Attached files

file filename
8-K - 8-K - UNIVERSAL LOGISTICS HOLDINGS, INC.d762821d8k.htm

Exhibit 99.1

 

LOGO

For further information:

David A. Crittenden

Chief Financial Officer

DCrittenden@goutsi.com

(586) 467-1427

Universal Truckload Services, Inc. Reports Second Quarter 2014 Financial Results

Warren, MI – July 24, 2014 — Universal Truckload Services, Inc. (NASDAQ: UACL) reported today second quarter net income of $13.6 million, or $0.45 per basic and diluted share, on total revenues of $307.5 million. This compares to net income of $14.2 million, or $0.47 per basic and diluted share, on total revenues of $264.2 million during the second quarter of 2013.

Operating revenues increased 16.4% in the quarter ended June 28, 2014 compared to the second quarter of 2013. Excluding results from our December 2013 acquisition of Westport Axle Corporation, which totaled $26.3 million in the second quarter, Universal’s consolidated operating revenues grew 6.4% to $281.2 million, compared to $264.2 million in the second quarter of 2013.

Revenues from transportation services increased to $197.5 million in the quarter ended June 28, 2014, a 10.1% increase from the comparable period last year due to solid demand in key markets and a good pricing environment. Excluding Westport’s results, revenues from value-added services declined $1.5 million, or 2.9% in the second quarter of 2014 compared to the second quarter of 2013. Our revenues from intermodal services increased 1.2%, to $34.0 million from $33.6 million in the second quarter of 2013.

Income from operations increased 3.4%, to $24.4 million or 7.9% of operating revenues, compared to $23.6 million or 8.9% of operating revenues for the second quarter of 2013. Income from operations in our transportation segment increased 30.7% to $9.8 million or 5.0% of segment operating revenues for the second quarter of 2014, which compares to $7.5 million or 4.2% of segment operating revenues for the second quarter of 2013. Income from operations in our logistics segment, which includes value-added services and dedicated transportation services, decreased 4.7% to $16.1 million or 14.4% of operating revenues for the second quarter of 2014. This compares to $16.9 million or 19.7% of operating revenues one year earlier. Second quarter 2014 income from operations in our logistics segment includes $4.1 million from Westport.

“Our transportation businesses performed well in the second quarter, driven by a 5.7% increase in the number of loads and a 6.5% improvement in average operating revenue per loaded mile,” stated Universal’s Chief Executive Officer, Scott Wolfe. “During the recent quarter, our recurring logistics operations operated in line with expectations. Jeff Rogers, our new executive vice president, has now joined our leadership team, and we are focused on identifying growth opportunities, while continuing to build a more effective organization.”

We calculate and report selected financial metrics in connection with lending arrangements, and also to isolate and separately identify the impact of corporate development activities, which can include non-operating transaction costs and amortization of intangible assets recognized as the result of prior acquisitions. These statistics are described in more detail below in the section captioned “Non-GAAP Financial Measures.”


For the thirteen weeks ended June 28, 2014, our EBITDA increased 13.3% to $32.4 million, from $28.6 million for the thirteen weeks ended June 28, 2013. Expressed as a percentage of operating revenues, second quarter 2014 EBITDA was 10.5%, compared to 10.8% for the second quarter of 2013. Trends in EBITDA expressed as a percentage of operating revenues are substantially similar to trends in income from operations.

As of June 28, 2014, we held cash and cash equivalents totaling $8.1 million and marketable securities totaling $12.4 million. Outstanding debt totaled $242.4 million and obligations pursuant to capital leases were valued at $3.9 million.

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 August 4, 2014 and is expected to be paid on August 14, 2014.

Conference call:

We invite analysts and investors to participate in a conference call on Friday, July 25, 2014 at 10:00 AM ET. During the call, we will discuss Universal’s second quarter 2014 financial performance, the current demand outlook in key markets we serve, and trends impacting our business. Hosting the call will be Scott Wolfe, Chief Executive Officer, Don Cochran, President, and David Crittenden, CFO.

