Universal Logistics reports Q1 net income rises to US$42M from US$21.7M last year; total operating revenue up 26.2% year-over-year to record US$523.9M from US$415.2M, as intermodal revenue rises 52%, trucking rises 2.7% and contract logistics rises 30.1%

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WARREN, Michigan , May 6, 2022 (press release) –

  • First Quarter 2022 Operating Revenues: $523.9 million, 26.2% increase
  • First Quarter 2022 Operating Income: $57.8 million, 11.0% operating margin
  • First Quarter 2022 Earnings Per Share: $1.56 per share, 95.0% increase
  • Declares Quarterly Dividend: $0.105 per share
  • Repurchases 257,261 shares of its common stock at an average price of $20.42 per share

Universal Logistics Holdings, Inc. (NASDAQ: ULH) today reported consolidated first quarter 2022 net income of $42.0 million, or $1.56 per basic and diluted share, on total operating revenues of $523.9 million. This compares to net income of $21.7 million, or $0.80 per basic and diluted share, during first quarter 2021 on total operating revenues of $415.2 million. Universal's first quarter 2022 financial results represent record all-time highs for total operating revenues, operating income and earnings per share.

In the first quarter 2022, Universal's operating income increased 85.7% to $57.8 million compared to operating income of $31.2 million in the first quarter one year earlier. As a percentage of operating revenue, operating margin for the first quarter 2022 was 11.0% compared to 7.5% during the same period last year. EBITDA, a non-GAAP measure, increased $23.8 million during the first quarter 2022 to $75.0 million, compared to $51.2 million one year earlier.  As a percentage of operating revenue, EBITDA margin for the first quarter 2022 was 14.3% compared to 12.3% during the same period last year.

"The first quarter of 2022 set a series of new all-time highs for Universal," stated Tim Phillips, Universal's Chief Executive Officer. "During the first thirteen weeks of the year, Universal experienced its highest operating revenues, largest operating income, and best earnings per share, not just for a first quarter, but in all of Universal's history. Our efforts evaluating operating cost structures and negotiating rate increases with our customers, as well as continued rationalization of underperforming business across our service lines, came to fruition in the first quarter. 

I also remain mindful of the challenges facing our industry today. We continue to see supply chain disruptions, a competitive market for equipment and talent, as well as some more recent intermittent shut-downs of our customers' operations as they are seeking to secure parts to build cars and trucks. However, I believe it's our job to navigate these challenges, and to continue delivering exceptional service and results. The first quarter of 2022 is off to a great start, and I believe we will find additional execution improvement opportunities as the year unfolds. I am extremely pleased with the talented group of people we have assembled at Universal, and I am confident we will continue to exceed the goals we have set for the year, which includes $2.0 billion in top-line revenue for 2022."

Segment Information:

Contract Logistics

  • First Quarter 2022 Operating Revenues: $201.6 million, 30.1% increase
  • First Quarter 2022 Operating Income: $23.5 million, 11.6% operating margin

In the contract logistics segment, which includes our value-added and dedicated services, first quarter 2022 operating revenues increased 30.1% to $201.6 million, compared to $154.9 million for the same period last year. At the end of the first quarter 2022, we managed 63 value-added programs, compared to 60 such programs at the end of the first quarter 2021. While reported dedicated transportation load volumes grew by 1.2%, new business wins, including a major shuttle operation, as well as repricing of existing customer contracts were significant contributing factors to the overall growth in dedicated transportation. Also included in dedicated transportation revenues for the recently completed quarter were $8.8 million in separately identified fuel surcharges, compared to $4.9 million during the same period last year. In the contract logistics segment, first quarter 2022 income from operations increased $6.7 million to $23.5 million, compared to $16.8 million during the same period last year. As a percentage of revenue, operating margin in the contract logistics segment for the first quarter 2022 was 11.6%, compared to 10.9% during the same period last year.

Intermodal

  • First Quarter 2022 Operating Revenues: $157.6 million, 52.0% increase
  • First Quarter 2022 Operating Income: $23.0 million, 14.6% operating margin

Operating revenues in the intermodal segment increased $53.9 million to $157.6 million in the first quarter 2022, compared to $103.7 million for the same period last year. Included in intermodal segment revenues for the recently completed quarter were $18.2 million in separately identified fuel surcharges, compared to $10.2 million during the same period last year. Intermodal segment revenues also include other accessorial charges such as detention, demurrage and storage which totaled $36.2 million during the first quarter 2022, compared to $11.0 million one year earlier. The average operating revenue per load, excluding fuel surcharges, increased 51.2%; however, load volumes fell 14.3% year-over-year. First quarter 2022 income from operations increased $14.5 million to $23.0 million, compared to $8.5 million during the same period last year. As a percentage of revenue, operating margin in the intermodal segment for the first quarter 2022 was 14.6%, compared to 8.2% during the same period last year.

