
3,185
|
|
|
|
3,580
|
|
EBITDA
|
|
$
|
56,726
|
|
|
$
|
75,029
|
|
|
|
|
|
|
|
|
EBITDA margin
(a)
|
|
|
13.0
|
%
|
|
|
14.3
|
%
|
|
|
(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.