Universal Logistics' Q4 net income remained flat year-over-year at US$16.2M; total operating revenue up to record US$467.4M from US$386M with intermodal up 33.8%, trucking up 25.5%, contract logistics up 20.7%

Sample article from our Logistic & Supply Chain

WARREN, Michigan , February 15, 2022 (press release) –

 
 
Fourth Quarter 2021 Operating Revenues: $467.4 million, 21.1% increase
-- Fourth Quarter 2021 Operating Income: $23.8 million
-- Fourth Quarter 2021 Earnings Per Share: $0.60 per share
-- Declares Quarterly Dividend: $0.105 per share

Universal Logistics Holdings, Inc. (NASDAQ: ULH), a leading asset-light provider of customized transportation and logistics solutions, today reported consolidated fourth quarter 2021 net income of $16.2 million, or $0.60 per basic and diluted share, on total operating revenues of $467.4 million, Universal's highest quarterly operating revenues ever reported. This compares to net income of $16.2 million, or $0.60 per basic and diluted share, during fourth quarter 2020 on total operating revenues of $386.0 million. Universal's fourth quarter 2021 operating results were negatively affected by $6.0 million of charges for auto liability claims expected to settle in excess of policy limits and an additional $5.0 million of losses incurred in connection with a contract logistics program in Detroit, Michigan.  For the full year 2021, Universal reported $2.74 per basic and diluted share, on total operating revenues of $1.75 billion, both the highest in company history. This compares to $1.78 per basic and diluted share, on total operating revenues of $1.39 billion for the full year 2020.

   

In the fourth quarter 2021, Universal's operating income increased $0.3 million to $23.8 million, compared to $23.5 million in the fourth quarter one year earlier.  Universal's fourth quarter 2021 operating results were reduced by a total of $11.0 million attributable to the previously mentioned auto liability claims charges and losses attributable to a recent contract logistics program award.  As a percentage of operating revenue, operating margin for the fourth quarter 2021 was 5.1%, compared to 6.1% during the same period last year. EBITDA, a non-GAAP measure, decreased $4.5 million during the fourth quarter 2021 to $39.7 million, compared to $44.2 million one year earlier. As a percentage of operating revenue, EBITDA margin for the fourth quarter 2021 was 8.5%, compared to 11.4% during the same period last year. The claims charges and launch losses recorded in the fourth quarter 2021 adversely impacted both Universal's operating margin and EBITDA margin by 230 basis points. 

"2021 certainly had its share of challenges," stated Tim Phillips, Universal's Chief Executive Officer. "We experienced them predominantly at the macro level, with a lack of fluidity throughout the country's ports and inland supply chains, a tight labor market, particularly in the transportation and logistics space, and transportation equipment in extremely short supply. We also experienced some of those conditions more acutely at Universal. Our automotive customers struggled to meet production due to a lack of semiconductors and we were challenged with significant program losses in executing a major new contract logistics program.

Yet, despite these challenges, Universal's business model continued to deliver impressive results.  For the full year 2021 Universal reported record results on both the top and bottom line. Our year-over-year annual operating revenues increased 26%, and our after-tax earnings were up over 50%, making Universal's full year 2021 operating revenues and earnings per share the greatest in company history. We also closed out the fourth quarter with Universal's highest quarterly revenues ever reported. While there is still plenty of room for improvement, I want to make sure these achievements don't go unrecognized. I would like to thank every member of Team Universal for their individual contributions in making this year a success, and I look forward to what we can accomplish in 2022."

Segment Information:

Contract Logistics

-  Fourth Quarter 2021 Operating Revenues:  $160.7 million, 20.7% increase
-  Fourth Quarter 2021 Operating Income:  $6.1 million, 3.8% operating margin

In the contract logistics segment, which includes our value-added and dedicated services, fourth quarter 2021 operating revenues increased 20.7% to $160.7 million, compared to $133.2 million for the same period last year. At the end of the fourth quarter 2021, we managed 63 value-added programs, compared to 58 such programs at the end of the fourth quarter 2020, and improved our dedicated transportation load volumes by 6.9% compared to the same period last year. Fourth quarter 2021 income from operations decreased $5.9 million to $6.1 million, compared to $12.0 million during the same period last year. Included in fourth quarter 2021 results were $5.0 million of additional losses incurred in connection with a recently launched new business award. As a percentage of revenue, operating margin in the contract logistics segment for the fourth quarter 2021 was 3.8%, compared to 9.0% during the same period last year. The launch losses recorded in the fourth quarter 2021 adversely impacted this segment's operating margin by 310 basis points. 

