Attached files

file filename
8-K - 8-K - UNIVERSAL LOGISTICS HOLDINGS, INC.d190969d8k.htm
EX-3.1 - EX-3.1 - UNIVERSAL LOGISTICS HOLDINGS, INC.d190969dex31.htm
EX-3.2 - EX-3.2 - UNIVERSAL LOGISTICS HOLDINGS, INC.d190969dex32.htm
EX-99.2 - EX-99.2 - UNIVERSAL LOGISTICS HOLDINGS, INC.d190969dex992.htm

Exhibit 99.1

 

LOGO

For further information:

Jude Beres

Chief Financial Officer

JBeres@goutsi.com

(586) 920-0100

Universal Truckload Services, Inc. Reports First Quarter 2016 Financial Results

Warren, MI – April 28, 2016 — Universal Truckload Services, Inc. (NASDAQ: UACL) today reported first quarter 2016 net income of $7.5 million, or $0.26 per basic and diluted share, on total operating revenues of $260.4 million. This compares to $8.2 million, or $0.27 per basic and diluted share, during the first quarter of 2015 on total operating revenues of $263.6 million.

Operating revenues from our transportation services decreased $10.5 million, or 6.5%, to $149.9 million in the quarter ended April 2, 2016. The decline included an $8.4 million decrease in fuel surcharges, and a 6.7% decrease in average operating revenues per load, excluding fuel surcharges. Load volumes were relatively stable, increasing a modest 1.1%, however, a weak pricing environment and declining fuel surcharges drove the overall decline. Value-added service revenues increased $5.3 million, or 7.6%, in the most recent quarter to $75.6 million reflecting new business awarded in the second half of 2015. Intermodal service revenues also increased, up 6.0% to $34.9 million compared to the same period last year. Our intermodal service revenues include a $2.7 million increase in drayage revenues, partially offset by lower domestic intermodal and depot services.

Consolidated income from operations decreased $1.1 million to $13.9 million in the first quarter of 2016 and EBITDA decreased 6.8% to $22.5 million during the same period. Our operating margin and EBITDA margin for the first quarter of 2016 are 5.3% and 8.6% of operating revenues. These profitability metrics compare to 5.7% and 9.1%, respectively, in the first quarter of 2015.

Income from operations in our transportation segment decreased 7.3% to $5.9 million in the first quarter of 2016, despite a $9.7 million decline in transportation segment revenues. Income from operations in our logistics segment, which includes value-added services and dedicated transportation services, decreased 2.6%, or $0.2 million to $8.5 million on $102.6 million of operating revenues compared to $96.2 million in operating revenues in the same period last year.

“We are starting to see the growth anticipated in our value-added services,” commented Universal’s Chief Executive Officer, Jeff Rogers. “However, a soft pricing environment and low diesel prices continues to put downward pressure in our transportation service revenues. Once again, intermodal performed very well for us and we are getting excited about the improvements made in our dedicated operations. There is work ahead of us, but we will stay focused on driving profitable growth, and ensure we are achieving maximum efficiency with our strong business model.”

Universal calculates and reports selected financial metrics in connection with lending arrangements, or 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 April 2, 2016, we held cash and cash equivalents totaling $11.7 million and marketable securities of $13.4 million. Outstanding debt, net of debt issue costs, totaled $233.4 million and our capital expenditures totaled $36.0 million during the first three months of 2016.


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 May 9, 2016 and is expected to be paid on May 19, 2016.

Conference call:

We invite investors and analysts to our quarterly earnings conference call. During the call, Jeff Rogers, CEO, Jude Beres, CFO, and Steven Fitzpatrick, Vice President of Finance and Investor Relations, will discuss Universal’s first 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 EDT   
Date:   Friday, April 29, 2016   
Call Toll Free:   (866) 622-0924   
International Dial-in:   +1 (660) 422-4956   
Conference ID:   83911871   

A replay of the conference call will be available beginning two hours after the call through May 26, 2016, by calling (855) 859-2056 (toll free) or +1 (404) 537-3406 (toll) and using conference ID 83911871. The call will also 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, 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 TRUCKLOAD SERVICES, INC.

Unaudited Condensed Consolidated Statements of Income

(In thousands, except per share data)

 

     Thirteen Weeks Ended  
     April 2,     March 28,  
     2016     2015  

Operating revenues:

    

Transportation services

   $ 149,924      $ 160,404   

Value-added services

     75,554        70,218   

Intermodal services

     34,916        32,939   
  

 

 

   

 

 

 

Total operating revenues

     260,394        263,561   

Operating expenses:

    

Purchased transportation and equipment rent

     121,665        132,080   

Direct personnel and related benefits

     64,010        51,510   

Commission expense

     8,072        8,818   

Operating expense (exclusive of items shown separately)

     23,926        27,045   

Occupancy expense

     7,723        6,827   

Selling, general and administrative

     8,350        9,006   

Insurance and claims

     4,172        4,170   

Depreciation and amortization

     8,546        9,038   
  

 