Trucking

  • First Quarter 2022 Operating Revenues: $97.5 million, 2.7% increase
  • First Quarter 2022 Operating Income: $7.4 million, 7.6% operating margin

In the trucking segment first quarter 2022 operating revenues increased 2.7% to $97.5 million, compared to $94.9 million for the same period last year. First quarter 2022 trucking segment revenues included $42.0 million of brokerage services, compared to $35.8 million during the same period last year. Also included in our trucking segment revenues were $7.5 million in separately identified fuel surcharges during the first quarter 2022, compared to $5.1 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, increased 41.4%; however load volumes fell 30.1% as we rationalized some underperforming operations in this segment.  Income from operations in the first quarter 2022 increased $2.2 million to $7.4 million compared to $5.2 million during the same period last year. As a percentage of revenue, operating margin in the trucking segment for the first quarter 2022 was 7.6% compared to 5.5% during the same period last year.

Company-managed Brokerage

  • First Quarter 2022 Operating Revenues: $65.2 million, 6.7% increase
  • First Quarter 2021 Operating Income: $3.9 million, 5.9% operating margin

First quarter 2022 operating revenues in the company-managed brokerage segment increased $4.1 million to $65.2 million, compared to $61.1 million for the same period last year.  Income from operations in the first quarter 2022 increased $3.5 million to $3.9 million compared to $0.4 million during the same period last year. The company-managed brokerage segment's load volumes decreased 25.2%; however, average operating revenue per load increased 25.3% on a year-over-year basis. As a percentage of revenue, operating margin in the company-managed brokerage segment for the first quarter 2022 was 5.9% compared to 0.7% 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 June 6, 2022 and is expected to be paid on July 5, 2022.

Other Matters 

As of April 2, 2022, Universal held cash and cash equivalents totaling $14.9 million, and $9.0 million in marketable securities. Outstanding debt at the end of the first quarter 2022 was $402.7 million and capital expenditures totaled $6.0 million. 

During the first quarter of 2022, the Company also purchased 257,261 shares of its common stock at an average purchase price of $20.42 per share. Universal is currently authorized to purchase up to 742,739 additional shares of the Company's common stock under its previously announced share repurchase plan. 

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 6, 2022
Call Toll Free:  (844) 955-2101
International Dial-in:  +1 (661) 567-1249
Conference ID:  2084677

A replay of the conference call will be available beginning two hours after the call through May 13, 2022, by calling (855) 859-2056 (toll free) or +1 (404) 537-3406 (toll) and using conference ID 2084677. The call will also be available on investors.universallogistics.com. 

Source: Universal Logistics Holdings, Inc.

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 2,

   

April 3,

 
   

2022

   

2021

 

Operating revenues:

               

     Truckload services

 

$

57,483

   

$

59,702

 

     Brokerage services

   

107,172

     

96,919

 

     Intermodal services

   

157,613

     

103,716

 

     Dedicated services

   

75,487

     

47,961

 

     Value-added services

   

126,106

     

106,933

 

Total operating revenues

   

523,861

     

415,231

 
                 

Operating expenses:

               

     Purchased transportation and equipment rent

   

232,131

     

189,331

 

     Direct personnel and related benefits

   

136,667

     

107,552

 

     Operating supplies and expenses

   

42,124

     

37,092

 

     Commission expense

   

10,024

     

7,324

 

     Occupancy expense

   

10,195

     

8,180

 

     General and administrative

   

10,063

     

9,176

 

     Insurance and claims

   

8,581

     

6,335

 

     Depreciation and amortization

   

16,228

     

19,085

 

          Total operating expenses

   

466,013

     

384,075

 

          Income from operations

   

57,848

     

31,156

 

Interest expense, net

   

(2,433)

     

(3,163)

 

Other non-operating income

   

953

     

1,006

 

          Income before income taxes

   

56,368

     

28,999

 

Provision for income taxes

   

14,360

     

7,344

 

          Net income

 

$

42,008

   

$

21,655

 
                 

Earnings per common share:

               

     Basic

 

$

1.56

   

$

0.80

 

     Diluted

 

$

1.56

   

$

0.80

 
                 

Weighted average number of common shares outstanding:

               

     Basic

   

26,864

     

26,916

 

     Diluted

   

26,865

     

26,930

 
                 

Dividends declared per common share:

 

$

0.105

   

$

0.105

 

 

UNIVERSAL LOGISTICS HOLDINGS, INC.