Dial-in details:

Call Toll Free: (866) 622-0924

International Dial-in: +1 (660) 422-4956

Conference ID: 64110930

A replay of the conference will be available two hours after the call through August 21, 2014, by calling (855) 859-2056 (toll free) or +1 (404) 537-3406 (toll) and using conference ID 64110930. Additionally, the call will 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, Mexico and Canada. 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, value-added, and intermodal 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     Twenty-six Weeks Ended  
     June 28,     June 29,     June 28,     June 29,  
     2014     2013     2014     2013  

Operating revenues:

        

Transportation services

   $ 197,505      $ 179,439      $ 377,321      $ 346,366   

Value-added services

     76,009        51,181        145,489        98,951   

Intermodal services

     34,035        33,552        64,103        66,964   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating revenues

     307,549        264,172        586,913        512,281   

Operating expenses:

        

Purchased transportation and equipment rent

     155,518        141,640        295,943        276,154   

Direct personnel and related benefits

     55,017        45,652        107,918        88,999   

Commission expense

     11,022        9,787        20,753        19,122   

Operating expense (exclusive of items shown separately)

     30,789        19,715        61,279        38,875   

Occupancy expense

     6,578        5,300        13,413        10,262   

Selling, general and administrative

     11,217        8,739        21,308        16,541   

Insurance and claims

     4,973        4,704        11,594        9,382   

Depreciation and amortization

     8,022        5,006        15,663        10,066   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     283,136        240,543        547,871        469,401   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     24,413        23,629        39,042        42,880   

Interest expense, net

     (2,463     (928     (4,038     (2,030

Other non-operating income

     125        127        214        261   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before provision for income taxes

     22,075        22,828        35,218        41,111   

Provision for income taxes

     8,442        8,674        13,461        15,583   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 13,633      $ 14,154      $ 21,757      $ 25,528   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per common share:

        

Basic

   $ 0.45      $ 0.47      $ 0.72      $ 0.85   

Diluted

   $ 0.45      $ 0.47      $ 0.72      $ 0.85   

Weighted average number of common shares outstanding:

        

Basic

     30,054        30,054        30,082        30,054   

Diluted

     30,092        30,196        30,124        30,196   

Dividends paid per common share:

   $ 0.07      $ —        $ 0.14      $ —     
  

 

 

   

 

 

   

 

 

   

 

 

 


UNIVERSAL TRUCKLOAD SERVICES, INC.

Unaudited Condensed Consolidated Balance Sheets

(In thousands)

 

     June 28,
2014
     December 31,
2013
 

Assets

     

Cash and cash equivalents

   $ 8,106       $ 10,223   

Marketable securities

     12,407         11,626   

Accounts receivable - net

     161,214         132,001   

Other current assets

     46,430         49,539   
  

 

 

    

 

 

 

Total current assets

     228,157         203,389   

Property and equipment - net

     161,429         142,656   

Other long-term assets - net

     138,926         144,091   
  

 

 

    

 

 

 

Total assets

   $ 528,512       $ 490,136   
  

 

 

    

 

 

 

Liabilities and shareholders’ equity

     

Current liabilities, excluding current maturities of capital lease obligations and debt

   $ 118,195       $ 93,896   

Capital lease obligations

     3,895         4,643   

Debt

     242,403         237,500   

Other long-term liabilities

     44,953         48,532   
  

 

 

    

 

 

 

Total liabilities

     409,446         384,571   

Total shareholders’ equity

     119,066         105,565   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 528,512       $ 490,136   
  

 

 

    

 

 

 


UNIVERSAL TRUCKLOAD SERVICES, INC.