 

   

 

 

 

Total operating expenses

     246,464        248,494   
  

 

 

   

 

 

 

Income from operations

     13,930        15,067   

Interest expense, net

     (1,963     (1,842

Other non-operating income

     138        107   
  

 

 

   

 

 

 

Income before provision for income taxes

     12,105        13,332   

Provision for income taxes

     4,628        5,168   
  

 

 

   

 

 

 

Net income

   $ 7,477      $ 8,164   
  

 

 

   

 

 

 

Earnings per common share:

    

Basic

   $ 0.26      $ 0.27   

Diluted

   $ 0.26      $ 0.27   

Weighted average number of common shares outstanding:

    

Basic

     28,402        29,992   

Diluted

     28,402        29,998   

Dividends declared per common share

   $ 0.07      $ 0.07   
  

 

 

   

 

 

 


UNIVERSAL TRUCKLOAD SERVICES, INC.

Unaudited Condensed Consolidated Balance Sheets

(In thousands)

 

     April 2,
2016
     December 31,
2015
 

Assets

     

Cash and cash equivalents

   $ 11,731       $ 12,930   

Marketable securities

     13,378         13,431   

Accounts receivable - net

     139,253         141,275   

Other current assets

     32,254         35,204   
  

 

 

    

 

 

 

Total current assets

     196,616         202,840   

Property and equipment - net

     206,497         177,189   

Other long-term assets - net

     131,081         129,470   
  

 

 

    

 

 

 

Total assets

   $ 534,194       $ 509,499   
  

 

 

    

 

 

 

Liabilities and shareholders’ equity

     

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

   $ 115,173       $ 91,700   

Debt - net

     233,402         233,414   

Capital lease obligations

     293         1,981   

Other long-term liabilities

     48,981         51,323   
  

 

 

    

 

 

 

Total liabilities

     397,849         378,418   

Total shareholders’ equity

     136,345         131,081   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 534,194       $ 509,499   
  

 

 

    

 

 

 


UNIVERSAL TRUCKLOAD SERVICES, INC.

Unaudited Summary of Operating Data

 

     Thirteen Weeks Ended  
     April 2,      March 28,  
     2016      2015  

Transportation Services:

     

Average operating revenues per loaded mile (a)

   $ 2.35       $ 2.68   

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

   $ 2.21       $ 2.44   

Average operating revenues per load (a)

   $ 895       $ 996   

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

   $ 843       $ 904   

Average length of haul (a) (b)

     381         371   

Number of loads (a)

     148,354         146,811   

Value Added Services:

     

Number of facilities (c)

     

Customer provided

     17         17   

Company leased

     31         30   
  

 

 

    

 

 

 

Total

     48         47   

Intermodal Services:

     

Drayage (in thousands)

   $ 32,281       $ 29,623   

Domestic Intermodal (in thousands)

     452         809   

Depot (in thousands)

     2,183         2,507   
  

 

 

    

 

 

 

Total (in thousands)

   $ 34,916       $ 32,939   
  

 

 

    

 

 

 

Average operating revenues per loaded mile

   $ 5.07       $ 5.10   

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

   $ 4.53       $ 4.17   

Average operating revenues per load

   $ 396       $ 399   

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

   $ 353       $ 326   

Number of loads

     81,495         74,316   

Number of container yards

     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 TRUCKLOAD SERVICES, INC.

Unaudited Summary of Operating Data - Continued

 

     Thirteen Weeks Ended  
     April 2,      March 28,  
     2016      2015  

Average Headcount

     

Employees

     3,985         4,254   

Full time equivalents

     1,913         1,437   
  

 

 

    

 

 

 

Total

     5,898         5,691   

Average number of tractors

     

Provided by owner-operators

     3,178         3,259   

Owned

     770         846   

Third party lease

     36         35   
  

 

 

    

 

 

 

Total

     3,984         4,140   

Operating Revenues by Segment:

     

Transportation

   $ 157,546       $ 167,233   

Logistics

     102,557         96,232   

Other

     291         96   
  

 

 

    

 

 

 
   $ 260,394       $ 263,561   
  

 

 

    

 

 

 

Income from Operations by Segment:

     

Transportation

   $ 5,888       $ 6,350   

Logistics

     8,549         8,773   

Other

     (507      (56
  

 

 

    

 

 

 
   $ 13,930       $ 15,067   
  

 

 

    

 

 

 


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  
     April 2,     March 28,  
     2016     2015  
     ( in thousands)  

EBITDA

    

Net income

   $ 7,477      $ 8,164   

Provision for income taxes

     4,628        5,168   

Interest expense, net

     1,963        1,842   

Depreciation and amortization

     8,546        9,038   

Other non-operating income

     (138     (107
  

 

 

   

 

 

 

EBITDA

   $ 22,476      $ 24,105   
  

 

 

   

 

 

 

EBITDA margin (a)

     8.6     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.