Intermodal

-  Fourth Quarter 2021 Operating Revenues:  $141.7 million, 33.8% increase
-  Fourth Quarter 2021 Operating Income:  $13.8 million, 9.7% operating margin

Operating revenues in the intermodal segment increased $35.8 million to $141.7 million in the fourth quarter 2021, compared to $105.9 million for the same period last year. Included in intermodal segment revenues for the recently completed quarter were $16.1 million in separately identified fuel surcharges, compared to $8.9 million during the same period last year. Intermodal segment revenues also include other accessorial charges such as detention, demurrage and storage which totaled $35.7 million during the fourth quarter 2021, compared to $20.0 million one year earlier. The average operating revenue per load, excluding fuel surcharges, increased 31.9%; however, load volumes decreased 14.2% year-over-year. Fourth quarter 2021 income from operations increased $6.0 million to $13.8 million, compared to $7.8 million during the same period last year. As a percentage of revenue, operating margin in the intermodal segment for the fourth quarter 2021 was 9.7%, compared to 7.3% during the same period last year.

Trucking

-  Fourth Quarter 2021 Operating Revenues:  $101.5 million, 25.5% increase
-  Fourth Quarter 2021 Operating Income:  $1.1 million, 1.1% operating margin

In the trucking segment, which includes agent-based and company-managed trucking operations, fourth quarter 2021 operating revenues increased 25.5% to $101.5 million, compared to $80.9 million for the same period last year. Fourth quarter 2021 trucking segment revenues included $38.1 million of brokerage services, compared to $31.3 million during the same period last year. Also included in our trucking segment revenues were $6.8 million in separately identified fuel surcharges during the fourth quarter 2021, compared to $3.7 million in fuel surcharges during the same period last year. On a year-over-year basis, trucking segment load volumes increased 2.8% and the average operating revenue per load, excluding fuel surcharges, increased an additional 19.3% during the same period. Income from operations in the fourth quarter 2021 decreased $2.4 million to $1.1 million compared to $3.5 million during the same period last year. Fourth quarter 2021 results also included a $6.0 million charge for auto liability claims expected to settle in excess of policy limits. As a percentage of revenue, operating margin in the trucking segment for the fourth quarter 2021 was 1.1% compared to 4.4% during the same period last year. The claim charges recorded in the fourth quarter 2021 adversely impacted the trucking segment's operating margin by 590 basis points. 

Company-managed Brokerage

-  Fourth Quarter 2021 Operating Revenues:  $62.0 million, 5.8% decrease
-  Fourth Quarter 2021 Operating Income:  $2.5 million, 4.0% operating margin

Fourth quarter 2021 operating revenues in the company-managed brokerage segment decreased $3.8 million to $62.0 million, compared to $65.8 million for the same period last year, while income from operations increased $2.3 million to $2.5 million in the fourth quarter 2021.  This compares to income from operations of $0.2 million one year earlier. The company-managed brokerage segment's average operating revenue per load, excluding fuel surcharges, increased 10.1%; however, load volumes decreased 19.4% on a year-over-year basis. As a percentage of revenue, operating margin in the company-managed brokerage segment for the fourth quarter 2021 was 4.0% compared to 0.3% during the same period last year.

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 March 7, 2022 and is expected to be paid on April 4, 2022.