Unaudited Summary of Operating Data

 

     Thirteen Weeks Ended      Twenty-six Weeks Ended  
     June 28,      June 29,      June 28,      June 29,  
     2014      2013      2014      2013  

Transportation Services:

           

Average operating revenues per loaded mile (a)

   $ 2.93       $ 2.75       $ 2.95       $ 2.72   

Average operating revenues per loaded mile, excluding fuel surcharges, where separately identifiable (a)

   $ 2.54       $ 2.36       $ 2.55       $ 2.34   

Average operating revenues per load (a)

   $ 1,031       $ 1,002       $ 1,039       $ 999   

Average operating revenues per load, excluding fuel surcharges, where separately identifiable (a)

   $ 892       $ 859       $ 898       $ 857   

Average length of haul (a) (b)

     351         364         353         367   

Number of loads (a)

     167,299         158,274         317,660         309,315   

Value Added Services:

           

Number of facilities (d)

           

Customer provided

     19         17         19         17   

Company leased

     28         27         28         27   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     47         44         47         44   

Intermodal Services:

           

Drayage (in thousands)

   $ 30,629       $ 27,771       $ 57,573       $ 52,633   

Domestic Intermodal (in thousands)

     743         3,220         1,547         9,168   

Depot (in thousands)

     2,663         2,561         4,983         5,163   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total (in thousands)

   $ 34,035       $ 33,552       $ 64,103       $ 66,964   
  

 

 

    

 

 

    

 

 

    

 

 

 

Average operating revenues per loaded mile (c)

   $ 5.30       $ 4.49       $ 5.21       $ 4.47   

Average operating revenues per loaded mile, excluding fuel surcharges, where separately identifiable (c)

   $ 4.28       $ 3.62       $ 4.20       $ 3.59   

Average operating revenues per load (c)

   $ 395       $ 339       $ 397       $ 330   

Average operating revenues per load, excluding fuel surcharges, where separately identifiable (c)

   $ 319       $ 273       $ 320       $ 264   

Number of loads (c)

     77,460         82,000         145,081         159,657   

Number of container yards

     11         11         11         11   

 

(a) Excludes operating data from Universal Logistics Solutions, Inc., and 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 operating data from Universal Logistics Solutions, Inc. in order to improve the relevance of the statistical data related to our intermodal services and improve the comparability to our peer companies.
(d) Excludes storage yards, terminals and office facilities.


UNIVERSAL TRUCKLOAD SERVICES, INC.

Unaudited Summary of Operating Data—Continued

 

     Thirteen Weeks Ended     Twenty-six Weeks Ended  
     June 28,     June 29,     June 28,     June 29,  
     2014     2013     2014     2013  

Average Headcount:

        

Employees

     4,251        3,540        4,241        3,208   

Full time equivalents

     1,539        1,650        1,583        1,856   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

     5,790        5,190        5,824        5,064   

Average number of tractors:

        

Provided by owner-operators

     3,323        3,338        3,309        3,356   

Owned

     801        687        779        685   

Third party lease

     67        65        77        55   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

     4,191        4,090        4,165        4,096   

Operating Revenues by Segment:

        

Transportation

   $ 195,374      $ 178,261      $ 370,723      $ 347,803   

Logistics

     112,062        85,805        215,968        164,267   

Other

     113        106        222        211   
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 307,549      $ 264,172      $ 586,913      $ 512,281   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from Operations by Segment:

        

Transportation

   $ 9,819      $ 7,504      $ 15,129      $ 13,220   

Logistics

     16,081        16,890        25,762        30,644   

Other

     (1,487     (765     (1,849     (984
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 24,413      $ 23,629      $ 39,042      $ 42,880   
  

 

 

   

 

 

   

 

 

   

 

 

 


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     Twenty-six Weeks Ended  
     June 28,     June 29,     June 28,     June 29,  
     2014     2013     2014     2013  
     (in thousands)     (in thousands)  

EBITDA

        

Net income

   $ 13,633      $ 14,154      $ 21,757      $ 25,528   

Provision for income taxes

     8,442        8,674        13,461        15,583   

Interest expense, net

     2,463        928        4,038        2,030   

Depreciation and amortization

     8,022        5,006        15,663        10,066   

Other non-operating income

     (125     (127     (214     (261
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 32,435      $ 28,635      $ 54,705      $ 52,946   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA margin (a)

     10.5     10.8     9.3     10.3

 

(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.