Unaudited Condensed Consolidated Balance Sheets

(In thousands)

 
   

April 2,

2022

   

December 31,

2021

 

Assets

               

     Cash and cash equivalents

 

$

14,922

   

$

13,932

 

     Marketable securities

   

8,980

     

8,031

 

     Accounts receivable - net

   

392,951

     

341,398

 

     Other current assets

   

60,899

     

57,334

 

          Total current assets

   

477,752

     

420,695

 

     Property and equipment - net

   

337,025

     

345,583

 

     Other long-term assets - net

   

374,385

     

371,213

 

          Total assets

 

$

1,189,162

   

$

1,137,491

 
                 

Liabilities and shareholders' equity

               

     Current liabilities, excluding current maturities of debt

 

$

295,363

   

$

251,550

 

     Debt - net

   

401,699

     

427,348

 

     Other long-term liabilities

   

158,386

     

156,383

 

          Total liabilities

   

855,448

     

835,281

 

          Total shareholders' equity

   

333,714

     

302,210

 

          Total liabilities and shareholders' equity

 

$

1,189,162

   

$

1,137,491

 

 

UNIVERSAL LOGISTICS HOLDINGS, INC.

Unaudited Summary of Operating Data

 
   

Thirteen Weeks Ended

 
   

April 2,

   

April 3,

 
   

2022

   

2021

 

Contract Logistics Segment:

               

     Number of dedicated transportation loads (a)

   

158,219

     

156,375

 

     Average number of value-added direct employees

   

5,096

     

3,888

 

     Average number of value-added full-time equivalents

   

1,584

     

1,686

 

     Number of active value-added programs

   

63

     

60

 
                 

Intermodal Segment:

               

     Number of loads

   

154,207

     

179,905

 

     Average operating revenue per load, excluding fuel surcharges

 

$

697

   

$

461

 

     Average number of tractors

   

2,124

     

1,971

 

     Number of depots

   

12

     

12

 
                 

Trucking Segment:

               

     Number of loads

   

50,860

     

72,744

 

     Average operating revenue per load, excluding fuel surcharges

 

$

1,762

   

$

1,246

 

     Average length of haul

   

403

     

373

 

     Average number of tractors

   

1,000

     

1,317

 
                 

Company-Managed Brokerage Segment:

               

     Number of loads (b)

   

24,610

     

32,885

 

     Average operating revenue per load (b)

 

$

2,176

   

$

1,737

 

     Average length of haul (b)

   

574

     

564

 
   

(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

 
   

April 2,

   

April 3,

 
   

2022

   

2021

 

Operating Revenues by Segment:

               

     Contract logistics

 

$

201,593

   

$

154,894

 

     Intermodal

   

157,613

     

103,716

 

     Trucking

   

97,485

     

94,899

 

     Company-managed brokerage

   

65,206

     

61,106

 

     Other

   

1,964

     

616

 

          Total

 

$

523,861

   

$

415,231

 
                 

Income from Operations by Segment:

               

     Contract logistics

 

$

23,475

   

$

16,820

 

     Intermodal

   

23,010

     

8,494

 

     Trucking

   

7,419

     

5,191

 

     Company-managed brokerage

   

3,863

     

440

 

     Other

   

81

     

211

 

          Total

 

$

57,848

   

$

31,156

 

 

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 2,

   

April 3,

 
   

2022

   

2021

 
   

( in thousands)

 

EBITDA

               

     Net income

 

$

42,008

   

$

21,655

 

     Income tax expense

   

14,360

     

7,344

 

     Interest expense, net

   

2,433

     

3,163

 

     Depreciation

   

12,648

     

15,605

 

     Amortization

   

3,580

     

3,480

 

          EBITDA

 

$

75,029

   

$

51,247

 
                 

     EBITDA margin (a)

   

14.3

%

   

12.3

%

   

(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.

Steven Fitzpatrick, Investor Relations, SFitzpatrick@UniversalLogistics.com

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