Other Matters 

As of December 31, 2021, Universal held cash and cash equivalents totaling $13.9 million, and $8.0 million in marketable securities. Outstanding debt at the end of the fourth quarter 2021 was $428.4 million and capital expenditures totaled $12.6 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, February 11, 2022
Call Toll Free:  (844) 955-2101
International Dial-in:  +1 (661) 567-1249
Conference ID:  6075298

A replay of the conference call will be available beginning two hours after the call through February 18, 2022, by calling (855) 859-2056 (toll free) or +1 (404) 537-3406 (toll) and using conference ID 6075298. 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," "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 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

   

Year Ended

 
 

December 31,

   

December 31,

 
 

2021

   

2020

   

2021

   

2020

 

Operating revenues:

                             

Truckload services

$

64,838

   

$

49,786

   

$

248,878

   

$

201,419

 

Brokerage services

 

100,143

     

97,116

     

401,823

     

336,365

 

Intermodal services

 

141,723

     

105,887

     

473,059

     

393,633

 

Dedicated services

 

54,003

     

38,524

     

204,102

     

127,510

 

Value-added services

 

106,665

     

94,640

     

423,118

     

332,156

 

Total operating revenues

 

467,372

     

385,953

     

1,750,980

     

1,391,083

 
                               

Operating expenses:

                             

Purchased transportation and equipment rent

 

224,516

     

187,469

     

824,789

     

674,143

 

Direct personnel and related benefits

 

119,720

     

93,756

     

456,643

     

337,618

 

Operating supplies and expenses

 

35,779

     

32,398

     

149,394

     

111,056

 

Commission expense

 

8,914

     

7,711

     

33,894

     

26,661

 

Occupancy expense

 

10,380

     

8,097

     

37,286

     

34,586

 

General and administrative

 

9,783

     

9,177

     

39,648

     

33,267

 

Insurance and claims

 

18,847

     

4,597

     

38,829

     

19,252

 

Depreciation and amortization

 

15,657

     

19,199

     

67,537

     

74,141

 

Total operating expenses

 

443,596

     

362,404

     

1,648,020

     

1,310,724

 

Income from operations

 

23,776

     

23,549

     

102,960

     

80,359

 

Interest expense, net

 

(2,510)

     

(3,428)

     

(11,599)

     

(14,579)

 

Other non-operating income (loss)

 

247

     

1,418

     

7,220

     

(1,870)

 

Income before income taxes

 

21,513

     

21,539

     

98,581

     

63,910

 

Provision for income taxes

 

5,314

     

5,316

     

24,848

     

15,778

 

Net income

$

16,199

   

$

16,223

   

$

73,733

   

$

48,132

 
                               

Earnings per common share:

                             

Basic

$

0.60

   

$

0.60

   

$

2.74

   

$

1.78

 

Diluted

$

0.60

   

$

0.60

   

$

2.74

   

$

1.78

 
                               

Weighted average number of common shares outstanding:

                             

Basic

 

26,919

     

26,917

     

26,919

     

26,997

 

Diluted

 

26,923

     

26,926

     

26,929

     

27,000

 
                               

Dividends declared per common share:

$

0.105

   

$

0.105

   

$

0.420

   

$

0.210

 
 
 
 

UNIVERSAL LOGISTICS HOLDINGS, INC.

Unaudited Condensed Consolidated Balance Sheets

(In thousands)

 
 

December 31,

2021

   

December 31,

2020

 

Assets

             

Cash and cash equivalents

$

13,932

   

$

8,763

 

Marketable securities

 

8,031

     

6,534

 

Accounts receivable - net

 

341,398

     

259,154

 

Other current assets

 

57,334

     

47,073

 

Total current assets

 

420,695

     

321,524

 

Property and equipment - net

 

345,583

     

364,795

 

Other long-term assets - net

 

371,213

     

376,730

 

Total assets

$

1,137,491

   

$

1,063,049

 
               

Liabilities and shareholders' equity

             

Current liabilities, excluding current maturities of debt

$

251,550

   

$

213,094

 

Debt - net

 

427,348

     

460,120

 

Other long-term liabilities

 

156,383

     

150,262

 

Total liabilities

 

835,281

     

823,476

 

Total shareholders' equity

 

302,210

     

239,573

 

Total liabilities and shareholders' equity

$

1,137,491

   

$

1,063,049

 
 
 
 

UNIVERSAL LOGISTICS HOLDINGS, INC.

Unaudited Summary of Operating Data

 
 

Thirteen Weeks Ended

   

Year Ended

 
 

December 31,

   

December 31,

 
 

2021

   

2020

   

2021

   

2020

 

Contract Logistics Segment:

                             

Number of dedicated transportation loads (a)

 

145,127

     

135,821

     

594,748

     

493,733

 

Average number of value-added direct employees

 

5,005

     

3,507

     

4,534

     

3,444

 

Average number of value-added full-time equivalents

 

1,322

     

1,387

     

1,448

     

1,233

 

Number of active value-added programs

 

63

     

58

     

63

     

58

 
                               

Intermodal Segment:

                             

Number of loads

 

156,736

     

182,582

     

665,088

     

719,947

 

Average operating revenue per load, excluding fuel surcharges

$

595

   

$

451

   

$

522

   

$

461

 

Average number of tractors

 

2,056

     

1,951

     

2,042

     

2,168

 

Number of depots

 

12

     

12

     

12

     

12

 
                               

Trucking Segment:

                             

Number of loads

 

67,440

     

65,572

     

288,378

     

257,562

 

Average operating revenue per load, excluding fuel surcharges

$

1,475

   

$

1,236

   

$

1,356

   

$

1,218

 

Average number of tractors

 

1,234

     

1,276

     

1,299

     

1,324

 

Average length of haul

 

374

     

386

     

372

     

398

 
                               

Company-Managed Brokerage Segment:

                             

Number of loads (b)

 

27,434

     

34,033

     

121,944

     

145,655

 

Average operating revenue per load (b)

$

1,976

   

$

1,794

   

$

1,845

   

$

1,403

 

Average length of haul (b)

 

533

     

580

     

553

     

576

 
   

(a)

Includes shuttle moves.

(b)

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

   

Year Ended

 
 

December 31,

   

December 31,

 
 

2021

   

2020

   

2021

   

2020

 

Operating Revenues by Segment:

                             

Contract logistics

$

160,668

   

$

133,164

   

$

627,220

   

$

459,666

 

Intermodal

 

141,723

     

105,887

     

473,059

     

393,633

 

Trucking

 

101,474

     

80,863

     

403,312

     

318,385

 

Company-managed brokerage

 

62,035

     

65,822

     

242,794

     

218,123

 

Other

 

1,472

     

217

     

4,595

     

1,276

 

Total

$

467,372

   

$

385,953

   

$

1,750,980

   

$

1,391,083

 
                               

Income from Operations by Segment:

                             

Contract logistics

$

6,067

   

$

11,956

   

$

44,809

   

$

35,967

 

Intermodal

 

13,799

     

7,770

     

30,379

     

30,353

 

Trucking

 

1,105

     

3,545

     

19,607

     

16,413

 

Company-managed brokerage

 

2,466

     

227

     

7,122

     

(2,681)

 

Other

 

339

     

51

     

1,043

     

307

 

Total

$

23,776

   

$

23,549

   

$

102,960

   

$

80,359

 

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

   

Year Ended

 
 

December 31,

   

December 31,

 
 

2021

   

2020

   

2021

   

2020

 
 

( in thousands)

   

( in thousands)

 

EBITDA

                             

Net income

$

16,199

   

$

16,223

   

$

73,733

   

$

48,132

 

Income tax expense

 

5,314

     

5,316

     

24,848

     

15,778

 

Interest expense, net

 

2,510

     

3,428

     

11,599

     

14,579

 

Depreciation

 

12,248

     

15,413

     

53,650

     

58,934

 

Amortization

 

3,409

     

3,786

     

13,887

     

15,207

 

EBITDA

$

39,680

   

$

44,166

   

$

177,717

   

$

152,630

 
                               

EBITDA margin (a)

 

8.5

%

   

11.4

%

   

10.1

%

   

11.0

%

   

(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.

 

 View original content to download multimedia:https://www.prnewswire.com/news-releases/universal-logistics-holdings-reports-fourth-quarter-2021-financial-results-achieved-full-year-2021-record-results-declares-dividend-301480061.html

SOURCE Universal Logistics Holdings, Inc.

Steven Fitzpatrick, Investor Relations, SFitzpatrick@UniversalLogistics.com

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

See our dashboard in action - schedule an demo
Jason Irving
Jason Irving
- SVP Enterprise Solutions -

We offer built-to-order logistic & supply chain coverage for our clients. Contact us for a free consultation.

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.